Buy the DIP, and HODL!

[Grace333]

Investing in the DCA method is definitely the easiest and most effective strategy, which provides the most benefits compared to other strategies. Maintain a stable investment continuity, and never worry about the price of Bitcoin. By gradually accumulating Bitcoin in small portions, a strong portfolio is created over time, and this is why the continuity of investment is most important. But you must refrain from worrying too much about the volatility of Bitcoin, because if you pay too much attention to it, you can easily get scared due to the volatility, which can lead to you making the wrong decisions. So, just keep buying regularly without looking at the price, then you will definitely have the possibility of achieving something good.

DCA is very smart way to invest in Bitcoin. Main idea of DCA is simple you invest small set amount of money regularly without worrying about price. This way you buy more when price is low and less when it is high which helps to even out your overall cost. This method works so well because it removes emotional part of investing. With always buying at steady pace you avoid making bad choices that come from fear or greed and instead of this you build strong investment over long period.

I won’t agree less, DCA is really one of the smartest ways to approach Bitcoin because it saves you from the constant stress of trying to predict the market. Most times when people try to time the perfect entry, they either end up buying too high or selling too low out of panic. With DCA, you just keep buying little by little no matter the price, and over time it averages everything out.

The best part is how it removes emotions from the game. You don’t have to sit glued to charts or worry about dips and pumps, you just stay consistent.

[ejikeme24]

DCA method isn't about safety but about the quantity of discretionary income at your disposal as an investor. If you've a large discretionary income available at the point you want to invest, then you can go ahead and lump sum and it's still financially safe. DCA provides a slow and steady approach to investing into Bitcoin and even when using DCA, if you're over aggressive in DCAing, you would not be too safe as you may not able to sustain it for long.

I feel that investing with lump sum is more recommended to those that have a steady cash flow, I can't advice anyone that does not have a steady cash flow to invest in lump even if he has enough discretionary income to buy in lump yet is not advisable especially to those newly investors. instead they should start from the DCA method so that to enable them get used to the market before they will start to figure out the strategy that can fit thier accumulation journey instead of starting with lump sum, DCA is the best strategy to start with then after you must have get to a point where you feel that the DCA is no longer working for you or maybe like a delay in your accumulation journey then you can decide to switch to lump or maybe to stick to the DCA method and be hoping to meet a buying opportunity to be more aggressive.

[Emjay24]

DCA method isn't about safety but about the quantity of discretionary income at your disposal as an investor. If you've a large discretionary income available at the point you want to invest, then you can go ahead and lump sum and it's still financially safe. DCA provides a slow and steady approach to investing into Bitcoin and even when using DCA, if you're over aggressive in DCAing, you would not be too safe as you may not able to sustain it for long.

I feel that investing with lump sum is more recommended to those that have a steady cash flow, I can't advice anyone that does not have a steady cash flow to invest in lump even if he has enough discretionary income to buy in lump yet is not advisable especially to those newly investors.

You can have a steady cashflow and at the same time not have a large discretionary income at your disposal and in such a scenario the investor cannot lump sum since his discretionary income is limited.

In lump summing, more emphasis is placed on availability of large discretionary income and not just about having a steady cashflow.

[Stormisover]

True, prediction really belongs more to traders than investors. As an investor, the main focus should just be on steady accumulation and patience. Bitcoin is too volatile for anyone to predict its exact moves, and most times people who keep trying end up either panicking or selling too early….

some people are just venturing into bitcoin investment without the Basic tools, and once you go into bitcoin investment without gathering some informations about how it works you will just be fucking around doing unnecessary things like market monitoring wasting time and later end up achieving nothing.

An investor does not need to know much before investing in Bitcoin. If he has the ability to invest for the long term, especially if he has a prudent income facility, then he can start his investment. Sometimes, spending too much time trying to acquire knowledge can exceed the limits of buying bitcoin. So if someone regularly collects Bitcoins according to his ability by doing DCA and at the same time he acquires knowledge about Bitcoin, then he will not panic. In the future, he will try to collect more Bitcoins. But when an investor tries to learn about Bitcoin without buying it, during that time, if Bitcoin temporarily falls, it can bring a big panic for him. That is why the step of buying Bitcoin should be taken first, after which a better idea about Bitcoin can be obtained.

It is not about knowing so much @Muba20 it is about some basics as @ejikeme24. However, the quality or quantity of knowledge about Bitcoin or someone's stance about Bitcoin is based on their sources of knowledge which in short or even in the long run affects and continues to affect their decision about Bitcoin.
First decision first "trader or investor or both?" these settles out what is needed and defines the direction to be taken.. There  are basic knowledge required of a trader likewise an investor after which learning can continue on the go not waiting to gather what ordinarily can be accumulated along the road.
Someone's DCA approach can be a direct reciprocal of their source of DCA mindset, as even with DCA strategy some investors are still tempted to keep timing the market.

For clarity attempting to time the market before making purchases of Bitcoin does not define DCA strategy because by definition it entails buying Bitcoin without any form of timing the market so any investor attempting to time the market before buying Bitcoin has already gotten a shift from the use of DCA to another strategy which should be the buying the dip and can no longer be considered as DCA even if he DCA from the previous buying, timing the market is not associated with the real definition of the DCA strategy and usage it doesn't tally.

