"Lump sum Vs DCA" for Bitcoin Accumulation

[Husires]

There is no single strategy that is most profitable at all or at all times. There are profitable strategies such as DCA and strategies that are more profitable in the short term or at specific times.

Buying now for $30,000 instead of buying $1,000 for 30 months is the best, and therefore Lump Sum is the best FOR NOW because you are buying at the bottom instead of distributing the buying times. It will differ after 30 months, as DCA will be the best given that we are in a downward curve and buying with Lump Sum. It means a real loss because you are buying at the top.

A good trader is one who knows how to diversify between these strategies according to the market situation.

[DabsPoorVersion]

On the other hand, Lump-sum investment can be useful and maybe not. As i aforementioned that we can't time the market. So, what will happen using this strategy for BTCBTC accumulation? The person will buy Bitcoin at higher price or maybe at lower price with full of his investment at the same time. Sometime, he/ she fell prey to FOMO because he/she is waiting to see more dip for his accumulation of Bitcoin. In case, if it do not happen like price will not go more down he/she will miss his/her great opportunity of buying. Why i don't like Lump-sum investment because we have to invest our whole amount at the same time for accumulation of BTCBTC.  

Let's not underestimate lump-sum buying too much. Let's not go down the road connoting that DCA is wise, right, recommended, and so on and lump-sum is wrong and all the opposites. Yes, we cannot have perfect timing, but resources are available. You can study and analyze Bitcoin's movements and tendencies perusing all kinds of Bitcoin charts and tools. From there, you can set a price or a price range for your lump-sum purchases.

Take note that lump-sum doesn't necessarily mean one-time purchase. You can buy right now with most of your money and set aside the remainder in case Bitcoin drops back to $20,000 or below. Or you can divide your money into 3 parts and use 1 part to buy today, keep the other 2 in case Bitcoin drops, but if the price rises instead, use 1 part to buy at $30,000. The other one is reserved for the worst case scenario. This isn't strictly the DCA that everybody is talking about, but I think this is also a good approach.

It is still a DCA.
"You can buy right now with most of your money and set aside the remainder" - means that you just made an initial investment, and you still reserved some money for your next investment in case the price of Bitcoin drops. The fact that an investment was made/planned to be done in a different timeframe, you can't treat it as a lump sum anymore.

We really can't deny that the wisest strategy to accumulate Bitcoin is DCA. By regularly investing, gives the advantage of reducing the effect of volatility during our accumulation of Bitcoin. Also, if ever the price of Bitcoin suddenly drops, you won't be thinking of whether you will buy or not, because you already planned on regularly purchasing Bitcoin.

[lovesmayfamilis]

We often see questions about the best time to buy Bitcoin. People are afraid to make a mistake and buy expensive. Therefore, DCA will be the best choice for those who are cautious but still want to invest in Bitcoin. However, some people received a large amount of money and invested it entirely in Bitcoin. Both this and these are normal; it all depends on how much a person determines for himself the funds he is willing not to spend for some time. I would say that the DCA method is more simplified for the average person with a certain income from which he can save a certain amount. A lump-sum contribution is more suitable for businessmen with their businesses, from which they receive a good income.

[passwordnow]

Even if I had the capability to do a lump sum, I wouldn't do it. I'll still go through the slow process of DCA so that I can see every potential time to enter. DCA is an investor-friendly strategy, no matter how risky your approach to the market or how conservative you are, this is the best way to go. And it's proven and testified by most of the folks here that DCA is the best strategy whether you're a big investor or a small one or just someone who's speculating and starting out. But if DCA doesn't work for you and you're a different type of investor and you see other strategies work for you best, you don't have to do what everyone is doing. Because who knows if you'll be successful there and I think that no matter what it is, we're all going to meet at the end of it and we all have one approach whether lump sum or DCA or any other type and that is we all gonna hold.

[Vaculin]

DCA is good, but there are sometimes that you will leave DCA alone and invest big amount. Let us say that you have been DCAing since some months ago and the price of bitcoin within one week fall to $20000, if you have money that you can use to invest at once, you will not hesitate but invest it immediately becuase you have speculated that bitcoin price may not fall further.

