Post
Topic
Board Beginners & Help
Re: DCA, the most convenient way to increase your bitcoin as an investor.
by
Sim_card
on 14/09/2024, 18:20:27 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 type of approach even though I'm still using the DCA method.
I think DCA should be done more or less with the upward trend of cash flow as it allows to build up more bitcoin holdings in a short period of time.
As long as you have a stable income and discretionary income you can use part of yoir discretionary income to DCA regularly in order to build and vrow yoir bitcoin investment. However, everyone wants an kncreament in his income and it will be good if along the line as your DCA is ongoing, you income increases because it will give you the opportunity to increase the amount of money that you are usong go DCA in order for you to reach your bitcoin target fast.