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If you continue to do it consistently for at least 4 years then it's quite clear that allocating only $10 / week or month is quite a lot when calculated over the next 4 years, and of course I think you will feel a sense of satisfaction when the time comes. The point is that this is not the end of your investment approach through DCA, because there are still many ways of adjusting that still seem reasonable to do, I hope they can still consider it perfectly when they are in such a position, and also of course to make a decision that they can be sure that it is the most appropriate.
I think that it bears repeating that even if someone were to invest $10 per week for 4-10 years and then feel that s/he had reached his/her accumulation goal, at that time the transition would not be to just cash out and say "I made it; I have more options, now." Instead the transition would more likely go into some kind of a maintenance stage that might involve less investing and then maybe even cashing out some from time to time.. so the maintenance stage could last a decently long time, depending on a person's age, and once the person reaches such maintenance stage, s/he can devise strategies around spending bitcoin from time to time and perhaps strategies that might involve regularly cashing out 1-4% of his her BTC stash per year at various times, and the amount cashed out may well depend on BTC price performance.
Once a person reaches such stage, the size of the stash and various other personal particulars will help to dictate various ways to deal with the stash and to enjoy the fruits of having more options.. and surely maybe even spending 4-10 years building the BTC stash might start to already show that options are increasing along the way, and changes to the amount invested could be tailored in order to account for how the changes in options are playing out.
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It generalises the word, its not specific on the particular terminology to use to make his or her expression to be comprehensive, ..........
You make a lot of good points in your post Riginac111 - however there were several points in which you seemed to have had messed up the quotes, and there were at least two places that I was reading my own words, even though they appeared as if they were your words... so that is a mistake that comes from messing up the quotes.
Sometimes with quotes, we want to try to quote smaller portions of the earlier post in order that we make sure that the quotes come out correctly, and I know that I will sometimes also quote long sections of someone else's post - especially if I might be commenting on the whole thing... but in any case, my point is that sometimes it gets confusing if the quotes get mixed up, then it can become unclear which part you said and which part someone else said.. and even who said what?
Jay's opinion is the best at the moment to encourage us to invest wisely, because investing without knowledge and also having a target is just a gambling activity.
why is the DCA concept highly recommended to every bitcoin investor because that way you have full control over the money you make, for example every month you make $1k from the work or business you do and you invest $300 or $400 every month to buy bitcoin, so you still have around 65% of the money you earn left, you can use it for your daily needs and set aside a little for your emergency fund, however, this emergency fund is what you can use later for urgent expenses, so you don't sell Bitcoin that you invested so far.
Here is Bitcoin DCA calculator
https://dcabtc.com/ that tells how much you will earn if you accumulate Bitcoin in DCA manner for specific period of time. For instance, if we invest 10$ in bitcoin on weekly basis for last one year then after one year we will get
6.52% profit. While investing 10 dollars in bitcoin on weekly basis for last 2 years will give you
-11.15 loss.
Whoaza MusaPk... You should be careful in the way that you describe that DCA calculator.
It is not showing you results that you can expect to get, but instead it is showing you results that you would have had gotten if you had DCA'ed in the way that you input into the various fields that are contained therein.
So surely past results are likely not going to be the greatest in terms of projecting what might happen in the future.. so we need to be careful in terms of describing past results in that kind of a way.
Don't get me wrong.. DCA is likely amongst the best, if not the best method to accumulate BTC for an overwhelmingly large number of normies, and BTC is likely among the best, if not the best, asset to be investing into, especially if you have a 4-10 year time horizon or longer and you tailor your BTC investment approach and level of aggressiveness in accumulating it to your personal and/or psychological circumstances.
Based on this calculations one can figure out how effective DCA can be.
That's true. You can see how effective that DCA has been in the past, and hypothesize how effective it can be in the future, including how effective it is likely to be in the future, but you cannot guarantee that it will be effective. One of the greatest of underlying presumptions in regards to DCA working out is that the BTC price needs to ultimately go up to prices that are higher than your average price per BTC by the time you sell them, but it is not guaranteed to go up, even though many of us recognize bitcoin as a very strong and/or solid bet based on a variety of factors, including its ongoing building of network effects due to its strengths as the most sound of money that the world has ever witnessed, and to have been accomplished in a digital manner which brings many additional features of portability, divisibility, ongoing verifiability, etc.
May be we can add some other strategy with DCA to lessen the risk involved. DCA will be more effective if you buy during DIP and there is BULL run after you accumulate majority of your Bitcoins.
Sure. It is possible to customize DCA in a variety of ways that may well help to cause the BTC investment to be less risky from a personal approach because it is tailored to the circumstances of the individual to account for each of the individual factors.. but merely attempting to make a strategy less risky will not always result in less risk because sometimes people make mistakes in regards to either their attempts at timing and also in terms of their position size.. so mostly when we are attempting to consider the trade-offs of less risk we also are likely attempting to account for a variety of other factors that may well also include considering how much time that we are spending to employ such strategies, is our information better as compared to just employing a more blind and regular strategy.. .might we be spending our time in other useful and enjoyable ways and maybe even increasing our cashflow so that we might merely be able to buy more bitcoin on a regular basis rather than fucking around with studying charts and maybe not even getting our calculations correctly when we could have used our 1 month worth of time to earn an extra $1k or $2k and then use most if not all of that extra money to buy bitcoin directly on a regular basis without spending so much time trying to figure out short term moves and getting them wrong 30-60% of time time.
Investing in Bitcoin will not have a positive impact if the person does not learn the basics such as the main purpose of Bitcoin.
I agree on the fact that there are significant reasons why you need to learn some basics of investment before investing in Bitcoin. Because it is important to holding on during the dips when everyone else is panicking.
