Bitcoin Investing - DCA

[Silberman]

Hi All,

I currently have between £300 - £400 left over each week from my salary in which i have been transferring in to a savings account with 4.75% interest, but recently i began to invest small weekly amounts into the popular alt coins (£50-£100) as i'm a fairly risk averse person by nature. I have recently sold those coins in my portfolio at break even or at best with small gains and re-invested the money into BTC & ETH.

My plan moving forward is to use £150 of the money available to me to purchase BTC & ETH every week with the long game in mind, but was looking for advice really on how i should split the money % wise between the two assets? 50 / 50?

i currently hold 0.096* ETH & 0.0057* BTC and have been seriously considering investing more but not sure if the amounts i have available make this worth while?

There are many approaches that you could take in order to do this, the most straightforward one is simply to add the market cap of bitcoin and ethereum and then divide the individual market cap of each coin over that result, if you do this you will obtain a 75% distribution of your capital going towards bitcoin and a 25% going towards ethereum, which in my mind looks fine, however if you want to reduce your risk even further you could increase the amount of money that goes towards bitcoin, but if you want the opposite then you should increase the money you invest in ethereum instead.

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[Bartello]

Hi All,

I currently have between £300 - £400 left over each week from my salary in which i have been transferring in to a savings account with 4.75% interest, but recently i began to invest small weekly amounts into the popular alt coins (£50-£100) as i'm a fairly risk averse person by nature. I have recently sold those coins in my portfolio at break even or at best with small gains and re-invested the money into BTC & ETH.

My plan moving forward is to use £150 of the money available to me to purchase BTC & ETH every week with the long game in mind, but was looking for advice really on how i should split the money % wise between the two assets? 50 / 50?

i currently hold 0.096* ETH & 0.0057* BTC and have been seriously considering investing more but not sure if the amounts i have available make this worth while?

There are many approaches that you could take in order to do this, the most straightforward one is simply to add the market cap of bitcoin and ethereum and then divide the individual market cap of each coin over that result, if you do this you will obtain a 75% distribution of your capital going towards bitcoin and a 25% going towards ethereum, which in my mind looks fine, however if you want to reduce your risk even further you could increase the amount of money that goes towards bitcoin, but if you want the opposite then you should increase the money you invest in ethereum instead.

Thanks! i've been reading the replies and considering different options and was leaning towards investing the bulk of my spare cash in BTC with a little in ETH and the % you posted would be something i was considering actually. I suspect i'll be spending lots of time evaluating and re-evalutating the options

[Assface16678]

Hi All,

I currently have between £300 - £400 left over each week from my salary in which i have been transferring in to a savings account with 4.75% interest, but recently i began to invest small weekly amounts into the popular alt coins (£50-£100) as i'm a fairly risk averse person by nature. I have recently sold those coins in my portfolio at break even or at best with small gains and re-invested the money into BTC & ETH.

My plan moving forward is to use £150 of the money available to me to purchase BTC & ETH every week with the long game in mind, but was looking for advice really on how i should split the money % wise between the two assets? 50 / 50?

i currently hold 0.096* ETH & 0.0057* BTC and have been seriously considering investing more but not sure if the amounts i have available make this worth while?

Well, what you are doing is not bad, and your decision is right about switching to BTC and ETH rather than altcoins, as altcoins tend to be more risky, so it is not advisable to invest all you have in altcoins only. Also, yes, you could buy a fraction of coins in BTC and ETH, but remember to not just bring them. Think about the position where you are buying. Let's say that this week you brought bitcoin at a price of $41k, then the next week you brought it again, but at a different price. You can't just buy and sell without thinking about whether this position is good to buy a certain coin; you still need to analyse first before that. Anyway, the partition should be 70/30, 70% for bitcoin and 30% for ETH. Well I like bitcoin more so its better to spend a large portion of your capital to bitcoin.

[Queentoshi]

My plan moving forward is to use £150 of the money available to me to purchase BTC & ETH every week with the long game in mind, but was looking for advice really on how i should split the money % wise between the two assets? 50 / 50?

You are investing good money into cryptocurrency; you started wrongly by investing in Altcoins, but corrected things by wanting to invest in bitcoins. There are investors who are investing wrongly by investing in Altcoins and they think they are doing the right thing. BTC and ETH do not have equal status in cryptocurrency. Bitcoins have more importance amongst all other cryptocurrency, and more should be invested in it because it is more important. You can invest in the percent of 70 for bitcoins and 30 for ETH. Bitcoin price is high now and is predicted to increase still.

