Weekly Buys, Monthly Withdrawals: A Better Strategy for Small Bitcoin Investors?

[Bright0515]

Everyone on the crypto space is trying as much as possible to safeguard their crypto assets (Bitcoin), that's why a lot of people don't keep their Bitcoin on an exchange for long (or at all).
But I think there's one thing most people don't consider while trying to safeguard their Bitcoin and I would like us to talk about that.

I think regular moving your Bitcoin from exchange (after purchase) to your personal wallet reduce your Bitcoin because of the transaction fee (although right now fees are a bit reasonable). But that's for people who transacts decent amount of Bitcoin from their exchange to their personal wallet. Like what I'm trying to say here is that those who transact, let's say $100 and above might not think about the fee because it's small but those who only purchase $10 to $15 weekly will be affected because they purchase small amount of Bitcoin, so moving all the time they purchase Bitcoin from an exchange to their personal wallet seems more like they are dividing their BTC (some part for fees while they rest part to their wallet).

So based on this I think it's better for those who purchase small amount of BTC weekly to move their BTC from their exchange to their personal wallet ones a month. Like for instance, if you buy $20 to $50 BTC per week (4× per month) all you have to do is move them at once and save your sef the stress and cost of transaction fee.

Even for the fact that you don't usually move your BTC up and down every week but ones a month, you are still maintaining the self custody principle. Those investors who invest little amount are also in benefit because transaction fee affects those small transactions they normally do. Another reason is that it helps people to DCA because their focus is all about purchasing and not in transactions fee. If they don't withdraw regularly, it help them create a monthly structure too, because it helps them to be discipline. For the fact that they still move those BTC from exchange to their personal wallet still keeps the risk limited as they are not going to keep their Bitcoin in the exchange forever. If they move their Bitcoin ones a month it can even help them to accumulate more Bitcoin before moving them to their personal wallet and they won't have to down more on fee, imagine a situation whereby fee is $1 and they buy 4× monthly, it means they have withdrawal 4× a month, but buying weekly and moving from exchange to wallet ones a month safe them from stress and it helps them pay less.
This pattern even helps those investors who are on a fix and weekly budget.
So what do y'all think?

[_act_]

So based on this I think it's better for those who purchase small amount of BTC weekly to move their BTC from their exchange to their personal wallet ones a month. Like for instance, if you buy $20 to $50 BTC per week (4× per month) all you have to do is move them at once and save your sef the stress and cost of transaction fee.

You are talking about those that are buy bitcoin on centralized exchanges. There are some marketplace that people are buying bitcoin on decentralized exchanges in a way the coin will not be held by the exchange. The coin will be from the seller wallet to buyer wallet directly with the exchange holding it.

If it is centralized exchanges, your idea is good but I will prefer to use a lightning network. If my lightning bitcoin holding has increased, I will swap it to bitcoin. There are some reputable instant exchanges that I can do that.

[Zaguru12]

This pattern even helps those investors who are on a fix and weekly budget.
So what do y'all think?

Multiples times this has been discussed, the reason why you actually move your coins from exchange is because you are actually scared of losing them and this is the reason why any amount of bitcoin that’s on your exchange which you cannot afford to lose, you should move it out to your self custody. The amount now depends on you, some people can even overlook a $1,000 because they can afford to lose while someone cannot afford to lose even $50 so they should move it also.

Yes I get it that transaction fee sometimes are a little concern that’s why the idea is to use exchanges with very low transaction fee most of the times. I also can agree that monthly isn’t bad, but it should still depend on the amount you can afford to lose, if you have more than what you can afford to lose on exchange why wait for certain periods of time to withdraw.

One thing is don’t be carried away thinking exchanges are secured, have it at the back of your mind that even the next day it can be compromised and you can lose your funds. So stop giving time frame to withdrawals because the security isn’t guranteed withdrawal your funds you cannot afford to use immediately, the fees can never be greater than the loss if the exchange actually gets compromised

[GhostOfBitcoin]

-snip-
who only purchase $10 to $15 weekly will be affected because they purchase small amount of Bitcoin, so moving all the time they purchase Bitcoin from an exchange to their personal wallet seems more like they are dividing their BTC (some part for fees while they rest part to their wallet).

So based on this I think it's better for those who purchase small amount of BTC weekly to move their BTC from their exchange to their personal wallet ones a month.

So what do y'all think?

It is not wise for micro-investors to withdraw Bitcoin every week, as network fees or exchange withdrawal fees eat up a large portion of their Bitcoin deposits.

