Post
Topic
Board Beginners & Help
Re: DCA, the most convenient way to increase your bitcoin as an investor.
by
laijsica
on 19/08/2024, 07:03:14 UTC
In any case, in order for the DCA strategy to bring you profit in the future, you must determine for yourself the price level at which you will start buying Bitcoin. If you start buying BTC at the maximum price, and each time you buy more coins when their price decreases, then your investment will not soon become profitable.
The moment you start looking up the price before you buy or invest in Bitcoin, that’s no longer the DCA strategy. At least, not the way I understand it.
It’s dollar cost averaging which deals with, you having to look up your available funds, decide that which is spare to you to take up Bitcoin investment and go ahead to invest. The price at the time of investment isn’t of any concern here.

Yeah, there are more chances to getting higher profits by buying low but, waiting for price to dump could result in two things:
You either get to spend that money before price dumps or
You end up procrastinating on when and see price pump without buying.

DCA strategy is supposed to solve all that procrastination and missed opportunities.
I also think checking price before buying Bitcoin goes against DCA strategy. 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. By not worrying about price we avoid delaying and missing chances. Buying low can lead to bigger profits but waiting for perfect moment can lead to indecision and lost opportunities. DCA helps us invest steadily and reduces  impact of market changes. It is a way to invest smartly and avoid making emotional decisions.
Yes you should take it positively for an investor to check the value of Bitcoin deposit with DCA which may encourage him to deposit more as he can take aggressive buying opportunities during the low price of Bitcoin which can increase his stack and make his portfolio decent in short term.When you continue to accumulate Bitcoins at regular intervals, it is recommended to stay with the DCA method for the long term regardless of the trend. It is also important to increase the elasticity of your cash because that floating cash can act as a separate safety net for your investments.