- 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?
If I have the money you mentioned, let's say $100k. That money is enough to buy approximately 3.5 bitcoins if converted at the current price. I have plans to buy at 3, 4 or 5 purchases, and it is situational. I will buy now with the amount of 1 bitcoin, I have a plan like this because I still see bitcoin still has the potential to go back down. And if the price goes back down I will buy another 1 or even more bitcoins.
Your response seem more like buying the dips than applying DCA. Buying 1 BTC now and expecting or waiting for further dips to buy more is not actually DCA but buying the dips.
If you are following DCA strictly in that case you can just decide to use the three months remaining to exhaust that money. One-third of the fund per month is not a bad plan. If price dips further the following month that means more Bitcoin will be added to your portfolio and if price rises, that means less Bitcoin will be purchased for the funds set aside. Since the DCA method do not pay much attention to the price, you will be fulfilled you invested the $100k into Bitcoin.
The beauty of this method is that if price rises the following month, that means the lower amount of Bitcoin you will receive the following month due to the rise in price, would have already been compensated for by the first month purchase that would have entered heavy profits following the rise in price. If in the third month it rises further, the previous months will do likewise to the higher price purchase, meaning in dollar value, you are not loosing.