For those who buy small amounts of Bitcoin (DCA) like $10-$50 a week, each withdrawal means a big loss in fees. However, there is one strategic point to keep in mind:

• Withdrawing once a month saves on on-chain transaction fees (UTXO consolidation) and exchange withdrawal fees, which greatly reduces your average cost basis.
• Keeping money on an exchange for a whole month means accepting the risk of "Not your keys, not your coins." There is a fear of losing funds if the exchange is hacked or goes bankrupt. (e.g. FTX exchange)

In my experience, small investors can use Bitcoin Lightning Network supported exchanges to avoid this temporary risk. Lightning Network allows for instant withdrawals with almost zero fees. And if you have to withdraw to an on-chain (Mainnet) wallet, it is most economical and wise to transfer at least $200-$300 to your own cold or software wallet at once, rather than withdrawing every week.

[BlackBoss_]

So based on this I think it's better for those who purchase small amount of BTC weekly to move their BTC from their exchange to their personal wallet ones a month. Like for instance, if you buy $20 to $50 BTC per week (4× per month) all you have to do is move them at once and save your sef the stress and cost of transaction fee.

Surely with people who have small money for investment, they will have to consider about saving their money in transaction fees and withdrawal fees. Centralized exchanges charge very expensive withdrawal fees and they see it like their opportunity for getting more money from users, but users can not chang exchange withdrawal fee policies. To adapt to this, users especially who have small investment capital will have to consolidate their purchases before it is big enough for a withdrawal from exchange to non custodial wallets.

With small capital, it can be good to withdraw your fund from exchange to non custodial wallet monthly or bi-monthly. Whenever their finance is better, investment capital for each DCA purchase is bigger, it's recommended to withdraw fund immediately after a purchase on a centralized exchange.

[Aanuoluwatofunmi]

After going through this your strategy of buying and selling in a monthly basis, I think the best professional term used for such is DCA which is more effective and if you can just streamline your kind of pattern to this strategy, it will be more better for you to make more opportunity by your investment and how you will sell in profit at the end of each market sell and buy.

[UchihaSarada]

After going through this your strategy of buying and selling in a monthly basis, I think the best professional term used for such is DCA which is more effective and if you can just streamline your kind of pattern to this strategy, it will be more better for you to make more opportunity by your investment and how you will sell in profit at the end of each market sell and buy.

I agree with you that buying and selling monthly is like trading or speculation for short term profit, not for investors who have different vision and practice of buying and holding their bitcoin a long time.

But I am really sorry to inform you that you did not read OP too carefully. Bright0515 did not discuss about buying and selling on a monthly basis for profit. It's about withdrawal bitcoin fund from exchanges weekly or monthly, which one is better for saving fee. You can read OP again and see how wrong your post is about.

[Bright0515]

After going through this your strategy of buying and selling in a monthly basis, I think the best professional term used for such is DCA which is more effective and if you can just streamline your kind of pattern to this strategy, it will be more better for you to make more opportunity by your investment and how you will sell in profit at the end of each market sell and buy.

OMG!
What the fuck are you talking about?
Can't you read, even the title of this thread don't have anything to do with selling. There's a difference between withdraw and sell, you can withdraw from an exchange to your wallet or from your wallet to your exchange. If you talking about selling, it's a form of exchanging your assets to Fiat currency and I'm not talking about selling here. Try to read a little, it will help you not to get into trouble.

I think regular moving your Bitcoin from exchange (after purchase) to your personal wallet reduce your Bitcoin because of the transaction fee (although right now fees are a bit reasonable). But that's for people who transacts decent amount of Bitcoin from their exchange to their personal wallet. Like what I'm trying to say here is that those who transact, let's say $100 and above might not think about the fee because it's small but those who only purchase $10 to $15 weekly will be affected because they purchase small amount of Bitcoin, so moving all the time they purchase Bitcoin from an exchange to their personal wallet seems more like they are dividing their BTC (some part for fees while they rest part to their wallet).

So based on this I think it's better for those who purchase small amount of BTC weekly to move their BTC from their exchange to their personal wallet ones a month. Like for instance, if you buy $20 to $50 BTC per week (4× per month) all you have to do is move them at once and save your sef the stress and cost of transaction fee.

Read the above comments so you will understand what the thread is all about.

[joniboini]

I guess another option is to look for exchanges that have small withdrawal fees. I feel like risking your money (whatever the amount is) on exchanges and hoping that your $100 won't go away for a month is still quite risky. If there are thousands of users doing that, that's still a lot of money and scammers would love to try and get them still. Especially if you're not prepared for such loss.

I dunno, waiting until I have $100 to buy Bitcoin sounds better even if I risk making my average entry higher.

[KiaKia]

OP, I don't know about others but if I can purchase $10 of Bitcoin per week I can leave that money on a top exchange with good reputation like Binance until it turned to $50 or $100 before I move it out.

Also if anyone is planning to do this as their DCA strategy, it's better they hold the fiat at first or hold the money in stable coin, with $0.20 you can move your USDT on BnB chain, store the stablecoin up till it becomes handful, in the hundreds before buying Bitcoin.

