Does it still make sense to dollar cost average when the market is crazy bull?

[4thewin]

Hi, normally I'm a fan of dollar cost averaging.  But I'm thinking of not really dollar cost averaging because the market is obviously a very bull market right now for BTC.

What do you think will be the best strategy to enter the bitcoin market today?

Pick the lowest dip I can find say, this week, and invest all my principle. Or, dollar cost average anyway....if so, over what time horizon? Surely not over the next year.  Maybe a week? A month?

I personally believe that the train has almost left the station, which is why I am wondering if it makes no sense to dollar cost average at this time.

[1715199931]

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[AicecreaME]

Hi, normally I'm a fan of dollar cost averaging.  But I'm thinking of not really dollar cost averaging because the market is obviously a very bull market right now for BTC.

What do you think will be the best strategy to enter the bitcoin market today?

Pick the lowest dip I can find say, this week, and invest all my principle. Or, dollar cost average anyway....if so, over what time horizon? Surely not over the next year.  Maybe a week? A month?

I personally believe that the train has almost left the station, which is why I am wondering if it makes no sense to dollar cost average at this time.

Source

Dollar-cost averaging (DCA) is an investment strategy in which an investor divides up the total amount to be invested across periodic purchases of a target asset in an effort to reduce the impact of volatility on the overall purchase.

So the answer to your question is it doesn't make sense at all. The volatility of Bitcoin would not be reduced like a big decrement for its volatility, eve in the dip. Therefore you may disregard the Dollar Cost Average method and stick to the "wait for the dip" because that more realistic and a sure way to earn profits in no time. Instead of taking its volatility as a disadvantage on buying, take it as a advantage because that is how it should be if you know when to enter and exit the market to secure your profit.

[Sterbens]

do not rush, the market will give you the right space. You cannot enter the market if you are only interested in the increase in bitcoin which continues to reach its peak. There are times when you have the opportunity to take advantage of dollar cost averaging on bitcoin correction limits. time is still long and you can collect Satoshi. although currently entering the Bullish market will only be stressful, so try to prepare a few bucks to enter with an average ratio of 50: 50 when bitcoin prices stabilize.

[tinopener]

I'd say dollar cost average with a smaller amount if you are convinced it is a bull market.

During a bear market, increase the amount.

[aoluain]

Patience is the key, the markets will always produce opportunities to practice
dollar cost averaging.

In this cycle we are in where the price is moving upwards we can still DCA because
we are looking to the future. Not everyone is in a position to study movements and
charts so the DCA strategy works really well.

At $62,000 today I will buy confident that the price will be at least $70,000 and with
the amount I purchase with a fluctuation of a few percentage points isnt a
deal breaker.

[avikz]

Hi, normally I'm a fan of dollar cost averaging.  But I'm thinking of not really dollar cost averaging because the market is obviously a very bull market right now for BTC.

What do you think will be the best strategy to enter the bitcoin market today?

Pick the lowest dip I can find say, this week, and invest all my principle. Or, dollar cost average anyway....if so, over what time horizon? Surely not over the next year.  Maybe a week? A month?

I personally believe that the train has almost left the station, which is why I am wondering if it makes no sense to dollar cost average at this time.

If you are not a new investor and already has some bitcoin at your wallet, it's not really the best time for dollar cost averaging. It is purely time for swing trading. Buy at every dip and sell at every high. That way you can make a good amount of money out of this. If you want to do dollar cost averaging, you will end up increasing the average cost of your holding and nothing else. So don't do DCA now, rather trade to make money!

[Review Master]

Pick the lowest dip I can find say, this week, and invest all my principle. Or, dollar cost average anyway....if so, over what time horizon? Surely not over the next year.  Maybe a week? A month?

If it's just for a week/month, so it's better to avoid DCA and try to get the support and resistance zone for bitcoin as well to take entry on it. But DCA will be the option if anyone's willing to hodl BTC for longer period of time because those are now on profits who started doing DCA back in 2017-18 bull run. So, it's never late for anyone to buy bitcoin or DCA on it for longer period of time, IMO.

[yhiaali3]

This varies from person to person, some people prefer to wait for the big drop to buy and others buy from the lowest point that Bitcoin reaches on average within a week, for example, in my opinion you can buy now from several points and not from one point, you can choose the Maine time every day and buy a quantity Of bitcoin with only a part of your capital, and so on every day for a week or a month, for example, so you can get a good average price during this period because you bought from multiple levels and not from one level and then you are waiting for the rise and so I think that you will come out a winner in the end.

[semobo]

I personally believe that the train has almost left the station, which is why I am wondering if it makes no sense to dollar cost average at this time.

We are already reached over 300% of previous all time high so in this case you are right, investing all your capital is not really a good choice for long term investment but if you are looking for short term profits then you should invest right now because we can see clear bump after every correction but we also has the risk of entering into bear market in any time.

[pawanjain]

Hi, normally I'm a fan of dollar cost averaging.  But I'm thinking of not really dollar cost averaging because the market is obviously a very bull market right now for BTC.

