Does the DCA strategy inspire newbies to invest?

[samadam007]

instead of investing the entire amount of money left over from a person's income after meeting basic needs in Bitcoin, it is necessary to deposit some money in the emergency fund until an emergency fund is ready and he can buy Bitcoin with some of it. However, when the size of the emergency fund is a little larger (usually when the amount of money in the bank is enough to cover three months of expenses), then the investor can invest aggressively in Bitcoin if he wants, that is, he can operate the DCA method with most of his discretionary income.

So you expect folks to start building emergency funds to a certain level first before kickstarting their Bitcoin accumulation? Why would you want to first build your financial cushion when there’s nothing for it to protect. Make it make sense. There’s no point delaying your purchase after you’ve calculated how much will go to bitcoin and building backup from your discretionary income. Just start investing, then backup fund can be built alongside, this is a better approach.

[Decimetre]

Investing in Bitcoin using the DCA method is highly recommended for both beginners and experienced investors. Besides its simplicity, it eliminates the need for market analysis. Buy at any price, and afterward, forget about it, consider it lost or locked up money.
I've tried it before, but I failed to meet my target, and I also lacked discipline. The DCA method is ideal for long-term investments (1-4 years), but I only managed it for 6 months. How can others succeed for years?

Too bad that you been here for more than 11 years, and you still have not figured out that bitcoin investing is 4-10 years or longer. If you are buying with a timeline that is less than 4 years then you are more likely trading rather than investing. 

I find it difficult to believe that he has spent 11 years on this forum because this is a basic knowledge and has been repeated over and over again. Holding bitcoin should go at least through one bitcoin cycle which is 4 years interval. It is very important for a beginners to set an initial holding period of at least 4 to 10 years and after that, he may continue holding further or selling in parts.

And many guys might spend 4 years or more just building their bitcoin holdings, so they will have some older bitcoin buys that are close to 4 years or more, and then other buys that they just made recently.

The continuous buying of bitcoin comes with its own discipline. At the end of the 4 years, when the person has perhaps made a profit on his early buys and has made profit over his cumulative buys, he still remembers that the amount of profit made on his later buys may have not been enough for him, this drives him into sometimes going into another round of holding. His investment lingers and lingers. He is happy that he is holding and he doesn't want to run at loss on any of his investment bit, so he continues and goes on to see ATH repeatedly (perhaps).

It seems a bit strange that a guy would spend 4 years or more DCA buying bitcoin, and then just sell it all. How could that be anything other than trading?  DCA is better for investing rather than trading, especially since most guys should have an investment timeline of 10 years or longer, unless they have age and/or health considerations that do not allow them to invest for 10 years or longer, and then those guys would have a short-term investment timeline, yet that short term investment timeline should still be at least 4 years.

This is very true. When a guy has the patience to DCA through a period of initial 4 years, he has seen bitcoin through a complete cycle and in most cases, such person feels likes himself for keeping it consistent all through that years. He would hardly wake up and sell off his bitcoin completely because he already got used to holding bitcoin. He may sell a part in the event of financial needs but he will wish to continue buying more bitcoin to expand his stash.

The major challenge comes with the early phase of bitcoin investment, when you still have to deal with convincing yourself to be patient. The initial stage when you first start experiencing the effects of volatility. Once you conquer that urge to sell in that early stage, you can be able to go as long as possible without any panic or very minimal panic.

[Bluedrem]

So you expect folks to start building emergency funds to a certain level first before kickstarting their Bitcoin accumulation? Why would you want to first build your financial cushion when there’s nothing for it to protect. Make it make sense.

Okay. Suppose you have started investing in Bitcoin using the DCA method and after starting, your portfolio already has $1,000 worth of Bitcoin or less in it. In that case, if you do not have an emergency fund, what will you do if an emergency arises at that moment? Of course, then you will need to liquidate your Bitcoin portfolio. In this case, if you need to liquidate your Bitcoin portfolio at the beginning, you may lose your motivation to invest, right? Also, would it be good if you need to liquidate your Bitcoin portfolio due to an emergency right after starting your investment? In this case, if you had an emergency fund available at that moment, would you need to sell your Bitcoin portfolio?
Remember, emergency funds are needed at any time, not only in investment, but also to deal with any emergency in life.

