Dollar Cost Averaging with costavg.com include exchange fee

[franky1]

i personally would do a little bit of custom DCA

if was starting to buy in right after a ATH i would look at the ATH and the price i want to begin DCA
EG if ATH was $70k and i want to start at the $50k price point

i would see if i can afford upto $150 if the price is right
 and then calculate a reduction of payment if price goes up and a increase of payment if price goes down
EG
$70k   $0
$66k   $10
$62k   $20
$58k   $30
$54k   $40
$50k   $50 <- start here
$46k   $60
$42k   $70
$38k   $80
$34k   $90
$30k   $100
$26k   $110
$22k   $120
$18k   $130
$14k   $140
$10k   $150

that way you buy more in good times and but less in bad time

Those are not bad ideas to the extent that I understand what you are saying, except if someone is brand new to bitcoin, then maybe they are going to be buying every week at the amounts that you mentioned, but we would not have the luxury of waiting for $50k, we would have to start ASAP... and it can take a while to establish a sufficiently decently sized position in order to be prepared for UP.. (that is if the person is a newbie to bitcoin).  

i was using OP example when his example started at 50k just after the last ATH

for instance someone starting now would be investing $80 at the ~$38k price today

[1714656112]

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[1714656112]

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[JayJuanGee]

i personally would do a little bit of custom DCA

if was starting to buy in right after a ATH i would look at the ATH and the price i want to begin DCA
EG if ATH was $70k and i want to start at the $50k price point
i would see if i can afford upto $150 if the price is right
 and then calculate a reduction of payment if price goes up and a increase of payment if price goes down
EG
$70k   $0
$66k   $10
$62k   $20
$58k   $30
$54k   $40
$50k   $50 <- start here
$46k   $60
$42k   $70
$38k   $80
$34k   $90
$30k   $100
$26k   $110
$22k   $120
$18k   $130
$14k   $140
$10k   $150

that way you buy more in good times and but less in bad time

Those are not bad ideas to the extent that I understand what you are saying, except if someone is brand new to bitcoin, then maybe they are going to be buying every week at the amounts that you mentioned, but we would not have the luxury of waiting for $50k, we would have to start ASAP... and it can take a while to establish a sufficiently decently sized position in order to be prepared for UP.. (that is if the person is a newbie to bitcoin).  

i was using OP example when his example started at 50k just after the last ATH

for instance someone starting now would be investing $80 at the ~$38k price today

Ok.  I can see a little better about what you meant, and I like the idea of adjusting the amount based on BTC price; however, I think that the whole formula would need to be rethought, if the person is brand new to bitcoin, and if he is just starting now, then maybe after 3 weeks we end up at $70k, so all of a sudden, he has ONLY invested for three weeks and would not be adequately prepared for UP if his budget was so limited, even though going to zero might have made sense in late 2021 when we were at $70k, but probably ONLY for the person who would be getting close to considering that he has reached enough of a BTC stash.

I believe that I know how I would personally resolve the matter, which would likely be to continue to invest on the way up, even if the BTC price might end up going up to $200k or more.. and so one of the problems if a person has the ability to invest in that kind of a range that goes up to $150 per week under the most dippening of situations, probably something close to the max amount of $150 per week could be applied to anything below the 200-week moving average - even though I can see why there could be a bit of a slopening, even a bit below the 200-week moving average, but I would not see any slopening to be necessary or justified for any prices below $25k, so therefore the DCA would be maxed out if it were to get to $25k for sure... maybe on the way up, there might be a need to max out on the downside around $50 per week starting at around $100k, so the range that I would see would be going between $50 per week and $150 per week between around $25k and $100k-ish...

Similar ideas, but I would still be wanting to continue to buy for anyone who is just getting into BTC and maybe even there could be a need to continue to follow some variations of a formula that involves continuing buying and perhaps even strict minimums such as the $50 per week that I mentioned for when the BTC price is going up and making new ATHs for 5 years or longer to continue to accumulate before letting off.. or maybe supplementing with other accumulation strategies. and surely I don't believe in selling in order to accumulate BTC. .but various buying strategies until some internal and individually tailored goals might be reached.

