Bitcoin DCA - always same amount or do you change depending on price?

[JamesDaniel90]

Hello all,

I currently have 0.08 BTC at an average price of $19000 and just wondering what everyone does when we have pumps like we are currently seeing.

I feel I have a great average currently but now that it has shot up to $24,600 buying now will increase my average price quite a lot.

I usually DCA weekly but thinking I may miss this week and buy more once we have another pullback.

Just wondering what everyone else does, do you buy the same amount each time or less as its more expensive?

[Wapfika]

I usually skip doing DCA when I saw solid green candle and wait for a couple of days for a minor correction. Since you already have a good position with average buy price of 19K, Wait a bit for correction is the right thing to do because your initial investment is already on profit and there’s no need to chase for more profit by buying on a pumped price.

But of course this depends on your terms of investment. If you are looking for a long term investment such as a year or more, The price doesn’t matter whether it’s currently pumped or dumped because this price movement is only short term while you can average your buy a lot more on the following months coming.

[Oshosondy]

Some people can wait for bullback which is possible. During investing, it is good to be patient.

Some people have a target, it can be $25000 or $30000 before they will no more start to invest. People that want to invest for long term can use this kind of strategy because they believe bitcoin will reach all-time-high again and they are going to gain.

Some people can just take part of the money weekly and later invest the remaining if the price of bitcoin decrease.

Some people will continue to DCA as they know that bitcoin price is still not high enough.

[Picaflor]

I DCA daily, first thing in the morning, before I even get out of bed.

DCA-ing depending on the price could be more profitable, but there is no guarantee.
For example you could DCA with a higher f**t amount when it's below some MA or when the RSI is low, and a lower amount otherwise.

It may be worth running some simulations on historical data, but my guess is you wouldn't find any patterns that would work over a different period.

[JamesDaniel90]

I usually skip doing DCA when I saw solid green candle and wait for a couple of days for a minor correction. Since you already have a good position with average buy price of 19K, Wait a bit for correction is the right thing to do because your initial investment is already on profit and there’s no need to chase for more profit by buying on a pumped price.

But of course this depends on your terms of investment. If you are looking for a long term investment such as a year or more, The price doesn’t matter whether it’s currently pumped or dumped because this price movement is only short term while you can average your buy a lot more on the following months coming.

Bitcoin is the one part of my portfolio I plan to hold till 2030 at least , most of my altcoins I will sell next bull run.

I will wait a few days and hopefully Bitcoin drops back down to $23k again which i will set as my next buy.

[Wapfika]

I usually skip doing DCA when I saw solid green candle and wait for a couple of days for a minor correction. Since you already have a good position with average buy price of 19K, Wait a bit for correction is the right thing to do because your initial investment is already on profit and there’s no need to chase for more profit by buying on a pumped price.

But of course this depends on your terms of investment. If you are looking for a long term investment such as a year or more, The price doesn’t matter whether it’s currently pumped or dumped because this price movement is only short term while you can average your buy a lot more on the following months coming.

Bitcoin is the one part of my portfolio I plan to hold till 2030 at least , most of my altcoins I will sell next bull run.

I will wait a few days and hopefully Bitcoin drops back down to $23k again which i will set as my next buy.

So this is a super long term investment indeed. I suggest to make your buy schedule bi-weekly to make sure you can average your buy evenly and for a less hassle of buying frequently.

Yeah, There’s no harm on halting to buy for and wait for another good entry since you have a lot of time to DCA. Buy as low as possible without rushing things. Keep it up!

[rat03gopoh]

DCA's function is primarily to pay less attention to price due to the uncertainty of where the market will go next, therefore you do it regularly.

I feel I have a great average currently but now that it has shot up to $24,600 buying now will increase my average price quite a lot.

So the question is, what if the decline will be at a higher price range? That's the advantage of DCA. Buying on the next decline (if at the same price range) will decrease the average price back if you take a chance.

[tbct_mt2]

I feel I have a great average currently but now that it has shot up to $24,600 buying now will increase my average price quite a lot.

You can DCA in uptrend or in downtrend because DCA is applied for investment. If you believe Bitcoin will be upward in future, today price will be bottom in future next 5 or 10 years, you can continue DCA in this mini run.

I usually DCA weekly but thinking I may miss this week and buy more once we have another pullback.