There’s no point delaying your purchase after you’ve calculated how much will go to bitcoin and building backup from your discretionary income. Just start investing, then backup fund can be built alongside, this is a better approach.

It's a matter of personal preference. Some people may create an emergency fund before investing, while others may create an emergency fund along with investing.

[Joeboy]

So you expect folks to start building emergency funds to a certain level first before kickstarting their Bitcoin accumulation? Why would you want to first build your financial cushion when there’s nothing for it to protect. Make it make sense.

Okay. Suppose you have started investing in Bitcoin using the DCA method and after starting, your portfolio already has $1,000 worth of Bitcoin or less in it. In that case, if you do not have an emergency fund, what will you do if an emergency arises at that moment? Of course, then you will need to liquidate your Bitcoin portfolio. In this case, if you need to liquidate your Bitcoin portfolio at the beginning, you may lose your motivation to invest, right? Also, would it be good if you need to liquidate your Bitcoin portfolio due to an emergency right after starting your investment? In this case, if you had an emergency fund available at that moment, would you need to sell your Bitcoin portfolio?
Remember, emergency funds are needed at any time, not only in investment, but also to deal with any emergency in life.

There’s no point delaying your purchase after you’ve calculated how much will go to bitcoin and building backup from your discretionary income. Just start investing, then backup fund can be built alongside, this is a better approach.

It's a matter of personal preference. Some people may create an emergency fund before investing, while others may create an emergency fund along with investing.

Surely, there is no doubt that emergency funds is very important...But then again, the idea of waiting to have your emergency in place first could very well enable one to miss out on their buying opportunity...It would instead make a whole lot of sense to kickstarting your investment journey and then build your emergency funds as you go..For example if you are having $80 as your discretionary income after you must have settled your basic needs and responsibility, one could very well divide the amount into two portions and use one of the portions to invest and the other to build their emergency funds...The exact amount to allocate would depend solely on one's very own circumstances...My point exactly is that one could every week make progress towards both goals--of investing and building emergency funds, without having to give room for any sort of trade-offs..

[Moreno233]

There’s no point delaying your purchase after you’ve calculated how much will go to bitcoin and building backup from your discretionary income. Just start investing, then backup fund can be built alongside, this is a better approach.

It's a matter of personal preference. Some people may create an emergency fund before investing, while others may create an emergency fund along with investing.

Personal decision is not supposed to make someone adopt what is wrong because it will delay his progress and sometimes alter his achievements. The proper thing to do is started with the investment before considering setting up emergency funds which means money used to protect the investment. Trying to build up emergency funds before starting the investment, there is a high chance he may not start because something can come up and the money spent in something else. In addition,  such delays waste precious time that the investor would have used to accumulate substantial amount of Bitcoin.

[ChocolateBitcoinK]

So you expect folks to start building emergency funds to a certain level first before kickstarting their Bitcoin accumulation? Why would you want to first build your financial cushion when there’s nothing for it to protect. Make it make sense.

Okay. Suppose you have started investing in Bitcoin using the DCA method and after starting, your portfolio already has $1,000 worth of Bitcoin or less in it. In that case, if you do not have an emergency fund, what will you do if an emergency arises at that moment? Of course, then you will need to liquidate your Bitcoin portfolio. In this case, if you need to liquidate your Bitcoin portfolio at the beginning, you may lose your motivation to invest, right? Also, would it be good if you need to liquidate your Bitcoin portfolio due to an emergency right after starting your investment? In this case, if you had an emergency fund available at that moment, would you need to sell your Bitcoin portfolio?
Remember, emergency funds are needed at any time, not only in investment, but also to deal with any emergency in life.