DCA is good when you do not know if the price of bitcoin will not increase or decrease. Or if you do not have enough money to invest at once.

You may invest at once if you analyzed the price of bitcoin is low already.

Investors may go for either of the two, it is what the price of bitcoin is at that will determine that.

There is also a time that investing is not good, when bitcoin has increased significantly several times.

Lump sum investment could be very risky not only for regular investors but most especially for newbies who are less knowledgeable on their investment but are very eager to invest. Of course, that's a whole amount that are hard-earned so obviously, you can't afford to lose it all. But for wealthy bachelors, who cares. Most especially if its the only way to gain big time profits. But we all know that most of the investors here only start from scratch that's why they think using DCA is more advisable. And as long they never missed opportunities to invest through DCAing, in the end they will still gain massive profits when the bullish market happens.

However, it's individual's decision whether to invest through lump sum or DCA. As long as future losses won't affect his finances, then for me whatever choice of decision is valid.

[adultcrypto]

I would go with the lump-sum, assuming you mean a big amount when the price drops. That once held for long gives you enough price to sell at a decent profit. This means that instead of buying every month in DCA you buy once every 4-6months during a bear market and you sell like that in a bull market. Use the profit to buy back at the next bear market and continue to multiply your money.

This needs patience and by that I mean a lot of it. Fortunately I can do that because I have other sources of income. So that cushioning is needed for anyone attempting this method.

I will also do the same thing if I notice a considerable drop in price and also have the money to buy. I don't really see any need stressing myself with calculations and turning up weekly or monthly to buy Bitcoin when I can just put in the lump sum and focus on other things.

DCA method should be for those who do not have huge amount of money to buy at once but have regular income like salary; part of this regular income can be converted into Bitcoin through the DCA method.

[jaberwock]

Lump sum and DCA are just two terms for investment strategies - but they are also mutually beneficial if you are a long-term investment holder. Someone who can save $200 at the end of the month can invest with lump sum 1x/ month - especially during a dip. They can do it consistently with the same amount every month - meaning they also do DCA 12x a year with $200 every month instead of buying $600 every 4 months.

I actually don't have a problem with the two strategies above as long as they are long-term investments - that's because the end goal is to generate profits. It takes good analysis to determine whether you need to buy a lump sum or do a DCA to get a lower average price - but I can combine both and adjust to market conditions.

Yeah, but it wasn't lump sum is mostly the term that is being used but it was all-in or sometimes yolo. I can only mostly hear the word lump sum in money talks and, loan talks but I think both are still part of the economic discussion.

If we are into long term investing, I think the one that can give us a benefit the most is by doing Dollar-Cost-Averaging because we can sometimes buy at a lowest price using it but if we will only buy one time we can miss those good buying moments. Maybe a good analysis is needed to decide if which one should we go for but that isn't about the market, but about our financial condition or capabilities.

[Salahmu]

Both Lump sum and DCA are very good strategies but it all depends on the investors capital, although among the two DCA strategy for accumulation is mostly use by the beginners who doesn't have much capital to use for accumulating Bitcoin so DCA strategy allows or enables them to keep accumulate using the little money they can afford by slowly and consistently accumulating.

 And one of the things about DCA is that it doesn't matter how far Bitcoin price has gone you will always accumulate since the strategy is slowly accumulating with only what you can afford with risk management.

Perhaps Lum sum is the opposite of DCA strategy because lump sum is when you have enough funds on your portfolio Instead of going through the stress of buying a bit by bit of Bitcoin you could as well buy everything at once when the price is favourable, but although I prefer using the two sometimes, reason been that while you wait for Bitcoin price to dip down so that it can enable us lump sum and if the Price move otherwise perhaps at that time we can re strategize to DCA by accumulating some Bitcoin while waiting the price to dip the way we expect it.

[Darker45]

~snip~

Let's not underestimate lump-sum buying too much. Let's not go down the road connoting that DCA is wise, right, recommended, and so on and lump-sum is wrong and all the opposites. Yes, we cannot have perfect timing, but resources are available. You can study and analyze Bitcoin's movements and tendencies perusing all kinds of Bitcoin charts and tools. From there, you can set a price or a price range for your lump-sum purchases.

