Does the DCA strategy inspire newbies to invest?

[Princess Leah]

That's correct. I agree, newbies and those in the industry for years are doing the DCA method, mostly on Bitcoin and other top alts only. Even millionaires do DCA. So, DCA is not only for newbies or low-income earners but for all different kinds of investors. But of course, don't expect too much or expect a high return if your budget is low, especially if you are doing DCA on Bitcoin. Since your investment is low, most probably the ROI is also low. But if ever, don't think DCA is not worth it. Don't get discouraged. A profit is still a profit. It's better than nothing.

What you've said is right, but someone with a low budget shouldn't be discouraged however be determined to hold longer as well as working hard enough to generate more discretionary income, i don't expect that a low income earner should just relax for years without trying to get other income source and increase the discretionary funds.

 Anyways Bitcoin investment is not a competition and hopefully a low income earner can get good returns in future and change his or her financial status. Someone who barely have up to $1k as savings but get $10k or more from an investment in future has changed his or her financial status for good whether the return is low or not.

[Silikiem]

You make some very good points here! Yes, there is still risk involved if you solely depend on DCA. But without having the right sized portfolio + emergency fund in place, you are still going to feel pressured to liquidate your holdings when things get rocky in the markets anyway.

My main disagreement here would be regarding your 2nd example. If someone does not have an emergency fund, they shouldn’t be looking to invest in anything…including crypto and dollar cost averaging! That’s essentially what you’re doing with DCA.

As I stated above, the key concept behind DCA is using surplus cash (that isn’t needed for basic living expenses) to invest over time. So what you think is dollar cost averaging is basically over-leveraging and poor budget management at its core.

And honestly? If you don’t manage your money properly, and you decide to do dollar cost averaging (a form of systematic investing), I guarantee that whenever there is a market crash, your stress levels will skyrocket! So I believe the best thing you can do prior to getting into DCA is build up an emergency fund. This article talks about how to set up this fund.

First you should be specific when talking about bitcoin in this thread, you need to be careful not to associate bitcoin to crypto because there are lots of cryptocurrencies out there that are all shitcoins with no value. Using the vague term “crypto” could be misleading newbies into investing in shitcoins.

And also, you seem to be misunderstanding the concept between DCA and emergency funds. You can start DCAing even if you don’t have an emergency funds ready, it’s just the same thing as getting started with bitcoin investment. Not having an emergency funds ready shouldn’t be a barrier why you shouldn’t get started in buying bitcoin with DCA strategy, the emergency funds is not what you need to start DCA, what is needed to start your DCA is just a discretionary income. So if you have a discretionary income available then you can get started with buying bitcoin and HODL and along the line you can be building the emergency funds while you’re ongoing buying bitcoin. You can as well be doing it simultaneously such that when you have a discretionary income you can decide to allocate part of your discretionary income into accumulating bitcoin and the other part into building up your emergency funds and other back up funds to protect your investment for long term objective not to be sold when in an emergency situation.

The idea is that you don’t have to delay getting started with bitcoin investments simply because of unavailability of emergency funds at hand as you can always get to build the emergency funds along the line while ongoing accumulating bitcoin, what is most needed to start with is just a discretionary income available.

[Morayoam91]

The essence of the DCA type of investment is for small income earners or those with small discretionary, it gives them the ability to invest the little amount they have with zero stress because they can decide to increase the amount they invest with at any given time when their earnings is increased. The only thing a small income earn needs is to be consistent with his DCA the amount he is using can be increased over time but they have to have a stable income so they do not have to invest this week and expect to invest in the next 5 months the amount they will accumulate will be very little.

The DCA strategy works for all classes of people, it is effective for both rich and poor. There are many who do excessive research on the market to invest despite having enough money, but due to such wastage of time, they are missing out on current opportunities. However, investing through the DCA strategy is better because it will help you maintain continuity without worrying too much about the market. It is important to have a long-term plan for investment and financial transparency is also important. To invest without any excuses, it is important to start from the present and complete it in the long term as the main goal.

