Bitcoin Forum

People are trying to figure out the best way to invest in cryptocurrency because it can be very unpredictable. If you're an investor looking to reduce your risk, you might consider a strategy called dollar-cost averaging (DCA). However, using this strategy means you're less likely to make really big profits.

Dollar-cost averaging means putting the same amount of money into an investment over time. It's nice because it makes investors feel more comfortable. By spreading out your Bitcoin purchases over time, you're either buying when it's doing well, or you're getting it at a lower price compared to your first purchase, which is a good thing.

Some people prefer to invest a large lump sum all at once because you might end up with more Bitcoin quickly. But there's also a chance you'll end up with less. To decide between these two methods, you need to think about the risk involved.

If you want a bigger chance of making a lot of money, go for the lump sum. If you want to slowly accumulate Bitcoin with the least risk (even if it means having less Bitcoin in the end), then DCA is better. For most regular people who just want to accumulate Bitcoin, DCA is a good choice because it helps you get a decent amount of Bitcoin based on the money you have to invest.

What is your opinion?
And and which method do you prefer to be used in this present market conditions?

If you can see that using DCA as the best techniques in buying bitcoin and accumulating it as enough as you could afford just to help reduce lost, then know that this same DCA could present you with the best opportunity for making the desired profits you aimed at only if you give your investment time to mature before releasing it.


It could also means buying little by little over time and accumulating in other to avoid high lost over a short period of time if the market dips after you invested, it also could renders you more opportunities in buying more subsequent dips the more the market dumps to increase your chances for high profitabilities.

Does it need to say, dude . In my personal opinion, I think DCA strategy is the best for most of the person.
If you divide investors into different categories, then there will be less category of professional traders who know more about technical analysis. And there are few people who can hold a lot of funds at once for investment. Here is my real point. Now if they are going to invest, one of the best ways for them is to make investments through dollar cost averaging. I think if someone invests in Bitcoin like this for five years or with some strategy like that than keeping money in the bank, then I think he can earn more profit from this investment than the APR he will get in the bank.
I myself have taken a study to invest an amount of Bitcoin weekly or monthly for five years or more than that time.

You are right about lesser profits, but that applies only when you are trading. Because in trading, we should avoid DCA instead, lump sum is better. While holding, we should definitely follow DCA. As DCA will increase the chances of buying at dips. As you had not inserted your whole money in the market, after 1 or 4 buys you still have some funds, and if the market dips unexpectedly, at least you will have the opportunity to buy at a low. Means you could get more satoshi.

Actually, at DCA, we have the opportunity to buy more BTC. And keep one thing in mind that. DCA is for holders not for traders.
I am doing DCA and weekly. And will wait for the next ATH which might come in 2025.

As far as I know DCA is to determine how much money to invest, then make a time period/schedule to make purchases with the same number of purchases up to the total investment target amount.

And this is very effective for investors who have long-term plans, whether they have big profits or not, this depends on how long you hold Bitcoin and the cycle you enter the market, this will determine how big or small the profits are.
If you enter at the beginning of Q4 at the end of 2022, and make the investment period until March, surely you will get a sizable profit in June and July.

Not bad? It is probably the best strategy any person can use and make money. It takes no brains to follow a strategy like that, completely fool-proof. Other strategies needs you to have knowledge and luck. You need to know how to analyze charts and follow the news and still you can make mistakes here and there. DCA on the other hand, it is just so easy. You buy $xx of btc every week or month and that's it, sooner or later you'll come out on top and make yuuge moni. Almost everybody except the dudes who bought it at ~$30k+ made money that way.

DCA encourages you to continue to invest regardless of the amount of money you start investing with. DCA discourages investing once and not continuing.

If the money you can afford to spare to invest in bitcoins the very first time is huge, DCA encourages you to continue investing even after that first huge investment.

DCA is not only for small amounts, that is a limited way to think of the strategy. DCA is not only for the not so financially strong, it is also for the rich.

Dollar-cost averaging was never a "bad" strategy. It's just that people frequently foil their plans when it's the case that the price moves greatly in a certain direction(panic sell or not following the scheduled buys when price drops, or not following the scheduled buys when price increases).

And ultimately, DCAing is a sort of 'boring' strategy, so people tend to get restless.

It's indeed the best way to invest money especially if you want to lowkey invest without worrying of the money you staked, since other techniques probably needs time and knowledge for you to gain profit like checking everyday the market's behavior, trends, hypes and news. I think "Dollar-Cost Averaging" is actually effective especially for starters and it's not consuming on your money as you all you need to do is to follow a certain schedule/money when to invest. Cause other's prefers to invest in a huge amount of money which I think it's really risky you can be a big-time millionaire or in debt so if you want to play safe in crypto maybe DCAing is the best techniques for you. It might take slow but in few years you might be to the moon.

DCA is still run weekly or monthly this must be consistent while prices are still low or even prices rise slightly you can still do it.

No one says that the DCA strategy is bad, but for those who say it is not planning with certainty, even if someone does this for years then he can accumulate more bitcoins than buying at once it will burden you financially but with DCA with a small dollar cost input it is certain to continue to accumulate over time.

From the price of $40K to the current price still with the DCA method I can see the average price purchased with DCA.

It's not secret, I mean if you will hear others advise this strategy for many years, even those who have been in bitcoin for so many years. Perhaps it's how you manage risk, and you can start as little and then you can ramp it up as long as you have a good to decent capital.

Specially in the condition that we right now, specially in the bear market, you can used it and then steadily accumulate bitcoin overtime without you noticing it. I mean you have to used this method overtime to really take advantage of it.

You are right, but as far as I know the time period of holding the BTC which are accumulated by doing DCA is longer then 1 or 2 years. i have seen people doing DCA whole year or maybe more then 2 years who know for how many years. But all that matters for them is to get more satoshi. So from them and from my own experience I can say for sure that DCA is the best thing if you wanted to do holding for like 2 or 3 halving. But if you are looking for instant profits in lesser time then Lump Sum is the only thing we should prefer because it could provide better results than DCA if we are talking about shorter timespan.

