Failed DCA Strategy When Buying Bitcoin

[dragonvslinux]

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.

You're missing the main point here: Why do you think this person sold?

Just because they emptied his wallet, or because it appears they stopped DCA? Maybe they just started to do DCA with another account... who are we to know.

Also to note is a few of transactions leads to coins not ending up on exchanges, a few examples looked at the biggest transfers:

4,999 BTC: https://bitinfocharts.com/bitcoin/address/bc1qeth6n6ryxexvkx34wnx3nuynun4474h3j0gkhw
4,999 BTC: https://bitinfocharts.com/bitcoin/address/bc1q2we5eqjj8je6lz9xwjattpc3pn4jejc5h0s70f
2,000 BTC: https://bitinfocharts.com/bitcoin/address/bc1qpp3v9k4g5hqjfztextp5nn9808lcru9j8m4n2p

This already accounts for 12K of 17K Bitcoin that wasn't sold. It looks like they just consolidated numerous inputs into a few different addresses for now.

[tvplus006]

...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.

I think that anyone who is financially able to invest a million dollars every day should definitely know about the DCA strategy. It is only obvious that he decided to sell all his bitcoins and this decision may be related to financial problems in real business, or it is possible that he invested in something else, for example Pepe.

[Husires]

What I am surprised is that countries like El Salvador made similar decisions to buy Bitcoin and we discovered that they did not make a good amount of profit, or at least they could have made more profit if they counted the purchase date, so understanding the appropriate strategy for you and the trading period is much more important as the DCA Strategy is for long-term trading and using it With the intention of obtaining a profit within less than 5 years, it may mean a loss.

The strategy has so far proven to be successful for those who want to buy and wait. Whoever bought during the year 2017 lost during that period, but it is an excellent investment if he keeps it until the year 2021 and so on.

[KingsDen]

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.

Exactly my thought when I just looked up for the transaction. The dollar cost averaging system of investment is one that has somewhat a fix time of investment (weekly or monthly), or strategically when it is obvious in the market that a buy order needs to be placed.
The transaction doesn't look genuine to me.

What I am surprised is that countries like El Salvador made similar decisions to buy Bitcoin and we discovered that they did not make a good amount of profit, or at least they could have made more profit if they counted the purchase date, so understanding the appropriate strategy for you and the trading period is much more important as the DCA Strategy is for long-term trading and using it With the intention of obtaining a profit within less than 5 years, it may mean a loss.

El Salvador although is a country and not an individual, so there story might be different. However, El Salvador didn't sell at lost, rather they held to their bitcoin and at a time started daily DCA which I don't know the process for now.

[shivansps]

If he invested in the long term, DCA is a good strategy and he'll probably win
We well know that until he didn't sold them, he did't lose. Bitcoin is so volatile he should't forget about it
If this person continues on DC-averaging in, probably, he'll will take profit in the future. Hold for the long term
In any way I wish good luck to this person, it's a big money

[JoyMarsha]

I don't think the owner of the bitcoin address sold the Bitcoin he bought at a high price for that loss price. The price loss is a huge amount to hold on to that someone can easily lose when he knows that he can get his losses back if he is patient.

Someone who believes in Bitcoin can't pump in a huge amount in bitcoin, only to later sell it all at once, not even selling a little of his bitcoin at a loss but choosing to sell all. That sounds weird and unbelievable to think of.

What I can grab out of this, is the owner of bitcoin transferred the said amount of Bitcoin to another bitcoin address.

[South Park]

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.

The fact is there is not a foolproof strategy to make money on the markets, even something as simple as buying and holding our bitcoin can produce losses if people cannot perform the strategy for long enough, DCA is a good strategy but it requires a huge commitment to keep investing no matter what the price is at the moment, while at the same time you can hold your assets for long enough so they can reevaluate themselves, and this is something the majority of the investors out there cannot do.

[Poker Player]

...DCA is a good strategy but it requires a huge commitment to keep investing no matter what the price is at the moment, while at the same time you can hold your assets for long enough so they can reevaluate themselves, and this is something the majority of the investors out there cannot do.

I would say that DCA does not make sense to do it in Bitcoin for less than one cycle, that is, for less than 4 years, because otherwise it can happen to you like the case explained in the OP that caught the last rise of the previous cycle and all the way down. To do it right, he should have continued doing DCA until August 2025.

[savetheFORUM]

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.

The fact is there is not a foolproof strategy to make money on the markets, even something as simple as buying and holding our bitcoin can produce losses if people cannot perform the strategy for long enough, DCA is a good strategy but it requires a huge commitment to keep investing no matter what the price is at the moment, while at the same time you can hold your assets for long enough so they can reevaluate themselves, and this is something the majority of the investors out there cannot do.

