Bitcoin Forum

It's no rocket science and have threw this word plenty time around whenever someone asked when to buy. Recently realized it's better to keep money in fiat/stable coins until market presents opportunity itself.

Those who know charts can find proper bottom and do dca there but for simple folks fear and greed index is enough: https://alternative.me/crypto/fear-and-greed-index/

The question is how? This is easy to say but there are many ways how it will help you to identify this opportunity and there are a lot of bases on how to spot and achieve that.
But your point about using such indexes as fear and greed is one of the many ways to identify the FEAR and GREED of the market.
But you should also consider the value of it because when we drop from $30,000 before the index is indicating FEAR is high but again now we dropped already to below $20,000 and the FEAR is still high.
DCA is also applicable here if you have some value target of the FEAR index then buy some or wait again or scatter your buy orders.

DCAing all the way from 60k to 20k is worse than $30k to $20k or lower.

Those who know and read charts, don't look for DCA. They find the bottom and utilize the opportunity. On the other hand, personally, I think DCA is a method for people who can't read chart and act accordingly. In DCA method, there's no bottom or anything else. It's all about setting up the period, amount and goal. No matter what's going with the price. If you are following strategy you have set, in long term, you are likely to gain.

I'd say that's not DCA, but buy every dip because in DCA you're wouldn't care about the price when you want to buy, while buy every dip you're looking to accumulate more Bitcoin when it's drop and you could bought 3-5x times in a day considering Bitcoin price decrease a lot.

You don't need to order on specific day/week/biweekly since you can place limit order of $17K $16K $15K and so on, so if the price met your order, it will be filled up.

There have been a lot of cases whereas the fear levels are higher in a bullish trend, and fear levels are lower in a bearish trend. That's literally one of the worst metrics to base your investment/trading decisions on.

That's also a strategy that's been known and being done by the others. They wait until the market goes active again and see an entry position before a bull run comes in. Nothing wrong with this strategy if you just want to make sure that the market is up and back again.
It's up to you how you're going to monitor this one before you buy at a good position before it skyrockets. This is also effective but I'll choose the DCA since we've probably bottomed already.

Don’t take those fear and greed graphs too seriously. They have been at fear for months and it keeps going down. I used it last cycle and price went another 50% before reversing and same with the greed calculation.

If you went by that you would of sold provably at $20K before it hit $69K. The issue is that it can fall further and the extreme fear will only go down by one point or two. And you are sitting at a 20% loss. And it can also go down another. 20% a few times before it reverses.

Fear high means that you can make money in most methods, we are talking about just buying and waiting. In that case, you do not even have to DCA, you can buy all in right now at 18-19k range, and you will still profit a lot when the time comes, even if it drops more from here.

But, if you want, you can do DCA and it will certainly be a lot better and we can make a good profit from it. That is why I keep saying that the best thing we can do right now would be buying as many bitcoins as we can. Doesn't mean we will make a profit for sure, it just means that we will have a better chance to make a profit if we get in here (dca or not) then any other price in the past year.

I mean it sounds completely legit and sensible. Till the bear market give a big nope and f everyone by going down after those short active moments in green. It wasn't called a bear trap for show.
OP's way of DCA when the market at high fear seen more likely depend on how long that fear has been like that. For weeks or for months? Since the longer the trend, the higher chance it was bottom out already.

That what triggers out in terms of fear and stress or hesitancy when it comes on making decision when tending to DCA but if you are really that mindful about the opportunities that lies ahead and have able to accept the risk then taking accumulation on times like this is a good or ideal thing but not all would really be having that kind decisions to be made due to fear of losing even more that's why  it do really varies from person to person on how they handle out such situation which is something really that hard to be handled out specially when emotions are starting to set in.

I tend to agree with this and it seems right.
DCA's method of purchasing Bitcoin is the only way for non-technical analysis investors because they need only to follow the market trend, they will keep investing a little by little when seeing the market continue to drop and set a goal of profit for a long period of time and it's expected when there's a bull run come.  There's no bottom price, if the price will continue to decline, they keep purchasing through the DCA way.

The fear is high when you investing altcoins not on Bitcoin.

I myself do DCA not only based on my own analysis but under the guidance of a mentor. Because I myself am still a beginner and new to crypto. I'm still in the learning stage so panic and greed still get to me sometimes. but I have a friend as well as my mentor. so at least I followed the directions of the right people. and so far I am not disappointed.

but for those who can't analyze the market and charts and everything, it's better to wait for this bear market to finish.

