Quote from: tottong on Today at 06:40:51 AM

Quote from: JayJuanGee on September 11, 2024, 01:27:26 PM

So the results for each of the tables is showing what would have had happened if you would have invested according to the data inputted, and it does not show you what is going to happen into the future.

I personally prefer the idea of newbies to invest into BTC weekly rather than monthly, but yeah it is understandable that sometimes it might be difficult for newbies or anyone else to carry out weekly BTC buying based on cashflow uncertainties. .. issues with not knowing exact income versus expenses.

The idea is indeed better to make purchases weekly so that BTC will increase much faster, but the problem is when the cash flow is unstable and they do not have weekly capital to make purchases.

Largely the reason that I suggest weekly buys is to attempt to have newbies interacting with their bitcoin portfolio on a regular basis, and so perhaps to be attempting to learn every week too, so there would be a kind of making bitcoin as a priority, yet surely some folks might ONLY be able to invest $10 per week rather than $100 per week, and so they can ONLY invest in accordance with their budget and the amount of their discretionary income, and yeah, there are going to be some folks who are not only poor but also they might have uncertainties in regards to finalizing their cashflows and expenses each month.

In my opinion, if a person already has uncertainties in his cashflow, then he is going to be in a better position to keep some extra cushion and cash on hand to deal with some of the uncertainties, and so maybe he keeps an extra few hundred dollars to deal with uncertainties, but also $40-$50 so that he can at minimum make his $10 per week BTC purchases.. And, yeah devil is in the details, and some people have so much uncertainty that they never have any extra cash, yet it seems that part of the responsibilities of investing is to create various kinds of securities and cash cushions in order to be able to be investing rather than gambling, and the cash cushions give those kinds of protections to make it less likely to have to tap into the bitcoin investment at a time that is not of their choosing.. and to even not spend too much time thinking about the price fluctuations taking place in bitcoin for 4-10 years or longer, and surely some folks may well have investment timelines that should be in the 15-20 years or longer timeline yet of course, from time to time, revaluations can be made in terms of whether any changes in the ways of investing into bitcoin need to be made or if the person might have gone from a BTC accumulation stage into a maintenance stage.

Cash cushions also relate to various kinds of back up funds that can be labeled as emergency fund, reserves and cash floats, and someone who has very uncertain finances might take more than a year to merely build up his emergency fund and his investment into bitcoin to amount to 3 months of his expenses in each of those, and surely it could be possible to both invest into bitcoin and to build up the emergency fund to at least a minimum of 3 months at the same time, yet surely whenever the emergency fund is less than 3 months, then there would be a risk that the BTC might end up serving as part of the emergency fund in the event an actual emergency happened in which cashflow disappeared and/or expenses were to go up.

If a person cannot figure out the extent to which his income exceeds his expenses or even that he has erratic cashflow, yet he can see that he has expenses that are coming up in 3-6 months, so that he is not able to commit to investing into bitcoin for 4-10 years or longer, then that means that his discretionary income is not high enough to invest in bitcoin, and if he chooses to invest into bitcoin he would be trading or gambling with his expense money rather than investing, especially since we cannot know which direction the bitcoin price will go in the period of time that he already knows that he is going to need the money... and another thing is that we don't even know that bitcoin prices will be profitable 4-10 years or longer down the road, yet we invest with a certain level of willing to commit that we could end up losing the whole of the investment, yet if we do not engage in leveraging of the investment, then the most that we could lose is 100% of what we put in, so even though we are investing with anticipation that our odds for up are greater than our odds for down, and we even consider bitcoin to be amongst the best of places to put money (if not the best), we still are not guaranteed to be in profits at the end of our investment timeline, even if we have a relatively long timeline.

Quote from: tottong on Today at 06:40:51 AM

Why this reason can be justified because buying using the DCA pattern against BTC will be much more profitable because this asset will continue to get an increase moment for each period even though it cannot be separated from the correction process.

