You will lose more if you DCA without knowledge

[Die_empty]

What I have noticed with my bitcoin holding is that, I have continued to lose more, each time i try to take advantage of the price to profits, in form of DCA approach.

You only lose money when you sell your coin for less than the price you bought. Even if the price has depreciated if you keep hodling it might appreciate in the future. All you need to do it to monitor your investment and sell when you are in profit.

This outcome lead me to make further research about the best way to build profits using DCA and I find out that, is a wrong thing to do as a newbies without adequate knowledge about the volatility of the bitcoin market, and also no matter how sweet the DCA approach have been for experience bitcoin investors, DCA can still be the worst for a newbies,  so I say newbies should stay away from DCA until they have the knowledge of the risk and approach to DCA.

Thank you for reading.

Before engaging in any investment strategy there is a need to do research. But DCA is one of the best Bitcoin Investment strategies that requires less knowledge and skills. But it requires persistence and patience because if you hastily sell your coin, it will lead to loss. You don't need to sell your investment during this bull run, you can extend your investment time to the next bull season if you know you have not made a profit.

[Kelward]

so I say newbies should stay away from DCA until they have the knowledge of the risk and approach to DCA.

Thank you for reading.

Just like every member that has made comment on this thread, I think that you have the wrong meaning of DCA method, because it's the best strategy for newbies without any crypto experience and knowledge, all they need do is just keep accumulating with certain percentage of their incomes at intervals, maybe weekly or monthly. The only time that DCA method might not be too profitable is during the peak of bull run, because price will be at ATH them, but ATH price won't matter to the investors that intends to keep doing their DCA on a longer time, because bear run will come and another bull run will still come and reach a higher ATH.

[Cryptoprincess101]

You sound just like a total newbie that you are and am not sure if you did your research correctly but I am not here to condemn you as you still have a lot to learn in the forum looking at your current rank it is clear you have no much knowledge about Bitcoin investment but what I will tell you is that the DCA is actually the most preferred choice of a newbie because it is what will help you in the accumulating process no matter the price of Bitcoin at that material time, then you can seek comprehensive knowledge while DCA but saying that DCA is not good for a beginner makes you a bit lost but with time you will adapt and learn alot

[Outhue]

You can't lose if you DCA, the Knowledge you need is to DCA instead of investing all money into Bitcoin at once.

Do not invest money you will need soon, have a lot of patience, with Bitcoin, you only lose if you sell your Bitcoin for a lesser price.

A DCA investor is ultimately a winner, all they need after is some patience to hold the asset, the advantage of DCA is that you will have some good buying period and some flat buying period.

Bitcoin price isn't going to be the same as now in the coming week, there will be times you will buy at 68,000 and there might come times when you will buy at 58,000, the difference is your money will grab you better satoshis sometimes than the other times.

[tranthidung]

Do not invest money you will need soon, have a lot of patience, with Bitcoin, you only lose if you sell your Bitcoin for a lesser price.

It is too much.

If a trader or investor buys low, sells high, it brings profit, not loss. You probably wanted to emphasize that a longer time of holding bitcoin, a better chance to get more profit, that is true. To say it is loss, like you said, it's too much and surely not correct.

HODL bitcoins, you can do it! Look at HODL camp map to build up strong hands

See the HOLD chart and make your investment plan for entries and exits (withdrawal strategy).

Are you ready for the Bitcoin bull market? What's your plan? Some ideas for you

• [ANN] JJG Sustainable Bitcoin Withdrawal Strategy
• https://bitcoindata.science/withdrawal-strategy

[tabas]

What I have noticed with my bitcoin holding is that, I have continued to lose more, each time i try to take advantage of the price to profits, in form of DCA approach.

This outcome lead me to make further research about the best way to build profits using DCA and I find out that, is a wrong thing to do as a newbies without adequate knowledge about the volatility of the bitcoin market, and also no matter how sweet the DCA approach have been for experience bitcoin investors, DCA can still be the worst for a newbies,  so I say newbies should stay away from DCA until they have the knowledge of the risk and approach to DCA.

Thank you for reading.

