Does the DCA strategy inspire newbies to invest?

[Grease5000]

I agree with you to a certain extent course the DCA(Dollar cost Averaging) gives newbies without much discretionary income the opportunity to buy bitcoin continuously with the little amount they have. It can be on a weekly, monthly basis. It removes the stress of having to perfect time the market and smooth out volatility.
The DCA gives newbies who don't have lot of money but have little to invest the hope that they can also invest in Bitcoin with the little discretionary income they have without having to touch the money meant for other things.

[Jostern]

The DCA strategy is a consistent way of accumulating Bitcoin gradually with as little as your discretionary income either every weeks or months while the lump sum is using huge amount of money to accumulate Bitcoin like for example you can win a lottery big amount and decide to use all or a very big amount of money to accumulate Bitcoin.

You can still use little amounts to lump sum into bitcoin and not necessarily a huge amount, let's say for example you got a bonus from work or you were gifted some money by a friend and decided to put everything into bitcoin, then you just lump summed with the extra funds you received, this doesn't have to affect your consistency in buying and holding bitcoin, it is still very possible to combine the both lump sum and DCA within your buying period if such extra funds surfaced therein.

But why do you want to lump sum with a little amount of money, what then happened to buying through the DCA where you can feel more comfortable, I think that is a wrong choice from someone who is just starting to buy bitcoin, there could be a situation where you have to buy in large quantities when you have enough availability of discretionary income then you can approach the lump sum, but I think it’s more reasonable to lump sum when you have enough discretionary income where you can buy bitcoin in large quantities and buy in bulk, the best thing you can do as a beginner who have a small amount of money is endeavor to approach buying through the DCA techniques which is more sustainable as a beginner.

Honestly speaking I don’t see any reason to why I should combine both DCA and lump sum, when I can just buy bitcoin more comfortably through the DCA, there are individuals who have enough discretionary income they still don’t buy through the lump sum they appreciate buying through the DCA, I’m not saying any techniques is bad, it all depends on your approach.

Personally I prefer buying through the DCA and DCA is the best technique for me comparing all other techniques.

[Joeboy]

Since beginners understand less, it is better to wait to buy at a lower price in the beginning. Buy at a lower price first, but the profit will be higher in the end.

You got registered 5 day ago, that could be the reason why you came up with this.. I understand that your idea of waiting for lower price stemmed out of the need for being very profitable, that why it is recommended that profits shouldn't be in the minds of investors who are still in the process of their accumulation.. And so at this stage it is much more better you adopt the DCA approach and stick with it, instead of chasing after profit.. DCA is highly recommended for newbies coz it prevents waiting and makes folks to accumulate Bitcoin continuously at average prices without having to time the market...

[devouring-DARKNESS]

Since beginners understand less, it is better to wait to buy at a lower price in the beginning. Buy at a lower price first, but the profit will be higher in the end.

So what you are saying is that if I wanted to start investing in bitcoin but bitcoin has just hit an ATH I should not buy yet but with for it to drop first, and you are saying that this is the better decision to make as a newbie who is new in the bitcoin space? You are completely wrong and misguided, waiting is even worse for a nocoiner because they haven't started accumulating bitcoin yet, it will be very easy for them to completely lose interest in accumulating bitcoin if they start waiting from the get go, especially when bitcoin ends up staying on the high side and the price doesn't drop within they period of time, it will be better if you pay more attention to what this thread is about and actually use the DCA if you are accumulating bitcoin, delay won't do you any good, if you already have your discretionary funds then you can absolutely start accumulating bitcoin.

[Futurexxx]

Since beginners understand less, it is better to wait to buy at a lower price in the beginning. Buy at a lower price first, but the profit will be higher in the end.

So what you are saying is that if I wanted to start investing in bitcoin but bitcoin has just hit an ATH I should not buy yet but with for it to drop first, and you are saying that this is the better decision to make as a newbie who is new in the bitcoin space? You are completely wrong and misguided, waiting is even worse for a nocoiner because they haven't started accumulating bitcoin yet, it will be very easy for them to completely lose interest in accumulating bitcoin if they start waiting from the get go, especially when bitcoin ends up staying on the high side and the price doesn't drop within they period of time, it will be better if you pay more attention to what this thread is about and actually use the DCA if you are accumulating bitcoin, delay won't do you any good, if you already have your discretionary funds then you can absolutely start accumulating bitcoin.