Those with paper hands cannot hold on to their assets if they see the market crashing even if it's just a minor crash, they simply start panicking right at the moment they see the value of their bought Bitcoin falling and they start selling right at that moment thinking that they will lose everything they have which doesn't actually happen because the price eventually goes up again.

And doing DCA doesn't mean that someone needs to buy even when the price is going up if they have already bought at a lower price, they should simply keep holding what they've bought instead of buying at a higher price.

[ajiz138]

I think that anyone who is financially able to invest a million dollars every day should definitely know about the DCA strategy. It is only obvious that he decided to sell all his bitcoins and this decision may be related to financial problems in real business, or it is possible that he invested in something else, for example Pepe.

They should already understand the DCA strategy, especially with a large enough amount. I think they know what strategy is needed in the bitcoin investment, with the funds being transferred, they might not sell it, just split it into several wallets or have something they want. plan while we can only speculate what they are doing with the bitcoin.

But I don't think that with millions of dollars just to invest in this meme coin (pepe) is far beyond my reasoning because people who understand bitcoin investment usually won't take risks on large amounts of shitcoin.

[Oilacris]

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.

The fact is there is not a foolproof strategy to make money on the markets, even something as simple as buying and holding our bitcoin can produce losses if people cannot perform the strategy for long enough, DCA is a good strategy but it requires a huge commitment to keep investing no matter what the price is at the moment, while at the same time you can hold your assets for long enough so they can reevaluate themselves, and this is something the majority of the investors out there cannot do.

Those with paper hands cannot hold on to their assets if they see the market crashing even if it's just a minor crash, they simply start panicking right at the moment they see the value of their bought Bitcoin falling and they start selling right at that moment thinking that they will lose everything they have which doesn't actually happen because the price eventually goes up again.

And doing DCA doesn't mean that someone needs to buy even when the price is going up if they have already bought at a lower price, they should simply keep holding what they've bought instead of buying at a higher price.

Usually noobs does have this kind of behavior on which on the time that they would be seeing some small % negative into their ports whether they do have bought bitcoin or other altcoins which
they would really cut loss and on the time that it would be making out some slight increase then there's that feeling of FOMO which it is really that something no sense to be done.
You would really be able to find for yourself and realize that this is something that needs to be controlled or else you would really be losing money or would really be missing out opportunity
for you to make profits or chances to make some gains too.

Failed DCA strategy with Bitcoin? I dont think so and that person who had been mentioned on OP on accumulating coins but ended up on negative? Its just fine as long
you dont sell it since its paperloss and its not realized until you would be closing up your position. Time will come that those DCA or accumulation you had done
would really be making out some fruit or result someday.

[panganib999]

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.

To each his own and in my honest opinion you don't really lose anything in bitcoin unless you sold it but that's definitely a big loss to tank. I don't think he did the DCA strat wrongly here though assuming that he has enough time considering he did this in the span of almost 2 years. It's just that his timing is not that great considering the losses that bitcoin took last year from all the drama. Pretty sure he's a diamond-hand too that holds as much as he could before selling, so he's good to go as long as he follows through with that plan. Otherwise if he has already sold most of his bitcoin holdings then he's really in for a massive loss lmao. Losses aren't realized until you sold as they say.

[goaldigger]

If he invested in the long term, DCA is a good strategy and he'll probably win
We well know that until he didn't sold them, he did't lose. Bitcoin is so volatile he should't forget about it
If this person continues on DC-averaging in, probably, he'll will take profit in the future. Hold for the long term
In any way I wish good luck to this person, it's a big money

As long as you are still holding and, its just a paper loss and if he will not panic during this bear trend, there’s a big chance for a bigger profit. DCA might be boring or might discourage you in the long run but if you have the goal and you want to focus on that, you can achieve it. DCA with Bitcoin is not wrong, try also to but other coins and again the golden rule is never go all in, we have to practice this.

[Wexnident]

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.

Ehh Idk, man DCA'd for 1 1/2 year, I don't think he'd be dumb enough to sell it all at once at a loss that big. He probably separated it into different wallets or something similar to that, or maybe just a new strategy he's trying out. Definitely don't think he sold it though. Plus with the amount of money he has, I don't think a financial advisor would be that hard to get and they should know about the cycles of the Bitcoin market, even if it was simply basing it off of history.

That, or some kind of emergency took place that needed this amount of money but what could possibly need that much?

[Wiwo]

...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.

I think that anyone who is financially able to invest a million dollars every day should definitely know about the DCA strategy. It is only obvious that he decided to sell all his bitcoins and this decision may be related to financial problems in real business, or it is possible that he invested in something else, for example Pepe.

