Best way to DCA 1.000.000 $ into Bitcoin

[otomakanihsotas21]

lets say someone wins a million dollar and wants to dca 50k weekly into bitcoin.
What is the smartest way to do so?

I know nothing and would send 50k to binance each week and set a limit order every monday. Is there a better way?

Thx

[Queentoshi]

lets say someone wins a million dollar and wants to dca 50k weekly into bitcoin.
What is the smartest way to do so?

I know nothing and would send 50k to binance each week and set a limit order every monday. Is there a better way?

Thx

If you win a million dollars and decide to DCA 50k, It will take a lot of weeks before you will be able to DCA enough. And because of how quickly money can go as it comes, it will better for me to just budget what I need money for, then invest what is left in bitcoins and then continue by the DCA strategy to continue to accumulate more.

Keeping that amount of money for weeks is dangerous not just because it can get missing, but due to fact that it can be spent on somethings that suddenly come up when you have some money. You do not always need to buy bitcoins by DCA.

[Fivestar4everMVP]

Well, if you ask me, I don't think that there is a particular way that is generally accepted as good, or the best way, you just have to do it the way you think fits your style in investing, like myself for example, if I wanted to invest the entire one million dollar in bitcoin, i did first invest like 10 percent of that amount considering the season we are now, that is that we are still in a bear season, so the chances that bitcoin price will still drop is high, so i did invest 10 percent first, and i will use the martingale strategy for the rest of the money.
Like anytime Bitcoin removes like $500 to $1000 from its price, i did invest a little bit more than what i invested in the previous time.

For example, my first investment out of the entire sum of one million dollar was 10 percent, in my next investment when the price of bitcoin drops more than $500 to $1000 below its previous price, i did invest like maybe 10.1 higher , that is 0.1 percent higher than what I previously invested, and in the next round, i did invest like 10.15 percent , just like that until the whole money is exhausted.

Like I said before, there is no generally accepted way that is the best way, you just to find a way that is best for you, or you think will work best for you.

[m2017]

lets say someone wins a million dollar and wants to dca 50k weekly into bitcoin.
What is the smartest way to do so?

I know nothing and would send 50k to binance each week and set a limit order every monday. Is there a better way?

Thx

If you win a million dollars and decide to DCA 50k, It will take a lot of weeks before you will be able to DCA enough. And because of how quickly money can go as it comes, it will better for me to just budget what I need money for, then invest what is left in bitcoins and then continue by the DCA strategy to continue to accumulate more.

Keeping that amount of money for weeks is dangerous not just because it can get missing, but due to fact that it can be spent on somethings that suddenly come up when you have some money. You do not always need to buy bitcoins by DCA.

Indeed, in your words there is a certain common sense. There were many cases when people who won big sums of money in the lottery spent everything very quickly, lost their previous savings, property, became debtors and simply ended badly. Therefore, if you have a lot of money, there may be temptations for rash spending on unnecessary junk and extra trash. Perhaps the strategy of buying bitcoin immediately with some of that money doesn't sound stupid at all. Of course, if desired, btc can be exchanged back for fiat and spent (of course, with losses during conversion), but spending it will be a little more difficult, because this is already an investment and extra actions during the exchange will slow it down a bit. But you can do it differently (roughly as OP described): draw up an action plan, allocate an amount for investment in btc, buy btc once a week for a certain amount. I don’t think that someone, having become a millionaire, will spend time on daily purchases bitcoin, so 1 time per week or per month is quite acceptable. The amount of 50k also seems quite acceptable to me, although it can be divided by two. Should also take into account the current trend in the cryptomarket: in a bearish market, as it is now, it is better to buy at 50k, because bicoin is cheap, and in a bullish one, it is better to stretch over time and for a smaller amount, like 25k.

[nullama]

lets say someone wins a million dollar and wants to dca 50k weekly into bitcoin.
What is the smartest way to do so?

I know nothing and would send 50k to binance each week and set a limit order every monday. Is there a better way?