DCA is really not a bad thing instead it help one to become puntial about his or her money. For example if you have a earning of 100$ weekly which I know is lessee but lets just imagine then after spending the money on your required things you left with $400 and from those $400 you started to invest $200 weekly in BTC by doing DCA and you planned to do it till you have steady job making you $100 weekly. But let's say if any dips comes or any emergency came and you need instant money to cover them up. And at that moment you will realize the importance of not investing the whole $400 all at once because you still has $200 in your holdings in the form of fiat.

DCA is for those who have bigger plans while buying at dips, or doing Lump Sum does not meant that it will generate you high results in short time period too because proper analysis is also necassary. And if the path to success is as easy as it seems then almost everyone try to accumulate BTC more and more

Lump sum also gives you a bigger chance of making a lot of losses. You can buy and the price will start dropping which means you are making losses. It could also work that immediately you buy, the price will start rising. But you rarely lose in bitcoin except if you have a short-term plan or you panic sell. But you nailed it mate, DCA remains the best strategy because it is more convenient and spreads risks. You are not under any form of pressure because you are buying based on your capacity and timing.

I might consider the lump sum strategy if I have a huge amount that I have planned to invest at a certain time. But for now, DCA is my best option because my income comes in small sums periodically. It is easier to budget some part of my earnings to buy Bitcoin every week or month. DCA is the best for salary earners while lump sum might be suitable for businessmen who make huge profits at once.

Actually this would really be actually be depending on how much money you do really have.Even if you do say that lump sum or going all in type kind of approach when it comes to your position then this is something that would really be that according into your financial capability even if you do say that dca is best but on the time that you do have  that big amount of money on which you could really make that one time kind of entry
specially if you do believe that it is already that the bottom price then you would really be definitely having that kind of insight that you should really make at least that a bigger put up or entry amount on which you would be having that assumption that this is the sweetest spot but its true that on the time that you would really be having that kind of strategy then DCA would be always the best but we know that not everyone could really be having that funds anytime whenever the market would be making out some dumps on which if it do keeps on going down or having that price decrease then not all the moments you would be having the funds on doing such accumulation from time to time and this is why it would really be varying on this kind of point on which does means that it do depends on your financial capability in the first place.

Crypto investment is always risky either direct investment or DCA strategy. But investment strategy depends on the situation, in different circumstances, investment strategy must need to change in real time. For when when find a sudden big dump, I like to capitalize it. Because its pretty sure we have seen recovery after every big dump. Sometimes it doesn't work perfectly hence crypto investment is always risky. But if I don't invest my full portfolio and continue dump instead of recovery then I apply the DCA strategy. That's the reason we have to make real-time decision.

I personally like DCA strategy for those who know little to nothing about trading but want to invest. No need for the signals following a dump if one is truely invested in the idea of DCAing. Just accumulate irrespective of the market season you find yourself in. Maintain a reputable wallet and adhere to security tips and protocols.
After the elapsed DCA time, I believe that any other knowledge required on how to reinvest or liquidate the funds will become more clearer.

DCA does literally mean that investors are going to make more smallish profits because everything depends on
1. The weekly or monthly income of the investors
2. The time span the investor plans to hold the investment and the season the investment was made.


It has to do constant investment of a percent or fixed amount split from your income and still perform well with other financial expense

This is not for everyone. It is mostly used by wealthy people or people who invested in the market for the short term.

DCA is a very good strategy and it is no doubt because with this we can set targets regularly and not be too impulsive in determining purchases because we already have a reference by looking at the income we receive and the expenses that must be made for Investment.
This is a conventional method but very good to do, I also still do this especially when bitcoin is like today in terms of price because with this DCA it will be very possible for us to add to the portopolio we have but not too burdened with purchases made.

Whoever thought it was a bad strategy anyway?

If you can't DCA, it's not the strategy's fault, DCA requires you to have a dedicated budget that would go towards the regular purchase interval of assets, if you weren't able to perform this it's not necessarily the strategy's fault. Perhaps look for a different strategy for investment that would fit you better? DCA as I said earlier may sometimes ask you for money that goes above your means, if this isn't something that you can reliably perform then might as well just look for conventional investment, or budgeting dynamics that would open you to better investment ventures. Otherwise, look at ways to increase your income propensity too, that could work!

The good thing with DCA is that it averages down the entry point of our investment if we tend to do DCA every dip of Bitcoin.  It is indeed comfortable and enables a low entry point for our investment.  It also covers a long-term investment where we can have a chance to buy at a lower price if it happens that Bitcoin volatility becomes very extreme.


At least in DCA, we are investing a small amount in a regular phase, It also lowers the risk of the investment since we are not putting all our money at once so in case the investment is a scam, we have avoided losing a huge fund since DCA is investing in chunks or small amount over the course of time.

People always find ways to screw up a good idea. With DCA some people advocate to buy during the bull market, like Microstrategy and Bukele did, and now they sit on an investment that still didn't break even. But if they bought earlier, dumped at the top, rebought at the bottom and got ready to dump during next bull run - they would make serious profits. Of course they can't do that publicly, because they need to maintain a reputation of true Bitcoin believers, but you don't have to do that. Your goal should be profit first of all. And buying during bear market and then selling during bull market is a better strategy than the version of DCA that tells to always buy no matter the price.

Precisely DCA is the best step to take for long term holders of Bitcoin. Doing DCA with the aim of increasing Bitcoin accumulation can help us to achieve prices according to our targets at several rates. So with this, we won't experience a lot of regret because it's too late to buy at a certain low price. With this DCA, at least we can learn to manage funds for investment. DCA may not be suitable for everyone, because it requires a lot of patience. If you expect high short term rewards, then this might not work for you.

I think DCA is usually a good investment approach for any investments you want to own. Being a trader tends to work against most people and people shouldn’t look at investments as buy low and sell high opportunities as much as they should look at buying stock as owning a company. Buy good companies and own them forever. Don’t pick and choose spots to trade. That’s the investing hack.

DCA or buy whenever you want, that's it. You can always buy whenever you want or whenever you're comfortable with the market conditions.
Just like what I have noticed for some investors, they only buy when the market is too active and the price is quite high.
It's because they're feeling the sense of they won't regret of seeing a low price and that's when they ride to the market, if the price is high.
IMO, any approach of when you buy and whenever you're satisfied is fine as long as it will gonna work.

