Does the DCA strategy inspire newbies to invest?

[abaeze]

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.

Just wondering what even warrants some investors thinking of building emergency funds first before starting Bitcoin accumulation, fear of the unknown?. What's actually the benefits of doing that? So far, it can only means unnecessary delay and so has nothing tangible to offer an investor. There's nothing to rush about Bitcoin accumulation, that's you should accumulate as much Bitcoin as you can therefore no point delaying your starting time trying to do unnecessary and irrelevant preparation of keeping emergency funds first because of baseless fear before starting Bitcoin accumulation when both can happen progressively.

A preparation or condition like this (building emergency funds before starting Bitcoin accumulation) becomes necessary when second thing that will happen (Bitcoin accumulation) can't do without the first thing (building emergency funds).

There is no need to stop buying Bitcoin to build an emergency fund. But just because you have started buying Bitcoin doesn't mean that you no longer need an emergency fund. Because if the price of Bitcoin drops and you need emergency money at the same time, you may be forced to sell at a loss. One thing to remember is that it isn't the same to start buying Bitcoin late and invest aggressively without an emergency fund.

Suppose for eg: @Bluedrem and @samadam007 receive an extra $100 every month after meeting basic needs. @Bluedrem invests the entire $100 in Bitcoin every month. He doesn't have an emergency fund but @samadam007 invests $50 in Bitcoin and puts the remaining $50 in an emergency fund. Six months later, both of them suddenly lost their jobs and at the same time, the price of Bitcoin fell by 30%.

The value of the $600 invested in Bitcoin by @Bluedrem has decreased to $420. Now, to meet his living expenses, he may have to sell Bitcoin at a loss. On the other hand, @samadam007 has $300 worth of Bitcoin and an emergency fund of $300. Even if his Bitcoin price drops to $210, he doesn't have to sell Bitcoin to meet emergency expenses.The main difference here is that @samadam007 hasn't only accumulated Bitcoin but also built the ability to hold onto his investment.

So, it is more important to continue investing in Bitcoin by accumulating a little less Bitcoin and maintaining our financial security than to make the wrong decision to accumulate it quickly.

[Nwaswago]

It’s not necessary to have an emergency fund before you start to invest in Bitcoin. The most important thing you need to invest is having your discretionary income.

I will agree with you here...but know that Emergency funds that's not useful at the moment it arrives can be use to achieve another goal if it's use properly for its investment....but the most important thing is to invest what we can afford to lose..which using a discretionary income to invest, it serves as you're investing what you can afford losing....But at this time most of us who has been into bitcoin investment should have no all this things...because this kind of discussion has been discussed severally in this community....I think it's not a new thing for us again...

Even if it's not a new thing, there are newbies or even who understands slowly and need reminders, although I'll said as much as discretionary income is important in bitcoin investment, so is emergency funds,because at a period where there is an emergency without an emergency funds ,you might be forced to sell which isn't good or proper for investment in Bitcoin.

[BitcoinLogbook]

It could, especially for newbies with patience (as time would reward), investment amount could vary from $10 to $100K+ each trade.

[PhilosopherKing]

It could, especially for newbies with patience (as time would reward), investment amount could vary from $10 to $100K+ each trade.

DCa is an investment strategy that persons can use to ongoingly amass bitcoin over a long period of time. And trading should have no place while you DCa. Why is that is because trading is counterproductive method of growing your stash because you are selling instead of ongoingly acrueing what you bought.

Newbies especially needs to be extra careful because they are still building their bitcoin stash and may not yet have much. So they should avoid anything that is gonna foist them into trading. They should take every necessary precautions. Like them ongoingly investing with discretionary income and also saving emergency funds. Anything whatsoever should be done to keep the goal of investing going.

[Rhow]

DCA is a strategy, long term holding is an investment approach, they are not the same but far too often most people often confuse them for each other and you’re a prime example of those people who think that DCA guarantees you profitability cos you did it for the long term, that’s not how it works.
Your eventual returns will still depend on how the Bitcoin market performs, your average acquisition price and the time you eventually decide to sell. So having a long term mindset is not magically gonna turn an unprofitable investment into a profitable one.

Provided that you are consistent with your DCA for 4-10 years above, the size of your bitcoin will increase and you will be in profit even though, I know that profit isn't guaranteed

On the one hand, you said that if you buy regularly for a long time, you will make a profit. Then you said that the profit is not guaranteed, so which one should we actually assume? Because these two statements cannot be taken together as a sure decision. You may be buying regularly, which may cause the amount of Bitcoin you have collected to increase. But whether the market value of that Bitcoin will be higher than the total amount invested is a different matter. There may be enough arguments for buying regularly in the long term, it is not guaranteed that you will be in profit even if you do DCA for 4-10 years or more. You have to separate two things here. First, the increase in the amount of Bitcoin due to following DCA and the profit from the investment. I also believe that Bitcoin has good potential in the long term. Perhaps many people collect regularly because of the expectation that the price of Bitcoin will increase in the long term. But that expectation and the sure result are not the same.

