DCA'ing isnt a bad strategy

[AmoreJaz]

Spot crypto (cyrpto spot market) purchases are very suitable using DCA. This is very useful in any market situation, especially during a bearish market. When we are aiming for long-term investments, DCA is highly recommended to use.

This method is still widely used by traders in situations like now as well as traders who play in the spot area because it is more suitable for them to use. Apart from that, this also makes it easier for traders to manage their own capital even if it is used multiple times every week or month.

Different from Futures, even though DCA can be used in the futures market, the risk of getting a Margin call is very high if the balance we use is not able to provide high liquidity. So the DCA method is not suitable for the futures market.

Futures is more about guessing trading signals and this is quite difficult to do and not easy for everyone so using the DCA method is not suitable, especially in conditions like now which are very uncertain so the chance of losing is always much greater than winning.

this DCA strategy has been used by traders thru the years, and the application depends on their targets here. and if it is appropriate with the situation.
futures for me requires a very good knowledge of the market you are going into. because in this market, you can easily get liquidated if you are not fast enough.

[n0ne]

Spot crypto (cyrpto spot market) purchases are very suitable using DCA. This is very useful in any market situation, especially during a bearish market. When we are aiming for long-term investments, DCA is highly recommended to use.

This method is still widely used by traders in situations like now as well as traders who play in the spot area because it is more suitable for them to use. Apart from that, this also makes it easier for traders to manage their own capital even if it is used multiple times every week or month.

Different from Futures, even though DCA can be used in the futures market, the risk of getting a Margin call is very high if the balance we use is not able to provide high liquidity. So the DCA method is not suitable for the futures market.

Futures is more about guessing trading signals and this is quite difficult to do and not easy for everyone so using the DCA method is not suitable, especially in conditions like now which are very uncertain so the chance of losing is always much greater than winning.

this DCA strategy has been used by traders thru the years, and the application depends on their targets here. and if it is appropriate with the situation.
futures for me requires a very good knowledge of the market you are going into. because in this market, you can easily get liquidated if you are not fast enough.

It all depends on how people take it. It is more likely for users who have the long term focus and long term target. For users who keep panicking about the market fluctuations cannot profit good through these strategies. Knowledge is must when we're into trading and the more knowledge we have more will be the success and the patience to experience the goodness.

Dollar Cost Average technique can be applied from any small amount, which is the best part of it. Not everyone understands it in this way. For people who look for short term benefits this won't give hands, if the capital isn't big

[Wind_FURY]

I can see that the majority here support the DCA as a good investment strategy. Of course, there are some risks, as DCA doesn't guarantee a positive outcome and can lead to buying at an unfavourable price. Some say it's a strategy for beginners, but honestly, i think it's just good for anyone who doesn't want to drown in researching the market and emotional rollercoasters of making right or wrong decisions. It's also safer because if a person buys a lot at an unfortunate time, it's worse than buying a part at a good time and a part at a bad time.

It's also very inefficient use of capital especially that we already have sufficient fundamental knowledge on Bitcoin's 4-year cycles due to the halvings, and open information from the Federal Reserve/your Central Bank's current monetary policy if they're tightening or expanding.

Common-sense says if Federal Reserve/your Central Bank is tightening = save fiat because it will become more scarce, temporarily. If the money-printer is on = buy Store of Value assets like Bitcoin. Having that said - What are the Central Banks all over the world currently doing? Is the DXY going higher or lower? It's probably better to save your salaries in U.S. Dollar for now and take advantage of DIPs WHEN the opportunity comes.

But if you have unlimited capital, then go ahead and DCA.

[Outhue]

We are in a bear market, and that's good for those who don't have a lot of money to invest, instead of trying hard to DCA into Bitcoin every time it's better and more profitable to hunt the massive dips.

Confused? Here is an example.

I stored my money in stable coin and wait for good dips, like the first dip that happened last year, around 17k per Bitcoin, I went heavily on that, some amount that could take me four months to DCA in Bitcoin, and the second one happened when Bitcoin dips to 15k, this way I am still in profit with Bitcoin, compare to those who DCA since 30k per btc down to 25k now, it doesn't make much sense, does it?

In every bear market, let the dips be your calling, the proper time to throw in some money, like I've said already, we are still in a bear market anyways, just imagine if Bitcoin dips back to 15,000$ in this September. I will go right in again, this is the best DCA strategy.

