Quote from: Justbillywitt on February 07, 2024, 04:47:33 PM

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Quote from: Barikui1 on February 07, 2024, 09:34:46 AM

I don't really think that buying a fix amount of Bitcoin when talking about DCA is proper because to my own understanding, if you really want to buy through the DCA method, then you have to buy with a fix amount of money, weekly or monthly irrespective of the current price of Bitcoin, but if you want to buy a fix amount of Bitcoin, them you might spend more or less depending on the current price of Bitcoin, but the major challenge with this strategy is that you will be forced to tamper with you emergency fund that would have been for your upkeep till month ending when you are expecting money from another source.

The truth is that is actually very difficult and challenging to constantly buy a certain amount of Bitcoin on a weekly or monthly basis through DCA method reason been that the price of Bitcoin use to be very volatile and the possibility of meeting or buying at the same price as the previous week is not certain and perhaps it could be that the price has gone up way beyond the price of your last buy so perhaps that's were the ability to adjust to Bitcoin accumulation pattern comes in, so perhaps you can still accumulate with your normal weekly budget even if the amount of Bitcoin you will have will not be up to the last accumulation but however if you have other spare funds that doesn't have any budget for, then you can adjust the accumulation pattern a bit.

I don't agree with you guys, your most emphasis on price fluctuations are made upon upward trend whereas there can also be a downward trend of price fluctuations which will become more advantage to the investor who has decided to accumulate a certain quantity within a specific period of time. There is a prvoverb that says before a blind man says he is going to stone you he already had a stone in his possession. It shouldn't be seen that anyone venturing in to Bitcoin investment is poor there is still investors that can afford to buy Bitcoin even if the price makes x3 or more the current price that is an assumption based on if their is an upward trend in price fluctuation what about when there is a downward trend?

During the downward trend you buy with the money set aside for buying the dip. It is not about being poor or being rich. It is about the strategy that will give the highest level of profit and reduce loss. Every investors want minimize profit and reduce loss. That you are rich doesn't mean you shouldn't follow investment principles. When it comes to investments, you think of ways that are more profitable.

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In my own opinion I dont see any difficulty using the dca method in terms of accumulating Bitcoin on a particular quantity either weekly or monthly, before an investor will have this decision definitely he must have got all his plan worked out by making provisions for his personal needs emergency and reserve fund and also have factored in the price fluctuations as a principle factor of Bitcoin functionality. I think this whole thing is apparently and typically based on individual financial capability.

You are missing something here, the the idea behind the DCA method was designed to meet the need of those investors who wants to owe bitcoin but don't have the money to finance their desired level of bitcoin holding at once. These are the low or medium class level of income earners who receive their money on a weekly or monthly basis. The DCA gave such investors the flexibility to own bitcoin without disrupting their daily financial needs in their lives. So if they are to buy at a fixed amount of money as they can afford let's say $50 or more weekly or monthly that will be okay with them. But if the idea was to be buying at fixed fraction of bitcoin weekly or monthly it will be difficult for them to meet up, and also it disrupt their other financial obligations in their lives.
How often do we see the dip? Mind you there is no general acceptable price level that is considered as dip. Dip is on individual satisfaction level.

You are absolutely right, The Dollar Cost Averaging (DCA) method is a great option for investors who want to gradually accumulate Bitcoin without putting a strain on their finances. It allows them to invest a fixed amount of money at regular intervals, like $50 weekly or monthly, which can be more manageable for their budget. This way, they can benefit from the potential growth of Bitcoin over time without disrupting their other financial obligations. As for the frequency of DIPs, it's hard to predict exactly when they'll occur since the bitcoin market can be quite unpredictable. But DIPs do happen, and that's when some investors see it as an opportunity to buy more Bitcoin at a lower price. It's all about finding a strategy that works best for you and aligns with your bitcoin investment and financial goals.