Does the DCA strategy inspire newbies to invest?

[MusaPk]

Each person can choose his level of aggressiveness or his level of whimpiness or if he has priorities in other places.  Saylor's situation seems to show that he had been able to raise more money when the price was going up rather than ongoingly buying bitcoin, and likely Saylor/MSTR have other things going on in regards to how they might convince others to give them money to buy bitcoin.

I am talking about Saylor and his company investing strategy. Since they are investing we will talk about them not about their investors because in the end its MSTR portfolio that is still in negative even after 5.5 years of investment. Since you said consistency is not important thats why I gave you example of them. If we don't have a plan on how to invest for long term like investing per week or month then we are left with option of investing whenever we feel its the right time and that might not give you good results in the long run.

[Merit.s]

learn to manage the trading to be done and the loss to be encountered in sudden declines and to develop a strategy against unexpected market shocks by determining the situation.

I know that you're new to this thread but this is not a buying and selling thread (trading) this thread is all about how you can start your bitcoin investment with DCA using your discretionary income to build and grow it overtime for the future and hodli.

Bitcoin is a long-term asset asset and should be treated as one. If you buy today and sell because of profit tomorrow, you will not be able to accumulate more bitcoin for your future and bitcoin price increases overtime. You are still used to talking about stock, you have to learn how to be conversant with the word bitcoin.

[ruykeri]

Nobody can force anyone to invest more or less, its just personal choice that you are investing maximum or you prefer to remain wimpy. If you have 100$ spare in your pocket and you prefer to invest just 50$ then it's your personal choice to remain wimpy.

I don't think that anyone with $100 discretionary and chooses to invest $50 into bitcoin is investing in a whimpy way. It's when you have $100 discretionary income and start investing $20 weekly is when you are investing in a whimpy way.

 But those who have 100$ spare and are investing 100$ in Bitcoin are doing there own benefit because they are increasing their future profit. 

I don't think that investing $100 which is your full discretionary income is being realistic because you have your discretionary consumption to take care of. It's not because you are investing in bitcoin, you should deprive yourself from your discretionary consumption since investing is a long-term thing.

That’s right, I totally agree with you sim_card, investing $50 out of your total discretionary funds of $100 is neither wimpy nor aggressive it’s average and well recommended for folks with a static discretionary funds except there’s is an increase in their in their discretionary funds and folk decide to go a little bit extra.

Going aggressive on your Bitcoin accumulation doesn’t necessarily mean one should go in with all his discretionary funds because one have other side expenses too, and also folk shouldn’t forget emergency funds are also gotten from part of one’s discretionary funds. So investing all of your discretionary funds into Bitcoin is like a time bomb waiting to be detonated because you never know when emergency will come up.

DCA in Bitcoin depends on the person's income and financial situation. Whimpy and aggressiveness do not only depend on the percentage of discretionary income. There is some difference beginning of investing and after some day later . Since the backup is weak at the beginning, the income may be inconsistent, or you are still learning to handle volatility mentally, then even if your discretionary income is $100, it is okay to DCA from there with low amount . But With time, when all these factors are fixed, the amount of DCA will increase, which is normal.

Think of two people. one has a stable job, 6 months backup, no debt, has a strong belief in Bitcoin, does not panic about short-term fluctuations, in his case, if he DCA from $100 to $70 or even $80, it may be normal. For another person's income is irregular, has almost no emergency fund, and family expenses are unpredictable, anxiety increases for price move it btc . If this person gives $50, that also  may be too aggressive. For him, it may be better to start with $20 or $30. An investor should invest with that amount of money where he will not experience any financial stress.

[Abu-Naim]

DCA in Bitcoin depends on the person's income and financial situation. Whimpy and aggressiveness do not only depend on the percentage of discretionary income. There is some difference beginning of investing and after some day later . Since the backup is weak at the beginning, the income may be inconsistent, or you are still learning to handle volatility mentally, then even if your discretionary income is $100, it is okay to DCA from there with low amount . But With time, when all these factors are fixed, the amount of DCA will increase, which is normal.