There’s no point delaying your purchase after you’ve calculated how much will go to bitcoin and building backup from your discretionary income. Just start investing, then backup fund can be built alongside, this is a better approach.

It's a matter of personal preference. Some people may create an emergency fund before investing, while others may create an emergency fund along with investing.

Your point is logical, but one thing to remember is that an emergency fund should not be a reason to delay Bitcoin investment. If you do not have a Bitcoin investment at the beginning and an emergency fund at the same time, then the question naturally arises that which should I start first? Emergency savings? Or Bitcoin investment? In this case, the simplest and most logical solution is to start both together, neither should you delay your Bitcoin investment and create an emergency fund first, nor should you start investing without an emergency fund, but rather, with your discretionary income, for example $50, you invest $25 in Bitcoin in the initial state and continue to build an emergency savings with other $25. In this case, your investment is not being delayed and at the same time, your emergency savings are also being created. In fact, if you think about it simply, a solution can be found through anything, but when people have a tendency not to invest, they make a lot of excuses.

[PhilosopherKing]

It's a matter of personal preference. Some people may create an emergency fund before investing, while others may create an emergency fund along with investing.

Because person have the freedom to pick how they will invest doesn't make it smart to begin fucking around with building back up funds when they have no stash yet.

I don't know how you are seeing it man, but I think that it not looking smart for person to be building backup when they don't yet have any stash to protect. And it is because fiat can loose value, and when you dump all your hard earning in saving for emergency funds, it could begin loosing value before you even begin to accumulate and build up your stash.

Imo, it is better that as you are ongoingly investing, you are also saving for your emergency funds. What matter is that you have solved your necessary expenses and the money remaining can be spliteed into three places, one part for investing, the other part for backup funds and the last part for discretionary spending. This way keeps everything balanced because person is growing their stash while also still preparing for emergency and also other discretionary spending.

[Brizi5000]

This is very true. When a guy has the patience to DCA through a period of initial 4 years, he has seen bitcoin through a complete cycle and in most cases, such person feels likes himself for keeping it consistent all through that years. He would hardly wake up and sell off his bitcoin completely because he already got used to holding bitcoin. He may sell a part in the event of financial needs but he will wish to continue buying more bitcoin to expand his stash.

The major challenge comes with the early phase of bitcoin investment, when you still have to deal with convincing yourself to be patient. The initial stage when you first start experiencing the effects of volatility. Once you conquer that urge to sell in that early stage, you can be able to go as long as possible without any panic or very minimal panic.

How long will such investor continue buying and selling and buying and selling again his bitcoin investment in the event of financial needs? That’s not a good long term planning for an investor whose goal is to invest for long term because it will be difficult to meet his accumulation target and hold to achieve his long term objective.

This clearly shows that the investor is actually investing with an amount that’s not his discretionary income, he has invested with the money he will be needing soon for basic financial needs. It is advisable for an investor to always sort out his financial needs especially the most basic financial necessities before investing In bitcoin. A long term investor should also be able to build an emergency funds or reserve funds to enable him not to sell his bitcoin investment when in any financial emergency needs.

[Shineup]

This is very true. When a guy has the patience to DCA through a period of initial 4 years, he has seen bitcoin through a complete cycle and in most cases, such person feels likes himself for keeping it consistent all through that years. He would hardly wake up and sell off his bitcoin completely because he already got used to holding bitcoin. He may sell a part in the event of financial needs but he will wish to continue buying more bitcoin to expand his stash.

The major challenge comes with the early phase of bitcoin investment, when you still have to deal with convincing yourself to be patient. The initial stage when you first start experiencing the effects of volatility. Once you conquer that urge to sell in that early stage, you can be able to go as long as possible without any panic or very minimal panic.

How long will such investor continue buying and selling and buying and selling again his bitcoin investment in the event of financial needs? That’s not a good long term planning for an investor whose goal is to invest for long term because it will be difficult to meet his accumulation target and hold to achieve his long term objective.

