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31 sats \ 7 replies \ @Undisciplined 13 May \ on: Basic fundamentals about DCA with bitcoin bitcoin
One of the keys to doing DCA is keeping the amount small enough that you don't have to worry about having sufficient funds.
You can still do ad hoc purchses, as your finances allow or as exchange rates become more favorable.
DCA's value is that it is a very efficient way to accumulate an asset that requires almost no thought.
Another useful strategy (once you built up a decent stack) is to maintain a Fiat-BTC balanced portfolio (say 95% BTC and 5% Cash).
Monthly re-balance the position. So if BTC goes up, that means selling some to keep the 95-5 in balance. The maxi in us hates the concept, but its what the pros do.
The real long term benefit of this is you will buy all dips. You just need to think of the cash portion as "future dip buying material" to quell the maxi in you.
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I would prefer a balancing strategy that monthly rebalances between Bitcoin and other real assets, like stocks or commodities.
You'll probably have to use fiat as an intermediary in the rebalancing process, but I don't see why you'd want to maintain a specific position in fiat.
Yee haw!
When I first started out investing, I contributed $50 monthly to a robo-advisor. No shame in starting small. It’s worse not to have started at all
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Yep. Slow is smooth and smooth is fast.
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I think this platitude will stay in my mind for a while!
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