Yes, the amount to be used to buy Bitcoin into your portfolio actually depends on your mindset and your target on how long you want to accumulate some amount of Bitcoin, if you have that in mind, there will be some seriousness in your investment which means the amont you will be investing on timely interval, it can keep increasing if you are abe to manage your expenses and focus thouroughy on Bitcoin investment because thats the real goal now, use what you have to accumulate what you want within some time.

Think of two people. one has a stable job, 6 months backup, no debt, has a strong belief in Bitcoin, does not panic about short-term fluctuations, in his case, if he DCA from $100 to $70 or even $80, it may be normal. For another person's income is irregular, has almost no emergency fund, and family expenses are unpredictable, anxiety increases for price move it btc . If this person gives $50, that also  may be too aggressive. For him, it may be better to start with $20 or $30. An investor should invest with that amount of money where he will not experience any financial stress.

Th amont they are both earning doesent mean anything if the owner is not able to amanage their expenses to cut const and have a larger percentage for Bitcoin investment because the other money used for expenses will be gone forever, while the amount you use to buy Bitcoin will remain as your investment and yoy will make profit from it with time you can hold for long.

[Jamestown70]

Th amont they are both earning doesent mean anything if the owner is not able to amanage their expenses to cut const and have a larger percentage for Bitcoin investment because the other money used for expenses will be gone forever, while the amount you use to buy Bitcoin will remain as your investment and yoy will make profit from it with time you can hold for long.

To be honest, your opinion doesn’t really go down well with me, are you saying, for the fact one is into Bitcoin investment he has to cut down most of expanses just so that he can up his discretionary amount to be able to accumulate more Bitcoin.

From my opinion, if these expenses are not really necessary (they’re not your basic needs), or what isn’t really needed, then cutting them down isn’t a bad idea. But in cases where an investor really wants to up his weekly or monthly accumulation, then strengthening your cash flow seems to me as a nice approach in the stead of cutting down one’s primary needs expenses cost. That is adding other side hustle to generate more income so there’ll be an increase in his discretionary funds and he will be able to accumulate more Bitcoin as he wishes.

[Abu-Naim]

Th amont they are both earning doesent mean anything if the owner is not able to amanage their expenses to cut const and have a larger percentage for Bitcoin investment because the other money used for expenses will be gone forever, while the amount you use to buy Bitcoin will remain as your investment and yoy will make profit from it with time you can hold for long.

To be honest, your opinion doesn’t really go down well with me, are you saying, for the fact one is into Bitcoin investment he has to cut down most of expanses just so that he can up his discretionary amount to be able to accumulate more Bitcoin.

From my opinion, if these expenses are not really necessary (they’re not your basic needs), or what isn’t really needed, then cutting them down isn’t a bad idea. But in cases where an investor really wants to up his weekly or monthly accumulation, then strengthening your cash flow seems to me as a nice approach in the stead of cutting down one’s primary needs expenses cost. That is adding other side hustle to generate more income so there’ll be an increase in his discretionary funds and he will be able to accumulate more Bitcoin as he wishes.

Not to cut down most of your expenses per se, but remember whenever you want to achieve something, we make sacrifices to make sure we achieve our goals, while if it involves money we try to weigh our expenses to see the important once and maybe suspend those that are not important so as to buy or achoeve what ypu really want; it is the same with Bitcoin investment. If you want to accumulate Bitcoin through DCA method, you need to be consistent and have a target that will guide you toeards attaining your goal; although if you dont have money, you can leave it till the time you will have the money to invest.

You know we have needs and wants in our daily expenses, if you are serious about the Bitcoin investment, you can skip some of your expenses that are not important or necessarely so that you can have more money to focus on your investment while takintg care of your needs as well.