What most bitcoin investors have failed to understand about Bitcoin is that it current price is nowhere near the price it might rise up to in the future, so even though it rises to it current all time high at $125k, buying and accumulating it regardless of that is the ideal thing to do because in few years time from now, that price might looks like a dip that may not come again.

Ok let's look at those investors that bought at the previous all time high at $72k and thought that they bought at the top, do you think that they will be regretting their actions of buying then when Bitcoin rose above $100k ? No.
So that is why it's not a wrong decision to buy at anytime because this price now is nowhere near the price it my skyrocket to in the future because Bitcoin is on the rise.

[Merit.s]

Since beginners understand less, it is better to wait to buy at a lower price in the beginning. Buy at a lower price first, but the profit will be higher in the end.

No, it's the opposite. Because you are a beginner with no bitcoin is the main reason why you don't need to wait for the price to get cheaper before buying because you don't even have any experience of the market. A no coiner or a brand new investor should start investing in bitcoin the moment he has his discretionary income available so that, you can learn by experience which is the best way of learning.

Having little knowledge is another reason why he doesn't need to wait for any reason that isn't lack of discretionary income. The more you are buying and learning continuously, the more your knowledge and confidence increases in bitcoin. DCA is a very good strategy for new investore because it gives them the opportunity to buy bitcoin weekly/monthly whenever, there discretionary income is available so that, they can increase their bitcoin stash on a regular basis.

If you're waiting for a cheap price, you will buy only little bitcoin all through your investment time because you will buy once in a while since you are like a confused person waiting clueless at the ball park of when to buy next. A lot of buying opportunities will be missed. Those waiting for the dip will regret in future when bitcoin price is very high and other are making profits you will be sitting on the fence watching.

[MusaPk]

You are not get the point here, you don't understand the difference between dca accumulating strategy and the lump sum accumulation strategy. To the best of my knowledge, dca accumulating strategy is the constant buying and accumulating of Bitcoin either daily, weekly or monthly, depending on the availability of your discretionary income available that period of time, while the lump sum method is  not done at the end of a given timeframe, but it's done based on when a huge discretionary funds is available, not timeframe base.

For example now, someone that is accumulating through a lump sum method might buy twice or more a year base on the availability of a his discretionary funds, but someone buying through the dca accumulating strategy is buying at the end of a given timeframe, because that's suit the time his discretionary income will be available.

Someone who is accumulating Bitcoin for last 4 years or more can take advantage of current dip and can go for lump sum investment provided he has the discretionary income. The lump sum investment is more beneficial if you buy Bitcoin when it was around 65000$ then on 120,000$. This is not the case with DCA, if you are following DCA strategy and buy Bitcoin when it was at 120,000$ and continue buying when price went down to 65000$ then at the end you have a good average buying price. This is why it will be more beneficial if you mix all three strategies i.e. DCA, buy the dip and Lump Sum.   

[BluebloodCXVI]

Someone who is accumulating Bitcoin for last 4 years or more can take advantage of current dip and can go for lump sum investment provided he has the discretionary income. The lump sum investment is more beneficial if you buy Bitcoin when it was around 65000$ then on 120,000$. This is not the case with DCA, if you are following DCA strategy and buy Bitcoin when it was at 120,000$ and continue buying when price went down to 65000$ then at the end you have a good average buying price. This is why it will be more beneficial if you mix all three strategies i.e. DCA, buy the dip and Lump Sum.   

Combining the three strategies you mentioned might sound easy in writing but to practically apply it in reality is not a small feat because It requires good structure and discipline, and not everyone possess these traits, speaking from my little experience, I believe it is better to stick to a simple strategy that best suits your mindset and financial lifestyle because when you keep your strategy simple, it can help you avoid confusion as an investor and it will keep you from making emotional and irrational decisions that can affect your investment negatively.

[Ishicryptic]

Someone who is accumulating Bitcoin for last 4 years or more can take advantage of current dip and can go for lump sum investment provided he has the discretionary income. The lump sum investment is more beneficial if you buy Bitcoin when it was around 65000$ then on 120,000$. This is not the case with DCA, if you are following DCA strategy and buy Bitcoin when it was at 120,000$ and continue buying when price went down to 65000$ then at the end you have a good average buying price. This is why it will be more beneficial if you mix all three strategies i.e. DCA, buy the dip and Lump Sum.   

