Does the DCA strategy inspire newbies to invest?

[Showlove01]

I agree with you. But what I think is that in investing in bitcoin, just patience, large capital or following a specific strategy is not enough. A person's own financial condition and how long he can continue investing in bitcoin or whether he can buy a lot of bitcoin at once and hold it during market volatility should be considered at the beginning. There are many people who do not give importance to backup funds, but have a long-term mindset. Due to strong income, he continues investing without a backup fund. But when the need for money arises for some urgent work, that person suffers losses. A new investor should always remember one thing, that is, there is no guarantee that the price of bitcoin will increase. But the person should start investing by understanding in advance how much amount he will invest in bitcoin, how much risk he can take.

How do someone survive in Bitcoin investment if they don't have patient? Of course patient is needed but we don't actually need a large Capital to be able to invest in Bitcoin rather what someone need is their discretionary income and of course you can not start any business without sorting or figuring out the strategies or methods to use in order to achieve your goal or target because without figuring this out, it will look like someone doesn't know what they are doing and it's very wrong to start something without having a strategy.

[Silikiem]

I agree with you. But what I think is that in investing in bitcoin, just patience, large capital or following a specific strategy is not enough. A person's own financial condition and how long he can continue investing in bitcoin or whether he can buy a lot of bitcoin at once and hold it during market volatility should be considered at the beginning. There are many people who do not give importance to backup funds, but have a long-term mindset. Due to strong income, he continues investing without a backup fund. But when the need for money arises for some urgent work, that person suffers losses. A new investor should always remember one thing, that is, there is no guarantee that the price of bitcoin will increase. But the person should start investing by understanding in advance how much amount he will invest in bitcoin, how much risk he can take.

A brand new investor only needs to consider if there’s availability of discretionary income to use and start investing in bitcoin. You must not consider buying a lot of bitcoin at once Before buying bitcoin, one must not buy a lot of bitcoin at once even if it’s at the beginning or not before they can get to start investing in bitcoin. It is advisable that you should buy and invest in bitcoin with your discretionary income according to your financial means, invest with only what you can afford to hold for a long time without panicking to sell during market downturns. Don’t use money meant to sort out your basic needs to invest in bitcoin. Neglecting to build up an emergency/back up funds to your bitcoin investment means that you’re gambling with your investment as you will sell off your holdings when you’re in an emergency situation thereby destructing your long term investment goal.

[NewRevelation]

 But what I think is that in investing in bitcoin, just patience, large capital or following a specific strategy is not enough. A person's own financial condition and how long he can continue investing in bitcoin or whether he can buy a lot of bitcoin at once and hold it during market volatility should be considered at the beginning.

You think it's right for a beginner to consider all these points before starting? I think that's weigh too much and might be worrisome and much of pressure on the newbie.

All what a newbie needs to start, or what he must think about is his ability to figure out his discretionary income. If the discretionary income is made available, with DCA, then he can begin his investment. Of course, it will take the newbie sometime to strike some balances and figure out best ways to carry on his investment. But with time, he would adjust and make things better, while using the DCA strategy.

[ChocolateBitcoinK]

 But what I think is that in investing in bitcoin, just patience, large capital or following a specific strategy is not enough. A person's own financial condition and how long he can continue investing in bitcoin or whether he can buy a lot of bitcoin at once and hold it during market volatility should be considered at the beginning.

You think it's right for a beginner to consider all these points before starting? I think that's weigh too much and might be worrisome and much of pressure on the newbie.

All what a newbie needs to start, or what he must think about is his ability to figure out his discretionary income. If the discretionary income is made available, with DCA, then he can begin his investment. Of course, it will take the newbie sometime to strike some balances and figure out best ways to carry on his investment. But with time, he would adjust and make things better, while using the DCA strategy.

You should not start anything on impulse, first you need to have a good idea about your investment and consider your capabilities, do you have the financial capacity to invest consistently? No matter how small it is, it is not a problem, but it must be money that you can hold for the long term without any problems.

