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

[lionheart78]

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

When it comes to DCA, I allocate the same amount weekly.  Let us say I have free funds of $40 weekly, then that is the amount I am spending to DCA.  Price of Bitcoin is irrelevant, I just buy $40 regularly regardless it is dumping or surging.

Since my goal is long term and thinking that the price today is nothing compare to the price of Bitcoin in the future, I believe the most important part is that we are adding more Bitcoin to our stash in a regular basis.

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[posi]

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.

If so, things will be easier, people are expecting bitcoin to hit $100k in the next bull season in 2025. And would you try to predict what will be the ATH that bitcoin will reach in 2030? 150k or 200k or more...Set your sell target and compare it to the current buy price, you will know whether to buy now or wait for bitcoin to correct for a better price. For me, 24k and 23k don't make too much of a difference, because it's a long-term investment.

[michellee]

I have set the same amount of fiat money to buy bitcoins, regardless of the bitcoin price. So it doesn't matter if the bitcoin price is now $24k or even more because I didn't increase the fiat money to buy bitcoins. Maybe the amount of satoshi I will receive is smaller if the bitcoin price goes up but that's okay because I have to adjust to the money I have. Also, with this increase, there will be a correction moment for the bitcoin price and it is then that maybe my number of satoshis will increase.

Doing DCA every week is good to continue. But you must have a target for when to stop investing in bitcoin, whether it's a target for how many years or at what price you will stop investing in bitcoin and just wait for moments of high increases or even prolonged rallies later.

[Lucius]

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

If you are already convinced that the price will be $23k or lower again, why don't you sell your 0.08 BTC at a price that is currently around $25k and then buy at a lower price? To be clear, this is no financial advice, but DCA doesn't make much sense if you calculate the way you do it.

What if the price goes towards $30k and stays there for the next few months, and then rises again? Your average price simply has to increase because the price of BTC is increasing, or rather it is recovering to the levels where it was before it was affected by various scammers who shook the entire crypto market with their actions.

[noorman0]

-snip-
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,

I just take a simple strategy, then continue the DCA-2 formation or set the DCA-3 with a smaller buy level, eg $ 50 per buy. The DCA strategy must be as flexible as possible according to the portion of the funds. There is always an opportunity to take profits at every momentum, there are also no rules against doing DCA at a certain price level.

-snip-unable to save the fruits of your labour, you'll end up being poor.

Umm, I think you are exaggerating, the average person thinks DCA is the most effective in the long term investments.

[livingfree]

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?

When I am uncertain whether to buy or not, I just don't buy if I feel that it's quite high already. I'll wait for a couple of days to see if this increase will or won't decrease anymore.

By that time that I'm able to confirm that it's going to continue moving up then, I'll decide to just continue my DCAing again. That's usually the routine that I does.

But if you just want to be consistently accumulating then, whatever the price is, you'll buy.

[Finestream]

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.

The best time to buy is when the price is low so definitely, increase your DCA if there is more opportunity for a big buy. But when the price starts to rise again, just keep on DCAing but maybe control your expenses as it’s never a good time to buy when the price is quite high. As long as you spend the amount that you can afford to lose, that will be good enough.

[JamesDaniel90]

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

If you are already convinced that the price will be $23k or lower again, why don't you sell your 0.08 BTC at a price that is currently around $25k and then buy at a lower price? To be clear, this is no financial advice, but DCA doesn't make much sense if you calculate the way you do it.

What if the price goes towards $30k and stays there for the next few months, and then rises again? Your average price simply has to increase because the price of BTC is increasing, or rather it is recovering to the levels where it was before it was affected by various scammers who shook the entire crypto market with their actions.

I don't usually do this due to the risk of the price not going back down again but may do when we next pump as it has now gone back down to $23600.

Hopefully we fall back below $23000 again which is when I will next buy some more.

[Rikafip]

The best time to buy is when the price is low so definitely, increase your DCA if there is more opportunity for a big buy. But when the price starts to rise again, just keep on DCAing but maybe control your expenses as it’s never a good time to buy when the price is quite high.

Are you actually doing DCA if you are buying more when price is "low" and buying less when price "high"?

Point of DCA is to buy with the same amount at the regular intervals without worrying about current price as you are buying with the intention to hold for longer period of time. Its supposed to be hassle free and what you suggested him to do is everything but that.

[Lucius]

I don't usually do this due to the risk of the price not going back down again but may do when we next pump as it has now gone back down to $23600.
Hopefully we fall back below $23000 again which is when I will next buy some more.

There is always a risk, especially if you want to make a profit in the short term, or in the specific case to increase the number of your coins by selling at a higher price and then waiting for a dip to buy them back. That is why the DCA method is much safer and makes sense in the long term regardless of the fact that your average price will become higher over time.

However, every strategy can be adapted and you have not committed to anyone that you will use it in a certain period. In any case, it seems that you are going in the right direction, and the only question is how quickly the amount of your BTC will increase.

[Bananington]

do you buy the same amount each time or less as its more expensive?

Sticking to a a plan and strategy is what DCA is all about. Making the decision to change the amount you DCA depending on price is an inconsistent behavior that should not be accepted when you make the decision to DCA. One aim of dollar cost averaging is to assist you in developing the habit of being disciplined to commit to investing an amount. It does not mean that someone cannot decide to increase the money they allocate to Dollar cost averaging after a while, but what I am saying is, stick to an amount in a certain period, do not depend on the price in the market to decide how much you will DCA, choose an amount comfortable for you and stick with it until you feel like you can invest more or you should reduce your investment.

