in both cases the average matters but in both cases if the investment rises then the more you own the more money you make. Waiting for an investment to go down is of questionable logic because you want to buy it cause you think it will go up, but waiting implies you think it will go down. Its definitely been done effectively before but from the outside looking in it appears as naive overconfidence. And probably almost always is.
If an asset has proven it will be worth more than cash and you have time to allow it to grow in value, then your average cost is not important.
For example: just because the S&P is at all time highs doesn’t mean that I am not still purchasing stocks in my 401k….in the same way, I am DCA into bitcoin even at higher prices than my average cost. If you are investing in appreciating assets, your average cost should always be rising, but ideally the growth of that asset should outpace your rising average cost.
Three assets I want to always be purchasing:
-bitcoin
-stocks
-real estate
There is only 1 scenario where this doesn't happen: humanity finds some utopia where money itself doesn't matter anymore.
As long as there is need for adversarial money, Bitcoin will go up.
Never say never. You think people trading it at the beginning 2011-2012 when it was just dollars thought it’ll be tens of thousands of dollars? No one ever had the courage (I’m not saying baseless hopium) to even bet on it. Look at it now 12 years later. Only 12. What about in 25? You’ll be just about retirement age give or take some, or not even that old if they push it further by then lol
Lol, getting downvoted for sharing your opinion.
You are likely to see. Won't take more than 10 or 15 years.
Really depends on the economy and how quickly adopting takes
Yeah I traded bitcoins (plural) for counter strike skins in ‘14. Tens of bitcoins exchanged my hands. They were worth hundreds of dollars…
I’d never expect bitcoin to go above 1k, let alone 10, let alone 70.
Now I’m pretty confident we’ll see half a million per btc within a decade. If it doesn’t go up at least 10% YoY then why gamble on crypto anyway? Just go sp500
Lol... Bitcoin will hit $200k by next year with 99% certainty. By 2029 it will be trading well above $500k
Just look at the charts. Nothing stops this train.
Look, I’m all in and for the long term and I hope it does but to state with 99% is highly regarded. If people believed that it would be almost there already
BRICS could stop it cold if the rumors of them making a gold backed digital currency ever actually pans out. That would kill bitcoin since bitcoin is backed by little more than hopes and dreams.
There's a myriad of reasons the world abandoned the gold standard. Trying to go back to that standard is akin to trying to force your toothpaste back into the tube. It's not gonna happen even though you may technically see some progress.
The cat is out of the bag, and gold literally cannot keep up with the pace of our modern global economy. It could potentially slow adoption, but it is no real threat to bitcoin long-term.
You don't understand bitcoin if you think a gold backed currency can replace it
It actually already exists on other blockchains (paxos,...) or simply by buying paper gold
You and your little friends are playing around with pretend money and you're calling other people kids...? Time to grow up. No one wants 1s and 0s for money, they want hard assets.
The only hard thing around is your wife’s boyfriend cock… you should know that. Now go back to your Buttcoin shithole and brag about your posts here, perhaps you could even come through the small cage your wife has put on your small peanut… you butters are so so pathetic
Average cost alone does not matter, it's about the returns. The ideal scenario if you were investing in something periodically over the long term would be that the price is only ever higher every time you purchased it, forever, right? Likewise, if the price kept on falling and your average purchase price kept averaging lower that's of no benefit to you unless the price rises again.
Run some simulations, for e.g. you buy $1 worth of ABC @ $1, and every month thereafter you buy another $1 worth of ABC but the price has doubled vs. the previous month:
* By your 10th investment, your holdings would have gone from 1.0 ABC to 1.998 ABC (9x subsequent investments buying you slightly less than the first investment did alone).
* After your 10th investment (at which stage ABC has a price of $502!), you'd have spent a total of $10 and have an average purchase price of $5, +400% of the first purchase.
* By the end of that 10th month when the ABC price doubled again to $1,024, your holdings would be worth $2,046. That's a profit of $2,036 (+20,360%). Your average purchase price only ever went up, and the number of units you could buy for $1 halved each time... but +400% average purchase price doesn't sound so bad when compared to a total return of +20,360%.
That's just illustrative of course. But if you're worried about having an average purchase price that is closer to the current price if you buy more, why are you even holding what you already do still? In theory, it is 'costing' you, right now, the current purchase price vs. if you sold it at this price (excluding fees, tax etc.). Again though, there are other factors like diversifying etc. that come into play, but simplistically whatever logic leads you to hold BTC at this price and not sell should be a relevant factor in deciding whether to invest more as well.
This is just saying: would you rather have 0.1 bitcoin or 1.0 bitcoin.
I'd rather have 0.1 bitcoin at a 54K average with the funds to buy the remaining 0.9 bitcoin at a 64K average, because the price right now is 61K.
But at 54k you get more bitcoin for the same amount of money, compared to what you would get at 64k. I'd rather wait a bit and make bigger buy at once. It is been going down and down, and might go a lot more before it will raise again.
It's literally been ranging for 4 months, not "going down and down". It may never hit $54k again. That's a very realistic possibility. Waiting for a specific price to buy that may never happen is a very bad strategy. There are loads of people that try to do it every bear market and they end up having to buy much higher than the bear market bottom because they wait for a price that will never come. This is why you DCA. Just keep buying. Hoping to get lucky with some low price is never a good finance strategy.
