Better than DCA is DCAing when fear is high

[Poker Player]

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/

The DCA strategy is good because it can be used by everyone, even if they have little knowledge. Warren Buffet does not do DCA, to give you an example.

The problem with the example you give is that when the price has fallen a lot you never know where the bottom is, that's why DCA is good because you buy regularly regardless of what the market does.

When you know a little about how markets work, without being Buffet, you can do what you suggest, without trying to be too exact in getting it right. What I do is DCA and if I see very big dips and bear market, I increase my buys a little bit.

[doomloop]

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.

LoL yeah that's always the case that happens there most especially on the current market now. People think the rise will continue but it eventually falls down again, this is why it is still better to buy when the market is down because there is a big possibility that it will back up but you can prefer to not use all of your funds for buying since there's also a possibility that the price can go down for more.

Overall, the market will always be unpredictable and we are all free to follow the strategy that we think good for us. There is nothing wrong with the first strategy but as long as you know how to hodl strong in case a bear trap really takes place.

[cryptoaddictchie]

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.

So whats stable scenario it is? I think its kinda hard to locate those points on certain charts. For some who did buy deep prices, its not yet good and those who thunk they bought at good bottom now is the time for them to sell. This is circulation no one would ever be balance. We need a crunch time to possibly see that we did a good decision on buying and selling cause no good enough even professional to predict an accurate level at which we should do that.

[Wexnident]

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/

A "proper bottom" doesn't really exist imo, it only ever appears or is discovered after it passes so yea, it really isn't a metric I'd use in DCA. Heck DCA should be done regardless of time/price, it's all about trusting an asset to develop in the long term. I would definitely recommend DCA on Bitcoin, but never on altcoins. DCA is the idea of slow and steady wins the race imo, it's not something to rush or to use to get rich quick.

[Cryptornd]

The best chance for buying is when the blood on the street.
we should always think what majority of people dont think. the game is up to you and it depends on psychology

[worle1bm]

This strategy is good for those who believe in it and just want to accumulate more and more bitcoins for the long run and securing their future.At these times the prices are low but you can't decide the next move of the market but DCA will help you to gain btc with whatever amount you have planned to invest on and it's good according to me.Conversion to stable coins is choice for many at these times but it will not give you any returns in the long run so better wait for some time for market recovery.

[kamvreto]

This strategy is good for those who believe in it and just want to accumulate more and more bitcoins for the long run and securing their future.At these times the prices are low but you can't decide the next move of the market but DCA will help you to gain btc with whatever amount you have planned to invest on and it's good according to me.Conversion to stable coins is choice for many at these times but it will not give you any returns in the long run so better wait for some time for market recovery.

Apart from the DCA strategy that will be profitable for long-term holders, DCA also needs to be supported by good money management, because we must still have spare funds to be able to buy bitcoin or altcoins gradually every time there is a drastic decline.
People who switch to stable coins of course also have to think about whether it is safe for the long term, price fluctuations can happen, such as the case of UST which is a stable coin from LUNA which eventually crumbled and many investors suffered losses.

[tbterryboy]

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.

Being in fear for long and still going down actually makes quite sense, why wouldn't it? I mean it is in fear and if people are in fear then they are selling, hence why it's in fear. That means the price going down equals to people being in fear, and that is how all of that works.

The logic of that fear/greed index is not to tell you when the price would go up, it doesn't say that "fear equals quick profit short term if you buy now" like many people think, it just tells you if the market is in fear or greed. After that, is up to you to make a difference and sometimes you use it and make a profit, and sometimes you do not use it and make a loss.

[Quidat]

This strategy is good for those who believe in it and just want to accumulate more and more bitcoins for the long run and securing their future.At these times the prices are low but you can't decide the next move of the market but DCA will help you to gain btc with whatever amount you have planned to invest on and it's good according to me.Conversion to stable coins is choice for many at these times but it will not give you any returns in the long run so better wait for some time for market recovery.

Not only on believing but also to those people who do have deeper pockets for them to make out necessary step for them to get in.Not all people would really be that
confident on making such action even if they do have the funds to make use of with but we cant really deny that in every drop there would be always an opportunity
for you to accumulate cheap which would really be an advantage for you compared to those people who cant really able to purchase just because they do lack out of funds.
DCA is recommendable but of course it would really be applicable into those projects which are really worth to hold for long term.

[GeorgeJohn]

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/

Bitcoin price this season is something that we know vividly that is stable and profitable according to the price rotation. Converting your funds to fiat and stable coins is really acknowledgeable due to the risk involve in keeping to cryptocurrency. But like fiat currency, at times it does not have increase. So it's advisable instead of conversion to Fiat currency then you convert to stable coin before it retain it's value.

[Ahli38]

Apart from the DCA strategy that will be profitable for long-term holders, DCA also needs to be supported by good money management, because we must still have spare funds to be able to buy bitcoin or altcoins gradually every time there is a drastic decline.
People who switch to stable coins of course also have to think about whether it is safe for the long term, price fluctuations can happen, such as the case of UST which is a stable coin from LUNA which eventually crumbled and many investors suffered losses.