How it can be worst for the newbies when it's one of the best approach that don't force them to buy a whole Bitcoin and allows them to buy at any rate with any amount that's available to them? I don't think you know what you're saying about looking at your profits and you're DCAing. Don't you think that your Bitcoins won't be lessened when you take profits? of course, you're selling some bitcoins as you're saying you DCA in profits so its quantity is also becoming lesser and that's why your projected value in $ is also lesser because you've taken profits. In traditional setup, you've lessened your stock because you've sold them.

[lovesmayfamilis]

He probably wanted to invest and sell after a fairly short time. Talking about regular investments with little opportunity to have extra money does not in any way relate to the concept of whether a person is experienced or not. Yes, you must have strong confidence and strong hands and not cry when the price drops. But comparing experience and poverty is not the same thing.

[Ruttoshi]

so I say newbies should stay away from DCA until they have the knowledge of the risk and approach to DCA.

DCA strategy in accumulating bitcoin does not have any risk if it is done properly. It is the best method that a beginner or low coiner can use to accumulate bitcoin without stress, because he assign a certain amount of money that he can use to buy bitcoin regularly either weekly or monthly. DCA strategy is used to grow your bitcoin investment portfolio bit by bit until you have reached 70% of your bitcoin target.

The only risk in using DCA is if you do not have an emergency funds for back up or your are DCAing over aggressively, that is when it is risky, because when an emergency arises, you will go and sell your bitcoin that you have being accumulating when it is not of your own will. Why I said that DCA is easy is because, those people that are used to saving some certain amount from their income in the bank or somewhere so that they can use it to achieve something great in future will be easy to DCA because they are used to saving. Instead of saving cash in the bank or somewhere just use that money to buy bitcoin regularly.

No knowledge is needed for DCA, only the basic knowledge of bitcoin. Bitcoin investment should be for a long term.

[Questat]

What I have noticed with my bitcoin holding is that, I have continued to lose more, each time i try to take advantage of the price to profits, in form of DCA approach.

There is nothing wrong with the DCA strategy but what went wrong is your timing. If you just buy Bitcoin during price corrections or during the bear season in general, you won't lose any amount but rather make a huge profit when you hold and wait for the bull season. But what I see in you OP, you buy Bitcoin at the pump and sell when it dumps. If that is your practice, you don't need to wonder why it happens to you.

I advise you to recall your buying and selling history and analyze it carefully. For sure you can find where you become wrong.
Because if the DCA strategy is wrong, then we all have suffered losses just like you OP but we're not and so we disagree.

[cryptoWODL]

What I have noticed with my bitcoin holding is that, I have continued to lose more, each time i try to take advantage of the price to profits, in form of DCA approach.

Thank you for reading.

I cannot accept your incoherent argument for investing in the dollar cost averaging method. Dollar Cost Averaging method is an easy and recommended strategy for beginners to invest in this method you can buy bitcoins at any price. If you use DCA when Bitcoin price is high and DCA when Bitcoin price is low, your dollar cost averaging will be the same. If you choose to invest in this method, you need to have the patience to continue it for a long time.

When you used the Dollar Cost Averaging method to invest in Bitcoin, the price of Bitcoin may have been high and when you sold your investment, the price of Bitcoin may have gone down due to which you lost your money there. Investors who invest using the Dollar Cost Averaging method continue to invest and continue to invest until they reach a certain destination. So OP if you also choose to invest in this method then you also keep the mindset of holding it for a long time. In order not to get impatient when the price of Bitcoin falls investing in this method is advised to be patient and hold for a long period of time as the price of Bitcoin will rise again if held for a long time.

[Zaguru12]

What I have noticed with my bitcoin holding is that, I have continued to lose more, each time i try to take advantage of the price to profits, in form of DCA approach.

This outcome lead me to make further research about the best way to build profits using DCA and I find out that, is a wrong thing to do as a newbies without adequate knowledge about the volatility of the bitcoin market, and also no matter how sweet the DCA approach have been for experience bitcoin investors, DCA can still be the worst for a newbies,  so I say newbies should stay away from DCA until they have the knowledge of the risk and approach to DCA.

