Quote from: DaNNy001 on Today at 05:03:04 AM

Quote from: Makus on Today at 04:48:41 AM

Quote from: JayJuanGee on Today at 03:52:29 AM

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.

Ohh, now I see your point, the strategy you employed is actually DCA, the only difference is the fact that you wait for the dip before accumulating more, its not a bad one but its time consuming as it requires constant watching of the market, so assuming your targeted price is not meet for the week, do you add the amount to that of next week or you'll abandon that weeks accumulation?.
Reason I asked that question I believe there are times where the market just goes sideways without adding or removing any large significant amount to the market for up to a week, and in such cases I don't think your strategy would be able to accumulate for that week. I am a very busy person, not sure if I would be able to adopt the system, but I'll love to make a trial for a month and see how it goes, but my modified strategy would be, if my buy target wasn't meet for the week, at the end of that week I'll just buy irrespective of the price, so I will not be tempted to skip accumulation for that week.

I haven't actually tried such method before that requires me to actually watch or set a buy order for the week because I know how volatile the market can be and I think if the investor is not a principled one, you might end up using the actual funds for other stuff that's if the target isn't reach for that week, no offense but I think the DCA method of just having a specific target to reach regardless of how the market moves is more preferable especially if you are someone who is always occupied with other schedule just like you explained but also their is the fact about sacrifices, that's taking out time to watch the market or should say I say study it but I think this can be done through many simple ways too am currently using a price alert notification app on the Bitcoin price and this would be very helpful in terms of following up with this strategy.

I just outlined a way that you can DCA in a way that attempts to capture the dip for the week. I don't see how that would be inferior in any way for someone who wants to attempt to do it. If you dont' have the time, then it is another story.. just set your DCA and forget it.

I personally am not much of a fan for automatic DCA because or the way that exchanges don't tend to allow specific customization of the times that you buy, but likely are batching the DCA buy times..... .. yet I can understand that people might not want to have to manually make their BTC buys, whether it is weekly or maybe on some other timeframe, and those are personal choices regarding how to spend time, which are going to likely vary quite a bit and may or may not end up resulting in better performance than some strict DCA approach that might end up getting gamed by exchanges if your buy time is being batched rather than being capable of individual tailoring regarding specifically when it takes place.

Quote from: SeriouslyGiveaway on Today at 07:46:07 AM

Quote from: JayJuanGee on Today at 03:52:29 AM

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.

If you have a lump sum, you can still divide it into parts, and you could decide whether you are going to buy some of those on dips and/or to DCA and/or to just buy right away.

So the portion that you have set for DCA, then you might take 1/3 and just set it up over 6 months or a year or even over 1 or 2 months.

So if you have $33k, then maybe you set them up for $1k per week for 33 weeks or you could pick a different amount per time period .. you could do daily or you could do bi-weekly, monthly or quarterly... there are quite a few options that would just set up your buy amounts based on how quickly you want to inject your purchases whether you want your amount to get put in fairly rapidly or you want to spread it aout for a while.

Many times people are using DCA because either they do not have lump sums available or because maybe they want to pace their investment, such as a person might hold $40k in equities, $30k in property, $30k in bonds $10k in cash and cash equivalents and $30k in gold. Maybe if the person wants to slim down his/her gold holdings, from $30k to $15k, s/he will decide to slim down by $1k per month over the next 15 months or surely some other time period and amount could be used, but it is a way to pick a timeline to ease out of an investment and also sometimes people might just decide to stop investing in one asset or another and just divert those funds to other assets, and that would be another way to accomplish similar kinds of reallocations, without using lump sums but instead DCAing... even though in that last example lump sums would optionally be available to the person but easing from one investment to another frequently feels better, and may well have fewer potentially negative tax ramifications, too.

Quote from: Dr.Bitcoin_Strange on Today at 09:23:08 AM

Quote from: SeriouslyGiveaway on Today at 07:46:07 AM

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.

If I remember correctly, the price of Bitcoin was $20,250 as of January this year, and to have such a substantial amount of money, I would have just invested in all of it. The reason is that Bitcoin will not go back below $20k this year or even next year. In my opinion, Bitcoin has given people the opportunity to buy when the price was $20k at the beginning of the year and even was below $19k last year, which means no investor will see the $20k price again till probably the next bear market.

Having been in the Bitcoin space for some years now, I think there are some low prices I will see Bitcoin drop to, and I might not consider using the DCA at the moment. The reason is because if I buy at the low prices, let's say $15k–$20k, I know that definitely the price will spike again and go above that, which will guarantee me a huge profit. All I have to do is hold my asset tight, sit back, and wait for the bull market.

Of course, you are correct Dr.Bitcoin_Strange that there can be quite a few advantages towards lump sum investing, especially when it seem that price might have either dipped or might not go down any further.

There are no guarantees that they will end up going up, but it does seem that you are a bit more prudent when you buy on dips and you also consider that sometimes there are advantages to frontloading your BTC investment, even if there might be further dips, especially if you have longer term plans.. which also gets us to one of the reasons that it might not really matter that much if you buy at $30k or $28k or if you were able to get some at $25k or $20k, but in the end, we may or may not get any more opportunities to even buy sub $30k.. so there could be advantages to putting it all, even though when I get lump sums like that, I prefer to consider all three of the buying categories that involve buying right away, DCA and buying on dips, so it is a matter of personal perspective (and discretion) to the extent that the weighings in any of the categories might deviate from a 1/3 default or if more or less might go in one or more of the categories.