Even a person who had been investing into bitcoin for 5 years with an average of around $100 per week would have $5,200 invested after a year and would have around $26,200 after 5 years, so that might not be enough to really get the person in a great place as far as how much invested, and maybe would need to reassess the strategy twice in the first year, and then at least on a yearly basis in order to figure out if more or less aggressiveness needs to be incorporated into the BTC accumulation strategy, and it may even end up taking 10-20 years worth of accumulation in which some comforts might be reached that enough BTC has been accumulated, and surely somewhere along the line some diversification might be needed too.. maybe within the first 5 years, but if not within the first 5 years then maybe soon after the first 5 years.

Our opinions are likely going to differ regarding these kinds of priorities, yet bitcoin does continue to seem to be amongst the best of investments, if not the best investment, so there probably is no need to get greedy, but we also have to be careful not to be too whimpy either, and one of the BIGGEST dangers for any newer bitcoiner is to overdo it in one way or another and then end up either getting blown out of his position or alternatively holding too many coins with third parties rather than making sure that they are regularly transferred to self-custody so that no more than 20% are ever held by any 3rd parties (or some other percentage that the person considers to be appropriate risk trade-offs).

[franky1]

again
i was going via the scenario of starting in 2021

these days(late 2023). id know the value-premium window(mining low high cost) the market speculates between, is not $10k-$70k window anymore
its more like $20k-$170k potential

so the $150 max weekly investment would look like

$170k  pay $0
$160k  pay $10
$150k  pay $20
$140k  pay $30
$130k  pay $40
$120k  pay $50
$110k  pay $60
$100k  pay $70
$90k    pay $80
$80k    pay $90
$70k    pay $100
$60k    pay $110
$50k    pay $120
$40k    pay $130
$30k    pay $140
$20k    pay $150

remember the main rule of the game
buy low sell high

people need to set a goal for when to sell.. which (in 2021 scenario) would be small amounts above $70k incrementing to sell more sats the higher it goes

i know the IDEA of DCA is for total newbies that know nothing should just throw money at a asset forever without thought or concern endlessly.. but reality of investing.. investors should know atleast something about the market they are getting in to ensure they are not buying high and end up having a real world emergency to sell low

i know the idea of just a standing order set fixed amount per month is like a set monthly pension deposit. but smart investors review their pensions and do change plans mid flow (thats what pension/portfolio managers do)

[avikz]

Lol! Dollar cost averaging is a very simple calculation. Not sure why you require an application to do it for you. You can simply use an Excel file and couple of formulas to do it.

I hope you haven't integrated your exchange account to this platform. As long as it is a manual platform, it should be ok from security perspective. But never link your exchange account to any other platform.

[fenixosup]

I prefer old but gold excel way with orders history export from exchange. Currently dcaing for more than a year, feeling good

[bayu7adi]

It turns out, over a certain period, it can still lead to losses for someone who isn't patient enough to wait for the right moment. Take the picture I sent earlier as an example, where DCA can be harmful if someone stops doing it at the timing marked in yellow. In that case, the DCA investor doesn't gain profits from the accumulation they've been doing. This happened over 11 months (May 2022 - Feb 2023) if he starting dca from January 2022.

In conclusion, even when doing DCA, it's essential to have a strong hand to keep making purchases even when prices are down, and our assets are decreasing. Typically, people with weaker hand might immediately sell at a loss when faced with minor FUD . This is a regret for them because, in reality, if continued, it could bring in profits that could improve savings.

[hugeblack]

This site gives a lot of details that may be unnecessary, but is there a Dollar Cost Averaging service that has the ability to calculate Bitcoin price predictions? It will be ideal for anyone who wants to invest in the future by having several forecasting models or choosing and including a model of your choice. In general, I have tried many services and I can say that this site is good and the interface is beautiful, although I see that DCA does not work perfectly with altCOINS.

