Quote from: nullama on Today at 12:41:07 AM

Quote from: pawel7777 on September 07, 2024, 09:43:18 PM

Quote from: Kara3 on October 09, 2023, 08:02:59 PM

...DCA is the best way for low income earners to acquire more Bitcoin....

That's nonsense. DCA is an investment strategy that solves the need for investors to know when to enter the market. It has nothing to do with being a high or low-income earner.
Anyone with a low income could still afford to buy a small fraction of Bitcoin (that they can afford) without the need for cost averaging.
If you're going around telling people that the DCA method is the only way they could invest in Bitcoin - stop. You're not telling them the truth.
And no, DCA is not a magical fail-proof strategy that guarantees profits, nor is it the most profitable one. It's just convenient and easy to grasp, that's all.

Exactly right.

At the end of the day you want to minimize the price of the asset, Bitcoin, when you buy it. Because you don't know the future price, you can only guess. DCA and lump sum are simply different ways to invest the same amount of money.

In lump sum you are basically betting that right now (or when the lump sum is done) it is the lowest point.

With DCA you simply even out the risk of getting that date right. This means that your price will be closer to the average, that means you won't win as much but also not lose as much compared to lump sum.

After the fact you can calculate which was the best strategy, but you can't do that beforehand as you can't predict the future price of Bitcoin.

These responses to Kara3 are a bit confusing, since Kara3 is correct that DCA is amongst the better of ways for poor people to get into bitcoin investing within their budget, and surely lump sum investing and buying on dip also exist, and even though lump sum might be better than DCA, several poor people might not have lump sum funds available. It is similarly true with rich folks, they might not have lump sum funds available, but if they do have lump sum funds available then they have more options to divide such lump sum into 1) buy right away, 2) buy on the dip and/or 3) DCA, and surely it is up to them what to do, if they determine that buying right away is not a preferable approach then buy on the dip and/or DCA allows for deferring purchasing based on time and/or based on price. DCA that is executed based on income coming in and coming available is not necessarily deferring purchasing since the DCA could be executed as soon as the money comes available.

Each of the BTC accumulation methods have advantages and disadvantages, and frequently folks who are low coiners or no coiners, they may need to take quite a bit of time to build up their BTC investment portfolio, yet there usually is no reason to purposefully delay making their purchases unless they are delaying based on budgetting considerations and considerations that the BTC price might dip, so they hold back some of their funds.. yet it still may well be preferable for any newbie investor, whether rich or poor to invest regularly, such as weekly as their income comes in, which is a form of DCA.. .and it allows them to pretty much invest into BTC as the money comes available, which they might not even want to do that if they had already invested heavily earlier on, such as front-loading their BTC investment. Some one who front loads his BTC investment might not feel as much need to DCA invest into bitcoin..