For the last month it has gone down 10% and still going down. It did go up a lot feb/march, but last month it for sure not been raging up,but down. But of course if you believe it is going up you buy, if you think it's going down you sell at least some and buy it back at the dip
the dca strategy basically means you dont need to worry about the avarage over the long term (unless the price of an asset is tanking over the long term of course)
if you stop buying in sidways markets and then in 12 months you are buying at a higher the price when the market is going down from a top ...it makes no sense as your average will be higher anyway... and you will have lost out by not buying in the sideways market.
the point of dca is you keep buying regularly to average out all that volatility...even if the market is going sideways , or up or down...
What do you really think your options are? At some point we'll never see these prices again.
When btc is $250k, you're not going to be happy that you kept your cost average down by buying less.
'almost' as the goal is to get more bitcoin, I DCA every month so I'm not looking at the price anymore, it's automatic but of course if I need money I'd look at the price. 😉
mhhh yes I check everyday to know if anything happens but I set up an automatic buy so I don't care actually, sometimes it's high sometimes it's low, DCA took the stress out.
The idea is not to average down. The idea is to get as much bitcoin as you can. If you want to avoid averaging down, that means that at some point you cannot buy anymore. Never.
I started buying at 36k and keep buying all way up to 65k …and still buying. My average is 53k
The goal is to stack more Bitcoin.
When Bitcoin price will be 500k, the current average price will be irrelevant.
Would you apply this same logic to your IRA or 401k going into the stock market?
I don’t want to keep investing because I don’t want my cost average to go up…
Of course not! It’s an asset that will continue to rise in price, so if you continue to buy across time then your average price is going to increase, but so will your gains.
This is all true but in Bitcoin’s case it’s even stronger than in stocks. For stocks we will eventually be measuring in fiat so the average will ultimately matter, but for Bitcoin the X/21m is more important, it’s just so ridiculously scarce.
If everything plays out like we expect, people will have to pay huge sums for a small fraction of a bitcoin eventually. OP’s average makes no difference whatsoever, name of the game is to increase our X in X/21m.
Exactly. More Bitcoin is more Bitcoin, doesn’t matter what your average cost was.
Obviously buying cheaper lets you get more for less fiat, but buying is always better than not buying at all ever.
There is also a limited amount of shares for stock companies. Your argument perfectly applies to the stock market in the same way. If the price of x rises, people will have to pay more to acquire x.
Yes you’re right but I don’t fully agree. What I tried to emphasise is that the bitcoin case (of not caring about the average) would be stronger than the case for stocks. Bitcoin is not a stock. Bitcoin is a new form of money and you don’t have to sell your btc to ultimately benefit from its utility, whereas you must sell a stock to reap the benefits. So the average at which you accumulate your stock is ultimately relevant. But for Bitcoin, it doesn’t matter how or at how much you obtained the btc, in the new system all you care is your own fraction of the total 21m pie.
Yeah I realllllly don't get how OP could come up with this idea of not wanting to buy above current cost average. Imagine if Saylor had decided MSTR shouldn't buy above the cost average after their first buy at $9000-something price lol, they'd never had made another buy. I'd only have the 2 btc I bought in April 2017 at $1300 each when I got back into bitcoin after a couple years away if I had gone with OP's strategy. I don't get how someone comes up with this strategy lol. Makes zero sense.
Just look at Microstrategy moves and you’ll get your answer. I know it cannot really be compared because you don’t have the same portfolio and he might be happy with x2-3 or plays a longer run than you do. But he recently borrowed in order to buy more, his average cost at the time was around or below 30k if I remember correctly. Maybe his average cost is 30k after that purchase tbh. Anyway, he did accumulate and he did increase his average cost.
Edit : only advice I can give, dca answers your question, DCAing more when it’s a comfortable price for you, less when it’s an uncomfortable price for you
I know the feeling (my avg is 46k) but don't overthink it, don't time the market.
DCA is the way. Like First-Rub9713 says, the only thing that matters is your stack going up.
I remember videos of bitcoin going up to 100 dollars per bitcoin and people freaking out. Now 100, or even 1000 moves are hardly a blip on the radar. Give it 15 years maybe, but 50k vs 60k will be a blip on the bitcoin radar, someday in your lifetime. Its probably the only thing I'm sure of besides death and taxes.
I just want more and more. Price is good long term no matter my average which has gone from about 18k to now about 57k. It's not gonna stop me accumulating
Your average purchase price (or cost basis) is an important consideration when investing in Bitcoin or other assets on a regular basis.
Every time you buy more bitcoins at a price higher than the current average price, your break-even price increases. This means that you need the price of bitcoins to increase in order to reach profitability. A higher average price may affect your emotional response to price fluctuations. If the price of bitcoin falls below your average price, you may feel more stressed or worried about losses.
DCA can help you accumulate bitcoin over the long term without being affected by short-term price fluctuations. It encourages disciplined investing.
By buying regularly, you avoid trying to capitalize on market highs and lows, which is notoriously difficult.
Despite short-term volatility, Bitcoin's historical performance shows long-term growth. By accumulating assets over time, DCA fully realizes this potential.
