Does the DCA strategy inspire newbies to invest?

[MusaPk]

Agreed, the DCA method is very useful and flexible and can be used by anyone and at any time. The most important thing about this strategy is the ability to manage discretionary income and not be disturbed by market fluctuations. DCA can help reduce risk, but financial management and self-discipline are also more important. Discretionary income can help reduce stress, make better investment decisions, and reduce panic during market downturns that can lead to selling at the wrong time, but this financial resource must also be used wisely.

DCA can help you in reducing the risk involved in Bitcoin investment. Bitcoin investment has its own risks and we have to manage these risks. Like if you have a capital and you invest all that capital in Bitcoin in last October when Bitcoin price was at 120,000$ then your invested money will still be at loss but if you invest that capital through DCA strategy then you can have a reasonable average buying price. Why discretionary income is better is because it lets you hold your Bitcoin for long duration like 4 years or more. The key to success in Bitcoin investment is that you have to invest and hold that for long duration.      

[abaeze]

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.

DCA is an investment strategy through which everyone, new or old, can invest. It is certainly more important for beginners. DCA is a strategy for investing gradually and gradually, where the risk is low. Through DCA, investments can be made every month or week. Investing in Bitcoin through DCA reduces the mental stress of a person and also reduces the risk level. And DCA is not only important for beginners, it is important for everyone, new or old.

The DCA method is not mostly important for a particular set of people but rather it is very important to everyone because someone who has been investing before using the lump sum when he has enough can still come back to using the DCA method if he doesn't have enough anymore so it is very important to everyone and the DCA method is not actually what reduce stress in accumulation of Bitcoin but rather the ability to use your discrestionary income because if you don't use your discrestionary income to accumulate, you will panic and sell even if you are using the DCA method.

You are right, I agreed, because DCA is a good strategy, but it alone is not enough.
The real issue is money management and mindset. If the investment is done with discretionary income, then it is possible to manage the investment according to the long-term plan without pressure. But if there is no discretionary income, then no investment strategy will work due to lack of money. Danger can come but it is important to have a plan accordingly.

[Zanab247]

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.

I was also surprised like you when I saw the first line of his post because the idea of saving a large amount of money before maintaining DCA sounds unrealistic to me. One of the best ways to invest is by maintaining DCA and there is no real need to focus on building big savings before starting it. The bitcoin you are investing through DCA can already be seen as a form of saving on its own.

Saving money before investing is your choice, but using what you can afford to lose in BTC is what other old investors will encourage newbies to use when accumulating BTC, because anything may happen that will make you to Still have money to reinvest. If you don't have big amount you can use small to see what it will turn out to in the future. I have seen many governments workers who is using their salary to accumulate BTC and they are doing perfectly well.

Never you use what you can't afford to lose in BTC investment, because you are not 100% sure that you will earn exactly the amount of money you want to earn, because the price may not reach when it will lead you to earn profit.

[Churchillvv]

You are right, I agreed, because DCA is a good strategy, but it alone is not enough.
The real issue is money management and mindset. If the investment is done with discretionary income, then it is possible to manage the investment according to the long-term plan without pressure. But if there is no discretionary income, then no investment strategy will work due to lack of money. Danger can come but it is important to have a plan accordingly.

Perharps you are getting it quiet wrong, a strategy could work, whether it’s DCA or any of the three strategies but however one or any individual might face a level of problem which are also under probability but this problems are usually common, perhaps if one is able to do an investment without the investment coming from the discretionary income the tendency that such investments will not last is very high however. There is also a tendency or risk that one may fall into emergency of any kind and be tempted to touch the investment to solve the problem which is why the need to have your emergency funds and then investment from your discretionary income is as important as the investment itself, you can find something similar like I said in the words of JayJuanGee in one of this threads like buy the dips and hodl, where he often stress the need for emergency funds and investing solely from discretionary income alone.

[JayJuanGee]

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

Sure.  A steady income is preferred, but a steady income is not necessary to get started or even to continue to invest whenever discretionary funds are sufficiently available.

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.

Sure there can be people who come to bitcoin who already have a practice of keeping a certain amount of extra cash for any extra expenses that might come up between their pay periods.. .. yet at the same time, with bitcoin, there may well be need to build up the back up funds greater than they had been previously in order to protect oneself from being tempted to tap into the bitcoin holdings at a time that is not completely of one's own choosing, since especially if you are thinking about investment rather than trading, then you may well develop an investment timeline that is 4-10 years or longer, and I personally consider timelines of less than 4 years to be trading.. and from my point of view, even having investment timelines of less than 10 years may well be considered trading, unless you might have some age or health consideration that might not allow you to plan for more than 10 years into the future.

