Does the DCA strategy inspire newbies to invest?

[Derekfunds]

It is true that back up funds (or emergency funds) can be built at the same time as bitcoin is being bought, but it would be reckless to start with absolutely zero back up funds.

Back up can be build while buying Bitcoin but the amount of Bitcoin that will be bought will be below the targeted amount so that they can accumulate enough money for backup in order to buy with more money when they have enough money in savings to take care of daily needs.

But in my opinion, instead of accumulating backup separate while investing in Bitcoin, one can just separate some certain amount for Bitcoin investment while the rest of the money should go for other expenses, and when they have increase in their pay, they can as well increase their investment plans. I think it will be better than saving while also using part of the savings for daily necessities which will hardly accumulate as expected.

If you want to build your backup fund, you can definitely build it. You can create an emergency fund with a small amount of money. There is no restriction on this, but you should pay attention to your source of income to sustain your investment for a long time. Because the better your source of income is, the more opportunities you will have to continue your Bitcoin investment.
The emergency fund is formed so that your investment is risk-free in the future, because you should remember that you are investing in Bitcoin for at least eight to ten years in the future. That is why we need to pay attention to all things.

How great our portfolio will look like or our investment, doesn't only depends on our source of income but rather it also depends on our expenses because even though we have a great source of income ( huge source of income) and the expenses to handle is not small or little there is no way our portfolio or our investment will be great because our discretionary will be very small after taking care of those expenses but if our source of income is huge and our expenses is little our discretionary income will increase and this will affect our investment positively.

[Qhunman]

Basic knowledge is likely just having common sense, which means that there is an ability to learn and perhaps a desire to build an investment in bitcoin (since we are in an investing topic) rather than gambling or losing money.  In other words, there are no real basic knowledge that is required beyond common sense, and surely if we also know that there is a need to invest from discretionary funds, if a newbie is having trouble figuring out if they have discretionary funds, then they may well need to spend some time learning math and/or figuring out their budget before they start investing into bitcoin.

I agree with what you said, frst and foremost is to get started,the more they're buying bitcoin, they more they understand bitcoin.They do not need complete knowledge in bitcoin before they can understand the process of buy bitcoin.  With common sense and discretionary income, a newbie should be able to buy bitcoin. However it is important to have a steady stream of discreationary income that they can rely on to buy bitcoin consistently and grow bitcoin investments over the next two bitcoin cycles

[Kryptonite788]

In as much as DCA strategy can help newbies and even old investors with their investment decisions, if a person isn’t financially stable enough ,bitcoin investment becomes harder and there’s a high chance that they will interrupt thier DCA plan when major expenses arise and I’m not trying to diminish the advantages that DCA has to offer but it’s common sense to know that without some certain level of financial stability, it is hard to stay consistent and disciplined over time so whenever we are talking about how DCA helps investors strategize their investments plan, we should also emphasize on the importance of being financially stable, because financial stability is actually what allows a person to be able to stick to DCA plan without folding .

[Loyang]

you shift your priority elsewhere. Both are equal of great importance but, the DCA strategy of Bitcoin accumulation does accommodate all that. It allows you to allocate what you will consider okay for the purpose of Bitcoin investment.

Both backup and investment are important in case of safe Bitcoin accumulation, DCA strategy helps you to invest regularly and in a disciplined manner. But the decision of how much money to allocate depends entirely on your financial situation and risk-taking ability.
For example:- If you have the capacity to invest $25/100.
The investor will decide how much money to invest per week/month and DCA will say okay, give $25/100 regularly every week/month no matter what the price is. In short, Only you will decide how much money to invest, not DCA, and 'how to invest' this strategy will be given by DCA.

Investing in this way is never a right approach. We always need to invest based on our financial situation. For example, it is necessary to find discretionary income through proper financial management and invest with discretionary income. Otherwise, if we invest in this way, we may be at risk in the future. Since we will invest for the long term, we have to take every step carefully.

We will have to reduce our expenses a lot because if our expenses are high, we will never be able to find discretionary income. Extra expenses, such as eating at additional restaurants, smoking expenses, drinking expenses, etc. We have to try to reduce all expenses. When we are able to reduce these expenses, we will be able to add this amount of money to discretionary income and invest.