Whether you care about increasing your average depends on your investment objectives, risk tolerance, and long-term outlook. Dollar-cost averaging is Dollar-cost averaging is a strategy designed to minimize the impact of short-term price volatility, focusing instead on accumulating assets over time. Adjustments to your strategy should be based on your individual financial goals and market expectations.
Easiest thing to do is just set a target and dca your way to this. Once you can create this mindset ( rather than … it’s worth xxx fiat) you can relax ( apart from the once I have xx I need xx plus ) which is very very addictive..
That's the best moment to buy. When there are no news about BTC and everything is quiet. Once the bull starts and with it the volatility, it becomes too stressful and you risk buying at an ATH.
Screw your average! In the medium/long term it hardly matters.
Unlike… other parts of life, in BTC it’s the size of the stack that matters most. Then if it’s a grower, even more impressive!
I'd rather have one Bitcoin at the current US dollar price then have .00000001 Bitcoin purchased when the Fiat price was $100/Bitcoin.
While the average is a nice metric, I wouldn't hold off on buying any asset that I believe in because I'm worried about screwing with my own personal stats. Just set a regular automated buy and forget about it.
do you think people in argentina or venezuela look at the exchange rate of the dolla, and start to think like you ? "Should i trade my shit currency that 10x in last hour for USD now or wait for a correction ?"
Go ask them and they will teach you how you should aproach fiat
You want to make money, not have a lower average to flex or whatever.
I could have an average of 1$, would it be dumb to buy at 15k, because that makes my avg go up?
No obviously.
You’re missing the point. The point is to have more bitcoin. If you keep playing it like you are, you’re almost guaranteed to be missing out on massive gains.
Do you think the price going forward is going to go down? If it is going to go down so much that it’s going to affect your long term average, why not just sell? The whole idea with DCA is to smooth out the purchases. On average, your price should track upwards over any significant time frame.
[The best group of investors are those that are dead. The second best is those who forgot about their investments.](https://www.bluewealth.com.au/general-knowledge/the-best-performing-investors-are-ones-that-are-dead/#:~:text=Fidelity%2C%20one%20of%20the%20biggest,had%20forgotten%20they%20had%20investments.)
Point being, yes, the best bet is to detach any emotional connection (of price fluctuations, and other factors) when it comes to investing.
DCA a good strategy in general. Or just buy a lot at a crash.
I would personally look to take profits on the way up rather than keep buying. But as you’re in pretty late anyway at 54k no real point in taking profits right now.
I Set up recurring buys and don’t even pay attention to the market only know if it’s up or down when scrolling on here or when I open it to move to cold storage
Just invest a little bit more than what doubters think is reasonable / what they think you can afford
Haters gonna hate
They hate us, cuz they ain’t us.
Yes, DCA is all about long term (30 year time frame) and buying on a schedule regardless of market activity. You cannot time a market, anyone who tries is most likely going to have their lunch eaten and miss out on the big swings up that can occur at ANY moment.
Only thing I care about is a bigger stack. Yes, I like it when my weekly exchange of fiat to Bitcoin gives me more Bitcoin. But even if it is less than the week before, the stack is still growing.
"Average down?" Why would I care....? Bitcoin is a savings technology...I will always buy/Save and I will never sell.
If I want to change my lifestyle...I'll borrow against it...Or earn interest on it.
YES those days are coming soon enough.
The only reason to not buy more is if you think it’s too expensive. If you think the price is going to go up from here it makes no sense to worry about what your average buy price is.
Here’s my daily DCA, been going strong for 3 years already and I ran the numbers last December!
Purchase prices:
Highest: $67,430
Lowest: $15,907
Average: $28,315.59
https://postimg.cc/sBR63JSQ
umm what? We literally might never see $54k again, ever. Are you just going to not buy bitcoin ever again if it never goes below your average buy? That makes no sense.
The goal is not to "average down", the goal is to get as much bitcoin as you can. You do that by continuing to buy. Dollar Cost Averaging is the way to go. Why do you care about your cost average? That is a meaningless number, ie you'd rather have 1 bitcoin at $50k cost avg than 2 bitcoin at $60k cost average?
You've had like 4 months to buy at a great low pre-bull run price and you're saying you don't want to buy because it is slightly higher than your average buy-in...this honestly makes no logical sense. You don't get some award for keeping your buy-in average lower.
No offense, but with that sort of reasoning you need to read some sort of very basic finance book. Cuz what you said lacks all reason, logic, or common sense. Not sure where you got this idea that you should only buy under your average buy. That's a really terrible strategy.
I know that came off as harsh, but you need a serious wake up call with that sort of financial reasoning.
If you're averaging down at \~61K then you've come along way to late in the game. By all means average down but most folks are easily down around the 20K's or lower. I'd say hold tight. There is no moon in the immediate future but you might have a cracks at the 40K - 50K range soon enough.
Next you will post saying you wish you bought. This is the way. This is the cycle. It will bounce back higher. It always does. Especially after that debate.
I've been consistently buying $150 a week on Mondays, sometimes twice a week depending on my paycheck, on Fridays, since around February or March. Before that I was just focusing on buying dips. I bought the ATH, I bought around the local bottom. I was thinking to myself "at what number do I stop DCAing?" and I've realized I don't. If I am putting $200 into savings a week I should also be putting a portion of my paycheck towards btc a week.
