Does the DCA strategy inspire newbies to invest?

[UpTober]

The DCA strategy doesn't help newbies avoid mistakes, every newbie may still be liable to make some errors in their early days of investing and such errors may be regarding the correct management of their cashflows to allocate a definite sum consistently to their regular buys. The newbie might still have some difficulties projecting their expenses and may undercalculate their expenses at some scenarios and end up being over aggressive in their periodic buy which may see them tamper their holding to meet up. Some newbies learn faster and would get a proper hold of their cashflow management faster than others which it may take a longer time to reach such a maturity.

Newbies have a lot to learn, but it will be beneficial to learn through investing in the beginning. Because if a person does not invest and learn about Bitcoin, it will not be good for him, but if he has participated in the investment and is following the DCA method weekly, it will be possible to gradually learn. Because the more experienced a person is, the more important it will be to follow the DCA method in the future and buy Bitcoin and hold it for a long time. In the current situation, if a new investor participates in Bitcoin investment, he will definitely be successful within a few years.

In terms of investment, it cannot be said with such certainty that an investor will definitely succeed within a few years after starting the investment. Your comments like this make it very certain that an investor will definitely be able to make a profit if they keep it for a few years, I think you should be a little more strategic before making such comments. Investing in Bitcoin has risks and the DCA investment method does not completely guarantee profit. It basically helps to control emotions, does not overbuy and sell during market fluctuations.

Advice can be given to new investors that they should be patient, focus on long-term investment, should not get too excited about market fluctuations, and should plan to invest with an amount of money that will not cause them much financial problems if they lose it. In terms of investment, experience does not only come from buying consistently weekly or monthly, but often experience comes from holding investments in bad times. 

Finally, I would like to add that if DCA investment is combined with proper management, consistency, emergency funds, and patience, the investment foundation becomes stronger, but it does not guarantee that profits will be made.

[Catenaccio]

DCA accumulation strategy gives an investor the opportunity to accumulate a good quantity of bitcoin that he wouldn't have been able to accumulate without using DCA

It's correct but I'd like to say something else.

Accumulation with DCA strategy can help people accumulating considerable quantity of bitcoin, even more than other strategies, if we apply different strategies for accumulation and compare results with each other. But there is another good contribution from DCA strategy, that makes investors are able to hold their bitcoin and they will be less likely panic sell while with other strategies that don't count risk enough, don't manage risk properly, investors will have higher chance of panic sell.

So by these effects for accumulation and holding bitcoin with DCA strategy, in my opinion it is a best strategy for long term investors.

[Hardyrobust]

I find investors using the DCA strategy invest for the long term.
Special Considerations Should Beginners Follow the DCA Method for Bitcoin Investments? What Can Be the Outcome -Future

Newbies that don't understand much about the DCA strategy might see it as too risky for the type of investment they want to engage in. The DCA is okay for people that want to be buying Bitcoin at intervals but not everyone can buy Bitcoin using this pattern.
Most investors might not have the money to be buying Bitcoin frequently because you might have to save money for sometime so that you can accumulate enough money that can buy Bitcoin and hold, waiting for the price of Bitcoin to go up before ever selling.

The DCA strategy should be considered the best strategy for newbies and is not something that is difficult for newbies to understand. The strategies is a simple and easy going strategy that a beginner will love to start with since they can start with any amount of discretion they have. Therefore I don't see reasons why any newbie will find it difficult to comprehend the DCA strategy and to even consider it.

[Taskford]

Is there anyone that can explain how this DCA works, I only buy bitcoin whenever I feel like or when price is dipping, because I know that it will surely recover.  I started seeing DCA on people post on this forum.

DCA strategy is about buying certain amount or volume of  Bitcoin on the schedule you set. Either you schedule it daily, weekly or monthly depends on how flexible your income.

Also instead of waiting for those decline before you accumulate, better buy at whatever price show up because this will save you lots of stress and stay away on any guessing on when those declines will gonna happen.