You didn’t state how you DCA, hope you’re not just buying when the price gets high and even at that you won’t still lose if you do not hold the coin for a very long term. DCA as the name implies gets you an average price which should be lower to your take profit target. Let’s look at it mathematically, if you buy one bitcoin at different prices like at $50k, $56k, $62k $67k and $71k. You He have the average of $61.2k so should you take profit at price higher than this then you would definitely be in profits.

Why you’re on loss now is probably because your average price is still lower than the take profit or the current price of market.

[bitmover]

See the HOLD chart and make your investment plan for entries and exits (withdrawal strategy).

Are you ready for the Bitcoin bull market? What's your plan? Some ideas for you

• [ANN] JJG Sustainable Bitcoin Withdrawal Strategy
• https://bitcoindata.science/withdrawal-strategy

I have been thinking a lot about thosee exit strategies, specially the one designed by JayJuanGee

However, I have been reluctant to sell my btc. I think I still need to accumulate more. This is the best asset around. Cannot be confiscated,  protection against inflation...

I see sp500 very expensive... treasuries looks problematic with all this money printing and debit... bitcoin looks like an amazing opportunity

[Cookdata]

This outcome lead me to make further research about the best way to build profits using DCA and I find out that, is a wrong thing to do as a newbies without adequate knowledge about the volatility of the bitcoin market, and also no matter how sweet the DCA approach have been for experience bitcoin investors, DCA can still be the worst for a newbies,  so I say newbies should stay away from DCA until they have the knowledge of the risk and approach to DCA.

Thank you for reading.

You said a lot and you didn't say anything, you just keep repeating volatility and newbies this and that, you should be specific with the mistake you made that led you to loss. Why would newbie should stay away, you haven't answered that yet when DCA is normal way of buying Bitcoin so that you can take advantage of it's swing prices so that by the time you finished buying, your average will not be loss in case the price fall later.

What I think you must have done is that you probably bought Bitcoin around $72k where you bought most of your dollars and when the price reduce, you didn't have money to buy more to average your buying and you are writing article to discourage other newbie to learn and read when it's pretty simple logic. If you have more money, buy more when the price retouch supports line especially on weekends, you should average when the market move up.

[Truthlovecoins]

...
This outcome lead me to make further research about the best way to build profits using DCA and I find out that, is a wrong thing to do as a newbies without adequate knowledge about the volatility of the bitcoin market, and also no matter how sweet the DCA approach have been for experience bitcoin investors, DCA can still be the worst for a newbies,  so I say newbies should stay away from DCA until they have the knowledge of the risk and approach to DCA.

...

You didn't share with us the research knowledge you gathered for the best DCA strategy to adopt by newbies like me willing to invest in cryptocurrency. You should have, but it's okay.

Well, from my own research, DCA relieves market volatility by spreading out a certain amount of investments over a set amount of time, reducing the impact of market fluctuations on expected profits.
Also, when trying to DCA, the right time to invest is very important because it determines how effective the strategy is with producing the right profit/returns based on the risk taken.

In total, the way an investor wants to invest is crucial and very reliant on the investors risk appetite, the time horizon of the region the investor resides in and what the objective or goal for DCAing is.
 In summary it is best a newbie like us, start with small purchases at lower frequencies, at the right time with a very good goal in mind.

[Falconer]

-snip-

You didn’t state how you DCA, hope you’re not just buying when the price gets high and even at that you won’t still lose if you do not hold the coin for a very long term. DCA as the name implies gets you an average price which should be lower to your take profit target. Let’s look at it mathematically, if you buy one bitcoin at different prices like at $50k, $56k, $62k $67k and $71k. You He have the average of $61.2k so should you take profit at price higher than this then you would definitely be in profits.

Why you’re on loss now is probably because your average price is still lower than the take profit or the current price of market.

I think there is something wrong with the DCA strategy that OP has been practicing so far. I don't know why he makes a loss when using DCA as his strategy, while most others make a profit because the average price is lower. He needs to make adjustments because apart from strategy, the strength of the budget can also affect the level of profit obtained.

So that means; he must continue to do DCA with the same or higher budget than before, if he does it with a lower budget then of course the average price can be higher compared to those who use the same budget to buy DCA.

[Franctoshi]

What I have noticed with my bitcoin holding is that, I have continued to lose more, each time i try to take advantage of the price to profits, in form of DCA approach.