I think that DCAing is indeed a good strategy, however it must be said that there are many DCA strategies. If you ask around, you will find out that everybody has a similar but sometimes completely different idea on how DCA should be done. So is there a perfect one strategy? that remains to be seen. But I do know that Bitcoin will keep going and going and because of this complete trust that I have in Bitcoin, I feel that every bought dip is also connected, whether long or short term, with a good percentage of profits. Or in other words, a good Return On Investment (ROI).

This is almost true on my part - but since I have put together this investment plan so well, I think sticking to it is the right thing to do.

Price movements that are not in our favor tend to be able to change investment plans - but not everyone will be affected by price fluctuations. Panic is only for those who are not fully experienced in the market - while for those who are experienced will take advantage of the market situation to make a profit. DCA is not suitable for short term investors - I think DCA is suitable for long term investors.

Well, any strategy is better than no strategy at all. Best strategy is buying early. The risk is also enormous however: no pain no gain they say. DCA involves less risk but sometimes it's the only solution (limited funds etc). Impulse buys or planned schedule - as long as you're buying regularly chances are that your investment will turn out successful.

DCA is a good investment strategy because a lot of investors were profitable in this way. It is made to minimize your potential loses but also not maximizing your profit. However, DCA is best if you know how to identify market structure correctly.

Example:
If you're so good at identifying the possible swing low, that should be the always time to buy. In this way, you are not just minimizing your loses but also maximizing your profit.

You're totally correct. The DCA strategy used during the bearish market is a more profitable decision than the DCA when the market is bullish. However, there's nothing bad in doing DCA investment when it bullish market if the plan is to hold for 4-8 years.

DCA directly will not maximize your profits, but you will get good effects in the long term.
You buy gradually from the lowest price and the lowest price, continuing to do it consistently until the real deep price.

Then if the price starts to be bullish and rises more than the price you first bought, it will provide extraordinary profits.
DCA will have an effect on long-term investments and requires patience.

Assets continue to be accumulated so that profits will be higher.
I'm working on a long-term DCA strategy right now, preparing for the Halving next year.

If you have idle money and don't use it for your needs is good to implement DCA. but, if you have money and often use it, I think the DCA strategy will make you nervous if the price drops immediately. actually, DCA is also suitable for implementation on another instrument,  but with have condition you have unspend money, yes you can split it to buy another coin, besides Bitcoin. so if your investment value down immediately it will covered by another investment if goes up.

If money you spend to DCA is your dynamic money and does not belong to your saving and if you are in emergency, you need that money, DCA with that part of your dynamic money is risky.

I agree with you that as investors, we can not know how the market will move next so if we don't have savings for using when our investment does not bring good profit but we have to sell our bitcoin to get cash, it's not only risky but loss too.

DCA will help you to gradually increase total capital for your portfolio, slow enough even you don't realize it. After one year or two year, if you look back, your net capital you spend with DCA will make you surprised as it would be big than what you remember you spent for investment.

DcA doesn’t always work out however. If you started to DcA in the $50-60k range, you obviously would have a horrible average. It would of evened out however if you kept buying but you would of had to probably DcA every week for more than a year to get a decent entry price.

Same with selling, if you sold way too early during the days when bitcoin was low and sold same amounts in the $60K range your average would still be in the $30-40K range.

So sometimes it works in your favor and sometimes it does not.

The challenge is how long you can maintain your DCA?

It is not terrible if you can continue DCA like Micro Strategy but small investors don't have abundant capital or savings like MicroStrategy to do DCA month by month. If my job is lost, my income source is broken, I have to stop my DCA. With this situation, it's my big failure to DCA around $50k to $60k but if it's my own money, I can hold my bitcoins to wait for 2024 halving and a new bull run.

Before successfully holding my coins till 2024 or 2025, I must have enough money to use even after losing my job. DCA must be in a careful consideration and combination with income, expense and risk management.

Which strategy is better depends very heavily on the abilities of the person executing the strategy, it is true that when it comes to making the most money buying all the bitcoin you can during a dip is more profitable than buying at fixed intervals like DCA proposes.

However if the investor we are talking about is a newbie or someone with very little experience, I think DCA is best for them, as it reduces the number of decisions they need to take to a minimum while still offering good profits if they hold long enough.

I think most of the forum does DCA. I have even seen people who have been saying for many years that they still accumulate following the strategy. There are many variations, however, as people think that DCA is simply buying exactly the same amount at the same time intervals, without selling until a goal is reached, which is not the case. You can buy more or less depending on how much money you have available or when you are in the market, just as you can sell partially at certain bullish times.


This is relative and involves timing the market in such a way that it can be more profitable, but it can also turn out badly. The person who bought a lump sum at $69,000 because at that time all the predictions said that the price would rise much higher than $100,000 has less bitcoin than the person who has done DCA since then investing the same amount.

In my opinion, one should never invest all their capital in the crypto currency market at once. Putting your entire investment into any crypto currency at once can lead to losses. It can also happen that when you are buying Bitcoin with all your capital, the market will go up and you will get a good profit, because anything can happen in the crypto currency market,but we don't know whether the market will go up or down from where we are buying. If all the capital is invested, there will be no opportunity to buy again at a lower price.

People who prefer to invest all their capital at one time may not know about the market, it is very important to know the volatility of the market and the risks involved in the market. DCA is a great strategy in my opinion. This gives you an opportunity to buy at a lower price. Buying at every low price allows you to minimize your high price average. When the price of Bitcoin falls, you have the opportunity to buy at the lowest price. The lower you buy, the more you can increase your profit.

I want to inform you and also warn you that danger is always present in all investments, whether they are legitimate or not, as long as there is money involved. Remember what I said—most people in our industry are aware that no investment strategy is risk-free.

Most communities in the crypto realm have used and built DCA tools for a very long time. I can also confirm that this is a practical approach for us to amass the desired amount of cryptocurrency or bitcoin. And if you are a long-term investor, I don't see anything wrong with employing this strategy.