Each month, there is fearful time
Each six months roughly, there is extremely fearful time

You can do DCA each month or each six months, depends your plan. Just prepare your capital for DCA. I very like your advice "It's better to DCA when fear is high" as it maximize positive net effects from this strategy.

I introduce another site to check Fear & Greed Index.

• https://www.lookintobitcoin.com/charts/bitcoin-fear-and-greed-index/

Some other things to share, HODL time and profit/ loss; and derivatives chart. We might not yet touch bottom but it is not too far.

• HODL time: https://hodl.camp/
• BTC price weighted by Perps Funding Rate

although the fear indicator dominates but in reality it turns out that many people buy gradually during this bear market and keep it and continue to increase. as reported on the cointelegraph (https://cointelegraph.com/news/bitcoin-mints-more-than-13-000-wholecoiners-in-the-past-seven-days?utm_source=Telegram&utm_medium=social) site.
 

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I as a day trader even keep doing DCA for my long term investment. I divided my money into 10 parts. where I will buy in stages up to 10 stages. for example I use $1000, then I will divide it into 10 parts. so you get $100 per share.
and I divided it into 10 entries.
1. $100 entry at $20,000
2. $100 entry at $19,000
3. $100 entry at $18,000
4. $100 entry at $17,000
5. $100 entry at $16,000
6. $100 entry at $15,000
7. $100 entry at $14,000
8. $100 entry at $13,000
9. $100 entry at $12,000
10. $100 entry at $11,000.

and of course the money used must be really cold money.

sometimes I add back the amount of money when I get more profit from my daily trading as a savings to forget.

With this arrangement, my mentality becomes more stable because even when the bear market continues I don't think it's a problem because I'm waiting in line to buy in the lower area. and if it turns out the bull market is coming and my order is not partially filled then that's fine because it won't hurt me. instead I would be happy too because I profit from orders that have been filled.

Sometimes I change my plans too when something unexpected happens.

And that's still unknown and hard to figure out unless you're too patient to see what's with the trend and you just need a confirmation and validation until you make a move.
Whatever is the strategy that makes you crave to buy for more or wait for more depends on your view on the market. The better view that you've got, the more confident of investing style you do.

There's no right time for DCA. Every dip is an opportunity to DCA. That's why it says "Averaging". If someone is really willing to do DCA, he wouldn't wait for the price to come down to 20k.

Also I don't know how a person who knows the chart can find the bottom! It's all speculation. No one knows the bottom and no one knows the high. It needs to be periodical and consistent.

Exactly my thoughts. Though there are experts in every field of endeavour and I believe there are experts in this world of crypto. Bur I doubt that someone will always know the bottom to  buy. We know charts don't lie but the market is dynamic. No matter how experienced, one cannot be accurate everything, hence the essence of DCA shouldn't be over emphasised.
The right thing to say is that someone with good knowledge of the charts will stand a good chance to DCA well. He will make smart judgement on the interval of DCA and the amount at each entry. This cannot be said of someone with no knowledge of the charts.

DCA is a tool that fights fear, so with correct DCA plan, there should be no fear.

Just make yourself sustaining on which this is the primary concern or target that you must do when you are dealing with the market.Dca isn't something that you could learn directly in overall concept and idea but it's not really hard to understand on what it is all about but of course it would really be requiring enough funds or finances for you to handle out yourself on such conditions but we know that emotions would be your main enemy for this one even if you do have the funds but doesn't mean that you could succeed from time to time.
Everything is really that unpredictable.

You are simply right. Not everyone knows how to DCA but I believe you can learn and make use of it. But still you need to have some cool funds after the knowledge to be able to do the DCA very well. For me I will rather buy after the market shows strength of buliishness.

The DCA strategy is good because it can be used by everyone, even if they have little knowledge. Warren Buffet does not do DCA, to give you an example.

The problem with the example you give is that when the price has fallen a lot you never know where the bottom is, that's why DCA is good because you buy regularly regardless of what the market does.

When you know a little about how markets work, without being Buffet, you can do what you suggest, without trying to be too exact in getting it right. What I do is DCA and if I see very big dips and bear market, I increase my buys a little bit.

LoL yeah that's always the case that happens there most especially on the current market now. People think the rise will continue but it eventually falls down again, this is why it is still better to buy when the market is down because there is a big possibility that it will back up but you can prefer to not use all of your funds for buying since there's also a possibility that the price can go down for more.

Overall, the market will always be unpredictable and we are all free to follow the strategy that we think good for us. There is nothing wrong with the first strategy but as long as you know how to hodl strong in case a bear trap really takes place.

