Failed DCA Strategy When Buying Bitcoin

[Flexystar]

Hmm, lot of calculations goes into the DCA. To work on it technically we need to understand how much he sold, how much he bought back from the same money that is compounding. If they have done compounding investment which is buying from the profit + principle amount they are actually way profitable than what we think. If we just going to see a overview such as buying and selling at different prices then that’s going to mess up all the calculations for sure.

Adding more comments from above posts such as cold storage movement etc the math never adds up. May be the actual profits data could only be shared by owner of that address.

[1714641571]

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[pawanjain]

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.

Different people have different opinions and it doesn't matter if the current value of his investment is low.
It would definitely increase by a lot when the price of bitcoin increases and since he would have a good average price by then, his investment would yield him nice returns.
Timing matters in any kind of investment but DCA is a great strategy if we invest for a long term.

[Bananington]

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

Investing a million everyday consistently means it is almost an amount that they can do without because they make more. A million sounds big but that is an amount of money that some people can keep in an investment daily, that can be a reason the investor decided not to reduce the money he was putting daily. If he has not yet become discouraged with this investment and sold it off at a loss, he will definitely make back his money when bitcoin becomes bullish. The key is to keep the bitcoins safe.

[Hamphser]

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

Investing a million everyday consistently means it is almost an amount that they can do without because they make more. A million sounds big but that is an amount of money that some people can keep in an investment daily, that can be a reason the investor decided not to reduce the money he was putting daily. If he has not yet become discouraged with this investment and sold it off at a loss, he will definitely make back his money when bitcoin becomes bullish. The key is to keep the bitcoins safe.

A certain investor wouldnt really be investing millions if he does not have that confidence with Bitcoin because even if we do speak into traditional investment on which a certain individual wouldnt really be
making out such decision if they dont have that long term perspective which does simply means that he has really that confidence with it. It might be looking some sort of error or mistake but we arent
that blind on how Bitcoin did fly with colors specially when bull run kicks in. In order for someone to gain then it would really be just that normal for you to need up to risks.
You wouldnt gain nothing if you wont do nothing.

People would be just simply be amazed and would be focused into someone who do make out huge gains on the time that bull run do happen. This is why its better to mind our own
and not really that too judgmental on whatever these millionaires been doing with their investment decisions. They wouldnt really be making such step
if they wouldnt really be having those considerations.

[irhact]

Investing a million everyday consistently means it is almost an amount that they can do without because they make more. A million sounds big but that is an amount of money that some people can keep in an investment daily, that can be a reason the investor decided not to reduce the money he was putting daily. If he has not yet become discouraged with this investment and sold it off at a loss, he will definitely make back his money when bitcoin becomes bullish. The key is to keep the bitcoins safe.

So many things would had happened in the situation and we aren't aware of, maybe he was given a wrong advise of buying bitcoin when he started that the price will rise the next year but the person giving the advice doesn't know how the market works. The inventors might be some old rich guy that's looking to double his money quickly and would had be disappointed after DCA didn't work for himself then quit.

If he wasn't looking for a quick profit, he won't have sold his Bitcoin instead continue holding and be buying more. Maybe it could be he has decided to cut his losses short and diverted the capital to other investment that he feels will give him more profit in the shortest time.

[Sim_card]

He might have also sold out of panic of losing out or there was a necessity for him that requires him to go back to his bitcoin investment. That is why when one is accumulating his coins,he should have an emergency spending and also know about the market strategy to enable him overcome the challenges during the bear market. The worst of it is that if you sell due to panic or due to the fact that you invested all your funds on bit coin,when the price gets very dip,your might get discourage and sell off because of lack of knowledge on how to hold for long to make good profit. When holding for long,there is a time that you buy and the time to stop buying.