[aoluain]

True, prediction really belongs more to traders than investors. As an investor, the main focus should just be on steady accumulation and patience. Bitcoin is too volatile for anyone to predict its exact moves, and most times people who keep trying end up either panicking or selling too early….

some people are just venturing into bitcoin investment without the Basic tools, and once you go into bitcoin investment without gathering some informations about how it works you will just be fucking around doing unnecessary things like market monitoring wasting time and later end up achieving nothing.

An investor does not need to know much before investing in Bitcoin. If he has the ability to invest for the long term, especially if he has a prudent income facility, then he can start his investment. Sometimes, spending too much time trying to acquire knowledge can exceed the limits of buying bitcoin. So if someone regularly collects Bitcoins according to his ability by doing DCA and at the same time he acquires knowledge about Bitcoin, then he will not panic. In the future, he will try to collect more Bitcoins. But when an investor tries to learn about Bitcoin without buying it, during that time, if Bitcoin temporarily falls, it can bring a big panic for him. That is why the step of buying Bitcoin should be taken first, after which a better idea about Bitcoin can be obtained.

It is not about knowing so much @Muba20 it is about some basics as @ejikeme24. However, the quality or quantity of knowledge about Bitcoin or someone's stance about Bitcoin is based on their sources of knowledge which in short or even in the long run affects and continues to affect their decision about Bitcoin.
First decision first "trader or investor or both?" these settles out what is needed and defines the direction to be taken.. There  are basic knowledge required of a trader likewise an investor after which learning can continue on the go not waiting to gather what ordinarily can be accumulated along the road.
Someone's DCA approach can be a direct reciprocal of their source of DCA mindset, as even with DCA strategy some investors are still tempted to keep timing the market.

For clarity attempting to time the market before making purchases of Bitcoin does not define DCA strategy because by definition it entails buying Bitcoin without any form of timing the market so any investor attempting to time the market before buying Bitcoin has already gotten a shift from the use of DCA to another strategy which should be the buying the dip and can no longer be considered as DCA even if he DCA from the previous buying, timing the market is not associated with the real definition of the DCA strategy and usage it doesn't tally.

I agree that trying to time the market to buy Bitcoin does not define DCA but it can
very much be part of the strategy to it as well as Buying the dip.

Both DCA and buying the dip are largely general terms and not an exact science,
i.e how much of a dip? qualifies for BTD we could ask or is it not ok to try and pursue
your lowest cost average?

DCA - Dollar Cost Average - if someone is so regimental as to try and time
the market when buying everytime well thats ok, they are trying to maximise their
average likewise with BTD they are trying to get the max Bitcoin for their purchase.

I dont see the point of it though if you are not willing to time the market everytime.

[G_Besar]

Investing in the DCA method is safer~~~

DCA method isn't about safety but about the quantity of discretionary income at your disposal as an investor. If you've a large discretionary income available at the point you want to invest, then you can go ahead and lump sum and it's still financially safe. DCA provides a slow and steady approach to investing into Bitcoin and even when using DCA, if you're over aggressive in DCAing, you would not be too safe as you may not able to sustain it for long.

Investors who use the DCA method more aggressively are usually those with a substantial base income, perhaps even more than their daily needs. Therefore, if such an investor wants to use the DCA method more aggressively to buy Bitcoin, I don't think it would be a problem for them, as it depends on their financial capabilities and their desire to own a large amount of Bitcoin in a relatively short time. Therefore, we must consider the person implementing the strategy so that we don't assume everything is the same for everyone. The way people with a large income and those with a modest income will certainly differ greatly in their approach to investment methods, including the DCA method you're discussing.

[JayJuanGee]

so we would not consider things like age when it comes to buying and accumulating bitcoin,

Age can only be a threat to those Investors that can't make direct purchase, I noticed that some people are not familiar with online purchase. Instead they prefer making thier purchase through bitcoin ATM, and if they don't care to learn, some day they will get to a certain stage were they won't have the strength to be going to the bitcoin ATM as they used to when they have not come to aged. in this case they can just consider it as the end of thier accumulation journey, but those who are familiar with the online purchase will not be affected. However i think the best way is  to start bitcoin accumulation on time so that before we would get to the stage where we will be facing any of this challenges  then we must have reach our investment goal or the stage of overaccumulation.

I believe age here is pointing to health
In my view, age shouldn't in any way affect investment. Things happens (as in surprises/unexpected). To a point as long as someone still has common sense, investment in Bitcoin can continue no matter the age. The issue of using Bitcoin ATM or online purchase is not something that matters so much since they both offer the same result. Come to think of it, what could be the reason why some people are bent on Bitcoin ATM purchase? Could it be because of fear of fraud?
Bending on Bitcoin ATM use is for sure location based, this ATM is not rampant as normal ATMs. So someone who has it located around is tbe one who would be bent on using it, if not the importance of learning how to purchase online already speaks louder.
As for age, surprisingly an elder of say 65 years could still in the next 10 years have what it takes to go to Bitcoin ATM to purchase while a youth of 35 years can not..
Note; aside being located around Bitcoin ATM, incorporation of both purchase means is paramount irrespective of age. Not forgetting the privacy and comfort of the online purchase.
As aged and or unhealthy person, there might be other measures to keep up with investment in Bitcoin. Very hard but it could be possible to have someone who would assist in that regard. Someone who will help in purchasing whether online or using Bitcoin ATM.
Also like you pointed out @ejikeme24 "reaching investment goal" settles the matter.

