Does the DCA strategy inspire newbies to invest?

[Futurexxx]

For those whose daily living expenses are the same every month, who have few family responsibilities and a stable regular strong income source, and who have a strong cash flow, automatic DCA may be a good option. But for those whose income is irregular and expenses are not regular, and who have to fulfill various family responsibilities, I think manual DCA is better.

This your ideology might seems logical on paper, but I want you to be understand that even when you have a stable income source or a stable discretionary income, your weekly or monthly expenses might not be stable because you can fall sick and may need money for treatment, or something may happen that may warrant you to spend money, so you can't be too sure about life because we live in a world full of uncertainty, that's why manually dca remains the best because will have to act pragmatically, base on what is at hand.

[Jamestown70]

For those whose daily living expenses are the same every month, who have few family responsibilities and a stable regular strong income source, and who have a strong cash flow, automatic DCA may be a good option. But for those whose income is irregular and expenses are not regular, and who have to fulfill various family responsibilities, I think manual DCA is better.

This your ideology might seems logical on paper, but I want you to be understand that even when you have a stable income source or a stable discretionary income, your weekly or monthly expenses might not be stable because you can fall sick and may need money for treatment, or something may happen that may warrant you to spend money, so you can't be too sure about life because we live in a world full of uncertainty, that's why manually dca remains the best because will have to act pragmatically, base on what is at hand.

Let’s assume we were not investing in Bitcoin in the first place, probably you have other investment you may have put in your money. I guess you’ll still keep some funds as a cushion to that investment in the cases of emergency so you don’t end up taking money from your investment before the desired time and this emergency also include illness or an emergency expenditure, except you’re not keeping emergency funds in the first place.

Despite the emergency funds, I’m not really a fan of automated DCAing, I prefer manual DCA, because I won’t want to put my self through the stress of adjusting the automated/fix amount for DCAing whenever it seems my basic expenditure surpasses my weekly or monthly budget.

[Junii]

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

I think for beginners dollar cost averaging(DCA)  is one of the simplest and safest way to get into trading especially if a person is interested in Bitcoin. Instead of trying to predict tops and bottoms of the market the person invest a fixed amount regularly or on weekly basis or sometimes on monthly basis or whatever the person likes and let time do the work. The outcome of DCA will depend on Bitcoin's long term performance and also the patience and psychological ability of a person. DCA has many benefits but one benefit is that  it can reduce the stress of market timing and emotional decisions. Of course profits are never guaranteed  but if we see in the past  investors who stayed patient and consistent have generally done better than those constantly trying to trade every move.

[Jody.Drummer]

For those whose daily living expenses are the same every month, who have few family responsibilities and a stable regular strong income source, and who have a strong cash flow, automatic DCA may be a good option. But for those whose income is irregular and expenses are not regular, and who have to fulfill various family responsibilities, I think manual DCA is better.

This your ideology might seems logical on paper, but I want you to be understand that even when you have a stable income source or a stable discretionary income, your weekly or monthly expenses might not be stable because you can fall sick and may need money for treatment, or something may happen that may warrant you to spend money, so you can't be too sure about life because we live in a world full of uncertainty, that's why manually dca remains the best because will have to act pragmatically, base on what is at hand.

We don't know what will happen in the future, and it's true what you say even though our income is stable but with weekly or monthly expenses it can be unstable even though we have calculated income evenly but in life we can fall ill and it becomes an unpredictable situation as a result of additional expenses. With the occurrence of something like this that happens unexpectedly is a natural thing and this is one of the things that must be considered and prepared with a solution, namely an emergency fund. so when we have a stable income then we must be able to manage it properly.

[Lannakosa]

We don't know what will happen in the future, and it's true what you say even though our income is stable but with weekly or monthly expenses it can be unstable even though we have calculated income evenly but in life we can fall ill and it becomes an unpredictable situation as a result of additional expenses. With the occurrence of something like this that happens unexpectedly is a natural thing and this is one of the things that must be considered and prepared with a solution, namely an emergency fund. so when we have a stable income then we must be able to manage it properly.

