Failed DCA Strategy When Buying Bitcoin

[adultcrypto]

[...]
DCA doesn't fail if it is done properly without accumulating over aggressively with it. When you are accumulating aggressively, you should not overdo it if not it will affect you negatively. I believe that was the problem he had.

That is the most important part of a DCA strategy, yes. You often read in the forum that people are unhappy with the results of their DCA purchases. If you then ask in more detail, it often turns out that, for example, purchases were made every day for several weeks. Even with strong swings during this period, you can't expect the strategy to pay off. DCA is primarily aimed at buying coins over a very long period of time in order to capture as many market sentiments as possible. If you rush your purchases, you might as well use a classic trading strategy and not rely on DCA. 

When I saw the caption of this thread, I wondered if it is the same DCA that have helped me in my bitcoin accumulation that is being addressed or something else. The author of this post seems to be mistaken the DCA strategy, which is mainly for buy bitcoin, with something else. You can buy the bitcoin with the DCA method but if you do not device a proper way of managing the bitcoin, you might still sell at a loss which is what the investor did.    What I noticed in the event that the OP described is someone who invested in Bitcoin through due to hype of the 2021 bull run with the intention that he will make a killing. He waited and continue adding more hoping that it will pump but the bear season that followed the bull run lingered and he was tired of waiting and decided to sell at loss. Assuming he waited one more year, the loss would have been his profit. This is the reason anyone investing in bitcoin must be ready to give it anything between 4-10 years. In summary, this is not a case of failed DCA strategy but someone who bought through the DCA strategy but sold at a loss.

[Uruhara]

Although this is an old thread. But this can be a lesson for anyone who invests in Bitcoin, it must be done after we are truly sure and confident about holding it for the long term. because if you are not ready then stories like this can happen again and again. But maybe there are several reasons that can also force someone to start changing plans from initially being for the long term to having to stop it and having to sell even at a loss. Like when there is an emergency situation that requires someone to immediately convert all their assets into fiat. So we also don't know what the story is behind the owner of the address above.

But for those of us who want to invest in bitcoin, only use money that is really cold and ready to lose. And so far DCA has been very successful for me. Because this is not for the short term but the long term. Currently I am in a condition of getting multiple profits but yes I still remember my long term plans. So I will keep holding it until I actually reach the target.

The DCA strategy failed because he does not have an emergency funds that will be able to take care of any real emergency that occurs while he is DCAing. You cannot use all the money on you to DCA without preparing for the unforeseen circumstances ahead of us. For a long term bitcoin investment, every proper plan should be put in place to avoid selling your bitcoin at loss when it is not yet the right time.

DCA doesn't fail if it is done properly without accumulating over aggressively with it. When you are accumulating aggressively, you should not overdo it if not it will affect you negatively. I believe that was the problem he had.

Yes, that's right, sir. And people doing DCA in bitcoin should also understand that this is a high-risk asset. So we have to collect special funds to invest in these types of high-risk assets. Of course, like not being too ambitious by including too much of our finances in this matter. We can put in little by little where our finances will not be disturbed by the investment. Usually those who are too aggressive in investing and accumulating either using the DCA method or other methods are those who are in a hurry and feel that they are afraid of being left behind by others in gaining profits. They invest without taking into account the long-term fluctuations they will face. So when they see the reality of market movements that are different from their wishes, they will panic and will start selling everything even at a loss. Or it could also be because they are not good at managing finances, especially in preparing emergency funds. In essence, we have to really understand every investment instrument we enter. And keep everything within limits where we can bear the risk.

[Taskford]

DCA doesn't fail if it is done properly without accumulating over aggressively with it. When you are accumulating aggressively, you should not overdo it if not it will affect you negatively. I believe that was the problem he had.

Everything that's overdone will result into something bad and that's why when we DCA, always make sure that you'd do it with the money that you can afford to lose. It's no different from investing actually as we always tip those words for anyone who wants to do it. But that guy who has spent hundreds of millions for his purchase of BTC has got a lot of money and more than that. Anyway, this is what means to be a literal expensive lesson to have.

It should be like that since if you use the money you can't afford to lose then maybe you will start to have a problem and will just get stress on the situation that you didn't expect to happen. So its important to invest an extra funds here which separate intended for investment and make sure also that you have good source of income so that there will be bad scare towards losing your money and you can set aside any unnecessary emotion since the money you used is intended for investment matters.

But if DCA method then backed up with good understanding and strengthen up our emotion then for sure that doing this DCA strategy will never fail us. Because our decision making usually put us in danger towards this matter.

[Cookdata]

The DCA strategy failed because he does not have an emergency funds that will be able to take care of any real emergency that occurs while he is DCAing. You cannot use all the money on you to DCA without preparing for the unforeseen circumstances ahead of us. For a long term bitcoin investment, every proper plan should be put in place to avoid selling your bitcoin at loss when it is not yet the right time.

DCA doesn't fail if it is done properly without accumulating over aggressively with it. When you are accumulating aggressively, you should not overdo it if not it will affect you negatively. I believe that was the problem he had.

When they say to investors and potential newbies to crypto to use the funds they can afford to lose, they think that statement is a mere one and nothing to be serious about but it's more than anything, some of this problems is the reason why emphasis is laid on it but someone who barely have another alternative for money will used his life saving to invest into Bitcoin and other altcoins and when the investment takes a noise dive into another route, they complain.

