Quote from: Dorkylickjj on Today at 10:02:58 AM

Quote from: Troytech on Today at 09:53:41 AM

Quote from: Berry2d on Today at 03:00:25 AM

Quote from: Troytech on April 08, 2024, 11:43:50 PM

You seem to have a misunderstanding of the DCA strategy in total.

The DCA strategy is not for poor people or for those with little income, it has nothing to do with how much you are earning the DCA strategy is simply dividing your capital into parts and investing or buying at intervals and this is done for some reason which is to.reduce the impact of volatility on yoir portfolio, you know that bitcoin is still a very volatile asset and to avoid situations where by you buy at a price and then the price dips and you portfolio would be at lose, but with the DCA method you get to buy at every intervals and price points so those fluctuations in price would not affect you, and why it is recommended here is beach it sis more beginners friendly and you don't need much knowledge other than to know how to buy and hold to get started with the DCA unlike the buying the dip strategy that involves some level of timing the market and more knowledge to be very successful at it. So yeah there is no barrier in using the DCA strategy.

I see that DCA is for anybody that has a steady source of income that can be able to accumulate as little as $5 to $10 per week because if you want to be rich I don think you would be able to accumulate. When you are talking about little income, you should be able to clarify the type of income. Each an everyone has its own source of income generation and the capacity it can carry . Provided that the amount he receives can be able to help him accumulate btc and emergency fund just like everyone has been saying in this thread, I believe he has to go. Everyone has the amount dey revieve it ranges from $50 $100 $200 $250 $300 and so on. In a situation where you receive any of this amount, you can schedule or program your self on how to arrange the DCA, emergency and reserved fund . So if you think you need to be rich before you invest in bitcoin then am afraid you are delaying your HODLing journey.

It doesn't necessarily need to be a steady income, I could be a money that comes once in 3 months, 6 months or such intervals and you decide to divide that amount into parts and invest them on intervals instead of buying with all the amount at once, so yeah the idea of having a steady income leads to the fact that for DCA and accumulating bitcoin to give you the best results you have to be kind of steady and consistent in doing so, so some folks that haven't got a steady income can at times pause or stop due to their money getting exhausted and at times even us up their reserves if they have quite the appetite for buying bitcoin, and your emergency funds also has nothing in to do with steady income, its just like that savings we never touch and we build just to insure that we never sell our holdings based on misfortunes or emergencies and this should be up to 3 months of your expenses to be potent enough.

Your right, DCA must not be for those with steady income, although it would have been netter if you used some illustration like Jay does, let me try if I cam get this right.

Let's assume a guy might have received a government fund that comes 4 times a year on equal or irregular intervals and this amount is 3k, so he decides to invest 1k into bitcoin and yeah he should just go and buy Bitcoin right away with all the funds but instead of that he decides to divide that money into 12 parts which should be 83$ each approximately so that it would meet up till the next time that money comes, and one good advantage of this, is it that you don't have to worry about volatility or price changes, so for many reasons we mostly recommend it for beginners and I guess you should try it too. Hope your right now@ berry2d

Of course, if you are going to attempt to describe some kind of an unsteady or irregular income, you would attempt to describe what it is, and there might be some certain aspects and there may well be some uncertain aspects, so it usually is not going to be exactly known, especially if it is an income that happens so infrequently.

But yeah, if he knows for sure it is going to be right around $3k every 3 months, then that does allow him to figure out how much he has left after expenses, yet even expenses, may well have some aspects that are certain and other aspects that vary. Some aspects of the expenses are discretionary and some aspects are somewhat fixed. Housing costs, utilities and transportation might be somewhat fixed (within a small range of variability) Food expenses might have some upper and lower boundaries, and surely there might be choices to spend a bit more on good quality food, and to cut back on eating in restaurants.. yet there still could be some variability that helps to dictate how much funds need to be held in reserves or as a float.. and surely the emergency fund would ONLY end up being their in an actual emergency rather than being used as a float or as reserves.