Its important to be consistent rather than waiting so try those best approach and stop doing those actions that can cause you some delays.

[Proty]

DCA accumulation strategy gives an investor the opportunity to accumulate a good quantity of bitcoin that he wouldn't have been able to accumulate without using DCA

It's correct but I'd like to say something else.

Accumulation with DCA strategy can help people accumulating considerable quantity of bitcoin, even more than other strategies, if we apply different strategies for accumulation and compare results with each other. But there is another good contribution from DCA strategy, that makes investors are able to hold their bitcoin and they will be less likely panic sell while with other strategies that don't count risk enough, don't manage risk properly, investors will have higher chance of panic sell.

So by these effects for accumulation and holding bitcoin with DCA strategy, in my opinion it is a best strategy for long term investors.

yes accumulating bitcoin using DCA strategy may help investors especially those with low income to be able to accumulate a reasonable amount of bitcoin over time as the DCA strategy gives room for consistent buying. By buying bitcoin at regular intervals, those that can't be able to buy using lump sum can still accumulate a huge amounts and at different prices using the DCA strategy.

[yixichloro2xx]

DCA strategy is a good strategy to use when accumulating bitcoin and i also believe that it has inspired new investors who has an interest to invest in bitcoin to start investing because this strategy is accessable to both low income earners and also high income earners, it's a strategy that an investor will use even when they don't have a big money to accumulate bitcoin with, with the DCA strategy an investor can start accumulating with the little discretionary income they have no mater the price of bitcoin you can buy regularly or any time you have your discretionary income maybe every weeks on month just depending on when you have your discretionary income available.

Yeah, DCA safeguard you when investing. But I hope everyone should also put it at the back of their mind that DCA works perfectly when you are consistent with it. Consistency by accumulating on a weekly basis or time frame you prefer to do so. If you aren't consistent enough you won't be able to accumulate enough Bitcoin overtime which will make your gains look small especially for low income earner. So even if it's 10 or $20  that you can spare on a weekly basis it's very okay as long as you do consistently regardless of the market condition whether it's bullish or bearish. Then also learn the act of being patient and discipline because you should invest based on a plan, not emotions.

[Sim_card]

Most investors might not have the money to be buying Bitcoin frequently because you might have to save money for sometime so that you can accumulate enough money that can buy Bitcoin and hold, waiting for the price of Bitcoin to go up before ever selling.

You don't take your time to be saving money for long before you buy bitcoin if you have discretionary income up to $10 weekly/monthly. You can use that $10 to buy bitcoin whenever it's available. Waiting and saving to pile up the money before buying is a waste of time and a delay to increase your bitcoin investment because during the process of saving it, you are missing the opportunity in the market and something else can pop up that will make you deep hands into the money.

This is where DCA saves us from spending your discretionary income carelessly without investing it into bitcoin because the moment your discretionary income is available, you take part of it and DCA immediately and wait till when next you recieve your income. If your discretionary income is very small to the point that you cannot buy bitcoin with it immediately, you can be saving it and buy when it's up to $10 but at the same time, you need to be looking for a way to improve your income in order to get a regular discretionary income to use in DCAing for 4-10 years and above.

You don't sell your bitcoin investment because you have seen profit or when the price of bitcoin is higher than what you bought because that's a trading mindset. Only traders behaves like that and traders are classified as gamblers because they find it difficult to build and grow their bitcoin investment for the future. In the long run a trader will definitely runa at loss.

Have a bitcoin target that you intend to accumulate in order for you to be focused to keep your bitcoin accumulation ongoing overtime with DCA until you have reached your bitcoin target and don't be distracted with taking profits.

[Rubuchi]

Investing in Bitcoin using Dollar Cost Averaging DCA method is good especially for beginners. This method reduces stress by avoiding constant price checks. It offers four benefits like less worry about price changes and buying Bitcoin at different prices and selling some when prices swing and growing investments long term. If anyone want get most out of DCA learning how to use it correctly is key.

