in

Stop trying to time the market, DCA FTW!

Probably a repeat PSA, but seriously, if you’re new (or even not new) to crypto, look into DCA-ing into your favourite coin rather than trying to buy the dip(s).

Quick recap: DCA-ing or Dollar Cost Averaging is basically investing the same amount of money at set intervals over a long period, riding the market up and down… instead of trying to beat the market.

It averages out the buy-in price and is a great way to take emotion out of the equation.

A lot of exchanges have the option to do recurring buys, completely automating the process 🙂

Anyways, thought it was worth repeating the message for the newcomers. Have a play around with this DCA calculator (I use Crypto Head but there’s a few out there) to see what your ROI would have been if you invested X amount of BTC over the period of your choice.

[https://cryptohead.io/dca-crypto-calculator/?crypto=bitcoin&fiat=USD&qty=10&frequency=weekly&start=2014-01-01&finish=2021-03-02](https://cryptohead.io/dca-crypto-calculator/?crypto=bitcoin&fiat=USD&qty=10&frequency=weekly&start=2014-01-01&finish=2021-03-02)



View Reddit by Nexul1View Source

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

GIPHY App Key not set. Please check settings

41 Comments

  1. I Would like to share my DCA strategy:

    * I Calculated how much money I can afford, want to buy with every month, and got to the sum of 100$ for example.
    * I decided to buy in **Every week** so I divide my **100$** to 4, **25$** per week.
    * I Love Bitcoin and Ethereum but I want to invest into some altcoins too, therefore I decided to Put **50%** of my weekly investment into Bitcoin or Ethereum and **50%** on an Altcoin that caught my eye this week (or an old Altcoin ofc).

    **My Rules:**

    1. Never skip a week, Prioritize days with a small dip.
    2. If there is a big Dip I allow my self to “borrow” money from next week to buy Double the amount this week, I allow my self to do it once per month.

    There are many other options when it comes to DCA , some people will prefer buying every single month at the 1st, others will prefer to choose 4 dates to buy in like : 5,10,15,20 .

    # You need to find the Strategy that suits you!

    My Strategy works just fine to me even tho some people can say its not Pure-DCA or isn’t effort less like some other Strategy, but You do You !

    Take the Skeleton of the DCA strategy and make it suits your lifestyle.

  2. Why? I’ve made $25k buying shitcoins and trading them back into Bitcoin in the last two months.

    The trick is to never hold onto an altcoin too long, cut your losses if you have to and find a new alt that hasn’t pumped. Bitcoin is king.

  3. Everyone is a genius in a bull market…

    That applies to a lot of this HODL crowd as well. A lot of these “DCA HODLERS” will end up panic selling.

    What’s wrong with trading? Traders are what move the market up and down.

    I’m seeing a lot of HODL elitism and I know a lot of you will end up panic selling when the bull market ends.

    This echo chamber kills me sometimes.

    Invest how you want. Trade how you want. Diversify your options.

    This DCA HODL with no clear exit strategy is no better than the gamblers. Rant over.

  4. I do a mix of DCA and buying on dips if I have some extra money. I like it so far. Trying to microtrade tiny jumps in prices before it shifts down is ludicrous to me, too much stress.

  5. I concur. I started buying in April, once a month every month (the amount bought has gone up a bit every few months as I started to gain more confidence in my investments), and I’m up like 250%. Didn’t have to time anything!

  6. I’ll admit that I’m comfortable DCA some of my altcoins, but I can’t pull the trigger on Eth. Bought in at 1600 a couple weeks back, and watched the dip last night. Hesitation set in of “what happens if I buy at 1350 and it’s just one of the many dips soon to come, resetting back down to the 500s.”

    It’s the opposite of FOMO for me. I’m afraid of that instantaneous buyers remorse everyone memes about

  7. I wish you had posted this last month. I absolutely tried to time the market and learned DCA on my own. Thanks so much for posting this for other new people, as this is such an essential skill for survival.

  8. The problem with this – and also likely the reason why people dont do it as much – is that it only covers part of the question. Yes this is the way to build up your portfolio – but we are not in this game to have stuff – but to earn with it. As long as there is not a corresponding “and this is what you do for profit taking” people will not listen.

  9. I’m currently trying 3Commas and just the smart trade tool is making my life so easy. And I didn’t use the bots yet.
    I find it way more user friendly than Binance but maybe I’m wrong and I’m not using Binance correctly. Is there a way to do the same as 3Commas smart trade in Binance ? Or should I just keep using 3Commas if I’m comfortable ?

  10. Man, this is the way. Been doing this since last march 2020, it has been awesome. Ignore the noise.

    I picked 6 solid projects and DCA’d into them up until about early FEB. It allowed me to stack ETH at a nice pace since 250 dollars, and ADA all the way up the ladder until now.

    Do you think early fall will be a nice exit point?

  11. Diversification seems to help with the stress factor. If you can see a few coins doing good and a couple doing bad it feels better than 1 coin all red.

    But fuck that I sold everything and went into ADA at 1.33. LETS FUCKING GO!

  12. I check the price constantly and also apply DCA, I like to check my portfolio and to follow the market. The reason I don’t stress too much is because I didnt invest more than I can afford to loose

Loading…

0

What do you think?

Cryptopolitan

Binance Smart Chain unique addresses hit 47.3M ATH

Analysts: XRP to Plunge Further Even After 30% Drop on SEC Lawsuit

Saylor Sees Bitcoin Regulation as Greenlight For More Institution Inflows