[jeraldskie11]

The DCA strategy, in my opinion, works because many people utilize it. That is usually used by experienced investors who have shown to make money. DCA, in my opinion, won't work if he did not understand how to read a market phase. If you use DCA during the distribution period, you will almost certainly lose a lot of money because the market's next move will be downward. As a result, if you use the DCA strategy to invest, you must also understand how to analyze the market to increase the probability of being profitable in the future.

[KingsDen]

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.

Might also not be an investor let alone a DCA investment. It may be a random person trying to use bitcoin transactions as a payment escape channel.
Sent up their format and wait for deposits (once, twice, thrice,  maybe time to cash out)

Who knows he might have found a shit coin to perform pump and dump with his team and he was asked to sell at loss since he's gonna make the profits more in his new investment.

[EarnOnVictor]

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
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.

All I see is an unwise/inexperienced person trying to aggressively invest in Bitcoin if such is truly buying it newly but I doubt that. This person might already have his coins and trying to safely keep them in many other addresses. Regardless, educating ourselves on how to invest is so important, this is as reading the chart is vital so that we will not just be blind investors. Imagine someone started investing around the peak point of Bitcoin and continues to pump it despite the market being in a long-term bearish phase is foolishness.

But thanks to Bitcoin, the monetary value could be lost for a long time through this, but in the end, such would still laugh if the coin could be kept untouched as the future of Bitcoin is getting more promising every day.

That said, the DCAing should also not be faulted here, there is no perfect approach for it, but one should be more speculative to know when it's a no-no to invest in the market at some times. These are times when the market is obviously bearish in trend.

[yhiaali3]

Most likely this is money laundering, whoever spends huge amounts of money to buy bitcoin at the rate of a million dollars a day surely knows a lot about bitcoin and the DCA strategy.

Also, it is unlikely that whoever has this huge money needed it to start a new investment or found a more profitable investment!!! It is not reasonable to lose 239 million dollars to start a new investment!!! This is suspicious and utterly stupid.

He might have sent the bitcoin to another wallet, as it is highly unlikely that he would have sold at such a large loss.

[palle11]

Might also not be an investor let alone a DCA investment. It may be a random person trying to use bitcoin transactions as a payment escape channel.

I looked at the transaction history and it doesn't look to me he is an investor who intends to DCA for hodling purpose, no he is not. I think this is not DCA strategy because we can see barely 24 hours interval for another transaction at which time btc may as well be at same price from the first transaction for interval of each.

What I think is that his action is suspicious and may be hidding some fund from an illegal transaction.

[erep]

Most likely this is money laundering, whoever spends huge amounts of money to buy bitcoin at the rate of a million dollars a day surely knows a lot about bitcoin and the DCA strategy.

Also, it is unlikely that whoever has this huge money needed it to start a new investment or found a more profitable investment!!! It is not reasonable to lose 239 million dollars to start a new investment!!! This is suspicious and utterly stupid.

He might have sent the bitcoin to another wallet, as it is highly unlikely that he would have sold at such a large loss.

I have checked several recipient wallets from the main wallet transfer transaction, strongly indicating that he distributed balances to be sent to various wallets, assuming they might be money laundering or he deliberately transferred assets because the main wallet was indicated to be unsafe for asset deposits.

If he just moves assets to various other wallets then there is no word "loss" 239 million dollars of primary asset, recorded loss is just accumulated based on the purchase price so he still holds the same amount of BTC but his assets are stuck in multiple wallets, he may have accumulated all BTC assets in one portfolio, because there's no way he could throw away 239 million dollars for any reason.

[inthelongrun]

There is a possibility that the person does not have enough funds to risk in order to continue his daily DCA. This is the first time I heard about someone making a DCA daily. I don't think it makes sense. Maybe a weekly DCA as the shortest span. And DCA system is better used with a long-term goal.

Besides, people should at least familiarize things first before venturing especially if we are talking about big amounts. Over the years, bitcoin's halving is always consistent so far as where the price goes. You don't do a DCA when the price is at its highest or at least make sure that your DCA is enough to cover until the next bitcoin halving. What happened to this guy who is doing a DCA during a major bull run and was only capable of doing it for a few months.

