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Author Topic: DCA is the most important in investing.  (Read 358 times)
AirtelBuzz
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February 20, 2024, 02:48:53 PM
 #41

if you don't use this method you will definitely be in the loser's bracket.
Hey man this idea of yours is not entirely true. As we all know that investing in dollar cost averaging method is a progressive and recommended strategy it does not mean that we will suffer if we do not invest in this method. Dollar Cost Averaging method invests in people who cannot afford to buy large amount of bitcoins at once i.e. low income and middle class people continue to invest in this method. Investing in Dollar Cost Averaging method has made it easy for middle class people to invest as they can buy bitcoins anytime they want with any amount of money as per their requirement be it weekly or monthly.

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February 20, 2024, 03:14:42 PM
 #42

DCA is an important strategic investment pattern but that doesn't make it most important of all the investment strategies to holding bitcoin. I could buy a lump sum amount of bitcoin at ones and hold for very length of years and still make profit like another investor who chose to use DCA strategy. Mostly why people are advice to use DCA is because they can't afforto buy a large fraction or amount of bitcoin at ones due to their income strength and only through DCA could they be able to afford owning a good amount of bitcoin to get profit from it after a long time of holding. In all, work with that strategy that is convenient for you that's what I think is most important to know.

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February 20, 2024, 09:50:19 PM
 #43

Make sense, but you must separate the trading if you are looking forward in investing where the Dollar Cost Averaging (DCA) applies.
What if you keep losing in your trades but the one you hold keeps increasing the value, so more likely you  are making break even?
So stop trading if it always gives losses. During a bearish market, the situation will not be good and there will only be a decline. Try to stay away from markets that are unstable and tend to fall. But when the market starts to fluctuate with a lot of positive news and many investors start to enter, then fast trades can be done quite easily. Just need to adjust when to stop and when to trade. no need to force to gain profits from short-term trades, just hold on.
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February 20, 2024, 09:57:36 PM
 #44

If you are thinking of investing in Bitcoin, then you must first know about DCA. By using the DCA method you will definitely not get hurt in the future, you will rarely lose money, and if you don't use this method you will definitely be in the loser's bracket. So always use DCA in investing and trading it will be best for you, and you will be profitable.

And when you invest it is of course most important that you have some funds otherwise you will not be able to connect to the investment. When you invest, don't invest with all money, but you should invest using DCA buy once to twice a week. If you buy the current state of the Bitcoin market this week at $52,000, it may be dumping the market again, so you need to use DCA.
When you buy some amount of Bitcoin every week using DCA, a good fraction of it will be added to your wallet over time. If you buy Bitcoin this week at $52000 and next week if you buy Bitcoin at $48000 then you can definitely collect some nice fractions here. So you have to invest in this way so that you don't get into losses in the future, that's why you should always invest using DCA.
And you should always plan for long term investment, if you invest for long period you will surely earn good profit. Investing for a short period of time is never very profitable, so you should invest using DCA and HODLBTC it for a long time.
Depends on what you are investing and depends on what projects that you are dealing with because not everything that you've been able to invest could really be having the potential that would rise up in the future.

This is why choosing up the right project would really be the key and this is something you should really be that realizing. You cant really just that make yourself having that careless choosing on what projects your are investing on. If  you are that someone who do want to invest but doesnt stick into those solid projects then you are really that bounding on losing money even if it means that you would be having that DCA.

If you dont like on taking up some risks into those projects then better stick with Bitcoin and some top altcoins in the market on which i would say that it is really the best
choice to make.

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February 20, 2024, 11:21:05 PM
 #45

-snip-
So stop trading if it always gives losses. During a bearish market, the situation will not be good and there will only be a decline. Try to stay away from markets that are unstable and tend to fall. But when the market starts to fluctuate with a lot of positive news and many investors start to enter, then fast trades can be done quite easily. Just need to adjust when to stop and when to trade. no need to force to gain profits from short-term trades, just hold on.
If you are a professional and experienced trader - of course you know how the market works and how price volatility gives you profits. Learning them will take months or even years - but over time, the markets will teach us valuable experience.