[Joeboy]

You make some very good points here! Yes, there is still risk involved if you solely depend on DCA. But without having the right sized portfolio + emergency fund in place, you are still going to feel pressured to liquidate your holdings when things get rocky in the markets anyway.

My main disagreement here would be regarding your 2nd example. If someone does not have an emergency fund, they shouldn’t be looking to invest in anything…including crypto and dollar cost averaging! That’s essentially what you’re doing with DCA.

As I stated above, the key concept behind DCA is using surplus cash (that isn’t needed for basic living expenses) to invest over time. So what you think is dollar cost averaging is basically over-leveraging and poor budget management at its core.

And honestly? If you don’t manage your money properly, and you decide to do dollar cost averaging (a form of systematic investing), I guarantee that whenever there is a market crash, your stress levels will skyrocket! So I believe the best thing you can do prior to getting into DCA is build up an emergency fund. This article talks about how to set up this fund.

It is so obvious that you are confused, and it is that state of confusion that is making you say what you aren't supposed to say...The availability of your discretionary income is majorly what you need to kickstart your accumulation journey and while you go, you could very well begin making room for the availability of your emergency funds.. Emergency funds can always be built along side your Bitcoin accumulation....Just as they say--Time Waits for No Man, so delaying your investment coz of the lack of emergency funds could very well result in time wasting as well as folks missing out on their buying opportunity... Statistically, about 80% of the reason why folks are restless whenever there is a dip is simply because they failed to invest with the money that is actually their discretionary income which could be very problematic...
Also learn to differentiate between shitcoins and Bitcoin..And you could do so by making use of the right terminology to refer to Bitcoin to avoid any sort of confusion..

[Taskford]

That's correct. I agree, newbies and those in the industry for years are doing the DCA method, mostly on Bitcoin and other top alts only. Even millionaires do DCA. So, DCA is not only for newbies or low-income earners but for all different kinds of investors. But of course, don't expect too much or expect a high return if your budget is low, especially if you are doing DCA on Bitcoin. Since your investment is low, most probably the ROI is also low. But if ever, don't think DCA is not worth it. Don't get discouraged. A profit is still a profit. It's better than nothing.

What you've said is right, but someone with a low budget shouldn't be discouraged however be determined to hold longer as well as working hard enough to generate more discretionary income, i don't expect that a low income earner should just relax for years without trying to get other income source and increase the discretionary funds.

 Anyways Bitcoin investment is not a competition and hopefully a low income earner can get good returns in future and change his or her financial status. Someone who barely have up to $1k as savings but get $10k or more from an investment in future has changed his or her financial status for good whether the return is low or not.

I think that discouragement happen, because those people compare themselves to other holders. Which can afford to put huge funds in their investments.

But the question is, are they knowledgeable enough to know the consequences of their actions?

Because even if they brought big capital, then their aim is for short term. They might struggle to gain from Bitcoin. But if they choose to do consistent buys, even using their small capital. Chances to earn is quietly high.

No need for people to rush everything. Also there's no need to pressure themselves, because Bitcoin is not a competition.

So best to focus on their current earnings. Then know separate their extra or discretionary funds to use for their recent and also future Bitcoin buys.

[Nuel0717]

Guys can do whatever they like and sometimes guys sell way too many bitcoin too soon because they think that it is a good idea to sell because their holdings are in profits.. and yeah, it can be difficult to get back those bitcoin after they had been sold...and sometimes guys will have regrets about that.  They had opportunities to really build wealth in bitcoin and then they ended up selling way too much too soon.

Okay, that means people cam sell some portions when they've held that long. I mean up to 8 years, if so then it's cool cause I was thinking otherwise and saw it as trading, so what's the rightful percentage to sell that won't be seen as selling too much.

Let's see if someone get up to $50k returns in Bitcoin in an interval of 8 years can the person take up to 50% profits and continue holding with the remaining or the percentage varies individually?