Combining the three strategies you mentioned might sound easy in writing but to practically apply it in reality is not a small feat because It requires good structure and discipline, and not everyone possess these traits, speaking from my little experience, I believe it is better to stick to a simple strategy that best suits your mindset and financial lifestyle because when you keep your strategy simple, it can help you avoid confusion as an investor and it will keep you from making emotional and irrational decisions that can affect your investment negatively.

Every investors have a choice to use one or more strategies if they have the money, they can also use only one strategy and add another one at there convenience provided they can afford to. There is no rule that says that it can only be one or more than one accumulation strategies, whichever you feel that you are comfortable with is what you will go for.

We all talk about DCA strategy as the best of the three which is true but then there are some investors that have the mindset of traders who are bent on buying at low price, they can hold their funds and wait for dip. There are also some that will hold on until they gather a lump sum before buying which is their own strategy. What stands DCA strategy amongst them is that you don't have to wait for dip or to come into lump sum before buying.

[Sticky Bomb]

Since beginners understand less, it is better to wait to buy at a lower price in the beginning. Buy at a lower price first, but the profit will be higher in the end.

Waiting unnecessarily for the dip is not a good strategy for a beginner, it is more important that such a beginner shows more seriousness in his bitcoin accumulation journey by starting out as soon as he can identify to having discretionary income.

In this thread, we're discussing how DCA would be helpful to a newbie to invest and for a truth DCA is the best shot for a newbie to build out a good portfolio in bitcoin without much stress as long as they have discretionary income. Why wait for low prices when you can start out buying with even little amounts and go for a long-term? Perhaps if the newbie investor has low confidence in bitcoin, he should start out buying with little amounts first with consistency until they have more confidence to increase their buying amounts, at least they would not waste a lot of time sitting idly and waiting for a dip that may not end up coming by.

DCA  remains a good option for newbies if they are serious to build out a good bitcoin portfolio, waiting for the dip would result to timing the market and would see the new investor miss a lot of nice buying opportunities and at worst start off their investment journey with a trader's mindset rather than that of a real investor.

[DubemIfedigbo001]

Someone who is accumulating Bitcoin for last 4 years or more can take advantage of current dip and can go for lump sum investment provided he has the discretionary income. The lump sum investment is more beneficial if you buy Bitcoin when it was around 65000$ then on 120,000$. This is not the case with DCA, if you are following DCA strategy and buy Bitcoin when it was at 120,000$ and continue buying when price went down to 65000$ then at the end you have a good average buying price. This is why it will be more beneficial if you mix all three strategies i.e. DCA, buy the dip and Lump Sum.   

Combining the three strategies you mentioned might sound easy in writing but to practically apply it in reality is not a small feat because It requires good structure and discipline, and not everyone possess these traits, speaking from my little experience, I believe it is better to stick to a simple strategy that best suits your mindset and financial lifestyle because when you keep your strategy simple, it can help you avoid confusion as an investor and it will keep you from making emotional and irrational decisions that can affect your investment negatively.

For a newbie investor, combining the three strategies may end up complicating things for them and giving them unnecessary distraction and investment complexities trying to figure out how to apportion funds to each strategy from their discretionary income. It may well be a better option for them to focus on their consistent periodic buys and not bother about any form of combination until they well advance into their accumulation journey and may have gotten better in their cashflow management practices to attempt such combinations, unless maybe they stumble on an unplanned extra fund from gifts or work bonuses, e.t.c and decided to put all into bitcoin which can be considered a lump sum.

I would encourage that newbies should not try such kind of combinations from their periodic discretionary income in their first buying cycle, so that they must have gotten enough experience to be able to experiment how to effectively combine more strategies at the same time from their discretionary income.

[abaeze]

Every investors have a choice to use one or more strategies if they have the money, they can also use only one strategy and add another one at there convenience provided they can afford to. There is no rule that says that it can only be one or more than one accumulation strategies, whichever you feel that you are comfortable with is what you will go for.

We all talk about DCA strategy as the best of the three which is true but then there are some investors that have the mindset of traders who are bent on buying at low price, they can hold their funds and wait for dip. There are also some that will hold on until they gather a lump sum before buying which is their own strategy. What stands DCA strategy amongst them is that you don't have to wait for dip or to come into lump sum before buying.