[aysg76]

Thanks for the reply - in your opinion would it be beneficial for me to split between the two coins or just invest 100% of the spare funds into BTC? i'm a newbie obviously but from what i have read so far it can't be too bad of an idea?

It is dependent on you as you will get lot of investment advice but for bitcoin investment your patience matters like if you have plans to hold for long term then go for it instead of wasting time on shitcoins that are not going to give you any positive growth in the future.But also keep in mind you are investing your savings in that so risk of losing money is always there and if you can afford it then you are having good approach so bitcoin is the best option according to me as well.

[decodx]

<...>

Gradually upping your investment in both bitcoin and ether over time is a good idea.  There is no guarantee they'll keep going up, but they're less dicey than other cryptos.  If risk freaks you out, just put a smaller percentage in ETH.  Me, I'd go 80% BTC, or maybe even more.

[Bartello]

My plan moving forward is to use £150 of the money available to me to purchase BTC & ETH every week with the long game in mind, but was looking for advice really on how i should split the money % wise between the two assets? 50 / 50?

You are investing good money into cryptocurrency; you started wrongly by investing in Altcoins, but corrected things by wanting to invest in bitcoins. There are investors who are investing wrongly by investing in Altcoins and they think they are doing the right thing. BTC and ETH do not have equal status in cryptocurrency. Bitcoins have more importance amongst all other cryptocurrency, and more should be invested in it because it is more important. You can invest in the percent of 70 for bitcoins and 30 for ETH. Bitcoin price is high now and is predicted to increase still.

I started off with what i thought were solid choices in XRP/XLM/ADA and a few others which then turned into ETH, and then BTC..

I still have lots to learn evidently, however having read through the thread a few times i'm seriously considering just investing 100% into BTC weekly, but i'm in two minds if to sell the ETH now or wait a short while - but i imagine waiting won't return anything worthwhile due to the low holding i currently have? my holding is 0.09642595 (£170.52 - unrealised return = -£0.97) so selling now i'd lose ~£2 or thereabouts on my origional investment.

On another note - i invest via my banking app and it appears the fee is around £1 when i purchased £100 of BTC a couple of days ago.. is 1% high? standard?

[btc78]

Hi All,

i currently hold 0.096* ETH & 0.0057* BTC and have been seriously considering investing more but not sure if the amounts i have available make this worth while?

i’ll assume you’re here for the long term it is advisable to have most of your portfolio invested in bitcoin

90% bitcoin and 10% eth for me is a good ratio

no matter the amount, if you want to invest then go (unless the transaction fee is higher than what you’re investing) if i had the money too even in little amounts i would have put it in bitcoin

[mirakal]

I suggest you focus on bitcoin and invest all in. That is, if you want to maximize your profits from long term hodling. Bitcoin has more potentials to succed compared to Ethereum, so invest in bitcoin first and when you're currently making decent profits already, then diversifying your bitcoin with ethereum is a perfect choice.

DCA is the key for long term success. Although you could also consider doing DCA with ethereum but knowing ethereum is only good for short term duration, then for now just stick to bitcoin.

[macson]

Hi All,

I currently have between £300 - £400 left over each week from my salary in which i have been transferring in to a savings account with 4.75% interest, but recently i began to invest small weekly amounts into the popular alt coins (£50-£100) as i'm a fairly risk averse person by nature. I have recently sold those coins in my portfolio at break even or at best with small gains and re-invested the money into BTC & ETH.

My plan moving forward is to use £150 of the money available to me to purchase BTC & ETH every week with the long game in mind, but was looking for advice really on how i should split the money % wise between the two assets? 50 / 50?

i currently hold 0.096* ETH & 0.0057* BTC and have been seriously considering investing more but not sure if the amounts i have available make this worth while?

Overall, using the DCA method for long-term investment is a very wise thing and you have started doing that, but my question is why are you also investing in ethereum, you should invest only in bitcoin, because the price of bitcoin is the one that has the best speed of increasing continuously.  but you have to remember to always keep bitcoin or whatever assets you have in your personal wallet, and never save them for the long term on an exchange because it is very risky, be your own bank. 

[Bartello]

Hi All,

I currently have between £300 - £400 left over each week from my salary in which i have been transferring in to a savings account with 4.75% interest, but recently i began to invest small weekly amounts into the popular alt coins (£50-£100) as i'm a fairly risk averse person by nature. I have recently sold those coins in my portfolio at break even or at best with small gains and re-invested the money into BTC & ETH.

