DCA vs Smart DCA, what do you choose?

[notblox1]

This is Traditional DCA. You accumulate bitcoins on regular basis, with assumption that your job with signature campaign is stable and you don't have too long break time for signature campaign participation and salary. What you are saying is not different than Traditional DCA, and you just describe exactly what your investment capital comes from, through signature campaign payments.

It is not the same thing because I never touched the dollars, so by definition it cant be called dollar cost averaging 
I can also spend coins when I need to do it and I dont have to worry about spending the same amount of money to buy bitcoin.

[tranthidung]

It is not the same thing because I never touched the dollars, so by definition it cant be called dollar cost averaging 
I can also spend coins when I need to do it and I dont have to worry about spending the same amount of money to buy bitcoin.

I disagree.

Assume you receive $100 /week from your signature campaign payment. You will have two ways to DCA, buying Bitcoin with cash or stablecoin. Another way is receiving it directly with your signature campaign payment. The second way, you disagree with me but what will happen if you receive your signature campaign payment in $ or in altcoins. You will have convert it to Bitcoin and it is DCA, just different in middle steps.

In my eyes, the DCA strategy combined with DIP accumulation is the best way for sure profits.

Nothing surely brings profit too you. You will get profit or loss, with same entry for DCA, if your time to stay in the market is longer or shorter, that leads to different exit time and price.

But with DCA+DIP accumulation we keep that fixed amount of a week or month at a side and wait for the DIP to take place and when we see the DIP then we utilize that amount for DCAying.

This is one of Smart DCA's disadvantages. It's challenging to keep your money for weeks, months intact and don't use it for other things than investment in Bitcoin.

[Faisal2202]

If people want to do DCA smartly but only base on their thinking and don't have any reliable indicator to use, they might have bad practice than Traditional DCA.

It's the point and use case of this Smart DCA indicator. Perhaps this indicator is useful for people who want to do Smart DCA for their investment. The bottom line is whether this Smart DCA indicator is reliable enough.

So you are saying there is a Smart DCA indicator, or we have to use it with some indicator, like what? Do you have any in mind, for example, I would use 4 EMA lines to make support and resistances, and if want to do DCA then I could use those lines (Resistances and support made by 4EMA) as buying and selling points. I can even extend the date, from 1 day to 1 Week if the selected coins is not new.

Although I won't say its the most reliable Indicator to do Smart DCA, BTW you are saying we don't use any kind of indicator with traditional (so called by you) DCA. As, I TBH used the indicators I mostly use to do DCA as well but not so much as most of my DCA is in BTC and I don't do DCA in BTC using any indicators but in alts I do.

[Litzki1990]

DCA (Dollar Cost Averaging) method is one of the most effective investment strategies for investing. In this investment strategy generally an investor can invest as per his wish based on his own income. An investor feels very stress free in this investment method as there is no need to accumulate a lot of money in this investment method as in this method one gets the opportunity to invest based on one's income whenever he wants. A low income person can invest in this investment method as well as a high income person can consistently invest in this method. I myself currently follow the DCA investment method in investing and I definitely find this strategy to be the best strategy.

[Power420]

What is Dollar Cost Averaging Bitcoin?
Bitcoin dollar cost averaging consists in investing a fixed amount of USD, into BTC, on regular time intervals. You’ll often see it referenced by its abbreviation of "DCA".

Purchasing $10 every week, for example, would be dollar cost averaging.

This strategy is mostly used by investors that are looking to purchase Bitcoin for the long-term, since it protects them from potentially allocating all their capital at a price peak.

Investing in Bitcoin with no DCA (Example)
It’s January 1st, 2018, and John decides to purchase $5,000 worth of Bitcoin today.

The Bitcoin price at the time was $13,800 per coin, which means that John now owns 0.362 BTC.

Investing in Bitcoin using DCA (Example)
It’s January 1st, 2018, and Alice decides she wants to purchase $5,000 worth of Bitcoin.

However, instead of investing the entire amount today, she decides to purchase $500 every month, for 10 months.

10 months later, Alice owns 0.61 BTC. That’s allmost twice as much as John, even though both invested the same amount.


Source link: https://dcabtc.com/?sd=2016-03-23&sda=8_years&f=weekly&d=8_years&ac=25000&c=true

[tranthidung]

So you are saying there is a Smart DCA indicator, or we have to use it with some indicator, like what? Do you have any in mind, for example, I would use 4 EMA lines to make support and resistances, and if want to do DCA then I could use those lines (Resistances and support made by 4EMA) as buying and selling points. I can even extend the date, from 1 day to 1 Week if the selected coins is not new.