Dollar Cost Averaging is an efficient investment strategy for all investors, not only beginners. It can be more helpful for beginners who are most vulnerable to news, fud, market volatility as well as lack of proper risk and capital management with their limited experience in this market.

This strategy can help investors to gradually invest their money into bitcoin, do their bitcoin accumulation gradually with time. It reduces time they need to watch the market for finding good entries and can give them more time for doing other things, especially working for money to buy more bitcoin. With DCA strategy, investors no longer need to find good or best entries, because basically it's very challenging or impossible to find such entries.

Investors need to have both, entries and exits, and there is a helpful Withdrawal strategy.
[ANN] JJG Sustainable Bitcoin Withdrawal Strategy
https://bitcoindata.science/withdrawal-strategy

"Yes That's what I'm saying, DCA helps you focus on the journey, not just the destination. You keep buying, no matter what, and you'll be surprised how heavy your portfolio is already...

For those folks who are just getting into Bitcoin, DCA will not get you a heavy portfolio in a couple days or a couple of weeks... To grow a meaningful portfolio, folks would have to ensure that they adopt some level of aggressiveness and consistency while making use of DCA.... Though folks may have different definitions as to what they consider a heavy portfolio, but then I like suggesting that folks ensure that their target isn't based on a short term mindset since Bitcoin involves  long term cycle... They should ensure that there target doesn't go below the minimum of a 4 yrs timeline...

It is not how far one has gone that matters most what is mostly important is how well is your investment, secondly because DCA is considered to be buying Bitcoin in smaller quantity in different intervals instead of buying all at once doesn't mean people don't buy large amount of Bitcoin and still consider it DCA, the truth is what is big for you might be small for the next man, people are not accumulating Bitcoin through DCA just for couple of days or weeks it is for long term purposes and remember that even buying in smaller quantities over times when put together can give a reasonable size overall, forks should only adopt or maintain that level of aggressiveness that suits their personal circumstances without over doing it because they can't be overly aggressive just because they want to grow a heavy or meaningful portfolio since doing that is more likely to be gambling than investing.

I have had this argument too when people try to categorize one thing as big and the other as small when it comes to investment but an amount which is referred to as a big investment to Mr Ben can be seen as a small investment in the eye of Mr. Isaac and the reason is because both individuals have a different financial portfolios and net worths. This is like an investment made between Elon Musk and another average rich or wealthy American whose net worth is just around $5 million dollars cumulatively. Now let’s say if Elon Musk wants to invest in DCA approach, he might decide to be dropping 500,000 dollars monthly. Now that to the average rich person in USA sounds huge, but it is not just about the size alone as that would depend on the pocket of the investor, it is more about the structure and once the structure is consistent and periodic, you can refer to it as DCA. But if Elon Musk decides to put $6 million dollars on bitcoin today in a single transaction, then you will simply refer to it as a lump sum. But if as a clever investor, he decides to deliberately split the same 6 million across the next 12 months which will be $500,000 monthly, that can be regarded as a strategic DCA decision to manage volatility.

[AuchanX]

I find investors using the DCA strategy invest for the long term.
Special Considerations Should Beginners Follow the DCA Method for Bitcoin Investments? What Can Be the Outcome -Future

Newbies that don't understand much about the DCA strategy might see it as too risky for the type of investment they want to engage in. The DCA is okay for people that want to be buying Bitcoin at intervals but not everyone can buy Bitcoin using this pattern.
Most investors might not have the money to be buying Bitcoin frequently because you might have to save money for sometime so that you can accumulate enough money that can buy Bitcoin and hold, waiting for the price of Bitcoin to go up before ever selling.

Those who mistakenly consider DCA risky actually want to see the results of DCA immediately. In fact, we adopt the DCA method in investing to reduce volatility. Rather than timing the market, if we invest regularly in small amounts, the average purchase price stabilizes in the long run and emotional decisions are reduced. It is true that not everyone can buy regularly. But DCA does not mean investing a large amount every day or every week. If we want, we can invest a certain amount once a month, even after two or three months, according to our ability. The main thing here is discipline and long term perspective, not the amount of money.