Take note that lump-sum doesn't necessarily mean one-time purchase. You can buy right now with most of your money and set aside the remainder in case Bitcoin drops back to $20,000 or below. Or you can divide your money into 3 parts and use 1 part to buy today, keep the other 2 in case Bitcoin drops, but if the price rises instead, use 1 part to buy at $30,000. The other one is reserved for the worst case scenario. This isn't strictly the DCA that everybody is talking about, but I think this is also a good approach.

It is still a DCA.
"You can buy right now with most of your money and set aside the remainder" - means that you just made an initial investment, and you still reserved some money for your next investment in case the price of Bitcoin drops. The fact that an investment was made/planned to be done in a different timeframe, you can't treat it as a lump sum anymore.

We really can't deny that the wisest strategy to accumulate Bitcoin is DCA. By regularly investing, gives the advantage of reducing the effect of volatility during our accumulation of Bitcoin. Also, if ever the price of Bitcoin suddenly drops, you won't be thinking of whether you will buy or not, because you already planned on regularly purchasing Bitcoin.

It is not DCA.

So what if there's a reserved money in case the price of Bitcoin drops? Does it automatically mean I'm involved in DCA? Of course, not. Again, lump-sum buying doesn't mean one-time purchase. If that's what you mean, then everybody is into DCA because I'm sure everybody has purchased Bitcoin more than once. But DCA doesn't just mean buying Bitcoin 2 times or more.

In the first place, if you speculate on the possible future movements of Bitcoin and do the buying according to that, you're not into DCA. If you're buying according to the price, you're not doing DCA.

Here are at least 3 definitions of DCA:

• Bitpay- "In the traditional finance world, dollar-cost averaging (DCA) is a time-honored investment strategy that involves purchasing set amounts of stock at regular intervals, whether the price is high or low." "Dollar-cost averaging (DCA) means making smaller, equal investments on an ongoing basis, instead of making large or irregular crypto buys."^[1]
• Coinbase- "DCA is a long-term strategy, where an investor regularly buys smaller amounts of an asset over a period of time, no matter the price (for example, investing $100 in Bitcoin every month for a year, instead of $1,200 at once)."^[2]
• Cointelegraph- "In the case of DCA, it’s initially about investing a certain amount of money in a predefined asset and at a fixed time."^[3]

[1] https://bitpay.com/blog/dollar-cost-averaging-crypto/
[2] https://www.coinbase.com/learn/tips-and-tutorials/dollar-cost-averaging
[3] https://cointelegraph.com/news/what-is-dollar-cost-averaging-dca-and-how-does-it-work

[GbitG]

A good trader is one who knows how to diversify between these strategies according to the market situation.

Yes, of course, a wise trader has this quality that he knows when and what strategy to use to see market conditions and make a profit. But the quality of implementing the strategy depends on your capital and how much you can invest in the market.

I will also show my position on the strategies of DCA and Lam Sum. Let's see which strategy is better and what market experience people say about it. It is true that in the past six years, LAMP SAM has performed consistently and better than DCA. But this does not mean that DCA is a bad strategy; rather, it means that it depends on you, as an experienced trader, what your reaction is to the movement of the market.
As Lamp Sam performed well in the past 6 years, traders emphasized this strategy, but the trend of up simulation analysis is more on DCA because, in the current market conditions, only DCA performance has been seen.

Therefore, I also believe that it is better to use the DCA strategy in the current situation because the volatility in the market has increased with the entry of big people and institutions into the market compared to before, and the price possibility from a technical analysis and long-term perspective can't be speculated on except in a few months.
So I think the DCA strategy is better than LAMP SAM for small portfolio people like us.

[justdimin]

I would go with the lump-sum, assuming you mean a big amount when the price drops. That once held for long gives you enough price to sell at a decent profit. This means that instead of buying every month in DCA you buy once every 4-6months during a bear market and you sell like that in a bull market. Use the profit to buy back at the next bear market and continue to multiply your money.

This needs patience and by that I mean a lot of it. Fortunately I can do that because I have other sources of income. So that cushioning is needed for anyone attempting this method.