The lump sum purchase method and the DCA purchase method have their respective advantages and disadvantages. The lump sum purchasing method will get high profits if after purchasing the price continues to rise, but if the price falls then they will lose money and it will take time for the price to recover. For the DCA method, they would be better off if after buying bitcoin the price continues to fall, on the next purchase we will get a cheaper bitcoin price, but if the price of bitcoin continues to rise then they miss the bottom price and are forced to buy bitcoin at a more expensive price

In my opinion there is no right or wrong, it would be better if the bitcoin purchasing model was adjusted to analysis and finance

My preferred method thus far has been Dollar-Cost Averaging (DCA). It suits me far better than waiting for price movements to reach my target. DCA is more realistic than trying to time the market bottom, even though the gains may be modest, they still constitute profits. In my view, DCA is a wiser approach as it minimizes the existing risks. As long as we can survive and continue to generate gains with this strategy, it signifies that we possess a more stable financial source compared to going all in, and if you get caught in a price trap, it becomes challenging to maneuver.

From various pieces of advice I've gathered from other crypto communities, DCA is still more frequently applied than making large purchases at a single entry point or even going all in, which I find quite reckless. The focus should be on profit, even if it's modest, as long as it's steady, it's better.

Why not do a little of both lump sum strategy, and some DCA done in between if Bitcoin is in a price discount? But for plebs like me who have limited capital, it's probably better to buy the DIPs during bear cycles than trying DCA to sprwad their risk. We don't have the right amount of capital like the billionaires to do that.

Plus the money printers have their own 4-year cycle too. Satoshi timed it very well. 8)

https://pbs.twimg.com/media/F5PSmnhW8AA32hm?format=jpg&name=large

The best strategy to buy cryptocurrency or altcoins is buy ASAP and sell it after few minutes, hours or few days because DCA-ing altcoins will make you suffer huge losses due to many risks e.g. hacked, scam, centralized etc.

While the best strategy to buy Bitcoin is DCA-ing because Bitcoin price tend to rise every 4 years and it's good for long term holding.

I do DCA every 5 days means accumulating 6 times a month, it helps me to stay disciplined, buying not at bottom not at top but on average,
DCA help me to avoid making impulsive decisions based on fear or greed. when prices are booming everyday, it's easy to invest a lump sum and later panic selling during a downturn. DCA encourages a more measured approach, reducing the emotional rollercoaster of investing.

Spot crypto (cyrpto spot market) purchases are very suitable using DCA. This is very useful in any market situation, especially during a bearish market. When we are aiming for long-term investments, DCA is highly recommended to use.

Different from Futures, even though DCA can be used in the futures market, the risk of getting a Margin call is very high if the balance we use is not able to provide high liquidity. So the DCA method is not suitable for the futures market.

One of the ways to invest in Bitcoin is the DCA method. Investing using the DCA method will give you an incentive to invest later, because the money you want to invest in the current market will give you an incentive to invest Bitcoin later if you invest using this method. Invest when the market is down because the opportunity is there now but may not be available later. Bitcoin halving is in the future for which the current market is bearish so it is the only opportunity for holders to buy. So with a quick DCA approach to bitcoins that you hold for a long time, you will definitely own a whale of a fortune.

Bitcoin investors target big profits when the price increase reaches its highest level. It is possible that currently they continue to fill their asset list using the DCA method or by buying large amounts of money at once while waiting for the new ATH.

For my class, perhaps the DCA method is more convenient than buying large quantities at once.
Regarding large profits in a short time it may not happen with bitcoin. Usually people will not be patient with the DCA method because it is boring. Investors who have the ambition to make quick profits will prefer to take risks on shitcoins. They dare to buy large amounts of money for the desired profit. It is not uncommon for those who do this to end up losing a certain amount of money.

DCA gives people a sense of security. DCA is like a soothing playlist that you listen to over and over again. It gives you predictability in the middle of chaos. You're basically playing the long game, which is a very patient thing to do.

On the other hand, one-time investments? It's the music to a movie about a robbery gone wrong. High payoff for high risk. Remember the year? When Bitcoin's price went up and down so much? A big sum could have been like a roller coaster, making you feel either elated or sick to your stomach.

Personally? Based on how the market is right now, I'm moving toward DCA. Even though it may not be as exciting, a sense of boredom or disinterest in business can be a strength in and of itself.

DCA is a common practice by most and why? It is because it was found effective. If you can't afford to buy coins in bulk, this strategy is the best thing to consider, and much work in a volatile market.

We should be smart in dealing with the market situation because investing in crypto isn't just all about money but also, it is all about how we strategies in buying. Isn't actually bad about using a lump sum of money because even using the DCA'ng strategy if can't adjust and afford to hold when the market dumps more, we all still lose.

Even outside the cryptocurrency world, the dollar cost averaging method of investment has been proven to be one of the best method to accumulate wealth. The dollar cost averaging method is very much appreciated in anything that has to do with volatility, such as cryptocurrency or stocks. The dollar cost averaging does not only ease the investor in his investment, it also mitigate losses and then give profits at the long-run. The only thing that is expected in the dollar cost averaging method of investment is discipline and consistency.

If you are disciplined about your investment with the dollar cost averaging method, no matter how little your investment is, over time it is going to worth it. I strongly advise anyone who does not understand the chart to continue investment with dollar cost averaging method. It will give you some peace of mind and security of investment.

But for Lump Sump requires the right timing can be calculated can provide benefits in the near future, and it is far more difficult and risky if the short-term investment target that is done is not as expected at the end of the planned time, this will provide The impact of excessive depression in my opinion, and which ultimately has to hold a long bitcoin to be able to provide benefits, so it is better DCA than Lump Sum.

This is because it is influenced by mental, it is difficult to build mentality to have a large planning and shabar the occurrence of very high market fluctuations, that is what makes it difficult for someone to do it, and on average people really want fast profits, therefore they enter when the market is green.

Exactly, it's just another way of investing. Doing DCA is the best if you are afraid of not well entered properly, it's just minimizing the risk, or dividing your entry in different prices because we don't know what will happen next on the price, especially if you are cryptocurrency, it's extremely volatile where sometimes price are unexpected.