An interesting idea about this thread is the accumulation and utilization of DCA strategies. Investors just need to consistently do it without having to hesitate when to entry – what they hope for is a lower average price, that's the advantage of DCA. While a lump sum is also good - it may require extra consideration and must of course be supported by good analysis.

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February 20, 2024, 11:40:07 PM
 #46

Dollar cost average presumes the investor is not especially equipped with the best judgement when to invest or is distracted.   I would say most people self compromise their position by being played by the markets, the low price becomes fear to them and they freeze instead of buying.   Irony is the method of DCA because by blindly entering a trade to buy regardless of news or circumstances, the repeating end of the world scenario however it is occuring this month, your buy turns good in a growth market.  
  
 The one key to investing regularly in any asset is being correct on the macro picture.  Surprisingly Bitcoin is a long term market with fast moves that easily confuse.  I wish I could trade all those fast moves because I'd be a millionaire many times over but DCA is the best return on time employed or effort to trade.  Actively trading & judging the price action can take all day in comparison and in conclusion most are not capable of trading well in a shark pool so are worse off unfortunately.

Quote
During a bearish market, the situation will not be good and there will only be a decline.
I often try to buy into a decline many times but that requires a strong opinion on a recovery being delivered.  The decline being the minor to the major of a greater positive.  The bear is your friend at that point.  Easier said then done of course, ideally sell before the decline but also buying during that dip imo.

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February 21, 2024, 01:46:01 AM
 #47

if you don't use this method you will definitely be in the loser's bracket.

DCA is of course a good approach in Bitcoin investment, but it is quite wrong to say that if you don't use the DCA method, you will definitely be losing. That's not true of course.

No wonder his nickname is 'out of mind', it suits him. What seems to miss is that not everyone is in the same situation, if you are a middle income earner the DCA is the best option for you because of the money you have available, which is a small part of your salary that you manage to save. But if you are a big investor with large lump sums available it can be much more profitable to invest all at once at certain times. What DCA does is to cushion the upside and downside but for someone who invests a good amount at a low point in the market they can earn a lot more than with DCA.

Both are valid Bitcoin investment strategies. Even to an investor with a lot of money, the DCA approach is also valid. To somebody who doesn't have much money, DCA might be a little disadvantageous because he can only buy a small amount every time and that's not wise with regard to fees. He better grow his savings to a significant amount first before buying.

With right timing, lump sum buying would be more profitable than DCA. But DCA itself is a method that responds to the fact that right timing is hard to achieve.
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February 21, 2024, 04:54:02 AM
 #48

Mostly why people are advice to use DCA is because they can't afforto buy a large fraction or amount of bitcoin at ones due to their income strength and only through DCA could they be able to afford owning a good amount of bitcoin to get profit from it after a long time of holding. In all, work with that strategy that is convenient for you that's what I think is most important to know.

This statement isn't entirely correct, if you think why buying through DCA is the best investment strategy is because people don't have money to buy as many Bitcoin as they want at ones then why is Michael J. Saylor the Former CEO of MicroStrategy is investing in Bitcoin through DCA. He has alot of money and can get more money from others to buy all the Bitcoin that they wanted to have but he doesn't do that but instead buys constantly through DCA. He's doing this because it reduces the exposure of his investment to lost due to the volatility that the cryptocurrency market has, DCA will make you to buy many Bitcoin at a lower price than you would have bought them at a higher price. Investors use DCA so they can lower the cost of buying each Bitcoin that they own not because that they don't have money.