[Obulis]

[edited out]

Of course, the major thing is to get started as soon as you get your discretionary income ready. Of course, there are so many things you can't learn unless you start and become part of the process. So when once you get started, there are so many things the investor will learn such as.... 1) figuring out the best investment pattern and/or price that will suit your income or investment. 2) Figuring out how to strike a balance and manage your income properly to ensure proper income allocation.. 3)know how best or when to increase or reduce your investment allocation according to your available income, etc..

So, all this experience cannot be learned if you don't get started. Building up your emergency funds and other back up funds too becomes very important as you begin your investment. Though, you can start without the emergency funds, but you must begin to build it up  as long as you have discovered your discretionary income

Everyone likely has to have some level of back up funds to start to buy bitcoin.  Otherwise, how are they going to know if they have covered all of their expenses.  If they use all of their discretionary funds to buy bitcoin, then they have no money left in case there are more expenses before the next time that they are paid. 

It is true that back up funds (or emergency funds) can be built at the same time as bitcoin is being bought, but it would be reckless to start with absolutely zero back up funds.

To small extent, to start buying Bitcoin recklessly (that's with zero back up funds) is like borrowing money to buy Bitcoin although borrowing is more reckless if compared but both are reckless. Such reckless buying could mean selling too soon as more expenses needed or debt demanded in case of borrowing. Starting with a backup funds simply means preparing for stability should unforseen circumstances happen.

[Hardyrobust]

[edited out]

Of course, the major thing is to get started as soon as you get your discretionary income ready. Of course, there are so many things you can't learn unless you start and become part of the process. So when once you get started, there are so many things the investor will learn such as.... 1) figuring out the best investment pattern and/or price that will suit your income or investment. 2) Figuring out how to strike a balance and manage your income properly to ensure proper income allocation.. 3)know how best or when to increase or reduce your investment allocation according to your available income, etc..

So, all this experience cannot be learned if you don't get started. Building up your emergency funds and other back up funds too becomes very important as you begin your investment. Though, you can start without the emergency funds, but you must begin to build it up  as long as you have discovered your discretionary income

Everyone likely has to have some level of back up funds to start to buy bitcoin.  Otherwise, how are they going to know if they have covered all of their expenses.  If they use all of their discretionary funds to buy bitcoin, then they have no money left in case there are more expenses before the next time that they are paid. 

It is true that back up funds (or emergency funds) can be built at the same time as bitcoin is being bought, but it would be reckless to start with absolutely zero back up funds.

To small extent, to start buying Bitcoin recklessly (that's with zero back up funds) is like borrowing money to buy Bitcoin although borrowing is more reckless if compared but both are reckless. Such reckless buying could mean selling too soon as more expenses needed or debt demanded in case of borrowing. Starting with a backup funds simply means preparing for stability should unforseen circumstances happen.

It is mostly due to lack of plan that is what push some people into reckless buying of bitcoin and they fail to appreciate the importance of starting out small and how consistent buying plays a big role in building up a bitcoin portfolio. To some person they just feel like accumulating all the bitcoin they would have in there holding in a week or months.
It won't be a great idea to be aggressive in buying bitcoin and then later end up selling as a result of lack of plan for not being able to set a backup funds.

[Joeboy]

It is true that back up funds (or emergency funds) can be built at the same time as bitcoin is being bought, but it would be reckless to start with absolutely zero back up funds.

Back up can be build while buying Bitcoin but the amount of Bitcoin that will be bought will be below the targeted amount so that they can accumulate enough money for backup in order to buy with more money when they have enough money in savings to take care of daily needs.

But in my opinion, instead of accumulating backup separate while investing in Bitcoin, one can just separate some certain amount for Bitcoin investment while the rest of the money should go for other expenses, and when they have increase in their pay, they can as well increase their investment plans. I think it will be better than saving while also using part of the savings for daily necessities which will hardly accumulate as expected.