You seem to be superficially addressing the age factor, since it is quite likely that a 35 year old and 65 year old is not going to be in the same position in terms of income they are earning or able to earn, and they may well also not be in a similar position in regards to how much they have saved up.  So of course age is a factor that needs to be accounted for, along with the other individual factors.

If a person concludes that he has at least a 4 year time horizon for investing into bitcoin, then surely that would be a factor.  The 35 year old may invest from income, yet the 65 year old might reallocate from some other investment that he has.

If a 65 year old is building his investment over 4 years, then when he turns 69 (or 4 years down the road) the earlier invested amounts would be ready for potential withdrawal but the later invested amounts would not have had reached a 4 year investment timeline, yet, and every new investment into bitcoin needs to have a 4-10 year or more timeline in order to be an investment rather than a trade.  Personally, I recommend against trying to trade bitcoin.

[edited out]

I agree that trying to time the market to buy Bitcoin does not define DCA but it can
very much be part of the strategy to it as well as Buying the dip.

Both DCA and buying the dip are largely general terms and not an exact science,
i.e how much of a dip? qualifies for BTD we could ask or is it not ok to try and pursue
your lowest cost average?
DCA - Dollar Cost Average - if someone is so regimental as to try and time
the market when buying everytime well thats ok, they are trying to maximise their
average likewise with BTD they are trying to get the max Bitcoin for their purchase.

I dont see the point of it though if you are not willing to time the market everytime.

Anyone can mix and match buying strategies at any time based on their own cashflow particulars and their other personal factors, even though there may be a bit more of a preference for newbies to invest regular, such as weekly, but there is nothing stopping them from lump summing with money that they might already have or even lump summing at any time that additional money might come in.

Buy the dip might not be as preferred for beginners, since it has a tendency to allow for waiting, which might not be a good idea, unless decently large amounts had already been invested.  Each person has to decide what they consider to be a decently large position. 

I can see that you are a bit concerned about your average cost per BTC, aoluain.   Yet if you have been accumulating bitcoin for 4 years in a steady way then your average cost per BTC should be around the 200-WMA, which surely the BTC spot price tends to stay above the 200-WMA.. yet at the same time, the longer that you are accumulating, then the 200WMA is likely to be moving up faster than your average price per BTC is rising.  In other words, the longer you are accumulating BTC, it is likely that your average cost per BTC is becoming lower and lower relative to the rate that the 200-WMA is going up  (and relative to BTC's spot price too).

Of course, you, aoluain, have already been registered on the forum since early 2017, so you might have had already had plenty of chances to build up your BTC stash over the past 8.5 years, but if a person is newer to bitcoin, they may be trying to accumulate at any way that they can, and they cannot be sure if there is going to be a dip or not, so they might consider that it is better to just keep accumulating regularly rather than waiting for dips that might not end up happening.

Yet, even a person with a $30k income who had been $100 per week for the past few months might start to think that it could be to their advantage to buy some more bitcoin with some savings that they have or maybe they receive some kind of bonus pay that allows them to consider their options.   If they receive $2,500 in bonus pay, then all of a sudden they have right around 6 months worth of their DCA that they could put in right away, or maybe they consider if they will defer by time (DCA) or defer by price (buying the dip).  These are not easy choices, even though the newbie migh prefer to invest more of his bonus amount sooner rather than deferring... and perhaps once he had been investing a year or two, then maybe at that point he might consider letting off (or slowing down) or employing strategies that might involve deferral rather than buying right away as his money comes available. 

I have even projected out a variety of possible income scenarios, even so aggressive as a person investing 25% of his income into bitcoin, and even in those cases, the person still might want to accumulate at that same rate (if they can keep it up) for at least 2 full cycles..  yet at the same time, people choose differently, and if someone does not have any other investments (besides bitcoin and cash) then they may well want to buttress up their investment into other things, and perhaps start to feel that they have enough in bitcoin once they had invested a year's of their income into it (after 4 years for the person investing 25% per year).  It is not easy for guys to invest 25% per year, so sometimes they just want to let off so that they are not stressing themselves out so much with how much they are putting into bitcoin as compared with other places that they could be putting money..

[Sonia_123]

Bitcoin price cannot be predicted, of course there’s been so much speculation concerning the upward and downward movements of bitcoin prices and for sure people can only speculate about this upward and downward movement of bitcoin but none can predict exactly what the price of bitcoin is or will be at any given time. You can only speculate but still can’t predict it. The singular fact that bitcoin is a highly volatile asset should be enough reason to tell us that bitcoin price can not be predicted because it  keep changing at almost every seconds, it doesn’t standby one place. As a long term investor or rather Bitcoin investors we can only live with the conviction or believe that the price of bitcoin will continue to go up even if it goes down at some point in time. Anyone trying to predict the price of bitcoin is wasting his or her time and most of these people are traders who came in for a quick profit making mindset and they get so emotional at any price downturn which I will advise to refrain before they get heart attack one day. Is advisable as long term investors to focus more on figuring out just a discretionary income to consistently accumulate bitcoin and hold for the long term goal and build up our portfolio instead of trying to predict market prices.

