Hopefully we are talking about bitcoin rather than shitcoins... if you are fucking around with shitcoins (your use of the term crypto), then you are trading rather than investing.
DCA tends to be more effective as a means of establishing a long term position with an asset, such as bitcoin that is considered to have strong fundamentals and therefore a likelihood of an upwardly sloping curve, especially during the period of investment.
Another thing if you are getting in and out in less than 4 year periods of time, then it seems quite likely that you are trading rather than investing... since what would be the purpose of your getting out? You see profits? or you want to buy back in cheaper?
DCA for accumulation and withdrawal is only good with Bitcoin as it is a strongest cryptocurrency, and so far it has always recovered from a bear market and made a new bull market with new all time highs which are great opportunities for DCA withdrawals.
Several times, I have come across folks who proclaim that some form of DCA could be applied to withdrawals. Even though I am not opposed to the idea of managing withdrawals, to me the idea of DCA withdrawals seems like bit of a misapplication of the DCA idea in terms that seem to treat bitcoin as a trade rather than an investment, yet it is quite likely that DCA withdrawals will tend to be a bit more moderated and tailored rather than trying to time the exact top.. so DCA withdrawal could have a bit of time-based and price based built in- depending on how they would be deployed, whether trying to capture the ups and downs of the 4 year cycle or if they might be applied in longer timelines, so for example accumulating for a year or two, then perhaps waiting for a year or two and then withdrawing some or all during a certain period of time down the road when the guy might either consider the "profits" to be enough or perhaps that he has some specific kind of way that he want to use the bitcoin money such as buying a house or investing in a business.
With shitcoins, there is no such opportunity with most of them, and DCA more shitcoins with time, holding them a longer time with new market cycles mostly will bring bigger losses, sometimes completely severe losses.
Surely many of us consider shitcoins as trades rather than investments, yet I would not proclaim that they would always end up in losses or rug pulls or various other shenanigans that many of us have seen happening in the shitcoin space. With trading and/or gambling, there are times that profits might end up being made and even rising to levels that would be higher than investing in bitcoin, yet it seems to me that it would be rare cases that would be able to beat bitcoin, especially on longer timelines with expected happenings of several trade attempts in the process of perhaps a couple of cycles, such as an 8-year or longer timeline
This Cryptocurrency price history data snapshot page with snapshots of top cryptocurrencies since 2013 shows information on top coins, and how non-Bitcoin top coins were very weak, sensitive in bear markets, with market cycles, and most of them lost top positions as well as died.
https://coinmarketcap.com/historical/It is not likely a very good use of time to spend time trying to figure out which shitcoin might happen to be less shitty, and surely bitcoin brought something interesting, innovative and paradigm shifting into the world, so surely there is value in learning bitcoin first and then to potentially recognize that various shitcoin's and even crypto-related projects tend to either be affinity scams upon bitcoin or perhaps attacks upon bitcoin .. and it seems to me that if any of us are learning bitcoin first, yet we still have curiosities about various shitcoin projects or those related matters, then it probably would be useful to limit the investment of our time, energy and/or value to less than 10% of what we put into bitcoin.
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The DCA strategy should be considered the best strategy for newbies and is not something that is difficult for newbies to understand. The strategies is a simple and easy going strategy that a beginner will love to start with since they can start with any amount of discretion they have. Therefore I don't see reasons why any newbie will find it difficult to comprehend the DCA strategy and to even consider it.
Exactly, applying the DCA strategy to our investments is not difficult, and is even easier than trying to guess when prices will fall. The key lies in the funds used for purchases, since it is done gradually, i always recommend using discretionary funds or leftover funds after all your needs are met. The goal is to keep your investments safe and running smoothly, without having to panic when urgent needs arise that force you to sell your Bitcoin.
Additionally, you might consider building an emergency fund to anticipate urgent issues that may arise in the future, as well as a reserve fund, money set aside for aggressive purchases if you encounter a significant price drop that you deem too good to pass up.
But let me tell you one thing for the beginners, that is, no one should fall into the Dip psychology trap by giving less importance to the DCA strategy without understanding it. That is, many people think that a big dip can actually buy more Bitcoin with the same amount of money, but in reality the market can fall by another 20%30%, no one can say for sure when the real dip will come. Therefore, people lose money when they buy dips with urgent money out of excessive emotion and are forced to sell their accumulated Bitcoin. Therefore, everyone should first maintain a reasonable income and continue long-term investments in a planned manner, and if there is extra money, then if the price drops by 30-40% compared to the average price of two years, then buy dips.
Are you just guessing and throwing out random ideas that hardly make any sense? That is what non-serious trolls do.. they disrupt and throw out misinformation.
One of the main reasons to continually buy and to ongoingly buy is because we cannot ever really know if there is going to be a further dip, even during periods in which everyone and their dog is proclaiming dips to be inevitably certain.
Another reason to ongoingly buy bitcoin is to put ourselves into a correct kind of psychology and prioritization of ongoing investing into bitcoin. If we are spending a lot of time speculating dips and waiting for dips that might not happen, we are likely not giving very high priority to the building up of our bitcoin stash and ongoingly assuring that we are prepared for up.
Of course, it would be better to be able to buy more bitcoin with the same amount of money, so buying on the dip would end up resulting in more BTC for the same price in the event that such a dip were certain to happen, yet such dip is never certain to happen, even during periods that it seems like it is.
Guys have to choose for themselves in regards top their priorities of stacking bitcoin and/or waiting for dips that may proclaimed that the new or may not end up happening. I have frequently claimed that a newer a person is to bitcoin and/or the more concerned that they are about the sufficiency of their preparation for UP, then they likely need to error on the side of ongoingly, persistently, consistently, regularly and perhaps even aggressively buying of bitcoin, yet the longer that a person has been accumulating bitcoin and the more bitcoin that he has accumulated, then he may well have less urgency in his need to ongoingly accumulate bitcoin, and so in those kinds of cases, he may well choose to purposefully hold back some value for the purpose of buying dips that may or may not end up happening. Of course there are trade offs in regards to holding back value for dips, yet each person is free to figure out his own level of balance that includes his assessment regarding the extent to which he is already sufficiently prepared for UP within the available money that he has and any of us cashflow management efforts and/or back up funds that he has.. including that he may well consider assessing his 9 individual factors in order to conclude what his balance of priorities is going to be regarding buying now versus holding back some value for possibly buying dips.
Another thing that frequently is mischaracterized about DCA is that DCA involves small amounts invested and deferring the investment into bitcoin, and surely the extent to which individuals choose to put in small amounts and/or to defer their investments is up to their tailoring of their strategy, since DCA allows the individual to choose their level of aggressiveness including the amounts that they buy and also the extent to which they buy as soon as money comes available or if they might defer some of their investment amounts into bitcoin.