[Dareo]

Inasmuch as you can afford to have discretionary funds from your income and you have the interest of doing DCA strategy of accumulating Bitcoin I don't think that lack of sufficient funds would be a valid reason why you cannot buy and hold Bitcoin. Bitcoin investment is very flexible and accommodating to every income categories, whether you're rich or poor if you have discretionary funds you can invest in Bitcoin. Bitcoin has proven to be one of the very best asset that any investors can hold and if they choose DCA strategy they have cut their worries to become very minimal because it wouldn't matter whether price is decreasing or increasing they will keep accumulating knowing that it is a valuable asset.

But in reality, maintaining a DCA is the most difficult task for people with small incomes. Suppose you have only $10 $20 per week in order to buy Bitcoin, now your psychological toughness will really get tested as you see your whole portfolio stays underwater for months together during a bear market phase. For a big investor , it's easy to digest, but for a low income person, that little saving money gives a lot of hope, because they don't have much in total, so each penny matters for them.

Same thing happens in case of the beginners, they started their journey of buying Bitcoin with full excitement and passion initially. But gradually after seeing that how it's impossible to become a millionaire within days via Bitcoin with limited capital they lose their patience and go towards memecoins in search of making money quickly. In such cases, their complete investment may get lost. This is why I feel, while saving Bitcoin, the most important factor is controlling emotions and maintaining a long term view regarding Bitcoin rather than money.

[Baristotle]

DCA is a good strategy but it is good when the price of bitcoin is low already. Example is when bitcoin fall below $16000 in 2022 that El Salvador was buying one bitcoin daily. If you want the strategy to be good for you, you can just wait until the price fall during bear market and start DCA.

I just have a quick question let’s say a country has the budget to buy at least 50 Bitcoin or more at once why would they buy slowly instead? Is the purpose to accumulate Bitcoin while also trying to wait for a lower price?

[Showlove01]

DCA is a good strategy but it is good when the price of bitcoin is low already. Example is when bitcoin fall below $16000 in 2022 that El Salvador was buying one bitcoin daily. If you want the strategy to be good for you, you can just wait until the price fall during bear market and start DCA.

I just have a quick question let’s say a country has the budget to buy at least 50 Bitcoin or more at once why would they buy slowly instead? Is the purpose to accumulate Bitcoin while also trying to wait for a lower price?

I really do not know how this your question sounds to your ear but to me it's really kinda awkward, you can not compare country way of buying  Bitcoin and that of a single individual I mean country has numerous ways of getting revenue unlike single individual unless those that has firms or company of their own. Country can decide to get 50 Bitcoin at once if they have the capacity or they can do it partly till they acquired it and it will really shake the market but this should not be out concern rather we should focus on how to grow our own portfolio.

[JayJuanGee]

Guys can do whatever they like and sometimes guys sell way too many bitcoin too soon because they think that it is a good idea to sell because their holdings are in profits.. and yeah, it can be difficult to get back those bitcoin after they had been sold...and sometimes guys will have regrets about that.  They had opportunities to really build wealth in bitcoin and then they ended up selling way too much too soon.

Okay, that means people cam sell some portions when they've held that long. I mean up to 8 years, if so then it's cool cause I was thinking otherwise and saw it as trading, so what's the rightful percentage to sell that won't be seen as selling too much.

Let's see if someone get up to $50k returns in Bitcoin in an interval of 8 years can the person take up to 50% profits and continue holding with the remaining or the percentage varies individually?

I doubt that you are thinking about either bitcoin portfolio maintenance and/or sustainable withdrawal in ways that will help you to make sure that you do not end up selling too much bitcoin too soon.

In other words, you are thinking about short-term dollar profits and/or even levels of profits that you either want to consume or perhaps invest in some inferior assets... so yeah, if you have difficulties recognizing/appreciating bitcoin as a superior asset, you are going to end up selling too much too soon.

And, also, why the fuck would there be any meaningful justification to sell 50% of your holdings merely because you are in profits.