Although I won't say its the most reliable Indicator to do Smart DCA, BTW you are saying we don't use any kind of indicator with traditional (so called by you) DCA. As, I TBH used the indicators I mostly use to do DCA as well but not so much as most of my DCA is in BTC and I don't do DCA in BTC using any indicators but in alts I do.

You can use whatever indicator you want if you intend to do customized DCA. You can call it as whatever you want, Smart DCA, Customized DCA, Personalized DCA but the bottom line, it is no longer a Traditional (Classic) DCA.

You need to add some inputs to time the market, and your waiting time between two entries will be not at a fixed regular basis. You can invest after 1 month, 3 months or 6 months, because basically with Smart/ Customized/ Personalized DCA, you are timing the market and find best entries with some indicators that are best in your view.

I also didn't say Smart DCA is better than Traditional DCA.

[Learn Bitcoin]

Can I propose something better?
I think SCDA is smartest way of getting bitcoin, this is Signature Campaign Dollar Averaging so I am choosing this
This is weekly receiving bitcoin and I am not spending any dollars, but I am investing my time in forum.

I have been doing that for a year, and I am glad I decided not to spend all my signature earnings. If someone can save their entire signature earnings, that is good. But, if they cannot, they should save at least half of it. Some locals asked when I had invested and how much my buying price was. The simple answer is that I never bought BTC for holding purposes. All the BTC and altcoins I have now are Signature earnings from the other forum.

As for classic DCA and SDCA, I guess the classic one is better. Just increase the amount during the dip market and decrease when it's pumped. That is what I think. 

[NikeFit_7777]

DCA (Dollar Cost Averaging) method is one of the most effective investment strategies for investing. In this investment strategy generally an investor can invest as per his wish based on his own income. An investor feels very stress free in this investment method as there is no need to accumulate a lot of money in this investment method as in this method one gets the opportunity to invest based on one's income whenever he wants. A low income person can invest in this investment method as well as a high income person can consistently invest in this method. I myself currently follow the DCA investment method in investing and I definitely find this strategy to be the best strategy.

According to my personal observations, this strategy is not always profitable on the distance. Therefore, it is necessary to be extremely careful. Not everything works the way we would like it to. Especially, this strategy cannot work properly, when the price of bitcoin (the whole cryptocurrency) has already given hundreds of % returns, over the last year.

P.S. It is best (as for me) to divide the deposit into several parts (2-4) and invest when the price gave -40-50% of its maximum. Not every month/week etc.

[tranthidung]

I have been doing that for a year, and I am glad I decided not to spend all my signature earnings. If someone can save their entire signature earnings, that is good. But, if they cannot, they should save at least half of it. Some locals asked when I had invested and how much my buying price was. The simple answer is that I never bought BTC for holding purposes. All the BTC and altcoins I have now are Signature earnings from the other forum.

Congratulations for your good savings in bitcoins.

As for classic DCA and SDCA, I guess the classic one is better. Just increase the amount during the dip market and decrease when it's pumped. That is what I think.

By bringing this topic, I only wanted to bring something I discovered, new to everyone but as I noted, Classic (Traditional) DCA is better for most of us. For people who can use Smart DCA better, go ahead with it.

According to my personal observations, this strategy is not always profitable on the distance. Therefore, it is necessary to be extremely careful. Not everything works the way we would like it to. Especially, this strategy cannot work properly, when the price of bitcoin (the whole cryptocurrency) has already given hundreds of % returns, over the last year.

By applying Smart DCA, you might miss lower prices, better entries but with Smart DCA, you buy dips and can get profit quickly.

It is good strategy in a bull market but in bear market, if you don't have enough experience, you can buy dips and hold, so end with loss with time before the market starts its recovery from bottom.

[DabsPoorVersion]

According to my personal observations, this strategy is not always profitable on the distance. Therefore, it is necessary to be extremely careful. Not everything works the way we would like it to. Especially, this strategy cannot work properly, when the price of bitcoin (the whole cryptocurrency) has already given hundreds of % returns, over the last year.

By applying Smart DCA, you might miss lower prices, better entries but with Smart DCA, you buy dips and can get profit quickly.