[sotelorene]

Like you have explained any one investing who is having the mind of isolating volatility is making a serious mistake and should think other wise because the Bitcoin market is volatile weather you agree or not so you should be able to accept that as an investor and also the DCA strategy is not an escape for volatility it is only a strategy to help you seemlesly and comfortably accumulate Bitcoin over a period of time without having to stress or think of withdrawing your investment earlier than you should, do the DCA strategy is more like a strategy that helps for a longer term investment.

How do someone intend to isolate volatility when it is already the nature of Bitcoin and if volatility is taken away Bitcoin investment wil be boring because this momentum we do see either in the up side or down side will not longer be there which means Bitcoin will be so dull and slow so, i don't see anything wrong with the volatility of Bitcoin. Like I always say, the DCA is just a strategy and so strategy can not work on it own therefore, investor will be the one to make it work effectively by using it properly, there are people who are using the DCA method yet they are not doing great.

[Dxdiax26]

On the one hand, you said that if you buy regularly for a long time, you will make a profit. Then you said that the profit is not guaranteed, so which one should we actually assume? Because these two statements cannot be taken together as a sure decision. You may be buying regularly, which may cause the amount of Bitcoin you have collected to increase. But whether the market value of that Bitcoin will be higher than the total amount invested is a different matter. There may be enough arguments for buying regularly in the long term, it is not guaranteed that you will be in profit even if you do DCA for 4-10 years or more. You have to separate two things here. First, the increase in the amount of Bitcoin due to following DCA and the profit from the investment. I also believe that Bitcoin has good potential in the long term. Perhaps many people collect regularly because of the expectation that the price of Bitcoin will increase in the long term. But that expectation and the sure result are not the same.

Such ideas discourage many, especially beginners from using them as a lesson or encouragement to get started. This decision-making process can be difficult for many, who are sometimes just starting out in the world of Bitcoin investment. Therefore, I believe that everything we convey here is better understood and beneficial for all parties attracting them to invest by accumulating whatever amount of Bitcoin they desire.

Buying regularly is excellent for those with sufficient financial resources or income. However, don't say that investing is without guarantees. Although for some there may be no guarantees don't use language that generally discourages many from starting.

We all need to be mindful of this, and why would someone be so bold as to say that investing doesn't guarantee profits? What I need to say is that no one knows their future especially in long-term investing. Sometimes, at the end of an investment something can happen that can lead to rapid gains even exceeding their expectations. I think giving them an overview that makes them like investing so they are interested in buying Bitcoin to start investing in Bitcoin.

[Zackz5000]

I will invest in Bitcoin and plan to hold it for a long time, although I have not yet learned to analyze the market very well, but when I fully understand everything about the market, I will join the investment. However, I really like investing through the DCA strategy, especially since I understand that investing according to this strategy will reduce the risk a lot. The DCA method contributes a lot to long-term investment, so I am planning to practice this strategy and invest. Although I do not have much money at present, so I am not planning to invest now, but I want to invest with a sufficient amount of money. Moreover, investing through the DCA strategy I plan to buy it twice a month, and I plan to create an emergency fund. I am very interested in investing although the market is currently a bit deep, so I will continue to invest through the DCA strategy and hold it for a long time.

There is no need trying to analyze the market or waiting to have sufficient funds before you can start accumulating Bitcoin, also to invest in Bitcoin you don't have to understand everything about Bitcoin for you to get started what is actually needed is your common sense and also your discretionary income to kick start your accumulation journey, waiting to get everything in place before getting started could deprived you a lot this could make you to be postponing your investment until you miss out entirely, you can get started with your little discretionary income and alone the way you can figure out other things.

[Charcol]

No argument but I want to say that DCA strategy is used by two set of people, low capital investors and low risk takers investor. An investor has to fall within one of the categories to use DCA as his primary strategy to accumulate bitcoin.

That's actually not true. DCA strategists can equally have piles of money to invest in projects but want to maintain shrewdness in their investments. That an investor doesn't want to rush all in shows they suspect there's still gap to be filled downward. It means the investor knows what they're doing, not that they're scared of investing all at once.

Dca strategy can be used by anyone . Especially when come to investing in bitcoin , many do thought that dca is for those with low capital or those with low amount of money to invest . Due to market high volatility nature is one of the strategy that counter that volatility nature cause it give one the chance to buy at different price interval.