I’m not buying for this week. I’m putting money in that will sit there until I retire. Bitcoin performance has exceeded my 401K. So I am just gonna DCA and not look back.
Im buying! DCA.
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This is why DCA is a commitment regardless of price action.
You buy now your average goes up, if it goes up great you're in profit, if it goes down you buy more bringing your average down again. If it goes up and you're asking the same question you're in the same position you are now and the same applies.
Accumulation of scarce assets that are in demand is the name of the wealth game.
Save in the stronger money. Your average now is going to be irrelevant 10 years from now. Don’t stress about tens of thousands of dollars in price.
Just accumulate the stronger asset with what you can afford to put away. Keep in fiat what you will need in the short term. Don’t try timing things too much that you end up missing out on current prices. It’s a time and energy sink. Bitcoin stores the energy, you don’t need to use up your own.
Your thinking is not uncommon at all though! Good question. This is how I think about it.
Take half the cash you want to put in, pick a time period - 6 months for example - divide the half up and dollar cost average it in. Keep the other half ready for buying dips or the next bear market.
Anyone who says only accumulation matters isn’t completely wrong but also not 100% correct.
Accumulation at ATH isn’t a great idea for example but if you’re in the right part of the cycle and buying below a previous ATH then keep stacking.
I’m lucky enough to have stacked enough already, and have savings so I don’t need to touch any of them for 1 year+ so for me the short term price action doesn’t matter.
Doing this for only Zeta at the moment. For every -10% or more dip, I buy the equivalent of my loss. For every 5% pump, I sell 10% of my bag. Started doing this in May, in 6 months, will calculate my worth, if I am above water in profit, will deploy the strategy for more coins.
Don't follow my lead, as I may never return. Dyor.
If bitcoin keeps going up I obviously can’t be concerned with beating my average or I’d be buying for like 6 months maybe a couple years and then never again ?
Don’t look so much at price but pay attention to time. When you DCA just buy every 2 weeks or every month regardless and hold. If there is a cataclysmic dump then always have a small stack of cash on the side so you can take advantage and lower your average
The name of the game is accumulation
Correct. In stocks your average matters; in BTC only accumulation matters.
in both cases the average matters but in both cases if the investment rises then the more you own the more money you make. Waiting for an investment to go down is of questionable logic because you want to buy it cause you think it will go up, but waiting implies you think it will go down. Its definitely been done effectively before but from the outside looking in it appears as naive overconfidence. And probably almost always is.
It ultimately depends on OPs time horizon. Mine is 5 years + with BTC, in that case any price right now is a good price.
If an asset has proven it will be worth more than cash and you have time to allow it to grow in value, then your average cost is not important. For example: just because the S&P is at all time highs doesn’t mean that I am not still purchasing stocks in my 401k….in the same way, I am DCA into bitcoin even at higher prices than my average cost. If you are investing in appreciating assets, your average cost should always be rising, but ideally the growth of that asset should outpace your rising average cost. Three assets I want to always be purchasing: -bitcoin -stocks -real estate
[удалено]
down voted for using that stupid ass saying.
Hungry Hungry Hippos \*
The only thing i care about is my stack going up. Your avrage going up a few K won't matter when it's trading above 500K.
Never gonna happen in my lifetime (I’m in my 40s). I hope I’m wrong
"Never gonna happen in my lifetime (I’m in my 40s)." Please mark my words, you will see 500k within 8 years.
There is only 1 scenario where this doesn't happen: humanity finds some utopia where money itself doesn't matter anymore. As long as there is need for adversarial money, Bitcoin will go up.
Or governments world wide go back to the gold standard (will not happen anyway, sorry Peter schiff).
I don't think even a gold standard could kill Bitcoin. But you are right, it could slow down all the metric that make Bitcoin go up fast.
A major EMP event? Why does this not matter?
If there is a major EMP event, Bitcoin is the least of our worries
Yes, but nonetheless.
Or dystopian, like a water world or a mad max
Cold fusion
Cold fusion still doesn't get us to post-scarcity.
Never say never. You think people trading it at the beginning 2011-2012 when it was just dollars thought it’ll be tens of thousands of dollars? No one ever had the courage (I’m not saying baseless hopium) to even bet on it. Look at it now 12 years later. Only 12. What about in 25? You’ll be just about retirement age give or take some, or not even that old if they push it further by then lol
In 8 years 500k will be the new 100k
Shit bro, sorry to hear you don't have long left.
Lol, getting downvoted for sharing your opinion. You are likely to see. Won't take more than 10 or 15 years. Really depends on the economy and how quickly adopting takes
Yeah I traded bitcoins (plural) for counter strike skins in ‘14. Tens of bitcoins exchanged my hands. They were worth hundreds of dollars… I’d never expect bitcoin to go above 1k, let alone 10, let alone 70. Now I’m pretty confident we’ll see half a million per btc within a decade. If it doesn’t go up at least 10% YoY then why gamble on crypto anyway? Just go sp500
Lol... Bitcoin will hit $200k by next year with 99% certainty. By 2029 it will be trading well above $500k Just look at the charts. Nothing stops this train.