[franky1]

In conclusion, even when doing DCA, it's essential to have a strong hand to keep making purchases even when prices are down, and our assets are decreasing. Typically, people with weaker hand might immediately sell at a loss when faced with minor FUD . This is a regret for them because, in reality, if continued, it could bring in profits that could improve savings.

hype/pump = buy less - sell more
fud/dump=buy more - sell less

buy the fud sell the hype

[Best-mary]

The DCA doesn't need too much lecture or the use of software or any third party. Going the extra mile to do it is part of how to measure the weakness of people as they often depend on external things for everything. Just divide your money into say 10 equal parts and invest at some prevailing time and price of the asset. This is what any primary school pupil could do with ease.

The main goal is for an investor not to miss out on whether the price of an asset will be favourable or advantageous, such a person using the DCA will be able to average their risks of striking the asset through this approach.

Absolutely, some exchanges have designed DCA in a way that one could automatically have it buy and sell when the price rises and falls which is the Dual investment I talk about most often

[JayJuanGee]

again
i was going via the scenario of starting in 2021

these days(late 2023). id know the value-premium window(mining low high) the market speculates between, is not $10k-$70k window anymore
its more like $20k-$170k potential

so the $150 max weekly investment would look like

$170k  pay $0
$160k  pay $10
$150k  pay $20
$140k  pay $30
$130k  pay $40
$120k  pay $50
$110k  pay $60
$100k  pay $70
$90k    pay $80
$80k    pay $90
$70k    pay $100
$60k    pay $110
$50k    pay $120
$40k    pay $130
$30k    pay $140
$20k    pay $150

Even though I don't completely agree with you, for the reasons stated in my earlier post, but I do recognize that you are seeming to try  to work within the parameters of the scenario that was given to you, but I also like to consider where the person is in his/her bitcoin accumulation journey, which is the reason that I would not go to zero prior to reaching some meaningful goals, which might take a newbie 5-10 years or more to reach.. and even longer if they are limiting their DCA budget amounts by so much.

remember the main rule of the game
buy low sell high

I am assuming long term investments, so I am not thinking about selling.. until perhaps much after the buys have been made.. maybe even 10-20 years later, and surely the more that a portfolio is in profits, then the more liberties that there are to sell.. presuming that the BTC accumulation targets had been reached.

I also find it problematic to sell BTC in order to accumulate more... which I believe I already touched upon as much as would be necessary for this line of discussion.

people need to set a goal for when to sell.. which (in 2021 scenario) would be small amounts above $70k incrementing to sell more sats the higher it goes

If someone has been in BTC for less than a whole cycle, then maybe it is too soon to be setting goals (targets) to sell BTC, and there are plenty of people who have been in BTC for closer to a couple of cycles and still have not sold any BTC, even though the position of their BTC portfolio can start to inform them where they are at and whether it is practical, prudent and even necessary to have selling as part of the strategy, which I would think that selling only starts to make sense when the BTC accumulation targets have already been met and/or exceeded.. and yeah, maybe this is getting a bit abstract if we don't attempt to apply it to any specific example.. but I have come to question selling strategies in the period of less than a cycle especially for newbies, and surely if someone comes to bitcoin and they already have $100k invested in various assets, and they decide to invest $20k into bitcoin, that person might be in a different position than someone who is DCAing with relatively small amounts over many years.. which is more the topic (or the kinds of examples for this thread).

i know the IDEA of DCA is for total newbies that know nothing should just throw money at a asset forever without thought or concern endlessly.. but reality of investing.. investors should know atleast something about the market they are getting in to ensure they are not buying high and end up having a real world emergency to sell low

Creation and maintenance of a cashflow (or expenses) to cover at least 6 months plus emergencies is a separate question, and more important for newbies as compared with someone who has many different investments in which s/he would be able to draw from if there were emergencies.  Otherwise, yes, DCA in its more pure forum is a somewhat blind and long term investment strategy that continues to buy no matter the price based on budgetary considerations and also maybe until a point of reaching a certain amount of investment into the asset, which could take a whole hell of a lot of time to build an investment portfolio (whether BTC only and/or with other assets) in which it would be justifiable to alter the strategy of strict DCA.