[lombok]

this DCA strategy has been used by traders thru the years, and the application depends on their targets here. and if it is appropriate with the situation.
futures for me requires a very good knowledge of the market you are going into. because in this market, you can easily get liquidated if you are not fast enough.

Conclusion. In my opinion, no matter how good our trading method is, Fundametal and Technical analysis is the key to everything. DCA will function effectively if combined with appropriate and correct analysis.

[virasog]

What is your opinion?
And and which method do you prefer to be used in this present market conditions?

DCA is always been a good strategy in any market condition as we never predict the exact bottom and exact top of the market. If we keep on waiting for the perfect top/bottom of the market, then most probably we will miss our entries and exit. So the best thing to do is to DCA both when you want to buy and also sell in the parts.

However let's take one scenario like you want to DCA in the bear market, but most people do not know where to take entries. Sometimes they take entries to close like one DCA entry for bitcoin at 30,000$, another one at 29,000$ and third one at 28,000$ and so on. If you do DCA like this, soon you will be left out of money, if bitcoin reaches 25,000$ or 20K levels. You need a plan for DCA entries too so that you should have money in hand, even if bitcoin reaches 18K or below.

[Blitzboy]

We are in a bear market, and that's good for those who don't have a lot of money to invest, instead of trying hard to DCA into Bitcoin every time it's better and more profitable to hunt the massive dips.

Confused? Here is an example.

I stored my money in stable coin and wait for good dips, like the first dip that happened last year, around 17k per Bitcoin, I went heavily on that, some amount that could take me four months to DCA in Bitcoin, and the second one happened when Bitcoin dips to 15k, this way I am still in profit with Bitcoin, compare to those who DCA since 30k per btc down to 25k now, it doesn't make much sense, does it?

In every bear market, let the dips be your calling, the proper time to throw in some money, like I've said already, we are still in a bear market anyways, just imagine if Bitcoin dips back to 15,000$ in this September. I will go right in again, this is the best DCA strategy.

Beware that not all bear markets are equal. Previous success doesnt ensure future success, right? The backdrop, regulatory changes, global economic movements, and macroeconomic indicators must be considered.

I agree that "catch a falling knife" is fun, but you must know how to manage it or you'll get cut. DCA prioritizes risk minimization above market timing. Your technique has virtues, especially for market-savvy people, but its not generally transferable. Perhaps we should encourage a balanced approach: some money in DCA and some reserved for "dip-hunting" as you say. Thoughts?

[Jawhead999]

Conclusion. In my opinion, no matter how good our trading method is, Fundametal and Technical analysis is the key to everything. DCA will function effectively if combined with appropriate and correct analysis.

If you're using fundamental and technical analysis before you start to buy Bitcoin, it's not DCA anymore because you're looking to buy Bitcoin at the lowest or you want to make short term profit. DCA strategy is when you buy Bitcoin regularly every day(s), week(s), or month(s) regardless the price is and you're keep holding since DCA is for long term goal. If you can't do that it's fine, maybe DCA isn't for you.

[lombok]

Conclusion. In my opinion, no matter how good our trading method is, Fundametal and Technical analysis is the key to everything. DCA will function effectively if combined with appropriate and correct analysis.

If you're using fundamental and technical analysis before you start to buy Bitcoin, it's not DCA anymore because you're looking to buy Bitcoin at the lowest or you want to make short term profit. DCA strategy is when you buy Bitcoin regularly every day(s), week(s), or month(s) regardless the price is and you're keep holding since DCA is for long term goal. If you can't do that it's fine, maybe DCA isn't for you.

Correct. We can make regular purchases every day, week or even month and that includes the DCA method. However, is the use of fundamental and technical analysis not included in DCA? In my opinion, this analysis will really help the DCA that we will carry out to maximize investment and not seem careless in purchasing coins. This is just my opinion regarding the DCA I did.

[philipma1957]

People are trying to figure out the best way to invest in cryptocurrency because it can be very unpredictable. If you're an investor looking to reduce your risk, you might consider a strategy called dollar-cost averaging (DCA). However, using this strategy means you're less likely to make really big profits.

Dollar-cost averaging means putting the same amount of money into an investment over time. It's nice because it makes investors feel more comfortable. By spreading out your Bitcoin purchases over time, you're either buying when it's doing well, or you're getting it at a lower price compared to your first purchase, which is a good thing.

Some people prefer to invest a large lump sum all at once because you might end up with more Bitcoin quickly. But there's also a chance you'll end up with less. To decide between these two methods, you need to think about the risk involved.