Generally, I consider building up bitcoin and back up funds at a similar pace to be a good default approach, until maybe the back up funds and the amount put into bitcoin equal right around 3 months of the expenses, then after that the bitcoin could be grown faster.. but yeah, guys can do what they like in terms of figuring out how much back up funds they think they need in order to not be tapping into their bitcoin investment too soon.

When I mentioned 80/20, I was talking about holding back no more than 20% for potentially buying dips, even though I tend to think that ongoing DCA is better, but there may be some guys who want to hold back for buying dips that may or may not end up happening.

Another problem with holding back for the dip, is that it can potentially put guys into a waiting mindset rather than an ongoing acting mindset so it might not be a good idea for guys in their first cycle (4-ish years) of building up their bitcoin holdings.

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.

You sound like a trader rather than an investor, and surely if you can figure out some ways to build up your bitcoin holdings, it seems a bit pathetic to be fucking around with 2x, 5x or even 10x profits if you are gong to be selling bitcoin and getting into dollars rather than making sure that you buiild up enough holdings so that you don't have to panick about trying to trade, but instead holding onto bitcoin for life... but yeah, in the end you can do what you like.

Think about guys who started investing $50 per week into bitcoin 10 years ago, then maybe over the past 10-ish years, they might have had invested around $27k and accumulated close to 7.7 BTC, so then perhaps they might be starting to get close to a point in which they might be able to quit their job and to live off of their bitcoin...

It seems that bitcoin is amongst the best, if not the best, place a guy can put value and that value building could end up getting screwed up for guys who ended up selling too much bitcoin too soon.. but sure, guys can do what they like and continue to make the same mistakes that guys had done historically... stopping their ongoing accumulation and selling too much bitcoin too soon.

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.

It works until it doesn't work... and yeah, it is up to you regarding how much back up funds you need to keep and how much you need to continue to build such back up funds.  As long as you don't end up completely wrecking yourself, then maybe it is o.k, yet sometimes when we are in the process of ongoingly managing our income and expenses, we may find that there are times that we need to have access to cash, and we don't want to sell our bitcoin... and we will learn that having more cash cushion will end up creating way less stress for ourselves.

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.

I was also surprised like you when I saw the first line of his post because the idea of saving a large amount of money before maintaining DCA sounds unrealistic to me. One of the best ways to invest is by maintaining DCA and there is no real need to focus on building big savings before starting it. The bitcoin you are investing through DCA can already be seen as a form of saving on its own.

I think what he's actually trying to say is that we need a steady cash flow to enable us maintain the regular buying of bitcoin using the DCA, if that's the case then I think he might be right about that because the DCA method can not move smoothly unless there's a steady cash flow. I know of an Investor who Invest with the DCA method but doesn't have a steady cash flow so after exhausting the Money he has in his discretionary funds then he paused his Investment, he's currently looking for a way to build his discretionary funds again to continue his bitcoin investment, then I realized how important it's to have a steady cash flow while accumulating bitcoin because it makes the accumulation process to go smoothly.

You don't need steady cashflow before starting.  All you need are discretionary funds. 

Sure, if you have steady cashflow that is probably better to have than not have, but it is not necessary to have steady cashflow before getting started investing in bitcoin.

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.

I was also surprised like you when I saw the first line of his post because the idea of saving a large amount of money before maintaining DCA sounds unrealistic to me. One of the best ways to invest is by maintaining DCA and there is no real need to focus on building big savings before starting it. The bitcoin you are investing through DCA can already be seen as a form of saving on its own.

It is not compulsory like he said it. But I don't think it is entirely impossible or unrealistic and I will give an example to it. If I have a bulk money I made maybe due to the dividends of a good investment I made over the couple of years ago and for one reason or the other I felt like reinvesting it to my portfolio, I wouldnt say I will still go ahead with the DCA approach. I would rather just make my investment in lumps then if I wish, I can then subsequently continue to reinvest using the DCA approach.

Now, this brings me to this question, I have been trying to ask this question. If I'm investing in DCA or Lumpsum into my portfolio, does it mean I have no option or room to be taking some percentages made from my proceeds during the course of investment?