Literally there is no funds we can afford to lose, people that has invested millions of dollars and billions into Bitcoin doesn't look stupid to think they can let's go of that amount into investment if something happen but it's because they have another alternative for source of money for anything that comes later and they will wait for as long as it will take to recover back the money they have invested and also the profits when it's significant enough for them.

[uswa56]

It should be like that since if you use the money you can't afford to lose then maybe you will start to have a problem and will just get stress on the situation that you didn't expect to happen. So its important to invest an extra funds here which separate intended for investment and make sure also that you have good source of income so that there will be bad scare towards losing your money and you can set aside any unnecessary emotion since the money you used is intended for investment matters.

But if DCA method then backed up with good understanding and strengthen up our emotion then for sure that doing this DCA strategy will never fail us. Because our decision making usually put us in danger towards this matter.

When someone uses funds to invest and is unable to bear the losses when they have invested, it would be better to postpone their investment first because they are not ready to invest in the hope that they will be able to get a profit from what they have invested and if you use additional funds To carry out investments that don't require anything else, of course we don't need to be afraid of investing as long as we understand it well and know the right time to invest.

Some people think that investing in Bitcoin is very easy using the DCA method, but I think this will be very difficult to do well when we don't have a fixed income and the income we have is not yet stable, of course this will disrupt the schedule we have set. and this will certainly affect the results we will get from this investment.

[jaberwock]

DCA doesn't fail if it is done properly without accumulating over aggressively with it. When you are accumulating aggressively, you should not overdo it if not it will affect you negatively. I believe that was the problem he had.

Everything that's overdone will result into something bad and that's why when we DCA, always make sure that you'd do it with the money that you can afford to lose. It's no different from investing actually as we always tip those words for anyone who wants to do it. But that guy who has spent hundreds of millions for his purchase of BTC has got a lot of money and more than that. Anyway, this is what means to be a literal expensive lesson to have.

DCA or not, investing only what you can afford to lose is already a general rule in investing and DCA allows people to invest in a more flexible manner. If they invest too much, then they are doing it wrong. DCA and other strategies that are used in investing, involves buying and yeah that it is also or still called as investing.

Obviously that guy has lots of money because how can he buy a crazy high amount like that anyway? Though, not all who does that are investing only what they can afford to lose and this is where regret comes out. Each of us has our own capacity, so even a lower amount can still be called as an expensive lesson for us, if in case we fail.

[Catenaccio]

DCA or not, investing only what you can afford to lose is already a general rule in investing and DCA allows people to invest in a more flexible manner. If they invest too much, then they are doing it wrong. DCA and other strategies that are used in investing, involves buying and yeah that it is also or still called as investing.

It's true to say that one of basic rules for investment is afford to lose money in our investment but it doesn't mean that we want to lose money. Safety and protection of capital must be a most important thing to do with investors.

DCA is only one of investment strategies but itself does not protect your capital. It only helps you to do regular purchases for your investment to avoid emotional decisions but is your investment safe or risky, bring profit or loss, it depends on what you invest in.

If you DCA in Bitcoin, it's good and profitable in long term but if you DCA in meme coins, risk to lose all your money is very high.

[Strongkored]

He failed because selling it without selling the asset only fell in USD value but the amount of Bitcoin was still the same, he just didn't know how to be more patient in withholding it, he probably wouldn't have experienced that big of a loss and maybe even profit if he kept it longer, but we don't know his reason for selling So we can only say he lost or did the wrong strategy.

[Awaklara]

If you DCA in Bitcoin, it's good and profitable in long term but if you DCA in meme coins, risk to lose all your money is very high.

that's right, meme coins will not be a good investment by any strategy. DCA is intended for those who have long-term investment plans. The effort is to continue to accumulate the number of assets so that they increase sustainably. Of course, the most important thing in this case is to choose assets that are good for the long term, not assets that rise briefly and fall quickly.
the investor's role in trusting the chosen asset is also important. Never have doubts when choosing an asset. although the situation sometimes increases or decreases. The barrier for investors who use DCA is their patience.

[Frankolala]

If you DCA in Bitcoin, it's good and profitable in long term but if you DCA in meme coins, risk to lose all your money is very high.

that's right, meme coins will not be a good investment by any strategy. DCA is intended for those who have long-term investment plans. The effort is to continue to accumulate the number of assets so that they increase sustainably. Of course, the most important thing in this case is to choose assets that are good for the long term, not assets that rise briefly and fall quickly.
the investor's role in trusting the chosen asset is also important. Never have doubts when choosing an asset. although the situation sometimes increases or decreases. The barrier for investors who use DCA is their patience.

No need of thinking twice as only bitcoin have the potential to survive in the market for a very long time and the price is likely to keep on increasing due to the halving event. Bitcoin investment is not something that you jump into with any funds that you have without proper planning on how to hodli for long.

DCA is good and very effective in bitcoin accumulation when it is done with the right amount that will not affect your financial expenses. Some people don't understand bitcoin and they might invest with the money that they will need in a short-term and if the time when they need the money is in the corner, the have no choice than to sell their bitcoin irrespective of the price of bitcoin at that moment. DCA on shitcoin is a waste of time and resources because you are being serious with gambling.