Yes, I agree with your assumption, but is it true that you're relying solely on faith when investing in Bitcoin without researching the asset's potential? I believe it's those who rely solely on faith who are doing less well when investing in Bitcoin. In investment, we must be able to analyze the assets we're going to buy and hold for the long term, and Bitcoin is no different. After all, Bitcoin is an investment asset, and relying solely on faith won't be enough to hold Bitcoin long-term. Basically, when we talk about psychology, our faith tends to be stronger when we've researched an investment asset. By conducting research or analysis, we'll no longer feel uncertain about the assets we hold. So, predicting Bitcoin prices doesn't necessarily mean becoming a trader, especially as I've already stated that I only predict Bitcoin prices in the long term and do it to motivate myself. So, in essence, we need to be more flexible in responding to other people's assumptions.

I just feels like having faith alone isn't enough, what I think that may spur or convince investors to invest in bitcoin is it history and it growth potential that still lies ahead, because according to statistics, in the past ten years Bitcoin was the best appreciating asset if you compared it to gold, real estate and the rest, so their is a stronger conviction to invest in bitcoin now than even before, so history and it potential in what lies ahead is what most investors are looking at before investing in bitcoin not just faith.

Also your mindset, focus and courage also determines your strength in investing in bitcoin, because bitcoin is a risky investment which we don't know the next direction it will go and so self determination also matter s alot because if you are not focused you lose track of what you tend to achieve in bitcoin investment irrespective of how hard you may work to achieve success along the line, and that is why you need  to forget about reasoning about the price rise and fall in bitcoin or waiting for the dip before purchasing bitcoin because dca with your discretionary income gives you the best way of front loading your investment anytime and anyhow you want it to be in as much there is a source of income be it monthly , part-time or occasionally that waiting for a huge fund before investing.

[bestcandy]

Investing in the DCA method is definitely the easiest and most effective strategy, which provides the most benefits compared to other strategies. Maintain a stable investment continuity, and never worry about the price of Bitcoin. By gradually accumulating Bitcoin in small portions, a strong portfolio is created over time, and this is why the continuity of investment is most important. But you must refrain from worrying too much about the volatility of Bitcoin, because if you pay too much attention to it, you can easily get scared due to the volatility, which can lead to you making the wrong decisions. So, just keep buying regularly without looking at the price, then you will definitely have the possibility of achieving something good.

DCA is very smart way to invest in Bitcoin. Main idea of DCA is simple you invest small set amount of money regularly without worrying about price. This way you buy more when price is low and less when it is high which helps to even out your overall cost. This method works so well because it removes emotional part of investing. With always buying at steady pace you avoid making bad choices that come from fear or greed and instead of this you build strong investment over long period.

I won’t agree less, DCA is really one of the smartest ways to approach Bitcoin because it saves you from the constant stress of trying to predict the market. Most times when people try to time the perfect entry, they either end up buying too high or selling too low out of panic. With DCA, you just keep buying little by little no matter the price, and over time it averages everything out.

The best part is how it removes emotions from the game. You don’t have to sit glued to charts or worry about dips and pumps, you just stay consistent.

You guys are perfectly correct. DCA is actually the best method to invest in Bitcoin especially for those of us that are low income earners and are still coming up in the system but it has to be with consistency.
It's a wrong investment decision to wait for the price to get low before investing because the volatility of Bitcoin make it very difficult to accurately predict the price so instead of waiting to invest when the price is low it will be more better to consistently invest by DCA regardless of the price and by so doing there is high tendency of having a reasonable volume of Bitcoin in the near future.

[woez]

You guys are perfectly correct. DCA is actually the best method to invest in Bitcoin especially for those of us that are low income earners and are still coming up in the system but it has to be with consistency.
It's a wrong investment decision to wait for the price to get low before investing because the volatility of Bitcoin make it very difficult to accurately predict the price so instead of waiting to invest when the price is low it will be more better to consistently invest by DCA regardless of the price and by so doing there is high tendency of having a reasonable volume of Bitcoin in the near future.

Of course, those who have implemented this method are considered intelligent and astute, as they no longer care about pursuing short-term profits but instead focus on the long term. Of course, no one wants to miss a market rally when they see a coin's price rise, but the average person has to monitor it, and it's quite a hassle, staring at the screen constantly to avoid getting caught up, as even the slightest movement can quickly lead to a decline.

In my opinion, psychological factors still play a crucial role in maintaining enthusiasm for long-term investing using the DCA technique. This allows one to learn to resist panic, avoid the temptation to sell due to FOMO, and avoid expecting a severe market drop, even during a bear market. Regardless, the final outcome of buying using the DCA model still wins, even if it varies. If we average each purchase transaction, it automatically lowers our average cost.

[Belarge]

Investing in the DCA method is safer than investing a large sum at a time and it reduces mental stress. The DCA method is more effective for ordinary people who have limited monthly income and limited risk-taking capacity. Here they can gradually build a significant portfolio by continuing to invest small amounts. And in this way they move forward on the path to financial freedom in the long term.