From your description, you seem to be trading and not investing.

I don't recommend trading bitcoin, and also this thread is not about trading.. it is about investing.

It is not compulsory like he said it. But I don't think it is entirely impossible or unrealistic and I will give an example to it. If I have a bulk money I made maybe due to the dividends of a good investment I made over the couple of years ago and for one reason or the other I felt like reinvesting it to my portfolio, I wouldnt say I will still go ahead with the DCA approach. I would rather just make my investment in lumps then if I wish, I can then subsequently continue to reinvest using the DCA approach.

Now, this brings me to this question, I have been trying to ask this question. If I'm investing in DCA or Lumpsum into my portfolio, does it mean I have no option or room to be taking some percentages made from my proceeds during the course of investment?

Being a long-term investor does not mean you are forbidden from taking profits when the coast is clear, long term Investment strategy is not a one-size-fits-all scheme so I believe it depends on an individual’s goals, risk tolerance, and level of discipline.A pure HODL strategy which means never selling is valid no doubt, but looking at it from another realistic angle, hybrid strategy which means holding for long-term while still taking partial profits is also valid, you can’t control what people do with their investments and taking profits occasionally when the need arises does not automatically make someone a trader, the only time you can call someone a trader is when they are consistently focused on short-term market movements rather than occasional, strategic profit-taking. So If an investor Keeps a long-term core position ,takes only a small percentage as profit, follows a clear plan and doesn’t operate with emotions, then they can still be referred to as investors ,they only decided to apply a hybrid approach to it which I don’t believe is a crime.

Taking profits does make a person a trader, and we are not talking about trading in this thread.

Also it seems that you don't understand the difference between trading and investing.

[B-BossMan]

It is not compulsory like he said it. But I don't think it is entirely impossible or unrealistic and I will give an example to it. If I have a bulk money I made maybe due to the dividends of a good investment I made over the couple of years ago and for one reason or the other I felt like reinvesting it to my portfolio, I wouldnt say I will still go ahead with the DCA approach. I would rather just make my investment in lumps then if I wish, I can then subsequently continue to reinvest using the DCA approach.

Now, this brings me to this question, I have been trying to ask this question. If I'm investing in DCA or Lumpsum into my portfolio, does it mean I have no option or room to be taking some percentages made from my proceeds during the course of investment?

you can’t control what people do with their investments and taking profits occasionally when the need arises does not automatically make someone a trader, the only time you can call someone a trader is when they are consistently focused on short-term market movements rather than occasional, strategic profit-taking. So If an investor Keeps a long-term core position ,takes only a small percentage as profit, follows a clear plan and doesn’t operate with emotions, then they can still be referred to as investors ,they only decided to apply a hybrid approach to it which I don’t believe is a crime.

Can you please stop confusing people expecially the newbies, trading is far different from bitcoin investment and I see trading as gambling. Well Dollar cost Average will still remains the safest and an effective bitcoin investment strategies, DCA strategy help one to invest a fixed amount of money regularly, in respective of the Bitcoin price, it actually move one away from tension of emotional decisions making and also do away with the impact of volatility and encourages investors and the newbies to build up thier long-term bitcoin investment solidly over a periods time.

However investing your funds into bitcoin is actually a long-term focus and it requires much patience, due to its strong values in the future, one should be accumulating and holding it for long-term period, so instead of focusing on something that has to do with market timing which is very difficult to do consistently even for an experienced ones, it's better to focused on steady accumulation of bitcoin through Dollar Cost Average and holding it for long-term and avoid mixing a signals that may misleading others/newbies rather.

[Qhunman]

DCA can help you in reducing the risk involved in Bitcoin investment. Bitcoin investment has its own risks and we have to manage these risks. Like if you have a capital and you invest all that capital in Bitcoin in last October when Bitcoin price was at 120,000$ then your invested money will still be at loss but if you invest that capital through DCA strategy then you can have a reasonable average buying price. Why discretionary income is better is because it lets you hold your Bitcoin for long duration like 4 years or more. The key to success in Bitcoin investment is that you have to invest and hold that for long duration.      