If you want to build your backup fund, you can definitely build it. You can create an emergency fund with a small amount of money. There is no restriction on this, but you should pay attention to your source of income to sustain your investment for a long time. Because the better your source of income is, the more opportunities you will have to continue your Bitcoin investment.
The emergency fund is formed so that your investment is risk-free in the future, because you should remember that you are investing in Bitcoin for at least eight to ten years in the future. That is why we need to pay attention to all things.

How great our portfolio will look like or our investment, doesn't only depends on our source of income but rather it also depends on our expenses because even though we have a great source of income ( huge source of income) and the expenses to handle is not small or little there is no way our portfolio or our investment will be great because our discretionary will be very small after taking care of those expenses but if our source of income is huge and our expenses is little our discretionary income will increase and this will affect our investment positively.

The mistake you made is thinking that Income vs expenses is the only factor to consider when determining the size of folks portfolio in the long run... Understand this that Bitcoin will always be a long term investment and so even if a person doesn't have a good source of income, he can always get to figure it out /or change that as they go on... And so when determining how a person portfolio will look like in years a lot of factors are to be considered, some of which includes numbers of years that folks dedicate to accumulation, their  level of patience/or conviction, level of consistency, the presence of backup/or emergency funds etc...And mind you, one can still build up something good for themselves if they are very consistent/ or committed with that small amounts...


Though a person with large amount of discretionary income may find it very easy to accumulate more at shorter timeframe... But however, if such a person is yet to build is conviction, he surely may have a large amount of Discretionary income yet still find it very difficult to make use of large amount for his investment....

[Merit.s]

The mistake you made is thinking that Income vs expenses is the only factor to consider when determining the size of folks portfolio in the long run... Understand this that Bitcoin will always be a long term investment and so even if a person doesn't have a good source of income, he can always get to figure it out /or change that as they go on... And so when determining how a person portfolio will look like in years a lot of factors are to be considered, some of which includes numbers of years that folks dedicate to accumulation, their  level of patience/or conviction, level of consistency, the presence of backup/or emergency funds etc...And mind you, one can still build up something good for themselves if they are very consistent/ or committed with that small amounts...


Though a person with large amount of discretionary income may find it very easy to accumulate more at shorter timeframe... But however, if such a person is yet to build is conviction, he surely may have a large amount of Discretionary income yet still find it very difficult to make use of large amount for his investment....

I believe that the strategy the investor implore can also determine his portfolio size in the long run. This is because an investor that is using only DCA strategy to accumulate bitcoin will take more time to reach his bitcoin target compared to an investor who is mixing all three strategies. Buying aggressively, when you can will also help increase your bitcoin stash in the long run.

Some investors don't know when they can buy aggressively even when they have the discretionary income in their possession because they feel that is not necessary.

[landheer]

People who want to invest long-term don't necessarily have to use DCA when accumulating BTC. There are many strategies for buying BTC, whether lump sum DCA or other methods. In my opinion, it depends on our own preferences. If you have a long-term investment goal, the most important thing is to be strong enough to hold BTC. When it comes to buying BTC, I think any technique is fine. However, the unique thing about buying using the DCA technique is that we won't focus on buying when there's a dip, but rather on routine purchases, such as once a week, and so on, and of course, using discretionary income

In my opinion, beginners don't always have to use the DCA technique. The most important thing is our goal: whether to invest long-term in btc or trade. For long-term investments, the DCA technique is widely used. It's not just beginners, but also experienced BTC investors who often use it. The result is that in the future, we gain profits because BTC always rises in price and always creates new ATHs. So the longer you hold btc, the greater the profit.

[MusaPk]

How great our portfolio will look like or our investment, doesn't only depends on our source of income but rather it also depends on our expenses because even though we have a great source of income ( huge source of income) and the expenses to handle is not small or little there is no way our portfolio or our investment will be great because our discretionary will be very small after taking care of those expenses but if our source of income is huge and our expenses is little our discretionary income will increase and this will affect our investment positively.

That is why it comes very handy to segregate your essential expenditures from non-essential ones. We have to understand that spending money on latest iPhone 17 pro max is a non-essential expenditure which can easily be avoided and that money can be invested in Bitcoin to increase our profit in the long run. If you have a list of expenditures that is mixture of essential and non-essential spending's then at the end of the day you will save a very small amount of money for investing in Bitcoin. If you have room to increase the amount of money that goes into Bitcoin by cutting spending's on unnecessary things then why not increase it.

