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

[avp2306]

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).

Wouldn't it be better for them to buy monthly or when a correction comes, because buying Bitcoin weekly in such low amounts ($20 to $50) will not yield high profits and a percentage of it will be lost in withdrawal fees, as many platforms have withdrawal fees, with the average being $1.8 (according to https://withdrawalfees.com/)

That buy in monthly basis or if there's some corrections really sounds nice action to do, but in reality its hard to spot the right timing especially when you are beginner, usually they missed lots of opportunities and got afraid with dumping situations happened in the market.

Those weekly buying is somehow good even if we say transaction fee is not appealing, because what those people doing that is they are building not only being consistent with their accumulation also their discipline to follow their plans. Withdrawal fee's only hurts when you regularly transfer your bought Bitcoins into your personal wallet, But if you plan to hold it for awhile and just create plan on when you able to withdraw it to your personal wallet then you won't get hurt by fees in that situation. To avoid scams choose best platforms when buying your Bitcoins.

[Z-tight]

Since you are talking about very small amounts here, then it can work. I know this sort of thing is relative and even what we call a 'small' amount could be a lot for some other person. But taking the risk of holding such small amounts in an exchange would surely not be the end of the world for most.

However, instead of taking the risk at all, you can simply buy monthly. Just save your money in fiat and make the purchase every month, then withdraw to your self-custodial wallet.

[MarryWithBTC]

...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).

This advice is for day traders right. I do not think that day traders move funds as much as you described in this post. The first step of every trader is to find a reputable exchange that will not disappear tomorrow. When you register in this kind of exchange, you continue to trade with your capital there until you have enough profits to sell for fiat or move to your private wallet.

If you are trading on an exchange you are not sure will still be available in the next 1 to 2 years, I think you are taking more risk using the exchange than trading itself.

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.

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.

This is where the importance of your post comes to play. Those on weekly DCA shouldn't be sending funds from the exchange to their wallet on a weekly basis. They could just use your recommendation.

[SquirrelJulietGarden]

This advice is for day traders right. I do not think that day traders move funds as much as you described in this post. The first step of every trader is to find a reputable exchange that will not disappear tomorrow. When you register in this kind of exchange, you continue to trade with your capital there until you have enough profits to sell for fiat or move to your private wallet.

If you are trading on an exchange you are not sure will still be available in the next 1 to 2 years, I think you are taking more risk using the exchange than trading itself.

It's not about trading, but it is about investment. You did not read the topic carefully, as it is not about trading while your answer is about trading.

It's only funding an account, purchasing bitcoin for investment, but OP asks that between weekly and monthly, which one is better for withdraw fund from exchange accounts. Especially if the investment fund for each purchase on exchange is small, withdraw it after one purchase will result in very expensive withdrawal fee.

Above have many good answers, and I don't repeat similar answers.

[Bright0515]

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).

Wouldn't it be better for them to buy monthly or when a correction comes, because buying Bitcoin weekly in such low amounts ($20 to $50) will not yield high profits and a percentage of it will be lost in withdrawal fees, as many platforms have withdrawal fees, with the average being $1.8 (according to https://withdrawalfees.com/)

The truth is that everyone is not the same, there are some people who prefer to do it immediately because they believe they might spend the money on unnecessary things if they hold on to it. No matter what, the point here is to buy for a long term, and not short term, there are many people who accumulate Bitcoin daily into your portfolio (some weekly or monthly). But the reason for this thread is base on those who buy little amount weekly, if they always transfer their little asset every week they will spend more on fees, but if they transfer ones (which is monthly) they pay less on fees. And obviously, not everyone prefer to hold their money on Fiat till the end of the month before they buy.

However, instead of taking the risk at all, you can simply buy monthly. Just save your money in fiat and make the purchase every month, then withdraw to your self-custodial wallet.

The chances of you using that money for unnecessary things is very high because there are people who spend carelessly. From saving in Fiat till a whole month can also make you miss some good opportunities to buy, or it might make you no show much interest anymore.

This advice is for day traders right.

No!!!

I do not think that day traders move funds as much as you described in this post.

I'm not into trading and I'm not talking about trading, I'm talking about investors that DCA with little amount of money weekly.
My point is that I stead they should always transfer their little ($20 to $50) Bitcoin from their exchange to their personal wallet every week, they should only do it ones so they do t have to spend more money on fees.

But that's if they are using a top tier exchange to purchase Bitcoin