Quote from: cryptoWODL on August 18, 2024, 09:37:49 AM

Quote from: ThemePen on August 17, 2024, 01:55:51 PM

Yes this is a good idea. If anyone new to bitcoin or want to grow investment using Dollar Cost Average DCAmethod is good move. It help to buy bitcoin slowly without worrying about its price going up or down. Invest fixed amount regularly which makes it easy and low risk. This method is good for beginners because it help them to build their investment. Other ways of buy bitcoin like waiting for dip or investing much at once may not be good for new investors because they require lot of money and it can be risky too. Another option is Hyper DCA but it is need stead income and long term plan. Most important thing to keep in mind is that holding bitcoin is best way to increase investment and trading can lead us to losses.

Investing in DCA method is not only for new investors, but both new and old investors can start investing in this method. The Dollar Cost Averaging (DCA) method is the most readily available and recommended strategy for investing. Progressive Using this method one can buy bitcoins in small increment size using any fixed amount of money on weekly or monthly basis as per his ability.
One of the reasons investors choose this method of investing is to reduce the average cost of investment.

If DCA investors into bitcoin are choosing DCA in order to reduce their average cost per BTC, then they are retarded. On its own, DCA does not accomplish such reduction of average cost per BTC; however, it does accomplish that a person may well be able to invest in bitcoin over a long period of time and be able to reasonably balance his investment level into bitcoin in accordance with his cashflow and/or discretionary income..

Quote from: cryptoWODL on August 18, 2024, 09:37:49 AM

That is, if you do DCA, your average cost of investment will remain the same regardless of when you buy bitcoins.

You can choose to invest a strict dollar amount every week or you can vary your dollar amount, so the amount of bitcoin that you get from your dollar amount (or the amount per dollar) will vary based on how the BTC price changes from week to week. So if you were to establish an exact dollar amount for yourself every week (such as $100 per week), then the amount of bitcoin that you got each week would vary, even though you choose to keep the dollar amount to be the same every week. There is no requirement that you have to keep the dollar amount the same each week, and surely if your cashflow varies a lot you may or may not decide to vary the amount of BTC that you purchase in accordance with your cashflow.. there can be quite a bit of discretion in regards to how DCA is employed and still be considered to be a DCA approach..

i personally like the idea for beginners to try to do weekly DCA, yet of course, individual circumstances may or may not cause weekly DCA to be practical, so individuals have to try to figure out how frequently they are using DCA in the event that they try to follow some kind of a strict DCA approach, and surely DCA can be accompanied by other BTC accumulation practices and still be considered DCA, such as buying on the dip or lump sum investing.

Quote from: cryptoWODL on August 18, 2024, 09:37:49 AM

Surprisingly, the last comment on this topic was on October 10, 2023. After almost 11 months someone bumped the old topic again. Sad

Sometimes old threads do end up getting revived, and surely DCA is a popular topic throughout various threads in the forum.

Quote from: Shadiq on August 18, 2024, 05:07:01 PM

Quote from: Antotena on October 10, 2023, 05:51:37 PM

DCA is good way of buying bitcoin notwithstanding whether you are new or old, whether you have money in large amount or I'm low amount. The advantage of it is that, it will reduce losses that may arise when the market fall when you have bought your bitcoin, it saves you from buying bitcoin all and then later observe that the market hs gone down below where you bought when you can actually buy more cheaper at lower price.

As far as I know about DCA method, DCA strategy prevents you from making high profit and high loss. That means DCA strategy will not allow you to make excessive profits and will protect you from excessive losses. For example, if you buy four weeks at $60, $65, $70, and $75 principal, your purchase price under the DCA method would be $67.50. Now even if you sell at $70 you won't make a loss, whereas you had to buy at $75. That is, DCA method prevents you from high profits but protects you from losses.

You are not incorrect Shadiq, yet you seem to be wanting to apply DCA to a trading approach rather than to an investment approach, since you seem to be so focused on how profitable that you are, as if you are eager to sell your bitcoin as soon as your profits reach a certain threshold.