Even if you have the money for DCA I will like to advice you to invest only what you can afford to lose, many people are not telling you this, instead they will tell you to keep dollar cost averaging, and this comes with some risks too.

You can DCA and still end up with bad results, who told you that after you DCA for either a short period of time or a long period of time the market won't decline? You can target 2024 as bull run and you start DCA into your favourite assets and by the time 2024 comes something new hit the financial world.

So anything is possible when investing, that's why we need to do this with only what we can afford to lose, to avoid story that touches, also do not forget to live, investment is not a do or die, do what you can and hope for the best, remember always that health is the real wealth.  

I can see that the majority here support the DCA as a good investment strategy. Of course, there are some risks, as DCA doesn't guarantee a positive outcome and can lead to buying at an unfavourable price. Some say it's a strategy for beginners, but honestly, i think it's just good for anyone who doesn't want to drown in researching the market and emotional rollercoasters of making right or wrong decisions. It's also safer because if a person buys a lot at an unfortunate time, it's worse than buying a part at a good time and a part at a bad time.

Depends on how much risk appetite you have and how much capital you have available on hand. Let's say you have $100k ready to put in bitcoin and you are just waiting for the price to drop at the lowest possible entry point. This method could be confusing for you if the targeted entry point did not meet while the price was going down and once it started to bounce back up again, you'll either miss the dump or buy at a not so cheap price range. Both method could be confusing and of course bears risk, most people just don't want to miss the possible bottom so they are favoring the DCA method to make sure they're not missing too many of those.

According to the current market conditions which are volatile and uncertain you can't predict it or hard to it. The dollar cost strategy is good which reduces the risk involved in cryptocurrency by investing a small amount of money. Investing a small amount will protect you from affected short-term price fluctuation but using the DCA strategy you will not make more wealth but a small one. This strategy in my view is best for those who are new in the world of cryptocurrency because it can reduce the risk of losing their money as they are less knowledgeable and have zero experience but if you are a professional, skilled, and experienced one I suggest you to use Lum Sum. It requires a big investment and returns double its profit.

DCA strategy is best for every business and investment. If we buy any other physical or digital commodity other than Bitcoin whose price fluctuates all the time then there is a possibility of loss from them. so it would be very wise to follow DCA strategy. Because it always helps to minimize loss and risk. If a person does not follow DCA and invests all the money in one transaction at the same time, while it may give him quick profit, also there is a high risk of huge loss.

I think that DCA strategy is ok, since BTC investment is long term. However, the thing that matters is the sum of money affordable to invest. It depends on the income of an investor. Some people lose their chances to hodl sucesfully, since they don't invest money they could invest, while others invest much more than they can afford, and end up withdrawing money in a hurry, often during the bear market, in order to pay the debts or to fulfill their basic needs. So the main thing everyone should establish is the amount of money they can invest monthly, this should be based on their real (not illusional) financial abilities.

Dollar cost averaging is a known strategy used by Bitcoiners while investing in Bitcoin. Talking about crypto means you're generally referring to DAC as a strategy that can be used to invest in all altcoins. I think you should be specific.


DCA doesn't necessarily mean that you will only have to be investing specific amounts at your planned time, you can do it your way, depending on the cash flow, or you can equally have a shift in your allocation amount. Let's say your total earnings for the month of January were $3k, and you decided to invest $1k into Bitcoin. In the following month, if your total earnings were $5k, you could decide to invest $2k into Bitcoin. Also, let's say if you have a huge amount of money, like $50k, and you don't want to invest it all at once into Bitcoin, you could then decide to invest $1000 every week. In some weeks, you could decide to allocate more than the usual $1k or less.

This method is still widely used by traders in situations like now as well as traders who play in the spot area because it is more suitable for them to use. Apart from that, this also makes it easier for traders to manage their own capital even if it is used multiple times every week or month.

Futures is more about guessing trading signals and this is quite difficult to do and not easy for everyone so using the DCA method is not suitable, especially in conditions like now which are very uncertain so the chance of losing is always much greater than winning.

I think this is a much better approach.  Buying a bigger amount during every market dip is also the best way to maximize profit while DCA during the idle market also helps in accumulating Bitcoin without pressure on our financial capability.  This kind of strategy can maximize our profit since we are able to accumulate more during the dip which in return gives us more profit when the time comes our selling target price is met.

DCA is good and coupling it with bigger buys during dips will definitely boost our profit.

this DCA strategy has been used by traders thru the years, and the application depends on their targets here. and if it is appropriate with the situation.
futures for me requires a very good knowledge of the market you are going into. because in this market, you can easily get liquidated if you are not fast enough.

It all depends on how people take it. It is more likely for users who have the long term focus and long term target. For users who keep panicking about the market fluctuations cannot profit good through these strategies. Knowledge is must when we're into trading and the more knowledge we have more will be the success and the patience to experience the goodness.

Dollar Cost Average technique can be applied from any small amount, which is the best part of it. Not everyone understands it in this way. For people who look for short term benefits this won't give hands, if the capital isn't big

It's also very inefficient use of capital especially that we already have sufficient fundamental knowledge on Bitcoin's 4-year cycles due to the halvings, and open information from the Federal Reserve/your Central Bank's current monetary policy if they're tightening or expanding.

Common-sense says if Federal Reserve/your Central Bank is tightening = save fiat because it will become more scarce, temporarily. If the money-printer is on = buy Store of Value assets like Bitcoin. Having that said - What are the Central Banks all over the world currently doing? Is the DXY going higher or lower? It's probably better to save your salaries in U.S. Dollar for now and take advantage of DIPs WHEN the opportunity comes.

But if you have unlimited capital, then go ahead and DCA.

We are in a bear market, and that's good for those who don't have a lot of money to invest, instead of trying hard to DCA into Bitcoin every time it's better and more profitable to hunt the massive dips.

Confused? Here is an example.

I stored my money in stable coin and wait for good dips, like the first dip that happened last year, around 17k per Bitcoin, I went heavily on that, some amount that could take me four months to DCA in Bitcoin, and the second one happened when Bitcoin dips to 15k, this way I am still in profit with Bitcoin, compare to those who DCA since 30k per btc down to 25k now, it doesn't make much sense, does it?