The matter should be taken lightly, you do not need much to start investing, just your right mindset, the amount of money that you can hold for the long term excluding all your necessary expenses, that's all. Even if it is small, there is no problem but the investment must be consistent, the objective must be maintained for the long term, not short-term expectations. And the most suitable strategy to start investing for long-term purposes is the DCA strategy, you can start investing by knowing its basics, very easily without any additional problems, but you need to have the desire.

[BitcoinLogbook]

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.

Well said, and agreed.

Bitcoin has growth potentials, but its fluctuation and challenges still pose risks, especially in this unprecedented era of AI + crypto.

In theory your current investment would grow significantly eventually (in ? years), but it does not mean you can go all-in or invest money that you can't afford to lose.

[BATMAN07]

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.

Well said, and agreed.

Bitcoin has growth potentials, but its fluctuation and challenges still pose risks, especially in this unprecedented era of AI + crypto.

In theory your current investment would grow significantly eventually (in ? years), but it does not mean you can go all-in or invest money that you can't afford to lose.

Being optimistic about the future of Bitcoin and investing beyond your means are completely different things. However one thing needs to be made clear here just because you believe in Bitcoin's growth potential does not mean that you have to invest all your available capital. Again staying away from investment just because there is risk is not a reasonable reason.

For me the main thing is to create an investment position according to your financial capacity. After meeting necessary expenses how much of the money you really have as discretionary income to invest in Bitcoin and how much to keep as an emergency fund or backup is important. Because the purpose of risk management is not to completely eliminate risk but to invest in such a way that even if the market falls sharply, your financial situation is not in danger.

There may be concerns about changes in AI or the crypto ecosystem but just because the era of new technology has arrived the long term potential of Bitcoin is not canceled.

So in my view the right approach is to believe in Bitcoin's potential, but not to abandon your risk management because of that belief. Consistently accumulate within your means maintain necessary backup funds and refrain from investing money that if lost would jeopardize your lifestyle or financial security.

[Frankolala]

Bitcoin has growth potentials, but its fluctuation and challenges still pose risks, especially in this unprecedented era of AI + crypto.

Bitcoin is a volatile asset and that wouldn't change which is why you should only invest in a long-term to limit the risk associated with its volatile nature. Buy and build your bitcoin stash with DCA and hodli for long wouldn't do any harm to you instead, it will put you in a better position than those that are not investing in bitcoin.

Every investment have risk even traditional investment and no investment is 100% risk free. The highest risk is when you have the money to invest in bitcoin and you did not. AI has nothing to do with bitcoin because all the hacks wasn't about bitcoin network code but centralized services and bitcoin network is secured due to mining and steady upgrade on the network. Shitcoins are no challenge to bitcoin.

In theory your current investment would grow significantly eventually (in ? years), but it does not mean you can go all-in or invest money that you can't afford to lose.

If you invest with what you cannot afford to lose, you are only gambling and not investing because if your needs arises, you will sell the bitcoin you bought at loss if the price of bitcoin is below your entry point.

[cyberninja2]

You should not start anything on impulse, first you need to have a good idea about your investment and consider your capabilities, do you have the financial capacity to invest consistently? No matter how small it is, it is not a problem, but it must be money that you can hold for the long term without any problems.

The matter should be taken lightly, you do not need much to start investing, just your right mindset, the amount of money that you can hold for the long term excluding all your necessary expenses, that's all. Even if it is small, there is no problem but the investment must be consistent, the objective must be maintained for the long term, not short-term expectations. And the most suitable strategy to start investing for long-term purposes is the DCA strategy, you can start investing by knowing its basics, very easily without any additional problems, but you need to have the desire.

One important consideration for anyone starting to invest is that otherwise, it's very difficult to develop our investments. The amount we invest isn't necessarily an obstacle or a requirement, but rather a capacity we possess, even if it's a small amount. However, investing will be easier because the money we invest is money that can be used for long-term investments.

There's nothing wrong with investing, even a small amount. I completely agree with your idea, especially nowadays. Many people want to invest, but their income is very low. It's not that they don't want to invest, but rather that they must balance their income and expenses first, so that when they invest, there are no obstacles.