Most times even the rich tend to use dca strategy more cause they understand the importance of dca method when come to investing. So basically dca strategy is for anyone that don’t want to go all in at once with their funds , rather break it down .

The most important thing about the DCA strategy is that it is a great strategy to consistently create Bitcoin investments by completely isolating market volatility and not letting it affect the investment. The DCA strategy is equally suitable for everyone, anyone can manage their investment through this strategy with any amount. It is basically a method of maintaining investment discipline, when investing through this strategy, the investor should not worry unnecessarily about market volatility, and maintain mature stability towards their long-term goals. I think that in order to be suitable for investing properly through this strategy, one must first keep one's mentality right, because if you do not have a mentality to hold on for the long term, then you will definitely not be able to maintain the investment. And the DCA strategy can never give you anything good in the short term, and therefore one must first ensure that one maintains one's long-term stability.

You may talk about the advantages of DCA, but don't exaggerate. Buying Bitcoin at different times means you don't have to invest all your money at the same price. But that doesn't mean that the value of your previously purchased Bitcoin won't decrease. You should understand that regular purchases spread out the purchase time and price, but they don't eliminate market price risk.

For example, you may have been buying Bitcoin regularly for several years. During this time, you may have collected Bitcoins at high prices and at low prices. In such a situation, if the market price drops significantly, the value of your previously purchased Bitcoins will also decrease. Just because you are buying using the DCA strategy, you will not automatically be protected from that loss.

[Perfect-World]

Like you have explained any one investing who is having the mind of isolating volatility is making a serious mistake and should think other wise because the Bitcoin market is volatile weather you agree or not so you should be able to accept that as an investor and also the DCA strategy is not an escape for volatility it is only a strategy to help you seemlesly and comfortably accumulate Bitcoin over a period of time without having to stress or think of withdrawing your investment earlier than you should, do the DCA strategy is more like a strategy that helps for a longer term investment.

I get your points, but you must note this. While the DCA is cool and helps you accumulate Bitcoin bit by bit, making sure you build your back up funds alongside is majorly important because it is when you have a readily accessible emergency funds that you will be able to overcome tapping into your investment to handle emergency situations when they arise.

While you are DCAing, a moderate back up funds helps you stand the test of emergency situations, which is the main reason lot of investors sell unprepared. So a proper DCA must go with a suitable back up funds.

[Nuel0717]

Sniped

The dca strategy can be use by everyone unless those who are into trading, the rich uses the dca strategy to accumulate bitcoin and the poor can also use it but it's more of a relief to the poor people because with the dca strategy they can start buying bitcoin with a smaller amount when they have their discretionary income ready, the rich might regularly be using the dca strategy and some times lump sum when they feel it's necessary, if a poor person can be consistent with this accumulation using the dca strategy and hodl for long he could be able to accumulate a good amount of bitcoin stack in the future.

I know right, never said it's for only the rich, I'm trying to say they have the advantage of using other strategies and still be successful based on their level of financial capacity but still choose to DCA then why shouldn't poor people with little finance for investment take the DCA more seriously.

My point is based on the fact that some poor people would rather choose to wait for the dip before buying, thinking it's their best chance of owning it cheaply not knowing they should be more serious in accumulating with the DCA strategy.

[Obulis]

I will invest in Bitcoin and plan to hold it for a long time, although I have not yet learned to analyze the market very well, but when I fully understand everything about the market, I will join the investment. However, I really like investing through the DCA strategy, especially since I understand that investing according to this strategy will reduce the risk a lot. The DCA method contributes a lot to long-term investment, so I am planning to practice this strategy and invest. Although I do not have much money at present, so I am not planning to invest now, but I want to invest with a sufficient amount of money. Moreover, investing through the DCA strategy I plan to buy it twice a month, and I plan to create an emergency fund. I am very interested in investing although the market is currently a bit deep, so I will continue to invest through the DCA strategy and hold it for a long time.

Wow, here's Tony Adams making kick-starting Bitcoin investment so cumbersome for himself. Trying to understand your stand, a question ran through my mind, what else exactly does Tony Adams needs to get started with Bitcoin accumulation him haven gotten clear understanding of DCA strategy, emergency funds, long-term holding? And although you didn't mention directly discretionary funds but from your standing looking at your knowledge of emergency, it's obvious you know what discretionary funds is, then what's actually stopping Tony Adams from starting Bitcoin accumulation? You said you need more funds but that's not necessary mostly as DCA is the strategy, the sufficient amount that will be invested using DCA strategy is not a day journey so no need to keep wasting time waiting for nothing.

[As-Soon-As]

I know right, never said it's for only the rich, I'm trying to say they have the advantage of using other strategies and still be successful based on their level of financial capacity but still choose to DCA then why shouldn't poor people with little finance for investment take the DCA more seriously.