Saving money is an important step toward building capital that you can later invest. I believe it's important to keep a separate pool of savings that you do not invest, so the money is always available when you need it. At the same time, it's also important to have a separate investment portfolio where you can allocate funds and leave them invested for as long as necessary. This is especially relevant with assets like Bitcoin, where you may spend several years consistently buying and hold before eventually realizing a profit. DCA is a very effective strategy for this purpose, and it is particularly well suited for beginners.

[cocadalcan]

We don't know what will happen in the future, and it's true what you say even though our income is stable but with weekly or monthly expenses it can be unstable even though we have calculated income evenly but in life we can fall ill and it becomes an unpredictable situation as a result of additional expenses. With the occurrence of something like this that happens unexpectedly is a natural thing and this is one of the things that must be considered and prepared with a solution, namely an emergency fund. so when we have a stable income then we must be able to manage it properly.

Saving money is an important step toward building capital that you can later invest. I believe it's important to keep a separate pool of savings that you do not invest, so the money is always available when you need it. At the same time, it's also important to have a separate investment portfolio where you can allocate funds and leave them invested for as long as necessary. This is especially relevant with assets like Bitcoin, where you may spend several years consistently buying and hold before eventually realizing a profit. DCA is a very effective strategy for this purpose, and it is particularly well suited for beginners.

It is better to start accumulating Bitcoin from the beginning than to save cash. I think if you have the intention of investing in Bitcoin then accumulate Bitcoin continuously instead of saving funds. Although the purpose of capital formation is to buy Bitcoin but if you have cash funds you have the mentality of spending them most of the time.
It is important to have a separate cash fund and I completely agree with you. Having a separate cash or reserve fund is important for continuing to accumulate Bitcoin in the long term. Those who are aware of this issue buy Bitcoin with excess funds. Due to inflation, saving excess fiat reduces its value. So if you have excess cash funds buy Bitcoin with them and increase your holdings

[Halifat]

For those whose daily living expenses are the same every month, who have few family responsibilities and a stable regular strong income source, and who have a strong cash flow, automatic DCA may be a good option. But for those whose income is irregular and expenses are not regular, and who have to fulfill various family responsibilities, I think manual DCA is better. There may be a good side to manual DCA because sometimes if there is extra money coming in, you can also do DCA with that. It is more effective for manual DCA.

I think what is more important when it comes to DCA strategy, the only thing that matters is consistency because that will maintain your accumulation and increase your bitcoin portfolio. This strategy give you safety even though the market is down, it protect you from noticing it because you have set your target and again you are using the right funds which is descretionary income.

Both manually and automatically I still see them as DCA strategy which doesn't matter, all that matters is consistency, i think everything is okay if the right funds is used.

[adultcrypto]

We don't know what will happen in the future, and it's true what you say even though our income is stable but with weekly or monthly expenses it can be unstable even though we have calculated income evenly but in life we can fall ill and it becomes an unpredictable situation as a result of additional expenses. With the occurrence of something like this that happens unexpectedly is a natural thing and this is one of the things that must be considered and prepared with a solution, namely an emergency fund. so when we have a stable income then we must be able to manage it properly.

This instability in needs is exactly why emergency funds is important because it takes care of unplanned expenses that are important and which have the tendency of making the investor to touch the investment. Many people have not understood the importance of the emergency funds which is the reason they are caught up in the issues of fluctuations of needs which you have explained here. Those who know are actively doing everything to set it up to avoid touching their bitcoin when they did not plan to do so. Whatever method the investor is using, emergency fund is important to protect the investment.

[Ruttoshi]

It is better to start accumulating Bitcoin from the beginning than to save cash. I think if you have the intention of investing in Bitcoin then accumulate Bitcoin continuously instead of saving funds. Although the purpose of capital formation is to buy Bitcoin but if you have cash funds you have the mentality of spending them most of the time.
It is important to have a separate cash fund and I completely agree with you. Having a separate cash or reserve fund is important for continuing to accumulate Bitcoin in the long term. Those who are aware of this issue buy Bitcoin with excess funds. Due to inflation, saving excess fiat reduces its value. So if you have excess cash funds buy Bitcoin with them and increase your holdings

Don't forget that you need to build an emergency funds that should be a backup to your bitcoin investment and that should be in cash which makes it reasonable to have some funds as your emergency funds to safeguard your bitcoin investment when you are hit with real life emergency.

