I have been on the lookout for what possible DCA calculator I should use, because as a newbie one of the highest worries I have is how to monitor my Bitcoin investment and what DCA record tools I should adopt that can give me total accurate figures of what my profits percentage is and lose also, because I have the intention to invest at a weekly interval and hold my Bitcoin for at least 4 years which is a one bitcoin halves cycle and by then, I should be able to arrive at a balanced ground in terms of Bitcoin accumulation journey based on my total invested funds.
DCA calculators do not tell you how much you will make in the future. They ONLY show past performance, which that does not mean that you would profit in the future.
I think that it is it better to figure out your own formula in terms of investing as much as you feel comfortable, while realizing that you might not gain any money and you also might lose all of it.
For beginners going into bitcoin, you should at least consider the below 9 factors:. .and DCA with small amounts while you are learning is also o.k. in order that you can determine if you would like to become more aggressive, and at the same time it is important to get started sooner rather than later in order that you can get some kind of a start and even getting set up with how you are going to source your buys can take a bit of time to figure out and maybe to adapt along the way, too.
These 9 principle individual factors that influence your decision whether to invest into bitcoin and how to invest into bitcoin have financial, skills and psychological components that include:
1) your cashflow,
2) how much bitcoin you have already accumulated,
3) your other investments (including considering your emergency fund, your float and your reserves - which are usually kinds of liquid ways to hold value in cash, dollars and/or your native currency in away that many of your expenses tend to be denominated),
4) your view of bitcoin as compared with other investment possibilities,
5) your timeline,
6) your risk tolerance,
7) your time, skills, goals (investment/lifestyle targets, which includes figuring out the extent that you are in BTC accumulation, maintenance or liquidation stage),
8 ) your abilities to strategize, plan, research and learn along the way including tweaking strategies from time to time,
9) your considering your time, your abilities and whether to trade, reallocate from time to time, to use of leverage and/or to use financial instruments... (and for sure the use of financial instruments, leverage and margin trading involve higher level skills and are not even necessary to still become richie in bitcoin's already existing asymmetric bet.)
The 9 factors you mentioned are certainly very useful as guidelines for managing finances when investing in Bitcoin. I understand that cash flow is the main basis for us to apply the DCA strategy, which is to manage finances as best as possible to be able to accumulate bitcoins in the investment journey. And maybe we will also consider the price side to enter in the early stages of purchasing. Because lately bitcoin has risen significantly so we have to think whether the DCA move is the best strategy for now if we are too late to use it.
Apart from that, if you have collected BTC throughout your investment journey. Do you still do DCA when the price of Bitcoin has recorded its highest price? or it is better to wait for the correction and buy all at once and start over to set the dca when the price has gone down.