Quote from: JayJuanGee on Today at 04:57:53 AM

Quote from: Richbased on March 13, 2025, 09:31:35 PM

Quote from: Proty on March 13, 2025, 07:21:57 PM

Quote from: Stormisover on March 13, 2025, 10:55:33 AM

Is it compulsory that the dca amount must be a fixed amount? If yes that means investing can be burdensome and can make investors to use part of the money that they should have use to solve their expenses to completely their routing fixed amount of money for DCA at whenever their expenses becomes more larger than the previous week or month, for those that have a stable source of income probably a permanent job having a fixed amount for DCA can help to become more discipline in fact it can even become automated in a considerable way that it will not have a negative influence in sorting out their other needs, but for those that doesn't have a stable source of income maintaining a fixed amount for DCA will definitely become more difficult because of irregularities in their income flow, that is to say DCA amount shouldn't or must not be compulsorily a fixed amount for flexibility.

It is not compulsory that that the DCA amount must be fixed amount,an investor can decide to be using a fixed percentage of his discretionary income let says %70 to be doing DCA or more and this fixed percentage is not a fixed amount it varies with the investors discretionary income.An investor can decide to increase or decrease his DCA amount as per his level of discretion.however as long as DCA is concerned the investor must maintain buying bitcoin at regular intervals and holding for a longer time.An investor DCA strategies should be able to suit there income flow and long term goals.

As you can see the definition of the dollar-cost averaging (DCA) by Google, it involves investing an equal amount of money consistently so even if your discretionary income increases and you also want to increase you DCA amount, it must be done equally at regular intervals. An investor who has reserved funds can still decide to be investing all their discretionary income in buying bitcoin because the reserved can still stand for miscellaneous expenses that you didn't bargain for, so even if you use all your discretionary amount, it won't be a problem for you.

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Dollar-cost averaging (DCA) is an investment strategy where you invest a fixed amount of money at regular intervals, regardless of the market's fluctuations, aiming to reduce risk and potentially achieve a lower average purchase price over time. Link

You are reading that definition (which is an AI construction) too strictly, since DCA can vary based on exact time and also in terms of exact amount and still be DCA. You could choose to invest 70% of your discretionary income into bitcoin, or maybe you can choose some amount that fluctuates based on some other matters that you consider to be priorities for you.

I would agree that some practices are more strict and consistent DCA, yet I would also argue that individuals have a lot of discretion regarding how aggressive or how whimpy that they would like to be. The more aggressive they are, then the more organized and strict they are going to need to be in their cashflow management systems. If they are going to be more whimpy, then they might not even place a very high priority on DCA buying into bitcoin, and almost any amount will work, which would still meet the definition of DCA investing, yet it would be very whimpy in terms of how high of a priority is given to bitcoin...

So surely, whimpiness or aggressiveness are somewhat sliding scale concepts and the AI definition bots are not talking about those kinds of ways of considering your bitcoin investment. They are also likely not even considering how bitcoin differs from other investments, including that DCA should not be applied to shitcoins, but the AI doesn't know that, since it does not even know what a shitcoin is. Surely, you have options to choose your level of aggressiveness and how much you might vary your own whimpy or aggressive approach to DCA buying of bitcoin based on your own financial and psychological circumstances, including how much you might learn along the way, and sure in the beginning of your bitcoin investment you might purposefully choose to be more whimpy in your investment while you are figuring out your cashflow management and other factors you consider to be relevant towards your bitcoin investing, yet as you become more confident in your own finances and other individual factors, you may well choose to increase the level of your aggressiveness in investing into bitcoin.

Quote from: Sticky Bomb on March 13, 2025, 10:06:15 PM

Quote from: Wakate on March 13, 2025, 09:07:57 PM

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We are currently in a dip, an investor who regularly invests $200 weekly and wants to take advantage of this dip can take a loan of lets say $5,000 with an interest rate of 5% in order to buy more quantity of bitcoin at this reduced price. Now, this $5,000 is equivalent to 6 months and 1 week of his normal accumulation timeline if we go by 4weeks for a month calendar and possibly, he spreads the repayment to about a 9 month timeline. The totality of what he is to pay is $5250 and spreading it across his 9 months timeline would see him repaying approximately $146 monthly while he still has $54 to continue his DCA.

Where do you think one can get a loan with an interest rate of 5% and for how long? I asked you because I've not really seen that and for how long. Your Narative is actually wrong because I am still contemplating who is going to give you a loan of 5% to pay all in 9 months. Most loan I've been seeing is between 15% and 35% depending how long it's going to take you to clear the loan.

Just imagine getting a 5k loan with an estimated interest rate of about 15% to 25% although this could depend on your region and what platform you are using to get the loan.
If you multiply 5k × 20% to be paid within 9 months timeframe. That means you are paying 1k extra making it 6k to be paid.

The question here is that what's the assurance that you 5k investment could worth more than 6k in 9 months timeframe. You know that the market is unpredictable and it would make sense to take risks without proper planning for backup funds which is very important.

Check this out https://ycharts.com/indicators/china_loan_prime_rate?utm_source=chatgpt.com
China gives at an interest as low as 3.10% benchmark per annum. The value for China is from last month.

Switzerland had the cheapest interest rates on personal loans, it was around 2.86% as at 2023, but I'm not getting the accurate figure for now, but it's really low and ranges from below 4% to 12% depending on purpose.

There are others, even African countries like Cape Verde has low interest rates too of below 5%.

I am not against the idea of getting a loan and/or front loading your investment into bitcoin with a loan, yet each guy needs to be able to service his loan apart from the bitcoin investment, he must also account for the costs of servicing the loan. So yes getting a loan allows for the frontloading the bitcoin investment at the time that the loan is received, and so there could be some advantages of getting bitcoin at cheaper costs, if the BTC price goes up and does not come back down. There are also risks that the price goes down rather than up, or even sideways rather than up, so if the bitcoin price goes sideways or down rather than up, then the bitcoin that were bought from the loan ends up costing way more than they would have without the loan... and so those are chances that a person takes with a loan, so anyone is more than free to enter into those kinds of loans, and surely it is better (and more justifiable to take the loan) if a person is able to qualify for loans that do not cost as much in terms of fees or even the length of time of the loan is long.

Hi JJG, I believe you quoted wrongly in your reply here, maybe you can adjust it to be more readable.

Loans aren't bad, it becomes of more advantage of the prices of BTC continues going up within the repayment period, but I'll still maintain that if you can avoid it while remaining committed with your DCA, it's a better option since DCA still allows you to buy across dips to and tops to smoothen the effect of volatility on your investment.

It would be more painful if after taking such loans and Bitcoin price continues going down, then he bought lesser quantities with more money and is still paying interests. Such investor might even terminate his accumulation journey out of frustration. That's why it's advised to remain as much aggressive as you can without overdoing it, so you don't experience discomforts that might threaten your ongoing accumulation journey