Yes, DCA must also be accompanied by good and correct financial management. and also this DCA cannot be done carelessly or carelessly. because to do so, you also need to have market analysis skills, chart chart patterns and basics such as support and resistance points. because if this DCA is done carelessly then the results will not be effective and not as expected. I've recently seen a lot of crypto users or crypto traders who may be new to crypto trading and maybe he or she isn't very familiar with basic analysis so the DCA strategy is not effective. So it is also necessary to remind beginners that they must know first how to use this DCA method correctly and appropriately. and must also know the reasons for using DCA.

[skarais]

There's nothing wrong with waiting for the bitcoin price to drop and you start buying when the price is what you expected, but I don't think DCA is a bad thing either. Someone who has previously implemented the DCA strategy from $60K to $20K may find it useless as the price drops below $18K. But I don't think they're losing now just because bitcoin is $20K, they're not selling now but they're collecting as much as they can and targeting long term gains.

What's wrong in my opinion is that when they do nothing during this bear market, it's much worse than what people who take advantage of the opportunities in the market do. While these people keep talking about bitcoin having potential, they never buy or own it.

[Mpamaegbu]

Those who know charts can find proper bottom and do dca there

I tell you of a truth, those who are absolutely sure as in the Nostradamus style that price has hit a bottom won't need to do a DCA. They throw in all, I mean all, and buy at once. Why would anyone begin to make purchases in bits when they're convinced that price will dip further. None, of course. I like the DCA strategy because it offers investors an opportunity to get cryptos they wouldn't want to miss at a perceived cheap price.

[Silberman]

There's nothing wrong with waiting for the bitcoin price to drop and you start buying when the price is what you expected, but I don't think DCA is a bad thing either. Someone who has previously implemented the DCA strategy from $60K to $20K may find it useless as the price drops below $18K. But I don't think they're losing now just because bitcoin is $20K, they're not selling now but they're collecting as much as they can and targeting long term gains.

What's wrong in my opinion is that when they do nothing during this bear market, it's much worse than what people who take advantage of the opportunities in the market do. While these people keep talking about bitcoin having potential, they never buy or own it.

Yes you are right in some part but then I don't recommend DCA to new people in trading, some people just do DCA just like what others are doing they just copying it, traders need to see and examine the chart first before doing anythig, dca is good for trading and not for future trading. And yes doing nothing at all this bear market is absolutely worth to regret with.

Following a strategy blindly is never a good idea, after all dollar cost averaging like any strategy has some downsides, and one of them is when you buy a coin that is going down in price for the first time and then the coin keeps going down in value after you bought it, by buying the new lows you are getting at better and better prices but your unrealized losses keep growing and growing, and this can be incredibly difficult to deal with if you are a new trader.

[abel1337]

There's nothing wrong with waiting for the bitcoin price to drop and you start buying when the price is what you expected, but I don't think DCA is a bad thing either. Someone who has previously implemented the DCA strategy from $60K to $20K may find it useless as the price drops below $18K. But I don't think they're losing now just because bitcoin is $20K, they're not selling now but they're collecting as much as they can and targeting long term gains.

What's wrong in my opinion is that when they do nothing during this bear market, it's much worse than what people who take advantage of the opportunities in the market do. While these people keep talking about bitcoin having potential, they never buy or own it.

Yes you are right in some part but then I don't recommend DCA to new people in trading, some people just do DCA just like what others are doing they just copying it, traders need to see and examine the chart first before doing anythig, dca is good for trading and not for future trading. And yes doing nothing at all this bear market is absolutely worth to regret with.

Following a strategy blindly is never a good idea, after all dollar cost averaging like any strategy has some downsides, and one of them is when you buy a coin that is going down in price for the first time and then the coin keeps going down in value after you bought it, by buying the new lows you are getting at better and better prices but your unrealized losses keep growing and growing, and this can be incredibly difficult to deal with if you are a new trader.

True, It would be hard for newbie trader to keep up following it's unrealized losses especially if the newbie trader has a not that big capital to support his dca strategy. Our bear market is pretty long and the more the higher your starting point of your DCA is, The longer the unrealize profit will come. DCA is effective, it's just the newbie trader should put a lot of time finding the target market price the trader will buy and be active whenever a big chart movement is happening.

[milewilda]

There's nothing wrong with waiting for the bitcoin price to drop and you start buying when the price is what you expected, but I don't think DCA is a bad thing either. Someone who has previously implemented the DCA strategy from $60K to $20K may find it useless as the price drops below $18K. But I don't think they're losing now just because bitcoin is $20K, they're not selling now but they're collecting as much as they can and targeting long term gains.

What's wrong in my opinion is that when they do nothing during this bear market, it's much worse than what people who take advantage of the opportunities in the market do. While these people keep talking about bitcoin having potential, they never buy or own it.

Yes you are right in some part but then I don't recommend DCA to new people in trading, some people just do DCA just like what others are doing they just copying it, traders need to see and examine the chart first before doing anythig, dca is good for trading and not for future trading. And yes doing nothing at all this bear market is absolutely worth to regret with.