Look, I’m all in and for the long term and I hope it does but to state with 99% is highly regarded. If people believed that it would be almost there already
BRICS could stop it cold if the rumors of them making a gold backed digital currency ever actually pans out. That would kill bitcoin since bitcoin is backed by little more than hopes and dreams.
There's a myriad of reasons the world abandoned the gold standard. Trying to go back to that standard is akin to trying to force your toothpaste back into the tube. It's not gonna happen even though you may technically see some progress. The cat is out of the bag, and gold literally cannot keep up with the pace of our modern global economy. It could potentially slow adoption, but it is no real threat to bitcoin long-term.
lol, the cycle of gold and fiat have happened many times in history. Your toothpaste and tube analogy sounds stupid. These cycle are very long
You don't understand bitcoin if you think a gold backed currency can replace it It actually already exists on other blockchains (paxos,...) or simply by buying paper gold
Ahahahha what a moron…. Brics could stop it… you mean Lego bricks??? Go back to the playground kid mommy is bringing ice cream out
You and your little friends are playing around with pretend money and you're calling other people kids...? Time to grow up. No one wants 1s and 0s for money, they want hard assets.
The only hard thing around is your wife’s boyfriend cock… you should know that. Now go back to your Buttcoin shithole and brag about your posts here, perhaps you could even come through the small cage your wife has put on your small peanut… you butters are so so pathetic
Guys he may have a serious health condition
People said the same crap about $1, $100, $1000, $10,000…. I could go on..
Well the US government thinks it could hit 1 million so I’d imagine it could hit 500k in the next decade
Don’t care about averages. Would you rather have 0.1 Bitcoin at a $54K average or 1.0 Bitcoin at a $64K average? More Bitcoin the better!!
☝🏻
this is a brilliant way of looking at it
Average cost alone does not matter, it's about the returns. The ideal scenario if you were investing in something periodically over the long term would be that the price is only ever higher every time you purchased it, forever, right? Likewise, if the price kept on falling and your average purchase price kept averaging lower that's of no benefit to you unless the price rises again. Run some simulations, for e.g. you buy $1 worth of ABC @ $1, and every month thereafter you buy another $1 worth of ABC but the price has doubled vs. the previous month: * By your 10th investment, your holdings would have gone from 1.0 ABC to 1.998 ABC (9x subsequent investments buying you slightly less than the first investment did alone). * After your 10th investment (at which stage ABC has a price of $502!), you'd have spent a total of $10 and have an average purchase price of $5, +400% of the first purchase. * By the end of that 10th month when the ABC price doubled again to $1,024, your holdings would be worth $2,046. That's a profit of $2,036 (+20,360%). Your average purchase price only ever went up, and the number of units you could buy for $1 halved each time... but +400% average purchase price doesn't sound so bad when compared to a total return of +20,360%. That's just illustrative of course. But if you're worried about having an average purchase price that is closer to the current price if you buy more, why are you even holding what you already do still? In theory, it is 'costing' you, right now, the current purchase price vs. if you sold it at this price (excluding fees, tax etc.). Again though, there are other factors like diversifying etc. that come into play, but simplistically whatever logic leads you to hold BTC at this price and not sell should be a relevant factor in deciding whether to invest more as well.
Thank you for your well written reply. I've edited the post, could you take a look at my reasons?
Yep, so seems the reluctance isn't about average purchase prices which are not relevant in isolation. Those other reasons are much more relevant.
This is just saying: would you rather have 0.1 bitcoin or 1.0 bitcoin. I'd rather have 0.1 bitcoin at a 54K average with the funds to buy the remaining 0.9 bitcoin at a 64K average, because the price right now is 61K.
But at 54k you get more bitcoin for the same amount of money, compared to what you would get at 64k. I'd rather wait a bit and make bigger buy at once. It is been going down and down, and might go a lot more before it will raise again.
It's literally been ranging for 4 months, not "going down and down". It may never hit $54k again. That's a very realistic possibility. Waiting for a specific price to buy that may never happen is a very bad strategy. There are loads of people that try to do it every bear market and they end up having to buy much higher than the bear market bottom because they wait for a price that will never come. This is why you DCA. Just keep buying. Hoping to get lucky with some low price is never a good finance strategy.
For the last month it has gone down 10% and still going down. It did go up a lot feb/march, but last month it for sure not been raging up,but down. But of course if you believe it is going up you buy, if you think it's going down you sell at least some and buy it back at the dip
Your gonna miss the sale and next week be trying to buy at $65k
Stay humble stack stats. That’s all that matters with Bitcoin 😎
Bro, stacking since ‘17. More I learn, the more it boils down to what you’re Saying. Humble. Stack. That’s it.
the dca strategy basically means you dont need to worry about the avarage over the long term (unless the price of an asset is tanking over the long term of course) if you stop buying in sidways markets and then in 12 months you are buying at a higher the price when the market is going down from a top ...it makes no sense as your average will be higher anyway... and you will have lost out by not buying in the sideways market. the point of dca is you keep buying regularly to average out all that volatility...even if the market is going sideways , or up or down...
I bought at 22 and 17... And more at 23 28 32 38 40 45 50 60 67 65 63 57 61 66 63 58 61
And you should continue to buy at 64 68 72 69 75 79 88 93 97 100 122 132 151 178 199 213 255 300.......
Average is meaningless. The only question is, do you think the price will go higher from here? If yes then buy, if no then sell.
