DCA rising market? \ stacker news ~bitcoin

1 sat \ 8 comments \ @User21000000 17 Jan 2023 bitcoin

Looking for peoples strategies with DCA ing

Do you dca no matter what or do you only do it on a declining market

Or stop at all time highs etc interested in your opinions

2 sats \ 1 reply \ @ExponentialBTC 17 Jan 2023

Dollar-cost averaging is a good strategy for investors with lower risk tolerance since putting a lump sum of money into the market all at once can run the risk of buying at a peak, which can be unsettling if prices fall.

https://www.investopedia.com/articles/stocks/07/dcavsva.asp

DCA is also for those who don't have the funds to invest up-front, so they invest from their income over time as they earn.

But DCA is rarely the optimal investment strategy.

or do you only do it on a declining market

Do you mean buy periodically only when bitcoin is dropping, but the stop buying as bitcoin is going up? That's more trying to time the market than it is a DCA strategy.

If your investment horizon is 5+ years, then today is when you do the lump sum purchase of bitcoin. And you hodl. If you don't have funds for a lump sum purchase, then you can DCA, using as much as you can afford but not at the expense of having savings for emergencies and such. You don't want to be forced to sell from your stash at a later time when the exchange rate might not be in your favor.

If you are only looking at short term trading gainz to acquire more fiat, DCA isn't the strategy for that anyway.

10 sats \ 0 replies \ @User21000000 OP 17 Jan 2023

Thanks for that love the dca just feel like I could have stacked a lot more sats for less

1 sat \ 2 replies \ @TheBTCManual 17 Jan 2023

I DCA no matter what and if the average price for drops by 15% or more I will double my DCA for that time and so on, I always try to increase my DCA as it goes down

0 sats \ 1 reply \ @User21000000 OP 17 Jan 2023

Nice how many did you double it on this recent decline must have been a few times

1 sat \ 0 replies \ @TheBTCManual 17 Jan 2023

lol 3x but if it lasts more than 3-5 days at that level I reset to my normal DCA figure and then keep some dry powder for any dips in the future

1 sat \ 1 reply \ @Hermit 17 Jan 2023

It's a good a question. DCA while is cheap, stop when it overheats. Those are relative concepts

Probably continuing DCA till 6-8 months into the next halving, then stop until the next cool down/crisis.

60K or 80K is cheap. No need to stop in 2023 at all. Stock to flow model can serve as a reference for overheated signals.

0 sats \ 0 replies \ @User21000000 OP 17 Jan 2023

That’s what I’m thinking possibly stop once we pass all time highs or do you ride it a bit past that last time I just kept buying all the way up til the top then all the way back to now.

Thinking back not the greatest way surely but knowing when to stop is hard then buy again

1 sat \ 0 replies \ @BitcoinIsTheFuture 17 Jan 2023

Yes everyday on Swan. Low fees normalizes the volatility! Also free to send to cold storage! I also DCA with a Bitcoin rewards credit and debit card.