[Joeboy]

Those who mistakenly consider DCA risky actually want to see the results of DCA immediately. In fact, we adopt the DCA method in investing to reduce volatility. Rather than timing the market, if we invest regularly in small amounts, the average purchase price stabilizes in the long run and emotional decisions are reduced. It is true that not everyone can buy regularly. But DCA does not mean investing a large amount every day or every week. If we want, we can invest a certain amount once a month, even after two or three months, according to our ability. The main thing here is discipline and long term perspective, not the amount of money.

Think in whatever way you want to, but just know that volatility is a part of Bitcoin and it is not something that can be avoided neither is it what can be reduced. And mind you, volatility is not a television remote neither is it like the price of an asset that can be adjusted in whatever way a person sees fit.... So  I see no point of folks trying to maneuver and outsmart volatility when they could just very well accept it and kickstart their accumulation with the reality in mind..

Volatility has been a part of Bitcoin since times past and you definitely can't come and change that today..

[cxtreenal]

I find investors using the DCA strategy invest for the long term.
Special Considerations Should Beginners Follow the DCA Method for Bitcoin Investments? What Can Be the Outcome -Future

Newbies that don't understand much about the DCA strategy might see it as too risky for the type of investment they want to engage in. The DCA is okay for people that want to be buying Bitcoin at intervals but not everyone can buy Bitcoin using this pattern.
Most investors might not have the money to be buying Bitcoin frequently because you might have to save money for sometime so that you can accumulate enough money that can buy Bitcoin and hold, waiting for the price of Bitcoin to go up before ever selling.

Those who mistakenly consider DCA risky actually want to see the results of DCA immediately. In fact, we adopt the DCA method in investing to reduce volatility. Rather than timing the market, if we invest regularly in small amounts, the average purchase price stabilizes in the long run and emotional decisions are reduced. It is true that not everyone can buy regularly. But DCA does not mean investing a large amount every day or every week. If we want, we can invest a certain amount once a month, even after two or three months, according to our ability. The main thing here is discipline and long term perspective, not the amount of money.

For your convenience in Bitcoin investment you need to remember that the DCA method advises to do it regularly. Regular means every week or twice a month or once a month. After the long period as you said, doing DCA after two or three months will be an irregular accumulation. The effectiveness of this strategy depends on frequent Bitcoin accumulation and discretionary income. Someone may get a salary every month they will adopt a Bitcoin buying strategy according to their convenience, such as setting a budget every week. Those who get a salary/income every week should do it every week.

If you want to maintain discipline in investing, accumulate Bitcoin every week and keep buying regardless of the price situation and the period will be 4-10 years.

[Y3shot]

DCA accumulation strategy gives an investor the opportunity to accumulate a good quantity of bitcoin that he wouldn't have been able to accumulate without using DCA

It's correct but I'd like to say something else.

Accumulation with DCA strategy can help people accumulating considerable quantity of bitcoin, even more than other strategies, if we apply different strategies for accumulation and compare results with each other. But there is another good contribution from DCA strategy, that makes investors are able to hold their bitcoin and they will be less likely panic sell while with other strategies that don't count risk enough, don't manage risk properly, investors will have higher chance of panic sell.

So by these effects for accumulation and holding bitcoin with DCA strategy, in my opinion it is a best strategy for long term investors.

i dont think DCA method of investing of bitcoin or accumulating Bitcoin helps people not to sell their Bitcoin. If you have thst fear of losing you will be forced to sell your Bitcoin that you have been able to accumulate so far.

One of the advantage is for investors to go into the market and not timing when to buy bitcoin and also to help investors buy bitcoin consistently. DCA strategy doesn't hsve anything to do with fear of selling bitcoin, even if you use DCA method to invest Bitcoin if you have fear investing bitcoin you will still end up selling your Bitcoin.

