Post
Topic
Board Speculation
Merits 1 from 1 user
Re: Buy the DIP, and HODL!
by
MusaPk
on 15/10/2023, 17:19:46 UTC
⭐ Merited by JayJuanGee (1)
Here is Bitcoin DCA calculator https://dcabtc.com/ that tells how much you will earn if you accumulate Bitcoin in DCA manner for specific period of time. For instance, if we invest 10$ in bitcoin on weekly basis for last one year then after one year we will get 6.52% profit. While investing 10 dollars in bitcoin on weekly basis for last 2 years will give you -11.15 loss.

Whoaza MusaPk...   You should be careful in the way that you describe that DCA calculator.

It is not showing you results that you can expect to get, but instead it is showing you results that you would have had gotten if you had DCA'ed in the way that you input into the various fields that are contained therein.

So surely past results are likely not going to be the greatest in terms of projecting what might happen in the future.. so we need to be careful in terms of describing past results in that kind of a way.

Don't get me wrong.. DCA is likely amongst the best, if not the best method to accumulate BTC for an overwhelmingly large number of normies, and BTC is likely among the best, if not the best, asset to be investing into, especially if you have a 4-10 year time horizon or longer and you tailor your BTC investment approach and level of aggressiveness in accumulating it to your personal and/or psychological circumstances.

I do agree that DCA is the best way to gather Bitcoin. There is no doubt that its adopted by many people for accumulating Bitcoin over a period of time. Gathering Bitcoin at one price is not the best way to accumulate Bitcoin.
I will go back and see my mistake in inferring DCA. Thanks for correcting me.

Based on this calculations one can figure out how effective DCA can be.

That's true.  You can see how effective that DCA has been in the past, and hypothesize how effective it can be in the future, including how effective it is likely to be in the future, but you cannot guarantee that it will be effective.  One of the greatest of underlying presumptions in regards to DCA working out is that the BTC price needs to ultimately go up to prices that are higher than your average price per BTC by the time you sell them, but it is not guaranteed to go up, even though many of us recognize bitcoin as a very strong and/or solid bet based on a variety of factors, including its ongoing building of network effects due to its strengths as the most sound of money that the world has ever witnessed, and to have been accomplished in a digital manner which brings many additional features of portability, divisibility, ongoing verifiability, etc.

Its not necessary that at the time you stop accumulating in DCA manner you are getting good profit on your total investment. In that case one may stop further accumulation and wait for price to go up. There is no way we can guarantee that what Bitcoin price will be about 6 months after. So we must keep all options open if you are investing in Bitcoin. 

May be we can add some other strategy with DCA to lessen the risk involved. DCA will be more effective if you buy during DIP and there is BULL run after you accumulate majority of your Bitcoins.

Sure.  It is possible to customize DCA in a variety of ways that may well help to cause the BTC investment to be less risky from a personal approach because it is tailored to the circumstances of the individual to account for each of the individual factors.. but merely attempting to make a strategy less risky will not always result in less risk because sometimes people make mistakes in regards to either their attempts at timing and also in terms of their position size.. so mostly when we are attempting to consider the trade-offs of less risk we also are likely attempting to account for a variety of other factors that may well also include considering how much time that we are spending to employ such strategies, is our information better as compared to just employing a more blind and regular strategy.. .might we be spending our time in other useful and enjoyable ways and maybe even increasing our cashflow so that we might merely be able to buy more bitcoin on a regular basis rather than fucking around with studying charts and maybe not even getting our calculations correctly when we could have used our 1 month worth of time to earn an extra $1k or $2k and then use most if not all of that extra money to buy bitcoin directly on a regular basis without spending so much time trying to figure out short term moves and getting them wrong 30-60% of time time.

So its better to go for DCA since its reliable or less risky compared to other available strategies. You are right that it will take considerable time to read charts or follow other things. Time is most precious thing and we must spend it in most enjoyable way.
Spend time on things that give you good return. Its useless to run after things that take too much of our time.