In every bear market, let the dips be your calling, the proper time to throw in some money, like I've said already, we are still in a bear market anyways, just imagine if Bitcoin dips back to 15,000$ in this September. I will go right in again, this is the best DCA strategy.

Conclusion. In my opinion, no matter how good our trading method is, Fundametal and Technical analysis is the key to everything. DCA will function effectively if combined with appropriate and correct analysis.

DCA is always been a good strategy in any market condition as we never predict the exact bottom and exact top of the market. If we keep on waiting for the perfect top/bottom of the market, then most probably we will miss our entries and exit. So the best thing to do is to DCA both when you want to buy and also sell in the parts.

However let's take one scenario like you want to DCA in the bear market, but most people do not know where to take entries. Sometimes they take entries to close like one DCA entry for bitcoin at 30,000$, another one at 29,000$ and third one at 28,000$ and so on. If you do DCA like this, soon you will be left out of money, if bitcoin reaches 25,000$ or 20K levels. You need a plan for DCA entries too so that you should have money in hand, even if bitcoin reaches 18K or below.

Beware that not all bear markets are equal. Previous success doesnt ensure future success, right? The backdrop, regulatory changes, global economic movements, and macroeconomic indicators must be considered.

I agree that "catch a falling knife" is fun, but you must know how to manage it or you'll get cut. DCA prioritizes risk minimization above market timing. Your technique has virtues, especially for market-savvy people, but its not generally transferable. Perhaps we should encourage a balanced approach: some money in DCA and some reserved for "dip-hunting" as you say. Thoughts?

If you're using fundamental and technical analysis before you start to buy Bitcoin, it's not DCA anymore because you're looking to buy Bitcoin at the lowest or you want to make short term profit. DCA strategy is when you buy Bitcoin regularly every day(s), week(s), or month(s) regardless the price is and you're keep holding since DCA is for long term goal. If you can't do that it's fine, maybe DCA isn't for you.

Correct. We can make regular purchases every day, week or even month and that includes the DCA method. However, is the use of fundamental and technical analysis not included in DCA? In my opinion, this analysis will really help the DCA that we will carry out to maximize investment and not seem careless in purchasing coins. This is just my opinion regarding the DCA I did.

Well D.C.A.
along with buy the dip ladder down
 sell the bull ladder up
Is a three prong method that should work well.

D.C.A. alone may not be enough.

I don't really agree with you that DCA strategy does not yield much profits. From a personal experience,  DCA have remained one of the best strategy that allow me to optimise the buying process. Without DCA, most of my Bitcoin holding would have been bought around $29k because when price lingered around that zone, there was this temptation of buying through market execution in order to avoid missing out on the much anticipated bull market I was expecting to start this year. So because of DCA, most of accumulations were made at discounted price that leave my portfolio in little negative and whenever Bitcoin hits $27k now, I will be in total good profits.

I use both strategies. There's no rule in the community that say you cannot use the both of them. It is a matter of convenience.

I dollar cost average monthly and have been doing this and tracking it in an excel spreadsheet since the beginning of 2022.

I also invest lump sums  when I offer some services and the client pays in bitcoin. It is not regular.

The goal is not to make profit but to stack as much as possible until I reach my goal and also for the halving happening next year.

Isn't a bad? I think it's the best strategy when it comes to beginners trading in the market, They have very limited market knowledge so obviously the half hearted strategies are actually very flop, it's better to create parts of your total portfolio and then go for DCA, but yes DCA should only be done for either bitcoin or other major cryptocurrencies, don't do it for currencies other than top 5 or 10 because there's a good chance you are just riding a sinking ship when you are buying in again and again. also if you compare it with just buying on the spot then that's much better than that.

If a person wants to invest in the market to get some profit but has no idea about investment strategies, it can definitely cut down on their investment risk, which is the dollar cost average. Apart from this, there is another strategy, but the Dollar Cost Average Strategy is much better than this, which is the Lamp Sum Strategy. Dollar-cost average is one of the best strategies for beginners who are looking to invest in or trade ETFs. It has more advantages than Lump Sum. All over the internet, almost everyone will recommend Dollar Cost Average over Lump Sum Sum. Because its benefits are greater compared to lump sums, which are given below in points (https://www.investopedia.com/terms/d/dollarcostaveraging.asp).
Benefits of Dollar-Cost Averaging
1. Dollar-cost averaging can lower the average amount you spend on investments.
2. It reinforces the practice of investing regularly to build wealth over time.
3. It's automatic and can take concerns about when to invest out of your hands.
4. It removes the pitfalls of market timing, such as buying only when prices have already risen.
5. It can ensure that you're already in the market and ready to buy when events send prices higher.
6. It takes emotion out of your investing and prevents you from potentially damaging your portfolio's returns.

Yes, someone who feels they've purchased an asset at a higher price can implement this Dollar-Cost Averaging (DCA) scheme to lower the average cost of acquiring that BTC asset. In essence, once someone becomes adept at the DCA strategy, they can effectively manage their finances even after buying BTC at recent price peaks. However, we mustn't haphazardly purchase Bitcoin without prior thought. It still requires careful consideration and adaptation to Bitcoin's real-time conditions.

There's no longer a fear of making mistakes in buying price analysis, as DCA serves as a corrective measure. Certainly, you can achieve even greater profits when accompanied by technical analysis, such as identifying Support and Resistance levels to pinpoint the optimal timing for DCA.

A clever Bitcoin collector will combine the two options....

You do not simply buy on a regular basis, for the sake of buying.... you rather accumulate some Fiat savings and then buy bitcoins when the price are low. Why should you follow a DCA strategy that will force you to buy at regular intervals during high prices, when you can hoard your savings and buy at low prices.

The combined strategy will increase your profits, because you are buying bitcoins at low prices. (Also, sell bitcoins at high prices and then wait for it to dip to buy more coins)  ;)

Depending on your risk capacity, the strategies you can choose vary. Among these, DCA is one of the risk free and efficient strategies. I don't want to explain DCA because DCA has been explained enough on this topic. If your risk appetite is high, i can recommend a few more strategies. We are in the crypto markets to make money and with DCA we can only go so far. Smart traders shouldn't stick to one strategy and should take some risks at times.