My plan moving forward is to use £150 of the money available to me to purchase BTC & ETH every week with the long game in mind, but was looking for advice really on how i should split the money % wise between the two assets? 50 / 50?

i currently hold 0.096* ETH & 0.0057* BTC and have been seriously considering investing more but not sure if the amounts i have available make this worth while?

Overall, using the DCA method for long-term investment is a very wise thing and you have started doing that, but my question is why are you also investing in ethereum, you should invest only in bitcoin, because the price of bitcoin is the one that has the best speed of increasing continuously.  but you have to remember to always keep bitcoin or whatever assets you have in your personal wallet, and never save them for the long term on an exchange because it is very risky, be your own bank.  

I'm very new to all this - i currently use my bank to purchase BTC and also have a Kraken account.. what is a wallet? i have metamask?

£100 of BTC comparison  

my bank = 0.00279151
kraken = 0.00285473

Seems the convenience of having my finances in one place isn't beneficial for me over the long term!

[pinggoki]

I say that it would do you better to just invest in bitcoin only, maximize the potential profit by buying more right now when the price is just starting to run hot with the anticipation of the bull run and with the halving still in the near future, best believe that you're going to be better off investing in bitcoin only. I'm not saying it's bad that you're investing in Ethereum but think about it, there's going to be an altcoin season after a bitcoin bull run anyway, it's wise to go for taking a profit at bitcoin first and then trying to get in Ethereum after.

[Bartello]

I suggest you focus on bitcoin and invest all in. That is, if you want to maximize your profits from long term hodling. Bitcoin has more potentials to succed compared to Ethereum, so invest in bitcoin first and when you're currently making decent profits already, then diversifying your bitcoin with ethereum is a perfect choice.

DCA is the key for long term success. Although you could also consider doing DCA with ethereum but knowing ethereum is only good for short term duration, then for now just stick to bitcoin.

My long term plan has shifted towards BTC, and i get paid every Thursday @ 17.00 so will begin my new path today by moving my assets over to Kraken. I have been researching since posting this thread and realised i'm paying high fees to begin with which over time will cripple my gains and have just downloaded the edge wallet after reading another post here about exhanges and wallets. I really appreciate everyones time so far.

I just need to make changes to my budget spreadsheet - i find things easier to understand when they're infront of me in black and white + seeing my networth grow over time keeps me diciplined and motivated to wake up daily at 3am to make it all possible.

[Bartello]

I say that it would do you better to just invest in bitcoin only, maximize the potential profit by buying more right now when the price is just starting to run hot with the anticipation of the bull run and with the halving still in the near future, best believe that you're going to be better off investing in bitcoin only. I'm not saying it's bad that you're investing in Ethereum but think about it, there's going to be an altcoin season after a bitcoin bull run anyway, it's wise to go for taking a profit at bitcoin first and then trying to get in Ethereum after.

Understood - i think part of my strat was to purchase ETH for the anticipated "alt season" and purchasing BTC was sort of an afterthought / deviation from my plan, but having read through this thread and many others i have since decided to go the 100% investing in to BTC. I've also discovered my laziness and inexperience has been costing me £ with fees so plan to move to another platform for purchasing.

[Orpichukwu]

If Eth and BTC are what you are only considering investing in, then I think you are one step closer to the right direction, because a lot of altcoins out there are not worth our penny to be invested in, and looking at the use case of Eth and how large its smart contract is, we can both believe that it's worth our investment. On the other hand, you also need to hold some BTC, and now you don't know how to share the money to get the best out of these two currencies on your table.
 
If I'm to be in your position, the best thing that I can do is look at the currency trend and price increase of BTC, with halving being around the corner and BTC ETF close to being approved. I will spend up to 60–70% of those holdings into BTC, and the rest of the money can be used to buy ETH. Let it not be as I miss out completely on Eth. Based on how I have watched the market these past few days, the price of Eth has been responding both negatively and positively in proportion to bitcoin price movement.

[Bartello]

If Eth and BTC are what you are only considering investing in, then I think you are one step closer to the right direction, because a lot of altcoins out there are not worth our penny to be invested in, and looking at the use case of Eth and how large its smart contract is, we can both believe that it's worth our investment. On the other hand, you also need to hold some BTC, and now you don't know how to share the money to get the best out of these two currencies on your table.
 