If you want a bigger chance of making a lot of money, go for the lump sum. If you want to slowly accumulate Bitcoin with the least risk (even if it means having less Bitcoin in the end), then DCA is better. For most regular people who just want to accumulate Bitcoin, DCA is a good choice because it helps you get a decent amount of Bitcoin based on the money you have to invest.

What is your opinion?
And and which method do you prefer to be used in this present market conditions?

Well D.C.A.
along with buy the dip ladder down
 sell the bull ladder up
Is a three prong method that should work well.

D.C.A. alone may not be enough.

[Odohu]

If you're an investor looking to reduce your risk, you might consider a strategy called dollar-co0st averaging (DCA). However, using this strategy means you're less likely to make really big profits.

I don't really agree with you that DCA strategy does not yield much profits. From a personal experience,  DCA have remained one of the best strategy that allow me to optimise the buying process. Without DCA, most of my Bitcoin holding would have been bought around $29k because when price lingered around that zone, there was this temptation of buying through market execution in order to avoid missing out on the much anticipated bull market I was expecting to start this year. So because of DCA, most of accumulations were made at discounted price that leave my portfolio in little negative and whenever Bitcoin hits $27k now, I will be in total good profits.

[mvdheuvel1983]

What is your opinion?
And and which method do you prefer to be used in this present market conditions?

I use both strategies. There's no rule in the community that say you cannot use the both of them. It is a matter of convenience.

I dollar cost average monthly and have been doing this and tracking it in an excel spreadsheet since the beginning of 2022.

I also invest lump sums  when I offer some services and the client pays in bitcoin. It is not regular.

The goal is not to make profit but to stack as much as possible until I reach my goal and also for the halving happening next year.

[teosanru]

People are trying to figure out the best way to invest in cryptocurrency because it can be very unpredictable. If you're an investor looking to reduce your risk, you might consider a strategy called dollar-cost averaging (DCA). However, using this strategy means you're less likely to make really big profits.

Dollar-cost averaging means putting the same amount of money into an investment over time. It's nice because it makes investors feel more comfortable. By spreading out your Bitcoin purchases over time, you're either buying when it's doing well, or you're getting it at a lower price compared to your first purchase, which is a good thing.

Some people prefer to invest a large lump sum all at once because you might end up with more Bitcoin quickly. But there's also a chance you'll end up with less. To decide between these two methods, you need to think about the risk involved.

If you want a bigger chance of making a lot of money, go for the lump sum. If you want to slowly accumulate Bitcoin with the least risk (even if it means having less Bitcoin in the end), then DCA is better. For most regular people who just want to accumulate Bitcoin, DCA is a good choice because it helps you get a decent amount of Bitcoin based on the money you have to invest.

What is your opinion?
And and which method do you prefer to be used in this present market conditions?

Isn't a bad? I think it's the best strategy when it comes to beginners trading in the market, They have very limited market knowledge so obviously the half hearted strategies are actually very flop, it's better to create parts of your total portfolio and then go for DCA, but yes DCA should only be done for either bitcoin or other major cryptocurrencies, don't do it for currencies other than top 5 or 10 because there's a good chance you are just riding a sinking ship when you are buying in again and again. also if you compare it with just buying on the spot then that's much better than that.

[GbitG]

If a person wants to invest in the market to get some profit but has no idea about investment strategies, it can definitely cut down on their investment risk, which is the dollar cost average. Apart from this, there is another strategy, but the Dollar Cost Average Strategy is much better than this, which is the Lamp Sum Strategy. Dollar-cost average is one of the best strategies for beginners who are looking to invest in or trade ETFs. It has more advantages than Lump Sum. All over the internet, almost everyone will recommend Dollar Cost Average over Lump Sum Sum. Because its benefits are greater compared to lump sums, which are given below in points.
Benefits of Dollar-Cost Averaging
1. Dollar-cost averaging can lower the average amount you spend on investments.
2. It reinforces the practice of investing regularly to build wealth over time.
3. It's automatic and can take concerns about when to invest out of your hands.
4. It removes the pitfalls of market timing, such as buying only when prices have already risen.
5. It can ensure that you're already in the market and ready to buy when events send prices higher.
6. It takes emotion out of your investing and prevents you from potentially damaging your portfolio's returns.