Your emergency funds should be at least three months of monthly expenses. Piling up too much cash isn't a good idea because you should use the excess to invest in bitcoin since bitcoin is the opposite of fiat and increases in value overtime.

Both manually and automaticaly I still see them as DCA strategy which doesn't matter, all that matters is consistency, i think everything is okay if the right funds is used.

It matters a lot bro, because consistency is all about using the right amount from your discretionary income to buy bitcoin continuously to keep on increasing your bitcoin stash and not to buy bitcoin when you don't have discretionary income. Automated DCA will buy bitcoin for you without knowing if you have a discretionary income or not. What of the weeks that your expenses are higher and you are left with little discretionary income, do you think the bot will know that.

Manual DCA beats automated DCA because you choose how much from your discretionary income you want to use to buy bitcoin for that week. Automated DCA will accumulate bitcoin for you beyond your discretionary income when it's less than the amount you program the bot. And that will definitely affect you financially especially, when your needs arises and bitcoin price is below your entry point, you will sell at loss.

[Muba20]

For those whose daily living expenses are the same every month, who have few family responsibilities and a stable regular strong income source, and who have a strong cash flow, automatic DCA may be a good option. But for those whose income is irregular and expenses are not regular, and who have to fulfill various family responsibilities, I think manual DCA is better. There may be a good side to manual DCA because sometimes if there is extra money coming in, you can also do DCA with that. It is more effective for manual DCA.

I think what is more important when it comes to DCA strategy, the only thing that matters is consistency because that will maintain your accumulation and increase your bitcoin portfolio. This strategy give you safety even though the market is down, it protect you from noticing it because you have set your target and again you are using the right funds which is descretionary income.

Both manually and automatically I still see them as DCA strategy which doesn't matter, all that matters is consistency, i think everything is okay if the right funds is used.

In the case of DCA strategy, there is no need to set market timing. There is no need to analyze the market. In the case of trading, many people hesitate while trying to catch the bottom or top of the market. DCA strategy eliminates this problem. However, if someone invests from his required money, if he is short of debt repayment or daily expenses, he may be forced to sell at a loss. Which puts him at a loss. In this case, if you invest from discretionary income, the plan remains relatively stable. The three main foundations of DCA strategy are consistency, proper management and patience, which if maintained, can overcome the short-term volatility of the market and focus on achieving his long-term goals.

[Xackie]

For those whose daily living expenses are the same every month, who have few family responsibilities and a stable regular strong income source, and who have a strong cash flow, automatic DCA may be a good option. But for those whose income is irregular and expenses are not regular, and who have to fulfill various family responsibilities, I think manual DCA is better. There may be a good side to manual DCA because sometimes if there is extra money coming in, you can also do DCA with that. It is more effective for manual DCA.

I think what is more important when it comes to DCA strategy, the only thing that matters is consistency because that will maintain your accumulation and increase your bitcoin portfolio. This strategy give you safety even though the market is down, it protect you from noticing it because you have set your target and again you are using the right funds which is descretionary income.

Both manually and automatically I still see them as DCA strategy which doesn't matter, all that matters is consistency, i think everything is okay if the right funds is used.

You are right, consistency is an important aspect when using DCA, because without it someone won't be able to holding enough Bitcoin especially if they are low amounts of money as their Discretionary income. What we shouldn't forget is that apart from being consistent someone needs to have some level of  discipline and conviction. The reason is because someone might be accumulating consistently and somehow jeopardize their investments  by reacting wrongly at critical moments. Because when someone starts panicking during the bearish period which makes them sell their holdings early, then that consistency does not really translate into meaningful accumulation. Or at times Bitcoin might be in a bullish momentum, then temptation would force them  sell off for profits. For you to get a better accumulation,  your mindset as well your strategy must be good.

[As-Soon-As]

For those whose daily living expenses are the same every month, who have few family responsibilities and a stable regular strong income source, and who have a strong cash flow, automatic DCA may be a good option. But for those whose income is irregular and expenses are not regular, and who have to fulfill various family responsibilities, I think manual DCA is better.