[Mahiyammahi]

If you are afraid to invest in Bitcoin, the DCA method is not a guarantee for you to fear no more. The reason why people are scared to invest is volatility, and if this fear is there, with the DCA method you are accumulating Bitcoin, and the fear of volatility can cause you to sell all the Bitcoin that you have been able to accumulate. ..

This is the most common mistake of investors who use the DCA method. At a time when the market is in a bearish phase, it seems that now it will be possible to sell your BTC and buy them back at a lower price. But when the price decreases, such an investor does not buy BTC, expecting that the price will continue to decrease, and then, when the price starts to increase, he waits for it to decrease and eventually remains without BTC.

Consistency is the key, while waiting for the perfect entry may never come to true. The less knowledge you have the more winner you gets. Who knew about bitcoin from the ages may wait for that deep and ended up nothing .

Well it's not flaw in DCA strategy but a flaw in discipline. A proper DCA removes the emotion and sticks with the predifined interval.

[Obulis]

There's no certain strategy could make a newbie inspired to invest with bitcoin. What I more believe is the profitability of the coin will make them try to participate on this activity or investment decision since they believe they can get something with this coin.

DCA method is a helpful guide for them to determine if they are doing right with their investment and don't get fooled with it. If asking the outcome even if DCA strategy is working method its still up for the person doing well if they do all of things and they mixed everything up with patience. DCA is for long term and people should not mislead about taking profits by using it for short term.

Well said and you are on point THIS DCA strategy is for a long term investment,not for people  who are investing for fast profits
[/quote]
@ chifather247, is it for sure that there's no strategy that can inspire a newbie to invest in Bitcoin? Well I can't believe that, you just stated your mind and that it's only the profitability of the coin that will make you to invest, but what coin are you talking about? Because here we are talking about Bitcoin.

Surely no body will invest to loss, everyone investing has the mind to gain, but from the angle you are pointing from, it means no education before taking Bitcoin investment journey and the mindset like yours are easily entangled with gambling since it is all about profitability as the drive.

When there is basic education about Bitcoin investment, definitely there will be a strategy that will inspire a newbie. Like applying DCA using discretionary funds can inspire low income earner newbies. The same approach can also inspire high income earners newbies who are skeptical about Bitcoin investment.

[Bigjoe33]

. Because the more experienced a person is, the more important it will be to follow the DCA method in the future and buy Bitcoin and hold it for a long time. In the current situation, if a new investor participates in Bitcoin investment, he will definitely be successful within a few years.

Pls dont get decieved of confused about the use of DCA and your investment. Sure, DCA is good, but note that it DOES NOT give you an assurance or a guarantee that you will make profits immediately, neither does it give you a timeline of when you will make enough success from your Investments, No!

Bitcoin investment is highly volatile, and at such no one can actually for sure state when the price will appreciate or decline or move sideways. But we are confident of the fact that bitcoin has proven a store of value and always rewards patients and long term investors. So the idea if to figure out your discretionary income, and then begin your investment right away, and with a long term investment plan, not hopping for immediate rewards or success because it doesn't work that way

The emphasy on DCA is that it helps you buy bitcoin in little fragments as you can afford inorder to get you started early and avoid waiting and not starting all. Because you don't have enough financial strength to buy. So with the DCA, you can start your investment so long as you have been able to figure out your discretionary income. This makes it easier for you to invest calmly, eradicating compulsive buying, pressure or over spending from your means while buying since your are able to control and/or manage your investment and income expenses.

[salad daging]

Consistency is the key, while waiting for the perfect entry may never come to true. The less knowledge you have the more winner you gets. Who knew about bitcoin from the ages may wait for that deep and ended up nothing .

Because we don't know what is the lowest point of bitcoin price during the bearish phase? Whether $20K or $40K (as a round number) instead of waiting uncertainly it is better to buy gradually during the decline then it is better than continuing to think about the decline of the lowest point.