Agreed, the biggest advantage of DCA is that you don't have to do market timing. Emotion works less so it is safe and consistent for new investors because most people can't catch the dip at the right time. So DCA is practical for them. On the other hand, what you said is that many people want to buy at a low price, it is right, but the big problem here is that no one is sure when the dip will come. Many times the price doesn't go down anymore so the opportunity is missed. Even if it goes down, you can't buy because you are afraid, thinking that 'the price may go down a little more'. So waiting for the dip creates delay and regret in most cases.

So in my opinion, there is no obligation to stick to one strategy, but the most realistic method is to use a mixed strategy according to your ability, i.e. do 70–80% DCA and buy extra at the remaining 20–30% Dip. In this way, you are always in the market and you can also use the opportunity by buying the dip. So it is the job of a smart investor to mix and use strategies according to your income, risk tolerance and psychology.

[Brizi5000]

Since beginners understand less, it is better to wait to buy at a lower price in the beginning. Buy at a lower price first, but the profit will be higher in the end.

thats a misleading statement mate, its not a good investment idea especially for newbies with little or no bitcoin to their portfolio to wait until the price is low before they start buying and investing in bitcoin because you might end up waiting for years without buying bitcoin because bitcoin is highly volatile and you are not sure of the dip as it may or may not happen. the best thing to do is to buy with the dca method with just a discretionary income which will help you to buy bitcoin at any market price and hodl so you can be building your portfolio to reach your accumulation target or over accumulation. a true investor dont have to time or wait for market drop before buying bitcoin, it is a traders mindset which is a very wrong start for you.

[Popkon6]

I agree with you to a certain extent course the DCA(Dollar cost Averaging) gives newbies without much discretionary income the opportunity to buy bitcoin continuously with the little amount they have. It can be on a weekly, monthly basis. It removes the stress of having to perfect time the market and smooth out volatility.
The DCA gives newbies who don't have lot of money but have little to invest the hope that they can also invest in Bitcoin with the little discretionary income they have without having to touch the money meant for other things.

Those who want to invest in Bitcoin can definitely create opportunities to make videos, they can continue their Bitcoin investment with the few money they have in their hands. There is no need for sufficient money to continue investing in Bitcoin, those who wait for sufficient money are basically the most stupid and are wasting their valuable time.
The time you are wasting now for investing in Bitcoin you will never get in the future, because opportunities do not always exist, so to properly utilize the opportunity, the Bitcoin DCA method is definitely the best. Every opportunity plays a significant role in utilizing it because the DCA method plays the biggest role in investing in Bitcoin this week and this is the main opportunity to grow the portfolio.

[Cleanslate_]

DCA strategy is the simplest method of accumulating bitcoin into your portfolio, it gives you the opportunity of a gradual buying of bitcoin without stress or financial stress either as long as your discretionary income is available, dca does not pressurize you to accumulate more than what you can afford .

[Decimetre]

DCA strategy is the simplest method of accumulating bitcoin into your portfolio, it gives you the opportunity of a gradual buying of bitcoin without stress or financial stress either as long as your discretionary income is available, dca does not pressurize you to accumulate more than what you can afford .

DCA strategy is very good to every level of investor and if you make your investments rightly there will not be any pressure whatsoever on you because you will always do it when you have your payment made. DCA strategy is only very applicable when you have a regular income job that you're sure of receiving a payment within a specific period of the year, monthly or week.

So if you don't have a definite source of income, you can not be able to invest by DCA, at least not regularly. You can be investing by other means when the income is not very regular. You're at liberty to invest by lump-sum too. Do not think that buying lump-sum has a specific amount that makes it a lump-sum. Buying the dip is good but makes you to miss opportunities because you are timing the market.

[Proty]

Someone who is accumulating Bitcoin for last 4 years or more can take advantage of current dip and can go for lump sum investment provided he has the discretionary income. The lump sum investment is more beneficial if you buy Bitcoin when it was around 65000$ then on 120,000$. This is not the case with DCA, if you are following DCA strategy and buy Bitcoin when it was at 120,000$ and continue buying when price went down to 65000$ then at the end you have a good average buying price. This is why it will be more beneficial if you mix all three strategies i.e. DCA, buy the dip and Lump Sum.   

