Failed DCA Strategy When Buying Bitcoin

[safar1980]

The owner of this address bought a million dollars worth of Bitcoin every day from August 11, 2021 to January 1, 2023.

https://bitinfocharts.com/bitcoin/address/bc1qw0pswznckx7s6tjmd2f5hrx4q6kc5nyrdxku50
Received:   17,536.2628 BTC (517 ins)   first: 2021-07-25   last: 2022-12-28
Sent:   17,536.2628 BTC (517 outs)   first: 2023-01-01   last: 2023-03-05
Profit from price change:   -239,395,601.9 USD

Approximately $460 million was spent buying Bitcoin, resulting in a loss of over $239 million. Perhaps this investor did not know that the DCA strategy is better to use for a longer period, or perhaps he found a more profitable investment.

[1715556274]

1715556274

[1715556274]

1715556274

[Wiwo]

Well not everyone focuses on the DCA approach,  some are just stolen hand who are. Accumulating Bitcoin for a longer period, if one thinks of all the DCA value then we, May not have memorable Bitcoin spending such as the Bitcoin pizza day.

Originally spending over ten thousand Bitcoin on a pizza is quite insane for someone who has a long-term DCA approach mindset,  but to him, he wants to just make that memory,  so it is to those who just stock up Bitcoin for the long term without minding to DCA they are among the Bitcoin OGs.

[Oshosondy]

The mistake is that he did not knew that 2022 will never be a good year for bitcoin and all other cryptocurrencies, but if you go back to history, we know that history will juxtapose into the future which was what happened again in 2022 just like 2018 when the price of all coins crashed.

He continued DCA at the wrong time and sold at the wrong time when he supposed to buy more or wait. Supposing he is able to wait again till 2024/2025 he would have gained massively.

In anything we are investing on, we should learn more about it before investing at all.

[Pandu Geddon]

he only went wrong when he decided to sell or continue DCA with poor planning. or it could be that there is an urgent need for him to sell the Bitcoin he owns even with the losses he already knows.
we will not know exactly what was planned. but what is clear is that he must have considered the loss when he had to sell the Bitcoin he had previously collected.

[blockman]

As long as the owner of that address will still hold the exact amount that he DCA and will wait for the bull run. It's possible that he can retain his losses and win over some of them. But this will require patience. DCA is still the best strategy but this should be a long term game.
If you're investing millions in it and you've become short as you buy BTC then you should be prepared for the risk that you're takin. It isn't easy to do this strategy consistently even if you've got a lot of money because the paper losses might just discourage you.

[mk4]

There will always be a losing trade if you choose a very specific timespan — even with the most bullish asset in existence. But if this dude continues on the DC-averaging in, then chances are, he/she'll be in the positives some time in the future.

[safar1980]

By the way, a lot of coins were sold on March 5, when bitcoin was worth $22,350. But after the sale, the price of bitcoin fell to 20,000 thousand dollars. The investor could lose even more than 10% of the capital. Bitcoins were most likely not sold on an exchange, but on a closed trading platform for whales.
This was probably not the last money, and if an investor spent 2-10% of his capital to buy bitcoin, then we see that billionaires also have losses.

[Bushdark]

By the way, a lot of coins were sold on March 5, when bitcoin was worth $22,350. But after the sale, the price of bitcoin fell to 20,000 thousand dollars. The investor could lose even more than 10% of the capital. Bitcoins were most likely not sold on an exchange, but on a closed trading platform for whales.
This was probably not the last money, and if an investor spent 2-10% of his capital to buy bitcoin, then we see that billionaires also have losses.

I cants count this as  a lose yet if he decided to hold his Bitcoin for a very long time. Accumulating Bitcoin is one of the best thing to think about when we want a long time investment. Although it might look like he is in loses now but I don't think so because holding for a very long time might be the reason for buying and accumulating. It is very important for us to do some research on Bitcoin timing to know when the market could fall or go up.

I am sure that there are so many accurate speculations outside there that can direct us on when to buy and when to sell so that we can be guided and not to make a mistake of buying before the market falls.

[Hamphser]

The owner of this address bought a million dollars worth of Bitcoin every day from August 11, 2021 to January 1, 2023.

https://bitinfocharts.com/bitcoin/address/bc1qw0pswznckx7s6tjmd2f5hrx4q6kc5nyrdxku50
Received:   17,536.2628 BTC (517 ins)   first: 2021-07-25   last: 2022-12-28
Sent:   17,536.2628 BTC (517 outs)   first: 2023-01-01   last: 2023-03-05
Profit from price change:   -239,395,601.9 USD

Approximately $460 million was spent buying Bitcoin, resulting in a loss of over $239 million. Perhaps this investor did not know that the DCA strategy is better to use for a longer period, or perhaps he found a more profitable investment.