So whats stable scenario it is? I think its kinda hard to locate those points on certain charts. For some who did buy deep prices, its not yet good and those who thunk they bought at good bottom now is the time for them to sell. This is circulation no one would ever be balance. We need a crunch time to possibly see that we did a good decision on buying and selling cause no good enough even professional to predict an accurate level at which we should do that.

A "proper bottom" doesn't really exist imo, it only ever appears or is discovered after it passes so yea, it really isn't a metric I'd use in DCA. Heck DCA should be done regardless of time/price, it's all about trusting an asset to develop in the long term. I would definitely recommend DCA on Bitcoin, but never on altcoins. DCA is the idea of slow and steady wins the race imo, it's not something to rush or to use to get rich quick.

The best chance for buying is when the blood on the street.
we should always think what majority of people dont think. the game is up to you and it depends on psychology

This strategy is good for those who believe in it and just want to accumulate more and more bitcoins for the long run and securing their future.At these times the prices are low but you can't decide the next move of the market but DCA will help you to gain btc with whatever amount you have planned to invest on and it's good according to me.Conversion to stable coins is choice for many at these times but it will not give you any returns in the long run so better wait for some time for market recovery.

Apart from the DCA strategy that will be profitable for long-term holders, DCA also needs to be supported by good money management, because we must still have spare funds to be able to buy bitcoin or altcoins gradually every time there is a drastic decline.
People who switch to stable coins of course also have to think about whether it is safe for the long term, price fluctuations can happen, such as the case of UST which is a stable coin from LUNA which eventually crumbled and many investors suffered losses.

Being in fear for long and still going down actually makes quite sense, why wouldn't it? I mean it is in fear and if people are in fear then they are selling, hence why it's in fear. That means the price going down equals to people being in fear, and that is how all of that works.

The logic of that fear/greed index is not to tell you when the price would go up, it doesn't say that "fear equals quick profit short term if you buy now" like many people think, it just tells you if the market is in fear or greed. After that, is up to you to make a difference and sometimes you use it and make a profit, and sometimes you do not use it and make a loss.

Not only on believing but also to those people who do have deeper pockets for them to make out necessary step for them to get in.Not all people would really be that
confident on making such action even if they do have the funds to make use of with but we cant really deny that in every drop there would be always an opportunity
for you to accumulate cheap which would really be an advantage for you compared to those people who cant really able to purchase just because they do lack out of funds.
DCA is recommendable but of course it would really be applicable into those projects which are really worth to hold for long term.

Bitcoin price this season is something that we know vividly that is stable and profitable according to the price rotation. Converting your funds to fiat and stable coins is really acknowledgeable due to the risk involve in keeping to cryptocurrency. But like fiat currency, at times it does not have increase. So it's advisable instead of conversion to Fiat currency then you convert to stable coin before it retain it's value.

Yes, DCA must also be accompanied by good and correct financial management. and also this DCA cannot be done carelessly or carelessly. because to do so, you also need to have market analysis skills, chart chart patterns and basics such as support and resistance points. because if this DCA is done carelessly then the results will not be effective and not as expected. I've recently seen a lot of crypto users or crypto traders who may be new to crypto trading and maybe he or she isn't very familiar with basic analysis so the DCA strategy is not effective. So it is also necessary to remind beginners that they must know first how to use this DCA method correctly and appropriately. and must also know the reasons for using DCA.

There's nothing wrong with waiting for the bitcoin price to drop and you start buying when the price is what you expected, but I don't think DCA is a bad thing either. Someone who has previously implemented the DCA strategy from $60K to $20K may find it useless as the price drops below $18K. But I don't think they're losing now just because bitcoin is $20K, they're not selling now but they're collecting as much as they can and targeting long term gains.

What's wrong in my opinion is that when they do nothing during this bear market, it's much worse than what people who take advantage of the opportunities in the market do. While these people keep talking about bitcoin having potential, they never buy or own it.

I tell you of a truth, those who are absolutely sure as in the Nostradamus style that price has hit a bottom won't need to do a DCA. They throw in all, I mean all, and buy at once. Why would anyone begin to make purchases in bits when they're convinced that price will dip further. None, of course. I like the DCA strategy because it offers investors an opportunity to get cryptos they wouldn't want to miss at a perceived cheap price.

Following a strategy blindly is never a good idea, after all dollar cost averaging like any strategy has some downsides, and one of them is when you buy a coin that is going down in price for the first time and then the coin keeps going down in value after you bought it, by buying the new lows you are getting at better and better prices but your unrealized losses keep growing and growing, and this can be incredibly difficult to deal with if you are a new trader.