Well have anyone also thought wether the individual was a government official who have invested stolen money into Bitcoin then by buying a $1 million every day for almost a year and he just not interested in the dollars cost an average of both his entry point and even the exit price of Bitcoin.

But bitcoin as an asset is best held for the long term to be able to properly fall between its potential profits making.

[CarnagexD]

If he invested in the long term, DCA is a good strategy and he'll probably win
We well know that until he didn't sold them, he did't lose. Bitcoin is so volatile he should't forget about it
If this person continues on DC-averaging in, probably, he'll will take profit in the future. Hold for the long term
In any way I wish good luck to this person, it's a big money

As long as you are still holding and, its just a paper loss and if he will not panic during this bear trend, there’s a big chance for a bigger profit. DCA might be boring or might discourage you in the long run but if you have the goal and you want to focus on that, you can achieve it. DCA with Bitcoin is not wrong, try also to but other coins and again the golden rule is never go all in, we have to practice this.

This is a good point. Unless it's a leveraged then you'll just receive a margin call. But holding it long term, unless you cut loss it sell your asset, you won't lose any. That is what you call unrealized profit and loss. Either you dollar cost average going higher or much better if it's on a bear market where price is truly at discounted price. You buy more as log as you believe that the asset BTC will go higher than your average buying price, it will be a win.

Transferring of funds doesn't equate the holder sold it, that person might just probably stack it on a safer vault, exchange, or hard wallet. So unless he sell it or loose it, It will not be a loss but only a normal fluctuation of price.

[bettercrypto]

What I am surprised is that countries like El Salvador made similar decisions to buy Bitcoin and we discovered that they did not make a good amount of profit, or at least they could have made more profit if they counted the purchase date, so understanding the appropriate strategy for you and the trading period is much more important as the DCA Strategy is for long-term trading and using it With the intention of obtaining a profit within less than 5 years, it may mean a loss.

The strategy has so far proven to be successful for those who want to buy and wait. Whoever bought during the year 2017 lost during that period, but it is an excellent investment if he keeps it until the year 2021 and so on.

First I agree with what you said that dca is only applicable for people willing to hold for a few years, it is not recommendable for short-term holdings only. And it is perfect for long-term holders. If only I had a lot of bitcoin during 2017, I could have bought bitcoin during these days and sold it during 2021, probably my life would have improved somehow.

It's just that during these times of 2017 I made a lot of money at least in crowdfunding projects, I didn't think of buying bitcoin at this time. No one knew that one bitcoin would reach more than 60k$ in those days. So now, I'm also trying to save at least a little so that I won't be at zero in the coming bull run next year.

[doomloop]

To each his own and in my honest opinion you don't really lose anything in bitcoin unless you sold it but that's definitely a big loss to tank. I don't think he did the DCA strat wrongly here though assuming that he has enough time considering he did this in the span of almost 2 years. It's just that his timing is not that great considering the losses that bitcoin took last year from all the drama. Pretty sure he's a diamond-hand too that holds as much as he could before selling, so he's good to go as long as he follows through with that plan. Otherwise if he has already sold most of his bitcoin holdings then he's really in for a massive loss lmao. Losses aren't realized until you sold as they say.

Someone who has money in millions definitely understands how finances work and he probably also know how to manage risks and the investments he made, with all these speculations, we are probably missing something because a millionaire or maybe a billionaire will surely not make such a move that will cost them more than 230 million dollars. There must be another side of the story that is unknown here.

If I have enough money to be able to buy Bitcoins worth a million dollars everyday, I would probably understand how things work, especially if I'm doing DCA, I will surely keep a track of my investments and my target price for selling, and even if I sell some of it, I will surely be doing it for a reason known to me.

[ShowOff]

There is always potential for loss in trading and investing strategies but if this guy persists then chances are he will get good returns in the next 1-2 years. Of course there is a reason why I say that and maybe you can already guess it.

If this guy went out and stopped trading and took that big loss, then maybe he really did let go of the loss. But I think he just needs to change and plan a better strategy especially the potential for better bitcoin after the halving can be expected. Of course I don't think this guy has quit forever and tried something else, but maybe he's just waiting for the right moment to move on.

[GeorgeJohn]

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.

During purchasing of bitcoin for investment so that the investors will as well make its own profit, they does not think of the lose during investment because they all know that if you have the spirit of panicking during investment it will definitely affect you, so good investors who knows the duration of their investment will take before selling out their coin especially bitcoin, and secondly bitcoin have potential theirs no time you want to sell your bitcoin it will not have value, so the longer you keep your bitcoin the more it's close bullish season, when you lack panicking towards your investment its when you will make profit in cryptocurrency investment mostly bitcoin