DCA method isn't about safety but about the quantity of discretionary income at your disposal as an investor. If you've a large discretionary income available at the point you want to invest, then you can go ahead and lump sum and it's still financially safe. DCA provides a slow and steady approach to investing into Bitcoin and even when using DCA, if you're over aggressive in DCAing, you would not be too safe as you may not able to sustain it for long.

DCA method is typically made for people to be able to invest in bitcoin regardless of their financial strength and mostly for people who could barely have something left as discretionary funds because this method helps you buy and hold regardless of the price and condition of the market.

[Tungbulu]

so we would not consider things like age when it comes to buying and accumulating bitcoin,

Age can only be a threat to those Investors that can't make direct purchase, I noticed that some people are not familiar with online purchase. Instead they prefer making thier purchase through bitcoin ATM, and if they don't care to learn, some day they will get to a certain stage were they won't have the strength to be going to the bitcoin ATM as they used to when they have not come to aged. in this case they can just consider it as the end of thier accumulation journey, but those who are familiar with the online purchase will not be affected. However i think the best way is  to start bitcoin accumulation on time so that before we would get to the stage where we will be facing any of this challenges  then we must have reach our investment goal or the stage of overaccumulation.

I believe age here is pointing to health
In my view, age shouldn't in any way affect investment. Things happens (as in surprises/unexpected). To a point as long as someone still has common sense, investment in Bitcoin can continue no matter the age. The issue of using Bitcoin ATM or online purchase is not something that matters so much since they both offer the same result. Come to think of it, what could be the reason why some people are bent on Bitcoin ATM purchase? Could it be because of fear of fraud?
Bending on Bitcoin ATM use is for sure location based, this ATM is not rampant as normal ATMs. So someone who has it located around is tbe one who would be bent on using it, if not the importance of learning how to purchase online already speaks louder.
As for age, surprisingly an elder of say 65 years could still in the next 10 years have what it takes to go to Bitcoin ATM to purchase while a youth of 35 years can not..
Note; aside being located around Bitcoin ATM, incorporation of both purchase means is paramount irrespective of age. Not forgetting the privacy and comfort of the online purchase.
As aged and or unhealthy person, there might be other measures to keep up with investment in Bitcoin. Very hard but it could be possible to have someone who would assist in that regard. Someone who will help in purchasing whether online or using Bitcoin ATM.
Also like you pointed out @ejikeme24 "reaching investment goal" settles the matter.

You seem to be superficially addressing the age factor, since it is quite likely that a 35 year old and 65 year old is not going to be in the same position in terms of income they are earning or able to earn, and they may well also not be in a similar position in regards to how much they have saved up.  So of course age is a factor that needs to be accounted for, along with the other individual factors.

If a person concludes that he has at least a 4 year time horizon for investing into bitcoin, then surely that would be a factor.  The 35 year old may invest from income, yet the 65 year old might reallocate from some other investment that he has.

If a 65 year old is building his investment over 4 years, then when he turns 69 (or 4 years down the road) the earlier invested amounts would be ready for potential withdrawal but the later invested amounts would not have had reached a 4 year investment timeline, yet, and every new investment into bitcoin needs to have a 4-10 year or more timeline in order to be an investment rather than a trade.  Personally, I recommend against trying to trade bitcoin.

I totally agree with you that age has the potential to change the whole approach to investing in Bitcoin. A younger investor has the luxury of having a steady income, plus a longer runway, which isn’t always the same for older investors, because they usually won’t have to rely on their future earnings but would rather alternatively think about reallocating from their existing assets. This factor alone changes the whole approach, even if they’re both targeting the long term or committed to a 4+ years horizon.

The factor that is often overlooked in the equation is liquidity needs and risk tolerance. For instance, the main question for someone who’s in their 60s isn’t whether they can hold bitcoin for 4-10 years, but rather whether they can comfortably ignore the markets volatility without jeopardizing their retirement funds. It’s a lot more easier for a younger investor to ride out 70% drawdowns without much stress, which is a very different psychological and financial challenge for someone who is already in retirement.

Another key factor here is diversification. A younger person who’s still around his 30s can go heavier into Bitcoin due to the fact that he’s still got decades of earning potential ahead of him to help him balance out mistakes, while someone in his 65-ish year old may consider balancing bitcoin with assets that generates predictable income. Most of the times, it’s really not about the approach that’s better than the other, but more about tailoring the allocation to the individual’s stage of life.

I also completely agree with the point that each new Investment should be thought of as starting its own time clock. Having this kind of mindset could potentially help folks get rid of impatience and the idea of Bitcoin being treated as a short term trade.

[Tamaperdana]

Investing in the DCA method is safer than investing a large sum at a time and it reduces mental stress. The DCA method is more effective for ordinary people who have limited monthly income and limited risk-taking capacity. Here they can gradually build a significant portfolio by continuing to invest small amounts. And in this way they move forward on the path to financial freedom in the long term.