[cxtreenal]

How great our portfolio will look like or our investment, doesn't only depends on our source of income but rather it also depends on our expenses because even though we have a great source of income ( huge source of income) and the expenses to handle is not small or little there is no way our portfolio or our investment will be great because our discretionary will be very small after taking care of those expenses but if our source of income is huge and our expenses is little our discretionary income will increase and this will affect our investment positively.

That is why it comes very handy to segregate your essential expenditures from non-essential ones. We have to understand that spending money on latest iPhone 17 pro max is a non-essential expenditure which can easily be avoided and that money can be invested in Bitcoin to increase our profit in the long run. If you have a list of expenditures that is mixture of essential and non-essential spending's then at the end of the day you will save a very small amount of money for investing in Bitcoin. If you have room to increase the amount of money that goes into Bitcoin by cutting spending's on unnecessary things then why not increase it.

Whenever you make a connection between your current income and the future, it must be according to a plan. Even if your income is low, it is possible to improve your financial situation with proper and disciplined financial planning.

Gradually, your income needs to be adjusted to the increase in the price of each item. Separate your discretionary income from your total income and allocate a certain percentage to Bitcoin accumulation from discretionary income and maintain a long term plan. I think that setting an expense budget in line with the income of each investor. Set a strategy to reduce the expansion policy of additional expenses because set a separate financial management. The strategy of implementing other expense reduction policies by giving importance to basic and mandatory needs is equivalent to good future forecasting.

[TokenTikas]

In my opinion, beginners don't always have to use the DCA technique.

But from my own view, using the DCA strategy is the best way for beginners because new people don’t really understand the market situation well. So after entering the market, if they can learn a bit about bitcoin, it is better to start by investing in bitcoin through DCA. At the same time, while investing with DCA, if they keep learning about the market and also understand bitcoin properly then that will be the best approach.

[Ngozi26]

I am still suggesting to build your back  up funds from whereever you are at and not creating an extra expectation that you should have more back up funds than you have, so you figure out how much you are going to put into bitcoin and how much you are going to put into back up funds at the same time, and build from where you are at... There is not an extra priority given to back up funds, even though guys still have to figure out their own comfort level in terms of how much to put into each... So a guy starting out with absolutely no back up funds will be in a more delicate situation as compared with a guy who might already have two weeks of his expenses in some kind of a reasonable back up fund... The guy with two weeks of expenses already saved up might not have to dedicate 50/50 to bitcoin and to back up funds, and maybe he decides to put 80% of his then existing discretionary funds (presumptively from his income) into bitcoin and 20% into back up funds.

Sir, I have already created a backup fund. I can keep less in the backup fund than in the investment and I have allocated more money for the investment. Because the backup fund is for expenses and the investment is for the purpose of profit. Just as the budget for the investment needs to be made in advance, it is also necessary to determine in advance how much to deposit in the backup fund. As you said, 80% investment 20% backup fund. I like the idea and it seems very reasonable.

Let's start with your basic needs, and if you are calculating that correctly, then you have $200 remaining for your monthly discretionary funds.  One of the reasons I suggest that you might not be calculating them correctly is that there is a difference between needs and wants, so you may well be including discretionary consumption into your "basic needs."  That is for you to figure out, and part of the reason that I suggest that guys divide their discretionary funds into three categories is so that they account for their discretionary consumption, which nearly everyone should have, unless they happen to be a hermit and/or living the life of a hermit.. which most normal people do not want to live the life of a hermit, and we should not have to live the life of a hermit in order to invest into bitcoin.

In other words, you are using only two of the categories, $100 for investing and $100 for savings (back up funds).  Savings/back up funds is the same thing, even though you might label them as having different priorities, so some guys might have emergency funds that they cannot touch absent some kind of an emergency, and they might have reserve funds that have more flexibility in terms of how you might use them.. but they are all forms of back up funds, and it is up to you what level of priority you give to them and how much you might want to or be able to stop yourself from tapping into them as you are building them up, presumptively.

