DCA is Bullshit, always buy as much as you can afford as soon as you can.

Question

basically the title.

if you have money that you want to put into BTC there is no reason to buy 10% for 10 Weeks, just buy it all at once.

if you get payed once a month, there is no need to by a little every day, just buy it all at the moment you have the money.

There is no proof that a lot of little investments bring better success in BTC. Why? because in the longrun BTC only goes up. so at any point in time, the expected next value of BTC is higher at the next point in time.

What do you think?

of course this is not investment advice.

Answer 1

DCA is great. It reduces the impact of psychology and keep you stacking sats no matter what. If you buy everytime you have cash manually you will always ask yourself if this moment is the right moment to buy.

Make a plan for the next 2-3 years, DCA every week, never sell and just keep stacking and you will for sure be good. I believe this is the most secure way to make great profit in Bitcoin with low risk

Answer 2

In case anyone wants to FOMO the top today - dont.

Answer 3

It is kinda crazy when people have clocks set to auto-buy every hour lol

Answer 4

You'd be right at times, and wrong at other times.

It's easy to post this now after we've been all the way down to 15k. Of course that would have been a great time to go all in, but that's of course in retrospect. If you'd posted this in November of 2021, you would have steered everyone wrong.

The fact is that DCA takes emotions out of it, smooths out volatility, and for some people will be the difference between selling at a loss, and being able to stomach the downturn.

I think your advice is too one sided and not a very humble opinion to hold.

Answer 5

It depends if you're optimizing for expected value or you just want to minimize the chance of getting screwed. Lump sum investing returns more on average but there's a risk you'll buy the peak.

Answer 6

By DCA'ing you reduce risk of overpaying.

By setting up a automatic weekly or even daily purchase you lower the risks of hitting multiple local peaks when buying. The more points in time you buy the lower the risk becomes. If you always buy at salary-time when everyone else is also buying you will have a greater risk of hitting a local top.

It's all about probabilities.

But sure if you aim to sit on the BTC for years it will probably not matter too much, except that you may have overpaid and ended up with less.

Answer 7

I live by this, but only during a bear market.

It's plain stupid going full-blown lump-sump into bitcoin during new ATH's, for that's the time to save in fiat.

The prep before the next buy-a-thon, so to speak.

Answer 8

funny how i was getting down voted 3 weeks ago telling people DCA sucks......all it takes is one pump

Answer 9

Finally it is said, I too believe so

Answer 10

Lump sum is better in tradfi because theres not so much volatility. Not a great strategy with something as volatile as crypto