Thx

Note that depending on the price you set the limit order you might not get any bitcoin at all.

You can just buy at market value to make this a set-and-forget thing knowing that you will end up with bitcoin at the end of the day.

Ah, and remember to withdraw it to your own wallet. Some exchanges offer auto-withdrawals after you have more than a specific amount.

[noorman0]

-snip-
I know nothing and would send 50k to binance each week and set a limit order every monday. Is there a better way?

DCA is buying at any price at the time, not the best price. Buying at the "limit" price means that it does not guarantee you will be successful buying bitcoins on a regular basis. Better yet, buy at the "market" price every Monday.

Considering it is a large amount of money, make weekly withdrawals and use multiple hardware wallets or secure with multisig.

[paid2]

I know nothing and would send 50k to binance each week and set a limit order every monday. Is there a better way?

It all depends on how well you can justify the source of your 50k per week.
Binance will undoubtedly ask you for EDD / SoW type documents for such amounts.
You also need to take into account your country's tax policy if you plan to resell it one day.

If you really want to go through a CEX for these transactions (indeed volumes are likely to be a problem with most P2P solutions), you should first contact them and negotiate some VIP status, so that you have a little more professional and personal support in case of problems.

[Cuenta Alternativa]

I know nothing and would send 50k to binance each week and set a limit order every monday. Is there a better way?

You want to buy a million dollars and you are going to set a limit order? I wouldn't eat my head off with that, better to set the orders at market and that's it. What are you going to do if you set a limit, and the price starts to go up? Not buy that week? After all you are doing DCA, aren't you? Order to market or for the best and go for it.

If you really want to go through a CEX for these transactions (indeed volumes are likely to be a problem with most P2P solutions), you should first contact them and negotiate some VIP status, so that you have a little more professional and personal support in case of problems.

If the origin of the money is clear, in this case from the lottery collected at your bank, there should be no problem. I had thought that maybe a DEX would be better, but for these amounts the bank and the tax authorities in your country are going to keep an eye on you anyway, so I think that in this case CEX would be better.

[reagansimms]

lets say someone wins a million dollar and wants to dca 50k weekly into bitcoin.
What is the smartest way to do so?

I know nothing and would send 50k to binance each week and set a limit order every monday. Is there a better way?

Thx

If you feel the price set today is the best to enter or the market price will increase higher why do you have to do a DCA, you can immediately buy Bitcoin at once or half of the amount of money budgeted to buy Bitcoin. The best way according to each user is always different. If you ask me, I prefer to buy when the price is lower than yesterday, the potential price increase will be bigger based on the movement in the market. You can apply the DCA strategy based on price movements on weekends. You can enter the market every Sunday by setting order limits.

[fuguebtc]

lets say someone wins a million dollar and wants to dca 50k weekly into bitcoin.
What is the smartest way to do so?

I know nothing and would send 50k to binance each week and set a limit order every monday. Is there a better way?

Thx

For retail investors like us, 1 million USD is quite a large amount and investing in bitcoin requires careful consideration and planning as well as knowledge, otherwise it is very easy to lose money. If it were me, I would DCA weekly like you and I would use binance to do it too. Because with large buy and sell orders, centralized exchanges are still safer because of high liquidity. But you shouldn't leave your bitcoins in binance, always transfer them all to your hardware wallet after completing the buy order.

[kingvirtus09]

lets say someone wins a million dollar and wants to dca 50k weekly into bitcoin.
What is the smartest way to do so?

I know nothing and would send 50k to binance each week and set a limit order every monday. Is there a better way?

Thx

If you win or 1M$  the dollar would you like to allocate for bitcoin and hold it until the bull run arrives? Because if I ever Igot that amount of million dollars, I would separate 250k$ that I would provide it for bitcoin immediately. And I will use 50k$ in day trading and the profit I will get  it on day trading I will apply DCA for other potential cryptocurrency besides Bitcoin. Then the others are for the personal things I need in life such as house and lot, cars and business and other good investment such as real estate and mutual fund something like that.

