Hold on, is DCA really JUST for the POOR?

[ChisomP]

I have been seeing a lot of posts about DCA, and I am sure a lot of us have talked a lot about it but there is still this confusion around it.
I am not going to bore you with the full meaning, we all know that. But the notion that DCA is for the "poor" is a very wrong one.

Dollar-Cost-Averaging also known as Pound-Cost-Averaging(the currency doesn't matter)is a term coined by Benjamin Graham in his 1949 book titled "The intelligent investor". It is an investment strategy meant to increase the number of shares held by applying value investment.

What all this big grammers simply mean is, you add value to each shares bought by buying more when the price of the shares is low, and less when it is high. You keep your investment amount exactly the same every single week or month. Because the dollar amount is fixed, you automatically buy more shares when prices are low and fewer shares when prices are high.

For instance, if you commit to investing exactly $100 a month:
Month 1: Bitcoin is at $10, so your $100 buys you 10 btc.
Month 2: Bitcoin drops to $5, so your $100 automatically buys you 20 btc.
Month 3: Bitcoin jumps to $20, so your $100 only buys you 5 btc.

Over time, your average cost per share is lower than the peak price, without having to time the market.

This Wiki link tells us more.

The technique is called such because of its potential for reducing the average cost of shares bought. As the number of shares that can be bought for a fixed amount of money varies inversely with their price, DCA effectively leads to more shares being purchased when their price is low and fewer when they are expensive. As a result, DCA can lower the total average cost per share of the investment, giving the investor a lower overall cost for the shares purchased over time.[3] The alternate strategies are to purchase a fixed number of shares each time period, or to save up the funds that are available for investment and attempt to purchase shares at times when the market is low, i.e. market timing. A major advantage of DCA is its long-term investment horizon, a simplification which promotes fiscal discipline; given its clockwork like methods, constant decisions are unnecessary.

DCA is not just for the poor, it is an investment strategy that helps increase the value of your investment shares. If you want to maximize profit, DCA is the way to go. So far, it has been a very effective, proven investment strategy. Whether rich or poor, I feel this is the best way to go about BTC investment.

Conclusion: DCA is an investment strategy made for all, not just for the poor.

What do ya'll think my fellow 9ja people.

[Hypnotizer]

-snip

DCA, PCA, NCA… literally refer to the same strategy but the currency you’re using for the investment determines the name you called it and it’s just “Cost averaging”.

We have discussed this countless times on this forum and suppose most people already know what it means and they apply it in their investments.

For instance, if you commit to investing exactly $100 a month:
Month 1: Bitcoin is at $10, so your $100 buys you 10 shares.
Month 2: Bitcoin drops to $5, so your $100 automatically buys you 20 shares.
Month 3: Bitcoin jumps to $20, so your $100 only buys you 5 shares.

Bitcoin doesn’t work like stocks, so it’s not shares! And the amount of bitcoin(SATS) you buy can change depending on the price even if you invest the same amount weekly because the price isn’t fix..

You might want to consider connecting anything to its context, because context matters and in this post I don’t see you connecting DCA directly to the context of Bitcoin Investment..

[Gozie51]

But the notion that DCA is for the "poor" is a very wrong one.

I think I'm just reading or hearing this now. I don't think this terminology even came from the poor minds. The rich are careful and shrewd in taking up a business investment and would not want to put their money where they won't profit maximally. So to allude such on the poor might be a fallacy. DCA is simply investing cheap for bigger profit. I bet you that the poor even learned this kind of investment idea from the rich who already understand the business strategy above the poor. So it is not a coinage only associated with the poor or someone not having enough money to invest hugely but for every small or big investor.

[ChisomP]

-snip

DCA, PCA, NCA… literally refer to the same strategy but the currency you’re using for the investment determines the name you called it and it’s just “Cost averaging”.

We have discussed this countless times on this forum and suppose most people already know what it means and they apply it in their investments.

For instance, if you commit to investing exactly $100 a month:
Month 1: Bitcoin is at $10, so your $100 buys you 10 shares.
Month 2: Bitcoin drops to $5, so your $100 automatically buys you 20 shares.
Month 3: Bitcoin jumps to $20, so your $100 only buys you 5 shares.

Bitcoin doesn’t work like stocks, so it’s not shares! And the amount of bitcoin(SATS) you buy can change depending on the price even if you invest the same amount weekly because the price isn’t fix..