This clearly shows that the investor is actually investing with an amount that’s not his discretionary income, he has invested with the money he will be needing soon for basic financial needs. It is advisable for an investor to always sort out his financial needs especially the most basic financial necessities before investing In bitcoin. A long term investor should also be able to build an emergency funds or reserve funds to enable him not to sell his bitcoin investment when in any financial emergency needs.

I don't think if there is anything wrong if an investor who has been able to at least completed a cycle which is four years of accumulating and holding his bitcoin and in profits decides to sell part of his value in Bitcoin to satisfied anything that could be of his financial demands, remember that four good years has already passed and that for me didn't show or proved the money invested wasn't from a discretionary income, the only part of this I will frame at is selling off all your Bitcoin completely after four to buy back simply because you are used to holding no, that means you are starting all over again which doesn't make sense instead you can sell part after the four years, personally I wouldn't consider such person less of a good long term investor in respect to the one cycle which is four years he was able to hold.

[Abelly]

DCA strategy doesn't make you consistent, consistency comes from personal decision and dedication to your ongoing investment journey. Some investors can be doing DCA and decide to skip a some buying periods out of indiscipline and lack of dedication. So for you to remain consistent, you must make that decision to show more seriousness and not to miss out buying as long as you've your discretionary income available.

DCA only provides the opportunity to buy in bits and spread your Bitcoin buys over a longer period of time to accumulate a sizeable portfolio for yourself on the long-run. It also helps to eliminate the financial burden of having to buy a large quantity of Bitcoin at once. Your level of consistency is a reflection of your dedication to your ongoing accumulation journey.

There is nothing wrong if an investor is using the dca strategy to buy bitcoin and maybe skip off some weeks or months with out buying bitcoin, it could be that they don't have any discretionary income to buy with at the time and they can't sell rather still hold and buy when they have any discretionary income available, it's not every weeks or months that you will have discretionary income, so investors may have but certainly not all, skipping off some days doesn't still mean you are not been consistent as long as it's not taking a long time to start buying BTC again.

Its main purpose is to reduce the amount of investment, that is, you can temporarily reduce the amount of your weekly or monthly budget by 50% or a little more without stopping the bitcoin investment, and when the price of bitcoin in the market is high, then reduce the amount of purchase and when the price is low, you should increase the amount of purchase so that you do not have to stop buying bitcoin for several weeks and months and can buy bitcoin regularly.

If your income decreases or your monthly expenses increase, it is certainly logical to reduce the purchase amount. We should first focus on meeting our essential expenses, and then, if we have any discretionary income, we should adjust our purchase plan accordingly. But I doubt whether reducing the purchase amount just because the price seems high is the right decision at all. When you are making a purchase decision based on price fluctuations, it is relying on market speculation. But making a decision based on your real financial situation due to a decrease in income or an increase in expenses is a reaction to your real financial situation. When your financial situation improves again, you may start buying normally again. But if you are thinking about market speculation, you will always be making decisions based on fluctuations, which may slow down your savings process. I often read here, where it is said that investing is not based on one-day price speculation, which you should also know.

[Nuel0717]

I don't think if there is anything wrong if an investor who has been able to at least completed a cycle which is four years of accumulating and holding his bitcoin and in profits decides to sell part of his value in Bitcoin to satisfied anything that could be of his financial demands, remember that four good years has already passed and that for me didn't show or proved the money invested wasn't from a discretionary income, the only part of this I will frame at is selling off all your Bitcoin completely after four to buy back simply because you are used to holding no, that means you are starting all over again which doesn't make sense instead you can sell part after the four years, personally I wouldn't consider such person less of a good long term investor in respect to the one cycle which is four years he was able to hold.

Although 4 years is the minimum of how long an investor is meant to hold but when we're talking about long term holding you're looking at 2 circles or a decade and more, according to what I've learnt here. Well every has a choice and if the investors target is to hold for 4 years before taking profits, maybe it's not a bad idea.

