Quote from: Ultegra134 on September 16, 2023, 04:04:07 PM

Quote from: Ale88 on September 16, 2023, 03:52:12 PM

Quote from: Macoach on September 08, 2023, 03:50:15 PM

What is your opinion?
And and which method do you prefer to be used in this present market conditions?

For a normal investor, and by normal I refer to someone who doesn't have any particular financial skill (like myself Grin

) I think the DCA strategy is one of the best things out there: you keep investing every month, you know you won't be wasting that money buying useless stuff, and if the market goes up you're happy, if it goes down you're happy anyway because you can buy more BTC investing the same amount of money. No stress, no margins, no need to check the price every 5 minutes, I like it.

It's probably the least risky strategy for a newbie; it enables you to lower your average purchase price by acquiring coins on a steady basis. Personally, I'm not buying Bitcoin myself, but I'm receiving it on a weekly basis from my signature campaign, which can also be considered a form of DCA. I'm not too bothered by market fluctuations because my average purchase price is quite low, judging how high Bitcoin has gone in the past. Even now that the market isn't performing too well, my bitcoin's value hasn't lowered too much, and every bear market is an earning opportunity, as it's more affordable to purchase larger amounts of bitcoin.

I agree that the signature can be considered a DCA strategy as well, at the end you get something every week (possibly the same amount), the only difference is that instead of buying with your money you're buying with the time you spent on the forum, but the result is the same.

Quote from: Blitzboy on Today at 02:47:46 PM

Theres a flip side to this approach, often overlooked: opportunity cost. Sure, you're lowering your average purchase cost over time. Yet, you're also missing out on the potential for other investments that might offer quicker returns. Even within the cryptocurrency world, there are altcoins and tokens that could yield high returns. So, while you're safeguarding your investments, are you also stifling their potential?

Im not saying DCA is bad; its a proven strategy. But its prudent to reassess and consider a more diversified portfolio, especially if you've got a steady flow of Bitcoin coming in through signature campaigns. Thus, while DCA is safe, it may not always be the best strategy to optimize your returns.

There will always be some altcoin/token that is going to outperform bitcoin for a while, the problem is to find the right one because there are just too many. If you don't want to take too many risks (I mean losing money), just go with bitcoin and in 5 years who cares if instead of 300% you did 250%, you'll be very happy anyway. For the type of experience I've accumulated in these years I prefer a smaller return but (almost) guaranteed, no more bets for me.