Following a strategy blindly is never a good idea, after all dollar cost averaging like any strategy has some downsides, and one of them is when you buy a coin that is going down in price for the first time and then the coin keeps going down in value after you bought it, by buying the new lows you are getting at better and better prices but your unrealized losses keep growing and growing, and this can be incredibly difficult to deal with if you are a new trader.

True, It would be hard for newbie trader to keep up following it's unrealized losses especially if the newbie trader has a not that big capital to support his dca strategy. Our bear market is pretty long and the more the higher your starting point of your DCA is, The longer the unrealize profit will come. DCA is effective, it's just the newbie trader should put a lot of time finding the target market price the trader will buy and be active whenever a big chart movement is happening.

Just let them be able to to realize those things along the way because thats how thing goes and works.You wont able to find out unless you do experience it for yourself.
Its true that when price deepens then it cant really be avoided not to freak out on the time you are seeing deep negatives on your portfolio. DCA suggestion might be simple but its not for everybody.
Not all does have the money in reserved and not all does have that unlimited or huge funds to have in idle for them to do such strategy and also even if there are people who are really that
have the capability wont really be having that confidence on executing DCA due to emotion problem or something in related which its not surprising.

[kamvreto]

~snipped Not all does have the money in reserved and not all does have that unlimited or huge funds to have in idle for them to do such strategy and also even if there are people who are really that
have the capability wont really be having that confidence on executing DCA due to emotion problem or something in related which its not surprising.

The main obstacle is indeed about the reserve of money, because money is limited, suggestions for doing DCA cannot be done. Those who don't know how to do money management will put all the money in one coin they buy, so there will be no more spare money.

I've even been stuck in an unfavorable situation, where the spare money was used up to buy the price down and the price was crashing even more. If you cut loss, you will experience a lot of losses. The only way is to keep holding on and I don't care anymore.

[hd49728]

The main obstacle is indeed about the reserve of money, because money is limited, suggestions for doing DCA cannot be done. Those who don't know how to do money management will put all the money in one coin they buy, so there will be no more spare money.

So you must to have plan for DCA in order to minimize risk of enter with too high price, top or all time high price. With DCA, you entry price will be an average of many entries you make.

DCA is using spare money for your investment at different times and with different prices.

I've even been stuck in an unfavorable situation, where the spare money was used up to buy the price down and the price was crashing even more. If you cut loss, you will experience a lot of losses. The only way is to keep holding on and I don't care anymore.

Your unfavorable situation will be favorable situation for others because in market we always have winners and losers. If you are in painful when Bitcoin falls to 18,000, other patient investors can feel very happy. Hapoy because after months of waiting, they can rejoin the market and even can get good profit very quickly.

[Silberman]

~snipped Not all does have the money in reserved and not all does have that unlimited or huge funds to have in idle for them to do such strategy and also even if there are people who are really that
have the capability wont really be having that confidence on executing DCA due to emotion problem or something in related which its not surprising.

The main obstacle is indeed about the reserve of money, because money is limited, suggestions for doing DCA cannot be done. Those who don't know how to do money management will put all the money in one coin they buy, so there will be no more spare money.

I've even been stuck in an unfavorable situation, where the spare money was used up to buy the price down and the price was crashing even more. If you cut loss, you will experience a lot of losses. The only way is to keep holding on and I don't care anymore.

Another weakness of DCA is that you need to use the strategy only on good assets, if you use the strategy with altcoins that could disappear at any moment then you are going to get burned and lose all your capital sooner or later, we need to only invest in coins that we know have a significant chance of surviving the bear market and get to new all time highs, and very few coins fulfill this criteria in this market, and without a doubt the best coin in which we can perform this strategy is bitcoin and maybe ethereum as well.

[milewilda]

~snipped Not all does have the money in reserved and not all does have that unlimited or huge funds to have in idle for them to do such strategy and also even if there are people who are really that
have the capability wont really be having that confidence on executing DCA due to emotion problem or something in related which its not surprising.

The main obstacle is indeed about the reserve of money, because money is limited, suggestions for doing DCA cannot be done. Those who don't know how to do money management will put all the money in one coin they buy, so there will be no more spare money.

I've even been stuck in an unfavorable situation, where the spare money was used up to buy the price down and the price was crashing even more. If you cut loss, you will experience a lot of losses. The only way is to keep holding on and I don't care anymore.

Another weakness of DCA is that you need to use the strategy only on good assets, if you use the strategy with altcoins that could disappear at any moment then you are going to get burned and lose all your capital sooner or later, we need to only invest in coins that we know have a significant chance of surviving the bear market and get to new all time highs, and very few coins fulfill this criteria in this market, and without a doubt the best coin in which we can perform this strategy is bitcoin and maybe ethereum as well.

DCA would really be indeed worth on something which is also worth in speaking with potential coins considering on how many projects or coins in the market then it is really hard to choose but if you dont like all the hassles on making out some research then better stick with bitcoin and other top altcoins rather than making yourself considering on some low cap shitcoins in the market which it would really
be just a waste of funds you do have and just like what i do said that it wont really be that simple on making or doing DCA if emotion would really be stirring up on where you cant really
make out good decision even if you do have the funds and money to take such step.Human emotion is really that relevant on affecting your decisions in life.