High transaction fees affects those who DCA

[yhiaali3]

Unlike you, the rise in Bitcoin network fees has had a positive impact on my DCA strategy, as I intended to withdraw some Bitcoin from my wallet to buy some household items but changed my mind as a result of the rise in fees.

The solutions available to you currently are either to use the Bitcoin lightning network or try to send one payment every month instead of sending it every week, or wait until the problem of high fees may be solved.

Personally, I prefer the second solution, i.e. sending one payment per month instead of sending it every week.

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[taufik123]

-snip-
The solutions available to you currently are either to use the Bitcoin lightning network or try to send one payment every month instead of sending it every week, or wait until the problem of high fees may be solved.

Personally, I prefer the second solution, i.e. sending one payment per month instead of sending it every week.

The use of Bitcoin's lightning network is actually the best solution, but due to the lack of development, many doubts it.
But now exchanges and some wallets support lightning networks as a way to make withdrawals and deposits with fees that are very cheap compared to regular networks.

This will support for small transactions such as doing DCA on a weekly or monthly basis.
But if you choose to make payments every month, it will be a fairly economical option.

[MarjorieZimmermanGinger]

The current Bitcoin fees wouldn't have mattered to me because I am not selling, but the fees do matter because I DCA, and I don't want to leave my coins in the centralized exchange. This month, I have spent roughly $5 to $10 in transaction fees when I DCA every week. It may seem small, but in my country, it's enough to cover my feeding expenses for a month cumulatively.

That's a problem for some people who take DCA and the high cost approach will force them to hold bitcoin on exchanges, even though we know that holding bitcoin on exchanges is not a viable option because we never know how the exchange will turn out. The amount of $5 to $10 for some countries is slightly larger because it can cover food costs for several weeks.

I discussed this issue with my friend, and he suggested I use an exchange that utilizes the Lightning Network. According to him, this would help me get off with no fees any day. While I'm considering this alternative, another option is to wait for a month or two, then use the amount we kept for weekly DCA, hold it for a month or two, and lump sum. This way, i would incur just a one time fee. What are your thoughts on this? I feel like I may use the money kept for DCA for other expenses.

Utilizing the Lightning Network might be an alternative, but I often use another method where every month I just withdraw assets from the exchange to the wallet I use. At a minimum, it can reduce transaction costs carried out routinely using the DCA method because we will try to accumulate costs once in the delivery period. Both are wise choices and it depends on how someone wants to choose and for me personally I might still choose the second method of the two methods you explained.

[coolcoinz]

The use of Bitcoin's lightning network is actually the best solution, but due to the lack of development, many doubts it.

It was in fact designed for small transactions like the ones that people who DCA send. It's either that or you save up/go lump sum.

I keep saying that DCA is only if you have no other way of buying bitcoin, so you get a monthly income/allowance/pension and you have to pay your bills which leaves you with a certain small amount of money to buy food, clothes, invest, therefore buying $50 worth of bitcoin every month seems like the way to go.
If you have savings, don't DCA, especially in the bull market when every month of waiting means you get less bitcoin for the same money. Ultimately you want the most bitcoin for the least fiat possible.

[Wiwo]

One of the things that Satoshi Nakamoto makes us understand in the Bitcoin whitepaper is that,  ~bitcoin should be allowed to develop naturally,' so for such as in the current situation in the Bitcoin network,  there must be a need to adapt to another sector of the networks that serve as alternatives as long as it will enhance your independent and privacy and being part of the bitcoin primary objectives.

I have set up a Bitcoin lightning network and have made a series of transactions on the network with almost zero fees,  so it's an aspect that I may want everyone to take a look at.

[ajiz138]

Unlike you, the rise in Bitcoin network fees has had a positive impact on my DCA strategy, as I intended to withdraw some Bitcoin from my wallet to buy some household items but changed my mind as a result of the rise in fees.

The solutions available to you currently are either to use the Bitcoin lightning network or try to send one payment every month instead of sending it every week, or wait until the problem of high fees may be solved.

Personally, I prefer the second solution, i.e. sending one payment per month instead of sending it every week.

The lightning network is indeed a good option but still a small percentage of DCAs save on the lightning network, we know that this network still has few users or needs further development but I think most people still use the regular network to store their BTC.

Currently waiting for costs to go down will take a long time, in fact it has been more than a month since the costs have been above $2 and the average cost is $2 to $4. Profit at this time, so if the situation continues like this then do this option because it will save you money rather than doing it every week. it costs more money if you do that.

I think many people will take this option, including me, who will do it every 1 month or even more to save the BTC that is issued from withdrawals.