Let's say for example, you had spent 8 years accumulating bitcoin, and then so at year 8 you largely stop accumulating bitcoin, and in year 10 or so, you decide to calculate the value of your holdings using the 200-WMA and my sustainable withdrawal tool so that you can start to withdraw something like 8% or 10% of your bitcoin holdings per year.... and so my sustainable withdrawal tool will help you to locate the monthly withdrawal rate, so it seems to me that if right now you were to have 10 BTC, you could perpetually and sustainably withdraw at $5k per month and give yourself a 7% raise each year... and yeah of course, you may need to monitor the situation, but having a $5k per month and then a 7% raise each year does not seem to be a bad situation for a guy to be in.

If you sell 5 bitcoin or some other large amount, then you end up fucking up your sustainable withdrawal rate, so yeah, with 5 BTC it ends up being $2,500 per month instead of $5k per month. .even though you end up still getting a 7% raise each year.

DCA is a good strategy but it is good when the price of bitcoin is low already. Example is when bitcoin fall below $16000 in 2022 that El Salvador was buying one bitcoin daily. If you want the strategy to be good for you, you can just wait until the price fall during bear market and start DCA.

I just have a quick question let’s say a country has the budget to buy at least 50 Bitcoin or more at once why would they buy slowly instead? Is the purpose to accumulate Bitcoin while also trying to wait for a lower price?

DCA works best in terms of managing your income as it comes in, so when your discretionary income comes in, you can decide how much of your discretionary income to put into bitcoin versus putting it in your savings versus using it for discretionary consumption.

Similar with a country.  If they have a budget in which they could buy 50 bitcoin at once, then it might be to their advantage to use that money to buy bitcoin right away rather than waiting.

Personally, on a historical basis, whenever I have some kind of a lump sum amount come available, I tend to at least consider the amount in term of the three buying strategies 1) right away, 2) defer by time (DCA) and 3) defer by price (buy dips that might not happen).   So with the lump sum amount that we have available (like you mentioned in the hypothetical), we can choose how much to put within each of the categories, and we also likely would need to consider the income that we expect to be coming in, whether we project our income and expenses out 6-24 months or some other timeline that we consider to be reasonable for our circumstances.

[Grease5000]

The essence of the DCA type of investment is for small income earners or those with small discretionary, it gives them the ability to invest the little amount they have with zero stress because they can decide to increase the amount they invest with at any given time when their earnings is increased. The only thing a small income earn needs is to be consistent with his DCA the amount he is using can be increased over time but they have to have a stable income so they do not have to invest this week and expect to invest in the next 5 months the amount they will accumulate will be very little.

The DCA strategy works for all classes of people, it is effective for both rich and poor. There are many who do excessive research on the market to invest despite having enough money, but due to such wastage of time, they are missing out on current opportunities. However, investing through the DCA strategy is better because it will help you maintain continuity without worrying too much about the market. It is important to have a long-term plan for investment and financial transparency is also important. To invest without any excuses, it is important to start from the present and complete it in the long term as the main goal.

Though  the DCA makes it easier for low income earners to accumulate bitcoin gradually, but I don't think having a stable income is a must. What should matters more is having some money left after taking care of your basic needs.

Someone with irregular income can still practise DCA by investing whenever he have some money left after taking  care of basic need even if the amount and timing change. The goal should be to build a habit that fits one financial situation, not to use money meant for essential needs to buy bitcoin.

And also, accumulating little by little is better than putting yourself under pressure just to accumulate more. If income improves, the person can increase the amount they invest. For me, DCA should make investing easier to manage, not become another financial burden.

[Baristotle]

I really do not know how this your question sounds to your ear but to me it's really kinda awkward, you can not compare country way of buying  Bitcoin and that of a single individual I mean country has numerous ways of getting revenue unlike single individual unless those that has firms or company of their own. Country can decide to get 50 Bitcoin at once if they have the capacity or they can do it partly till they acquired it and it will really shake the market but this should not be out concern rather we should focus on how to grow our own portfolio.