DCA method isn't about safety but about the quantity of discretionary income at your disposal as an investor. If you've a large discretionary income available at the point you want to invest, then you can go ahead and lump sum and it's still financially safe. DCA provides a slow and steady approach to investing into Bitcoin and even when using DCA, if you're over aggressive in DCAing, you would not be too safe as you may not able to sustain it for long.

I don't think the best way to describe the benefits of DCA is to make investing safer, but rather, to make buying bitcoin with DCA more comfortable. Essentially, DCA allows us to invest in bitcoin even if we don't have much discretionary funds. So, with that in mind, I believe DCA is a truly unique buying strategy. As for aggressive DCA practices, I don't think that's a big deal, as long as the money used is discretionary. As long as you're investing in bitcoin with discretionary funds, I don't think being aggressive is a problem. Investing in bitcoin with borrowed money, necessities, or even spare cash, in certain situations, is not a good idea. So, in addition to DCA, we should also use discretionary funds to invest in bitcoin.

[aoluain]

[edited out]

I agree that trying to time the market to buy Bitcoin does not define DCA but it can
very much be part of the strategy to it as well as Buying the dip.

Both DCA and buying the dip are largely general terms and not an exact science,
i.e how much of a dip? qualifies for BTD we could ask or is it not ok to try and pursue
your lowest cost average?
DCA - Dollar Cost Average - if someone is so regimental as to try and time
the market when buying everytime well thats ok, they are trying to maximise their
average likewise with BTD they are trying to get the max Bitcoin for their purchase.

I dont see the point of it though if you are not willing to time the market everytime.

Anyone can mix and match buying strategies at any time based on their own cashflow particulars and their other personal factors, even though there may be a bit more of a preference for newbies to invest regular, such as weekly, but there is nothing stopping them from lump summing with money that they might already have or even lump summing at any time that additional money might come in.

Buy the dip might not be as preferred for beginners, since it has a tendency to allow for waiting, which might not be a good idea, unless decently large amounts had already been invested.  Each person has to decide what they consider to be a decently large position. 

I can see that you are a bit concerned about your average cost per BTC, aoluain.   Yet if you have been accumulating bitcoin for 4 years in a steady way then your average cost per BTC should be around the 200-WMA, which surely the BTC spot price tends to stay above the 200-WMA.. yet at the same time, the longer that you are accumulating, then the 200WMA is likely to be moving up faster than your average price per BTC is rising.  In other words, the longer you are accumulating BTC, it is likely that your average cost per BTC is becoming lower and lower relative to the rate that the 200-WMA is going up  (and relative to BTC's spot price too).

Of course, you, aoluain, have already been registered on the forum since early 2017, so you might have had already had plenty of chances to build up your BTC stash over the past 8.5 years, but if a person is newer to bitcoin, they may be trying to accumulate at any way that they can, and they cannot be sure if there is going to be a dip or not, so they might consider that it is better to just keep accumulating regularly rather than waiting for dips that might not end up happening.

Yet, even a person with a $30k income who had been $100 per week for the past few months might start to think that it could be to their advantage to buy some more bitcoin with some savings that they have or maybe they receive some kind of bonus pay that allows them to consider their options.   If they receive $2,500 in bonus pay, then all of a sudden they have right around 6 months worth of their DCA that they could put in right away, or maybe they consider if they will defer by time (DCA) or defer by price (buying the dip).  These are not easy choices, even though the newbie migh prefer to invest more of his bonus amount sooner rather than deferring... and perhaps once he had been investing a year or two, then maybe at that point he might consider letting off (or slowing down) or employing strategies that might involve deferral rather than buying right away as his money comes available. 

I have even projected out a variety of possible income scenarios, even so aggressive as a person investing 25% of his income into bitcoin, and even in those cases, the person still might want to accumulate at that same rate (if they can keep it up) for at least 2 full cycles..  yet at the same time, people choose differently, and if someone does not have any other investments (besides bitcoin and cash) then they may well want to buttress up their investment into other things, and perhaps start to feel that they have enough in bitcoin once they had invested a year's of their income into it (after 4 years for the person investing 25% per year).  It is not easy for guys to invest 25% per year, so sometimes they just want to let off so that they are not stressing themselves out so much with how much they are putting into bitcoin as compared with other places that they could be putting money..

Ah no J, I'm not concerned at all about my average cost. I have never been able to read charts to
forecast market shifts. I keep an eye not regularly on the MACD and RSI charts when I am
ready to make another purchase. Personally I know its really difficult to time the market so I dont
really. Take today for example the market has dropped again to $112k from $116 yesterday so I
am getting really close to a buy point, I wont loose sleep if I miss the bottom or it it falls further
after I buy because I know in the long term I really doesnt make much of a difference.

But I am sure there are people who might be obsessed with trying to time the market which is ok,
I can understand they would like to get the "biggest bang for their buck"
I just cant dedicate the time and effort to do it myself, I have never dedicated the time to do it
that way.

2016 was when I got my first Bitcoin and all the subsequent buys through 2017 I couldnt tell you at
what Price and if it was when the market was up or down, It doesnt matter to me 8 years later.