[Captain Corporate]

Why do people not use exchanges that deal with banks? Local exchanges are a thing. I mean I use something called "paribu" in my nation and that means I send from my bank account to paribu and they do not charge anything. In the end, if you are not happy with that, just make it once a month, surely the price will go up, but calculate how much do you think you will lose from transactions and how much you would earn from the price increase. If buying every week is more profitable then do that, if that is not profitable and you lose then don't do that. Its as simple as that and would definitely give you a great return without a doubt, it should be an important aspect of your investment.

[taufik123]

It was in fact designed for small transactions like the ones that people who DCA send. It's either that or you save up/go lump sum.

I keep saying that DCA is only if you have no other way of buying bitcoin, so you get a monthly income/allowance/pension and you have to pay your bills which leaves you with a certain small amount of money to buy food, clothes, invest, therefore buying $50 worth of bitcoin every month seems like the way to go.
-snip-

If the maximum monthly purchase is only $50, I am reminded of the Lightning Bitcoin ATM project that can make Bitcoin purchases with Fiat or traditional currencies directly using many commonly used payment methods.

https://btcln.app/atm/, this Lightning ATM is the first Lightning ATM in Indonesia that can support Lightning Network by converting rupiah to Satoshi very easily and quickly.
Minimum purchase IDR 1500 ($0.1) and maximum purchase IDR 25,000( $1.7)
Only 10x transaction per day is allowed.



I've also created the thread here
[SHARE] Lightning ATM ( Mainan ) - Beli BITCOIN Eceran Mulai dari Rp.1500

[philipma1957]

It was in fact designed for small transactions like the ones that people who DCA send. It's either that or you save up/go lump sum.

I keep saying that DCA is only if you have no other way of buying bitcoin, so you get a monthly income/allowance/pension and you have to pay your bills which leaves you with a certain small amount of money to buy food, clothes, invest, therefore buying $50 worth of bitcoin every month seems like the way to go.
-snip-

If the maximum monthly purchase is only $50, I am reminded of the Lightning Bitcoin ATM project that can make Bitcoin purchases with Fiat or traditional currencies directly using many commonly used payment methods.

https://btcln.app/atm/, this Lightning ATM is the first Lightning ATM in Indonesia that can support Lightning Network by converting rupiah to Satoshi very easily and quickly.
Minimum purchase IDR 1500 ($0.1) and maximum purchase IDR 25,000( $1.7)
Only 10x transaction per day is allowed.

I've also created the thread here
[SHARE] Lightning ATM ( Mainan ) - Beli BITCOIN Eceran Mulai dari Rp.1500

And if you are U.S.A. based good luck finding an exchange to do it with.

[Yamane_Keto]

High fees are not a permanent issue and the price of Bitcoin did not change much during this month. Instead of buying Bitcoin daily or weekly, accumulate Bitcoin and buy once a month or every two months. Thus, even if you pay $20 to confirm the transaction, it will be much less than the amount you use to buy Bitcoin in particular. With prices like these.
Leaving your money on the platform is not considered a good option, as there is a possibility that the platform will go bankrupt or your money will be confiscated, so buy in one payment only.

[stomachgrowls]

High fees are not a permanent issue and the price of Bitcoin did not change much during this month. Instead of buying Bitcoin daily or weekly, accumulate Bitcoin and buy once a month or every two months. Thus, even if you pay $20 to confirm the transaction, it will be much less than the amount you use to buy Bitcoin in particular. With prices like these.
Leaving your money on the platform is not considered a good option, as there is a possibility that the platform will go bankrupt or your money will be confiscated, so buy in one payment only.

This isnt the first time but for those who are just new and recently dived in into this market then they would normally be freaking out on whats fucking going on with the fees.They are expecting less but it turns out that it is almost that reaching up $20 but well this is much still better if we do compared into those erc20 or simply with ETH transactions on which everyday is incredibly high.  

If we do tend to check out https://mempool.space/ as of this moment then the fees is gradually lessening to 2 bucks which it isnt that bad compared on past days.
Its not always that be like this, there are really moments specially on that brc20 spam which i do heard of.

Its not something new and if you are not that willing to spend up to those high fees then let it subside and wait whether a few weeks i guess or  few days but usually
it do really takes some weeks before everything would goes back to normal.

[taufik123]

And if you are U.S.A. based good luck finding an exchange to do it with.

After Binance and Kraken got into trouble with the SEC, there are no more exchanges supporting Lightning for the US region.
Bitstamp, though still operating, does not accept deposit and withdrawals using LN.