This your ideology might seems logical on paper, but I want you to be understand that even when you have a stable income source or a stable discretionary income, your weekly or monthly expenses might not be stable because you can fall sick and may need money for treatment, or something may happen that may warrant you to spend money, so you can't be too sure about life because we live in a world full of uncertainty, that's why manually dca remains the best because will have to act pragmatically, base on what is at hand.

It is most important to form an emergency fund along with investing according to the Bitcoin DCA method. Because you mentioned that people can face danger at any moment, it is better to form an emergency fund so that there is no pressure on their Bitcoin investment. If you get sick, you can get treated with some money from this emergency fund, an emergency fund is formed only to deal with danger. That is why your discretionary income and emergency fund play the most important role in maintaining your investment.
Right now, in the current situation, it is a very good time to invest in Bitcoin, investing in Bitcoin without panic is the best plan.

[Silikiem]

For those whose daily living expenses are the same every month, who have few family responsibilities and a stable regular strong income source, and who have a strong cash flow, automatic DCA may be a good option. But for those whose income is irregular and expenses are not regular, and who have to fulfill various family responsibilities, I think manual DCA is better.

This your ideology might seems logical on paper, but I want you to be understand that even when you have a stable income source or a stable discretionary income, your weekly or monthly expenses might not be stable because you can fall sick and may need money for treatment, or something may happen that may warrant you to spend money, so you can't be too sure about life because we live in a world full of uncertainty, that's why manually dca remains the best because will have to act pragmatically, base on what is at hand.

Although I might agree with your point to some certain extent but when you come to think of it again, what we are talking about here is daily basic needs or living expenses and not really an emergency situations. Falling ill should be regarded as an emergency situation and not really as a part of someone’s daily living expenses and at such i find fault in that statement. A daily expenses have to do with food, shelter, clothing, and payment of some basic utility bills at most. All this things are something that you know about and is like a normal routine for everyone, it doesn’t happen all of a sudden. But situations like sickness are something that comes suddenly and no one plans for it and at such they are classified as an emergency or unexpected situations.

Based on this note regarding this two scenarios, I think each of them have a particular cash to use and sort them out, and that is where an emergency funds comes into play because as a long term investor you’re ought to make plans to build up your emergency funds for issues relating to emergency situations like sickness and when it comes to issues of sorting out your basic financial needs then you use it’s a different kind of money to use for that purpose. So if someone have his basic needs outlined and allocated cash to use for it and all of a sudden the person falls ill then he should use his emergency funds savings to sort out the situation.

I can not agree with Ruykeri because In a very unstable economic situation of some areas or particular country like where I come from, it’s very difficult to have exactly the same basic living expenses every month in the sense that you can get a particular food item in a shop for a particular price today, and you might go back there the following day and the price will increase or may not be the same thing as you bought previously due to unstable economic situations.

[passwordnow]

I think what is more important when it comes to DCA strategy, the only thing that matters is consistency because that will maintain your accumulation and increase your bitcoin portfolio. This strategy give you safety even though the market is down, it protect you from noticing it because you have set your target and again you are using the right funds which is descretionary income.

Both manually and automatically I still see them as DCA strategy which doesn't matter, all that matters is consistency, i think everything is okay if the right funds is used.

That's the advantage of DCA, regardless of what the situation of the market is everyone who's dedicated in doing that has to accumulate no matter what. While we can also skip some specific times like when it's quite high in our opinion to buy but we can't miss when it's definitely a low price that we have waited for. Someone who's very consistent will beat all of those who have been on and off in accumulation. And from that discipline of consistency, we're also building ourselves into another pace of life where we can use it for other investments too aside from doing it in bitcoin.

[Bobrox]

Correct me if wrong, DCA not always promising to earn much profitable profitable for strategy to invest in bitcoin exactly enter at the wrong moment, let me explain bit if you buy bitcoin trough DCA during bearish moment I believe you have been long term holder until right now how significant bitcoin movement from higher price to lower price. So lets change the way about investing in bitcoin enter at the right time during bullish moment and you can buy trough DCA or all in based on amount become your saving fund. So if you have small fund better saving in currency or fiat assets and buy back bitcoin later after have lower price.

Don't blame about DCA during the bearish moment because high risk with your investment assets and actually you need more patience waiting market recovery back to higher price learn more from the latest highest price and right now drop more than 60%.