[PhilosopherKing]

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

You touched on an important issue xbartoni...
first of all, lets clarify what the DCA approach is. it is a strategy with a strong history and simple to implement, which should be used carefully especially in highly volatile assets such as Bitcoin for new investors who will trade in the stock market and proceed on this path. i think, systematically buying a fixed amount at regular intervals reduces the risk in the market. my opinion is simply in this direction   because it minimizes the fluctuation that will occur by spreading the purchases and sales over time... i think however  from a professional perspective DCA alone is not a savior. those who will invest in the stock market should have clear goals and analyze their needs well and consider all risks in advance. learn to manage the trading to be done and the loss to be encountered in sudden declines and to develop a strategy against unexpected market shocks by determining the situation... i think secure storage (cold wallets) is important in the case of Bitcoin.
in conclusion: with my thoughts and analysis DCA offers a quality structure for saving money in the long term. however for its effective implementation it is necessary to adopt professional standards in discipline risk management and infrastructure...

                                                                                                                                                                                                      korakwinband

Dude investing bitcoin with DCa is not the same thing as trading in stock market. So hell no, you don't use DCa to trade stock, DCa is for ongoingly investment in bitcoin.

Trading is a timing the market thing that has enough risk that can make you to loose all your money, so stay the fuck away from trading and just do DCa. Imo DCa is better savior than trading

[Sticky Bomb]

It is aggressive investment when you invest above your discretionary income. When you are doing so, the weight becomes heavily on you, even if your intention is to acquire much bitcoin as you can at that period, it is still aggressive investing. The intention does not stop the fact that your discretionary income is around 30% of your actually income, and you are investing with 50% of your actual income. It means that other aspect of your life is not well taking care of. With this method you cannot continue for long if you dont stop.

That is being aggressive wrongly and it can also be a misinformation because that is not the aggressive we are talking about an investor should only be aggressive within their discretionary income and there's nothing wrong if an investor decides to go aggressively with all his or her discretionary income but they should not exceed or go outside their discretionary income that will be wrong and can be considered trading or gambling so no matter how aggressive we want to be, it should be within our discretionary income.

If you've not properly built out your backup funds, especially your emergency fund, resorting to using all your discretionary income to buy bitcoin may as well become some sort of a problem down the road. At a time when you've an emergency and your weak emergency fund does not suit to settle the emergency, then you turn back to liquidate part of your portfolio to attend to such an emergency which is a bad practice and would've been avoided if you managed your cashflow better.
You can now see that your decision to use all your discretionary income turned against you in this scenario. It is always better when we apply some sort of a moderation between our DCA regular buys and our building out necessary backup funds so that we don't end up shooting ourselves on the foot even though we're still using our discretionary income to get very aggressive in investing.

[ultrloa]

Th amont they are both earning doesent mean anything if the owner is not able to amanage their expenses to cut const and have a larger percentage for Bitcoin investment because the other money used for expenses will be gone forever, while the amount you use to buy Bitcoin will remain as your investment and yoy will make profit from it with time you can hold for long.

To be honest, your opinion doesn’t really go down well with me, are you saying, for the fact one is into Bitcoin investment he has to cut down most of expanses just so that he can up his discretionary amount to be able to accumulate more Bitcoin.

From my opinion, if these expenses are not really necessary (they’re not your basic needs), or what isn’t really needed, then cutting them down isn’t a bad idea. But in cases where an investor really wants to up his weekly or monthly accumulation, then strengthening your cash flow seems to me as a nice approach in the stead of cutting down one’s primary needs expenses cost. That is adding other side hustle to generate more income so there’ll be an increase in his discretionary funds and he will be able to accumulate more Bitcoin as he wishes.

Not to cut down most of your expenses per se, but remember whenever you want to achieve something, we make sacrifices to make sure we achieve our goals, while if it involves money we try to weigh our expenses to see the important once and maybe suspend those that are not important so as to buy or achoeve what ypu really want; it is the same with Bitcoin investment. If you want to accumulate Bitcoin through DCA method, you need to be consistent and have a target that will guide you toeards attaining your goal; although if you dont have money, you can leave it till the time you will have the money to invest.

