Hi all,
Do you think with the ETF's in play, and the buying and selling thats going on OTC we should all consider more precisely when we do our DCA buy. Should we setting our DCA after US market close on a week day or even off a weekday and onto a weekend day?
Regards,
Greyhats
Actually DCA has nothing to do with those stuff you listed above because irrespective of how we feel is very good to buy when the price is dip shouldn't give us the mindset that DCA strategy is by only buying dip, so perhaps one of the reasons why DCA strategy is one of the best strategy is because it doesn't being influenced by any news or price increase of Bitcoin but however the only difference could only be that the amount of Bitcoin accumulated when the price was a bit lower and the amount accumulated when the price was a bit higher, let's take for example if you bought Bitcoin when the price was $40k with $100 Weekly DCA method you will realize that the amount of Bitcoin accumulated using your $100 weekly DCA will totally be different from the amount of Bitcoin you will accumulate using your $100 weekly when the price of Bitcoin will be $46k, so that's just the only difference but however the price of Bitcoin shouldn't influence our DCA strategy because DCA involves slowly accumulation and doesn't depend on Bitcoin price.
You are right, especially if you believe that after a decline the price of Bitcoin will eventually rise again, then the DCA strategy is a good strategy to use in terms of profits. Additionally, if you increase your purchases when the price of Bitcoin falls further, that would be great. Because you think the drop is a good discount and you can normalize the return if you think $100 is appropriate for your next purchase, assuming it's the regular price.
And DCA is a great strategy because you simply create a regular schedule within your means where you invest a certain amount of money into Bitcoin every month or every week. This way, even if the price of Bitcoin rises, you will still invest the same amount of money, and your investment will become increasingly profitable as the price rises.