I find this article quite stupid. The imperative and paternalistic tone is childish.
DCA-ing is a way of entering Bitcoin. Lump-sum is another. Not buying Bitcoin at all is another. Going all leveraged is another.
They all have advantages and disadvantages. Different people with different lives, needs and financial plans should take different courses of action according to what suits them better. Telling the whole world "do this one thing" seems very much arrogant.
I think you could have made a "The issues of doing DCA in comparison with the lump-sum strategy" with 80% of the content you have here and I would have enjoyed it a lot. But, in my opinion, you ruined it with that tone.
First and foremost, dollar-cost averaging reflects a fiat mentality. If you view Bitcoin solely as an investment and are concerned about "maximizing profits" it suggests a lack of understanding of Bitcoin, and very likely you will sell-out back to fiat as soon as the fiat price skyrockets.
makes whole good articles "taste bad" since they seem to not be written in good faith / very biased.
For me, DCA is a risk management strategy. It's not about max returns. It's about human psychology and spreading out your committment over time instead of taking a leap of faith and potentially getting burned and scared and selling at a huge loss because you've your life savings getting evaporated and want to cut your losses.
Trying to frame DCA as a "fiat mentality" seems to completely miss this point.
For example, if I'm a father of four, DCA-ing my wealth over 4 years might make more sense than lumpsum-ing for me to enter Bitcoin, even if I eventually want to end up all-in. Because I can't afford my net-worth to ever go below, say, 50% of what it is today, without putting my family's day to day material well-being on risk.
Just a random example. You could make another one the other way around showcasing how for someone else it makes all the sense to forget about DCA and just go balls in. I mean, I'm not the best example of caution and you know it :)
hopefully, a substantial amount of savings in fiat that can cover your expenses for several months in case of immediate emergencies.
Now, imagine your boss kindly sends you $10,000 as Bonus
Now we're suddenly talking about emergency funds and bonuses. Moving the goal posts?
I thought you meant literally all in, 100% bitcoin, 0% fiat at all times
Complete exposure to volatility
That's at least what I am arguing against and in favor of DCA.
My point with this "You Shouldn't DCA Bitcoin" is that instead of spreading out the conversion of those $10,000 over a year (buying small amounts regularly), i suggest converting the entire sum at once and avoiding the DCA approach altogether.
Okay, I see. I can agree somewhat with that.
I guess the best is a mixed strategy: lump sum first, then "DCA" (or however you want to call regular buys) and buy the dips
My intention was not to suggest that individuals with a family of 10 should all their money into Bitcoin all at once leaving them without enough fiat for monthly expenses and emergencies. That's just crazy.
TL;DR — No DCA-ing, go all in on Bitcoin as soon as you can.
I hope you can see where this misunderstanding between us comes from.
Could quote more comments from you but currently not enough time. Maybe later or if you want more clarification.
I'm very confident your intent is good, but I have to tell you it's quite confusing to have someone make an article titled "You Shouldn't DCA Bitcoin", with the sentence "No DCA-ing, go all in on Bitcoin as soon as you can." as TLDR, only to afterwards say that they recommend people to DCA.
I would personally reconsider the way you deliver the knowledge. The spirit is good but this approach could wreck a lot of confusion on people...
Here's my .02 -- a lot of @Onions post have the general vibe of "Here is the truth and the one right way, and if you don't share this perspective you're a fucking idiot, HFSP lol".
And maybe that's really how you do feel, @Onions, and if so, that's fine, you do you. But I personally find it so tired and so off-putting. JFC, does the space need more know-it-all aggressive assholes? Is there anything that is in greater supply in btc than that?
About some people, I wouldn't even bother to say anything. They're mimetically sealed, they're locked into that identity. But I get the sense that you could take a different approach, if you wanted. And the btc space would benefit if you did.
Have fun having less bitcoin. Advocating for people to trade dollars to have less bitcoin is literally slowing down bitcoin adoption and pumping dollars. Maybe if you DCAers had not been so innumerate, OP would not have had to write this!
If one is converting to Bitcoin on payday, they are DCAing regardless. If one makes a lump sum with all their savings at a cycle top, they will be very disappointed in this method, and possibly negatively impacted for 2-3 years.
Never go back to fiat. Once you convert all your fiat stash in BTC, just keep it as it is or use it as money.
If you regret because you bought at x price... you are anyways a loser because your mind is still thinking in fiat.