It is good strategy in a bull market but in bear market, if you don't have enough experience, you can buy dips and hold, so end with loss with time before the market starts its recovery from bottom.

For me, the concept is more like doing a short trade in spot position. Especially, the main goal is not to invest at the bottom, but to invest by waiting for the price to pull back, right?

This can indeed give a quick profit, an opportunity for late investors who want to buy at the dip, (not at the very bottom price) but can still make a profit when being done successfully.

This strategy requires enough experience and knowledge compared to traditional DCA. If we recall the previous pullbacks in the past ATH, this has been one of the errors for some people, they ended up purchasing at the peak as they thought of the upcoming bear price to a simple pullback.

[Don Pedro Dinero]

I don't get my head screwed on and I don't try to be 'smart' by getting the dips right. As I commented in another thread recently on my local forum, the problem with dips is that you don't know if it's really a dip and the price is going to recover, or you're buying when the price is still going to go much lower. The author seems to have found a system with:

purchasing BTC during corrections, when the price drops below the 1W-1M Realized Price.

But that works until it stops working, such as the regularities we saw in the past bitcoin history, which suggested for example that in this cycle the price peak would have been much higher, until we saw that in this cycle that regularity did not hold true.

[SmartGold01]

Looking from the Smart DCA, there is no different between the usual DCA and smart DCA they mostly function the same, the is that it depends on the investor or the trader who is doing it.
When DCA'ing you may decides to enter the market at your convenient, Smart DCA is just like acting quickly before one missed the market at the a good taking and entries points.

[Learn Bitcoin]

By bringing this topic, I only wanted to bring something I discovered, new to everyone but as I noted, Classic (Traditional) DCA is better for most of us. For people who can use Smart DCA better, go ahead with it.

I feel it's impossible to predict when these green-spotted times will come. Even if it's the green-spotted time, how do I know it won't go down further? I will be confused. Should I wait for more to dump it, and then will I have the perfect time to buy? This is one of the reasons I think SDCA is bad for me. I am speaking for myself only.

This is similar to a person waiting to buy and looking for the dip market, but he never knows if it will go down or it will go up again. To not be situation like this, we use DCA method. Now smart DCA brings back the same problem. LOL.

[0t3p0t]

By bringing this topic, I only wanted to bring something I discovered, new to everyone but as I noted, Classic (Traditional) DCA is better for most of us. For people who can use Smart DCA better, go ahead with it.

I feel it's impossible to predict when these green-spotted times will come. Even if it's the green-spotted time, how do I know it won't go down further? I will be confused. Should I wait for more to dump it, and then will I have the perfect time to buy? This is one of the reasons I think SDCA is bad for me. I am speaking for myself only.

This is similar to a person waiting to buy and looking for the dip market, but he never knows if it will go down or it will go up again. To not be situation like this, we use DCA method. Now smart DCA brings back the same problem. LOL.

That is why I always prefer the traditional DCA thing because it will just complicate if I had to use another strategy that I am not familiar with. I want a less stress investment that is why I chose to DCA so other than that I should make an intensive research before using so I won't end up doing it wrong.

[tranthidung]

For me, the concept is more like doing a short trade in spot position. Especially, the main goal is not to invest at the bottom, but to invest by waiting for the price to pull back, right?

If you look at the chart (screenshot and live one on the given dashboard), you will see it is not a quick trade because when Smart DCA gives you a green light, it usually lasts for a while long time.

I don't get my head screwed on and I don't try to be 'smart' by getting the dips right. As I commented in another thread recently on my local forum, the problem with dips is that you don't know if it's really a dip and the price is going to recover, or you're buying when the price is still going to go much lower. The author seems to have found a system with:

Because, here we are talking about Bitcoin, the strongest one in cryptocurrency market, and because we believe it will survive, make higher highs with time. Buying any dip of Bitcoin, with an investment plan for long term, is never bad idea.

If buying dip for a quick trade, it can be wrong sometimes but even quick trade, most of time, we can get profit too but it's not a point of this topic - that is for investment, not trading.

I feel it's impossible to predict when these green-spotted times will come. Even if it's the green-spotted time, how do I know it won't go down further? I will be confused. Should I wait for more to dump it, and then will I have the perfect time to buy? This is one of the reasons I think SDCA is bad for me. I am speaking for myself only.

Visit the dashboard, given link is at OP, but you must have an account on Crypto Quant, to see that SDCA indicator. Assume you consider it is a good indicator, you can get access to it, freely, and can use it too.