If you have $100 per month into each category (investing/saving) then you could divide that into weekly if you want which would be about $23 weekly (since on average each month has 4.33 weeks).

Of course, you can start with certain amounts that you had figured out to be $200 per month and then see how it goes from how you divide it and how it might be building up with time, yet from your description, you may well need to better sort out your expenses (which you described as $400 per month) to determine which ones of those expenses are actually basic and which ones are discretionary (which ones are your needs, versus your wants).

Practice will help you, especially if you can continue to both take action and to keep track and to make adjustments to make it more comfortable for you... and of course, investing into bitcoin takes money away from your consumption, yet if you keep track you might consider it to be a good way of using your money.. and of course, you have to ultimately be comfortable with how much you are stacking away each week or whatever period you end up buying bitcoin with your funds.

I understand the matter more clearly. Now it seems to me that it is necessary to deposit in the optional fund as well. You have given many beautiful suggestions and talked about weekly investments. I will try to reduce my basic expenses, I will deposit $20 in the optional fund. However, I think it would be better to add something more to the investment fund and invest weekly. And the amount of investment in Bitcoin can be increased a little. I have thought a lot about one thing and have seen that the price of Bitcoin creates new ATH in every cycle and increases much more than the previous ATH. The price of Bitcoin is now 66k or 67k thousand. The highest ATH of the last cycle was 126k. If Bitcoin creates the highest ATH in the next cycle, then it will be almost double the current price, so I hope that our profit will be at least double.

[ejikeme24]

I agree with you to say that guys can still start their bitcoin investment with zero back up funds rather they should not wait for a long time before building their back up funds, I started my bitcoin investment with zero back up funds and that is because my discretionary income was low so it won't be enough for me to build my back up funds and that of my bitcoin investment so I decided to focus on building my portfolio then after a short time I started building my back up funds, but there's nothing good as having a backup funds before getting started because for the fact that I started with zero back up funds doesn't mean other people can try it and it works because no one can predict when emergency will happen.

You cannot start with zero back up funds - since otherwise if you make a mistake that involves a basic and necessary expense needing to be paid prior to your next check coming in, then if having no money until your next paycheck you have to tap into your bitcoin .  Maybe you should give an example of what you mean.. because you have to have enough to pay for your expenses otherwise you have to tap into your bitcoin?

I know you're a bit skeptical when I Said that I started my bitcoin investment with zero back up funds, and yeah starting our Bitcoin investment with zero back up funds can be very risky especially those with bigger responsibility like family. But in my own case I don't have a lot of expenses to take care of, and as a matter of fact I'm still single so there are some certain expenses that might seems irrelevant for the main time so then I will just decide to skip them so to enable me have enough discretionary income after taking care of the major expenses. There's one thing I forgot to add in my previous comment, and the things is that I don't go all-in I do reserve some portion of my discretionary income just should Incase... Since my payment will be coming next weekend, then I believe the little leftover I have will serve until my next pay day.

[As-Soon-As]

In my opinion, beginners don't always have to use the DCA technique.

But from my own view, using the DCA strategy is the best way for beginners because new people don’t really understand the market situation well. So after entering the market, if they can learn a bit about bitcoin, it is better to start by investing in bitcoin through DCA. At the same time, while investing with DCA, if they keep learning about the market and also understand bitcoin properly then that will be the best approach.

A new investor can definitely learn about Bitcoin by coming along with Bitcoin investment. Because if that person follows the DCA method, it will definitely be easier for him to maintain Bitcoin investment. In the current era, using the DCA method is not new but is a suitable strategy for both old and new investors.
The further into the future you invest in Bitcoin, the greater the opportunity to make a profit. Investing in Bitcoin is the best idea in the current position.

[BluebloodCXVI]

DCA is the most used strategy for bitcoin accumulation and the reason why it is so is because it provides a convenient environment for both new and old investors to safely thrive in their bitcoin accumulation journey and even though it is not the only strategy for bitcoin accumulation, it still remains the primary go-to strategy because with DCA you remove the stress of constantly trying to time the market or allowing your emotions control your buying habits, and when you come to think of it,you’ll realize that DCA is in perfect alignment with financial safety and long term growth which is what every investor wants, thank God for DCA.