I assure you, it was a valuable question for me cuz I precisely mentioned if a country has the capacity to buy, i thought there was a strategic reason behind it

DCA works best in terms of managing your income as it comes in, so when your discretionary income comes in, you can decide how much of your discretionary income to put into bitcoin versus putting it in your savings versus using it for discretionary consumption.

Similar with a country.  If they have a budget in which they could buy 50 bitcoin at once, then it might be to their advantage to use that money to buy bitcoin right away rather than waiting.

Personally, on a historical basis, whenever I have some kind of a lump sum amount come available, I tend to at least consider the amount in term of the three buying strategies 1) right away, 2) defer by time (DCA) and 3) defer by price (buy dips that might not happen).   So with the lump sum amount that we have available (like you mentioned in the hypothetical), we can choose how much to put within each of the categories, and we also likely would need to consider the income that we expect to be coming in, whether we project our income and expenses out 6-24 months or some other timeline that we consider to be reasonable for our circumstances.

Thanks for the detailed response (now I feel like I owe you something 😅)
Anyway, DCA sounds pretty logical and I guess it’s the only way to go for someone like me. It’ll take time to see good profits but  it’s better than not investing at all just because you think it’s too late and you need a huge amount to start

[Alonso_]

DCA works best in terms of managing your income as it comes in, so when your discretionary income comes in, you can decide how much of your discretionary income to put into bitcoin versus putting it in your savings versus using it for discretionary consumption.

Similar with a country.  If they have a budget in which they could buy 50 bitcoin at once, then it might be to their advantage to use that money to buy bitcoin right away rather than waiting.

Personally, on a historical basis, whenever I have some kind of a lump sum amount come available, I tend to at least consider the amount in term of the three buying strategies 1) right away, 2) defer by time (DCA) and 3) defer by price (buy dips that might not happen).   So with the lump sum amount that we have available (like you mentioned in the hypothetical), we can choose how much to put within each of the categories, and we also likely would need to consider the income that we expect to be coming in, whether we project our income and expenses out 6-24 months or some other timeline that we consider to be reasonable for our circumstances.

Thanks for the detailed response (now I feel like I owe you something 😅)
Anyway, DCA sounds pretty logical and I guess it’s the only way to go for someone like me. It’ll take time to see good profits but  it’s better than not investing at all just because you think it’s too late and you need a huge amount to start

Actually, considering your rank and if I’m assuming that you’re a newbie or a beginner in bitcoin investment, I will advice you to focus more on buying bitcoin and accumulating enough bitcoin in your portfolio, instead of thinking about profit at the early stages of your bitcoin investment it’s totally ridiculous, especially when you’re a newbie, well for your information profit in bitcoin isn’t guaranteed which is why you should focus on having a discretionary income and also trying to improve your cashflow which will enable you to increase your discretionary income so you can buy more bitcoin.

[Abelly]

Guys can do whatever they like and sometimes guys sell way too many bitcoin too soon because they think that it is a good idea to sell because their holdings are in profits.. and yeah, it can be difficult to get back those bitcoin after they had been sold...and sometimes guys will have regrets about that.  They had opportunities to really build wealth in bitcoin and then they ended up selling way too much too soon.

Okay, that means people cam sell some portions when they've held that long. I mean up to 8 years, if so then it's cool cause I was thinking otherwise and saw it as trading, so what's the rightful percentage to sell that won't be seen as selling too much.

Let's see if someone get up to $50k returns in Bitcoin in an interval of 8 years can the person take up to 50% profits and continue holding with the remaining or the percentage varies individually?

Are you actually trying to withdraw half of the profit or sell half of the total Bitcoin?
Of course, the two terms are not the same. Since your question mentions half of the profit, this calculation needs to be clear before determining the selling ratio.