Sometimes it will be pulled back and you win with your waiting. Sometimes, it skyrockets and you fail with your waiting then end with buying at higher price than like $24,600 today.

By predicting price, peak and bottom, you are breaking core idea of DCA that is to eliminate emotion and psychological effects.

[avikz]

Hello all,

I currently have 0.08 BTC at an average price of $19000 and just wondering what everyone does when we have pumps like we are currently seeing.

I feel I have a great average currently but now that it has shot up to $24,600 buying now will increase my average price quite a lot.

I usually DCA weekly but thinking I may miss this week and buy more once we have another pullback.

Just wondering what everyone else does, do you buy the same amount each time or less as its more expensive?

It's always good to keep your eyes open while doing DCA. So I wouldn't suggest you to invest same amount in all market conditions. Rather, invest more when the price is less than your average buying price and invest less when it is higher. That's the wisest route to take.

Because if you keep investing same amount when the price is higher, you will risk increasing your average price. So play slow when the market is higher than your average buy price.

[tbct_mt2]

It's always good to keep your eyes open while doing DCA. So I wouldn't suggest you to invest same amount in all market conditions. Rather, invest more when the price is less than your average buying price and invest less when it is higher. That's the wisest route to take.

Because if you keep investing same amount when the price is higher, you will risk increasing your average price. So play slow when the market is higher than your average buy price.

Important for OP to consider where the market is now. Is it in a bull market or in a bear market? If OP thinks it is a in a bear market (I agree with), it is good to continue DCA.

In addition, if OP believes that in future, just with a next bull run, after a next halving in 2024, Bitcoin will at least reclaim its all time high nearly $70,000 or better make a new all time high above $70,000, price around $25,000 is a dream for many people just next one more year.

If OP agrees with me on these two points, why stop DCA with price under $25,000?

[sulendra12]

Just wondering what everyone else does, do you buy the same amount each time or less as its more expensive?

For example if I buy $100 worth of Bitcoin consistently every week then if the price jumps up double, then I still will buy $100 worth of Bitcoin but of course the amount of Bitcoin I receive is less than before. I set the fixed amount of my affordable money for DCA everytime I could unless there are some unfortunate events happened, but it's so far really comfortable for me.

If OP agrees with me on these two points, why stop DCA with price under $25,000?

OP never said to stop though.

[JamesDaniel90]

It's always good to keep your eyes open while doing DCA. So I wouldn't suggest you to invest same amount in all market conditions. Rather, invest more when the price is less than your average buying price and invest less when it is higher. That's the wisest route to take.

Because if you keep investing same amount when the price is higher, you will risk increasing your average price. So play slow when the market is higher than your average buy price.

Important for OP to consider where the market is now. Is it in a bull market or in a bear market? If OP thinks it is a in a bear market (I agree with), it is good to continue DCA.

In addition, if OP believes that in future, just with a next bull run, after a next halving in 2024, Bitcoin will at least reclaim its all time high nearly $70,000 or better make a new all time high above $70,000, price around $25,000 is a dream for many people just next one more year.

If OP agrees with me on these two points, why stop DCA with price under $25,000?

We are still in a bear market, bull market will start next year.

I think we will see a lot of pumps to around $30,000 this year.

[Dickiy]

Hello all,

I currently have 0.08 BTC at an average price of $19000 and just wondering what everyone does when we have pumps like we are currently seeing.

I feel I have a great average currently but now that it has shot up to $24,600 buying now will increase my average price quite a lot.

I usually DCA weekly but thinking I may miss this week and buy more once we have another pullback.

Just wondering what everyone else does, do you buy the same amount each time or less as its more expensive?

If in terms of money I spend to buy BTC or in terms of my fiat currency with the same value regardless of BTC price fluctuations because this is based on the presentation of spending for investment, even though the amount of BTC you get when doing DCA is sometimes a little and sometimes more because of fluctuations it is very confusing if you think deeply about buying DCA when you want a large amount of BTC to get, in this case I have additional funds to buy when it goes down to buy more BTC and treat disappointment when doing DCA at high prices in previous time.

[noorman0]

Yes, it depends on market conditions, so it's good if you have a strategy of doing multiple DCAs for each price level (this will readjust your buying levels).
For example, at a price level of $16k to $20k, each of your purchases is $100 (DCA-1). Once the price level goes up $20k to $24k it will be $60 (DCA-2), etc. In this case, your portfolio should be separate.