It seems to me that with a bitcoin investment approach, then there may well be a 4-10 year or longer investment timeline, and surely there would be a hope that the BTC investment would be in profits by the time the investment gets to a more mature level, yet the investment timeline and even the timeline for someone's accumulation of bitcoin (and establishing a bitcoin position) could well take 4 years or longer (unless they are able to frontload their investment), so for example, if someone is investing into bitcoin for more than 4 years and using weekly DCAs of $100 per week, by the time 4 years comes along, they would have had invested right around $20,800 (assuming that they consistently DCA'd the same amount for that whole time), so of course, they are going to have differing timelines on each of their weekly investments and the earlier investments would have at least 4 years, but the later investments would not have had run as long of a timeline, so there might also be some period of time in which the person might stop DCAing and just let the investment ride for a while before deciding to start to sell, and they could potentially start to employ sell tactics that are based on BTC prices or they could employ sell tactics that are based on time.. so selling a certain amount every month or quarter or even once or twice a year.

There might be a bit of a presumption that long term, the BTC holdings would be in profits, yet surely being in profits is not guaranteed, even though any investment choices are usually premised on the idea of being in profits further down the road and potentially having more options based on having had invested into bitcoin as compared to having had chosen NOT to invest into bitcoin.

So ultimately, Shadiq, even though you are focusing on level of profits, it seems that the more healthy and practical way of considering a BTC DCA approach is to figure out how much discretionary income that you want to invest into bitcoin and then to be able to figure out some kind of timeline that you might regularly buy bitcoin within your discretionary income and perhaps reassessing at various points down the road in regards to how your accumulation of BTC through DCA might have had put you in a better position.. perhaps 4-10 years or longer as compared with someone who might be planning on turning over the asset more quickly, such as your seemingly trading (or short term) way of framing how you might treat (or think about) potential profits that come from DCAing into BTC.

Quote from: hd49728 on Today at 04:27:05 AM

Quote from: Publictalk792 on Today at 02:29:41 AM

I also think checking price before buying Bitcoin goes against DCA strategy.

Checking price before buying is a mandatory step if you don't set up a bot that automatically buy bitcoin for you and does not care about price. If you do your DCA manually, you have to check price. Want it or not, you must check price or see price when you are making your order.

Quote

DCA means investing fixed amount of money regularly no matter price. It is about investing automatically and not making emotional decisions based on market ups and downs.

Nothing is wrong in your clarification but if price during a single market cycle, already assumed doubles, it's risky to make your DCA at that time. It's better to wait for correction to buy bitcoin and in the meantime, you can prepare your capital for DCA.

If your plan is DCA weekly with $100, but if you have to wait for correction like 4 weeks, you will make a purchase at $400 when you do it with a correction. It's not bad in my opinion and I am quite sure experienced investors will wait for corrections to accumulate cheap bitcoin.

Or you can do both. One part is DCA no matter of price, just buy it weekly. A second part is waiting for correction and buy more. You are combining DCA and smart DCA.

There is no such thing as DCA and smart DCA. You seem to be referring to combining DCA with buying the dip, which may or may not be a good idea, but it is another way of DCAing, since you can accumulate BTC by three buying methods, DCA, buying the dip and/or lump sum buying. There are also people who believe that trading or fucking around with shitcoins is another way of accumulating bitcoin, which sure it may well be true that those kinds of trading techniques could result in being able to buy more BTC, they don't really fall into the more strict categories of accumulating BTC through any of the three buying techniques, and if you alter your DCA in order to include buying on the dip and/or lump sum buying, you are not necessarily causing your DCA to be "smarter" instead of attempting to include one or two other styles that may or may not end up being a smart way to to about your BTC accumulation (if we presume that one of your goals might be to accumulate more bitcoin or perhaps more bitcoin at a lower price, which may or may not end up working out) - including that some people may not even have opportunities to employ lump sum investing, since some people do not have any lump sum available, and so some of those folks who don't have lump sums available, then their ONLY choice would be to DCA, so if they are trying to be "smart" about the way that they employ their DCA, then they would be attempting to make sure that they are establishing their DCA level within the level of their discretionary income and also making sure that they have various kinds of back up funds, such as emergency funds, reserve funds and float.. so the smart part of DCAing would mostly come from how you manage your own personal cashflow rather than your fucking around with trying to act like you know which way the BTC price might go, which you might and you might not... which surely is not a very smart way to go about things if you are trying to act like you know when in the whole scheme of things you may well wasting your time and largely guessing based on too many presumptions that you know more than you do.