What do you think will be the best strategy to enter the bitcoin market today?

Pick the lowest dip I can find say, this week, and invest all my principle. Or, dollar cost average anyway....if so, over what time horizon? Surely not over the next year.  Maybe a week? A month?

I personally believe that the train has almost left the station, which is why I am wondering if it makes no sense to dollar cost average at this time.

This depends on whether you are in it for the long term or for the short term profits. If you are in it for the long term then keep dollar cost averaging and keep accumulating.
This will increase your portfolio at regular intervals without worrying about the market price.
If you are in it for the short term gains then you should decide on your own whether to take the risk of going all in or wait for a dump to get in at a cheaper price.

[FIFA worldcup]

Hi, normally I'm a fan of dollar cost averaging.  But I'm thinking of not really dollar cost averaging because the market is obviously a very bull market right now for BTC.

What do you think will be the best strategy to enter the bitcoin market today?

Pick the lowest dip I can find say, this week, and invest all my principle. Or, dollar cost average anyway....if so, over what time horizon? Surely not over the next year.  Maybe a week? A month?

I personally believe that the train has almost left the station, which is why I am wondering if it makes no sense to dollar cost average at this time.

You can still do the dollar cost averaging while buying bitcoin even in the bull market. In a bull market, you will never see a coin which rises continuously.
There are always times when the bitcoin prices drop by 20 to 30%. You can buy in these dips in the bull market and keep doing the dollar cost averaging which is by far a safest investment method.

[Yogee]

Buy and sit tight if you don't have the time or skills to read charts. Would it really matter if you bought at $62K or $55K when the price reaches $100K+ in a few months time? Probably not but it's still your choice. This is not the first or second time BTC at over $60K so it could be the new base now.

[20kevin20]

Are you a long-term investor? Do you expect BTC to be substiantially expensive within years? If you've answered Yes to both questions, then DCA even now. What I love doing is putting an exact sum of USD in BTC every single week. You'll DCA while not even feeling it, and by the time Bitcoin flies you'll be proud of yourself.

It all truly depends on what your goals and beliefs are. If you think Bitcoin is about to dump and are afraid to lose a bit of your investment, better not DCA now. If you believe in BTC and are a long-term hodler, do it. It's all on you and your mindset.

[YOSHIE]

if so, over what time horizon? Surely not over the next year.  Maybe a week? A month?

You yourself are sure that the price of Bitcoin at the end of the year 2021 will be priced at $ 100k, if you are sure that means: the train has not left the station, it is still waiting for passengers to leave.

Today Bitcoin is trading in the crypto market for $ 63,041 meaning that there is still hope for those who have not invested in the future, It is difficult to say in monthly and weekly terms Bitcoin is back to its lowest point, for now the priority is 'confidence' to trade and invest.

The saying goes: backward when in doubt, confident, move forward.

[Caross]

It's bad timing to jump into Bitcoin, as the market is on a bull run I will urge you to hold your ustd and wait for more deep before you buy any price above $60k is high right now. Just my views.

[dothebeats]

It still does in the long term, although during bull markets I tend to downsize my budget and only buy small amounts to try and save some money should bitcoin go crashing without a moment's notice. I've been doing this for years and I have yet to experience severe losses since I tend to hold on to my coins even when the going gets rough and I bought near the top. It's mostly patience that will save you from losing a lot of money in bitcoin and not really dollar cost averaging on this part, but it still helps to reduce the total amount of your spending on bitcoin.

[blockman]

Pick the lowest dip I can find say, this week, and invest all my principle. Or, dollar cost average anyway....if so, over what time horizon? Surely not over the next year.  Maybe a week? A month?

Both can work. You need to distinguish your situation and which is strategy that you're comfortable with. We have different situations and one can invest with the DCA strategy because he's comfortable with that while the other, he's just going to wait for the dip and buy at his picked price as the dip but you might find it hard to see if it's the actual dip on this cycle.

[CarnagexD]

Highly dependent on the assets you're investing on. For most of the assets in the market you definitely don't need to DCA since the bull run will do the work for you. But if you're a fan of some cryptos that you know show great potential to grow but is somehow stale or bearish in price, when almost everything is going green, DCA is the way to go for me.

[Ucy]

I don't know very much about dollar cost average,  i'd simply buy dips and sell when i need to or when i need coins for other important things. If the market keeps going up i would probably sell more of the dips i bought in the past. ..So,this's part of the reasons why it's important not to sell everything when price goes up significantly.
I would occasionally buy a coin  if i notice the project  continues to develop the right way ,as fast as possible. I would focus on investing in projects that can last long without compromising on community's ideals/principles.

[XZERO1]

Yep, even when we're in a bull market you can not possibly be 100% sure that it won't start the correction in price once you bought or even go for a long downtrend after that, so unless you're totally okay with gambling with your money by going all in at once, that's not a very wise move.

In addition to that dollar cost averaging gives you more comfort while holding since you can just buy if it kept going down from your entry price, in other words it means there's close to zero chance of panic selling in loss while it also gives you a better average entry price at the same time.