[tw0.625]

lets say someone wins a million dollar and wants to dca 50k weekly into bitcoin.
What is the smartest way to do so?

I know nothing and would send 50k to binance each week and set a limit order every monday. Is there a better way?

Thx

If your capital is $1 million, then divide it into 1000 equal parts. Place price*amount = $1000 limit orders with ~$100 price step (the price step is not optimal, but simple)

For example Limit buy orders
price     | amount
$29000 | 0.0344 ~ ($1000 / $29000)
$28900 | 0.0346 ~ ($1000 / $28900)
$28800 | 0.0347 ~ ($1000 / $28800)
$28700 | 0.0348 ~ ($1000 / $28700)
... etc.

If the price goes down, your orders will be executed. If the price goes up, continue placing orders higher (place every day or every week) according to the specified strategy.

[bluebit25]

Is there a better way?

With such a financial level and learning about the investment field, I don't think that person needs advice on DCA form, if I own those things I think the financial position is quite good for me. Search for some places that can help and the rest is for other things like entertainment.



But the DCA story doesn't have to be complicated as long as you're ready with the capital, time to implement, monthly, weekly or daily form no matter what. And the investment also needs to be considered from the beginning in terms of the expected return target and the degree of holding the investments. Buying btc today is not difficult, when an ordinary person with just a few training courses can easily buy and manage it, but now to be more realistic, I will continue to think about the problem for $1m.

[tw0.625]

Is there a better way?

With such a financial level and learning about the investment field, I don't think that person needs advice on DCA form, if I own those things I think the financial position is quite good for me. Search for some places that can help and the rest is for other things like entertainment.

But the DCA story doesn't have to be complicated as long as you're ready with the capital, time to implement, monthly, weekly or daily form no matter what. And the investment also needs to be considered from the beginning in terms of the expected return target and the degree of holding the investments. Buying btc today is not difficult, when an ordinary person with just a few training courses can easily buy and manage it, but now to be more realistic, I will continue to think about the problem for $1m.

฿ == $+∞

How about... $920,000 and 2.625 Bitcoin?

If the price of Bitcoin falls to zero, you will lose $80,000. If the price of Bitcoin rises to +infinity, your $920,000 will become worthless.

[otomakanihsotas21]

First, thanks everybody all for the answers. It looks like my question wasnt clear enough.

1. Bitcoin price wise nobody knows shit about fuck. DCA 50k/week are just 20 weeks. The question is not if u think its better to buy all at once or in 2 weeks or on the 11. of december^^

2. Why I asked if a limit order is the way: a month or so ago I saw that someone buyed a bitcoin on binance for 90k/btc or something like that (forgot the correct numbers). He made a market order and it got filled at that funny price.
So, the question is: btc price is for example 29k. I open a limit order to buy for 50.000$ at a limit of 29.1k/btc than there is no way that my order gets filled above 29.1k - Is that right?

[tw0.625]

First, thanks everybody all for the answers. It looks like my question wasnt clear enough.

1. Bitcoin price wise nobody knows shit about fuck. DCA 50k/week are just 20 weeks. The question is not if u think its better to buy all at once or in 2 weeks or on the 11. of december^^

2. Why I asked if a limit order is the way: a month or so ago I saw that someone buyed a bitcoin on binance for 90k/btc or something like that (forgot the correct numbers). He made a market order and it got filled at that funny price.
So, the question is: btc price is for example 29k. I open a limit order to buy for 50.000$ at a limit of 29.1k/btc than there is no way that my order gets filled above 29.1k - Is that right?

$50000 per week is a non-optimal bet for your relative small $1m capital. What if in 10 weeks Bitcoin price hit $8888?  

