DCA: the power of little beginning

[The Cryptovator]

DCA is one of the most popular accumulation strategies right now in the crypto world. Those who are afraid to accumulate Bitcoin at once can easily accumulate through the DCA strategy. But for DCA investors, they should hold for longer to get the appropriate result and should have enough patience as well. We can invest from our monthly savings through the DCA strategy; we just can't liquidate whenever we want with profits. To make good profits, you must intend to hold on for a long time. 

[ObscurePen]

There have been so many new threads made about this DCA method. Everyone is making such a big deal about a very simple rule of investing. Everyone should really just search up if what they are posting about has been posted before. These articles I got from simply searching up "DCA bitcointalk" on Google.

A Complete Guide for Cryptocurrency Newbies "The Best Way Of DCA"

Lump sum Vs DCA" for Bitcoin Accumulation

DCA method

DCA is the most important in investing.

Have a clear understanding of what DCA means

What do you think? Lump sum vs DCA best accumulation strategy.

DCA (Dollar Cost Averaging) method is a simple way to invest in Bitcoin

Bitcoin Investing - DCA

DCA'ing isnt a bad strategy

How DCA Could Have Prevented Your from Losing More

Benefits of following DCA- Dollar Cost Averaging

High transaction fees affects those who DCA

Campaign a cheap DCA method.

The Importance of Consolidation, Especially with Dollar-Cost Averaging (DCA)

Which amount of money is good for me to spend on DCA?

[Fuso.hp]

DCA investment method is very effective and very easy investment method for investors. Most investors have managed to hold their investments for a long time by investing in the DCA investment method. Investing was very difficult for investors until they did not know about DCA investment method. But the DCA investment method has made investing much easier. Now any professional person can invest in this investment strategy and since he can invest as he wants he can hold his investment for a long time due to which he gets a good profit at the end of the specified period. Now most of the investors are investing in this investment strategy and they are getting success.

[Darker45]

DCA, of course, is a good buying strategy. It makes you forget about timing the market. It is, after all, a difficult thing to be accurate about.

However, we should be realistic with DCA as well. DCA could have a different face, an ugly one more or less. Buying little amounts every once in a short while also means you're accumulating UTXOs. Buying $10 or $20 worth of Bitcoin weekly or bi-weekly could mean you'll have 40 UTXOs or 20 UTXOs, respectively, in just 10 months. That's going to be a heavy transaction once you spend it. You need to monitor the mempool and consolidate them once the transaction fees are low.

[Smack That Ace]

DCA, of course, is a good buying strategy. It makes you forget about timing the market. It is, after all, a difficult thing to be accurate about.

However, we should be realistic with DCA as well. DCA could have a different face, an ugly one more or less. Buying little amounts every once in a short while also means you're accumulating UTXOs. Buying $10 or $20 worth of Bitcoin weekly or bi-weekly could mean you'll have 40 UTXOs or 20 UTXOs, respectively, in just 10 months. That's going to be a heavy transaction once you spend it. You need to monitor the mempool and consolidate them once the transaction fees are low.

I think there won't be too many people holding bitcoin in non-custodial wallets, most will hold it on the exchange and they will DCA every time they have money. Everyone knows about bitcoin's transaction fees, and especially retail investors like us care about that more than anything else.

It is very difficult for us to accumulate 50-100 USD/week/month while having to spend 5-7 USD per transaction, not to mention those who only save 10-20 USD per month, will they accept that fee? That's obviously not realistic. I think no one will accept that even though everyone knows the risks of leaving bitcoin on centralized exchanges.

[Hewlet]

Before now, I have underrated the DCA method just because I thought it was only meant for bitcoin. It was when I read a documentary about DCA as the most effective and stressed free way of being wealthy. I have had little/no respect for DCA but it is the most peaceable way to invest in bitcoin.

DCA is not necessary only for low income earners. It is also used by the wealthy and other experienced traders or investors when the market is not so certain.

true, the DCA method isn't just applicable to Bitcoin investments only, in real life, if one applies the method it would go a long  in improving on how we go about gathering our asset.

