The strategy that I am describing is pretty damned close to DCA, especially since I was doing it on a weekly basis. Let's say, for example, I had a budget to buy bitcoin of $100 per week, and it was for 26 weeks (which would be $2,600 for 6 months). And if the beginning of the week is Monday and the end of the week is Sunday, maybe I might identify a couple of the dips through the week or maybe I would be waiting for dips that did not end up happening, so by the end of the week (Sunday) I would use either the whole $100 or whatever parts were left to buy at that time.. of course, the beginning of the week could be chosen as any day. and each week there was a new $100 authorized, and let's say that I felt that I did not have time to watch the market, so maybe I would just buy or maybe the price opens at $28,500, and I would set my buy order at $27,820, and if the order did not fill by Saturday, then I would just market buy or maybe set the buy order within $50 of the current price so that I have more confidence that it is going to fill before the end of the week.
- The method you're talking about is using small weekly savings to buy Bitcoin. But I'm wondering, what if you have a substantial amount you intend to invest in Crypto, let's say $100,000? How would you use DCA in that case?
- For me, my approach is to divide my capital into three parts. Every time Bitcoin corrects more than 20%, I put in one part of the capital. From the beginning of the year until now, I've only executed one of these parts. The other two parts are still waiting for the next correction cycles.