Recovery is still possible though if the person is able to hold it until next year or by 2025.

[tjtonmoy]

DCA does not always guarantee you profits. Good planning with market understanding on when to sell and the will to hodl long enough gives you profit. I don't know the reason behind that man's intention to sell, but what he did was wrong if you are willing to get profit from your DCA investment. Hasn't he calculated the total investment and about profit and loss? If he had, then it was a foolish decision, or he was forced to do it. But the lesson to learn from this is, only buying doing DCA doesn't give you profits if you are not able to make the right decision at the right time. This is quite interesting story and we have a lot to learn from it.

[Johnyz]

DCA also needs a perfect timing, and he should already know this by having such money.
Maybe its just a paper loss, and selling at a big loss is not a good idea at all. Better to wait for the next bull market and for sure he will gets more as BTC is aiming for a new ATH. After this big correction, we might see a better price. I’m doing DCA and I’m playing long, next ATH is the target after all.

[bettercrypto]

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.

Volatility is really one of the disadvantages of bitcoin, and if that person implemented Dca, it is because he believes in Bitcoin so much that he was able to buy such a large amount of bitcoin.

      And there is no doubt that that person is rich, because the value of 460M$ is a huge amount of money, so if it hasn't been sold and if the value of Bitcoin becomes 100k$ on the day of the Bull run, he will still get his money back losses.

[AmoreJaz]

DCA does not always guarantee you profits. Good planning with market understanding on when to sell and the will to hodl long enough gives you profit. I don't know the reason behind that man's intention to sell, but what he did was wrong if you are willing to get profit from your DCA investment. Hasn't he calculated the total investment and about profit and loss? If he had, then it was a foolish decision, or he was forced to do it. But the lesson to learn from this is, only buying doing DCA doesn't give you profits if you are not able to make the right decision at the right time. This is quite interesting story and we have a lot to learn from it.

we don't know all the angles in this story, hence, can't deduce what really happened. but on the note about the use of DCA, the knowledge really won't assure that you can get profits. it is still on how you implement such strategy during your actual trading.

[Yamane_Keto]

DCA Strategy is a strategy for beginners who do not know how to invest or do not have enough experience and resources to be able to communicate with advisors, do you think that someone who has access to a million dollars a day will not have advisors to know if this is the right time or not?

The goal may be to achieve a loss so that he does not have to pay taxes in those currencies, or to try to achieve an accounting loss, or for any reason, but this does not indicate that his strategy is stupid or wrong. This address cannot be inferred as a reason for failed DCA Strategy When Buying Bitcoin.
I googled it and didn't find any information about bc1qw0pswznckx7s6tjmd2f5hrx4q6kc5nyrdxku50 does anyone know?

[tjtonmoy]

we don't know all the angles in this story, hence, can't deduce what really happened. but on the note about the use of DCA, the knowledge really won't assure that you can get profits. it is still on how you implement such strategy during your actual trading.

DCA is the best in any kind of situation. But how you are going to make profits depends on your ability to calculate the total spend amount, increase or decrease of value, analysis on when it's the best time to sell and what will happen to the market after this period of time and which will be the best option  in that situation.
So basically profits from DCA depends on choosing the right time to sell and will to hodl until you see potential profits. So what helps you do that? Knowledge for sure.

[bitzizzix]

I don't care for the guy, because I don't think DCA's strategy will fail as long as it aims for the long term. And it doesn't matter what the market conditions are because the goal is as long as they haven't hit the highest price or have the maximum profit they will never sell it, and always take advantage of the dips that occur, and also to increase buying.
and for those who fail maybe because they don't really understand the DCA strategy and also don't have too much knowledge about everything related to bitcoin, because in my opinion the DCA strategy is the best. As long as it is done patiently and consistently and makes purchases and sales at the right time.