There is only Coinbase, but the implementation of the LN network is still in the planning stage.
The U.S. is getting more and more rules, but are you free to do anything there that doesn't have to do with crypto?

https://github.com/theDavidCoen/LightningExchanges

[irhact]

I discussed this issue with my friend, and he suggested I use an exchange that utilizes the Lightning Network. According to him, this would help me get off with no fees any day. While I'm considering this alternative, another option is to wait for a month or two, then use the amount we kept for weekly DCA, hold it for a month or two, and lump sum. This way, i would incur just a one time fee. What are your thoughts on this? I feel like I may use the money kept for DCA for other expenses.

High transaction fees are going to affect everything and Investing weekly is just one of them. I'll go with the advice of keeping your money and saving it upto a month before buying and your DCA will change from weekly to monthly. When the transaction is back to normal that you can use cents to send your transaction that's when you can return to weekly investing. Change is constant and adjusting to find a better way to works for you in life is very important.

Only those individuals that have the money to spare that can be putting up high fees for miners to mine their transaction first but if you don't have the money then wait for the network to be less congested and continue with your transactions. Also you can use accelerators when your transaction are delaying, we have free accelerators that'll help you to accelerate your transaction since you don't have the extra money to pay high fees.

[adultcrypto]

I discussed this issue with my friend, and he suggested I use an exchange that utilizes the Lightning Network. According to him, this would help me get off with no fees any day. While I'm considering this alternative, another option is to wait for a month or two, then use the amount we kept for weekly DCA, hold it for a month or two, and lump sum. This way, i would incur just a one time fee. What are your thoughts on this? I feel like I may use the money kept for DCA for other expenses.

High transaction fees are going to affect everything and Investing weekly is just one of them. I'll go with the advice of keeping your money and saving it upto a month before buying and your DCA will change from weekly to monthly. When the transaction is back to normal that you can use cents to send your transaction that's when you can return to weekly investing. Change is constant and adjusting to find a better way to works for you in life is very important.

This is more like it and I see huge sense in your position on this. Even though the transaction fees has significantly reduced from what it was few weeks ago, it is still too high for someone performing weekly DCA especially when the capital is not that big. At the peak of the high fees, there were transactions whose fees were higher than the amount being transacted like those doing $10 - $20 weekly DCA. In a situation like this, it becomes extremely difficult continuing with the DCA method. Even the monthly DCA under this arrangement is not sustainable because it does not feel logical spending $33 to withdraw $80 into a private wallet. Well, it is good the fees has reduced of recent and soon it will become normal again.

[mirakal]

The current Bitcoin fees wouldn't have mattered to me because I am not selling, but the fees do matter because I DCA, and I don't want to leave my coins in the centralized exchange. This month, I have spent roughly $5 to $10 in transaction fees when I DCA every week. It may seem small, but in my country, it's enough to cover my feeding expenses for a month cumulatively.

I discussed this issue with my friend, and he suggested I use an exchange that utilizes the Lightning Network. According to him, this would help me get off with no fees any day. While I'm considering this alternative, another option is to wait for a month or two, then use the amount we kept for weekly DCA, hold it for a month or two, and lump sum. This way, i would incur just a one time fee. What are your thoughts on this? I feel like I may use the money kept for DCA for other expenses.

The high transaction fees certainly becomes annoying. Everyone gets affected and is really sucking into my nerves. But what else can we do than to wait for days or weeks until its back to normal. That's why instead of withdrawing or doing DCA weekly, do it monthly just to save up with the fees. For me, this could be the best option, unless if you decide to stop doing DCAing until the fees drops and return to normal.

Patience is the key. We all know that it won't take long and the issue will be fixed again. But my advice is never resort spending to other matters using your DCA budget.

[Dr.Bitcoin_Strange]

As long as you trust your exchange I don’t see any immediate need to withdraw.

OP, just like Boss OgNasty has said, another reputable member has also said this before: inasmuch as it is not safe to store your coin on the CEX, keeping your coin there for just a little period of time doesn't mean that your coin will be stolen or the exchange will be hacked at that very moment. Since the fee is high, if you DCA weekly, you can possibly accumulate the coins on the CEX for up to a month (4 weeks) or even eight weeks before you use just one fee to withdraw all the coins you have accumulated for the eight weeks.

[huu78]

I don't mean to offend but if you use btc, transaction fees of 10$ and below should not be a problem for you, if you have above 0.5 btc I think paying 5-10$ of 19k$ is not too excessive. but if you still want to use it, you have to pay attention to safety.
I wonder why people make a big deal out of small things when you are on to big things.

