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    Author Topic: Does the DCA strategy inspire newbies to invest?  (Read 29064 times)
    cocadalcan
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    Today at 03:29:47 PM
     #2961

    I don't think waiting for a bear market is really DCA because that is more like trying to time the market and hoping you can identify or predict  perfect time when bitcoin dip.
    You are getting it wrong. You can begin to DCA at anytime time. If you wait for the time bitcoin price has fallen and you begin to buy bitcoin like weekly or monthly (but I recommend weekly), that is what DCA is. Even if it is during bull run, as long as you are buying the coin at a specific time like weekly, it is called DCA.

    I'm finding it tough to understand what you mean, you talked about waiting for when Bitcoin price falls, then said you prefer buying weekly and termed it DCA, it’s confusing even though I'm trying to connect some dots so I'll get a clear understanding of what you mean
     
    I don't know if it's a typo error from your ends but if what you meant is tbat people need to wait for the price to fall before DCAing then you're wrong cause the DCA doesn't require waiting for Bitcoin to fall before buying but buying consistently.

    Well the interval at which people buy differs, while some can comfortably buy at weekly bases while some monthly and there are times when some can buy daily cause they have the capacity to but buying daily is not common with everyone the most common are weekly and monthly buying.
    I agree with you, the DCA does not support market timing especially when it involves waiting for a price drop before buying bitcoin. If that happens then it automatically means buying the dip strategy. The core purpose of the DCA will be defeated if investors apply market timing and waiting for a lower price before buying so for an effective DCA strategy what matters most is to continue buying no matter the price whenever the discretionary income is available.
    The main idea of ​​the buy the dip strategy is that you should start accumulating Bitcoin today before the price increases significantly. Some people do not understand the meaning of the word buy the dip. Do not wait for the DIP price to buy Bitcoin. If you have discretionary income at the end of the week, start accumulating Bitcoin using the DCA method. Before the price reaches a high point. If you decide to compete with the market price and buy Bitcoin, it will not be advisable because the market will always be volatile. If you do DCA regularly, you will have to keep buying Bitcoin no matter what the price is and this is the best investment method. This means accumulating Bitcoin regularly along with analyzing the market and practicing patience to grow your Bitcoin holdings.

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