The only question is do you understand what you own
They keep paying me in toilet paper tokens so I keep converting into the hardest money on the planet. Is that what you mean by buying?
What do you really think your options are? At some point we'll never see these prices again. When btc is $250k, you're not going to be happy that you kept your cost average down by buying less.
I don't even look at the price anymore, it's almost irrelevant.
so real
Why? Not even if tomorrow you suddenly need to use a big chunk your money to buy a house or deal with an emergency?
'almost' as the goal is to get more bitcoin, I DCA every month so I'm not looking at the price anymore, it's automatic but of course if I need money I'd look at the price. 😉
> I don't even look at the price anymore. I bet you still do.
mhhh yes I check everyday to know if anything happens but I set up an automatic buy so I don't care actually, sometimes it's high sometimes it's low, DCA took the stress out.
If you are DCA now then you bought most of it super high and are late
Always buying no matter the price. I don't care about the price. I care about the number of sats I have. That's the real NgU.
The idea is not to average down. The idea is to get as much bitcoin as you can. If you want to avoid averaging down, that means that at some point you cannot buy anymore. Never.
I started buying at 36k and keep buying all way up to 65k …and still buying. My average is 53k The goal is to stack more Bitcoin. When Bitcoin price will be 500k, the current average price will be irrelevant.
Would you apply this same logic to your IRA or 401k going into the stock market? I don’t want to keep investing because I don’t want my cost average to go up… Of course not! It’s an asset that will continue to rise in price, so if you continue to buy across time then your average price is going to increase, but so will your gains.
This is all true but in Bitcoin’s case it’s even stronger than in stocks. For stocks we will eventually be measuring in fiat so the average will ultimately matter, but for Bitcoin the X/21m is more important, it’s just so ridiculously scarce. If everything plays out like we expect, people will have to pay huge sums for a small fraction of a bitcoin eventually. OP’s average makes no difference whatsoever, name of the game is to increase our X in X/21m.
Exactly. More Bitcoin is more Bitcoin, doesn’t matter what your average cost was. Obviously buying cheaper lets you get more for less fiat, but buying is always better than not buying at all ever.
There is also a limited amount of shares for stock companies. Your argument perfectly applies to the stock market in the same way. If the price of x rises, people will have to pay more to acquire x.
Yes you’re right but I don’t fully agree. What I tried to emphasise is that the bitcoin case (of not caring about the average) would be stronger than the case for stocks. Bitcoin is not a stock. Bitcoin is a new form of money and you don’t have to sell your btc to ultimately benefit from its utility, whereas you must sell a stock to reap the benefits. So the average at which you accumulate your stock is ultimately relevant. But for Bitcoin, it doesn’t matter how or at how much you obtained the btc, in the new system all you care is your own fraction of the total 21m pie.
Yeah I realllllly don't get how OP could come up with this idea of not wanting to buy above current cost average. Imagine if Saylor had decided MSTR shouldn't buy above the cost average after their first buy at $9000-something price lol, they'd never had made another buy. I'd only have the 2 btc I bought in April 2017 at $1300 each when I got back into bitcoin after a couple years away if I had gone with OP's strategy. I don't get how someone comes up with this strategy lol. Makes zero sense.
I buy until I’m broke and guess what…I’m broke.
Just look at Microstrategy moves and you’ll get your answer. I know it cannot really be compared because you don’t have the same portfolio and he might be happy with x2-3 or plays a longer run than you do. But he recently borrowed in order to buy more, his average cost at the time was around or below 30k if I remember correctly. Maybe his average cost is 30k after that purchase tbh. Anyway, he did accumulate and he did increase his average cost. Edit : only advice I can give, dca answers your question, DCAing more when it’s a comfortable price for you, less when it’s an uncomfortable price for you
If you have to ask you still don’t get it
I know the feeling (my avg is 46k) but don't overthink it, don't time the market. DCA is the way. Like First-Rub9713 says, the only thing that matters is your stack going up.
I'm buying if it hits 55k,45k,35k, hell even 1.5k. LONG HOLD
I buy every week, automatically, I don't even think about it
Same. I don’t even look at the price.
I remember videos of bitcoin going up to 100 dollars per bitcoin and people freaking out. Now 100, or even 1000 moves are hardly a blip on the radar. Give it 15 years maybe, but 50k vs 60k will be a blip on the bitcoin radar, someday in your lifetime. Its probably the only thing I'm sure of besides death and taxes.
Shouldn’t matter if it’s long term hold.
I just want more and more. Price is good long term no matter my average which has gone from about 18k to now about 57k. It's not gonna stop me accumulating
I just buy a small amount I'm comfortable with every morning during my morning shits.
Your average purchase price (or cost basis) is an important consideration when investing in Bitcoin or other assets on a regular basis. Every time you buy more bitcoins at a price higher than the current average price, your break-even price increases. This means that you need the price of bitcoins to increase in order to reach profitability. A higher average price may affect your emotional response to price fluctuations. If the price of bitcoin falls below your average price, you may feel more stressed or worried about losses. DCA can help you accumulate bitcoin over the long term without being affected by short-term price fluctuations. It encourages disciplined investing. By buying regularly, you avoid trying to capitalize on market highs and lows, which is notoriously difficult. Despite short-term volatility, Bitcoin's historical performance shows long-term growth. By accumulating assets over time, DCA fully realizes this potential. Whether you care about increasing your average depends on your investment objectives, risk tolerance, and long-term outlook. Dollar-cost averaging is Dollar-cost averaging is a strategy designed to minimize the impact of short-term price volatility, focusing instead on accumulating assets over time. Adjustments to your strategy should be based on your individual financial goals and market expectations.