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February 21, 2024, 01:07:37 PM
 #49

This statement isn't entirely correct, if you think why buying through DCA is the best investment strategy is because people don't have money to buy as many Bitcoin as they want at ones then why is Michael J. Saylor the Former CEO of MicroStrategy is investing in Bitcoin through DCA. He has alot of money and can get more money from others to buy all the Bitcoin that they wanted to have but he doesn't do that but instead buys constantly through DCA. He's doing this because it reduces the exposure of his investment to lost due to the volatility that the cryptocurrency market has, DCA will make you to buy many Bitcoin at a lower price than you would have bought them at a higher price. Investors use DCA so they can lower the cost of buying each Bitcoin that they own not because that they don't have money.
Investing in the DCA method means investing consistently. Investing consistently means that you buy and hold a certain amount of bitcoins every week or every month to invest in this method. If you have a lot of money, if you buy a lot of bitcoins at once with all your money, you cannot buy more bitcoins later because you have already invested all your money. You may have to wait a few months to buy the next bitcoin because you have a gap of several months to cover this gap. Big investors continue to invest in the DCA method even though they have a lot of money. Maybe that's why Microstrategy CEO Michael J. Saylor has adopted the DCA approach to maintain the consistency of its Bitcoin investments.

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February 22, 2024, 05:17:40 PM
 #50

This statement isn't entirely correct, if you think why buying through DCA is the best investment strategy is because people don't have money to buy as many Bitcoin as they want at ones then why is Michael J. Saylor the Former CEO of MicroStrategy is investing in Bitcoin through DCA. He has alot of money and can get more money from others to buy all the Bitcoin that they wanted to have but he doesn't do that but instead buys constantly through DCA. He's doing this because it reduces the exposure of his investment to lost due to the volatility that the cryptocurrency market has, DCA will make you to buy many Bitcoin at a lower price than you would have bought them at a higher price. Investors use DCA so they can lower the cost of buying each Bitcoin that they own not because that they don't have money.
Investing in the DCA method means investing consistently. Investing consistently means that you buy and hold a certain amount of bitcoins every week or every month to invest in this method. If you have a lot of money, if you buy a lot of bitcoins at once with all your money, you cannot buy more bitcoins later because you have already invested all your money. You may have to wait a few months to buy the next bitcoin because you have a gap of several months to cover this gap. Big investors continue to invest in the DCA method even though they have a lot of money. Maybe that's why Microstrategy CEO Michael J. Saylor has adopted the DCA approach to maintain the consistency of its Bitcoin investments.
DCA doesnt mean to be consistent of course because not all would really be having that unlimited fund that they could put on on their investment, this is why it wont really be that something that needed up to be this way.
If you do have that big fund then it would be an advantage yet your DCA would really be something that will be much giving that good average when it comes from your last EP until to the recent one. If the dip gets deeper
then you could really be able to less up the average price as you do go further but the main question is, does your emotions is just still fine? Are you that dedicated on doing such step?
For sure if the price gets going down then confidence and doubts would really be raising up too.

This is where you would really be able to compare into those people who do comes after for the projects potential for long term and not really just that
going for short term. You would really be able to tell the difference imho.

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February 22, 2024, 05:44:19 PM
 #51

-snip-
DCA doesnt mean to be consistent of course because not all would really be having that unlimited fund that they could put on on their investment, this is why it wont really be that something that needed up to be this way.
If you do have that big fund then it would be an advantage yet your DCA would really be something that will be much giving that good average when it comes from your last EP until to the recent one. If the dip gets deeper
then you could really be able to less up the average price as you do go further but the main question is, does your emotions is just still fine? Are you that dedicated on doing such step?
For sure if the price gets going down then confidence and doubts would really be raising up too.

This is where you would really be able to compare into those people who do comes after for the projects potential for long term and not really just that
going for short term. You would really be able to tell the difference imho.
I agree with most of your explanation about DCA and in fact it is correct.
DCA is certainly good to adopt as an investment strategy, but it is not mandatory for investors to insist on carrying out DCA consistently. Of course it would be good if they could maintain consistency regarding their investments, but if they are not supported by a budget then of course they cannot be as consistent as expected.