I will also do the same thing if I notice a considerable drop in price and also have the money to buy. I don't really see any need stressing myself with calculations and turning up weekly or monthly to buy Bitcoin when I can just put in the lump sum and focus on other things.

DCA method should be for those who do not have huge amount of money to buy at once but have regular income like salary; part of this regular income can be converted into Bitcoin through the DCA method.

Well if you see a considerable drop then it is of course smarter to go in lump sum so that you would take advantage of the situation, however I believe that DCA could be better for the long term, because price doesn't drop all the time at all times, sometimes it does drop and lump sum makes sense only during those times, in other times that doesn't really make sense.

Of course it's your decision and you can do whatever you want with it, if you want to go all in then you can go all in, if you do not want to go all in then you do not have to. Me personally, I prefer going with just purchase first of every month when I get my salary, I put 10% of my salary into bitcoin every single month (if I can) and that makes it better, no matter what the price is.

[ScoobyDu]

As a newbie in bitcoin, i always choose Dollar Cost Averaging. Because at start nobody have to invest all of his money in bitcoin. he must prefer to make investment in installment.

And also Lump-sum investment can be useful if you start learning how the market is behaving. but sometime market can be highly unpredictable, and even experienced traders can't make investment correctly.

[lixer]

As far as I know — in most cases, lump sum is the way to go assuming you can really just hold and not sell and attempt to buy lower. The sole reason why DCA is heavily recommended is because it makes the 'investor' less susceptible to huge (temporary) drawdowns. Some investors that are down a huge chunk tend to sell their stack to hopefully "buy back lower".

Basically, lumpsum purchases are good if the market is totally at the bottom so that when you buy and the market starts recovering from that point, you will have bought your assets at almost the best price because if you start doing DCA when it's at the bottom and keep buying when it's recovering, you will be getting a bit more expensive price after every purchase because the market will be going up, and that will result in you getting a lower quantity at the end.

DCA is useful when you are not really certain if the market will go up or down at some point and you don't really want to miss the current price point because you think it isn't bad. So, you start buying with a portion of your capital and then keep doing that after a specific interval of it either going up or down.

[snowpega]

As i aforementioned at the start of this thread;

Note: This thread may helpful to other member who just start their BitcoinBTC accumulation just now. So, Share your knowledge, opinions and experience accordingly. Many Thanks!

Thank Y'All for Sharing your opinions,Experience and knowledge To Make This Thread Useful.

Code:

1. philipma1957         11. _BlackStar               21. Apocollapse        31. pixie85             41. Salahmu
2. lovesmayfamilis      12. TheUltraElite            22. justdimin          32. ZAINmalik75         42. adultcrypto
3. mk4                  13. serveria.com             23. Mr.right85         33. Dave1               43. spectre71
4. The Cryptovator      14. coolcoinz                24. Vaculin            34. gunhell16           44. ScoobyDu
5. Ale88                15. jaberwock                25. lixer              35. Faisal2202          45. Bitcoinpoly
6. Darker45             16. Rruchi man               26. passwordnow        36. DabsPoorVersion     
7. DeathAngel           17. _act_                    27. BitcoinPanther     37. angrybirdy          
8. Don Pedro Dinero     18. Die_empty                28. Eternad            38. GbitG                  
9. Husires              19. dansus021                29. Blitzboy           39. Sim_card            
10. crwth               20. SquirrelJulietGarden     30. panganib999        40. Gaza13              

I am Really Happy to see you all here. I read all of the replies of this thread. You People really share your good experience, knowledge and your opinions to make this thread useful to other members who just started their journey for the accumulation of Bitcoin and still thinking which strategy they should use for the accumulation of bitcoin. Many Thanks!


Kind regards!

-snowpega-

[Wind_FURY]

End: it is my part over the discussion "DCA Vs Lump-sum" So, Please must share your thoughts, opinion & Knowledge over this topic "DCA Vs Lump-sum" to make this thread useful for me and my other beloved members of the Bitcointalk community.

-snowpega-

Personally, I prefer looking for discounts, and buy the DIP and HODL. I know that DIPs could go lower after the purchase sometimes, but having a discount is definitely better than no discount if you ask me. But for the topic, "Lump sum vs. DCA", I believe from a plebs perspective just do what you are comfortable doing, do what gives you the least stress/anxiety, and do what makes you happy. In fact, you can do both if you want to, no?