You might want to consider connecting anything to its context, because context matters and in this post I don’t see you connecting DCA directly to the context of Bitcoin Investment..

It is just an example, I can't exactly measure that in sats that is why I used shares, the shares are obviously in btc. If you don't want to relate it to the context that is on you.

Certainly the amount of btc changes constantly, and that is also related to the example I gave. It is just trying to show how buying with the same amount consistently, periodically will add value to your investment buy giving you more btc/sats in the long run.

But the notion that DCA is for the "poor" is a very wrong one.

I think I'm just reading or hearing this now. I don't think this terminology even came from the poor minds. The rich are careful and shrewd in taking up a business investment and would not want to put their money where they won't profit maximally. So to allude such on the poor might be a fallacy. DCA is simply investing cheap for bigger profit. I bet you that the poor even learned this kind of investment idea from the rich who already understand the business strategy above the poor. So it is not a coinage only associated with the poor or someone not having enough money to invest hugely but for every small or big investor.

True, but I have seen 2 post in this our 9ja board talking about how DCA is more suitable for the poor. I didn't actually make any reply on the post, I'll check again if I can see one of the posts.

Edit:
Here is the link to one of the post that gave me that impression.

[Cgrexp]

People can start with just $10 or any other small amount and learn as they go. And besides buying Bitcoin, they can also build their own support fund. So maybe a person needs to figure out if they have the funds they want. We can make long-term investments with very small amounts of money and each of us can decide the amount according to our own ability, we don't have to be very rich to invest. But whatever the amount, everyone should manage their finances properly so that they don't lose everything later due to some mistake. If he continues to buy Bitcoin, builds his support fund, he will probably be in a better position and will be able to maintain the investment in a disciplined manner for a long time.

[Johnlomape]

I have been seeing a lot of posts about DCA, and I am sure a lot of us have talked a lot about it but there is still this confusion around it.
I am not going to bore you with the full meaning, we all know that. But the notion that DCA is for the "poor" is a very wrong one.

This is bullshit, where did you see or hear that the DCA strategy is for the poor? You don't have to write what you like just because you think someone whispered that to you. The poor does not have the finances to use the DCA strategy.
There are different rules that is applicable to the DCA so don't think anybody can decide to use the strategy without having enough funds to be buying Bitcoin consistently in the name of accumulation. You can not use the DCA strategy without having a constant income you can rely on that will be helping you to buy Bitcoin frequently while holding.

[Charles-Tim]

If someone is poor, where is he or she even going to see money to invest in bitcoin not to talk of NCA? You will see poor people buying things on credit before they receive salary. As long as someone have discretionary income, I do not think such a person is poor.

Also you can see a a rich person using NCA to invest in bitcoin.

[Gozie51]

True, but I have seen 2 post in this our 9ja board talking about how DCA is more suitable for the poor. I didn't actually make any reply on the post, I'll check again if I can see one of the posts.

Edit:
Here is the link to one of the post that gave me that impression.

Okay, If you were referring to Op's post on that link/thread, you for use him user name on the link title instead of (here) so that if I get to the thread then I go directly go check the post.

So if na the Op post you dey refer to, him just dey lament about the country situation like the book of lamentations in the bible. Him dey say person never chop not to talk of getting money to DCA on bitcoin and at the last part, him ask am as question.

But you too think am na.... If you never get money take feed and care for your family, how you want take DCA without touching it. This is the odeal of poor people. So na person wey get left over or discretional money dey DCA or invest in any other thing including buying stocks, land and other properties. This is the point.

However, na management make things be like e better but las las things no better for poor man.

You try my brother. Keep moving, we dey together.

[Oshio-man]

Both rich and poor can use this dollar cost average (DCA) method to accumulate bitcoin, but the mistake some newbies dey make to think d strategy is not a good one to make income, is that dey don't use what dey can afford to lose in the dollar cost average (DCA), u no wat will happen when u don't have d funds to accumulate bitcoin wen d bearish market or bullish market is on, and d most important thing u need to have after achieved the knowledge is capital to start accumulating bitcoin and hold because it will open your eyes for huge income that will eliminate poverty from your life or home.

[ChisomP]

True, but I have seen 2 post in this our 9ja board talking about how DCA is more suitable for the poor. I didn't actually make any reply on the post, I'll check again if I can see one of the posts.