That's all.
This. If your goal is to acquire as much Bitcoin as possible there's only two ways to do it.
You can either perfectly time the market and buy the bottom (which we all agree is difficult).
The next best thing is DCA (which is easy, even an idiot can do it and it doesn't require luck)
It's mathematically provable.
What point do you make saying something is not DCA, and then not defining it?
Dollar Cost Averaging. The definition is in the terms. One averages the cost of dollar purchases/exchanges over time. Like with weekly or monthly paychecks.
I agree. I don’t consider it DCAing if convert fiat into bitcoin as soon as you get the money. My thought is that if you got $10k bonus today, lump sum would be you go and buy $10k worth of bitcoin. If you instead got $10k but decided to spread out purchases to $1k a month, that would be DCAing. Everyone is averaging the cost of the dollar purchases unless you have no income or money coming in and truly do a single lump sum purchase with absolutely everything you have.
Sorry if this comes across as rude, but this is beyond fucking stupid.
I guess you must be super wealthy or something, and thus it's of no concern to you to be worried about how much Bitcoin you're actually getting when you acquire more of it.
Personally? I'd much rather have more Bitcoin than less of it. Very strongly doubt that I'm in the minority when it comes to having that preference, either.
I swear, some of you have allowed your hatred for fiat currency and your advocacy for Bitcoin to turn into a delusional fanaticism. People like yourself, with this kind of attitude: your elitism, your condescension, the smug self-righteousness -- all of it...you are ultimately doing a much better job of pushing people away from Bitcoin than bringing more people into the fold.
"Hey you, Mr. Joe Average -- yeah, I'm talking to you, fiat using loser pleb! You should take your entire paycheck, hell, take all of your savings and buy Bitcoin with it, right now. Sure, it might tank 10% in a day, but who cares? At least you're not using FIAT! You need to adjust your time horizon, newbie!"
Going all-in is better than DCA-ing. It's just math. Read part 2 and wait for part 3 where i will go more in depth. If you don't get it after part 1, 2 and 3, then have fun staying poor.
It is very obvious that it means when you have a chunk of savings whether to divide it across a number of regular periods, or lump sum. Obviously not related to "salary DCA"
Tell that to those who went all in above 65k. DCA is good for stress free investment in trending markets like Bitcoin. DCA may be bad in other markets but it is specifically good in Bitcoin.
Sadly, I cannot de-zap you - I accidentally zapped this comment, and I'm just pointing that out because this is a fucking idiotic comment and I would never have done so intentionally.
"$16K or $65K, doesn't matter, it becomes insignificant in the long term" -- yeah, tell that to people who are financially struggling and have bills to pay.
You do realize that what you are saying in your post here is actually advocating for DCAing, no?
Yes I agree and I do the same. But it is not easy to do that. You may be lucky and many end up stressed and with a need to constantly check the charts. Some people prefer to set it automatically and forget about it.
many end up stressed and with a need to constantly check the charts.
Once you have a solid understanding of Bitcoin, the fiat price becomes less significant. My best advice for newbies is to adopt a long-term mindset (5+ years atleast) and avoid constantly checking the price (bad habit). You can begin by modifying the top section of the page:
Dump my full paycheck into bitcoin and DCA into fiat for bills....one of these days thewildhustle will pay all bills with bitcoin and be done with fiat for good
On 1. Isnt that still DCA but by a different name.
I speak as someone who swaps a steady amount of every fiat mine reward every time.
Get paid, pay bills, buy food/gas then leftover in bitcoin
On 1. Isnt that still DCA but by a different name.
I'm not entirely sure. It's not necessarily based on a specific interval (daily/weekly/montly), but rather on the principle of "as soon as I receive fiat, I convert it to Bitcoin.
What is the goal of the Bitcoin revolution? To give people back the power over their money, of course, but even more importantly, to teach people to make their own decisions.
Don't Trust, Verify.
So the important thing is not to tell others what to do, but rather to educate them to decide for themselves.
The key is not to say "You must do DCA or not," or "You must buy Bitcoin or not," but rather to help them understand the why of Bitcoin and present the options available to them to protect the fruits of their labor.
After that, it's up to each individual to choose the best option according to their needs, objectives, and profile.
This means that if someone who has spent time studying the whys and wherefores of Bitcoin decides not to embrace this revolution, there's no point in criticizing him or her since it will be their choice. That person has the power and can exercise it as they wish, even if it means rejecting the Bitcoin revolution.
