Quote from: Jegileman on August 20, 2024, 09:25:11 PM

Quote from: JayJuanGee on August 20, 2024, 08:44:46 PM

I am not really too keep on any kind of an idea of using DCA for withdrawal, and sure, some might consider sustainable withdrawal as an exit DCA, but that seems a bit misleading to me, and in some sense there is not really any need to ever completely exit BTC, so the idea of sustainable withdrawal relates to abilities to perpetually withdraw (or live off your BTC or draw an income from your BTC) once you have reached a status of accumulating enough BTC, yet better yet if you have reached a state of overaccumulation, then you can likely pace your withdrawal so that you never run out of BTC...so yeah maybe in the beginning there would be more cushion or more conservative withdrawal and then if you see that the bitcoin is largely holding its value or increasing its value, then you could increase the withdrawal amounts. I do have some things that I need to fix and/or tweak in some of the withdrawal formulas in that thread and in the withdrawal tool too.

So the best thing to do is to stick to your bitcoins already accumulated even after reaching your target.

Personally, I consider DCA to be a strategy and/or technique for accumulating bitcoin or any other longer term assets, even though some folks will also use DCA to acquire shorter term positions and even to trade.

In some sense, if a person were using DCA to get out of a position, so selling slowly over time, then they may well structure their DCA exit approach to completely exit or to partially exit their position.

I think that exiting needs a different mental framework, which is more in line with ideas of passive income or perpetual withdrawal, unless of course, you have some life emergency of pending death that motivates you to completely want to or need to get out of your bitcoin investment.

So, I personally consider bitcoin as a long term and lifetime investment rather than something to trade or to get in and out of, even though surely there are ways to structure bitcoin buy and sell ladders that mostly emphasize maintaining the stash and so sell orders are not structured in any kind of way to sell large amounts of BTC.

Of course, the longer that you are in BTC and the potentially higher the level of your profits, you might not be too concerned if you shave off 1-2% of your stash or even 10% of your stash, since if you might have not been cashing out for many years, you might be so far in profits that it would not make any kind of material difference to you in terms of whichof those choices to make and maybe even 10% of your stash might equal 5-10 years of your expenses...so at some point you might have so much profit cushion that any cashing out that you do still feels like a lot of money as compared to your yearly expenses. Of course, you could change your lifestyle too, in order to spend more, and surely those are discretionary choices.

So yeah, I think that DCA can get you to places of having sufficient BTC accumulation or even over accumulation of BTC, but to me, using DCA as a means to cash out comes off more as a trading approach to your BTC holdings rather than an investment approach to your BTC holdings.

Quote from: Jegileman on August 20, 2024, 09:25:11 PM

You shouldn’t use the withdrawal strategy just because you’ve accumulated and reached your target but also look at the market factor like checking the current value of bitcoin if it’s holding or increasing in value before you apply the strategy if you ever wish to withdraw some of your holdings at some point. The goal should be never to run out of BTC in your portfolio and take advantage of the market when it dips even after taking some profits and keep accumulating for another cycle where it may have reached another point of all time high before you’ll want to sell off some part if the need arise or if not, continue holding.

Well? You seem to have only been registered on the forum for about a year and a half, so I would have difficulties considering that you would be anywhere near to the kind of targets that I had been considered to be within the sustainable withdrawal framework.

Essentially when I came to bitcoin in late 2013, i had already been investing in other assets for nearly 3 years, so I had already figured that I was going to somewhat aggressively work on getting my bitcoin allocation to around 10%, but it took me a year or so to get my BTC holdings to 10%, and since the BTC price was low for 2015, from my point of view, through 2015, I ended up over accumulating to around 13.5%. , and then after that I established more of a laddering practice which would be price based withdrawal rather than time based withdrawal, and so I spent the next few years considering that i was in a maintenance mode.. which meant that I only sold limited amounts on the way up as a kind insurance to be able to buy back if the BTC price dipped.. so I did not really consider time based withdrawal (or come up with the formulas - that I still need to fix - until within the last couple of years). ..

so anyhow, even with my buys and my sells over the years, I consider that I have largely been maintaining my BTC holdings since I had considered in late 2014 I had sufficiently accumulated BTC and in 2015 I had over accumulated and even BTC's price moves from $450 to $19,666 and then returning down into the $3k-$6ks in 2018/2019 had really caused my allocation in bitcoin to go up to close to 80% and then drop back down to nearly 40% and then go back up again, and even now my bitcoin holding may well be over 80%, so I am considering that I am way over allocated, even though these days I consider 5% to25% allocations to be good for newbies to shoot for, if they already have investments and they are looking to allocate into bitcoin, too. So there can be an initial allocation that ends up growing and fluctuating, but I don't really subscribe to any of the theories of reallocating and rebalancing, but instead my own approach goes along with the idea of letting your winners ride rather than attempting to reallocate them.. so who would want to sell your winners into your losers?

I just think that it tends to take a while before getting to some kind of stage in which sustainable withdrawal might start to seem feasible, and yeah, sure everyone has their own particular circumstances, but I consider that particular time-based sustainable withdrawal as a kind of tool that would be used in a retirement situation or maybe as a way to fund a separate business with a certain quantity of coins that they could obtain a budget, but there is a mistake in the tools since the withdrawal budget should be calculated based on the dollars budget rather than being calculated in BTC amounts since calculating in BTC amounts will likely contribute towards withdrawing too heavily.. ..