reply on: DCA rising market? \ stacker news ~bitcoin

2 sats \ 1 reply \ @ExponentialBTC 17 Jan 2023 \ on: DCA rising market? bitcoin

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