Try this:

If your capital is $1 million, then divide it into 1000 equal parts. Place price*amount = $1000 limit orders with ~$100 price step (the price step is not optimal, but simple)

For example Limit buy orders
price     | amount
$29000 | 0.0344 ~ ($1000 / $29000)
$28900 | 0.0346 ~ ($1000 / $28900)
$28800 | 0.0347 ~ ($1000 / $28800)
$28700 | 0.0348 ~ ($1000 / $28700)
... etc.

If the price goes down, your orders will be executed. If the price goes up, continue placing orders higher (place every day or every week) according to the specified strategy.

[davis196]

I would never trust centralized crypto exchanges like Binance when it comes to depositing big amounts of money(even though Binance has a p2p market).
The best way would be to find a trusted trader with big liquidity on a decentralized exchange and make deals with him.
You can do whatever you want with your money. I don't have 1 million dollars and I have never dealt with such big amounts of money, so what do I know.

Why I asked if a limit order is the way: a month or so ago I saw that someone buyed a bitcoin on binance for 90k/btc or something like that (forgot the correct numbers). He made a market order and it got filled at that funny price.
So, the question is: btc price is for example 29k. I open a limit order to buy for 50.000$ at a limit of 29.1k/btc than there is no way that my order gets filled above 29.1k - Is that right?

Yes, that's right, but why would anyone buy Bitcoin at 90K USD? I guess that the trader(or a trading bot) made a mistake with this 90K/BTC order. Maybe he had mistaken the buy order with a sell order and wanted to sell BTC at 90K. This sounds stupid, but who knows.

[tw0.625]

I would never trust centralized crypto exchanges like Binance when it comes to depositing big amounts of money(even though Binance has a p2p market).
The best way would be to find a trusted trader with big liquidity on a decentralized exchange and make deals with him.
You can do whatever you want with your money. I don't have 1 million dollars and I have never dealt with such big amounts of money, so what do I know.

Why I asked if a limit order is the way: a month or so ago I saw that someone buyed a bitcoin on binance for 90k/btc or something like that (forgot the correct numbers). He made a market order and it got filled at that funny price.
So, the question is: btc price is for example 29k. I open a limit order to buy for 50.000$ at a limit of 29.1k/btc than there is no way that my order gets filled above 29.1k - Is that right?

Yes, that's right, but why would anyone buy Bitcoin at 90K USD? I guess that the trader(or a trading bot) made a mistake with this 90K/BTC order. Maybe he had mistaken the buy order with a sell order and wanted to sell BTC at 90K. This sounds stupid, but who knows.

Binance dot com has no BTC/USD market bro  

[Aanuoluwatofunmi]

lets say someone wins a million dollar and wants to dca 50k weekly into bitcoin.
What is the smartest way to do so?

DCA as you've mentioned, since now we are still in the bear market season where the bitcoin is dip, you can DCA onna weekly basis and buy to hold gradually, but we cannot predict what may come next anytime for the market to rise or not, you can also make the buy at anytime from now and hold since it's a long time investment, the more we may be buying the higher the market price may be going, so taking advantage of the dip to buy twice may be right since we are likely not going more dip than this.

I know nothing and would send 50k to binance each week and set a limit order every monday. Is there a better way?

I will advise you to make use of a decentralized wallet to hold your bitcoin, though you may use an exchange in getting them but once exchanged, then you move your asset to a decentralized cold storage wallet, it's not safe to have your long term investment on centralized exchanges.

[sunsilk]

lets say someone wins a million dollar and wants to dca 50k weekly into bitcoin.
What is the smartest way to do so?

If cash is on hand ready and I'm about to plan certain amount like putting that million on Bitcoin. Yes, DCA is a good strategy but if I think that the price now is as low as it can be then I'd certainly do everything to buy that.

Whilst it's a good to lumpsum it, the problem mostly with exchange is that when you're a buyer and you get that much transactions. That's where you will trigger them and could ask for more docs compliance.

I know nothing and would send 50k to binance each week and set a limit order every monday. Is there a better way?

Thx

That's pretty much it. If you think that Binance is the good exchange that buy with that money, one thing that you'll need to accept is the possible more IDs that they'll require you.