Quote from: nullama on Today at 08:33:48 AM

Quote from: bigvilley on August 23, 2024, 02:40:09 PM

It’s a solid strategy for anyone who wants to build up their crypto stash over time, especially if cash flow is tight.

Yeah, I think the fact is that most people simply don't have a big lump sum amount to invest in Bitcoin, so most people are happy to do DCA.

It is not that they are happy. DCA or buying on dips are their only remaining choices when they do not have lump sum investments, and buying on dips is a waiting strategy, and DCA buying is an actively doing strategy.

I am not much of a fan of waiting as a BTC investing strategy, especially for newbies who might need to take 4-10 years or longer just to establish some kind of a meaningful position, and surely once they start to build a decent investment portfolio (in BTC and/or if they have other investments) then they may well start to feel that they have more options... and yeah if they are a beginner, it is likely that they ONLY need to start investing in BTC and cash and to balance their investment and build their wealth through those two saving/investing mechanisms and as they build their investment holdings, then they are likely to have way more options after spending a number of years of building their investment and saviings.

Quote from: nullama on Today at 08:33:48 AM

At the end of the day it is impossible to predict what strategy is best when you ignore things like fees, because it depends on the future price of Bitcoin, which is impossible to predict.

Many people will try to show with past data that DCA or lump sum is better... those analysis are not interesting because you can choose different time periods to make either one of those strategies the best one.

If you have the option to lump sum, then you have more options... most people don't. so it is kind of a worthless exercise in the sense that you are dealing with a hypothetical that does not exist.

DCA is not really that different from lump sum if you figure that a person exercising DCA may well be investing as much as they can as early as they can.

Now if folks are fucking around with waiting based on buying on dips, then that means that they are waiting with some or all of their possible investment amount, and surely waiting or establishing buying on the dip strategies make sense for a person who might have already spent a decent amount of time buying BTC as compared to someone who does not have any BTC. .. since the ONLY way to prepare for up is by buying BTC, so if a person does not have any or ONLY has a little BTC, then why would it make sense to wait rather than to buy, since by definition of the terms, the conclusion for a low coiner or no coiner is that they do not have enough BTC...so in order to prepare for up they have to buy some BTC...

On the other hand, if you already bought some BTC in order to prepare for up, then there still can be a question of whether you have enough.. so if you conclude that you have enough BTC to be prepared for up, then you have more luxuries to wait for down with whatever other money that you currently have available that you could buy BTC with it or wait for down that may or may not end up happening.

Quote from: Blitzboy on Today at 02:57:05 PM

Quote from: Ryu_Ar1 on August 24, 2024, 04:31:22 PM

[edited out]

Financial stability comes first. Always. People get caught up in the excitement and fantasize of sudden riches. Smart money doesnt work that way. Before investing in speculation, we settle our essential needs. Bitcoin is no different. For individuals who appreciate its potential and are willing to wait, it can add value to a well-diversified portfolio

Brand new investors do not need to diversify beyond bitcoin and cash.

Quote from: Blitzboy on Today at 02:57:05 PM

No need to time the market or chase rapid riches. As with Dollar-Cost Averaging, it requires careful investing. It requires knowing the technology and believing in its long-term potential. Think about Bitcoin? Do your research. Keep your money in check. Remember, prepare for the trip. There will be bumps, but those who can handle them may reap great rewards.

DCA does not require deep investigations, even though it is good for the investor to conclude that bitcoin has decently good chances of going up rather than down, so therefore, the DCA investor should be able to start immediately, hopefully have an investment timeline of 4-10 years or longer, choose a position size that is within his discretionary income, and perhaps investing weekly and studying bitcoin along the way in order to become more and more comfortable with it.

Quote from: Casdinyard on Today at 03:58:49 PM

So yeah, if you think you're in a rut and you can't invest in crypto with one fell swoop, consider investing in tidbits through DCA.

Hopefully no one is investing in crypto using DCA.. fuck shitcoins. shitcoins tend to be pump and dump and bitcoin affinity scams.

DCA works for bitcoin, but not necessarily for shitcoins since it is quite difficult to have any long term idea what shitcoins are going to do, so we should not presume DCA to work for shitcoins, like we have been able to conclude that DCA has been and will likely continue to be a good strategy for bitcoin.

Quote from: benalexis12 on Today at 04:48:52 PM

dca is a really good method, no matter where or what cryptocurrency we hold, this dca (dollar cost average) is a good tool for all traders. As long as the crypto that we do with this method is right, we will definitely get a good profit in the future.

Here are other guidelines that can help explain how they can actually do these DCA methods so they don't have difficulty accumulating the crypto assets they want:
https://www.kraken.com/learn/finance/dollar-cost-averaging

First. This is not a thread about shitcoins. We are in the bitcoin section of the forum.

Second, we cannot presume DCA works for any coin besides bitcoin, since if we were to want to use DCA for some shitcoin, we would have to first assess that it was not a pump and dump, so we have to be careful about when to get in and when to get out of various shitcoins. Shitcoins also tend to be correlated with bitcoin, but still with additional risk, so there are needs to assess which shitcoins, and how to employ DCA to establish some position in some shitcoin that may or may not end up dumping at a later point in time.

Third, using DCA for trading (similar to shitcoins) can be problematic, even though surely DCA does allow you to establish a position over time that you might be unable or unwilling to establish as a one time buy. So yeah, you could use DCA to establish a position over time, even with some asset that you are planning on selling and/or trading in a shorter time frame.