If I'm to be in your position, the best thing that I can do is look at the currency trend and price increase of BTC, with halving being around the corner and BTC ETF close to being approved. I will spend up to 60–70% of those holdings into BTC, and the rest of the money can be used to buy ETH. Let it not be as I miss out completely on Eth. Based on how I have watched the market these past few days, the price of Eth has been responding both negatively and positively in proportion to bitcoin price movement.

That was pretty much my thought process behind splitting some of my investment into ETH to be honest, but i'm really in two minds what to do and have spent a fair bit of time mulling over the decision today.

I have looked at other options in terms of a platform to actually purchase both as my bank charges around 5% i believe? so i now have Etoro + the wallet & Kraken & Trust Wallet but my bank isn't natively support by Kraken so i'd have to do manual transfers which i can't figure out at the moment as the visa fees equal to around 5% too  so in light of this i think i'm going to choose Etoro as my platform and use their wallet.

[tjtonmoy]

Feel free to do whatever you want to do. It's your asset and you have every right to spend it the way you like it. As for my personal preference, I don't like alt coins. When I am looking for a long-term investment plan, I will never guess on something that is centralized. Those things that are centralized good face many kinds of difficulties if there's any problem with it. Most likely government interference.

The Bitcoin halving is coming near and that will push Bitcoin more and there's a potential bull market coming. As far as I know, it will push Bitcoin market first and then following this the other coins will pump as well. But Bitcoin comes first. So I will most likely put all my focus into Bitcoin investment and after I make profit out of it, I will use that profit amount to invest into other coins so that I can play it safe.

This is my personal plan and I am not advising you to do the same. And about the DCA. Keep doing it and you will see the benefit in the long run. Don't give up in the midway.

[Bartello]

UPDATE -

Thanks for all the replies so far guy's i really do appreciate your time and i've learned a fair bit already. Earlier today i sold my ETH and will sell my BTC and move over to Etoro later when i get paid and will purchase £500 BTC to get me on my way. I am currently working on my budget sheet to increase the money invested into coins vs savings accounts.

Is Etoro a solid choice for someone such as me in the UK? correct me if i'm wrong but they charge 1% fees? i was going to use Kraken but until i can figure out how to get my funds on to the platform i can't incur those fees for visa payments - purchasing £170 BTC incurs a £10 fee 

[MFahad]

I say that it would do you better to just invest in bitcoin only, maximize the potential profit by buying more right now when the price is just starting to run hot with the anticipation of the bull run and with the halving still in the near future, best believe that you're going to be better off investing in bitcoin only. I'm not saying it's bad that you're investing in Ethereum but think about it, there's going to be an altcoin season after a bitcoin bull run anyway, it's wise to go for taking a profit at bitcoin first and then trying to get in Ethereum after.

Bitcoin can be beneficial if we put all amount in it because we will not be in trouble that by minimising its price we will see loss but we have a strong believe that whenever price downs then upward movement happen more stronger than previous. Choosing only bitcoin is free of risk but there are also some alternatives altcoin which can develop your capital well.

Sometimes Bitcoin price remains in the same position but altcoins develop more and more so if someone diversify investment then taking profit from any coin will be better for him while leave the remaining coin for longer term so in my opinion choosing different coins will be better.

[Bartello]

I say that it would do you better to just invest in bitcoin only, maximize the potential profit by buying more right now when the price is just starting to run hot with the anticipation of the bull run and with the halving still in the near future, best believe that you're going to be better off investing in bitcoin only. I'm not saying it's bad that you're investing in Ethereum but think about it, there's going to be an altcoin season after a bitcoin bull run anyway, it's wise to go for taking a profit at bitcoin first and then trying to get in Ethereum after.

Bitcoin can be beneficial if we put all amount in it because we will not be in trouble that by minimising its price we will see loss but we have a strong believe that whenever price downs then upward movement happen more stronger than previous. Choosing only bitcoin is free of risk but there are also some alternatives altcoin which can develop your capital well.

Sometimes Bitcoin price remains in the same position but altcoins develop more and more so if someone diversify investment then taking profit from any coin will be better for him while leave the remaining coin for longer term so in my opinion choosing different coins will be better.

Thanks for your reply - I can see the merits of diversification, but for a beginner such as myself I struggled to choose alts that added value / strength to my portfolio - I guess this was following the hype etc which damaged my profits, so I've decided that my strategy for the long term is to invest in BTC by making weekly purchases, but maybe somewhere down the line I may choose to reduce the % of BTC and purchase some alts - I've read that SOL and ETH could be wise choices?

For now, I will stick to using 70% of the money I have left over from my salary to purchase BTC and put 30% into bank savings to use if something unforeseen arises.