True, It would be hard for newbie trader to keep up following it's unrealized losses especially if the newbie trader has a not that big capital to support his dca strategy. Our bear market is pretty long and the more the higher your starting point of your DCA is, The longer the unrealize profit will come. DCA is effective, it's just the newbie trader should put a lot of time finding the target market price the trader will buy and be active whenever a big chart movement is happening.

Just let them be able to to realize those things along the way because thats how thing goes and works.You wont able to find out unless you do experience it for yourself.
Its true that when price deepens then it cant really be avoided not to freak out on the time you are seeing deep negatives on your portfolio. DCA suggestion might be simple but its not for everybody.
Not all does have the money in reserved and not all does have that unlimited or huge funds to have in idle for them to do such strategy and also even if there are people who are really that
have the capability wont really be having that confidence on executing DCA due to emotion problem or something in related which its not surprising.

The main obstacle is indeed about the reserve of money, because money is limited, suggestions for doing DCA cannot be done. Those who don't know how to do money management will put all the money in one coin they buy, so there will be no more spare money.

I've even been stuck in an unfavorable situation, where the spare money was used up to buy the price down and the price was crashing even more. If you cut loss, you will experience a lot of losses. The only way is to keep holding on and I don't care anymore.

So you must to have plan for DCA in order to minimize risk of enter with too high price, top or all time high price. With DCA, you entry price will be an average of many entries you make.

DCA is using spare money for your investment at different times and with different prices.

Your unfavorable situation will be favorable situation for others because in market we always have winners and losers. If you are in painful when Bitcoin falls to 18,000, other patient investors can feel very happy. Hapoy because after months of waiting, they can rejoin the market and even can get good profit very quickly.

Another weakness of DCA is that you need to use the strategy only on good assets, if you use the strategy with altcoins that could disappear at any moment then you are going to get burned and lose all your capital sooner or later, we need to only invest in coins that we know have a significant chance of surviving the bear market and get to new all time highs, and very few coins fulfill this criteria in this market, and without a doubt the best coin in which we can perform this strategy is bitcoin and maybe ethereum as well.

DCA would really be indeed worth on something which is also worth in speaking with potential coins considering on how many projects or coins in the market then it is really hard to choose but if you dont like all the hassles on making out some research then better stick with bitcoin and other top altcoins rather than making yourself considering on some low cap shitcoins in the market which it would really
be just a waste of funds you do have and just like what i do said that it wont really be that simple on making or doing DCA if emotion would really be stirring up on where you cant really
make out good decision even if you do have the funds and money to take such step.Human emotion is really that relevant on affecting your decisions in life.

DCA is better off than keeping your funds in fiat or stable coin. In market conditions when it seems the bottom never gets exhausted, DCA could be a better investment approach because it gives a new bottom price at different price intervals. I don't think DCA Requires any form of technicality since it doesn't require investing all your funds at once  understanding charts only a plus to the technique but anyone can actually make profit with this technique

While you do not need to be master trader to be able to execute this strategy at the same time when you start applying the technique can have a huge impact on how much bitcoin you can get, if you start to do DCA when the market is in a bull market then it is obvious that as time passes you will buy less and less bitcoin, however if you do this when there is a bear market then the amount of bitcoin you will get will be higher, and as such this means that employing that strategy right now is the best decision we can take.

For those who consider on holding bitcoin for long term then they would really be usually dont care on what price level they would able to enter since they are minding off about holding or future perspective

which means that it wont really be requiring for you to make some analysis on when you would get in but its just common sense that we would really be tending to get in as low as much as we could
where we can make profits or maximizing it as much as we could but we know that bottom cant really be determined which hit or miss situation is really common on making decision.

DCA is common but not all people does have the funds or finances on doing so thats why whenever they do see that their investments is declining and trying to cope up or cover the losses
then they do decide on panic selling which i dont see for it to be worth or right for someone to take.

Investors with far vision can buy, hold and enjoy their lives. They don't have to read news every day, watch chart every hour and don't have to stress their mind with market volatility.

To Dollar Cost Averaging, you don't have to have lot of money. You must have confidence with your investment and discipline to follow your DCA strategy. If you are not disciplined, you can not do DCA.

The fact that we will never be able to predict where the bottom of the end will be, DCA is the perfect investment strategy for us to use. DCA does not need any more technical knowledge as long as you have a clear plan, for example you plan to buy bitcoin, every time bitcoin drops more than 10-15% you will DCA once. DCA will help you quickly make profits or recover capital faster than waiting until the last bottom to buy once.