Scalping and Day Trading strategy is one of them. It is worth remembering that Scalping and Day trading are suitable for experienced traders or investors who are willing to accept high levels of risk and have no difficulty in monitoring the market continuously. If you don't know enough about the market, don't engage in this strategy. If you are a newcomer, i would recommend the DCA and Trend strategy. One of the advantages of the Trend strategy in particular is that it is a relatively simple strategy to follow, especially for beginners. Trends are also easy to spot because they are more durable over time. In addition, trends can be detected in many different asset classes, which makes this strategy flexible.

That's exactly what I'm trying to do. You can't determine when BTC will hit the lowest point exactly, but it's always worth looking at charts and waiting for the best opportunity.

I also use that strategy because I agree with you that it is a matter of convenience. But I more often use a DCA strategy where I buy weekly or monthly, depending on my finances. And I also don't force myself if I can't buy Bitcoin this week because finances force me to use the money.

And so far, it has been going well, even though I haven't been able to collect more Bitcoins. But it has worked for me and I am still comfortable using the strategy.

And when I can't buy on a weekly basis due to financial problems, I will try to buy at the lowest price I can get. But if I can't buy Bitcoin at the lowest price, that's okay because I still have a DCA strategy for the following week.

Saving fiat and buying on drawdowns sounds very smart, and this strategy will be available to almost everyone. But when you advise selling Bitcoin at a high price and trying to buy it at a low price, then I think this may be a very difficult task for most on this forum. Since looking for levels at which it is worth selling and buying back is a complex trader’s work that requires good knowledge of technical analysis, and can ultimately lead to an inexperienced user losing more than he can gain.

Why is that not DCA if someone is doing an analysis before making a purchase? DCA is simply to buy based on an average of your capital in different price intervals, it doesn't mean that you should start buying blindly without checking the price or waiting for a lower price if you can do analysis. Someone who can do analysis can do DCA in a more effective way because they can make better predictions after the analysis and they start doing DCA at a better price.

Someone who doesn't know how to do technical or fundamental analysis should simply start buying when they see the price is relatively lower than the usual price they see in the market and even if the price drops further after they start buying, they won't have to worry since they are doing DCA and they can always buy more if price dips further.

Speaking frankly, DCA'ing might sound like the best idea to either a trader or an investor but the required technicality isn't for newbies in the space and often times newbies aren't that patient to get the rudiments of the space, which advises them on how best to navigate to make more profit than loses.

If one needs to DCA at any level, then a proper knowledge of technical analysis is required to keep one away from loses. How do you tell which is the best point to buy and /or sell when you can not read it off charts.

I’m not sure about the use of DCA for trading, perhaps only in this case if we are talking about long-term trading, but here we touch on the topic of the difference between investing and long-term trading, there are those who believe that there is no difference in this and in this case, I agree that DCA would be a good strategy for trading as well.

But for day trading there is no place to apply DCA, since this type of trading requires quick decision making, you need to quickly open and close trades, there is no time to average the entry price, because this can turn you into a long-term trader, or even worse, into a holder.

There are many investment methods and DCA is one of them, but all methods will be good and appropriate if they are supported by stable finances. Are you sure and do you feel in harmony with DCA in terms of its definition and function? because we have discussed this often, even thousands of times, so it is no stranger to hear it, especially from beginners who seem confident in DCA but the financial reality does not support it at all.

If you want to invest in Bitcoin, you don't need to just focus on DCA, that means adjusting it to our abilities, whether it's regulated regularly or not, doesn't matter. Because the main point is whether you can hold Bitcoin in the long term or not? If we talk about investment then that is the main thing you need to emphasize. Don't act as if you think you have DCA but just seeing a bearish market will make you worry and panic sell.

This is what I mean. Effectiveness in entering the market when purchasing any coin as a long-term investment. In bearish times we cannot just make purchases carelessly. We can use technical analysis if the funds we use are very limited, so that we get a purchase price that is close to perfect and have a greater chance of profit if the coin price starts to rise.

In this bearish period, with the help of proper technical analysis, you can provide an overview of the right buying area at low prices because every bearish moment is a support level which is very important to pay attention to if you are a smart DCA user.

There are many people who use that method because they find it really effective. Even I do that as long as I make money and buy cryptocurrency, knowing if there is potential for the arrival of the bull that I know and am sure will follow the lifting of Bitcoin's price.

Back in 2015, there were still many people who didn't believe in Bitcoin. That's why when Bitcoin started a bull run in 2017, they saw that with every upcoming bitcoin halving, there was actually an increase in Bitcoin, as if it had been proven and tested.

For a normal investor, and by normal I refer to someone who doesn't have any particular financial skill (like myself ;D) I think the DCA strategy is one of the best things out there: you keep investing every month, you know you won't be wasting that money buying useless stuff, and if the market goes up you're happy, if it goes down you're happy anyway because you can buy more BTC investing the same amount of money. No stress, no margins, no need to check the price every 5 minutes, I like it.

It's probably the least risky strategy for a newbie; it enables you to lower your average purchase price by acquiring coins on a steady basis. Personally, I'm not buying Bitcoin myself, but I'm receiving it on a weekly basis from my signature campaign, which can also be considered a form of DCA. I'm not too bothered by market fluctuations because my average purchase price is quite low, judging how high Bitcoin has gone in the past. Even now that the market isn't performing too well, my bitcoin's value hasn't lowered too much, and every bear market is an earning opportunity, as it's more affordable to purchase larger amounts of bitcoin.

No, that strategy doesn't mean you're less likely to make really big profits. Many people say this in hindsight knowing what the price of Bitcoin was over all those early days/years. But check out this example provided by JayJuanGee (https://bitcointalk.org/index.php?topic=5132720.msg62834866#msg62834866):


JayJuanGee also provided a link for a DCA calculator (https://dcabtc.com/?sd=2015-08-12&sda=custom&f=weekly&d=4_years&ac=48000&c=true) that you can use to play around with. There is no strict rule that says DCAing will get you less compared to investing a lump sum.  It's all about timing, and timing is about luck. With a lump sum that luck can be bad, neutral or good and the scale is veeeery large from bad to good when it comes to specific timings.