If you have really tiny UTXOs, the value in fees required to transact them can be higher than the value of those UTXOs it self. You must learn UTXOs or you will get rekt.
I make a monthly ECA in bear markets, and it has been working well. I also buy occasionally in bull markets. The issue of transaction fees is important, and I have thought about it a lot. I have been paying about 1% in fees on each purchase.
Pretty much. As expected, the only response from this guy is to call you a "shitcoiner".
He did the same thing to me, as well. I guess it's easier than having to actually try to come up with a response. Who knows, maybe we'll get that in his "part 4" update to this thread that no one asked for...wherein he will admit that yeah, he was basically referring to DCAing this entire time, he just called it something else.
"If your goal is to allocate a specific percentage of your paycheck to Bitcoin each month, what you should do is sell your fiat shitcoin and get Bitcoin immediately after receiving your paycheck."
That's literally a DCA. Taking a specific % of your paycheck and using it to buy bitcoin is DCA.
Yeah this is pretty face value imho. Do what you want to do with you fiat shitcoin, either lump-sum in or DCA into bitcoin. Who actually cares? Live your own life dude
If you go in all at once, then it is much harder to hold when the price dips.
The first thing to do is to learn about bitcoin. When you feel like you know enough to explain why bitcoin is unique and is the digital currency that has durable value, then you are ready to invest in Bitcoin for the long term.
The premise of the problem is biased. The problem is: Given that I know Bitcoin is the hardest money, but I earn my paycheck in fiat currency, which is the strategy that maximize my ownership of Bitcion. DCA is the answer.
If you hate fiat so much then take any other hard asset, house, car, food and guess what happens. Bitcoin is volatile against all these. And it is ok. It is perfectly fine to dca your favorite asset eg into longterm money battery which is bitcoin.
You keep posting this retarded fucking link thinking it's proving your point, it's not.
For fuck's sake, they're using a DAILY "DCA" versus a "lump sum and hold for 3-4 years" comparison. No one is buying Bitcoin daily and considering it "DCA", first of all, the fees alone on that would be ridiculous. Secondly, the price variations day-to-day combined with making a smaller purchase amount on a per-day basis are OBVIOUSLY going to have a smaller return versus purchasing a larger amount on a weekly, bi-weekly, or monthly basis (combined with the larger variation in the BTC:USD price).
I'm not even going to waste my time writing out the math on this. There's a reason why the person who posted that twitter link you keep spamming the thread with, disabled replies to their post.
So no, how about YOU learn some basic fucking math?
You are using the DCA approach but without the tool (fiat), put bitcoin there and ta-daa, magically, DCA makes sense again because, your wealth is safe. Also, go all-in is no-brain plan. I'm not going to say to my potential bitcoiners-wannabes to convert the entire amount at once rather than DCA-ing over an extended period, you make small steps, not the nuke option. As a matter of fact, even if I tell this to more experienced people (shitcoiners, maxis) who has more time in this field won't take this seriously.
I remember when I waited for bottom to enter and was upset if next day price was lower.
After that I decided to enter DCA club and buy $13.37 daily. With DCA I don't care about price at all, I just now my wallet increases everyday
I have found that DCA is the way for me to get step by step into BTC. Maybe is not the more profitable approach but for the people who gets a fiat income and bill's....is not "safe" to do an all in strategy.
I can not pay my mortgage with SATs and I can not pospone the payment until the numbers go up...
I do and recommend DCA. Sorry to disagree with your idea.
I mentioned this before, DCA is the way to go for newbies, and that's what i recommend. For advanced Bitcoiners, it doesn't make sense do DCA in my opinion. But do your own research.
Stupid post. Pretty much all arguments are wrong.
DCA is perfect (and the best solution) for most people, espcially newbies who want/can only small amounts.
"All arguments are wrong", care to explain? What part of fiat is certain to lose value over time and bitcoin is certain to go up in value over time, is wrong? Why would you hold something that you know is losing value (specially if you live in a country with high inflation) and only convert small chunks of it to Bitcoin every week/month?
Mr. guy with "exploring crypto since 2014" in his bio
to convert the entire amount at once rather than DCA-ing over an extended period, you make small steps, not the nuke option. As a matter of fact, even if I tell this to more experienced people (shitcoiners, maxis) who has more time in this field won't take this seriously.