Let's assume that you invested a total of $50k and its value is now $100k. According to the calculation, here you see a profit of $50k. Now if you withdraw half of that $50k profit, which is $25k, then you will have to sell a quarter of your total Bitcoin, not half. It is good to tell you that a quarter does not make the sale appropriate. Let's go to the main point, along with that, you need to know the purpose of your sale.  Withdrawing money to meet a one-time need is not the same decision as withdrawing money every year to cover living expenses. In the second case, you have to consider how much you are withdrawing today, as well as how much you will need in the coming years, and whether you can reduce the withdrawal if prices fall. Therefore, whether you have held it for eight years or have made a profit, cannot be used to determine the appropriate percentage based on these two pieces of information alone.

[laijsica]

Thanks for the detailed response (now I feel like I owe you something 😅)
Anyway, DCA sounds pretty logical and I guess it’s the only way to go for someone like me. It’ll take time to see good profits but  it’s better than not investing at all just because you think it’s too late and you need a huge amount to start

The thing you should focus on when investing in Bitcoin is to build up holdings rather than not making any profit at the beginning. Some folk lose money because of the initial profit mindset, you need to change from a small profit mindset to a long term mindset and only then will you be able to build a decent holding of Bitcoin.

Start Bitcoin with a learning mindset. Deposit Bitcoin regularly through discretionary income. You are showing a positive attitude about the DCA method. Yes, this method is very easy for Bitcoin because the use and consistency of discretionary income during a decline or increase in income is very effective in building Bitcoin holdings.

[sotelorene]

Actually, considering your rank and if I’m assuming that you’re a newbie or a beginner in bitcoin investment, I will advice you to focus more on buying bitcoin and accumulating enough bitcoin in your portfolio, instead of thinking about profit at the early stages of your bitcoin investment it’s totally ridiculous, especially when you’re a newbie, well for your information profit in bitcoin isn’t guaranteed which is why you should focus on having a discretionary income and also trying to improve your cashflow which will enable you to increase your discretionary income so you can buy more bitcoin.

The quest to make profit is what distract most newbie in Bitcoin investment. I know the reason, I mean the primary reason everyone is investing in Bitcoin is to make profit and also to stay away from inflation but thinking about profit or putting it in forefront is not good for a newbie because this will make them make some unnecessary decisions and mistake that they should not. What a newbie should focus on is how to grow their portfolio and hold for a long period of time.

[Female King]

DCA works best in terms of managing your income as it comes in, so when your discretionary income comes in, you can decide how much of your discretionary income to put into bitcoin versus putting it in your savings versus using it for discretionary consumption.

Similar with a country.  If they have a budget in which they could buy 50 bitcoin at once, then it might be to their advantage to use that money to buy bitcoin right away rather than waiting.

Personally, on a historical basis, whenever I have some kind of a lump sum amount come available, I tend to at least consider the amount in term of the three buying strategies 1) right away, 2) defer by time (DCA) and 3) defer by price (buy dips that might not happen).   So with the lump sum amount that we have available (like you mentioned in the hypothetical), we can choose how much to put within each of the categories, and we also likely would need to consider the income that we expect to be coming in, whether we project our income and expenses out 6-24 months or some other timeline that we consider to be reasonable for our circumstances.

Thanks for the detailed response (now I feel like I owe you something 😅)
Anyway, DCA sounds pretty logical and I guess it’s the only way to go for someone like me. It’ll take time to see good profits but  it’s better than not investing at all just because you think it’s too late and you need a huge amount to start

Actually, considering your rank and if I’m assuming that you’re a newbie or a beginner in bitcoin investment, I will advice you to focus more on buying bitcoin and accumulating enough bitcoin in your portfolio, instead of thinking about profit at the early stages of your bitcoin investment it’s totally ridiculous, especially when you’re a newbie, well for your information profit in bitcoin isn’t guaranteed which is why you should focus on having a discretionary income and also trying to improve your cashflow which will enable you to increase your discretionary income so you can buy more bitcoin.