That's correct and the only hurdle to consistent DCA purchases is to become inconsistent, to deviate from the plan for reasons. Some lose interest, some think it's not going fast enough and switch to a lump sum, some forget to do it on a regular basis or prefer to go on a short vacation for the money and skip the purchase. Some buy a new iPhone and also have no money for their DCA plan, etc.


It's about preference and that preference should be in line with available resources, and the term "available" should be aligned with your financial baseline and what you have left over to spend on things that are so called investments, assets that are supposed to provide added value to your life in the future. Also, I don't really get why it is either this method or that method? Why can't someone find a sweet spot by using a lump sum and DCAing with whatever distribution the person feels comfortable with?


Worst advice I have ever read (but no worries, you are not the first to give this advice, it can be found everywhere). Second part of the last quote is correct. Accumulation through DCAing is a good choice and usually never wrong if the investor gets the portion of their income right that is truly available for investments.


A mix of both because, why not?

True. I think it's the best for the regular folks. Trading is hard and requires not only experience but something in you that not everyone has. And trying to find the best time to buy Bitcoin might take your time, nerves and sometimes you might even lose the best price because you're waiting for the better one.

It depends on the market behavior, I would prefer to go all into Bitcoin if the price fall to 10k per BTC, that's a once in a lifetime opportunity in 2023, this move is worth the risk because it will surely recover very fast from this sweet spot as many whales around the world will want to buy at the price too.

If the dip is very high then it's a big opportunity, compared to small accumulation using the DCA strategy every month or week, right now BTC is 26k and counting but it's different from seeing BTC at 10k right now.

The lowest that Bitcoin have dipped since the beginning of this bear market was 15k to 17k and anything lower seems impossible again, the worst that could happen now is retesting the base, do you see the difference now? Some risks are worth taking because of the once in a life time opportunity they creates.

Theres a flip side to this approach, often overlooked: opportunity cost. Sure, you're lowering your average purchase cost over time. Yet, you're also missing out on the potential for other investments that might offer quicker returns. Even within the cryptocurrency world, there are altcoins and tokens that could yield high returns. So, while you're safeguarding your investments, are you also stifling their potential?

Im not saying DCA is bad; its a proven strategy. But its prudent to reassess and consider a more diversified portfolio, especially if you've got a steady flow of Bitcoin coming in through signature campaigns. Thus, while DCA is safe, it may not always be the best strategy to optimize your returns.

No problem if you want a lump sum type of investing or DCA type. As long as you can afford to invest in any amount you're totally fine, there's nothing with it. The mere fact that you're thinking of a strategy for what should be your investment approach makes sense already.
Either of the two works perfectly for anybody. So, you only have to choose what's gonna work best for you.

It requires patience and better decision-making. If you're okay to lose that, you don't need any of those but no trader wants to lose so, that's why it is a serious matter that needs to be precise when you do your trades.

It will take our time because we're waiting for the most decent price that we think is best and fits our thoughts for being low and best time to buy.

Both investing at once, and DCA have pros and cons.

Not all of the people have huge money to throw immediately, and simply invest into Bitcoins that's why they are using DCA as their strategy as it requires lesser amount of money. Though I agree that doing DCA can give you lesser profits because of the fact that there might be a time where Bitcoin is going up already while you are still buying it, it's safer because if you did do lump sum, bought Bitcoin at once using all of your money, and then suddenly it went down, you will lose a lot of money, but you can earn a lot more if it goes the opposite side.

Overall, DCA is always a good strategy, and market condition don't affect that much. When we are in a bear market, you can still do it. When we are in the accumulation phase, you can still do it. When we are in the bull run, you can still do in (but it isn't advisable). If I will choose between the 2 strategies though, I prefer using DCA since it fits me, but if I have huge amounts of money, and the market conditions says that it's a good time to buy, I will definitely buy at once.

I must say that if you do not do the DCA, then either you will end up buying Bitcoin high with all your money or maybe end up not taking any position in BTC as you will keep on waiting for more low prices.

I think in a volatile currency like Bitcoin, the dollar cost average is the best way to take your entries.  There is nothing best if you know and pre-plan at which prices you will take how much entry and you need to be clear about it. This way,  on every significant price dump you will be happy to accumulate and not panic like others.

That's a good point. Certainly, DCA is not a panacea; it's an all-rounder solution that is particularly newbie-friendly; it's not the best one in terms of returns, but an average risk-to-benefit solution. The negative with DCA is that it can miss opportunities that may occur in between the two purchasing dates, such as a minor crash. Generally, altcoins and tokens offer greater yields than DCA can offer; for instance, the Cyber token on Binance made me a decent sum of money within a few days. In my opinion, DCA is a great solution for both newbies and experienced users that require an all-round solution with relatively low effort and effectiveness in the long run, depending on the coin you invest.

I agree that the signature can be considered a DCA strategy as well, at the end you get something every week (possibly the same amount), the only difference is that instead of buying with your money you're buying with the time you spent on the forum, but the result is the same.

There will always be some altcoin/token that is going to outperform bitcoin for a while, the problem is to find the right one because there are just too many. If you don't want to take too many risks (I mean losing money), just go with bitcoin and in 5 years who cares if instead of 300% you did 250%, you'll be very happy anyway. For the type of experience I've accumulated in these years I prefer a smaller return but (almost) guaranteed, no more bets for me.

Many individual had decided to be using DCA strategy because it makes investing in Bitcoin very cheap as you won't have to buy Bitcoin costly but be buying it part by part based on the amount of money you have with you monthly or weekly depending on when it suits your to buy Bitcoin. DCA is a good strategy and it doesn't make you lose making profits as you said because DCA is more profitable during the bear market and that's when we're supposed to be accumulating bitcoin.

When you accumulate bitcoin in the bear market, it make it profitable when you sell during the bull market. DCA in the bear market makes you lots of profits in the bull market. DCA has been used by many investors and it has been said to be the best investment strategy.