Like you said, which i support that all the holdings shouldn't be sold, an investor should spend 4 years holding just to sell it all when the target is met, Bitcoin is a continuous investment therefore some portions can be sold then the remaining still held for more possible future returns.

[Taskford]

Investing in Bitcoin using the DCA method is highly recommended for both beginners and experienced investors. Besides its simplicity, it eliminates the need for market analysis. Buy at any price, and afterward, forget about it, consider it lost or locked up money.
I've tried it before, but I failed to meet my target, and I also lacked discipline. The DCA method is ideal for long-term investments (1-4 years), but I only managed it for 6 months. How can others succeed for years?

Too bad that you been here for more than 11 years, and you still have not figured out that bitcoin investing is 4-10 years or longer. If you are buying with a timeline that is less than 4 years then you are more likely trading rather than investing. 

And many guys might spend 4 years or more just building their bitcoin holdings, so they will have some older bitcoin buys that are close to 4 years or more, and then other buys that they just made recently.

It seems a bit strange that a guy would spend 4 years or more DCA buying bitcoin, and then just sell it all. How could that be anything other than trading?  DCA is better for investing rather than trading, especially since most guys should have an investment timeline of 10 years or longer, unless they have age and/or health considerations that do not allow them to invest for 10 years or longer, and then those guys would have a short-term investment timeline, yet that short term investment timeline should still be at least 4 years.

Well those situation he have said actually contradicts the main purpose of DCA. Since the main point doing that is to be consistent and not to aim short term goals.

Selling all their accumulated Bitcoins when 4 years timeline came is not actually good decision to do. If their aim is for long term, then use that strategy, since what I believe if you mean DCA its smooth accumulation until you reach for a decade.

In real time not all have guts to reach that timeline, since unfortunately only few investors survives. But still I admire those people try to exert of effort doing this, since maybe if they fail on their first try and maybe this is situation happened to him, since he talks about selling in 4 years. He could try to prolong his accumulation journey and hit the real purpose of DCA strategy.

[Showlove01]

Your point is logical, but one thing to remember is that an emergency fund should not be a reason to delay Bitcoin investment. If you do not have a Bitcoin investment at the beginning and an emergency fund at the same time, then the question naturally arises that which should I start first? Emergency savings? Or Bitcoin investment? In this case, the simplest and most logical solution is to start both together, neither should you delay your Bitcoin investment and create an emergency fund first, nor should you start investing without an emergency fund, but rather, with your discretionary income, for example $50, you invest $25 in Bitcoin in the initial state and continue to build an emergency savings with other $25. In this case, your investment is not being delayed and at the same time, your emergency savings are also being created. In fact, if you think about it simply, a solution can be found through anything, but when people have a tendency not to invest, they make a lot of excuses.

Why are you confusing or contradicting yourself? you have already said that unavailability of emergency funds should not delay one from investing in bitcoin which is correct so, why are you now saying that an investor need the both to start and that they can not start without the other, this is very contradicting because i do not know the information you are trying to convey to people here and be mindful of what you say so you do not cause confusion in the midst of newbie because most of them are very fragile and gullible. It is not reasonable to invest with $25 and save $25 for emergency if you have $50 because your investment money should not be the same with your emergency funds.

[cxtreenal]

I don't think if there is anything wrong if an investor who has been able to at least completed a cycle which is four years of accumulating and holding his bitcoin and in profits decides to sell part of his value in Bitcoin to satisfied anything that could be of his financial demands, remember that four good years has already passed and that for me didn't show or proved the money invested wasn't from a discretionary income, the only part of this I will frame at is selling off all your Bitcoin completely after four to buy back simply because you are used to holding no, that means you are starting all over again which doesn't make sense instead you can sell part after the four years, personally I wouldn't consider such person less of a good long term investor in respect to the one cycle which is four years he was able to hold.