Edit:
Here is the link to one of the post that gave me that impression.

Okay, If you were referring to Op's post on that link/thread, you for use him user name on the link title instead of (here) so that if I get to the thread then I go directly go check the post.

So if na the Op post you dey refer to, him just dey lament about the country situation like the book of lamentations in the bible. Him dey say person never chop not to talk of getting money to DCA on bitcoin and at the last part, him ask am as question.

But you too think am na.... If you never get money take feed and care for your family, how you want take DCA without touching it. This is the odeal of poor people. So na person wey get left over or discretional money dey DCA or invest in any other thing including buying stocks, land and other properties. This is the point.

However, na management make things be like e better but las las things no better for poor man.

You try my brother. Keep moving, we dey together.

Thank you brother. I been they the thread they read through, wetin the OP for that thread talk no bad, but some they say DCA na for poor people, while some say na for the rich, the opinions just they divided. I don see something similar too for this our board, na e make I say make I talk about am here, to take clear out with wetin I know about DCA.

[Jaycoinz]

Both rich and poor can use this dollar cost average (DCA) method to accumulate bitcoin, but the mistake some newbies dey make to think d strategy is not a good one to make income, is that dey don't use what dey can afford to lose in the dollar cost average (DCA), u no wat will happen when u don't have d funds to accumulate bitcoin wen d bearish market or bullish market is on, and d most important thing u need to have after achieved the knowledge is capital to start accumulating bitcoin and hold because it will open your eyes for huge income that will eliminate poverty from your life or home.

Anyone wey go into investment with any other money apart from their discretionary income dey make big mistakes because there are so many things wey fit go wrong when the person dey accumulate even if the person dey do am through DCA method, there are cases that would make the person touch his investment and that one na the real big reason why e dey good to use money u know go feel when you out am into buying of Bitcoin.

[promise444c5]

The problem with most people when it comes to DCA is watching their  money get reduced to  half or even more depending on how low the market gets in a Bear market. It’s quite hard to bear especially if you just want some quick profit.

Another one is having zero emergency funds or small emergency fund funds to cover any emergency needs during a bear market. You will end up selling to cover up when the need arise, then you start regretting why you didn’t sold early

DCA/NCA is not a status-classified  method, having a target or  goal and fixing above is what really matters to keep up with it.

[Franctoshi]

Bitcoin is not a segregational crypto that determines the level of people who can buy using the DCA strategy; it even offers you the opportunity to get included in its investment. Rather, Bitcoin is for everyone who has the capacity (the funds) to buy or invest in Bitcoin.
But note that for you to and buy Bitcoin using DCA strategy it definitely will require you some funds.

[Chinesebaby]

I have been seeing a lot of posts about DCA, and I am sure a lot of us have talked a lot about it but there is still this confusion around it.
I am not going to bore you with the full meaning, we all know that. But the notion that DCA is for the "poor" is a very wrong one.

Dollar-Cost-Averaging also known as Pound-Cost-Averaging(the currency doesn't matter)is a term coined by Benjamin Graham in his 1949 book titled "The intelligent investor". It is an investment strategy meant to increase the number of shares held by applying value investment.

What all this big grammers simply mean is, you add value to each shares bought by buying more when the price of the shares is low, and less when it is high. You keep your investment amount exactly the same every single week or month. Because the dollar amount is fixed, you automatically buy more shares when prices are low and fewer shares when prices are high.

For instance, if you commit to investing exactly $100 a month:
Month 1: Bitcoin is at $10, so your $100 buys you 10 btc.
Month 2: Bitcoin drops to $5, so your $100 automatically buys you 20 btc.
Month 3: Bitcoin jumps to $20, so your $100 only buys you 5 btc.

Over time, your average cost per share is lower than the peak price, without having to time the market.

This Wiki link tells us more.

The technique is called such because of its potential for reducing the average cost of shares bought. As the number of shares that can be bought for a fixed amount of money varies inversely with their price, DCA effectively leads to more shares being purchased when their price is low and fewer when they are expensive. As a result, DCA can lower the total average cost per share of the investment, giving the investor a lower overall cost for the shares purchased over time.[3] The alternate strategies are to purchase a fixed number of shares each time period, or to save up the funds that are available for investment and attempt to purchase shares at times when the market is low, i.e. market timing. A major advantage of DCA is its long-term investment horizon, a simplification which promotes fiscal discipline; given its clockwork like methods, constant decisions are unnecessary.

