Post
Topic
Board Beginners & Help
Re: Does the DCA strategy inspire newbies to invest?
by
laijsica
on 15/12/2024, 09:10:05 UTC
Agree with your opinion. This is also my understanding, please correct me if you think I'm wrong. When he said loss with DCA when the market goes up, you don't really lose, you just gain less than investing all at once. Likewise when the market goes down, you lose less than investing all at once. So, overall, DCA serves as a safety net to minimize losses, while limiting profits. The DCA method is more like value investing...

In this case, the price at which you start DCA is very important. And if you decide to start accumulating Bitcoins at the current price using the DCA method, then you will not need to be surprised that the price may decrease and your investment will have a negative balance.
DCA method can be started at anytime when a person is ready, it's your money and you have the freedom to start at anytime, it is the beauty of decentralization, the decision solely depends on you. But I can agree that there is a best time to start the DCA journey and that is during bear run when price has dumped so that your money can get you more value of Bitcoin, as price starts to increase so will the value of your Bitcoin will also be increasing. Unlike starting DCA method in this bull run when we are constantly seeing new ATH, it will not be profitable for a new investor to start now because anytime bear run will start and price will start to dip, which will depreciate the value of Bitcoin..
What I know about the DCA method seems a little different from what you are saying. I agree with you that the DCA method can be started at any time provided the capital is read as it is an ongoing investment strategy. I defer with you on the aspect that the DCA method will not be profitable on a bullish market because it can be profitable in any market condition provided the plan is the hold those coins for a long period of time. I also know that the DCA method does not care so much about the price so any time is fine and any price is a fair price for the DCA method.
The DCA method will not be profitable in a bullish market, and at the same time you should pay attention to the fact that this method is encouraged to accumulate bitcoins in any market conditions, regardless of price. Profit is important for investing but holding Bitcoin is more important for getting high profits in the future. DCA may look negative in terms of reducing UP when the price is going up, but accumulating bitcoins on a regular basis is increasing the stash which is positive for your finances. That is why the DCA strategy recommends a long-term cycle. Weekly or monthly DCA deposit process and ideal for guys of any income between bitcoin price hikes. A long term accumulation strategy may be fair to you and may be much higher than the profit you are aiming for. If by chance the price shows more bearish and don't risk your capital because you have already set your mind to accumulate multiple cycles. Bullish times will return again and again and $250k target by 2025.