Quote from: Hewlet on Today at 09:29:05 AM

Quote from: JayJuanGee on October 17, 2023, 11:15:42 PM

In other words, from time to time we will analyze our position and our assets and we might even start to determine that we can change our strategy because we have accumulated enough BTC... whether that happens in 1-2 years or maybe it takes 15 years to 20 years, this will vary from person to person regarding how long it might take for the person to start to consider that s/he has enough and s/he can transition from accumulation stage to maintenance stage. and sure maybe the transition will not be 100% clear because even if someone is in maintenance stage they still might accumulate BTC from time to time, but not be so concerned about accumulation because overall such person has determined that s/he has gotten enough bitcoin.

Am being inquisitive right now. So your saying that there might be a time when one feels he has accumulated enough bitcoin and would decide to only maintain the Bitcoin he has accumulated.

Of course, you need to consider all of your personal circumstances in order to consider what you BTC accumulation targets might be... I have given several examples in the past, and so for example if your goal was to get to entry level fuck you status within 10 years, then you might need to get 5 bitcoin or more to start to feel that you are getting close to reaching your goal (as in my chart), but if you are at 8 bitcoin now, then you might feel that you have enough.. even though your timeline is 10 years.. and so you can project out what you believe to be your goals and how close you are to achieving them.. if you get to 8 BTC now, but you are still not sure whether your projection for 10 years is correct, you might still continue to accumulate BTC, but there still might be some point that you feel that you have enough or more than enough... but in order to feel more certain, you might need to see the price move enough to confirm your beliefs... or at least bring you to a point that you are convinced that you have enough.

Quote from: Hewlet on Today at 09:29:05 AM

I am aware of people saying that accumulating Bitcoin has been an obsession to them irrespective of the amount of Bitcoin they have they still accumulate as much of it as possible since they have the money to put it in.

People have differing goals, and some times they might not know what they want, or maybe they feel that they are a long way from their goal, so they just strive to reach it.. but sometimes people reach their earlier goals and they then end up setting higher goals.. Another thing is that sometimes people become uncertain or they set their goals based on bad evaluations and then if things end up not playing out how they expect because they valuated their value in wrong ways, then they might not have had reached their goal.

Quote from: Hewlet on Today at 09:29:05 AM

Assuming someone is obsessed is it something that is wrong or it is good especially in this present time?

People sometimes fail to account for the depreciation of the dollar and/or they fail account for the volatility of bitcoin.. so there are ways to make more accurate assessments, and I personally have been using the 200 week moving average, which I think is more helpful than spot price and/or trying to put your value into dollar based assets. We do frequently need to be able to assess a variety of matters to make sure that we have adequately accounted for fluctuating values that might include changes in the cost of living or volatile assets such as bitcoin and some other factors (such as expenses) that should be somewhat knowable and even in need of some cushions so that we do not believe that we are at entry level fuck you status before we actually are or we have bad ways of managing our investments and/or wealth once we get to a status in which we might no longer be accumulation and we might move into either a maintenance stage or into some form of liquidation stage.

Quote from: Hewlet on Today at 09:29:05 AM

If only I could Pm so you teach me your ways

I prefer to talk about these kinds of topics in public threads rather than DM because it is just easier to share with many folks and then anyone can chime in on the topic if they disagree or if they have some of their own examples and/or ideas that they want to share. Feel free to ask whatever you like or to bring some of your own examples, but several of the items that you mentioned can be seen in several of my already existing posts, so frequently it can be better to read through some of those posts and then maybe to attempt to direct your question more specifically or to bring some specific example that might relate to a dilemma that you might be having, which it seems that you already did that in your post..

Quote from: Ruttoshi on Today at 04:45:01 PM

Quote from: Agbamoni on Today at 02:38:15 PM

[edited out]

This strategy is helpful when the price that you are buying at the dip, wouldn't go dipper, or you can continue buying even when it is dipper than expected and only use the $50 to DCA when the price pumps up again. I haven't thought of such moves and I don't think that I will love to practice is because most times, you will be vigilant with the market.

The steady DCA with a regular amount is what I am using to accumulate more bitcoin because I am a beginner and it has really been helpful especially when you have the passion to accumulate in a long term investment to increase your portfolio to a significant amount. Although JJG is talking from experience and the way he explained as long as your are hodli, your portfolio will definitely increase since it is a regular buying scheme.

Sure, if you keep buying BTC on a regular basis and then HODL if you run out of money, then the quantity of your BTC is going to continue to grow. At the same, time you are not guaranteed that your BTC will go up in value, unless the BTC price goes up. .and that part is not guaranteed... but the part that your number of BTC will go up is guaranteed as long as you keep buying and holding.

Accordingly, each of us does continue to have to make choices regarding how many BTC we want to holding and maybe how many we want to accumulate, whether it is actual amounts or we value in terms of dollars or we set aside a certain percentage of our monthly cashflow to buy BTC, 5%, 10% or some other amount.. maybe even up to 25%, and I don't necessarily recommend going above 25% for beginners unless you have thought through the matter and figured more than 25% to be acceptable for your own particulars.