Well it's not flaw in DCA strategy but a flaw in discipline. A proper DCA removes the emotion and sticks with the predifined interval.

Sometimes managing discipline is difficult, especially when the market is down they may be a little anxious because their asset portfolio continues to decline which eventually he stops DCA does not continue anymore.

[Wiwo]

I find investors using the DCA strategy invest for the long term.
Special Considerations Should Beginners Follow the DCA Method for Bitcoin Investments? What Can Be the Outcome -Future

Beginner that have low discretionary income, this amount can be invested on a steady and slow level, DCA is suitable for investors that fall between that financial rang, and most newbie are mostly start up who have no records of huge financial inflows so there is the need for them to adopt DCA as the mechanism to achieve their long term bitcoin investment goals.

[JayJuanGee]

Consistency is the key, while waiting for the perfect entry may never come to true. The less knowledge you have the more winner you gets. Who knew about bitcoin from the ages may wait for that deep and ended up nothing .

Because we don't know what is the lowest point of bitcoin price during the bearish phase? Whether $20K or $40K (as a round number) instead of waiting uncertainly it is better to buy gradually during the decline then it is better than continuing to think about the decline of the lowest point.

You are being a bit unrealistic with your numbers.  Sure, the numbers are possible, yet they are also quite extreme.

It is also possible that the low has already been reached.

DCA does not necessarily need to look at price, and the price could be going up or down, and the person could continue to buy bitcoin on a regular basis, such as weekly.

Since you have been on the forum since March 2017 (nearly 9 years on the forum congratulations), it could well be the case that you have mostly accumulated enough bitcoin already.

Many folks participating in this thread are still in their first cycle of accumulating bitcoin.

Well it's not flaw in DCA strategy but a flaw in discipline. A proper DCA removes the emotion and sticks with the predifined interval.

Sometimes managing discipline is difficult, especially when the market is down they may be a little anxious because their asset portfolio continues to decline which eventually he stops DCA does not continue anymore.

How about you salad daging?  Are you still accumulating? or have you gotten enough?

[SilverCryptoBullet]

DCA does not necessarily need to look at price, and the price could be going up or down, and the person could continue to buy bitcoin on a regular basis, such as weekly.

If the task is looking at the chart, Bitcoin price, watch its up and down, find good or perfect prices for buying and taking profit, people don't need and don't use DCA strategy.

Doing all these steps are challenging and almost impossible to do rightly and accurately with most people, so whenever they realized this impossibility, they will change their mindset and try to find other strategies that are better and can work better for their investment practice. It will come to time for figuring out a strategy like DCA strategy that as you said, does not require looking at price, up and down, and being obsessive with good or perfect prices.

DCA strategy can help people who understanding this fact, loving DCA and applying DCA for their investment from accumulation to withdrawal.

[PhilosopherKing]

DCA does not necessarily need to look at price, and the price could be going up or down, and the person could continue to buy bitcoin on a regular basis, such as weekly.

If the task is looking at the chart, Bitcoin price, watch its up and down, find good or perfect prices for buying and taking profit, people don't need and don't use DCA strategy.

Doing all these steps are challenging and almost impossible to do rightly and accurately with most people, so whenever they realized this impossibility, they will change their mindset and try to find other strategies that are better and can work better for their investment practice. It will come to time for figuring out a strategy like DCA strategy that as you said, does not require looking at price, up and down, and being obsessive with good or perfect prices.

DCA strategy can help people who understanding this fact, loving DCA and applying DCA for their investment from accumulation to withdrawal.

When DCa is concerned investors has no business acting like traders, so then it is needless for investors to start obsessing over prices and looking at chart because some people cannot even control their emotions.

So when they start their obsession over price and poking at charts all day they could loose focus and begin doing all kind of dumb things which can fuck over their who investment.

Anyone in those category should put their mind only to ongoingly buying of bitcoin with a DCa with what they can afforded to loose.