¯\_(ツ)_/¯

[BITCOIN4X]

~Snip

Personally, I prefer looking for discounts, and buy the DIP and HODL. I know that DIPs could go lower after the purchase sometimes, but having a discount is definitely better than no discount if you ask me. But for the topic, "Lump sum vs. DCA", I believe from a plebs perspective just do what you are comfortable doing, do what gives you the least stress/anxiety, and do what makes you happy. In fact, you can do both if you want to, no?

¯\_(ツ)_/¯

Lump Sum and DCA are fine to do regardless of which one they prefer the most. In fact both strategies will only be profitable if they are actually executed at the right time. DCA at any price is fine mainly because of their approach to accumulation, but Lump Sum on dip is also fine. In my opinion, both strategies are mutually beneficial rather than finding out which one is the best between the two, but of course this must be adjusted to market conditions and also the budget we have.

[Casdinyard]

DCA is good, but there are sometimes that you will leave DCA alone and invest big amount. Let us say that you have been DCAing since some months ago and the price of bitcoin within one week fall to $20000, if you have money that you can use to invest at once, you will not hesitate but invest it immediately becuase you have speculated that bitcoin price may not fall further.

DCA is good when you do not know if the price of bitcoin will not increase or decrease. Or if you do not have enough money to invest at once.

You may invest at once if you analyzed the price of bitcoin is low already.

Investors may go for either of the two, it is what the price of bitcoin is at that will determine that.

There is also a time that investing is not good, when bitcoin has increased significantly several times.

DCA is good regardless of the situation. What makes it not good for you guys is the fact that you're making a big deal out of crypto's price action when it was the very reason that you're using DCA in the first place which is to still have a stake on bitcoin regardless of the current price trend. You ever see people stopping with their DCA when there's a price decline? At least those who are sensible enough to always follow through with it no matter how the market looks?

Again, DCA is a surefire strategy to always earn in the crypto industry provided that you follow through with the regularities that it will force you to be. Fall short and you already fail.

[ScoobyDu]

Lump Sum and DCA are fine to do regardless of which one they prefer the most. In fact both strategies will only be profitable if they are actually executed at the right time. DCA at any price is fine mainly because of their approach to accumulation, but Lump Sum on dip is also fine. In my opinion, both strategies are mutually beneficial rather than finding out which one is the best between the two, but of course this must be adjusted to market conditions and also the budget we have.

yes, both strategies have their own importance. I think DCA provides a disciplined method for accumulating assets over time, and it's great for those who want to reduce their risk and they don't not need to worry too much about market fluctuation. And executing a Lump Sum investment during market dips can also be a sound strategy, taking advantage of lower prices.

[Jegileman]

DCA is good actually but not everyone knows how to use it. As for me I like DCA but for real i don’t really know how to use it, so I use smart portfolio.

How does smart portfolio function? I've never heard of it before, and I've yet to see a better way to accumulate bitcoin than the DCA method.  How does smart portfolio operate if it is good?
DCA is not difficult to accomplish; all that is required is your commitment and effort, as well as consistency. Everyone desires consistency, yet the influx of financial resources always limits the DCA method.  However, what is more necessary is to stick with the strategy for a long time in order to thrive and gain substantial profits afterward.

[KiaKia]

Lack of knowing the exact bottom is why we use DCA strategy but when a massive dump hit the market it's a good time to use high sum of money to take that opportunity, assuming Bitcoin goes 40% down it's a big buying opportunity because you are buying the most valuable digital asset for lesser price and this opportunity will run out very quick, after every massive dump bitcoin always recover fast, it has happened so many times already.

And when the market is kinda calm and weeks goes by and monthly go by its accumulation phase, just keep using few dollars to buy some amount of Bitcoin for the time being, in this phase Bitcoin always go side ways for a long period of time.

The reason why I like Bitcoin investment is because you don't have to monitor anything else, you can keep buying Bitcoin while you are on holiday on an island a lot anywhere, compare to other altcoins that need constant monitoring, maybe a change of smart contract or other, they are so annoying.