It's another way of climbing the ladder to the top following a step at a time such that after achieving a particular set goal will go on do achieving another and then another and within some shortest possible time we must have achieved a bunch of unimaginable goals. I've equally been following up the JJg thread on buying the DIP and HODling and one of the best strategy that has proven to be most effective both for beginners that aren't all that financially strong and old timers that are not ready to buy in bilk is the use of the DCA method.

[Silberman]

DCA, of course, is a good buying strategy. It makes you forget about timing the market. It is, after all, a difficult thing to be accurate about.

However, we should be realistic with DCA as well. DCA could have a different face, an ugly one more or less. Buying little amounts every once in a short while also means you're accumulating UTXOs. Buying $10 or $20 worth of Bitcoin weekly or bi-weekly could mean you'll have 40 UTXOs or 20 UTXOs, respectively, in just 10 months. That's going to be a heavy transaction once you spend it. You need to monitor the mempool and consolidate them once the transaction fees are low.

I think there won't be too many people holding bitcoin in non-custodial wallets, most will hold it on the exchange and they will DCA every time they have money. Everyone knows about bitcoin's transaction fees, and especially retail investors like us care about that more than anything else.

It is very difficult for us to accumulate 50-100 USD/week/month while having to spend 5-7 USD per transaction, not to mention those who only save 10-20 USD per month, will they accept that fee? That's obviously not realistic. I think no one will accept that even though everyone knows the risks of leaving bitcoin on centralized exchanges.

That is a concern without a doubt for small investors, but it is one that can be resolved by simply accumulating several bitcoin purchases and waiting for the fees to be low whenever you want to send your coins out of an exchange, this way you can reduce the fees you need to pay, and at the same time in the case the exchange you were using collapsed or scammed everyone, you would only lose a small portion of your money and not all of your holdings.

[Kelward]

Bitcoin is one of the best investments that anybody can have, it doesn't matter your class in the society, so far you're making money no matter how small, you can be an investor in it. To go into other forms of investments can require a huge start up investment capital, but the DCA method makes it very easy for anybody to start Bitcoin investment journey, and the beauty of it is that you're not in competition with anybody, you'll just be accumulating at your own pace. It's true that Bitcoin DCA method is not specifically for low income earners, even rich people that wants to put the investment in their weekly or monthly budget can also adopt the method.

[moneystery]

dca is a method that is quite helpful for investors who want to buy bitcoin in smaller and more affordable amounts. investors who try this method can adjust their budget and buy bitcoin continuously and consistently until their goals are achieved. even though with this method investors cannot get maximum profits, if they hold bitcoin for a longer period of time they can get profits from this investment. the point is how investors can consistently buy bitcoin and store it in their wallet and sell at the right time, so that they can get maximum profit.

[NewRanger]

Bitcoin is one of the best investments that anybody can have, it doesn't matter your class in the society, so far you're making money no matter how small, you can be an investor in it. To go into other forms of investments can require a huge start up investment capital, but the DCA method makes it very easy for anybody to start Bitcoin investment journey, and the beauty of it is that you're not in competition with anybody, you'll just be accumulating at your own pace. It's true that Bitcoin DCA method is not specifically for low income earners, even rich people that wants to put the investment in their weekly or monthly budget can also adopt the method.

I think anyone must really understand which part we will take so that in the future we get maximum returns and minimum risks, whether we are comfortable with the DCA technique or maybe there are other superior ones.

What is certain is that if we invest, we must invest without pressure and fear, otherwise we will pay attention to the prices and charts almost every day and one more thing is the main point, good news as a trigger to increase demand for bitcoin. If there is good news I am sure investors will come and buy it without advice from anyone.

[AVE5]

I am new into this bitcoin sphere and I must say this that I've interests in learning more about bitcoin especially on the accumulating strategy so that I could always stand at the safer side. I usually do not like reading lengthy posts by at the tag of DCA in this thread, I got submitted to ready all through if truly I needed to impact and improve on my bitcoin investment race. You made the DCA accumulation analysis more understanding to me and I feel like I was a suck all these while due to how in haste I'm usually been in purchasing my bitcoin.
I thought as much that bitcoin investment is similar to the stock investments which you need to purchase and stock more than enough once and for all with a very high capital to start with. Because in stock business you considers time going to the market purchase your goods and restock, considers customers impatient if you don't make their demands available and also as the Transportations. After considering all these you'd have to purchase and stocked more than enough to safe time, transportation fees and meeting up the customers needs at any given time. And during inflations the rate of goods and services are usually high which the higher you buy is the higher you sell too to make your profits.
I was really blind all those while purchasing bitcoin with a whole budget of fund for it without undermining the markete condition and at most, I've always bought my bitcoin when the price was high which I think I was going to sell on a higher price too.
Indeed life is a learning process. So far so good applying the DCA method is the best and safest way for accumulating bitcoin.