[Bd officer]

Correct me if wrong, DCA not always promising to earn much profitable profitable for strategy to invest in bitcoin exactly enter at the wrong moment, let me explain bit if you buy bitcoin trough DCA during bearish moment I believe you have been long term holder until right now how significant bitcoin movement from higher price to lower price. So lets change the way about investing in bitcoin enter at the right time during bullish moment and you can buy trough DCA or all in based on amount become your saving fund. if you have small fund better saving in currency or fiat assets and buy back bitcoin later after have lower price.

Don't blame about DCA during the bearish moment because high risk with your investment assets and actually you need more patience waiting market recovery back to higher price learn more from the latest highest price and right now drop more than 60%.

If you plan to save in fiat assets then this is not a good strategy because inflation will reduce the value of your money. If you have small funds then instead of saving you can continue with DCA because you don't need much money to invest in Bitcoin. You can start accumulating BTC slowly even with $10. And waiting for the price to drop is not a good strategy at all because the price may not be as per your expectations. For me DCA is the best strategy because I don't have to worry about the price of Bitcoin, I get the opportunity to buy at the average price.

[Jody.Drummer]

We don't know what will happen in the future, and it's true what you say even though our income is stable but with weekly or monthly expenses it can be unstable even though we have calculated income evenly but in life we can fall ill and it becomes an unpredictable situation as a result of additional expenses. With the occurrence of something like this that happens unexpectedly is a natural thing and this is one of the things that must be considered and prepared with a solution, namely an emergency fund. so when we have a stable income then we must be able to manage it properly.

Saving money is an important step toward building capital that you can later invest. I believe it's important to keep a separate pool of savings that you do not invest, so the money is always available when you need it. At the same time, it's also important to have a separate investment portfolio where you can allocate funds and leave them invested for as long as necessary. This is especially relevant with assets like Bitcoin, where you may spend several years consistently buying and hold before eventually realizing a profit. DCA is a very effective strategy for this purpose, and it is particularly well suited for beginners.

I agree with you, apart from the investment that should be focused on but we should not forget other factors that are quite important too, especially those that are useful in our daily lives such as saving or emergency funds. And I personally think it's better if the emergency fund and savings are separated by the method or division, with emergency funds devoted to handling situations that occur unexpectedly and savings are used to buy something we want, such as for example a new PC set, cellphone, vehicle or other. At the same time, investment is done with a DCA strategy that is suitable, apart from being easy to do (supposedly), the amount is not set by anyone other than ourselves, so it is adjusted to our own abilities.

[JayJuanGee]

Correct me if wrong, DCA not always promising to earn much profitable profitable for strategy to invest in bitcoin exactly enter at the wrong moment, let me explain bit if you buy bitcoin trough DCA during bearish moment I believe you have been long term holder until right now how significant bitcoin movement from higher price to lower price. So lets change the way about investing in bitcoin enter at the right time during bullish moment and you can buy trough DCA or all in based on amount become your saving fund. So if you have small fund better saving in currency or fiat assets and buy back bitcoin later after have lower price.

If you are brand new to bitcoin, then you have absolutely no bitcoin, so instead of buying bitcoin, you think that it is a good idea to wait for the price to come down, yet if you are new to bitcoin, how the fuck do you know if the BTC price might go up, down or sideways?

You want to stay a no coiner and wait for the price to come down? 

As a newbie, how are you going to know when the bitcoin price had come down enough, so maybe your waiting strategy would cause you to want to continue to wait and wait and wait... So then when the fuck you going to get started buying bitcoin?

You mentioned that maybe you want to invest.  What do you consider investing?  How long do you plan to hold bitcoin?

Many guys who have studied bitcoin (oh wait, you haven't studied bitcoin yet you think that you know something about bitcoin?) consider investing in bitcoin to be a 4-10 year or longer endeavor since it likely takes a long time to build up a bitcoin holdings.  You think that you are going to invest for a period that is shorter than 4 years?  maybe you are a trader and not an investor?  Maybe you don't know the difference between trading and investing, and you want to trade bitcoin, yet this thread is about investing not trading.