You are right, a new bitcoin investor who just started accumulating bitcoin newly isn't meant to put much attention in profit making rather what they should focus on is how they can be consistently be buying bitcoin, they have no business about taking profit unless they are in for trading and short time gain which is not the bone of contention here. A new bitcoiner is supposed to be buying bitcoin until they have reached their bitcoin over-accumulation phase or target before they can think of taking little profit from their investment and still continue to accumulate bitcoin and hold.

[BluebloodCXVI]

Guys can do whatever they like and sometimes guys sell way too many bitcoin too soon because they think that it is a good idea to sell because their holdings are in profits.. and yeah, it can be difficult to get back those bitcoin after they had been sold...and sometimes guys will have regrets about that.  They had opportunities to really build wealth in bitcoin and then they ended up selling way too much too soon.

Okay, that means people cam sell some portions when they've held that long. I mean up to 8 years, if so then it's cool cause I was thinking otherwise and saw it as trading, so what's the rightful percentage to sell that won't be seen as selling too much.

Let's see if someone get up to $50k returns in Bitcoin in an interval of 8 years can the person take up to 50% profits and continue holding with the remaining or the percentage varies individually?

I doubt that you are thinking about either bitcoin portfolio maintenance and/or sustainable withdrawal in ways that will help you to make sure that you do not end up selling too much bitcoin too soon.

In other words, you are thinking about short-term dollar profits and/or even levels of profits that you either want to consume or perhaps invest in some inferior assets... so yeah, if you have difficulties recognizing/appreciating bitcoin as a superior asset, you are going to end up selling too much too soon.

And, also, why the fuck would there be any meaningful justification to sell 50% of your holdings merely because you are in profits.

Let's say for example, you had spent 8 years accumulating bitcoin, and then so at year 8 you largely stop accumulating bitcoin, and in year 10 or so, you decide to calculate the value of your holdings using the 200-WMA and my sustainable withdrawal tool so that you can start to withdraw something like 8% or 10% of your bitcoin holdings per year.... and so my sustainable withdrawal tool will help you to locate the monthly withdrawal rate, so it seems to me that if right now you were to have 10 BTC, you could perpetually and sustainably withdraw at $5k per month and give yourself a 7% raise each year... and yeah of course, you may need to monitor the situation, but having a $5k per month and then a 7% raise each year does not seem to be a bad situation for a guy to be in.

If you sell 5 bitcoin or some other large amount, then you end up fucking up your sustainable withdrawal rate, so yeah, with 5 BTC it ends up being $2,500 per month instead of $5k per month. .even though you end up still getting a 7% raise each year.

You’re right on that one, selling large fractions of a multi year bitcoin accumulation simply because the position looks profitable comes to me as a suboptimal approach to take, especially if the person’s goal is to maximize a lifetime spending power denominated in terms of Bitcoin.

So this means that a disciplined, percentage of stack (or 200-WMA-anchored) withdrawal plan that starts after accumulation and aims for sustainability is a more coherent strategy for someone who views Bitcoin as the superior long term asset.

[Bluedrem]

You are right, a new bitcoin investor who just started accumulating bitcoin newly isn't meant to put much attention in profit making rather what they should focus on is how they can be consistently be buying bitcoin, they have no business about taking profit unless they are in for trading and short time gain which is not the bone of contention here. A new bitcoiner is supposed to be buying bitcoin until they have reached their bitcoin over-accumulation phase or target before they can think of taking little profit from their investment and still continue to accumulate bitcoin and hold.

Rather than focusing on profits, early Bitcoin investors need to focus on growing their portfolio. When an investor focuses more on profits, they will be afraid of short-term Bitcoin price fluctuations. Since investing in Bitcoin is a long-term plan, it is important for investors to focus on maintaining their portfolio for a long time. Especially when people are currently considering Bitcoin as a next-generation asset and holding Bitcoin for the next generation, they need to focus more on the amount of Bitcoin rather than profits. In such a case, an individual can invest from their discretionary income in the DCA method without putting excessive pressure on their money.