Quote from: Ryu_Ar1 on September 13, 2023, 09:41:47 PM

Quote from: Agbamoni on September 11, 2023, 06:58:09 PM

[edited out]

Looking at what you said at the beginning of the sentence and at the end, I actually think it has a contradiction.
You say having a strategy and not rushing is a must-have but on the other hand you want to try first by investing $100 every time you have a salary and dividing it into several months.
Honestly, I don't really understand your current strategy whether you want to try to do DCA or lum slump like my discussion with @Baby Shoes before.
I don't consider it a mistake but I think you should start trying to be clearer in your investment scheme especially if the goal is DCA.

I don't really disagree with anything that you are saying Ryu_Ar1.. but it just seems that you might be suggesting that there are ways to really be active in DCA beyond merely just figuring out how much for each period and applying it..

Accordingly, I would suggest that anyone who is trying to strategize with buying on dips for part of his/her income that is allocated to buy BTC is not engaging in pure DCA, and there really is nothing wrong with supplementing a DCA strategy with some variation of buying on dip.

Remember a pure DCA would strictly be looking at how much income you have coming in and what are your expenses (including making sure that your emergency fund is covered), and then whatever that is left over would be used to buy BTC, so the weekly, monthly or twice a month amount may well differ depending upon variation of cashflow and variation of expenses.

Now if a conscious choice is made to ONLY spend part of what is left on buying BTC right away, and the other portion is used for buying on dips, then there is no longer a strict DCA practice going on, and there is nothing wrong with deviating from a strict DCA as long as you realize that part of what you are doing is DCA and the other part is attempting to strategize to buy on dips.

So I think that part of my point is that anyone who is trying to strategize in regards to his/her DCA is applying some kind of a variation of DCA.. and there is really nothing wrong with that.

Quote from: ginsan on September 13, 2023, 10:16:32 PM

I think in this thread those who bought had the same goal of holding it long term. In fact, some of them are not too interested in aggressive investment techniques in accumulating BTC because they aim for cheaper prices in all their entries by doing it with DCA.

You can still be aggressive when employing DCA.

The more that you know your budget and the better established your emergency fund, then the more aggressive you can be. One of the problems is that sometimes people confuse aggressiveness with a kind of gambling so being reckless in terms of not having an emergency fund, so maybe there are questions of whether your cushion in your funds is enough to cover your expenses for 3 months or for 6 months, and sometimes, guys might make choices to become more aggressive for a short period of time and to reduce their cash cushion from 6 months to 3 months, and therefore end up investing the extra 3 months of emergency fund into bitcoin, and sure that is risky and it is aggressive, but and even if it might be on the edge of high aggressiveness, it might not end up being overly aggressive in the sense of causing a person to get reckt, even if he has decided to spend some money on bitcoin that he usually has as his cushion and/or his emergency fund... those are very calculated kinds of risk, that a person might think through and decide to make them because he has good ideas about what he is doing and putting at risk.. and maybe even having some ideas about how long it might take to replenish that fund in the future.. 3-6 months? maybe a year? those are pieces of information in his specific calculation to which he should be able to know the answers.

Quote from: BABY SHOES on Today at 01:29:54 PM

Quote from: JayJuanGee on September 12, 2023, 05:54:11 PM

Frequently I have brought up an example of someone who might have lump sum bought BTC in 2015, and s/he bought 20 BTC for around $6,660 (so the average price per BTC is around $333), as compared with someone who might have ended up buying more regularly and more frequently and spending $100k in order to buy 100 BTC between 2015 and 2019 with an average cost of $1k per BTC

Today. Which one would you rather be? The one who has 20 BTC has much greater profits 3x more profits since his cost are only around $333 per BTC as compared to the one with 100 BTC and a cost that is 3x higher per BTC. Total portfolio value is $520k for the one with 20 BTC and $2.6 million for the one with 100 BTC.

Looking at the price history in 2015, the bitcoin price range was $300 - $400 when the price was still low, but unfortunately I was not in the bitcoin environment at that time because I had only just recently become acquainted with bitcoin and delved deeper into it.
I wonder if DCA was more popular at that time than it is now? That's not a problem because someone must have done it.

I did most of my DCA into BTC between November 2013 and early 2017.. . .and I did a bit of DCA after 2017 too.