We are not guaranteed that BTC prices will increase, and surely if BTC prices increase, then we would have had been better off to front-load and to buy all in the beginning rather than DCAing, yet one of the difficulties in front loading and/or lump sum investing is that people do not tend to have an ability to front load or to lump sum invest, and so they might not even invest at all into bitcoin or anything else if they were not to be taking a reasonable amount from their weekly discretionary income... Frequently DCA allows someone to invest continuously, persistently and ongoingly with some reasonable amount of money that ends up adding up to way more money than he would have had been able to save up on the side.. so there is a certain power in stacking away that value and putting it into bitcoin, which has decently good chances of not ONLY retaining the value but appreciating in value better than other investments (again, it is not guaranteed to appreciate, even though bitcoin's investment thesis remains strong and each of us are taking chances that bitcoin's investment thesis could end up collapsing during the period of our investment into it).

Quote from: tottong on Today at 06:40:51 AM

DCA is not appropriate if the asset purchased does not provide certainty like BTC so that the basic capital will be suppressed with a much lower selling price.
This is the reason why DCA is more suitable for BTC investment in my opinion.

I think you are correct, yet you are still framing the issue in terms of guarantee, which bitcoin is not guaranteed, and I think that a better way of framing the matter is that DCA ONLY works when the investment asset (in this case bitcoin) has strong enough fundamentals that its odds of going up are greater than its odds of going down, and so part of the reason that we can potentially invest blindly into bitcoin for 4-10 years or longer in a DCA kind of manner is that it could well be one of the assets that we have a certain level of confidence that if we fell into a coma and were not revived for 10 years, then we would still be glad that we are in bitcoin rather than having our money in some other asset, even the dollar or wherever else we might put value, there could be some need to have a certain level of confidence to be able to just sit on the investment for a decently long period of time, such as 10 years or longer and have a certain level of confidence in it retaining its value and perhaps even appreciating in value... and yeah, sure there are going to be folks who need to have investment timelines that are shorter than 10 years too.. yet every time new value is invested into bitcoin, the timeline for that new value that is being injected should be 4-10 years or longer, even if a person might have already been investing into bitcoin for 4-10 years, if he injects new value then the new value should have a 4-10 year or longer timeline in order to be considered as investing rather than trading with that portion.

At some point during a person's investment, they might decide that they have accumulated enough BTC, so they might either change their way of BTC accumulation or stop accumulation of BTC, yet merely stopping accumulating need not mean that they go into selling mode, so they could just maintain their stack until they reach of time that they might decide to start to withdraw from it based on price based withdrawals or perhaps based on time based withdrawals, and they might ONLY be selling very small portions of their BTC stash once they enter into such withdrawal period.. perhaps also assuming that they are supplementing other sources of their income that they would spend prior to spending their BTC.

Quote from: 2Pizza410000BTC on Today at 11:48:58 AM

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

You have no excuse not to acquire Bitcoin, this is one of my most used word when
discussing with my friends that have
high interest in crypto, but don't have capital too buy.

Since I introduced the DCA method to them, it was a game changer too them,
DCA is the best way for low income earners to acquire more Bitcoin.

I don't know if anyone else has different opinion about it?

DCA method is one of the best method to invest. DCA method is better for those who are not into Cryptocurrency but have heard talk about Cryptocurrency and developed love for Cryptocurrency and want to invest in Cryptocurrency but don't have enough bitcoins and have very low weekly or monthly earnings but want to invest. If they can buy and invest bitcoins with monthly or weekly income using DCA method then it will make a very good investment for them in future and get good success from here.

Moreover, due to the high volatility of the Bitcoin market, no one can tell which direction the market will go, so if a person invests using the DCA method, then there is no need to worry about the market.

DCA works for bitcoin, but not necessarily for shitcoins (which you seem to be mixed up if you are talking about cryptocurrencies, since if you are talkiing about bitcoin, then talk about bitcoin. The term crypto currency is ambiguous and perhaps even misleading in regards to what you are talking about - unless you were just trying to sound smart, but the thing is that when you use vague and misleading terms then you look dumb rather than smart, in the event that you weren't being purposefully misleading in your choice to employ such term rather than just saying bitcoin if you had been meaning to talk about bitcoin rather than referring to some vague and amorphous idea that might mean that you don't know the difference between bitcoin and shitcoins and you wrongly believe that DCA works with shitcoins when it doesn't since DCA is a investing strategy not a trading strategy, and shitcoins would fall into the trading rather than investing camp since there is no way to really rely on any of them to have any long term potential.