This question won’t be relevant to some of you since you get remunerated in sats, but for the rest of us, DCA regularly into BTC is something we have to think about.
Now, if my experience on r/cryptocurrency is anything to go by, DCA itself becomes a loaded term. The traditionalists invest the same amount of money into BTC at regular intervals, regardless of the price action. They may automate their buying process and stack sats directly after receiving a paycheck or having it run on particular days of the month. Others mayn’t choose automation, preferring to buy BTC on a more regular basis. I don’t think it is unheard of for people to stack sats as part of their morning routine (See habit motivation ritual); I do wonder how they cope with the transaction fees since they buy BTC so often.
Then, there are others who take a more liberal approach to DCA. Some prefer to maximise their potential gains and watch the market, going in when the price shows a dip. They may refer to the Fear and Greed Index. (Traditionalists will decry such a practise and not consider it DCA but timing the market.) Others prepare a war chest and go all in and buy extra sats, increasing the frequency of their DCA.
Regardless of the approach you take toward DCA, I think it’s safe to assume that you have decided on a stacking goal and consistently tracked the amount of progress you have made.
Which Atomic Habit is part and parcel of your DCA routine?
Nice try, Fed.
reply
Some day, I will write a post on the Nice try, Fed mindset!
reply
Well, it takes one to know one.
reply
I never understood the DCA mindset. I would rather make a choice to buy whenever I feel comfortable financially. It sporadic depending on my finances. That way I dont have to stress if I have enough money for the money or not.
reply
Does the act of buying give you extra joy for the day? Or is it more like “darned! I must seize the opportunity n buy today!”
reply
It depends on my mood. Sometimes when I buy it I am just doing it to do it. Other times when it dips, I might get a bit excited lol
reply
I'm also more of a lump-sum'per.
reply
if you dca small amounts, I feel the fees would really add up. I guess it doesnt really matter in the long run, but it hurts my heart a little bit every time I see that fee lol
reply
That, and DCA'ing on-chain creates a whole lot of small UTXO's, something that can really ruin your day on a later stage.
reply
How do you get the most out of your UTXOs? Make it your money’s worth? Any tips?
reply
I save some fiat, and buy the equivalent amount of satoshis at once, leaving me with only one (normal-ish) UTXO.
It's also called "lump-sum".
reply
10 sats \ 1 reply \ @gmd 13 May
I started to DCA because I am an irrational chimp and always want to buy when the price is going up and always worried it's going to drop further when the price is down.
reply
I dont think it is bad to buy bitcoin on a schedule, it just isnt for me. And why dollar cost average when you know the price is going to increase, and you are going to be not touching them forever. You already know you will be winning, do you need to ring every bit of profit for your joy?
reply
Daily DCA. I will double or triple it when Bitcoin is in a downtrend.
reply
Let me guess. Using Shakepay? Or the app that gives you sats for shaking your phone every day?
reply
Does shakepay actually work? Maybe I should make my kids do that lol
reply
Yes works great. I think it's only in Canada though. Are you in Canada?
A couple drawbacks with shakepay is the spread is a bit high when you buy. Around 1.3% over spot. You do get a lot of rewards though. Between the daily shaking and sats back rewards from using the shakepay visa (which I don't use too often- spent maybe 5500 on it in 2 years) I have stacked over 500k sats in rewards. Also they offer free withdraw with a 100k sat withdraw minimum, so that saves you on fees. The other draw back is they claim to be a bitcoin centric company but they support eth. I don't agree with this, either be bitcoin only or be a crypto casino and offer all kinds of tokens. By offering just bitcoin and eth they are giving undue validity to eth and promoting it to bitcoin blue chip status.
Also they had a data breach last year. Happens to a lot of companies but I don't like the idea of the company that has my address and how much bitcoin I have stacked on their platform having data breaches.
Overall a good product, excellent user friendly design but a couple drawbacks that I mentioned.
reply
No, I am not in Canada. Too bad, I am in the USA.
reply
I have almost a full year shake streak going.
I am a bit annoyed with shakepay but I can't resists the sats rewards.
reply
DCA is the best way to save for the future.
You don't have to take a look of the graph, you don't need to know the future, you just need to follow your plan.
Every X day of the month I sell X amount of dirty money.
It's a stress free plan.
reply
The benefit of a habit is that it removes thinking out of the equation. No second guessing, just do it
reply
In my case I am more a kind of lump sum guy, I buy when I can and wait good opportunities. Since it is a kind of lump sum it is not that hard, just have to wait. So when there are nice drawdowns I buy, when there are not I wait. In 2022 however I bought everytime I could more in a DCA fashion. Since 2024, when there is a drawdown I feel smart to buy so there is a good psychological effect.
Now I am more focused on saving money to go to Bitcoin conferences than buying Bitcoin though. Going to Nashville will require a lot of money!
reply
I like your ambition! I hope it comes true
reply
In most my cases when I bought the dollar price drops next days and it fuels FOMO. When I started DCA I got rid of FOMO, cause you buy at low you buy at high you but no matter what the price is and eventually you're winner of the race
reply
Ya I think having the feeling of control is most important
reply
Xactly. In all what described there's one problem. I should trust exchange until I withdraw sats behind my private key and then I can talk about full control
reply
I've bookmarked it because I think I have alot of bad habits to remove. This is great post.
reply
Oh “bookmarked it” is music to my ears. Thanks mate
reply
Thanks, I now know what is DCA. Good post.
reply
Glad this was informative for you!
reply
I don't get paychecks now. But I get money from my investments and whenever I get a huge portion of it gets automatically approved for Bitcoin. I'm kinda liberal and have been investing in Bitcoin regularly for more than 2 years now.
reply
Are you gonna cut back now that fatherhood is upon you? xP
reply
No, surely no. No need of doing that. I'm living in much abundance considering my needs at the moment or in coming future. As I said earlier, almost all my earned money throughout all the years since 2007 had gone to investments and by doing so I've created a pipeline of income. So, you can understand.
reply