[Qhunman]

There's nothing wrong with investing, even a small amount. I completely agree with your idea, especially nowadays. Many people want to invest, but their income is very low. It's not that they don't want to invest, but rather that they must balance their income and expenses first, so that when they invest, there are no obstacles.

People incomes differs in sizes, so what you consider as a small income may not actually be small in another person eyes. Some people could be earning 100$ and complain that it's small. Even though your income is low but you have have a good money management skill, you can utilise your income properly to cover all your basic needs, generate your discretionary income and invest in bitcoin. If what you have left after you have covered for all your basic needs is 20$, you can split it into three parts, use $10 to buy bitcoin, save $5 for your emergency fund and keep the remaining $5 for your discretionary consumption. Then secure another job as you are investing and build your emergency fund stimutanously and use that second job as your source of discretionary income.

[Junii]

People incomes differs in sizes, so what you consider as a small income may not actually be small in another person eyes. Some people could be earning 100$ and complain that it's small. Even though your income is low but you have have a good money management skill, you can utilise your income properly to cover all your basic needs, generate your discretionary income and invest in bitcoin. If what you have left after you have covered for all your basic needs is 20$, you can split it into three parts, use $10 to buy bitcoin, save $5 for your emergency fund and keep the remaining $5 for your discretionary consumption. Then secure another job as you are investing and build your emergency fund stimutanously and use that second job as your source of discretionary income.

You are right and i also agree with you. Actually financial knowledge is very important for a person if he/she want to manage there income because managing money is the key i also see a lot of people in which one is my uncle as well his income is not that big but still he has good assets as compare to some people that makes a lot . So if income is low a person has to find a way to increase it plus learn how to manage there money and play a long term game .   

[Brizi5000]

One important consideration for anyone starting to invest is that otherwise, it's very difficult to develop our investments. The amount we invest isn't necessarily an obstacle or a requirement, but rather a capacity we possess, even if it's a small amount. However, investing will be easier because the money we invest is money that can be used for long-term investments.

There's nothing wrong with investing, even a small amount. I completely agree with your idea, especially nowadays. Many people want to invest, but their income is very low. It's not that they don't want to invest, but rather that they must balance their income and expenses first, so that when they invest, there are no obstacles.

I don’t seem to understand what you are trying to accomplish by saying the amount to invest in bitcoin isn’t a requirement because investing in bitcoin requires you to have a discretionary income. To invest in bitcoin, one is required to have  a discretionary income to use and buy bitcoin and hold. A discretionary income in the sense that you have sorted out your basic needs first and the remaining cash left is what is required to be used for bitcoin investment. So if an investor does not have a discretionary income then he should not attempt to invest in bitcoin.

[ChocolateBitcoinK]

People incomes differs in sizes, so what you consider as a small income may not actually be small in another person eyes. Some people could be earning 100$ and complain that it's small. Even though your income is low but you have have a good money management skill, you can utilise your income properly to cover all your basic needs, generate your discretionary income and invest in bitcoin. If what you have left after you have covered for all your basic needs is 20$, you can split it into three parts, use $10 to buy bitcoin, save $5 for your emergency fund and keep the remaining $5 for your discretionary consumption. Then secure another job as you are investing and build your emergency fund stimutanously and use that second job as your source of discretionary income.

You are right and i also agree with you. Actually financial knowledge is very important for a person if he/she want to manage there income because managing money is the key i also see a lot of people in which one is my uncle as well his income is not that big but still he has good assets as compare to some people that makes a lot . So if income is low a person has to find a way to increase it plus learn how to manage there money and play a long term game .   

Financial management is the key, you have a lot of income, but you do not have proper financial management, in this case, despite having a lot of income, you will not be able to acquire any wealth, because due to financial mismanagement, your money is spent unnecessarily, and despite having a large amount of income, there is no money left for savings or investment at the end of the month. But at this stage, if you have proper financial management, in this case, even if your income is low, it is possible to save a separate amount of money for your savings or investment after meeting all your needs. It is not enough to just earn, but to use the income properly, spend money through management, and while running a family, it is also important to save or invest for the future because it is necessary to secure your future, because income will not always be there, and when your income stops, you must create a financial foundation in advance so that your situation does not fall into helplessness, and this must be started properly through financial management in a timely manner.