You know we have needs and wants in our daily expenses, if you are serious about the Bitcoin investment, you can skip some of your expenses that are not important or necessarely so that you can have more money to focus on your investment while takintg care of your needs as well.

Trying to achieve whatever goals they have especially on investment needs sacrifice and also discipline.

Also DCA is good guide for anyone so they have certain things that remind them to be consistent and also to have clear target towards their investments.

We all have wants and needs in life, but if we are really damn serious with our investment. Its better to cut those unimportant matters then focus only on our basic needs. With that situation we can pay good attention with our investments.

If it happen that they face temporary financial struggle they can pause for a while then just continue if situation feels better again. What's important is they are still committed for long term on Bitcoin.

[Abbatty]

learn to manage the trading to be done and the loss to be encountered in sudden declines and to develop a strategy against unexpected market shocks by determining the situation.

I know that you're new to this thread but this is not a buying and selling thread (trading) this thread is all about how you can start your bitcoin investment with DCA using your discretionary income to build and grow it overtime for the future and hodli.

Bitcoin is a long-term asset asset and should be treated as one. If you buy today and sell because of profit tomorrow, you will not be able to accumulate more bitcoin for your future and bitcoin price increases overtime. You are still used to talking about stock, you have to learn how to be conversant with the word bitcoin.

Well said, a lot of people tends to misunderstand the difference between bitcoin investors and traders, investment in bitcoin with a profit minded overview is trading while investing to build a future for yourself through bitcoin is investing.

I hope you after your read this you now have a different mindset on investing.

[Ashawowo(OS)]

This is a very valid point and this thinking corrects the mistake that folks make when they get too aggressive with investing. Folks have to realize that discretionary income does not equal all-in investing money and even though it is extra money, it still has many other purposes asides just bitcoin and so in other words, having extra discretionary income doesn’t mean you have to focus on only one goal(aggressive investing) rather it means you now have an opportunity to balance multiple goals wisely .

Being able to balance multiple goals simply means, you’ve had more of these goals pre-planned. When that’s not the case, then it might be you just trying to invent one for yourself given the opportunity at hand with the multiple discretionary income. It still doesn’t explain why that can’t go into Bitcoin investment. While practicing the DCA strategy, it isn’t aggressive investing if you decided to level up and increase the amount you use in your DCA method of investing. They all still play out fine and falls within context.

It is aggressive buying when you increase your buying amount within same discretionary income context, but it isn't a wrong idea if you can sustain it, maybe you've gone very ahead in building out your backup funds or almost completing your target for it and you then decide to increase your buying amount in order to get further ahead in your regular buys. As long as you're not being over aggressive and you're not neglecting the importance of building out backup funds in your practice, you don't have much of a problem.

[Kryptonite788]

You touched on an important issue xbartoni...
first of all, lets clarify what the DCA approach is. it is a strategy with a strong history and simple to implement, which should be used carefully especially in highly volatile assets such as Bitcoin for new investors who will trade in the stock market and proceed on this path. i think, systematically buying a fixed amount at regular intervals reduces the risk in the market. my opinion is simply in this direction  because it minimizes the fluctuation that will occur by spreading the purchases and sales over time... i think however  from a professional perspective DCA alone is not a savior. those who will invest in the stock market should have clear goals and analyze their needs well and consider all risks in advance. learn to manage the trading to be done and the loss to be encountered in sudden declines and to develop a strategy against unexpected market shocks by determining the situation... i think secure storage (cold wallets) is important in the case of Bitcoin.
in conclusion: with my thoughts and analysis DCA offers a quality structure for saving money in the long term. however for its effective implementation it is necessary to adopt professional standards in discipline risk management and infrastructure...