Well, its their money and its up to them on how they would really be that doing into that and also it wasnt just that wrong because we dont know if he do looks after for the long term prospect and not really just into that point. His portfolio might really be that negative (for now) but that owner of said address does really know on where it would be heading. There's no point on cutting losses and there's no point that he would be spending up tons on something that wouldnt be worth. We are talking about millions of dollars on here on which it would really be just that normal that there's always that certain risks because not
everything it would really be going on what we do expect or plan but in speaking about potential then it does really have.

DCA on bitcoin isnt really that bad because sooner or later, we would really be seeing the fruit on what we have done earlier. We might not able to know on how long it would be but
for sure it would really be something that it is really worth to dive in for.

[decodx]

The owner of this address bought a million dollars worth of Bitcoin every day from August 11, 2021 to January 1, 2023.

https://bitinfocharts.com/bitcoin/address/bc1qw0pswznckx7s6tjmd2f5hrx4q6kc5nyrdxku50
Received:   17,536.2628 BTC (517 ins)   first: 2021-07-25   last: 2022-12-28
Sent:   17,536.2628 BTC (517 outs)   first: 2023-01-01   last: 2023-03-05
Profit from price change:   -239,395,601.9 USD

Approximately $460 million was spent buying Bitcoin, resulting in a loss of over $239 million. Perhaps this investor did not know that the DCA strategy is better to use for a longer period, or perhaps he found a more profitable investment.

So, how can we really be sure if it's a regular person or a fund? And how do we know if they actually sold the bitcoin or just moved it to cold storage? As far as I can tell, there are still 2535 BTC just chilling at the address bc1qnujzvts45qka3cr2eqqw8ur3q6g6s0ze2wlk5m, which, in my opinion, seems like a cold wallet. Prior to the main transfer, there were two transactions of +1 BTC and -1 BTC, which appear to be test transactions in my view. That's how I would go about it, at least.

[Franctoshi]

The mistake is that he did not knew that 2022 will never be a good year for bitcoin and all other cryptocurrencies, but if you go back to history, we know that history will juxtapose into the future which was what happened again in 2022 just like 2018 when the price of all coins crashed.

He continued DCA at the wrong time and sold at the wrong time when he supposed to buy more or wait. Supposing he is able to wait again till 2024/2025 he would have gained massively.

In anything we are investing on, we should learn more about it before investing at all.

Obviously looks like this investor don't have a proper plan to manage his Bitcoin investment or have good knowledge about investment in Bitcoin, someone investing with such an huge amount of money needs proper Bitcoin education,I guess he wouldn't have sold at where he should have hold except if had some problem he needed money to sort himself out. Had this exact experience during my first time investing in Bitcoin, some time around 2017, I bought at the top and sold at low price because I didn't know anything as of then.
Lastly Patient is another key thing we need even when market goes against you because it will definitely go against you as point.

[bettercrypto]

The logic here is very simple, as long as the holdings of bitcoins accumulated or accumulated through DCA are not sold, even if their value drops or stumbles a lot in the market, it cannot be said that he has lost or lost. in saving Bitcoin.

      Because we know that Bitcoin is volatile, and its holder must understand this, and they must also be long term holders who do not care about the price movements that happen in the market because they have a time frame when to sell it.

[taufik123]

The logic here is very simple, as long as the holdings of bitcoins accumulated or accumulated through DCA are not sold, even if their value drops or stumbles a lot in the market, it cannot be said that he has lost or lost. in saving Bitcoin.

      Because we know that Bitcoin is volatile, and its holder must understand this, and they must also be long term holders who do not care about the price movements that happen in the market because they have a time frame when to sell it.

Yes, as long as you don't sell it, the assets will remain but only the value will decrease.
If it is said that it fails, then it is not true. DCA will provide more asset accumulation with different price values.

Bitcoin is indeed volatile, not even just bitcoin, all altcoins will be more volatile because they are influenced by Bitcoin.
The price movement that continues to fall provides a good opportunity to start buying, and doing DCA with funds that have been provided from the beginning.
Then hold for the long term. Then the profit will be more if the main price target has been reached.
They must be prepared for all conditions in the crypto market.

[GreatArkansas]

I believe that this is not the only Bitcoin wallet address of this person, what if there are still a lot of Bitcoin addresses of this? Because if you got a lot of money like this, you are smart enough not to store them in just 1 wallet or address, to be more safety.
But if we only base on this Bitcoin address, yes it's really huge loss for this address. But we'll never know what is the strategy of this Bitcoin address owner.

[mk4]

I believe that this is not the only Bitcoin wallet address of this person, what if there are still a lot of Bitcoin addresses of this? Because if you got a lot of money like this, you are smart enough not to store them in just 1 wallet or address, to be more safety.

Just a heads up that distributing bitcoin/crypto holdings over multiple wallet addresses doesn't necessarily mean it'll be more secure, as you could be just splitting up risk. Sometimes, it's better to put all your eggs in one basket and watch that basket carefully.