Waiting in Fiat or stablecoin until your money is big enough to buy some Bitcoin is a good strategy.

[SquirrelJulietGarden]

OP, I don't know about others but if I can purchase $10 of Bitcoin per week I can leave that money on a top exchange with good reputation like Binance until it turned to $50 or $100 before I move it out.

Also if anyone is planning to do this as their DCA strategy, it's better they hold the fiat at first or hold the money in stable coin, with $0.20 you can move your USDT on BnB chain, store the stablecoin up till it becomes handful, in the hundreds before buying Bitcoin.

I would like to firstly choose a tier 1 exchanges for funding my account, and use it for purchasing bitcoin and Binance is a good choice but it might change in the future. I agree with you that with $10 weekly for purchasing budget, I will wait for weeks to have $40 or $120 before I use it for purchasing bitcoin, then withdrawing it immediately to my wallet.

I believe that there is no big difference between two investors who use $10 for purchasing bitcoin weekly and another investor who use $40 for buying bitcoin monthly. Difference will only exist if they have different total investment capital and shorter or longer accumulation time.

[BIT-BENDER]

Everyone on the crypto space is trying as much as possible to safeguard their crypto assets (Bitcoin), that's why a lot of people don't keep their Bitcoin on an exchange for long (or at all).
But I think there's one thing most people don't consider while trying to safeguard their Bitcoin and I would like us to talk about that.

I think regular moving your Bitcoin from exchange (after purchase) to your personal wallet reduce your Bitcoin because of the transaction fee (although right now fees are a bit reasonable). But that's for people who transacts decent amount of Bitcoin from their exchange to their personal wallet. Like what I'm trying to say here is that those who transact, let's say $100 and above might not think about the fee because it's small but those who only purchase $10 to $15 weekly will be affected because they purchase small amount of Bitcoin, so moving all the time they purchase Bitcoin from an exchange to their personal wallet seems more like they are dividing their BTC (some part for fees while they rest part to their wallet).

So based on this I think it's better for those who purchase small amount of BTC weekly to move their BTC from their exchange to their personal wallet ones a month. Like for instance, if you buy $20 to $50 BTC per week (4× per month) all you have to do is move them at once and save your sef the stress and cost of transaction fee.

Even for the fact that you don't usually move your BTC up and down every week but ones a month, you are still maintaining the self custody principle. Those investors who invest little amount are also in benefit because transaction fee affects those small transactions they normally do. Another reason is that it helps people to DCA because their focus is all about purchasing and not in transactions fee. If they don't withdraw regularly, it help them create a monthly structure too, because it helps them to be discipline. For the fact that they still move those BTC from exchange to their personal wallet still keeps the risk limited as they are not going to keep their Bitcoin in the exchange forever. If they move their Bitcoin ones a month it can even help them to accumulate more Bitcoin before moving them to their personal wallet and they won't have to down more on fee, imagine a situation whereby fee is $1 and they buy 4× monthly, it means they have withdrawal 4× a month, but buying weekly and moving from exchange to wallet ones a month safe them from stress and it helps them pay less.
This pattern even helps those investors who are on a fix and weekly budget.
So what do y'all think?

Losing some fractions of your BTC is better than losing all your Bitcoin on an exchange, it is when you have lost the Bitcoin you will realize that maybe you should have just sent it to your personal wallet even with the transaction fee.
I know the main reason you were pointing at is transaction fees especially for those who are sending low funds but regardless of if your funds are low or not they should be protected.
For me if you are using an exchange that requires high transactions fees to send out Bitcoin you can convert to usdt send the usdt to exchange with extremely low transaction fee for Bitcoin transactions, when the usdt has been sent to that exchange you then convert to btc and send to your personal wallet.

[michellee]

Withdrawing Bitcoin from exchanges to your private wallet once a month is good to reduce the transaction fees, at least that helps you to have more amount than you do that weekly so you should search for exchanges that have low transaction fees. But if the fees only $1 and that could be $4 a month if they withdraw weekly, that still acceptable. Anyway, you can check on this site to have a complete list of withdrawal fee https://withdrawalfees.com/coins/bitcoin.

But I don't know how valid the data since you need to check it one by one, I just see Bitget have the lower fee so you need to make sure of it.

[Bright0515]

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Losing some fractions of your BTC is better than losing all your Bitcoin on an exchange,

Good question, but please be sincere to us (cus am not the only one that will view it), have you ever lost your Bitcoin on an exchange before? As for me I have never experienced it, I only read few articles that talked about it.

I get it that we don't have to wait until it happens before we could wise up, but at same time I also believe that when we use a top tier exchange to purchase (20 to $50 weekly) Bitcoin and keep it for a month it's not that bad besides for the fact that you are not keeping it there forever (just a month) still proves that you know what you are doing.