By the way, I understand that newbies to bitcoin may well not want to commit to 4-10 years or longer when they get started in bitcoin, so they might not want to be bitcoin investors, yet they might not really know what they want since they may well not know shit about bitcoin except maybe some superficial and wrong ideas that they had heard about bitcoin in the mainstream media.

Maybe you could consider getting started buying bitcoin, and learning about bitcoin at the same time?  If you start to buy bitcoin, you likely are going to be more incentivized to try to learn about bitcoin rather than if you were to employ a waiting on the sidelines strategy.  Waiting likely does not get you anywhere as compared to taking action and figuring out some reasonable amount of bitcoin every week that you want to buy while you are learning about it, whether that is $100 per week, $10 per week or some other amount that you consider to be reasonable and within your discretionary funds.  Actively buying bitcoin is a much more serious approach, and you likely would end up learning about bitcoin if you were to actually do something rather than just think about it.

Don't blame about DCA during the bearish moment because high risk with your investment assets and actually you need more patience waiting market recovery back to higher price learn more from the latest highest price and right now drop more than 60%.

Guys who are in their first several years of buying bitcoin don't need to give much consideration to BTC prices, since they may well need to figure out how much bitcoin they are going to buy each week, if any, based on their own budget and not based on the bitcoin price.  If you are getting distracted by price, then you are likely not very serious in terms of recognizing that you are a no coiner, and even if you buy some bitcoin you are still going to be a low coiner for a long ass time, since it tends to take a long ass time to build a bitcoin portfolio, even if you are serious about building it...  Now there are some guys who are able to reallocate their other already existing investments into bitcoin and/or to front load their bitcoin investment based on their having other resources that they can put into bitcoin, yet if a person is brand new to bitcoin, it likely would still be better to start out with regular weekly buy amounts while they are learning about bitcoin and getting used to bitcoin rather than starting out with large amounts and not getting used to it, unless you think that you know enough about bitcoin and cashflow management to allocate larger amounts into bitcoin from the start and/or to attempt to front load your bitcoin investment.

[samadam007]

Correct me if wrong, DCA not always promising to earn much profitable profitable for strategy to invest in bitcoin exactly enter at the wrong moment, let me explain bit if you buy bitcoin trough DCA during bearish moment I believe you have been long term holder until right now how significant bitcoin movement from higher price to lower price. So lets change the way about investing in bitcoin enter at the right time during bullish moment and you can buy trough DCA or all in based on amount become your saving fund. So if you have small fund better saving in currency or fiat assets and buy back bitcoin later after have lower price.

Don't blame about DCA during the bearish moment because high risk with your investment assets and actually you need more patience waiting market recovery back to higher price learn more from the latest highest price and right now drop more than 60%.

DCA is better and safer for most people.
Waiting for the perfect time to buy Bitcoin is very difficult. Most people get it wrong and miss the big gains.
Bitcoin always recovers from big drops and goes higher later. Buying every month (even when price is falling) lets you buy cheaper and earn more in the long run.
Also, holding cash and waiting is risky because you can miss the big rise, and your money loses value over time.
So, Just buy steadily instead of trying to be smart with timing.

[Proty]

I think what is more important when it comes to DCA strategy, the only thing that matters is consistency because that will maintain your accumulation and increase your bitcoin portfolio. This strategy give you safety even though the market is down, it protect you from noticing it because you have set your target and again you are using the right funds which is descretionary income.

Both manually and automatically I still see them as DCA strategy which doesn't matter, all that matters is consistency, i think everything is okay if the right funds is used.

That's the advantage of DCA, regardless of what the situation of the market is everyone who's dedicated in doing that has to accumulate no matter what. While we can also skip some specific times like when it's quite high in our opinion to buy but we can't miss when it's definitely a low price that we have waited for. Someone who's very consistent will beat all of those who have been on and off in accumulation. And from that discipline of consistency, we're also building ourselves into another pace of life where we can use it for other investments too aside from doing it in bitcoin.

skipping when you feel that the price is high to buy when you consider it to be low is same as timing the market. This is more like buying the dip strategy, the DCA strategy doesn't require timing the market. With the DCA strategy you can buy bitcoin at any price and since we will be buying at different prices it will definitely act as a hedge against volatility. Therefore, the idea of skipping to buy when the price is high to buy when it is considered to be low has nothing to do with DCA strategy.