One of the advantages of DCA is that you can tailor the ongoing buying (whether weekly or otherwise) to your income level and also to your desired level of aggressiveness, and frequently aggressiveness should be determined based on the availability (and strength) of cashflows (and back up funds) rather than based on whether the BTC price might be going up, down or sideways.
The only thing mandatory for DCA is that you remain consistent and never break your buying streak. If you just remain consistent with what you initially plan to invest in Bitcoin like 100$ per week into Bitcoin then that 100 dollar per week can give you good return after 4 years or more. You can increase your profit, if you keep on investing more in Bitcoin as and when you have more money available at your disposal. DCA gives you all that liberty and we just need to understand that.
A person can invest with any amount of money according to his freedom, it is his freedom, so you can never force many people to invest with more money and there are many investors who can invest in Bitcoin with a small amount of money. However, we must keep in mind that we have to continue investing in Bitcoin by maintaining the continuity of purchase, and if a new investor invests in Bitcoin according to his ability and holds it for the future, he will definitely be able to sustain his investment with prudent income.
Therefore, investing in Bitcoin according to the DCA strategy is a very good idea, as it maintains the continuity of Bitcoin purchase.
The amount of money an investor plans to invest continuously considering his income will depend entirely on that investor because that person will understand his situation well. From the outside, we may be able to give some advice to other investors and if the investor likes those suggestions, then he can take our advice and make some decisions accordingly.
In the case of continuous investment, one actually needs a permanent income and some extra money excluding all expenses. That is why additional money is needed because when an investor invests in Bitcoin with extra money after meeting all his needs, he will not feel the pressure of that investment and when he can continue investing comfortably, he will already be interested in investing and he will be able to continue this investment for a long time.
DCA investment strategy is definitely effective whether he is a new investor or an experienced investor, but some things must be considered carefully as an investor.
For example, while investing, the investor should keep in mind that for some reason his investment may be irregular, but he should not suddenly sell the investment because if an investor suddenly sells their investment after investing in a long-term plan, it will actually be considered as trading.
Another important thing that should be added is the formation of an emergency fund. If there is this emergency fund, even if a sudden financial need arises, the need can be met using the emergency fund, in which case the investor will not have to decide to sell the investment.
You seem to be exaggerating what a newbie needs to either get started investing in bitcoin or to continue his investing.
With bitcoin and DCA, it is possible to invest in very small amounts whenever extra money comes available.. whether that is $100 per week, $10 per week or some other amount.
Yeah.. for most people expenses for living continue o a person needs to cover his expenses, so it would be preferable to have ongoing income if there is a desire to keep buying bitcoin and also if there is desire to avoid selling bitcoin, then back up funds are helpful to cover fluctuations in income going down and/or expenses going up.
Folks investing into bitcoin don't have to be consistent when employing DCA.
If you don't want want to maintain consistency then you have to figure out yourself when to buy and when not. We have already discussed that such strategies won't work as we have seen result of Saylor inconsistent accumulation strategy.
Each person can choose his level of aggressiveness or his level of whimpiness or if he has priorities in other places. Saylor's situation seems to show that he had been able to raise more money when the price was going up rather than ongoingly buying bitcoin, and likely Saylor/MSTR have other things going on in regards to how they might convince others to give them money to buy bitcoin.
Similar situations could happen to anyone, so for example, maybe a person first hears about bitcoin in mid-2020 while he is in college, and so he buys bitcoin at an average of about $10 per week, since he was mostly a broke college student.. and then maybe he graduates college in 2023 and it takes him a while to find a job. .and sure maybe he has income, but maybe he does not really get a raise and start to make more money until late 2024, so he ends up buying way more bitcoin starting in late 2024 and into 2025, and so now he is finding his average cost per BTC is more than $100k, and so, this guy might haver considered that he was doing as best as he could based on his own cashflow situation, yet if he is still ONLY in his mid-20s, he still has quite a bit of time that he could be building up his bitcoin investment and other aspects of strengthening his cashflow situation.. and maybe even trying to work on getting promotions and other goals that he might have to find spouse (which process might also cost money to wine and dine and entertain such creatures.. hahahahahaha). ..
Maybe the guy is ballparkedly considering his bitcoin investment timeline to be in the ballpark of 15-20-ish years.. .depending on his own finance and/or how bitcoin might perform between now and 2046-ish. Yeah, of course if bitcoin ends up paying off earlier for him, then he is o.k. with that, yet he is trying to be somewhat realistic about his own career building and life building that goes along with his investing into bitcoin.
In other words, guys are working from within their own situations, and they might even go through bearish and bullish sentiments around bitcoin that might contribute towards their chosen level of aggressiveness and/or priority to give towards bitcoin investment.