[Taskford]

Investing in the DCA method is definitely the easiest and most effective strategy, which provides the most benefits compared to other strategies. Maintain a stable investment continuity, and never worry about the price of Bitcoin. By gradually accumulating Bitcoin in small portions, a strong portfolio is created over time, and this is why the continuity of investment is most important. But you must refrain from worrying too much about the volatility of Bitcoin, because if you pay too much attention to it, you can easily get scared due to the volatility, which can lead to you making the wrong decisions. So, just keep buying regularly without looking at the price, then you will definitely have the possibility of achieving something good.

DCA is very smart way to invest in Bitcoin. Main idea of DCA is simple you invest small set amount of money regularly without worrying about price. This way you buy more when price is low and less when it is high which helps to even out your overall cost. This method works so well because it removes emotional part of investing. With always buying at steady pace you avoid making bad choices that come from fear or greed and instead of this you build strong investment over long period.

I won’t agree less, DCA is really one of the smartest ways to approach Bitcoin because it saves you from the constant stress of trying to predict the market. Most times when people try to time the perfect entry, they either end up buying too high or selling too low out of panic. With DCA, you just keep buying little by little no matter the price, and over time it averages everything out.

The best part is how it removes emotions from the game. You don’t have to sit glued to charts or worry about dips and pumps, you just stay consistent.

What make DCA became one of the most effective strategy is it can help people to lessen up the pressure brought up by volatile movement of Bitcoin.

It can also teach good discipline to those investor to follow their plans and with this can also get away with those FOMO and other thing that can cause them panic since DCA lessen up the weights brought up by sudden market movements.

This strategy is also good for Bitcoin believers/investors who want to build their portfolio without waiting for perfect time to accumulate.

[Joy- maker]

Investing in the DCA method is safer than investing a large sum at a time and it reduces mental stress. The DCA method is more effective for ordinary people who have limited monthly income and limited risk-taking capacity. Here they can gradually build a significant portfolio by continuing to invest small amounts. And in this way they move forward on the path to financial freedom in the long term.

DCA method isn't about safety but about the quantity of discretionary income at your disposal as an investor. If you've a large discretionary income available at the point you want to invest, then you can go ahead and lump sum and it's still financially safe. DCA provides a slow and steady approach to investing into Bitcoin and even when using DCA, if you're over aggressive in DCAing, you would not be too safe as you may not able to sustain it for long.

DCA method is typically made for people to be able to invest in bitcoin regardless of their financial strength and mostly for people who could barely have something left as discretionary funds because this method helps you buy and hold regardless of the price and condition of the market.

this is not the correct way to describe DCA strategy you are mixing things up which is not making sense. DCA strategy allow us to purchase bitcoin regardless of the condition's, and for me DCA is best strategy for both newbie investors and old investors, Because DCA promote consistency. secondly it is necessary you figure out if you have discretionary income or not before you can accumulate bitcoin, because it's not advisable to accumulate bitcoin with money meant for settling your basic needs and expenses so always remember that you are to purchase with bitcoin with only leftover money and not otherwise. Accumulating bitcoin with money meant for settling your basic needs and expenses may lead to selling off your bitcoin investment at early stage of accumulation.

[Butterfan]

Before investing in Bitcoin, you need to know that no one can ever predict Bitcoin. Because no one knows about the Bitcoin cycle. But a trader can determine the price. Invest patiently by holding according to your investment plan. Never lose your valuable investment by panicking about the future. No one knows the exact movement of Bitcoin, so you should not worry too much about these. Because you can make wrong decisions due to price volatility and price movement.

Only those who do Ponzi schemes or traders in Bitcoin make predictions. Without paying attention to these, you can just continue investing patiently for the long term. You may benefit from the investment in the future. Unless you lose your investment.

It is unusual for Bitcoin predictions to be 100% accurate all the time, so the fact that no one knows the Bitcoin cycle sounds a bit confusing. Because everyone knows the halving cycle of at least 4 years, and it has been seen in the history of Bitcoin that it has a big impact on the price. Therefore, even if no one can say exactly how much Bitcoin will be in the future, the existence of this cycle cannot be denied. Therefore, without being too afraid of the price falling or rising, investing a certain amount of money regularly every week or month is the right investment decision, no matter how much the price rises or falls. DCA solves this problem. In this way, buying assets at an average price is the most effective strategy for beginners.

It is true that nobody can be certain about the short term movements because market is very volatile and the factors affecting it are numerous. Nevertheless, a halving cycle every 4 or so years is a proven fact that has long been associated with major price changes. This cycle mitigates inflation of the supply of Bitcoin, which is likely to exert an upward price pressure over time.

With that said, we can make emotional choices and suffer losses, basing them on accurate timing or predictions. With the DCA strategy that you have mentioned, it has been demonstrated that this strategy assists in ironing out volatility as a result of purchasing over time. It eliminates the threat of reaching a market at the point of saturation and suits a long-term mentality,  and you cannot know how prices will be, but knowing the half-life helps create a more contextually informative viewpoint, and putting the two together (e.g. with intelligent investing techniques such as DCA can create a superior, more relaxing way to invest.

[As-Soon-As]

For clarity attempting to time the market before making purchases of Bitcoin does not define DCA strategy because by definition it entails buying Bitcoin without any form of timing the market so any investor attempting to time the market before buying Bitcoin has already gotten a shift from the use of DCA to another strategy which should be the buying the dip and can no longer be considered as DCA even if he DCA from the previous buying, timing the market is not associated with the real definition of the DCA strategy and usage it doesn't tally.