                                                                                                                                                                                                      korakwinband

Mentioning DCA and trading in the same sentence is diabolical , do not confuse yourself @korakwinband,first and foremost your idea that DCA has a strong history and is broadly effective is mostly misleading and my reason for saying this is because that idea depends heavily on the type of market or asset you’re applying it to. DCA works well for assets that trend upward overtime with relatively stable growth, so steady markets like broad stock index work very well with DCA because the overall trend goes upward over time and long term growth eventually smooth out the impact of buying at higher price but when it comes to bitcoin, the case is different, due to the volatility of bitcoin, its price moves in extreme cycles with huge spikes and crashes ,multi year bear markets can leave DCA investors buying continuously while price is falling and this can cause reduction in overall returns so even though DCA has a good history In steadily growing markets, when it comes to highly cyclical and volatile assets like bitcoin ,it tends to trade off higher potential returns for simplicity and emotional discipline. DCA is not a structured professional strategy, it is more of a behavioral compromise tool and its sole reason for existence is to protect inexperienced investors from making emotional mistakes and to help them stay in the market without sabotaging themselves by trying to maximize short term gains.

[Showlove01]

This is a very valid point and this thinking corrects the mistake that folks make when they get too aggressive with investing. Folks have to realize that discretionary income does not equal all-in investing money and even though it is extra money, it still has many other purposes asides just bitcoin and so in other words, having extra discretionary income doesn’t mean you have to focus on only one goal(aggressive investing) rather it means you now have an opportunity to balance multiple goals wisely .

Being able to balance multiple goals simply means, you’ve had more of these goals pre-planned. When that’s not the case, then it might be you just trying to invent one for yourself given the opportunity at hand with the multiple discretionary income. It still doesn’t explain why that can’t go into Bitcoin investment. While practicing the DCA strategy, it isn’t aggressive investing if you decided to level up and increase the amount you use in your DCA method of investing. They all still play out fine and falls within context.

It is aggressive buying when you increase your buying amount within same discretionary income context, but it isn't a wrong idea if you can sustain it, maybe you've gone very ahead in building out your backup funds or almost completing your target for it and you then decide to increase your buying amount in order to get further ahead in your regular buys. As long as you're not being over aggressive and you're not neglecting the importance of building out backup funds in your practice, you don't have much of a problem.

Aggressive buying is an approach of growing or increasing our portfolio due to the market and there is no problem if an investor decides to be aggressive in their purchase or not and also there is nothing wrong even if they decide to be over aggressive provided the money is from their discretionary income after all money in their discretionary income is already meant for accumulation but as a beginner or newbie I can not really advise they should be aggressive because they are yet to understand things and the market better so there won't be any need to rush ( Note: they can still be aggressive but it will be too early for them).

[MusaPk]

Not to cut down most of your expenses per se, but remember whenever you want to achieve something, we make sacrifices to make sure we achieve our goals, while if it involves money we try to weigh our expenses to see the important once and maybe suspend those that are not important so as to buy or achoeve what ypu really want; it is the same with Bitcoin investment. If you want to accumulate Bitcoin through DCA method, you need to be consistent and have a target that will guide you toeards attaining your goal; although if you dont have money, you can leave it till the time you will have the money to invest.

You know we have needs and wants in our daily expenses, if you are serious about the Bitcoin investment, you can skip some of your expenses that are not important or necessarely so that you can have more money to focus on your investment while takintg care of your needs as well.

If someone is serious to invest in Bitcoin then its better for him to make a list of essential and non-essential things. Such list will help him in sparing money for essential things while the money spend on non-essential things can be saved for Bitcoin. We must make this our habit to save money from our monthly income and invest that saved money in Bitcoin for long term. We have to sacrifice spending's on non-essential things to gain good return from Bitcoin. It won't feel good for time being but in the long run it will be worth sacrificing.

[Kryptonite788]

If someone is serious to invest in Bitcoin then its better for him to make a list of essential and non-essential things. Such list will help him in sparing money for essential things while the money spend on non-essential things can be saved for Bitcoin. We must make this our habit to save money from our monthly income and invest that saved money in Bitcoin for long term. We have to sacrifice spending's on non-essential things to gain good return from Bitcoin. It won't feel good for time being but in the long run it will be worth sacrificing.