[ethereumhunter]

The logic here is very simple, as long as the holdings of bitcoins accumulated or accumulated through DCA are not sold, even if their value drops or stumbles a lot in the market, it cannot be said that he has lost or lost. in saving Bitcoin.

      Because we know that Bitcoin is volatile, and its holder must understand this, and they must also be long term holders who do not care about the price movements that happen in the market because they have a time frame when to sell it.

If he sent his bitcoins to another wallet and it stayed there during the bull run waiting period and still did DCA during this time, he would make a big profit. We also don't know if it was sold or transferred to another wallet. But what is certain is that we must keep doing DCA before the price increases again (although now bitcoin price has started to increase) and not focus on just seeing what other people are doing. We can miss doing DCA if we compare one wallet to another while we haven't managed to collect a lot of bitcoins in this waiting period. So use this waiting period to our advantage.

[adaseb]

DCA doesn’t always work. If you use dca to enter and exit trades then it won’t help you in the bottoms and tops. If you spend too much time buying at the top or selling at the bottom then you would be better off just buying everything at once.

It’s not a full proof strategy. When Bitcoin went below $20k, I bought a lot. I didn’t dca because I knew it wouldn’t stay below $20K for long and I would be buying it at a higher price which is what happened. Same when it was over $50K, just sold everything pretty much because I knew the top was near.

[safar1980]

By the way, a lot of coins were sold on March 5, when bitcoin was worth $22,350. But after the sale, the price of bitcoin fell to 20,000 thousand dollars. The investor could lose even more than 10% of the capital. Bitcoins were most likely not sold on an exchange, but on a closed trading platform for whales.
This was probably not the last money, and if an investor spent 2-10% of his capital to buy bitcoin, then we see that billionaires also have losses.

I cants count this as  a lose yet if he decided to hold his Bitcoin for a very long time. Accumulating Bitcoin is one of the best thing to think about when we want a long time investment. Although it might look like he is in loses now but I don't think so because holding for a very long time might be the reason for buying and accumulating. It is very important for us to do some research on Bitcoin timing to know when the market could fall or go up.

I am sure that there are so many accurate speculations outside there that can direct us on when to buy and when to sell so that we can be guided and not to make a mistake of buying before the market falls.

Bitcoin was bought for 11 months for more than $30,000 and for 6 months for less than $30,000. If bitcoin purchases continued in 2023, then the strategy could have yielded results, but everything was spoiled by purchases of bitcoin more than $ 50,000
When miners make a big profit due to the difference between the price of mining a coin and the sale price, then you can’t buy.

[FatFork]

I see this was also discussed on reddit a few months ago. I would not say that this is a "failed DCA strategy" of an individual, most likely it is a fund of some sort or even cold storage that is being moved to another wallet. I would assume that the movement was initiated by someone accessing the funds and moving them manually, or some automated process (this would explain why it was moving in chunks rather than all at once). Besides, the entire fund is still sitting at the new addresses and has not been moved to any wallets of known exchanges, so I think it is wrong to assume that the Bitcoins have been sold.

All in all, OP, I think your statement about "failed" DCA strategy is misleading to say the least. There are many other possible explanations for what happened here. How do you know that Bitcoins were actually sold? No clear evidence exists in the blockchain of any such sale. So, I think it's pretty clear that there was no sell-off and the coins were simply transferred to new addresses, possibly as part of an update to improve security.

[Aanuoluwatofunmi]

The owner of this address bought a million dollars worth of Bitcoin every day from August 11, 2021 to January 1, 2023.

https://bitinfocharts.com/bitcoin/address/bc1qw0pswznckx7s6tjmd2f5hrx4q6kc5nyrdxku50
Received:   17,536.2628 BTC (517 ins)   first: 2021-07-25   last: 2022-12-28
Sent:   17,536.2628 BTC (517 outs)   first: 2023-01-01   last: 2023-03-05
Profit from price change:   -239,395,601.9 USD

Approximately $460 million was spent buying Bitcoin, resulting in a loss of over $239 million. Perhaps this investor did not know that the DCA strategy is better to use for a longer period, or perhaps he found a more profitable investment.

Talking about this kind of experience whereby an investor made a high and long term volume of purchase on bitcoin than taking the DCA method for his purchasing pattern, the two have an advantage and disadvantages but we have to considers the volume and quantity of purchase made here, if he continues to wait in using a DCA pattern he may not achieved a uniformity in his buying price especially when the market price is already bearish, buying much at once is a good idea because the price will also rise with time.

If it was then in time of uncertainties whereby you buy and the market goes more dip, you would have loose some amount because DCA method is best for this kind of situation, but the overall opportunity is if you can hodl for long, till after the next halving, there's high probability for you to make more money.