I'm not comfortable with the term capital because if we look at the definition,it is not the same with discretional income.  your capital is money you can't afford to lose and by investing it in bitcoin you are gambling with your bitcoin investment. However using your capital instead of your discretionary income could tempt you to sell your bitcoin investment if the market is not favorable or going as planned. it is not a good idea to invest with your capital because you might not be able to hold for the long-term instead using your discretionary income is preferable since it is money you can afford to lose.

[Female King]

Agreed, the DCA method is very useful and flexible and can be used by anyone and at any time. The most important thing about this strategy is the ability to manage discretionary income and not be disturbed by market fluctuations. DCA can help reduce risk, but financial management and self-discipline are also more important. Discretionary income can help reduce stress, make better investment decisions, and reduce panic during market downturns that can lead to selling at the wrong time, but this financial resource must also be used wisely.

DCA can help you in reducing the risk involved in Bitcoin investment. Bitcoin investment has its own risks and we have to manage these risks. Like if you have a capital and you invest all that capital in Bitcoin in last October when Bitcoin price was at 120,000$ then your invested money will still be at loss but if you invest that capital through DCA strategy then you can have a reasonable average buying price. Why discretionary income is better is because it lets you hold your Bitcoin for long duration like 4 years or more. The key to success in Bitcoin investment is that you have to invest and hold that for long duration.      

This is the reason why gamblers are losing money in bitcoin investment if you are not hodling bitcoin for long you will be losing if you buy around $120 and your plan is not to hold for long maybe you just wanted the price to increase to $130 to sell and the price drop to $100 such trader will panic and sell in lost, but an investor holding long wouldn't panic and sell because he is still buying bitcoin when it drop he can even buy more because he has a long term plan so it's always good to invest with discretionary income and hodl for long.

[Humblevirus]

It is not compulsory like he said it. But I don't think it is entirely impossible or unrealistic and I will give an example to it. If I have a bulk money I made maybe due to the dividends of a good investment I made over the couple of years ago and for one reason or the other I felt like reinvesting it to my portfolio, I wouldnt say I will still go ahead with the DCA approach. I would rather just make my investment in lumps then if I wish, I can then subsequently continue to reinvest using the DCA approach.

Now, this brings me to this question, I have been trying to ask this question. If I'm investing in DCA or Lumpsum into my portfolio, does it mean I have no option or room to be taking some percentages made from my proceeds during the course of investment?

you can’t control what people do with their investments and taking profits occasionally when the need arises does not automatically make someone a trader, the only time you can call someone a trader is when they are consistently focused on short-term market movements rather than occasional, strategic profit-taking. So If an investor Keeps a long-term core position ,takes only a small percentage as profit, follows a clear plan and doesn’t operate with emotions, then they can still be referred to as investors ,they only decided to apply a hybrid approach to it which I don’t believe is a crime.

Advising people not to take profits from their Bitcoin investment regularly, especially newbies who have just started accumulating, doesn’t mean that they are trying to control those people,it just advice so they can have a smooth accumulation process and not be distracted by profits from time to time.I don’t even see a reason why someone who is accumulating Bitcoin using the DCA method would still be chasing profits when they have not been able to accumulate enough Bitcoin. Their target should always be how to keep accumulating so they can reach their target level.I know that no matter how much someone focuses on profit, it will not end well for such a person in trading, because they may buy today and want to sell tomorrow as soon as the price rises a little bit. From there, they will start trying to time the market and will always want to buy low and sell at a higher price within a short period.

[DubemIfedigbo001]

Being a long-term investor does not mean you are forbidden from taking profits when the coast is clear, long term Investment strategy is not a one-size-fits-all scheme so I believe it depends on an individual’s goals, risk tolerance, and level of discipline.A pure HODL strategy which means never selling is valid no doubt, but looking at it from another realistic angle, hybrid strategy which means holding for long-term while still taking partial profits is also valid, you can’t control what people do with their investments and taking profits occasionally when the need arises does not automatically make someone a trader, the only time you can call someone a trader is when they are consistently focused on short-term market movements rather than occasional, strategic profit-taking. So If an investor Keeps a long-term core position ,takes only a small percentage as profit, follows a clear plan and doesn’t operate with emotions, then they can still be referred to as investors ,they only decided to apply a hybrid approach to it which I don’t believe is a crime.

Taking profits does make a person a trader, and we are not talking about trading in this thread.

Also it seems that you don't understand the difference between trading and investing.

