What I understand from @Popkon6 statement is that DCA help anyone wants to save BTC consistently according to the specified target. And this DCA strategy means that an investor will only make purchases every week or month with the same amount and does not care what the price as long as it has not reached the target. So, there is no influence on the impact of market downturn.
It is not necessary to invest with the same amount of money. It is okay to buy consistently every week or month in the DCA strategy, but there is no obligation for you to buy the same amount. You can increase the investment amount in any month/week if you want or reduce it if necessary. It completely depends on your ability. Investing in the DCA strategy means that you will invest continuously in any amount for a certain period of time depending on your ability and hold it for a long time.How it possible to use DCA strategy with different amounts every week or month? It seems to violate the pure rules of DCA strategy.
I may understand your statement regarding investing with different amounts. Because there may be an investor who does not have a stable income. But with different amounts you will have difficulty in calculating the all amount profitability your investment. While the DCA strategy helps us more easily calculate the amount our investment without looking at our assets.
As JayJuanGee often does when calculating the total investment using the DCA strategy using DCA calculator. Then how do you calculate your investment when using the DCA strategy with different amounts?
There is no pure rules that DCA must be the same amount and it is very much possible to use the DCA strategy with different amount and you will have and enjoy the full reason and benefits of your dca strategy, the DCA strategy is not a rigid strategy and it has flexibilities for us to change our investment amount based on the available discretionary income, even to those that have a stable income there can time that expenses can vary or differs in-between the weeks or months which can directly influence your discretionary income and of course your investment money.
Yes, DCA doesn't have a fixed amount that someone must be using to buy Bitcoin weekly or monthly. It all depends on individual choice. However, I feel that if someone sets a fixed amount to buy Bitcoin monthly or weekly, it would make more sense. This is what I have been doing recently not claiming to be smart with myself.
When I didn't set a fixed amount for DCA, I always tried to be clever. I would buy small amounts of Bitcoin every week and wait for a dip to buy more. For instance, I was supposed to use $20 weekly to buy Bitcoin, but I ended up using $10 or $15, thinking I might catch a bigger dip so i can buy more. When the dip didn't happen, I realized I needed to plan better.Now, I have set a fixed amount for my DCA to avoid regretting my decisions later.