When the income is so irregular, there may also be some preference to hold back on any investing that it made, so maybe the person knows his expenses are somewhere between $500 and $700 per month, so that is going to leave him with between $300 and $500 of discretionary income per month, but he is afraid to spend his discretionary income until towards the end of the investment period or maybe even after he gets his next payment.. so he kind of holds all or most of his discretionary income in reserves until his next paycheck comes in.. .. Another thing that he could do is to spend $30 per week no matter what on bitcoin, so then that would largely mean that he is already making a choice, and he would have to subtract $120-ish each month from the remaining part of his discretionary income, and he would decide what to do with any of the extra when either it comes close to his receiving his next check or maybe not until the next check is actually in his hands.. since we cannot really know that we are going to have the money until we actually have it. .so we might have to keep some extra spare money, especially if our payments are so infrequent. .and even worse if they are irregular too... .since sometimes the date of payment and the amount might be uncertain.. but maybe worse case scenarios it is ONLY $1,200 every 3 months and best case scenarios it is $4,800, but most of the time, it is right around $3k every 3 months, and plans should be made around any of those kinds of particular irregularities, including that sometimes guys are able to add extra sources of income in order to help to lessen some of the pressures of the extent of the irregularities that they are experiencing.

Quote from: Marvelockg on Today at 11:03:55 AM

Quote from: Dorkylickjj on Today at 10:02:58 AM

[edited out]

front loading would be a preferable option to choose from in a situation like this.

I just recommended the opposite of front-loading.. since the pay is irregular.. Front-loading is good when you have extra cash that you know you don't need and you either have a sense that you don't have enough BTC or that the price might go up without a correction (does not mean that you are going to be correct, but you want to prepare for up and you feel that you don't have enough BTC).

Quote from: Marvelockg on Today at 11:03:55 AM

If you get four time payment per year and you're not certain of the particular time of the year each of the payment will come, it's best not to stress yourself trying to keep a particular part of the money for regular DCA till the next pay comes. You can decide on the percentage of your pay that will go into buying Bitcoin once you receive the money and you just ensure you're strict with it to the latter. It's actually same as doing DCA only that this time you're not buying a small amount but investing huge so you just relax till your next pay comes in and you invest again.

That is some variation of what I said.. and that is not front loading... although I did recommend a way that a small amount could still be put into BTC but that there would be some holding back based on the irregularity of the income.

Quote from: Marvelockg on Today at 11:03:55 AM

One of the advantage you get from following such is that you wouldn't put yourself in a situation where there is delayed payment and you're not able to meet up with your DCA plan and doesn't require you to be too concerned about being discipled with at every week or months. You just buy only four times every year and those four times counts big.

You would not have to ONLY pay 4 times every year, but I don't really disagree with you about the possibility that it might be more practical to wait until your next check comes in before you spend all of your earlier check. so then you are ONLY investing into BTC what you have left at the end of the period rather than at the beginning when you might end up needing that money.

Quote from: Marvelockg on Today at 11:03:55 AM

You might not be too lucky to buy at the best DIP price at all the four occasions but you will definitely accumulate a good quantity of Bitcoin using such methord.

You cannot assume that people in this situation are going to be able to accumulate more. The main thing to assume is that the person is trying to not put themselves into an emergency situation, and they are ONLY investing into bitcoin from discretionary income rather than investing with money that they end up needing for their monthly expenses.

Quote from: Marvelockg on Today at 11:03:55 AM

The usual DCA methord mosty works well in cases when you are receiving a weekly or monthly salary and then you can decide to buy on a weekly or monthly bases.

You can still DCA with those kinds of irregular income situations, you just have to figure out ways to budget for it.. .. so which way you end up going is up to you. I personally like the idea of weekly DCA, especially for someone in his/her first bitcoin cycle. and surely there could be circumstances in which weekly DCA does not make as much sense, even though I do still like the idea of trying to work out budgets so that you are able to weekly DCA, especially if you are fairly new in your DCA accumulation journey.

Quote from: Marvelockg on Today at 11:03:55 AM

Their are people that have probably front loarded a good amount of Bitcoin that they don't necessarily have to buy every week or month and it's not as if they are doinh the wrong thing but what's the case is that you've got to use the methord that helps you most and that doesn't put you in a situation where where you're faced with a mix of emotion that's going to deter you from buying more than you would normally do with the right plan in place.

