Better than DCA is DCAing when fear is high

[libert19]

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

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

[GreatArkansas]

"until market presents opportunity itself."
(...)

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

[libert19]

"until market presents opportunity itself."
(...)

But you should also consider the value of it because when we drop from $30,000 before the index is indicating FEAR is high but again now we dropped already to below $20,000 and the FEAR is still high.

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

[Little Mouse]

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

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

[Jawhead999]

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

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

[mk4]

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

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

[passwordnow]

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

[adaseb]

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

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

[el kaka22]

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

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

[WeedGoW]

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

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

[stomachgrowls]

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

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

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

[sheenshane]

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

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

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

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

[Jatiluhung]

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

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

[tranthidung]

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

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

I introduce another site to check Fear & Greed Index.

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

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

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

[Ahli38]

although the fear indicator dominates but in reality it turns out that many people buy gradually during this bear market and keep it and continue to increase. as reported on the cointelegraph site.
 

⁠Bitcoin mints more than 13,000 'wholecoiners' in the past seven days

Small wallet addresses–those containing 0.1 Bitcoin or more–continue to accumulate Bitcoin at a rapidly increasing rate.

https://ct.com/ap02

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

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

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

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

Sometimes I change my plans too when something unexpected happens.

[passwordnow]

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

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

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

[avikz]

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

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

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

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

[KingsDen]

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

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

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

[Hamphser]

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

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

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

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

[bitcrystal]

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