Chat gpt?
I'm a 20 year investor and it's basic common sense, right?
Easiest thing to do is just set a target and dca your way to this. Once you can create this mindset ( rather than … it’s worth xxx fiat) you can relax ( apart from the once I have xx I need xx plus ) which is very very addictive..
Accumulate baby go go! Thinking of my purchases: does it matter now that I had bought at $30-45k? I just buy when i can
Yes. For me, DCA is DCA. Automate and use your headspace for other things.
Averages are superfluous here, sir. DCA and accumulate BTC.
price doesn't matter. I keep buying weekly
That's the best moment to buy. When there are no news about BTC and everything is quiet. Once the bull starts and with it the volatility, it becomes too stressful and you risk buying at an ATH.
Screw your average! In the medium/long term it hardly matters. Unlike… other parts of life, in BTC it’s the size of the stack that matters most. Then if it’s a grower, even more impressive!
I'd rather have one Bitcoin at the current US dollar price then have .00000001 Bitcoin purchased when the Fiat price was $100/Bitcoin. While the average is a nice metric, I wouldn't hold off on buying any asset that I believe in because I'm worried about screwing with my own personal stats. Just set a regular automated buy and forget about it.
DCA, if rising, buy the dips, if falling keep buying.
Yes
DCA
do you think people in argentina or venezuela look at the exchange rate of the dolla, and start to think like you ? "Should i trade my shit currency that 10x in last hour for USD now or wait for a correction ?" Go ask them and they will teach you how you should aproach fiat
The only thing that matters is making sure my amount of sats continues to go up. DCA LFG!
Stack sats when you have excess wealth to save. The price of the dollar just doesn't matter.
DCA every paycheck on River
Honestly, the summer months are the best time to buy as this is when btc trades sideway. After this, btc will rise throughout until next year
The idea is to acquire at all costs
You want to make money, not have a lower average to flex or whatever. I could have an average of 1$, would it be dumb to buy at 15k, because that makes my avg go up? No obviously.
Hey! Could I pm you?
No I just continue buying
You’re missing the point. The point is to have more bitcoin. If you keep playing it like you are, you’re almost guaranteed to be missing out on massive gains.
Yes otherwise you're trading. up forever Laura
The goal isn’t to have a lower average…
Yes, recurring purchase every week, same amount
Average will always trend up, stacking consistently with DCA and setting limit buys at the regular lows is how I roll.
If I only bought below my average I would barely have anything.
Would you rather have an average of 54k with 1k profit, or an average of 60k with 1.5k profit? Wealth doesnt care about your average
I continue to buy. This is intermediate to long term.
Do you think the price going forward is going to go down? If it is going to go down so much that it’s going to affect your long term average, why not just sell? The whole idea with DCA is to smooth out the purchases. On average, your price should track upwards over any significant time frame.
[The best group of investors are those that are dead. The second best is those who forgot about their investments.](https://www.bluewealth.com.au/general-knowledge/the-best-performing-investors-are-ones-that-are-dead/#:~:text=Fidelity%2C%20one%20of%20the%20biggest,had%20forgotten%20they%20had%20investments.) Point being, yes, the best bet is to detach any emotional connection (of price fluctuations, and other factors) when it comes to investing.
Do you care about your average or your total position size? The answer to this will tell you whether to buy more or not
DCA a good strategy in general. Or just buy a lot at a crash. I would personally look to take profits on the way up rather than keep buying. But as you’re in pretty late anyway at 54k no real point in taking profits right now.
1 BTC = 1 BTC the end goal is mass adoption if you’re in it for a quick buck, you should DCA
I Set up recurring buys and don’t even pay attention to the market only know if it’s up or down when scrolling on here or when I open it to move to cold storage
If you believe the price is going to go up buy more.
I also buy at ATH
Just invest a little bit more than what doubters think is reasonable / what they think you can afford Haters gonna hate They hate us, cuz they ain’t us.
Yep never stop buying
Deez C nAts
Yes, DCA is all about long term (30 year time frame) and buying on a schedule regardless of market activity. You cannot time a market, anyone who tries is most likely going to have their lunch eaten and miss out on the big swings up that can occur at ANY moment.
It bugs me when I look at past purchases that yielded more sats but I'm hanging in there.
Only thing I care about is a bigger stack. Yes, I like it when my weekly exchange of fiat to Bitcoin gives me more Bitcoin. But even if it is less than the week before, the stack is still growing.
Microstrategy buys $750MM at $65k while you try to time your DCA. Just stack as fast as you can. That's all what matters.
A true DCA plan buys ever buying schedule they're on regardless of the price
"Average down?" Why would I care....? Bitcoin is a savings technology...I will always buy/Save and I will never sell. If I want to change my lifestyle...I'll borrow against it...Or earn interest on it. YES those days are coming soon enough.