I believe people should understand that even while investing into bitcoin, some practices they employ defeats the purpose of such investment prospects. Tampering with your portfolio for profits when you're still very much in your accumulation journey would be dragging your progress backwards and you would be recording very little to no progress in your accumulation journey, so it is not advised.

It also builds a negative attitude towards your investment and you may start with just taking small profits and progress to taking much from it until you've depleted your portfolio and ruined your investment journey, so it is best not to even take profits at all.

If the amount you're putting into buying bitcoin is not comfortable for you, then you can reduce it to what you can afford to invest periodically until your finances receives a boost so that you would not be tempted to take profits from your portfolio, and be sure you're investing only from your discretionary income, else you are gambling with your portfolio rather than investing.

[Sticky Bomb]

DCA can help you in reducing the risk involved in Bitcoin investment. Bitcoin investment has its own risks and we have to manage these risks.

DCA helps you eliminate the pressure of having to invest large discretionary income into bitcoin at once by allowing you to buy with any amount from your discretionary income, over a long period of time, hence you must not buy 1BTC at once, but can invest even if it is $100 weekly consistently over a longer period of time and still stand a chance of meeting your target of same 1BTC, and the best part is that you don't feel the financial pressure you would've been through if you were to buy it all at once.

Like if you have a capital and you invest all that capital in Bitcoin in last October when Bitcoin price was at 120,000$ then your invested money will still be at loss but if you invest that capital through DCA strategy then you can have a reasonable average buying price.

You are thinking of short-term and it is not a good thought process for an investor, if such an investor had planned to hold for long, then they would be in a good position in the future if bitcoin continues doing well. if such an investor lump summed in October and followed up his investment journey with regular DCA and would not sell in a short-term, then he is still in a good practice since he is still adding to his stash and getting closer to his accumulation target.

[Kelward]

DCA can help you in reducing the risk involved in Bitcoin investment. Bitcoin investment has its own risks and we have to manage these risks. Like if you have a capital and you invest all that capital in Bitcoin in last October when Bitcoin price was at 120,000$ then your invested money will still be at loss but if you invest that capital through DCA strategy then you can have a reasonable average buying price. Why discretionary income is better is because it lets you hold your Bitcoin for long duration like 4 years or more. The key to success in Bitcoin investment is that you have to invest and hold that for long duration.      

I'm not comfortable with the term capital because if we look at the definition,it is not the same with discretional income.  your capital is money you can't afford to lose and by investing it in bitcoin you are gambling with your bitcoin investment. However using your capital instead of your discretionary income could tempt you to sell your bitcoin investment if the market is not favorable or going as planned. it is not a good idea to invest with your capital because you might not be able to hold for the long-term instead using your discretionary income is preferable since it is money you can afford to lose.

DCA is no doubt the best strategy to accumulate and hold Bitcoin for the long term and from your discretionary funds is the best place to take money from to buy Bitcoin so you cannot separate DCA and discretionary funds if you want to succeed in long term accumulation. You have to understand financial management to know that what you earn in a month or week is your total salary or capital for the week or month and you are supposed to have a budget for expenses. What remains after taking care of your basic needs is your discretionary fund, it is from where you get your emergency funds, Bitcoin accumulation funds and other wants that are not basic. If you don't have a strategic plan for long term accumulation you will fail in no time, basically you should buy Bitcoin with amount that won't mind to loose.

[sotelorene]

DCA can help you in reducing the risk involved in Bitcoin investment. Bitcoin investment has its own risks and we have to manage these risks. Like if you have a capital and you invest all that capital in Bitcoin in last October when Bitcoin price was at 120,000$ then your invested money will still be at loss but if you invest that capital through DCA strategy then you can have a reasonable average buying price. Why discretionary income is better is because it lets you hold your Bitcoin for long duration like 4 years or more. The key to success in Bitcoin investment is that you have to invest and hold that for long duration.      

I'm not comfortable with the term capital because if we look at the definition,it is not the same with discretional income.  your capital is money you can't afford to lose and by investing it in bitcoin you are gambling with your bitcoin investment. However using your capital instead of your discretionary income could tempt you to sell your bitcoin investment if the market is not favorable or going as planned. it is not a good idea to invest with your capital because you might not be able to hold for the long-term instead using your discretionary income is preferable since it is money you can afford to lose.