Of course, anyone can learn along the way and to tailor their DCA approach, but I am not going to just assume away that they are learning about an asset merely because they had been DCAing into it, even if the fact that people invest will likely cause them to pay more attention to the asset, but they might not pay enough attention in order to really get to understand it in any kind of way that would justify that they deviate from a more strict DCA approach.

i know the idea of just a standing order set fixed amount per month is like a set monthly pension deposit. but smart investors review their pensions and do change plans mid flow (thats what pension/portfolio managers do)

There are some kinds of benefits (something like pensions) that are not individually manageable, so usually the individual cannot be changing those around.  But something like a 401k or some other retirement benefits might have more options, abilities to select assets and even some of them will have varying terms with some of the assets having low to no fees and others having fees (I guess management fees)... and so a person could DCA into a 401k or an account like that, but they usually cannot DCA into a pension because pensions are based on various aspects that involve wages, time in service, time in grade and maybe some other ways to figure out what the benefits might be at the time that a person might be able to draw from them.. .and maybe sometimes they can transfer their pension to another employer or even more easily to transfer a 401k.. Pensions are way less common these days than they were before the 90s, since in the 90s a lot of 401k plans were either supplementing or even in cases completely replacing pensions.. to the extent that any employees get any of these kinds of benefits in some lower income locations..

[jerry0]

What about when you send the btc to a wallet which also cost fees?  How you use calculate for that?

[Churchillvv]

DCA is an excellent strategy and achieves a good return on investment, but it is not the best strategy for all times.

There are 3 (three) different strategies and more that has been mention in this thread if you have read through or at least a little of the pages, this strategies include (Dollar cost averaging, Buying in the dips and lup sum buying) but the most convenient of all is DCA because of its time management factor, consistency that guarantees no chances of missing out the benefits of Bitcoin and last but not the least, the fact that it allows you to take care of other bills at the same time making investment too.
In this different strategies it all depends on the one that suits you more, if you get income on a salary or wages level you can consider DCA or if you hit your income once in a period you can consider lump sum or buying on the dips.
Nobody said dollar cost averaging is the best at all times but the best compared to other strategies.

What about when you send the btc to a wallet which also cost fees?  How you use calculate for that?

The way to calculate for using the DCA method is by increasing your investment amount maybe if you usually invest $50 for example on a weekly basis you can increase with $1 or more depending on the transaction fee in order to maintain your set amount of accumulation but if you can't afford to pay for this fees you can use exchanges that offer lesser fees but it only requires you patients. though there are transaction accelerators that can increase the speed of your transaction when you pay less fees but at least in all you still have to DCA no matter the circumstances.

[panganib999]

While sites like these are certainly helpful especially for newbies, I would still choose the conventional way at which you execute dollar-cost averaging. Why? Well, apart from the fact that you can't really trust sites like these with your money, another would be that it doesn't instill the same sense of discipline as actual brick and mortar dollar cost averaging, or maybe that's just boomer me. Regardless, if you've found a surefire way to execute your DCA, whether it's assisted or you duked it out yourself, the fact thereof that you're already thinking doing DCA is more than enough reason to actually applaud yourself of what you did. You're already doing more than what half the industry is able to do.

[Catenaccio]

What about when you send the btc to a wallet which also cost fees?  How you use calculate for that?

Wallet costs fee for deposit?

If any wallet charges you a deposit fee, stop using it because it is a crap and greed wallet.

Use open source non custodial wallet, you will not have to pay deposit fee. With good wallets, you will only have to pay on-chain transaction fee when you move your coins on chain and the fee will be paid directly to miners who confirm your transaction.

https://bitcoin.org/en/choose-your-wallet
https://walletscrutiny.com/
https://www.cryptowisser.com/wallets/
https://www.lopp.net/bitcoin-information/recommended-wallets.html

[wallet4bitcoin]

The DCA doesn't need too much lecture or the use of software or any third party. Going the extra mile to do it is part of how to measure the weakness of people as they often depend on external things for everything. Just divide your money into say 10 equal parts and invest at some prevailing time and price of the asset. This is what any primary school pupil could do with ease.