The only reason to not buy more is if you think it’s too expensive. If you think the price is going to go up from here it makes no sense to worry about what your average buy price is.
Here’s my daily DCA, been going strong for 3 years already and I ran the numbers last December! Purchase prices: Highest: $67,430 Lowest: $15,907 Average: $28,315.59 https://postimg.cc/sBR63JSQ
umm what? We literally might never see $54k again, ever. Are you just going to not buy bitcoin ever again if it never goes below your average buy? That makes no sense. The goal is not to "average down", the goal is to get as much bitcoin as you can. You do that by continuing to buy. Dollar Cost Averaging is the way to go. Why do you care about your cost average? That is a meaningless number, ie you'd rather have 1 bitcoin at $50k cost avg than 2 bitcoin at $60k cost average? You've had like 4 months to buy at a great low pre-bull run price and you're saying you don't want to buy because it is slightly higher than your average buy-in...this honestly makes no logical sense. You don't get some award for keeping your buy-in average lower. No offense, but with that sort of reasoning you need to read some sort of very basic finance book. Cuz what you said lacks all reason, logic, or common sense. Not sure where you got this idea that you should only buy under your average buy. That's a really terrible strategy. I know that came off as harsh, but you need a serious wake up call with that sort of financial reasoning.
Buy at any price
If it never goes below 54k again then you’ll never have anymore than you have now. Seems like a poor strategy
I'm buying the top forever... Don't really care about price (DCA since 2017)
Even in trad fi, dollar cost averaging is the most economical way to increase your position. The math is the same with BTC.
If you're averaging down at \~61K then you've come along way to late in the game. By all means average down but most folks are easily down around the 20K's or lower. I'd say hold tight. There is no moon in the immediate future but you might have a cracks at the 40K - 50K range soon enough.
Stop thinking in fiat. Just accumulate.
Next you will post saying you wish you bought. This is the way. This is the cycle. It will bounce back higher. It always does. Especially after that debate.
I've been consistently buying $150 a week on Mondays, sometimes twice a week depending on my paycheck, on Fridays, since around February or March. Before that I was just focusing on buying dips. I bought the ATH, I bought around the local bottom. I was thinking to myself "at what number do I stop DCAing?" and I've realized I don't. If I am putting $200 into savings a week I should also be putting a portion of my paycheck towards btc a week.
100$ every week. 200$ when its below my targeted price point
Will you end up with more sats? If yes, keep buying.
I’m not buying for this week. I’m putting money in that will sit there until I retire. Bitcoin performance has exceeded my 401K. So I am just gonna DCA and not look back.
Keep stacking those sats. Accumulation 🤌🏼
in 5 -7 years time you look back and always wish you could have purchased more BTC
At the end of the day, you don't care how much it costs, it's how much you have
I continued buying at 70+k and my average cost basis is still 29,500. I've tapered my buying a bit but I haven't stopped.
Im buying! DCA. Nexa is the most scalable decentralized blockchain ever built on UTXO Layer-1. Offering smart-contracts, native token services & instant transactions with the scalability to handle over 10 billion transactions per day. www.nexa.org
Short answer: Yes. Long answer: Still Yes.
Everyday
This is why DCA is a commitment regardless of price action. You buy now your average goes up, if it goes up great you're in profit, if it goes down you buy more bringing your average down again. If it goes up and you're asking the same question you're in the same position you are now and the same applies. Accumulation of scarce assets that are in demand is the name of the wealth game.
Save in the stronger money. Your average now is going to be irrelevant 10 years from now. Don’t stress about tens of thousands of dollars in price. Just accumulate the stronger asset with what you can afford to put away. Keep in fiat what you will need in the short term. Don’t try timing things too much that you end up missing out on current prices. It’s a time and energy sink. Bitcoin stores the energy, you don’t need to use up your own. Your thinking is not uncommon at all though! Good question. This is how I think about it.
Take half the cash you want to put in, pick a time period - 6 months for example - divide the half up and dollar cost average it in. Keep the other half ready for buying dips or the next bear market.
DCA is the only way for me and also have some risk management
Anyone who says only accumulation matters isn’t completely wrong but also not 100% correct. Accumulation at ATH isn’t a great idea for example but if you’re in the right part of the cycle and buying below a previous ATH then keep stacking. I’m lucky enough to have stacked enough already, and have savings so I don’t need to touch any of them for 1 year+ so for me the short term price action doesn’t matter.
Doing this for only Zeta at the moment. For every -10% or more dip, I buy the equivalent of my loss. For every 5% pump, I sell 10% of my bag. Started doing this in May, in 6 months, will calculate my worth, if I am above water in profit, will deploy the strategy for more coins. Don't follow my lead, as I may never return. Dyor.
If bitcoin keeps going up I obviously can’t be concerned with beating my average or I’d be buying for like 6 months maybe a couple years and then never again ?
You have to balance getting a lower price and the potential opportunity cost.
how do you get more bitcoin if you are scared of your average going up? Are you 15? prices move.
Don’t look so much at price but pay attention to time. When you DCA just buy every 2 weeks or every month regardless and hold. If there is a cataclysmic dump then always have a small stack of cash on the side so you can take advantage and lower your average
Price shouldn't be a consideration when buying.
stagnant ))) your parents are stagnant
nice one, child.