I wanted to remind you about the concept of Smart DCA, purchasing BTC during corrections, when the price drops below the 1W-1M Realized Price.
This strategy works well during a bull rally and is much more effective than classic DCA.
I believe many of us are familiar with Dollar Cost Averaging, DCA but how about Smart DCA.I will prefer the S-DCA , both strategies that can be used to invest in cryptocurrency over time . With the S-DCA , you are going to use algorithm and technical indicators for you to determine the optimal time to invest. In all S-DCA seen as more sophisticated approach that helps you minimize the risk involved and maximize returns. It's very important to know both strategies come with risks and there no guarantee for profits.
This thread is for discussion, and I am not concluding Smart DCA is actually Smart and better than DCA. :D
- Visit this dashboard on CryptoQuant
- https://cryptoquant.com/community/dashboard/650de954ca432c72d6ef82b1
- It is built by @AxelAdlerJr on CryptoQuant and let's read his post (https://twitter.com/AxelAdlerJr/status/1770444575053656411) about it on X.
QuoteI wanted to remind you about the concept of Smart DCA, purchasing BTC during corrections, when the price drops below the 1W-1M Realized Price.
This strategy works well during a bull rally and is much more effective than classic DCA.(https://pbs.twimg.com/media/GJHh9JSXkAAtqM_?format=jpg&name=900x900) (https://twitter.com/AxelAdlerJr/status/1770444575053656411)
A quick glance gives me that is a good strategy but if I look deeper, it is not actually smart.
By using Smart DCA, simply glance at it, we see entries are below 1W-1M Realized Price but we will miss days, weeks before price drops behind the Realize price (blue line) and miss chances to buy when price is even lower than the Green areas that are entries given by Smart DCA indicator.
Share your thinking about this strategy please.
Personally I see a traditional DCA strategy is better.
Note:
- It was posted first in that topic, on Bitcointalk (https://bitcointalk.org/index.php?topic=5489866.0)
- I leave the source link to avoid plagiarism accusation.
- I excluded/ included minor things from an original thread if necessary.
During the bear market, if the market has been in the downtrend for a long time and the price of bitcoin has fallen significantly. I can go for DCA. And I will be expecting more fall or price increases but I will continue to DCA.DCA works for both markets as it is for long term accumulation and investment. It does not consider the market is bearish or bullish, just buying regularly on your investment schedule with similar capital value for each DCA time.
If the market is increasing and and the market is in bullrun, I can go for smart DCA. Because no matter how significant the bullrun is, there are times that would be an abrupt price fall which will give opportunity to buy.
I will prefer the S-DCA , both strategies that can be used to invest in cryptocurrency over time . With the S-DCA , you are going to use algorithm and technical indicators for you to determine the optimal time to invest. In all S-DCA seen as more sophisticated approach that helps you minimize the risk involved and maximize returns. It's very important to know both strategies come with risks and there no guarantee for profits.Smart DCA is an indicator to help investors to outsmart the market. They want to wait for indicator to buy in, but does it worth?
I think that the DCA method is good for those who want to invest in Bitcoin without thinking too much about the price, and there is no doubt that it pays off in the long run.With classic DCA, no headache. An investor only needs to do research about Bitcoin, understand about its technology, has belief in Bitcoin, and do DCA.
However, for those who understand the cycles and cryptocurrency markets a little better and also have a larger amount of money, it is definitely better to buy larger amounts of BTC when we are in a bear market and the price is at least 50% lower than the last ATH - and for those who are braver, it is worth waiting for the price which is at least 70% lower.With Smart DCA, it requires more as aforementioned and you are right that knowledge about Bitcoin past cycles is another factor that is helpful to apply this strategy.
I was aware of the smart DCA method before but did not come up with some term to call it, so it's a small DCA. Well, both have their own use cases in separate situations and in my view, there are no restrictions in using one strategy in place of another. For example, we can do smart DCA even in the bearish run and can do DCA in a bull run. I don't think there are any restrictions on it.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.
I still prefer using the traditional way of DCAing my Bitcoins because it doesn't need for me to learn technical analysis and any other complicated techniques that will keep my eye on the screen for hours. This is what caused stress to me a few years back so I will stick to the traditional one from now onwards.If you consider this Smart DCA indicator is reliable, you can use it without much own work for technical analysis. Because the author already did the hard work for you and the indicator is public to use.
I still prefer using the traditional way of DCAing my Bitcoins because it doesn't need for me to learn technical analysis and any other complicated techniques that will keep my eye on the screen for hours. This is what caused stress to me a few years back so I will stick to the traditional one from now onwards.Learning too many market analysis techniques will actually make us even more confused because as far as I know cryptocurrency price movements are not easy to predict, sometimes what has been predicted is at that price but when there is bad news everything just collapses and doesn't match the price. analysis results.
Can I propose something better?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.
I think SCDA is smartest way of getting bitcoin, this is Signature Campaign Dollar Averaging so I am choosing this ;D
This is weekly receiving bitcoin and I am not spending any dollars, but I am investing my time in forum.
Learning too many market analysis techniques will actually make us even more confused because as far as I know cryptocurrency price movements are not easy to predict, sometimes what has been predicted is at that price but when there is bad news everything just collapses and doesn't match the price. analysis results.This is why intelligent investors choose DCA. They are smart because with DCA, they will be able to enjoy their life. They invest to live, not live to invest and if they can find a good investment strategy that does not make them headache, it's good. Traditional DCA strategy can help them to achieve both, wealth and healthier, happier life.
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 ;D
It is not the same thing because I never touched the dollars, so by definition it cant be called dollar cost averaging ;DI disagree.