DCA practices are not always about those who have large budgets, but the more budget an investor has, the more successful they will be in accumulating assets. $10 per day for 10 days may not have as significant an impact on the amount of assets accumulated compared to $100 with lump sum, but that of course depends on individual interpretation and decisions.

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February 22, 2024, 08:04:12 PM
 #52

I'm a fan of lump sum buying but you need big balls for that, like the ones that guy had who sold his house and lived in a van with his family because that gave him an opportunity to buy bitcoin.
People need to realize that lump sum buy will weigh heavily on them if bitcoin falls straight away, but the deal is not to panic, maybe divide money into 3 or 4 parts and buy with 25% then use the rest to keep buying on the way up, or on the way down. Usually people who DCA do it because it overcomes their defense mechanisms and makes them not focus on the price but on the habit of buying. This is not the most profitable strategy though.

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February 22, 2024, 08:48:02 PM
Merited by darkangel11 (1)
 #53

I'm a fan of lump sum buying but you need big balls for that
I am for both.

Just for the sake of not having any hassle and if I've planned to hold for long term. I'd do lump sum so that I won't be bothered anymore and let the market work on its own.

like the ones that guy had who sold his house and lived in a van with his family because that gave him an opportunity to buy bitcoin.
His name is Didi Taihuttu.

He's got really the balls together with his fam.



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February 22, 2024, 09:29:36 PM
 #54

If you are thinking of investing in Bitcoin, then you must first know about DCA. By using the DCA method you will definitely not get hurt in the future, you will rarely lose money, and if you don't use this method you will definitely be in the loser's bracket. So always use DCA in investing and trading it will be best for you, and you will be profitable.
I agree that what people should think about when investing in Bitcoin is not about DCA, but how they choose a wallet. DCA is the next part of how to get Bitcoin. Why and how to choose a wallet is the first thing to think about before investing because storing it incorrectly will be detrimental.

DCA is a method that is very easy to implement because it is done based on ability.
Having capital, Bitcoin can be obtained and by using the DCA method, people can get Bitcoin at any time. Saving Bitcoin incorrectly can be regretted forever.
Like the repeated messages I do.

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February 22, 2024, 09:56:46 PM
 #55

Mostly why people are advice to use DCA is because they can't afforto buy a large fraction or amount of bitcoin at ones due to their income strength and only through DCA could they be able to afford owning a good amount of bitcoin to get profit from it after a long time of holding.

I don’t quite agree with this though, DCA isn’t meant for just those that don’t have large amounts to go into the Market but it is a strategy used mostly for volatile market which do not have a certain price actions but a fluctuating one. As such with averages taken by DCA method you can simply minimize loss/risk and also maximize the profits. Example is considering you bought at a particular time say $20k price tag which you might predict to be Lowest but some who does DCA might even catch the price at a lesser price than you. There are many people who even have lots of money to invest at once but go in little by little through DCA to able get a better average. Example is Microstrategy buying at different prices. DCA can be hourly, weeekly, monthly and also yearly depending on your strategy

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February 23, 2024, 03:01:02 AM
 #56

DCA is an important strategic investment pattern but that doesn't make it most important of all the investment strategies to holding bitcoin. I could buy a lump sum amount of bitcoin at ones and hold for very length of years and still make profit like another investor who chose to use DCA strategy. Mostly why people are advice to use DCA is because they can't afforto buy a large fraction or amount of bitcoin at ones due to their income strength and only through DCA could they be able to afford owning a good amount of bitcoin to get profit from it after a long time of holding. In all, work with that strategy that is convenient for you that's what I think is most important to know.

Either way is a good strategy but just make sure before you make a "lump sum" purchase that you're in a good position to do so, to somehow maximize the profit just like the people who's doing the DCA method. Though regardless of how much you bought your bitcoin at certain point before the bull season/ATH , you'd be profiting as long as you're holding it tight, the longer the better.
Anyway, DCA method is also used for the people who also had enough money to put into bitcoin, but they are quite skeptical about the bottom of every dip and correction. So, in order for you to not miss the bottom, DCA is a great method for it.