Sure. But I doubt that you and I are saying the same thing when referring to what are the "basics" that a person might need to know when first starting to invest into bitcoin.
I mostly suggest to people to get the fuck started buying bitcoin and start as soon as possible, even if you might only start with a small amount such as $10 per week when you could easily afford $100 per week... so in that regard, I am saying getting started is more important than trying to figure everything out and then learn along the way.. and so the basics are getting your finances in order in terms of your cashflow and figuring out how much extra that you can have in terms of buying bitcoin.
Sure, it is likely to at least have enough confidence that buying bitcoin is going to be good for the long run, but you likely do not need to know a lot about bitcoin in the beginning in order to get the fuck started investing into it, and probably the less that you know, then the smaller position size that you are going to take in the very beginning while you are hopefully learning about it, and if you are able to study and learn quickly maybe you will take 1-2 months to move your position size up from $10 per week and up to $100 per week, but if you don't have a lot of time to study bitcoin, it could take you one or two years to get your shit together in order to increase your investment size up from $10 per week to $100 per week.
So each person is responsible for themselves in terms of how much time they are able to put into studying and figuring out bitcoin, and surely I understand that there are a large number of people in the world who are ongoingly struggling to keep their daily lives going so they do not have a lot of extra time in order to study and figure out bitcoin, so it is more difficult to suggest what they might consider doing to try to improve their knowledge and/or their cashflow so that they are able to buy a bit of bitcoin and to maybe be able to spend time learning about bitcoin in their free time to the extent to which they might have any free time.
I am still not suggesting delaying in getting started in bitcoin, but there still are likely circumstances in which normies have to juggle a variety of their issues in their daily life to dedicate some time to learning and/or scrambling to get a bit of extra cash that they can put into it... and do these things simultaneously while getting started and adjusting their position size and approach to their level of understanding of various basics related to themselves (most important) and basics related to bitcoin.. such as how to get it and how to store it ..even though in the very beginning they might use a third party.. while they are figuring out various other storage options that might be available to them and even later down the road to get into more and more self-custody.. presumptively the longer that they are in the more value that they would presumptively accumulate in bitcoin.
why is the DCA concept highly recommended to every bitcoin investor because that way you have full control over the money you make, for example every month you make $1k from the work or business you do and you invest $300 or $400 every month to buy bitcoin, so you still have around 65% of the money you earn left, you can use it for your daily needs and set aside a little for your emergency fund, however, this emergency fund is what you can use later for urgent expenses, so you don't sell Bitcoin that you invested so far.
Actually, it's just our different habits in allocating the amount of money we will use to apply this strategy, but I think it's worth discussing because it can be a consideration for beginners to choose which option to use.
If you prefer to choose to first allocate it to bitcoin investment which is 30-40% every month, I prefer to see how much I spend every month (including emergency funds) after that I can allocate it to buy bitcoin, yes even though the amount is not much different from 30-40%. The reason I do this is because I see my daily needs as what I need to fulfill first.
Again, it's just our different ways, but the goal is the same. There is no problem with that, because the most important thing is our consistency in doing this strategy.
Yes your right, its good to hear everyone's opinion, but listen to no one. In some articles i read its best you always draw your own conclusion especially when their opinions contradict yours. For me I choose to allocate 20% weekly to emergency fund and 20% to my investment just by Dcaing, I know its not such of a good amount though but its has helped me accumulate some amount of Bitcoin.
That sounds like a lot and maybe even unrealistic. Most people are not able to save/invest/set aside 40% of their income.
Not every time I do agree with strangers or so-called bitcoin investment experts. At the end of the day the only person who understands your investing decisions either to hold, sell during the two sides of the market level is yours especially when you see others panicking. But if you decide to listen to other opinion its not a bad idea but it should be for the best.
We are not really talking about selling in this thread. We are mostly talking about various ways to accumulate bitcoin by buying and HODLing rather than selling. Better to start with the basics first, which is figuring out ways to buy, and surely if you might have had run out of money, from time to time, then maybe in those cases you might HODL through the situation. Otherwise, it is probably best for the newest of BTC investors to constantly be considering ways to buy bitcoin. and don't even be worrying about selling.. especially in the beginning. Now if you have been into bitcoin for a while and you learn about bitcoin then maybe you can develop more advance techniques that involve selling, but that surely is not the basic thrust (and topical discussion) of this thread.
Investing in Bitcoin will not have a positive impact if the person does not learn the basics such as the main purpose of Bitcoin.
I agree on the fact that there are significant reasons why you need to learn some basics of investment before investing in Bitcoin. Because it is important to holding on during the dips when everyone else is panicking.
If they are greedy enough to think about big profits without even learning on what they are entering then their investment to bitcoin will be their worse experience since imagine if bearish run comes unto them and they don't know on what next action they need to do so once they lose in terms of losing its value for sure they will end up hating bitcoin for that reasons. That's the main reason that we should really need to learn more bitcoin and its usage or purpose they called so that we are fully ready to deal with the risk involve.
I'm also sure with doing all necessary measure we can make sure that we are ready to hodl since we already know how to settle up on our investment then start to aim for long term bullish trend that will possibly happen in future.
You (Taskford) still seem to be talking about techniques involving position size and psychology... and frequently psychology can be managed through position size ... which surely starts from learning about yourself rather than getting caught up upon the various particulars about bitcoin.
Don't get me wrong, I have no objections towards normie newbies spending time learning about what they are investing into in order to develop more and more conviction.. but at the same time, some of the earliest things that they likely need to know merely has to do with how much extra money that they might have to be able to buy bitcoin, so they may well spend a lot of time, just setting up accounts and/or finding connections regarding where to buy bitcoin.. which is also going to vary quite a bit based on geographical location.