[Bloodseekers]

dca is a method that is quite helpful for investors who want to buy bitcoin in smaller and more affordable amounts. investors who try this method can adjust their budget and buy bitcoin continuously and consistently until their goals are achieved. even though with this method investors cannot get maximum profits, if they hold bitcoin for a longer period of time they can get profits from this investment. the point is how investors can consistently buy bitcoin and store it in their wallet and sell at the right time, so that they can get maximum profit.

Everyone who has the desire to invest in Bitcoin can certainly use this strategy if they have not been able to collect a large amount and we can set a time according to our wishes to buy it according to the abilities we have and by doing it regularly we will be able to get a profit from the investment what we do is and we also don't be easily influenced by market conditions which experience a decline after we buy it, in fact we can take advantage of this to be able to collect more than usual.

You are right, when investors can carry out this strategy well of course they will be able to get big profits from what they have invested some of the savings they have.

[MFahad]

A lot of investors simply ignore this method because they think they won't be able to get any profit if they buy in small amounts instead of thinking about the long-term outcome of this method which can give someone a great sum of Bitcoin if they keep buying with whatever amount they have, as they say, something is better than nothing.
Such people would try to accumulate and save money in fiat so that they can buy in lumpsum once they see a reasonable price, but this isn't an effective way because you would barely be able to keep that money without spending it if there is a need or an emergency. So it's better if someone invests the money in portions instead of waiting for a specific time.

[HideYourKeys]

great post mate, it is true that sometimes it is better to make the biggest investment possible, the sooner the better, but DCA would be the 2nd best option imho (sometimes there is a 2nd best  )

[someone703]

Even big-time crypto holders know the value of DCA. It's like a financial safety net, catching you if the price dips after you buy. By spreading out your purchases over time, you reduce the risk of buying at an all-time high and maximize the potential to snag coins at a good price. DCA isn't a magic money-making machine. It doesn't guarantee profits, but it can help smooth out the volatility that crypto is famous for.

But wait, can't holders still lose money? While holding means you avoid the trading fees associated with frequent buying and selling, the value of your assets can still fluctuate. If the price drops significantly, the value of your holdings will decrease. However, unlike traders who might realize those losses by selling their coins, holders simply experience an unrealized loss on paper. The key is to believe in the long-term potential of your investment and hold on through the ups and downs.

[Darker45]

DCA, of course, is a good buying strategy. It makes you forget about timing the market. It is, after all, a difficult thing to be accurate about.

However, we should be realistic with DCA as well. DCA could have a different face, an ugly one more or less. Buying little amounts every once in a short while also means you're accumulating UTXOs. Buying $10 or $20 worth of Bitcoin weekly or bi-weekly could mean you'll have 40 UTXOs or 20 UTXOs, respectively, in just 10 months. That's going to be a heavy transaction once you spend it. You need to monitor the mempool and consolidate them once the transaction fees are low.

I think there won't be too many people holding bitcoin in non-custodial wallets, most will hold it on the exchange and they will DCA every time they have money. Everyone knows about bitcoin's transaction fees, and especially retail investors like us care about that more than anything else.

It is very difficult for us to accumulate 50-100 USD/week/month while having to spend 5-7 USD per transaction, not to mention those who only save 10-20 USD per month, will they accept that fee? That's obviously not realistic. I think no one will accept that even though everyone knows the risks of leaving bitcoin on centralized exchanges.

I'm not sure what percentage of those who do the DCA method keep their Bitcoin in non-custodial wallets and what percentage keep theirs on centralized exchanges. I'm not even sure if those who are advising others to DCA are doing it themselves. What I know is that accumulating Bitcoin little by little on centralized exchanges has additional risks.