DCA is not just for the poor, it is an investment strategy that helps increase the value of your investment shares. If you want to maximize profit, DCA is the way to go. So far, it has been a very effective, proven investment strategy. Whether rich or poor, I feel this is the best way to go about BTC investment.

Conclusion: DCA is an investment strategy made for all, not just for the poor.

What do ya'll think my fellow 9ja people.

It's only a person with little or no knowledge about Bitcoin that will argue that the Dollar Cost Averaging method was might only for the rich and not a everybody. Because while adopting this Dollar Cost Averaging method of investing in Bitcoin, we could notice that it doesn't have a particular limit of amount that investors can either start with. Which means that any amount can be used for this approach, ranging from $5 to $100million weekly or monthly. And secondly, since we are in Nigeria, this Dollar Cost Averaging method can also be called "Naira Cost Averaging" method of investing in Bitcoin, whereby you can just decide to be keeping aside #20,000 Naira monthly to be used to invest in Bitcoin.

[EL MOHA]

This is bullshit, where did you see or hear that the DCA strategy is for the poor? You don't have to write what you like just because you think someone whispered that to you. The poor does not have the finances to use the DCA strategy.
There are different rules that is applicable to the DCA so don't think anybody can decide to use the strategy without having enough funds to be buying Bitcoin consistently in the name of accumulation. You can not use the DCA strategy without having a constant income you can rely on that will be helping you to buy Bitcoin frequently while holding.

I think many people like the OP have actually got the DCA narrative all wrong most especially when it’s related to the poor. Sometimes I usually say that the definition of the word poor is not usually correct.  If OP actually refers to the poor as people who get money on timely basis then yes OP is right the DCA is for poor people then in this context for little income earners like salary or wage earners but the little correction to OP statement is that DCA is for everyone as a strategy not only restricted to poor people alone but even the rich can practice it too even if tgsy have a larger funds aside to invest

[DiMarxist]

There is no room for arguments when it comes to DCA and it's practice. So far as an individual has a stable source of income coming in regularly, such a person is qualified to practice DCA. The most important thing when it comes to DCAing is regular consistent investment over time which is what the DCA is all about. So the notion that the DCA method is only ment for the poor is wrong and anyone thinking towards that direction is probably not too aware of the reality on ground. Both the rich and poor can practice it you don't need to put in large sum into investment even if you have millions in your account.

[Makus]

First of all you need to remember that DCA strategy means investing a particular amount of money consistently and doing this for a long period of time. It is all about investing the amount of money within your capacity, a lot of people think that this strategy was created for only the poor but the rich can also buy Bitcoin and keep on accumulating Bitcoin. DCA is not only for peopl that are poor. This is a weird idea some people have, instead of them to start from whatever amount they want they to get started.

[Rgram]

It isn’t really about the poor but rather, a convenient strategy for the believer and the unconvinced.

It does give low and middle income earners a better chance to invest though. We know most times, the rich don’t care and can just throw in a bulk of cash whichever time they decide but, so also can the middle class earners and even the poor when they choose to save up and invest with it.

However, given the unforeseen circumstances that could thwart such plans, the DCA strategy stands the one strategy that could keep you going about other aspects to living and still investing in Bitcoin without any problems.

[The Founding Titan]

OP your title needs correcting, it gave the initial impression that you were actually yourself asking if the DCA was just for the poor especially with you capitalizing the word only to see that you are actually explaining how the DCA works for everyone and not just the poor, you should have been more direct with it.
The DCA/PCA or as it's preferably called here in the Nigerian local board NCA doesn't discriminate between the financial status of individuals who are employing it as their investment strategy, I would even argue that rick people use it more then those who are actually considered poor as some of them cannot be patient enough to accumulate bitcoin with such a strategy that in certain minds can be called slow even when it's not a slow strategy, it's just thst bitcoin investment is a long term investment.

[Odusko]

Poor you meant to say those that are leaving below poverty level and not the in the average class, when you want to put DCA in the right way, you should say Bitcoin DCA approach is most suitable for the average class because the poor will not have the capital to buy Bitcoin even though he want to apply DCA strategy, where s the capital to start witb?