[Saltysugar99]

People incomes differs in sizes, so what you consider as a small income may not actually be small in another person eyes. Some people could be earning 100$ and complain that it's small. Even though your income is low but you have have a good money management skill, you can utilise your income properly to cover all your basic needs, generate your discretionary income and invest in bitcoin. If what you have left after you have covered for all your basic needs is 20$, you can split it into three parts, use $10 to buy bitcoin, save $5 for your emergency fund and keep the remaining $5 for your discretionary consumption. Then secure another job as you are investing and build your emergency fund stimutanously and use that second job as your source of discretionary income.

The example of $20 discretionary income you gave is good. A person can start investing in bitcoin even with this kind of financial capacity. I think it is important to start accumulating bitcoin with a small amount and try to increase his discretionary income over time. Because if a person is able to buy $10 bitcoin every week today, that is certainly a good start. But if he invests the same $10 in the next 10 years, he will not be able to create a very large holding. If this amount is suitable according to his capacity, then there is no problem. But increasing the amount of investment is logically better. If he can increase his income or create more discretionary income by reducing unnecessary expenses, then there will be an opportunity to increase the amount of his bitcoin accumulation. A person is buying $10 bitcoin every week. In one year, he will use it to buy $520 and in ten years, $5,200. Now another person can buy $50 bitcoin every week at the same time and invest a total of $26,000 in ten years. So, if there is an opportunity to increase the DCA amount in investing in bitcoin, then it should be done. I think a better target is, if it is possible for a person, then 25% of his income should be invested. if someone's income is $1,000 and $400 is discretionary income, then if he invests $250 in bitcoin from there, it will be 25% of his total income. Where if he invests for 4 years, the entire amount of money in 1 year will be equivalent to investing in bitcoin. Although it is not mandatory. However an investor who has started investing and wants to increase his investment amount, he can take such a target. Anyone should not invest in bitcoin without considering his necessary expenses and discretionary consumption. When investing in bitcoin our main objective should be to create a habit of buying bitcoin and create a financial position where it will be possible to continue bitcoin accumulation with regular discretionary income according to ability. My main point is  starting with small amount is  good but we should  try to increase it over time.

[Sammysmart001]

My main point is  starting with small amount is  good but we should  try to increase it over time.

This really helps beginners to get past the fear of buying, The very part of starting small really helps .$10 weekly also teaches you how to buy regularly without having to stress over daily prices.

As this habit stay locked in and your income begins to grow, this will make a huge difference over years as you are stepping up your DCA amount. This method is just do simple, you start with what you can really afford now, balance your basic needs first and do well to scale up your buys as your situation improves.

[BitcoinLogbook]

BATMAN07

"Because the purpose of risk management is not to completely eliminate risk but to invest in such a way that even if the market falls sharply, your financial situation is not in danger."

https://bitcointalk.org/index.php?topic=5519917.msg67309177#msg67309177

...

Frankolala

"Every investment have risk even traditional investment and no investment is 100% risk free. The highest risk is when you have the money to invest in bitcoin and you did not."

https://bitcointalk.org/index.php?topic=5519917.msg67310809#msg67310809

...

Many wise comments here.

I'm thinking about curating these great comments and publish on my FAQ page https://bitcoinlogbook.com/faq/, hopefully more people (outside of this community) could see them, how do you guys think?

[Qhunman]

My main point is  starting with small amount is  good but we should  try to increase it over time.

An investor can begin with whatever discretionary income that is available and increase it as his earning grows over time. He can also study high level courses in colleges,use the certificate to secure a higher paying job to increase his income to increase his discretionary income. Like the example you gave, if he invest $10 weekly, he would invest 480$ a year and 4,800$ in 10 years. So in 10 years, what he has accumulated is small.  But if he can secure a higher paying job that he would be earning 200$ and 80$   discretionary income, if he invest 40$ discretionary income weekly, put 25$ into his emergency fund and keep 15$ for his discretionary consumption, he would invest 38,400$ in 10 years which is a reasonable amounts than accumulating 10$ weekly in 10 years. So investors with small discretionary income should try to increase their incomes over time so that they can increase discretionary investment allocations, they would build a substantial stash over time.