These are the correct ideas.. You are just using the term front-loading in a weird way, but it is possible that at the end of every 3 month period, the guy sees how much income that he has left at the time that he gets his next pay check, so if he uses up whatever is left at that time, then maybe that could be kind of considered as front-loading, even though it is not exactly the right way to use the term.. since it has more to do with already having extra money and then buying extra BTC because of a perception of not having enough BTC and a perception that the BTC price might not dip so there is a desire to use that extra money to prepare for up.

Quote from: Tmoonz on Today at 12:01:04 PM

@samlucky o (HODL) hodl for dear life is not a method or strategy of Buying or accumulating Bitcoin unlike the dca and buying the dip rather is an acronym
That is meant to encourage investors not to sell their investment but to hodl when there is a price downward trends or upward trends until the certain investment goals and objectives are achieved

"Hold for dear life" is a stupid expression, and it was made up by some mainstream pundits who are trying to suggest that it is risky to hold bitcoin.

Even though they are correct that it is important to hold bitcoin, I think that going along with that meaning "hold for dear life" is short-sighted and tries to spread negative messages about bitcoin.. even though the term is used with shitcoins too.. even though no one should be HODLing shitcoins, even though surely some shitcoins are going to perform better than holding dollars, but I still would not recommend them beyond 10% of the value of your BTC holdings.. and even 10% might be too much..

Quote from: Obim34 on Today at 06:43:28 PM

Quote from: Briankimp1 on Today at 03:50:31 PM

Quote from: Mayor of ogba on Today at 03:18:24 PM

Quote from: Berry2d on Today at 03:00:25 AM

Quote from: Troytech on April 08, 2024, 11:43:50 PM

You seem to have a misunderstanding of the DCA strategy in total.

The DCA strategy is not for poor people or for those with little income, it has nothing to do with how much you are earning the DCA strategy is simply dividing your capital into parts and investing or buying at intervals and this is done for some reason which is to.reduce the impact of volatility on yoir portfolio, you know that bitcoin is still a very volatile asset and to avoid situations where by you buy at a price and then the price dips and you portfolio would be at lose, but with the DCA method you get to buy at every intervals and price points so those fluctuations in price would not affect you, and why it is recommended here is beach it sis more beginners friendly and you don't need much knowledge other than to know how to buy and hold to get started with the DCA unlike the buying the dip strategy that involves some level of timing the market and more knowledge to be very successful at it. So yeah there is no barrier in using the DCA strategy.

So if you think you need to be rich before you invest in bitcoin then am afraid you are delaying your HODLing journey.

Yes, people don't need to be rich before they can start investing in bitcoin, but they need a good income source that can cover their expenses so they can accumulate bitcoin without finding it hard to solve their unforeseen financial problems. This will allow them to hold their bitcoin for the expected year they want to sell it.

While going through you all comments on this thread, I had a thought may be one of a genius not to hype myself about it but what do you all think about Incorporating both the Dip and hold with the DCA strategies.

To further elaborate further, what if you only apply the DCA strategy when it’s a bear market that way you’re constantly buying BITCOIN at a low rate you can simply set a stop price in your head of when to stop buying more BITCOIN and simply hold till it’s next bear market, This would aid you in accumulating a lot more through this what do you guys think is it all craziness Huh

Yes, both strategies can be combined to get the most perfect investment, but not with your level of understanding and explanation, it literally becomes not a good practice from what you just responded. The DCA pattern is a strategy on its own not dependent on any other strategy but only be positively compromised by purchasing massively during Dips.

The best way to go about combining both is by focusing mainly on DCAing as a strategy, since the DIPs are bound to happen during the cycle we can now apply catching the very DIP by investing massively in same DCA kind of approach and same intervals. It's not really necessary nor advisable to hold funds in regards to waiting the bear market, during the holding process unforseen circumstances may happen which means altering the investment plan.

Exactly..

As a newbie.. stick with DCA one or two or maybe even more cycles. After you get up to a certain quantity of BTC, you might be in a position to attempt to tailor your DCA to timing dips, but even then it can be problematic to screw around too much with timing.. until you are sure that you are getting to a point of accumulating enough or more than enough BTC.. .which you have to determine when you get to such point of having had overaccumulated BTC.