Listen, the DCA method is not that it has to be correct from time to time, according to the DCA method, we understand that this will happen only if the purchase of Bitcoin is regular. You may have some gaps, so we will not give much importance to it, we will give importance to the purchase of Bitcoin. If we buy Bitcoin weekly, we will buy Bitcoin regularly on a weekly basis so that we can buy Bitcoin four times a month and add it to the main holding.
Because we have to keep in mind that if we invest according to the DCA method, my investment is constant, and saving on the purchase price is created, this is my most significant point.

[Jostern]

DCA method isn't about safety but about the quantity of discretionary income at your disposal as an investor. If you've a large discretionary income available at the point you want to invest, then you can go ahead and lump sum and it's still financially safe. DCA provides a slow and steady approach to investing into Bitcoin and even when using DCA, if you're over aggressive in DCAing, you would not be too safe as you may not able to sustain it for long.

I feel that investing with lump sum is more recommended to those that have a steady cash flow, I can't advice anyone that does not have a steady cash flow to invest in lump even if he has enough discretionary income to buy in lump yet is not advisable especially to those newly investors.

You can have a steady cashflow and at the same time not have a large discretionary income at your disposal and in such a scenario the investor cannot lump sum since his discretionary income is limited.

In lump summing, more emphasis is placed on availability of large discretionary income and not just about having a steady cashflow.

I don’t think it’s necessary for you to lump sum, when you know full well that you don’t have enough discretionary income, DCA is quite an efficient strategy in this situation that is why it’s more advisable to choose a specific strategy that could absolutely work out for you, if you have a steady cashflow and you end up not having enough discretionary income, then I will advise you look into your expenditure and your weekly or daily expenses and try working on them, and also adjust where you feel you can adjust to your expenses accordingly.

However when you want to lump sum, you should quite look carefully if you have the amount of discretionary income to appreciate lump summing, either way if you feel uncomfortable you could actually do a little more by buying a DCA, which could be more affordable for most newbies and beginners, some folks even have the ability to lump sum but still choose to go tremendously over with DCA because they feel comfortable with it.

[IceLincoln]

One major thing i took note of about your statement is that everything in life has it's benefits and disadvantages, although the DCA is the best strategy for managing risks in Bitcoin investment but it still has it's own down side which is that someone that's not commited to tasks would find it difficult to invest with it since it's something that should be done consistently according to the period the investor can regenerate their discretionary be it weekly or monthly but in general the DCA is more positive than negative when it comes to Bitcoin investment, one thing i love about the DCA is that it helps an investor to invest consistently regardless of market volatility.

You made some solid good point here. Like I used to say, there isn't any strategy that is bad to invest in Bitcoin. Both buying on dips, DCA and lump sum are  all good strategies, but the choice of strategy must align with your investment goals. If it doesn't align with your goals that is where it becomes a wrong strategy that you use.

There are many people that invested using DCA and they are successful, while others used lump sum and occasionally buying on dips yet they are successful. On a normal day the strategy doesn't really matter but how you utilizes these strategies to your own advantage is what truly matter.

You’re right, I think every strategy is quite different and simple, but you have to choose which approach will suit our investment plans depending on the amount of discretionary income that we can usually have in a weekly or monthly basis, right now I understand there are people who are buying the DCA and are doing very well, and there are people who are also buying through the lump sum and are also doing very spectacular, I think people also try to buy the dip by waiting for the dip which I think from my own experience it’s not a very good strategy of buying bitcoin, but buying the dip when the opportunity presents itself and still keep buying on a regular basis which I think it’s the perfect way.

So all strategy are just magnified but it all depends on our ability to stay consistent.

Yes there are no bad strategy in investing what might be wrong is how we utilise or approach these strategies, the DCA, the lump sum and the buy the dip method are all effective ways of accumulating bitcoin. A situation where an individual uses DCA but is not consistent it becomes a wrong move or a situation where a no coiner or low coiner decides to wait for the dip before he/she can start buying it’s a wrong move, it’s better to in the game than be on the sidelines waiting for dip… These methods are here to enable us accumulate more bitcoin according to our capabilities.
A good or best approach involves a mix of all strategies to give an efficient and effective result.

Bitcoin might be a mere investment for some of you, an investment that you might sell later. But let me tell you that Bitcoin has larger implications in the world. It's built for something bigger.

In Nepal, during the recent toppling of the previous regime, the protesters started using Bitcoin as a statement saying that the banks can't be trusted, that politicians can't be trusted.

If you truly want to sell, then sell. BUT, my fellow plebs, do HODL some for your own good.

Absolutely true what you’re saying and what they’re protesting in Nepal. Bitcoin has evolved into something greater than what it was initially made for and you can see the evidence, even the Governments of the world are wanting a piece of it since they can’t control it, they’ve tried.
In my country the number of charges and VATs paid in using traditional banks is alarming, so truly the banks have betrayed us, they’re being used by the politicians. Evidently Bitcoin is a gate to Financial Freedom and we should plan to HODL for a long term.