It is possible that some of those who DCA in their non-custodial wallets don't care about the fees for now as they're hodling it. They intend to keep it long-term. They're probably more focused in growing their Bitcoin portfolio. Later on, the fees might surprise them.

[Alana Arden]

DCA is one such method; It has been termed as the most convenient way to gradually accumulate bitcoins without worrying about bitcoin price movements. DCA is a very simple and effective investment method for Bitcoin investors, and it is currently one of the most popular savings strategies in the crypto sector. However, many investors ignore this method because using this strategy means you have very little chance of making really big profits. As a result, they are patient and don't care about long-term results. But we also have to remember that it is better to accumulate a little than nothing because we have to work our way up from the bottom. If we don't have enough money to invest in Bitcoin, we can start investing with DCA method with small amount of money. This is a good choice or plan to collect bitcoins, as it helps you get a decent amount of bitcoins based on the investment amount.

[BALIK]

Such people would try to accumulate and save money in fiat so that they can buy in lumpsum once they see a reasonable price, but this isn't an effective way because you would barely be able to keep that money without spending it if there is a need or an emergency. So it's better if someone invests the money in portions instead of waiting for a specific time.

Depending on each person's strategy, those with knowledge of technical analysis and market data will choose to buy when BTC reaches their desired price instead of DCA. And not everyone spends all their investment money like you do because no matter what investment method you use, you need to be clear in managing your capital. The amount of money for investment and the amount of savings and daily expenses must be completely separate. If you can't do that, even if you own bitcoins, you'll still sell them if you don't have emergency savings.

[Smack That Ace]

DCA, of course, is a good buying strategy. It makes you forget about timing the market. It is, after all, a difficult thing to be accurate about.

However, we should be realistic with DCA as well. DCA could have a different face, an ugly one more or less. Buying little amounts every once in a short while also means you're accumulating UTXOs. Buying $10 or $20 worth of Bitcoin weekly or bi-weekly could mean you'll have 40 UTXOs or 20 UTXOs, respectively, in just 10 months. That's going to be a heavy transaction once you spend it. You need to monitor the mempool and consolidate them once the transaction fees are low.

I think there won't be too many people holding bitcoin in non-custodial wallets, most will hold it on the exchange and they will DCA every time they have money. Everyone knows about bitcoin's transaction fees, and especially retail investors like us care about that more than anything else.

It is very difficult for us to accumulate 50-100 USD/week/month while having to spend 5-7 USD per transaction, not to mention those who only save 10-20 USD per month, will they accept that fee? That's obviously not realistic. I think no one will accept that even though everyone knows the risks of leaving bitcoin on centralized exchanges.

I'm not sure what percentage of those who do the DCA method keep their Bitcoin in non-custodial wallets and what percentage keep theirs on centralized exchanges. I'm not even sure if those who are advising others to DCA are doing it themselves. What I know is that accumulating Bitcoin little by little on centralized exchanges has additional risks.

It is possible that some of those who DCA in their non-custodial wallets don't care about the fees for now as they're hodling it. They intend to keep it long-term. They're probably more focused in growing their Bitcoin portfolio. Later on, the fees might surprise them.

As I also said, I agree that holding bitcoins on centralized exchanges is very risky but the problem is that bitcoin transaction fees are not trivial for retail investors. So I'm really skeptical of anyone who says they're still DCAing every week and storing bitcoin in a non-custodial wallet. I don't remember exactly who it was, but someone once said that their income was only 30 USD/month and they were still accumulating satoshis every day. So in your opinion, are these people brave enough to spend 5-7 USD per transaction? Sounds too unrealistic, right?
But the solution Silberman mentioned isn't too bad and maybe some people are using it.

[CageMabok]

great post mate, it is true that sometimes it is better to make the biggest investment possible, the sooner the better, but DCA would be the 2nd best option imho (sometimes there is a 2nd best  )

If it is the second best option in terms of investment, of course it is still worthy enough to be used by everyone and can still be relied on under certain conditions. Because this can also be adjusted to the conditions of each person's abilities when they want to invest for the long term without making it more difficult for them to control their life. I still quite like using this option in my investments so far because it is really good and I also consider it my first option in terms of investment.