Sometimes some people don't know that terminology can really confuse and lead some people into mistake they will regret in their life. Capital is not meant to be used to accumulate Bitcoin, Bitcoin investment is not really like other business you start up with some amount of money ( Capital) and then later when you have grow your business to some extent, you will then pull it out no that is not how Bitcoin investment works. Discretionary income is what we use in our Bitcoin investment and it's actually what we can do without. @MusaPk careful before you lure newbie into trouble

[Gentle_Soul]

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.

I was also surprised like you when I saw the first line of his post because the idea of saving a large amount of money before maintaining DCA sounds unrealistic to me. One of the best ways to invest is by maintaining DCA and there is no real need to focus on building big savings before starting it. The bitcoin you are investing through DCA can already be seen as a form of saving on its own.

The strategy to me is the best especially when you want to make Bitcoin investment a habit it's an habitual way of investing.
DCA strategy focuses where you invest a certain amount over a period of time and not necessarily a hug amount offcourse you can invest as you can afford. It's best done at regular intervals and trust me with this strategy you can end up a seemless investor.

[Obulis]

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.

Waiting to save plenty money before starting to hold Bitcoin through DCA strategy is like waiting for the dip.
Let's say you get a new job that enables you to have discretionary funds, DCA strategy means starting accumulation of Bitcoin immediately no matter how small the amount on weekly, biweekly or monthly basis, that's without having discretionary funds loaded any where.

[AYOBA]

It is not compulsory like he said it. But I don't think it is entirely impossible or unrealistic and I will give an example to it. If I have a bulk money I made maybe due to the dividends of a good investment I made over the couple of years ago and for one reason or the other I felt like reinvesting it to my portfolio, I wouldnt say I will still go ahead with the DCA approach. I would rather just make my investment in lumps then if I wish, I can then subsequently continue to reinvest using the DCA approach.

Now, this brings me to this question, I have been trying to ask this question. If I'm investing in DCA or Lumpsum into my portfolio, does it mean I have no option or room to be taking some percentages made from my proceeds during the course of investment?

you can’t control what people do with their investments and taking profits occasionally when the need arises does not automatically make someone a trader, the only time you can call someone a trader is when they are consistently focused on short-term market movements rather than occasional, strategic profit-taking. So If an investor Keeps a long-term core position ,takes only a small percentage as profit, follows a clear plan and doesn’t operate with emotions, then they can still be referred to as investors ,they only decided to apply a hybrid approach to it which I don’t believe is a crime.

Can you please stop confusing people expecially the newbies, trading is far different from bitcoin investment and I see trading as gambling. Well Dollar cost Average will still remains the safest and an effective bitcoin investment strategies, DCA strategy help one to invest a fixed amount of money regularly, in respective of the Bitcoin price, it actually move one away from tension of emotional decisions making and also do away with the impact of volatility and encourages investors and the newbies to build up thier long-term bitcoin investment solidly over a periods time.

This thread is all about how the investors and newbie’s can be survived in the Bitcoin investments i don’t know why some members are bringing trading into the discussion here this can actually confuse newbie investors, who are only here to learn about the Bitcoin investments and also they can able to hold a Bitcoin for a long periods of time without having any issues with their Bitcoin holding.

The DCA strategies has become one of the best method that help a lots of investors, especially those that have interest to invest in Bitcoin but they don’t have enough capital to start with this DCA method everything has come easier to accumulate a Bitcoin with little amounts of money and turn in to a huge assets in future.

[PhilosopherKing]

DCA strategy help one to invest a fixed amount of money regularly, in respective of the Bitcoin price,

I believe your getting this quiet wrong because dca is not only done with a fixed amount. To DCa people dont have to be forcing the same amount of money every time. People too can ongoingly use dca adaptively and buy when they have the discretionary income and with whatever amount it is.

It is not everyone that have a fixed amount of discretionary income after doing their expenses, not every person income is even steady.  But this people can also use DCa because DCa is a strategy that can adjusted to whatever your income is

[Promocodeudo]

The strategy to me is the best especially when you want to make Bitcoin investment a habit it's an habitual way of investing.
DCA strategy focuses where you invest a certain amount over a period of time and not necessarily a hug amount offcourse you can invest as you can afford. It's best done at regular intervals and trust me with this strategy you can end up a seemless investor.