[lixer]

The current Bitcoin fees wouldn't have mattered to me because I am not selling, but the fees do matter because I DCA, and I don't want to leave my coins in the centralized exchange. This month, I have spent roughly $5 to $10 in transaction fees when I DCA every week. It may seem small, but in my country, it's enough to cover my feeding expenses for a month cumulatively.

I discussed this issue with my friend, and he suggested I use an exchange that utilizes the Lightning Network. According to him, this would help me get off with no fees any day. While I'm considering this alternative, another option is to wait for a month or two, then use the amount we kept for weekly DCA, hold it for a month or two, and lump sum. This way, i would incur just a one time fee. What are your thoughts on this? I feel like I may use the money kept for DCA for other expenses.

Well, the high fees are a concern for those who make frequent transactions, that's true. However, in your case, though I'm also not a fan of keeping a lot of funds at exchanges, I believe that's the only option you have for now. As suggested by others as well, maybe make withdrawals only after a month or so instead of doing it on a weekly basis to reduce the amount you will have to pay as fees, and who knows? The fees might become normal after some time.

One more option that you have is to use a P2P trading platform and keep your assets in a decentralized wallet, but to be honest, I don't consider decentralized wallets to be completely safe because they are vulnerable to exploits, hacks, malware, etc., since the wallet is connected to the internet all the time.

[GeorgeJohn]

The current Bitcoin fees wouldn't have mattered to me because I am not selling, but the fees do matter because I DCA, and I don't want to leave my coins in the centralized exchange. This month, I have spent roughly $5 to $10 in transaction fees when I DCA every week. It may seem small, but in my country, it's enough to cover my feeding expenses for a month cumulatively.

I discussed this issue with my friend, and he suggested I use an exchange that utilizes the Lightning Network. According to him, this would help me get off with no fees any day. While I'm considering this alternative, another option is to wait for a month or two, then use the amount we kept for weekly DCA, hold it for a month or two, and lump sum. This way, i would incur just a one time fee. What are your thoughts on this? I feel like I may use the money kept for DCA for other expenses.

What causes the high fee of bitcoin transaction is the mempol and when the transaction is congested its when we are charged to pay a higher fee, it will be nice or encouraging to use all this exchange wallet to accept your bitcoin for easy exchange, because their is no way you can escape the high fee if you are making of none custodial wallet, like now when you are accumulating your bitcoin you may likely use none custodial wallet until the mempol of bitcoin transaction will calm down, so I think its advisable to use all this centralized wallet currently to accept your bitcoin for easier exchange.

[carlfebz2]

The current Bitcoin fees wouldn't have mattered to me because I am not selling, but the fees do matter because I DCA, and I don't want to leave my coins in the centralized exchange. This month, I have spent roughly $5 to $10 in transaction fees when I DCA every week. It may seem small, but in my country, it's enough to cover my feeding expenses for a month cumulatively.

I discussed this issue with my friend, and he suggested I use an exchange that utilizes the Lightning Network. According to him, this would help me get off with no fees any day. While I'm considering this alternative, another option is to wait for a month or two, then use the amount we kept for weekly DCA, hold it for a month or two, and lump sum. This way, i would incur just a one time fee. What are your thoughts on this? I feel like I may use the money kept for DCA for other expenses.

Well, the high fees are a concern for those who make frequent transactions, that's true. However, in your case, though I'm also not a fan of keeping a lot of funds at exchanges, I believe that's the only option you have for now. As suggested by others as well, maybe make withdrawals only after a month or so instead of doing it on a weekly basis to reduce the amount you will have to pay as fees, and who knows? The fees might become normal after some time.

One more option that you have is to use a P2P trading platform and keep your assets in a decentralized wallet, but to be honest, I don't consider decentralized wallets to be completely safe because they are vulnerable to exploits, hacks, malware, etc., since the wallet is connected to the internet all the time.

There's no such thing about 100% safe but if we do try out to compared on making use of a non-custodial wallet into a custodial one then we cant really be able to deny that nothing beats out if you do have that full control of your coins or assets into  your non custodial wallet on which you do really possess the keys and having that control unlike when you are really that storing those coins into an exchange.
Somewhat its true that dealing up with exchange does have also that kind of convenience on which it would really be just that most people do prefer because it is really that fast and convenient but
in exchange then it would really be compromising that kind of security.

Going back into the situation of high fees, then it would really be just that normal that people would really be finding alternatives just to avoid on paying up those huge fees.
They would be neither on halting up on making some transactions or they would really be that willing on spending up some fees just to make those transactions pushed through.
We do have share on the same struggle specially into those people who do have less money but for those rich out there then these moments wont really
be  that much of an issue.