The main goal is for an investor not to miss out on whether the price of an asset will be favourable or advantageous, such a person using the DCA will be able to average their risks of striking the asset through this approach.

The concept of DCA is best delivered manually. I have known it to be manually bought at every stipulated interval than with automated systems. Let the investor take the pains to DCA rather than use system as the downsides might not be welcomed.

DCA was meant to give advantage to an investor to get in at various levels and still break even into profit averagely in the case where the price of the token keeps nuking.

[UchihaSarada]

The concept of DCA is best delivered manually. I have known it to be manually bought at every stipulated interval than with automated systems. Let the investor take the pains to DCA rather than use system as the downsides might not be welcomed.

Compared to other investment methods, DCA is the simplest method and requires the least amount of effort, so doing it yourself is better than relying on automated systems. I think it won't be too time consuming if we already have a specific DCA time level (weekly, monthly,...). In addition, there is another DCA method that I think is also quite effective to consider which is to buy every time Bitcoin price adjusts 10% or more, and will stop buying when Bitcoin breaks the old peak of 69k USD.
DCA in this way may take a little more time watching the market and your patience, but in return your average buying price will be more optimized. Besides, choosing a reasonable time to DCA is also a factor that needs to be considered, for example, from the beginning of 2023 to now is the best time to DCA Bitcoin.

[Maus0728]

Nice website to track your DCA and the prospect that you're getting out of your investments but I'd rather be someone that's doing DCA consistently but not monitoring it day by day, I feel like if I psychologically condition myself to not think about my investment, the temptation to spend them or sell them for a small profit is not going to be present, that way I can just fully focus on investing and nothing more.

I'm tempted to check on my hoard to see the fees but I'm having second thoughts doing so, might make me act up and spend a little, not going to be a good idea as that small spend is going to be a domino effect of small spending until I exhaust that hoard, I'll keep this website in my back pocket just in case.

[snowpega]

I have never used any kind of third-party app, website, or software for doing DCA (Doller-cost-average) even I would never suggest anyone to use applications or websites for doing DCA as these applications are automated and sometimes take undesired entry into the market that you do not want besides that manual dollar cost averaging is the most recommended part as you can take any of the entry whenever you want.

Sometimes you do not want to make any entry in the market and that day you can miss taking entry into the market and you may be waiting for some moments of markets to occur and from that time you can start taking entries again in the market as usual. There may be some other consideration that investors can keep in their mind which is some comfort market zones they can take one to two entries as per day if the market allows them to make more than one entry per day.

[Catenaccio]

I have never used any kind of third-party app, website, or software for doing DCA (Doller-cost-average) even I would never suggest anyone to use applications or websites for doing DCA as these applications are automated and sometimes take undesired entry into the market that you do not want besides that manual dollar cost averaging is the most recommended part as you can take any of the entry whenever you want.

You can use third party websites, tools for estimating your DCA plans and what you can get from it. By input some parameters and get DCA results backward, you can speculate what you might get onwards.

With actual purchases, some exchanges allow you to execute regular purchases with set-up time frame between two purchases. I don't know how many people like and use it because personally I see very little demand to use it. It's always easy to login my account and make a purchase for DCA.

How to Use Recurring Buy?

[bettercrypto]

DCA is actually something even newbies entering the field of cryptocurrency can do if they immediately decide to buy Bitcoin or other cryptocurrencies they want, because DCA is actually not difficult to do. You will only accumulate bitcoin little by little when you have extra money for it.

And it is also an advantage when an individual investor has a large source of income, especially if he has several businesses managed in the traditional business industry. And most of all this is easy also for the rich person who are open for this kind of investment in Bitcoin.