Investing in Bitcoin according to the DCA method certainly provides the most benefits, which is why both rich and poor users choose this DCA method as the right one. Then, it is urged to follow all the strategies on how to sustain their Bitcoin investment, so that beginners do not make mistakes and are able to sustain their Bitcoin investment for a long time. We advise people in such a way that they are able to hold Bitcoin more easily in the future.

My point is based on the fact that some poor people would rather choose to wait for the dip before buying, thinking it's their best chance of owning it cheaply not knowing they should be more serious in accumulating with the DCA strategy.

Those who wait before buying Bitcoin and look for opportunities for the price to fall are wrong to follow such a strategy. If the continuity of Bitcoin purchases is maintained, then of course you will be able to save on the purchase price, this is where the most benefits are obtained by holding it for a long time and following the continuity of regular purchases. The benefits that you can get by following this strategy and keeping Bitcoin investments for a long time.

[Loyang]

It could, especially for newbies with patience (as time would reward), investment amount could vary from $10 to $100K+ each trade.

Yes, every person needs to invest depending on their financial situation, every person's financial capacity is not the same, many have very low discretionary income and many have very high discretionary income. So it is the best decision for each person to continue investing continuously depending on their own financial situation.

But yes, we are discussing long-term investment in this thread, so do not confuse anyone by mentioning the word trade. Because many new people use this thread to learn about long-term investment, so when they see the word trade, they may be confused.

Each person can continue to buy continuously through discretionary income by adopting the DCA method depending on their financial situation. If a person's discretionary income source is $10, he can continue to invest

[Gravitypull$]

In such a situation, if the market price drops significantly, the value of your previously purchased Bitcoins will also decrease. Just because you are buying using the DCA strategy, you will not automatically be protected from that loss.

Just because the dollar value of your bitcoin stash decreases during a drastic dip doesn't mean that you are at loss because the price of bitcoin will bounce back after a while. It's when you sell during that drastic dip that you are at loss but if you don't sell, you are not. This is why bitcoin is a long term investment in order to reduce the risk attached to the volatile nature of bitcoin.

First, the increase in the amount of Bitcoin due to following DCA and the profit from the investment. I also believe that Bitcoin has good potential in the long term. Perhaps many people collect regularly because of the expectation that the price of Bitcoin will increase in the long term. But that expectation and the sure result are not the same.

One thing that you should consider is the fact that, it's not everyone that invest for profit, some invest in bitcoin to preserve their wealth which is the reason why if you ongionly accumulate bitcoin overtime for your future, you will be in a better position that one who didn't take his DCA purchase seriously.

[Fara Chan]

It could, especially for newbies with patience (as time would reward), investment amount could vary from $10 to $100K+ each trade.

Beginners who want to invest must not only consider their initial capital but also consider a method that's relevant to them. Investment capital must be free from any risk to ensure it's maintained and continues to grow in a positive direction, ensuring investors don't use capital or funds tied up for other needs. The timing should also be determined from the outset, such as within the next few years or even ten years from now.

[cocadalcan]

Like you have explained any one investing who is having the mind of isolating volatility is making a serious mistake and should think other wise because the Bitcoin market is volatile weather you agree or not so you should be able to accept that as an investor and also the DCA strategy is not an escape for volatility it is only a strategy to help you seemlesly and comfortably accumulate Bitcoin over a period of time without having to stress or think of withdrawing your investment earlier than you should, do the DCA strategy is more like a strategy that helps for a longer term investment.

How do someone intend to isolate volatility when it is already the nature of Bitcoin and if volatility is taken away Bitcoin investment wil be boring because this momentum we do see either in the up side or down side will not longer be there which means Bitcoin will be so dull and slow so, i don't see anything wrong with the volatility of Bitcoin. Like I always say, the DCA is just a strategy and so strategy can not work on it own therefore, investor will be the one to make it work effectively by using it properly, there are people who are using the DCA method yet they are not doing great.

Bitcoin price volatility is one of its fundamental characteristics. This volatility can be more advantageous for investors because an investor will accumulate Bitcoin at different prices without waiting for the price to fall. To stay in this mode, you will have to accumulate Bitcoin in the DCA method. DCA method is the most effective strategy for accumulating Bitcoin in the case of price volatility. You accumulate Bitcoin through discretionary income and continue this process continuously without waiting for any dip or rise.

I don’t actually know anyone who has not gotten good results by accumulating Bitcoin in the DCA method. I see many investors accumulating Bitcoin in this method. This method will work for you and everyone if you can apply a long term strategy, maybe you will have to do DCA regularly for 4 years or 10 years.

Don’t expect to get rich quick- build Bitcoin holding and do DCA regularly regardless of the market price.