[Jamestown70]

If you can't figure out what are your essential and non-essential expenditures then it wont be easy to spare money for Bitcoin investment. Its very important to understand that a 10$ and 100$ watch both will tell you same time and its better not to invest on such luxury items but to save money and invest in an asset that increases its value over time i.e. Bitcoin. In case you have a huge list of items on which you have to spend money then how can your discretionary income be used for Bitcoin investment? Cut down your expenditures on non-essential items like I mentioned and that will help you in investing in Bitcoin.

Yeah I totally agree with you, but there are folk who don’t want to cut down their unnecessary spending or are not willing to sacrifice fund meant for non-essential expenditures, these type of persons, if they can get other source of income aside their monthly or weekly income, for instance, if folk have skills that they can capitalize on. But if they don’t have any other source of income except the monthly or weekly pay job, then folk have no option but to cut down non-essential expenditures to enable a visible growth in their Bitcoin Portfolio.

[Zanab247]

In my opinion, beginners don't always have to use the DCA technique.

But from my own view, using the DCA strategy is the best way for beginners because new people don’t really understand the market situation well. So after entering the market, if they can learn a bit about bitcoin, it is better to start by investing in bitcoin through DCA. At the same time, while investing with DCA, if they keep learning about the market and also understand bitcoin properly then that will be the best approach.

Best to those who have money, because you need to save plenty of money before going into DCA strategy. Using the strategy to accumulate BTC is good but you must keep your seed phrases safe, because if your wife or children find the seeds phrase you will regret, because they have the right to have way to your BTC anytime or any day.

There is a way you will impact a newbie they will be happy for using this strategy to accumulate BTC, because it hard for those people using this method to accumulate BTC to loss. You will not see them selling BTC when the price is low, because they have pay the price to hodl BTC for long years before they can sell.

[Proty]

In my opinion, beginners don't always have to use the DCA technique.

But from my own view, using the DCA strategy is the best way for beginners because new people don’t really understand the market situation well. So after entering the market, if they can learn a bit about bitcoin, it is better to start by investing in bitcoin through DCA. At the same time, while investing with DCA, if they keep learning about the market and also understand bitcoin properly then that will be the best approach.

Best to those who have money, because you need to save plenty of money before going into DCA strategy. Using the strategy to accumulate BTC is good but you must keep your seed phrases safe, because if your wife or children find the seeds phrase you will regret, because they have the right to have way to your BTC anytime or any day.

There is a way you will impact a newbie they will be happy for using this strategy to accumulate BTC, because it hard for those people using this method to accumulate BTC to loss. You will not see them selling BTC when the price is low, because they have pay the price to hodl BTC for long years before they can sell.

This is very wrong, who told you that you need to save plenty of money before you can start using DCA strategy. With the DCA strategy you don't need to have or save plenty of money before you start using the DCA strategy. Infact with the DCA strategy you can start accumulating bitcoin using any amount even as low as $10 provided is your discretionionary income. The DCA strategy doesn't require large sums of money like the lump sum strategy. You are to DCA based on your available discretionionary income.

[MusaPk]

Whenever you make a connection between your current income and the future, it must be according to a plan. Even if your income is low, it is possible to improve your financial situation with proper and disciplined financial planning.

Gradually, your income needs to be adjusted to the increase in the price of each item. Separate your discretionary income from your total income and allocate a certain percentage to Bitcoin accumulation from discretionary income and maintain a long term plan. I think that setting an expense budget in line with the income of each investor. Set a strategy to reduce the expansion policy of additional expenses because set a separate financial management. The strategy of implementing other expense reduction policies by giving importance to basic and mandatory needs is equivalent to good future forecasting.

Those who have low income must plan how they can improve there finical condition in coming future. The Bitcoin is best choice for everyone who is planning to improve his financial condition in future. If you have low income then you need to cut down your non-essential expenditures like buying expensive watches and invest regularly in Bitcoin. If you maintain momentum of investing in Bitcoin then after 4 years or more you can see your portfolio in good condition.

Its your personal responsibility that you have to figure our how you can spare money for Bitcoin. If you have a long list of expenses then how can you even spare money for your emergency funds?