Making our Bitcoin investment easy for ourselves is the reason why DCA method is adviceable for us to use to accumulate Bitcoin, there many benefits attached to investing in Bitcoin with the use DCA, it makes you not to feel pressured by allowing you to invest with your discreationary income daily, weekly or monthly, to me I will say that the initiation of this idea is the best that has ever happened to Bitcoin investors, with this strategy there shouldn't be any excuse from any intending why the haven't started accumulating Bitcoin because with method, we can go as low as we can even imagine, for me, I think every interested person should be an investor of Bitcoin, that how easy DCA method has made Bitcoin investment to be.

[Bright0515]

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.

There's nothing to be skeptical about here because there are some people who also start Bitcoin investment without any backup funds. The thing there is that some of the people that start Bitcoin investment without any backup funds likely end up selling immediately they had an emergency issues. To me I believe starting Bitcoin investment without any backup funds is more risky, now just imagine what will happen if you don't have anywhere else to get money then emergency happens and you only have your Bitcoin but unfortunately Bitcoin dip below the amount you bought it. The truth is that at that point you have nothing else to do except to sell your Bitcoin at loss to sort out the emergency.

What am trying to say here is that if you had any backup funds you can fall into in case of an emergency, you won't be affected at all. Well based on your post, thing went fine with you while investing without any backup funds, but other investors will definitely panic because they might have a lot of family and monthly expenses to care about. So that's why it's important to have a backup funds before investment. The rate at which some investors have more responsibilities is even one of the reasons why it's a must to have back up founds during Bitcoin investment. Well thank God it worked out well to you even when you have no backup funds (which is not advised).

As a matter of fact, Bitcoin isn't something an investor is supposed to sell all the time, you only sell ones (in 4 - 5 years or more). Running to your Bitcoin portfolio whenever you want or whenever you feel like is a sign of premature investment, which is why an investor should have emergency funds so that they can take from there to sort out bills. As a matter of fact, having a backup funds helps you make a solid decision rather than doing things out of pressures cause you don't have extra money.

If you are investing in Bitcoin with DCA method, you really need to be consistent and to be sincere, having a backup funds will also help you continue buying Bitcoin even when emergency or other expenses shows up.

[Bigjoe33]

It is not compulsory like he said it. But I don't think it is entirely impossible or unrealistic and I will give an example to it. If I have a bulk money I made maybe due to the dividends of a good investment I made over the couple of years ago and for one reason or the other I felt like reinvesting it to my portfolio, I wouldnt say I will still go ahead with the DCA approach. I would rather just make my investment in lumps then if I wish, I can then subsequently continue to reinvest using the DCA approach.

Now, this brings me to this question, I have been trying to ask this question. If I'm investing in DCA or Lumpsum into my portfolio, does it mean I have no option or room to be taking some percentages made from my proceeds during the course of investment?

Being a long-term investor does not mean you are forbidden from taking profits when the coast is clear, long term Investment strategy is not a one-size-fits-all scheme so I believe it depends on an individual’s goals, risk tolerance, and level of discipline.A pure HODL strategy which means never selling is valid no doubt, but looking at it from another realistic angle, hybrid strategy which means holding for long-term while still taking partial profits is also valid, you can’t control what people do with their investments and taking profits occasionally when the need arises does not automatically make someone a trader, the only time you can call someone a trader is when they are consistently focused on short-term market movements rather than occasional, strategic profit-taking. So If an investor Keeps a long-term core position ,takes only a small percentage as profit, follows a clear plan and doesn’t operate with emotions, then they can still be referred to as investors ,they only decided to apply a hybrid approach to it which I don’t believe is a crime.

Taking profits does make a person a trader, and we are not talking about trading in this thread.

Also it seems that you don't understand the difference between trading and investing.

An investor who has come into Bitcoin investment must know that tapping into his investment either onece in a while or so for any reason will always reduce his portfolio and may not let him achieve his investment goal as initially planned, and such behaviors can be likened to trading since the gains are taking off once in a while while still investing, reducing your assets and keeping you slow or far from achieving your investment goals.

One might argue that the reason for pulling off some part of your assets is tangible and worthwhile, but then, it still doesn't change the fact that such practices is greatly reducing your portfolio and keeping you far from accumulating more Bitcoin and reducing your portfolio instead of increasing it. Therefore, every effort should be tailored or geared towards buying and HODLing. That is why the emphasis has always been on carrying out good investment strategies and principles to enable you invest rightly with the right funds, ensuring proper income management and allocation, investing only from your discretionary income, building up your emergency funds and other back up funds alongside to enable you HODL properly and for longer period without panic.