Making a list of essential and non-essential things just because you want to invest is a waste of time and basically unnecessary. I believe that as long as you have discretionary income in hand just invest what you wanna invest because having discretionary income already implies that all your essential needs have been catered for so no need to be making any “essential vs non-essential list” and at the end of the day making such a list doesn’t even guarantee that you’ll make better decisions. And come to think of it,  what if the person operates on fixed allocation and they decide to invest 10% of whatever they earn monthly ?,do you really think making a list of essentials vs non-essentials would still be relevant?, of course it won’t be relevant anymore because the system will automatically adjust itself so when income goes up, investment increases and when income decreases, investment decreases as well,so no list is needed .

[Cleanslate_]

DCA is the only strategy that gives newbies the strong mindset and the ability to comfortably invest in bitcoin without any stress of finance as long as you are using your discretionary income.

DCA gives you the ability of consistently, ongoingly accumulating bitcoin whenever you want and gives you an edge by gradually building up your investment over those who are waiting for financial stability before investing

[Joy- maker]

You touched on an important issue xbartoni...
first of all, lets clarify what the DCA approach is. it is a strategy with a strong history and simple to implement, which should be used carefully especially in highly volatile assets such as Bitcoin for new investors who will trade in the stock market and proceed on this path. i think, systematically buying a fixed amount at regular intervals reduces the risk in the market. my opinion is simply in this direction   because it minimizes the fluctuation that will occur by spreading the purchases and sales over time... i think however  from a professional perspective DCA alone is not a savior. those who will invest in the stock market should have clear goals and analyze their needs well and consider all risks in advance. learn to manage the trading to be done and the loss to be encountered in sudden declines and to develop a strategy against unexpected market shocks by determining the situation... i think secure storage (cold wallets) is important in the case of Bitcoin.

DCA is an accumulating strategy that let you buy Bitcoin regularly using your discretionary income without trying to time the market, Secondly, nobody is talking about stock market nor trading here. We are specifically discussing about Bitcoin investment, so if you want to contribute anything to this thread you have to stick to word Bitcoin only.
Furthermore, there is no point trading in the stocks market and accumulating Bitcoin at the same time, because you will get yourself distracted, and end up mixing buying opportunities. So instead of doing that shit focus on the ongoing accumulation of Bitcoin and hold for long term.

[SmartCharpa]

DCA is the only strategy that gives newbies the strong mindset and the ability to comfortably invest in bitcoin without any stress of finance as long as you are using your discretionary income.

DCA gives you the ability of consistently, ongoingly accumulating bitcoin whenever you want and gives you an edge by gradually building up your investment over those who are waiting for financial stability before investing

It’s not only newbies who feel comfortable investing in Bitcoin using DCA, using DCA gives every investor peace of mind while investing, you will not over stress yourself because you are not using a method without a plan. Many investors you see today who are consistent with their investment achieve that through DCA, because once you set the amount you can afford to invest, the only thing remain is to stay consistent and keep buying.

In addition, for the newbies, the DCA helps you avoid some wrong decisions, you only invest with the money you fixed gradually, whether weekly or monthly without stress. And one of the reason why experience investors still use DCA because it reduces risk even the market is going up and down. So anyone who wants to stay consistent with their investment should use DCA.

[Qhunman]

however  from a professional perspective DCA alone is not a savior. those who will invest in the stock market should have clear goals and analyze their needs well and consider all risks in advance.                                                                                                                                                                                              

Should I remind you that Bitcoin and stock are two different things. You should stick to the main topic of the thread which is "does DCA strategy inspire newbie to invest?". I believe the topic of the thread isn't related to the stock market so nothing concern bitcoin investors and the stock market. Moreover bitcoin investment is more profitable than even the stock market so why would I even pay attention to you what ve said. My long term goals in bitcoin hasn't been met yet, so my  focus is to ongoingly, persistent and consistently accumulate bitcoin via using the dca strategy over the long term.