By now you have accumulated quite a lot with a good buying average.

[d3nz]

Yes, it depends on market conditions, so it's good if you have a strategy of doing multiple DCAs for each price level (this will readjust your buying levels).
For example, at a price level of $16k to $20k, each of your purchases is $100 (DCA-1). Once the price level goes up $20k to $24k it will be $60 (DCA-2), etc. In this case, your portfolio should be separate.

By now you have accumulated quite a lot with a good buying average.

DCA is really a great strategy and timing is really the key. Just always buy if it's on a red candle on a 4H timeframe and set an alarm for the target price if it hits. I can see that the market could reach $25k in no time and another retracement before it goes up again.

[Picaflor]

Yes, it depends on market conditions, so it's good if you have a strategy of doing multiple DCAs for each price level (this will readjust your buying levels).
For example, at a price level of $16k to $20k, each of your purchases is $100 (DCA-1). Once the price level goes up $20k to $24k it will be $60 (DCA-2), etc. In this case, your portfolio should be separate.

That would make sense if you knew BTC was going to range between $16k - $24k.

But without the ability to predict the market it's risky. What if it never drops below $24k (or whatever level you set), you'll never buy BTC again and, unable to save the fruits of your labour, you'll end up being poor.

[naira]

Hello all,

I currently have 0.08 BTC at an average price of $19000 and just wondering what everyone does when we have pumps like we are currently seeing.

I feel I have a great average currently but now that it has shot up to $24,600 buying now will increase my average price quite a lot.

I usually DCA weekly but thinking I may miss this week and buy more once we have another pullback.

Just wondering what everyone else does, do you buy the same amount each time or less as its more expensive?

It's as simple as this: If within 1 week you always take the time to buy then there is a 7 day option to make a purchase. So you don't need to force yourself to buy when it's green, because within a week you can have 7 choices and will definitely be adjusted to the price when a correction occurs. DCA is a good step, but choosing a purchase at the right time also requires careful consideration.

[LogitechMouse]

I currently have 0.08 BTC at an average price of $19000 and just wondering what everyone does when we have pumps like we are currently seeing.

I feel I have a great average currently but now that it has shot up to $24,600 buying now will increase my average price quite a lot.

I usually DCA weekly but thinking I may miss this week and buy more once we have another pullback.

Just wondering what everyone else does, do you buy the same amount each time or less as its more expensive?

Try to tweak your strategy.

I mean in times like this where the market is pumping, it's pretty obvious that you don't want to buy Bitcoin and wait for it to go down at least. Keep the money that you want to use for this week and use it next week or until it goes down. After all, you are doing DCA "weekly" and there are still a few days left to end the week. Maybe we might see a bit of a downward movement after this pump (which is what always happens), and that's the time where you need to buy Bitcoin.

As for what I'm doing when I'm seeing pumps, nothing . Maybe I'm a bit happy to see a pump but, I'm not buying when a pump happens, but at the same time, I'm not also selling when a pump happens unless, it's time for me to sell (I've have my own strategy of selling some of my Bitcoins).

Keep your money for the week if it does not go down. be patient and wait for the dump to happen. Tweak your strategy. Have some Plan B's and Plan C's.

[Ayers]

If you define this as a long term investment and only sell bitcoin when it hits a new ATH, or $100k, then I think 24k is still not too high, you will still be profitable. I DCA monthly, or whenever I have idle money, I will switch to bitcoin, to be honest, when bitcoin reaches 20k, then 24k like now, I am not happy because I think I have run out of opportunities to buy cheap. But we have to accept the present, as long as bitcoin stays below the old ATH, it is always worth buying and holding.

[salad daging]

I myself don't determine in terms of price I will continue to accumulate when the dollar is ready, for example, a week of $60 if the price is above $24k then I will still buy and enter DCA because this is still the lowest area in my reach so it is impossible to have to wait longer to get off because it's hard to guess.

It also depends on financial conditions, so I usually don't differentiate between going up or down, I just want to continue to accumulate without knowing the price in my principles, but if it's above $ 30k then I will consider returning in that area to make sure how big it is. must be bought in rising or falling conditions.