This outcome lead me to make further research about the best way to build profits using DCA and I find out that, is a wrong thing to do as a newbies without adequate knowledge about the volatility of the bitcoin market, and also no matter how sweet the DCA approach have been for experience bitcoin investors, DCA can still be the worst for a newbies,  so I say newbies should stay away from DCA until they have the knowledge of the risk and approach to DCA.

Thank you for reading.

I really don't understand where you applied your DCA method, whether it's via spot trading or via future trading, and to your awareness DCA strategy isn't something you do today and expect to have your Bitcoin portfolio start increasing in value immediately, this a wrong way of thinking that Dollar cost averaging works, it simply a way of Buying Bitcoin without having to dive into the market at once, this way you wouldn't be affected by the price volatility, and also it will help you buy both in discount prices eventually we have the price dip down a bit.

[DiMarxist]

Well that's just plain out wrong lmao. DCA is exactly the strategy for those without much market knowledge because most people are better off just slowly buying instead of trying to time markets. What do you recommend, buying dips? lmao — one of the recipes for disaster.

The Op probably made mistake of his content of what he was about to say. Or he does not know what the uses of DCA. DCA is one the best method of acquiring bitcoin in the market and it is use for low income workers or side Hustlers. I also used that method to acquired my bitcoins for about 6 months. There was a time I was topping it every week and later I changed it to months. And that is how I was changing the investment input. And today I am okay now and I will buy more in the halving. So when I see the Op saying that he lost bitcoin because of DCA, I was wondering how?
And I think he has not gotten the full understanding of DCA.

[Rengga Jati]

In fact, what do you expect from DCA? Do you hope that your Bitcoin portfolio value will continue to rise? DCA is a way or strategy for accumulating coins, for example Bitcoin, with several withdrawals at certain rates, with an averaging system. And so far, DCA has been very successful to implement, even for beginners. Because there is no need to worry about complex daily indicator analysis as is done when trading.

Well, on the other hand, the price of Bitcoin is volatile, it will never continue to rise. In fact, when the BTC price experiences a significant increase, there will definitely be a moment where a market correction occurs. So the price of Bitcoin will fall for a while. This will cause the value of Bitcoin in your portfolio to decrease. Of course. But that doesn't mean you experience a loss, as long as you don't sell your Bitcoin, you actually haven't experienced a loss. Your Bitcoin remains intact, only the value of the amount decreases when converted to stable coins or fiat.

And this is what often makes someone panic, namely the decrease in conversion to fiat. While as long as you are still holding, it won't be a problem. Because you can still get profits in the future, as long as you don't panic and sell the coins when the price is falling. But, if you always panic every time the price is going down or declining, whatever the strategy, this will not work because you will panic seriously and sell the coins immediately because of the panic situation.

[Amphenomenon]

The only scenario which I think that DCA will result the same description as OP when he keep buying on fixed time frame while the price of Bitcoin is at peak since the price is too volatile that cause too frequent up and down.

Maybe he keeps buying at 70+K every week while the price go dip after he made the purchase for the week. He will not experience the benefits of his current DCA unless the price already breakout the current ATH to new ATH.

Patience is the key on DCA which the OP probably forgot or didn’t know.

Actually this is one hard truth about DCA strategy while those who are knowledgeable may just hold their funds in other to pull a lump sum strategy when the price drops

Though still yet this only limit the gains they will make at time since in proper DCA strategy, high or Low the Investor continues to buy which cumulatively he/she will still be in gains with time after all we all can agree that bitcoin is the best store of value and so while those who are knowledgeable may gain higher those who are less knowledgeable will also gain and probably more if the price continue to raise since we can also say no body can actually predict bitcoin price movement, after all we didn't expect bitcoin to still be around $70k few days to halving or even expected a new ATH before halving

[Ojima-ojo]

I bet to differ from all others who may have misconception about what form of DCA the ops refer to because for sure it is very important to note when the buy price and the sell price occurs, and not buying at high price and also taking the right steps to focus on Bitcoin accumulation instead of the dollar cost of Bitcoin at that point.


Let clear up some of this facts so as to remain at a basic ground that will clear off every misconceptions, while trying to understand the ops.