I could not agree with you, because if you have to invest according to the DCA method, then you must maintain the continuity of Bitcoin purchases. The comments you have made will confuse the newbies, so you must move forward towards the future by investing in Bitcoin and maintaining the continuity of purchases, and this is the only good plan to increase your Bitcoin portfolio. In the current situation, to move forward towards the future with Bitcoin investments, more prudent income is needed, so those who employ Bitcoin through prudent income are the only ones who will be able to reach the destination according to the plan.
I don't agree on this. It isn't compulsory that an investor using dca must invest consistently. He can invest in his own convenience when he has discretionary income. One of the importance of dca strategy is that folks can buy bitcoin regardless of when they have discretionary income. Folks that don't have stable source of incomes can benefit from using dca as they can invest when they have discretionary income. However folks who accumulate bitcoin at regular interval weekly or monthly using dca reach over-accumulation faster than folks who don't invest consistently.
DCA actually work when people doing this strategy is consistent, since the point of this is to make their accumulation smooth by buying regularly. If investor choose only to buy at their convenience then I think this is not actually DCA method, but rather a lump sump strategy which has been done occasionally.
The real benefit of using DC since it takes out those waiting decision while the investors will slowly build good discipline. This is the reason why those consistent people get more volume more faster compare to those people buying Bitcoin on occasional basis.
The DCA strategy should work or aling with an investor cash flow. For those that don't have a stable cash flow or irregular cash flow they can DCA whenever the discretionionary Income is available to do so and the DCA strategy will still work perfectly for them. However what consistentency does is that it increases an investor bitcoin holdings with time.
This is a very misleading statement. DCA strategy can never work without CONSISTENCY as it is the basis on which the idea of DCA strategy revolves around ,once consistency is removed then its stops being true DCA and starts to look like random investing. DCA strategy requires discipline and repetition because those two factors are actually what makes it work.
You are full of shit, @Kryptonite788.
DCA allows people to customize the amount and the frequency of their BTC buys however, they like - whether consistency with the availability of funds or whatever other priorities that they might have that they are balancing against their bitcoin purchase choices.
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Bitcoin is like a puzzle that you need different pieces to solve it. These pieces include Consistency, DCA, Patience and Discipline, and Building Emergency funds. Incorporating all of them put you in a better position than other investors who takes one or two out of those pieces and leave the rest. Being consistent with small amounts won't give the kind of gain someone is looking for in the long term. Although no amount is really useless, but If you are a person who invests little funds into Bitcoin and you hope to get good returns, try to get another source of income in which you can use to increase your discretionary income. But if you are someone who wants to stick to that little amount even though you have other means to increase your income then the thought of seeing massive gains should be removed. In as much we've talked about Consistency and DCA , someone who doesn't have patience and discipline to hold through tough times will sell prematurely. Then all your efforts will be wasted.
I don't like your "bitcoin is like a puzzle" idea, since I prefer to think that bitcoin is accessible to everyone and anyone as long as they have discretionary funds and they are not retarded, and no special talents are needed except to get started buying it and even to maintain weekly buys, as long a discretionary funds are available each week (or can be made available)...and the person figures out ways to start out slow and then just ongoingly learn from practice and paying attention, and such practice will help normies to both build their bitcoin stash size and to build their cashflow management that involves the building up and maintenance of back up funds..
Those who still think that Bitcoin is a puzzle may still be far behind the world's movements. The biggest reason for saying this is that Bitcoin is currently the most reliable and the biggest tool to fight inflation. As we can see, Iran's financial situation is not very good at the moment and they have been mining Bitcoin for a long time and Iran is currently facing a big danger. At this time, it is being heard from some places that Trump has threatened to destroy Iran's power plants and the biggest reason behind this is that they cannot mine Bitcoin. He has taken this decision to make their economic situation even worse, but I really don't know if this has happened or not. I have heard from some places and it seems to me that Trump may have announced the demolition of the power plants for this reason.
How big a role does Bitcoin play in a country's financial policy and many countries are accepting Bitcoin and many big companies are accepting Bitcoin. Even so, those who think Bitcoin is a mystery may not yet be familiar with the reality.
You are making a new point that seems to be arguing that bitcoin has some complicated aspects related to geopolitical strategies, and even potential battle related to bitcoin, which is not untrue, but suggests that bitcoin complicated rather than it being potentially straight forward as an investment..
Accordingly, if we are talking about personal investing into bitcoin, we likely should be attempting to start out with straight-forward basics in terms of our own financial abilities to buy bitcoin, and to adjust our position according to our comfort level and our cashflow situation.. and surely we can choose to buy bitcoin in very small quantities, and if we have capital, it could well be possible to buy bitcoin in decently large quantities.
There can be ways in which bitcoin is complicated and mysterious, yet in terms of investing into it, we do not need to get boggled into tryin to resolve the various bitcoin-related mysteries before getting started investing into bitcoin or even before working on figuring out aspects of our own
individual factors.