[sotelorene]

You are right and i also agree with you. Actually financial knowledge is very important for a person if he/she want to manage there income because managing money is the key i also see a lot of people in which one is my uncle as well his income is not that big but still he has good assets as compare to some people that makes a lot . So if income is low a person has to find a way to increase it plus learn how to manage there money and play a long term game .   

How sure and confident are you that your uncle doesn't have another source of income that you don't know about? And do you think your uncle wil be naive enough to show you all he's got? So don't conclude yet because a lot can be going on there that you are not aware of. I totally agree that good financial management skill is very vital because it changes the way people see investment opportunities and how they approach it so it will yield something tangible for them, people with good financial management tends to do better regardless of their income size.

[Junii]

How sure and confident are you that your uncle doesn't have another source of income that you don't know about? And do you think your uncle wil be naive enough to show you all he's got? So don't conclude yet because a lot can be going on there that you are not aware of. I totally agree that good financial management skill is very vital because it changes the way people see investment opportunities and how they approach it so it will yield something tangible for them, people with good financial management tends to do better regardless of their income size.

Mate i know a lot about his financial situation because i am close to him from my child hood also i am no claiming that i know about his whole financial activity but there is nothing hidden in his life style and his income which changed my perspective and i also mentioned in my reply that choose a long term game so in a long term if a person start investing with a deep research and managing his income according to it i think it is possible.

[cxtreenal]

One important consideration for anyone starting to invest is that otherwise, it's very difficult to develop our investments. The amount we invest isn't necessarily an obstacle or a requirement, but rather a capacity we possess, even if it's a small amount. However, investing will be easier because the money we invest is money that can be used for long-term investments.

There's nothing wrong with investing, even a small amount. I completely agree with your idea, especially nowadays. Many people want to invest, but their income is very low. It's not that they don't want to invest, but rather that they must balance their income and expenses first, so that when they invest, there are no obstacles.

I don’t seem to understand what you are trying to accomplish by saying the amount to invest in bitcoin isn’t a requirement because investing in bitcoin requires you to have a discretionary income. To invest in bitcoin, one is required to have  a discretionary income to use and buy bitcoin and hold. A discretionary income in the sense that you have sorted out your basic needs first and the remaining cash left is what is required to be used for bitcoin investment. So if an investor does not have a discretionary income then he should not attempt to invest in bitcoin.

I agree with you. If an investor does not have discretionary income, it is not yet time to invest in Bitcoin. If someone wants to do it with their extra funds whether they received it as a gift or from some other source then that is their investment freedom. For long term Bitcoin investment, it is important for you to have discretionary income. If you do not have discretionary income you will be at risk of gambling with your funds. There will also be risk of premature withdrawal of Bitcoin because if you do not have income you will need your funds at any time. Accumulation Bitcoin through discretionary income even if it is a small amount you can reach a best height of Bitcoin holding if you can do the long term DCA method.

[BItcoin Guy@]

How do someone survive in Bitcoin investment if they don't have patient? Of course patient is needed but we don't actually need a large Capital to be able to invest in Bitcoin rather what someone need is their discretionary income and of course you can not start any business without sorting or figuring out the strategies or methods to use in order to achieve your goal or target because without figuring this out, it will look like someone doesn't know what they are doing and it's very wrong to start something without having a strategy.

When you're not patient on your Bitcoin investment journey, I don't think you can succeed the way you need to, because patience is always the key to success, because that will make you calm yourself and keep trusting the process that everything will come and go well at last. We all need to be patient in anything we're doing, investments or business, patience should be our first priority. When a newbie is making his first move in Bitcoin investment, he should start with the DCA method, that will be good for him, but not all of them can handle that. They prefer to get fast money, they don't think deeply to manage what can work for them better.