Although 4 years is the minimum of how long an investor is meant to hold but when we're talking about long term holding you're looking at 2 circles or a decade and more, according to what I've learnt here. Well every has a choice and if the investors target is to hold for 4 years before taking profits, maybe it's not a bad idea.

Like you said, which i support that all the holdings shouldn't be sold, an investor should spend 4 years holding just to sell it all when the target is met, Bitcoin is a continuous investment therefore some portions can be sold then the remaining still held for more possible future returns.

Although you have the freedom to do whatever you want. The two-decade period may be excessive. This is the main thing for you to invest to make a profit. When it comes to Bitcoin investment, it is necessary to keep it covered in an extra safety net because your objective is to make a profit. It should not be like gambling. It is better to have a long term investment strategy, given that short term trading strategies are very much like gambling.

If you have a minimum of 4 years and a maximum of 10 years of Bitcoin accumulation period, you can achieve sufficient maturity in your investment. Although profitability depends on how regular you are during this period. But if you do DCA regularly for 10 years, you can stand on a strong foundation. If you are in a profitable position in each cycle it may be right for strategic reasons to create liquidity of some part of the profits. But if it is not very necessary it is wise to building continue Bitcoin holdings.

[ChocolateBitcoinK]

I don't think if there is anything wrong if an investor who has been able to at least completed a cycle which is four years of accumulating and holding his bitcoin and in profits decides to sell part of his value in Bitcoin to satisfied anything that could be of his financial demands, remember that four good years has already passed and that for me didn't show or proved the money invested wasn't from a discretionary income, the only part of this I will frame at is selling off all your Bitcoin completely after four to buy back simply because you are used to holding no, that means you are starting all over again which doesn't make sense instead you can sell part after the four years, personally I wouldn't consider such person less of a good long term investor in respect to the one cycle which is four years he was able to hold.

Although 4 years is the minimum of how long an investor is meant to hold but when we're talking about long term holding you're looking at 2 circles or a decade and more, according to what I've learnt here. Well every has a choice and if the investors target is to hold for 4 years before taking profits, maybe it's not a bad idea.

Like you said, which i support that all the holdings shouldn't be sold, an investor should spend 4 years holding just to sell it all when the target is met, Bitcoin is a continuous investment therefore some portions can be sold then the remaining still held for more possible future returns.

Although you have the freedom to do whatever you want. The two-decade period may be excessive. This is the main thing for you to invest to make a profit. When it comes to Bitcoin investment, it is necessary to keep it covered in an extra safety net because your objective is to make a profit. It should not be like gambling. It is better to have a long term investment strategy, given that short term trading strategies are very much like gambling.

If you have a minimum of 4 years and a maximum of 10 years of Bitcoin accumulation period, you can achieve sufficient maturity in your investment. Although profitability depends on how regular you are during this period. But if you do DCA regularly for 10 years, you can stand on a strong foundation. If you are in a profitable position in each cycle it may be right for strategic reasons to create liquidity of some part of the profits. But if it is not very necessary it is wise to building continue Bitcoin holdings.

A plan to collect Bitcoin for 4–10 years may be good. Some may decide to invest after 4–5 years of investment according to their needs. Others may hold Bitcoin for 10 years or more. There is no guarantee that investing for a long time will definitely bring profit. Many people delay investing while trying to predict when the market will rise or fall. Such decisions can hinder long-term planning. If you buy Bitcoin regularly you do not have to worry too much about every fluctuation in the market. In this way DCA can be followed. So that financial stress does not arise. Trying to sell Bitcoin repeatedly and buy it again at a lower price in the hope of making a profit in each market cycle creates pressure to determine the right time. It is more reasonable to focus on your long-term plan rather than trying to profit from short-term price fluctuations.

Money that may be used for emergencies should not be kept in Bitcoin. Having emergency savings separate reduces the possibility of being forced to sell Bitcoin during a market downturn. The goal in investing should be to accumulate assets regularly according to one's ability and avoid unnecessary purchases and sales. No fixed period guarantees profits. A realistic plan makes long-term investing more disciplined.