[Wind_FURY]

OP, buy more during the DIP, especially the DIP of a bear market. Why? Because it's giving us plebs another Golden Opportunity to buy Bitcoin with a > 50% discount from the last ATH. When the bullish cycle returns, for front-running, you'll be told that you "just got lucky". Got lucky for buying the DIP, to HODL, that no one wanted to buy?

[JamesDaniel90]

OP, buy more during the DIP, especially the DIP of a bear market. Why? Because it's giving us plebs another Golden Opportunity to buy Bitcoin with a > 50% discount from the last ATH. When the bullish cycle returns, for front-running, you'll be told that you "just got lucky". Got lucky for buying the DIP, to HODL, that no one wanted to buy?

Luckily I only started investing in Bitcoin when it crashed to $17000 in June last year and looks like I bought a nice chunk at the bottom too.

Like a lot of us I am sure I didn't expect it to pump this much over the last month but hopefully we have at least one more crash back to around $19000 again before the bull run starts so we can all buy more.

During the real lows in November/December I was more focused on altcoins but have seen quite a few pump at least so I am putting most of my profits into Bitcoin now.

[maydna]

I usually don't increase the money I use to buy bitcoins, especially if market conditions are in sideways mode. But if the market is down and the drop turns out to be deep, I usually add up the amount because I can earn even more bitcoins. And it is by using the DCA strategy that I can earn more bitcoins in every downturn that comes to the market. It depends on the strategy you use, and if you have read many recommendations from other members, you need to make your own choice, and all you need to remember is only to use the money you can afford.

[so98nn]

You have answered all your questions in your question itself.
I think buying at very high will shift your BEP towards higher peak target. Imagine having your BEP 30k (futuristic) and suddenly bitcoin drops all the way to 15k! What would you do at that time and how will you tackle the average price at that time. It will take lot of efforts for you to shift it down again.

Be cautious you might just get stuck into infinity loop and get fluctuated with your decisions as well. Better to decide where you want to reach in terms of profits? You can easily set the limits by then.

[franky1]

calculate a "value:premium" window of expectation that a spot market will wiggle WITHIN

EG most efficient method to acquire bitcoin is the most efficient mining on the planet
no one wants to sell at a loss below the most efficient bitcoin cost on the planet
set that as your bottom line value number

EG most in-efficient method to acquire bitcoin is the least efficient mining on the planet
on one wants to buy at a excess above  other methods to get bitcoin on the planet
set that as your top line premium number

in 2021 it was (my opinion of my math)
$10k-$75k value premium window   where the market was wiggling in the $30k-$69k

in 2022 it was (my opinion of my math)
$15k-$90k value premium window  where the market was wiggling in the $50k-$16k

so lets use say 2022

if the window is 15-90  you would want to buy more the closer it is to 15 and would have set a mid point at ~47k where you decide if you want to stop buying and maybe selling

this first quarter of 2023 is setting itself up as a $17-$110 window . which means dont expect 150k this quarter not anything really above 100k as being a expectation of a ATH this quarter

so while prices are below $25k its still low in the price and in the realms of good value so
buy more.
 0      16.5                   55                    110k
  ||||||||||||||||||||||||||||||||||||||||||||
            ^
          22.5

where by in my opinion i would want to buy less as the number start getting into the orange and red zones

or atleast split your investment up into amount you want to see returns in X years(under 4)
and amount you want to see returns in Y years(over 4). and only risk the Y year return on the orange, red zone. knowing its going to take that amount longer to get returns after corrections and next cycles

[_musab-scorpion_]

If I see green daily candle or pump over the week then I always wait for some correction…because it is necessary for Bitcoin to take some correction after a pump as the intraday traders have to book their profits …once they start booking their profits ,Bitcoin take some correction and I enters the market for some dca as the price is gonna be somehow down from its high of week….
As in today ..I’m not going to enter market and do dca …I gonna wait 2-3 days and will perform dca after some correction until and unless Bitcoin close its daily candle above 25,500 $

[$crypto$]

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

When it comes to DCA, I allocate the same amount weekly.  Let us say I have free funds of $40 weekly, then that is the amount I am spending to DCA.  Price of Bitcoin is irrelevant, I just buy $40 regularly regardless it is dumping or surging.

Since my goal is long term and thinking that the price today is nothing compare to the price of Bitcoin in the future, I believe the most important part is that we are adding more Bitcoin to our stash in a regular basis.

Buy regularly at any price because the bitcoin price is not so relevant so when there is free money every week then just buy it is in accordance with what we do with DCA every week, make sure that the current price is still quite low even though some say this is bullish.

Pretty sure the future goal will be more than today so keep piling on as many bitcoins as possible from DCA every week I do that because I believe the long term will be better than now.

[Kasabus]

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.

DCA is a good choice to improve our portfolio balance so definitely, if the price is a perfect buy because of its very low price, then its best  to buy more bitcoin and hold. However, if the price is still a good buy and yet it’s quite higher than the previous price, then it’s best to lessen our DCAing not only because the risk is high, but also there will only be small profits when you buy at already high price and then hold.

[indah rezqi]

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?

I tend to agree that buying on dips is better than staying consistent on investment time and pattern. Buy in dip has been said to be a great accumulation strategy for any asset including bitcoin, and it feels like there are a lot of people adopting this strategy to make profits on trades regardless of the trading time frame.

You can buy at any price if you have pattern or habit that you have been doing. For example you can do it every weekend before the closing price, or maybe at certain hour consistently. If the goal is for the long term, buying expensive is not a problem.