[bayu7adi]

3. It's automatic and can take concerns about when to invest out of your hands.

Yes, someone who feels they've purchased an asset at a higher price can implement this Dollar-Cost Averaging (DCA) scheme to lower the average cost of acquiring that BTC asset. In essence, once someone becomes adept at the DCA strategy, they can effectively manage their finances even after buying BTC at recent price peaks. However, we mustn't haphazardly purchase Bitcoin without prior thought. It still requires careful consideration and adaptation to Bitcoin's real-time conditions.

There's no longer a fear of making mistakes in buying price analysis, as DCA serves as a corrective measure. Certainly, you can achieve even greater profits when accompanied by technical analysis, such as identifying Support and Resistance levels to pinpoint the optimal timing for DCA.

[Kakmakr]

A clever Bitcoin collector will combine the two options....

You do not simply buy on a regular basis, for the sake of buying.... you rather accumulate some Fiat savings and then buy bitcoins when the price are low. Why should you follow a DCA strategy that will force you to buy at regular intervals during high prices, when you can hoard your savings and buy at low prices.

The combined strategy will increase your profits, because you are buying bitcoins at low prices. (Also, sell bitcoins at high prices and then wait for it to dip to buy more coins) 

[karabiber]

What is your opinion?
And and which method do you prefer to be used in this present market conditions?

Depending on your risk capacity, the strategies you can choose vary. Among these, DCA is one of the risk free and efficient strategies. I don't want to explain DCA because DCA has been explained enough on this topic. If your risk appetite is high, i can recommend a few more strategies. We are in the crypto markets to make money and with DCA we can only go so far. Smart traders shouldn't stick to one strategy and should take some risks at times.

Scalping and Day Trading strategy is one of them. It is worth remembering that Scalping and Day trading are suitable for experienced traders or investors who are willing to accept high levels of risk and have no difficulty in monitoring the market continuously. If you don't know enough about the market, don't engage in this strategy. If you are a newcomer, i would recommend the DCA and Trend strategy. One of the advantages of the Trend strategy in particular is that it is a relatively simple strategy to follow, especially for beginners. Trends are also easy to spot because they are more durable over time. In addition, trends can be detected in many different asset classes, which makes this strategy flexible.

[Cvetik56]

A clever Bitcoin collector will combine the two options....

You do not simply buy on a regular basis, for the sake of buying.... you rather accumulate some Fiat savings and then buy bitcoins when the price are low. Why should you follow a DCA strategy that will force you to buy at regular intervals during high prices, when you can hoard your savings and buy at low prices.

The combined strategy will increase your profits, because you are buying bitcoins at low prices. (Also, sell bitcoins at high prices and then wait for it to dip to buy more coins) 

That's exactly what I'm trying to do. You can't determine when BTC will hit the lowest point exactly, but it's always worth looking at charts and waiting for the best opportunity.

[michellee]

What is your opinion?
And and which method do you prefer to be used in this present market conditions?

I use both strategies. There's no rule in the community that say you cannot use the both of them. It is a matter of convenience.

I dollar cost average monthly and have been doing this and tracking it in an excel spreadsheet since the beginning of 2022.

I also invest lump sums  when I offer some services and the client pays in bitcoin. It is not regular.

The goal is not to make profit but to stack as much as possible until I reach my goal and also for the halving happening next year.

I also use that strategy because I agree with you that it is a matter of convenience. But I more often use a DCA strategy where I buy weekly or monthly, depending on my finances. And I also don't force myself if I can't buy Bitcoin this week because finances force me to use the money.

And so far, it has been going well, even though I haven't been able to collect more Bitcoins. But it has worked for me and I am still comfortable using the strategy.

And when I can't buy on a weekly basis due to financial problems, I will try to buy at the lowest price I can get. But if I can't buy Bitcoin at the lowest price, that's okay because I still have a DCA strategy for the following week.

[Inwestour]

A clever Bitcoin collector will combine the two options....

You do not simply buy on a regular basis, for the sake of buying.... you rather accumulate some Fiat savings and then buy bitcoins when the price are low. Why should you follow a DCA strategy that will force you to buy at regular intervals during high prices, when you can hoard your savings and buy at low prices.

The combined strategy will increase your profits, because you are buying bitcoins at low prices. (Also, sell bitcoins at high prices and then wait for it to dip to buy more coins) 

Saving fiat and buying on drawdowns sounds very smart, and this strategy will be available to almost everyone. But when you advise selling Bitcoin at a high price and trying to buy it at a low price, then I think this may be a very difficult task for most on this forum. Since looking for levels at which it is worth selling and buying back is a complex trader’s work that requires good knowledge of technical analysis, and can ultimately lead to an inexperienced user losing more than he can gain.