Combining the three strategies you mentioned might sound easy in writing but to practically apply it in reality is not a small feat because It requires good structure and discipline, and not everyone possess these traits, speaking from my little experience, I believe it is better to stick to a simple strategy that best suits your mindset and financial lifestyle because when you keep your strategy simple, it can help you avoid confusion as an investor and it will keep you from making emotional and irrational decisions that can affect your investment negatively.

I dont see anything difficult about combining the three strategy provided you know what you are doing. An investor can be doing DCA strategy using discretionionary income and still apply the other two strategies. An extra cash may rise or a huge sum of money as a gift, an investor can decide to used this huge sum to do lump sum since the money wasn't meant for his or her expenses. It is also possible for an investor to set aside some percentage of there discretionionary income for buying the dip whenever it will occur. I don't see how combining this strategies will become a problem provided you know what you are doing.

[obuoma]

Since beginners understand less, it is better to wait to buy at a lower price in the beginning. Buy at a lower price first, but the profit will be higher in the end.

This is wrong about Bitcoin accumulation and any beginner that follow your advice is doomed to fail. The reason is that if you continue waiting for dips before you buy Bitcoin, you will likely not even buy since it is hard to know where is the actualy dip. There is also the possibility of using the investor to use the money for something else that is not investing in Bitcoin.

The best method of accumulating Bitcoin is through the DCA method. One important reason it is the best is because it allow the investor start with any amount available without worrying about the dips or whatever the price is. In other words, it allow the investor to start small and then grown big from there. The DCA method is also known  to make investor think more of buying than selling.

[devouring-DARKNESS]

Since beginners understand less, it is better to wait to buy at a lower price in the beginning. Buy at a lower price first, but the profit will be higher in the end.

So what you are saying is that if I wanted to start investing in bitcoin but bitcoin has just hit an ATH I should not buy yet but with for it to drop first, and you are saying that this is the better decision to make as a newbie who is new in the bitcoin space? You are completely wrong and misguided, waiting is even worse for a nocoiner because they haven't started accumulating bitcoin yet, it will be very easy for them to completely lose interest in accumulating bitcoin if they start waiting from the get go, especially when bitcoin ends up staying on the high side and the price doesn't drop within they period of time, it will be better if you pay more attention to what this thread is about and actually use the DCA if you are accumulating bitcoin, delay won't do you any good, if you already have your discretionary funds then you can absolutely start accumulating bitcoin.

What most bitcoin investors have failed to understand about Bitcoin is that it current price is nowhere near the price it might rise up to in the future, so even though it rises to it current all time high at $125k, buying and accumulating it regardless of that is the ideal thing to do because in few years time from now, that price might looks like a dip that may not come again.

Ok let's look at those investors that bought at the previous all time high at $72k and thought that they bought at the top, do you think that they will be regretting their actions of buying then when Bitcoin rose above $100k ? No.
So that is why it's not a wrong decision to buy at anytime because this price now is nowhere near the price it my skyrocket to in the future because Bitcoin is on the rise.

We can't predict how bitcoin will perform, even the so called expert analysts who have tried have never been able to do so with any accuracy even though they are sometimes lucky enough to predict something that actually happens but not because they are good at prediction but because their luck just kicked in, whether bitcoin will go up or down is anyone's guess but with all the available evidence it is most likely to go up than down in the long term and that's what investor should be gunning for, the price at the time of purchase doesn't/shouldn't matter because it's not the target, the target is the price in the future.

[Merit.s]

DCA strategy is only very applicable when you have a regular income job that you're sure of receiving a payment within a specific period of the year, monthly or week.

Not really true. Someone without a regular income can use DCA method to accumulate bitcoin overtime. You should know that it's not your income that you need to invest but your discretionary income. I have seen people with regular income and no discretionary income because their income can hardly meet up with their basic needs and monthly expenses.

For example, a contactor that do have contracts like twice in a year can still use DCA to accumulate bitcoin from his discretionary income after he has been paid for the contract that he did. After taking out the money he needs to take care of his basic needs and monthly expenses for the period of time before he gets a new contract. He can spread his discretionary income into several weeks instead, of him to lump sum.

Any investor can also be lucky to win the jackpot. He can DCA by spreading his discretionary income into several weeks overtime. However, when you're DCAing, it's not a most that you buy every week till you reach your bitcoin target. There are some weeks that you might not have discretionary income due to increase of monthly expenses. You don't need to kill yourself but wait till when next your discretionary income is available.