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Board Beginners & Help
Re: DCA, the most convenient way to increase your bitcoin as an investor.
by
JayJuanGee
on 11/09/2024, 19:26:48 UTC
There is also what is called hyper DCA, this method is a kind of pattern that one can buy bitcoin anytime and not with a certain amount of money, just like the way MicroStrategy buys his bitcoin. For you to know that he is DCAing is when you add all the bitcoin that he has bought together, and how many years he has used to buy them. This will give you the average price by month or annually.
Buying Bitcoin at any amount at different intervals without it being the same amount is also good but it is better to use the regular DCAing of same amount at different periods of time because it will enable the investor to be more active and effective in the DCA but for an investor doing irregular DCAing, they might not take it seriously since they feel they can buy at any time they want to but for someone DCA same amount, they are more disciplined and are more likely to get huge accumulations since they are always consistent in their DCA amount.
There are reasons some people do not maintain the same amount which is the DCA method you are describing. It could be a case of cashflow variation in which the investor does not have regular cashflow, sometimes bigger amount and sometimes smaller amount. This way the investor can buy in accordance to how the money comes instead of maintaining the same amount of money. I don't have a problem with this time of approach even though I'm still using the DCA method.

DCA does not require that a person invests the same amount on a weekly basis or whatever is his time period of investments.  It does not even require that he does his DCA investment every week or whatever time period, even though he might have had planned every week.

Sure there is a certain amount of value that comes from investing regular amounts and within regular timeframes, those are not prerequisites to DCA, and surely one of the powers of DCA is to be able to tailor it to the cashflows and/or expenses of the person employing such DCA practices... so the DCA can be aggressive in terms of using almost all of the discretionary income or it might be more on the whimpy side and only using a very small portion of the discretionary income or perhaps some place in the middle that is individually tailored.