DCA has been a popular strategy for a long time, and of course, those of us following BTC discussions are able to have a lot of sources for financial information, and surely some of those sources are better than others because sometimes a person might be talking about trading rather than DCA.. and surely people can get distracted away from DCA, even though there is a lot of good information that is available for the ones who are able to make sure that they don't get distracted into bad (or less good) BTC accumulation strategies... but at the same time, the best of strategies might not even be strictly DCA, so any one of us has to figure out which strategy works for our own circumstances.. and sometimes even if we might start out with DCA, after a few years of doing a more strict version, we might end up converting into some kind of a more personally tailored version that is more suitable to our circumstances, and we also might be able to learn more about ourselves in the earlier years in order to know how to tweak our DCA strategy or whatever variation of DCA that we might end up following... Through most of 2014, I used to call my DCA strategy to be a kind of front-loading DCA strategy, even though the strategy that I was following did have some buying on dip attempts and it also did end up contributing to my buying BTC throughout all of 2014, so that I was feeling quite a bit under water through almost all of 215, when BTC prices were much lower than my average cost per BTC.

Quote from: BABY SHOES on Today at 01:29:54 PM

Currently it is impossible for the price to return to baseline, for us buying bitcoin units is not possible due to limited finances, so the right way is DCA with a few dollars input, say $20 - $50 for now because it is still possible for me to spend that much money for bitcoin, the rest can still be covered by the necessary needs.

Well buying more regularly is much better than a lump sum.

One thing that is so great about DCA is that you can figure out for yourself, and sure, if you end up getting a $500 to $1k bonus once or twice a year, then you are going to have options regarding how you choose to spend that $500 to $1k extra when it comes in, and you may well end up choosing to buy BTC with it right away rather than spreading out your BTC purchases.. It is not always an easy choice to figure out how to employ extra cash when it comes in.. especially if you feel that you don't frequently come across extra cash. but the more you go through with buying BTC regularly, at some point you might decide that you are going to divide that lump sum into three parts in order to allocate 1/3 towards each (Lump sum, DCA and buying on dips), and then there might be some other times in which you feel that you want to strategize your purchases to buy on dips, and you might divide the lump sum into 3, but instead keep it all in one category, which is to buy on dips.. so you might buy 1/3 right away, and then the 2/3 to buy after a $1.5k drop in price if it happens and the 3/3 part, you might assign to buying that amount upon a BTC price drop of 4,680.

Those are your choices, and it seems to me that the more BTC that you get, the less stressed that you are in regards to buying BTC right away with your extra cash, and you become more wiling to set your BTC buy prices and just wait for the BTC price to come to you, and hopefully you are not too greedy in the places where you set your purchase prices, because if you already have enough BTC, the you are not worried about the BTC price going up because you already have enough BTC.

Quote from: BABY SHOES on Today at 01:29:54 PM

What is clear is that I choose a lot of bitcoin. Grin

Talking $333 per BTC we will never experience that again, right? But you just gave an example from the past, and now I think just relying on a $20K drop then I can increase DCA during that price range to get more satoshis.

Yes, it is a bit easier to draw from historical prices in order to show how two different practices might have had played out differently, and surely none of us should consider that it is realistic to even be considering that $333 BTC prices are even possible (or likely), even though there are non zero chances that they could occur, but we should not be structuring our BTC buying plans based on outlandish scenarios rather than more likely scenarios... and the same is true for sub $20k, not very likely but possible and surely more possible than $300 and even more possible than sub $10k.. and surely se might never see BTC prices below $26k ever again, so these kinds of used to be prices versus where we are at now are sets of probabilities, and even if we might try to be somewhat prepared for very extreme scenarios, our base case preparations should be attempting to prepare for more likely scenarios rather than outlandish scenarios that may well not even end up happening.

and each of us has to figure out our level of preparations and how much cash do we keep available for those "just in case" scenarios rather than just investing regularly and perhaps just having a small portion of our overall cashflow that is set aside and staggered down for some of the outrageous scenarios that may well likely never happen, and for me, these days, after having had been in bitcoin for nearly 10 years, I am way more prepared for outrageous scenarios than I was when I first started in BTC, even though I had already come to bitcoin with more than 20 years of investing experience (and building up of an investment portfolio) so I had already had money that I had prepared for outrageous scenarios, but in the 1990s I did not have as many cash reserves as I had in the 2010s... so some of the building up of cash reserves comes (or should come) with the passage of time and experience to build the reserves that each of us has in each of the categories as we establish our various kinds of holdings (and investments) into differing things.