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February 23, 2024, 11:54:13 AM
 #57

DCA is an important strategic investment pattern but that doesn't make it most important of all the investment strategies to holding bitcoin. I could buy a lump sum amount of bitcoin at ones and hold for very length of years and still make profit like another investor who chose to use DCA strategy. Mostly why people are advice to use DCA is because they can't afforto buy a large fraction or amount of bitcoin at ones due to their income strength and only through DCA could they be able to afford owning a good amount of bitcoin to get profit from it after a long time of holding. In all, work with that strategy that is convenient for you that's what I think is most important to know.

Either way is a good strategy but just make sure before you make a "lump sum" purchase that you're in a good position to do so, to somehow maximize the profit just like the people who's doing the DCA method. Though regardless of how much you bought your bitcoin at certain point before the bull season/ATH , you'd be profiting as long as you're holding it tight, the longer the better.
Anyway, DCA method is also used for the people who also had enough money to put into bitcoin, but they are quite skeptical about the bottom of every dip and correction. So, in order for you to not miss the bottom, DCA is a great method for it.
Specially if the price is on that extreme bottom or on the time that tons of people or the community is already at extreme fear. This is where or the best time on having that all-in kind or type of positioning on which you
do know that you could be able to make more or accumulate bigger amount or number of coins/tokens on the time you do buy.Just like on what others been saying that when it comes to choices of the project that you would really be investing then it would really be that entirely be depending on you. DCA on project which you do see that it could bring out fortune.

The thing you should only remember is that try your best not having that DCA going upwards.  Cheesy

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February 23, 2024, 07:09:04 PM
 #58

Both are valid Bitcoin investment strategies. Even to an investor with a lot of money, the DCA approach is also valid. To somebody who doesn't have much money, DCA might be a little disadvantageous because he can only buy a small amount every time and that's not wise with regard to fees. He better grow his savings to a significant amount first before buying.

With right timing, lump sum buying would be more profitable than DCA. But DCA itself is a method that responds to the fact that right timing is hard to achieve.
Purchasing all at once or all in requires a fairly thorough analysis and must know where the lowest price will be purchased. If it's just a lump sum purchase, you have to be prepared for a decline that might occur beyond predictions. Profiting more than DCA certainly won't always happen, DCA is more about gradual purchases that take advantage of every price drop and it will accumulate an average of purchases. Sometimes average buying is better than buying all at once.
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February 23, 2024, 07:25:46 PM
 #59

DCA is an important strategic investment pattern but that doesn't make it most important of all the investment strategies to holding bitcoin. I could buy a lump sum amount of bitcoin at ones and hold for very length of years and still make profit like another investor who chose to use DCA strategy. Mostly why people are advice to use DCA is because they can't afforto buy a large fraction or amount of bitcoin at ones due to their income strength and only through DCA could they be able to afford owning a good amount of bitcoin to get profit from it after a long time of holding. In all, work with that strategy that is convenient for you that's what I think is most important to know.
The rate of people using the DCA strategy has made it look as if without DCA someone can't actually HODL Bitcoin but like you said the reason for the use of DCA is because of the lack of funds to buy huge, well let's take Micheal saylor for example, he is a big whale when it comes to Bitcoin investment and I sure know that he buys Bitcoin in huge chunk and keeps it for the bull season to come.

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February 24, 2024, 08:12:26 PM
 #60

It really doesn't matter how you buy, what really matter is if your holding your bitcoin, you can use DCA or lump sum and still not get any profits from bitcoin cause you are scared of holding, historically bitcoin has shown a progession in price almost every year and long term holders are always at more benefits than short term investors.

What I know DCA does is reduce the impact of market volatility on your investment by spreading it out, so instead of investing all at a fixed point, you spread it to several points and if the price fluctuation you would be taking advantage of both the dips and you would know calculate your average amount invested.

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