Certain strategies would fit for each and everyone of us, if DCAing won't be effective to you then I second that keeping your money in fiat with the purpose of using it in the future whenever the market shakes.

That's gonna require you more patience as you wait until those reasonable prices appear in front of you.

But are you going to buy that when the opportunity is already in front of you or you'll still wait for it to have a dip?

See, this is the problem of most people it's ironic because they like what is not in the present but rather hope that the future will be in the present. First thing first is you do what you can do in the present to attain that future you wanted and there's no shortcut on that just be consistent. Better grab the opportunity since it's in front of you because opportunity seldom come and once you let it slip you might have some regret while waiting for it to happen again.

Yeah, there's really no shortcut with the process of being successful with your investments. At first, you really need to study which among them is the best to hold.

Choosing is vital and very critical because if you do happen to choose to DCA, it's part of it and also, if you the other strategy that was mentioned of only being active when the market is active again.

Choosing is still important as during the bear market.

Any purchase must be reasonable and if you start shopping early, then DCA will not help you get a good average purchase price. I know one investor who has not made a purchase yet, and keeps his savings in stablecoins, because he believes that the market has not reached its bottom. Although most have already started buying bitcoin when its price dropped below 30 thousand dollars. Which of them will get the best purchase price will be known in the future.

Basically I agree with some people who say that there are many ways to determine when is the best time to buy and it all depends on how we make decisions. We can buy every dip, and we can also buy when the price starts to move up but can also wait months for the market to present the opportunity you want.

All can be justified but I'm sure there must be one of the best among the good to implement in terms of investment. I could also wait months as you mean, but buying every dip and doing a DCA is also worth considering.

If the market is continuously down to the dip, no one can assume where its maximum. Moreover, many speculate that there is a possibility of going deeper form the current position. They are not willing to buy any assets. Everything is just an assumption. But as per the overall market condition I think DCA is a better investment strategy at this  point. By using Dollar-Cost Averaging method at the moment comparatively it will be less risky investment.

That means he doesn't understand DCA at all if he keeps looking for the lowest, the bottom. He should invest when the price was around the range which he thinks can easily recover in the next few years. It didn't even need all of his funds but a little of it every time it come close to the bottom in his thinking. Because if he keeps on the fence, waiting for the lowest, one chance instead of spreading and DCA, he was increasing his risk in case thing doesn't meet his expectation of the lowest, the bottom.

Using DCA strategy is for me a good strategy that is applicable on the market situation we have right now but If you know how to read charts, It would be better to take advantage of it and catch support or lower prices. We should learn how to maximize our profit in the future. I myself is doing a modified DCA strategy where as I do have the exact budget and time span when should I buy, It's basically a DCA strategy but the thing I modified is I'm trying to find the lowest price I can buy at my set time span since I can do research and read some charts.

It will be more beneficial if you know how to read the chart and combined with the DCA strategy, you will have more opportunities to buy at a cheaper price than many others but for those who do not know how to read charts they can also DCA effectively as long as they have a specific plan and stick to the market. If we want to maximize future profits, in a bear market such as this, DCA would be better off holding money in fiat or stablecoins.

Doesnt need lots of money? Yes you do have a point but this is something noticeable if we do make out some comparison in between to those who do have lots and compared to have less then we know
on who would be the one to have the advantage.Yes, you could dca with less funds but of course it would really be just limited.

Also in counting on different opportunities and changes that this market makes then the more funds you do have  the better but of course risk taking or management will really far stretched which
is normal.
Fear is always there even if you do have these capacities or capabilities but its true that investors with far vision wont boggled down on the actions that they would be making.

$$ amount is never an equal field, one should bother with return in % rather than $ amount.

Or maybe it's still better to wait until a reversal pattern is formed and only after that start buying coins? In this case, you will still have a better average purchase price than if you started DCA with 30 thousand dollars for bitcoin. We can only say unequivocally that each investor adheres to his own strategy of forming his portfolio.

Yeah, mine is a bit different from people as well. Most people buy at a certain level, and when the price goes down they buy some more, but mine is basically buy some bitcoin at 1st of each month no matter what. I believe that this is something else, not really a "DCA" but becomes DCA when the price goes down.

I believe that what I am doing would allow me to be rich after a while. So far it didn't allow me to get rich because I had a ton of debt and now it's getting fixed and I have nearly none, just small tiny stuff. All in all there isn't anything that we could focus on when it's long term, just do it and you will be fine. That's how you grow bigger and better.