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.
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.
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.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.
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.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.
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.
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 ;D
This is weekly receiving bitcoin and I am not spending any dollars, but I am investing my time in forum.
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.
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.
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?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.
purchasing BTC during corrections, when the price drops below the 1W-1M Realized Price.
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.
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.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.
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.
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.
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.
exactly normal DCA is more preferable to me , I don't have to analyse the market before buying all I just have to do is keep purchasing more Bitcoin either weekly or monthly, and just as you said our campaign has been playing a nice role in that area . For those that are new to this space they should just stick with regular DCAing . To avoid any form of complexity.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.
Same here. I am not a person who can do a lot of research about the market movement. DCA is for people who do not understand or cannot predict the market well, they can easily use DCA to continue investing without doing too much research. If you are sure that you want to invest in Bitcoin, that is the only thing you should be sure of from your side.
I don't have time to check the chart and wait for a dip market and place an order. If I want to invest in Bitcoin, I will surely choose classic DCA and invest. But for now, I am not doing it. My Signature payment is doing the DCA well for me.
I believe many of us are familiar with Dollar Cost Averaging, DCA but how about Smart DCA.I think, there is only DCA, even there's also Smart DCA? ;D
This thread is for discussion, and I am not concluding Smart DCA is actually Smart and better than DCA. :D
exactly normal DCA is more preferable to me , I don't have to analyse the market before buying all I just have to do is keep purchasing more Bitcoin either weekly or monthly, and just as you said our campaign has been playing a nice role in that area . For those that are new to this space they should just stick with regular DCAing . To avoid any form of complexity.The only problem for me when doing DCA was when I ran out of capital or money to buy when the price dropped again, because I had only bought it a few days ago. Like that. Although actually I can do it again later so I will get Bitcoin accumulation again. However, sometimes you feel annoyed when the price drops but running out of capital.
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 it in the short term, it's probably okay. If you were talking about the long term, mine is a little different, in this respect. The experience of investing has shown that this strategy does not bring a large % to the deposit. Still, it is much easier to allocate 2-4 times (the right amount) and when the price gave -30-50% to buy the asset you need.
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.
I think, there is only DCA, even there's also Smart DCA? ;DI said multiple times in this thread, that I see Traditional DCA is better for many people, if not all.
DCA is simpler, the ways and also the term. I basically have been comfortable with DCA system to be done for investment. SO, not really think again what other terms, like Smart DCA :D
I understand what you mean OP, and I must say that it is the first time I have heard of smart DCA, which I saw from the OP. The smart DCA is much stressful compared to the tradition DCA that you will just allocate some certain amount of money to buy regularly either weekly or monthly. This is because one cannot time the market, and how sure are we when the dips will come.I think, there is only DCA, even there's also Smart DCA? ;DI said multiple times in this thread, that I see Traditional DCA is better for many people, if not all.
DCA is simpler, the ways and also the term. I basically have been comfortable with DCA system to be done for investment. SO, not really think again what other terms, like Smart DCA :D
However, there are people and times to do things to maximize DCA and we can call it as Smart DCA efforts. What methods they use to support Traditional DCA, to come with Smart DCA, I don't know.
In this thread, I only shared that Dashboard, with signal for Smart DCA. It's free to watch and use as an extra tool for your investment. I don't recommend anyone to choose Smart DCA for their investment, it's their money, they have to make own decisions.
I understand what you mean OP, and I must say that it is the first time I have heard of smart DCA, which I saw from the OP. The smart DCA is much stressful compared to the tradition DCA that you will just allocate some certain amount of money to buy regularly either weekly or monthly. This is because one cannot time the market, and how sure are we when the dips will come.I think, there is only DCA, even there's also Smart DCA? ;DI said multiple times in this thread, that I see Traditional DCA is better for many people, if not all.
DCA is simpler, the ways and also the term. I basically have been comfortable with DCA system to be done for investment. SO, not really think again what other terms, like Smart DCA :D
However, there are people and times to do things to maximize DCA and we can call it as Smart DCA efforts. What methods they use to support Traditional DCA, to come with Smart DCA, I don't know.
In this thread, I only shared that Dashboard, with signal for Smart DCA. It's free to watch and use as an extra tool for your investment. I don't recommend anyone to choose Smart DCA for their investment, it's their money, they have to make own decisions.
I understand what you mean OP, and I must say that it is the first time I have heard of smart DCA, which I saw from the OP. The smart DCA is much stressful compared to the tradition DCA that you will just allocate some certain amount of money to buy regularly either weekly or monthly. This is because one cannot time the market, and how sure are we when the dips will come.People actually try to do Smart DCA, not all but many people do it practically.
Simplicity at its highest. The normal DCA strategy is what every Bitcoin enthusiast that don't needs too much stress would resort to. The act of buying small amount of Bitcoin on a steady without much calculation and watch over the market price is the simplest way to avoid any unnecessary situations and agitation over the price of the market because some persons can get really skeptical when their start observing changes in the market and can even make them resort to wrong choices so sticking with the DCA strategy that's well planned is probably best for both newbie and professional investor.exactly normal DCA is more preferable to me , I don't have to analyse the market before buying all I just have to do is keep purchasing more Bitcoin either weekly or monthly, and just as you said our campaign has been playing a nice role in that area . For those that are new to this space they should just stick with regular DCAing . To avoid any form of complexity.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.
Same here. I am not a person who can do a lot of research about the market movement. DCA is for people who do not understand or cannot predict the market well, they can easily use DCA to continue investing without doing too much research. If you are sure that you want to invest in Bitcoin, that is the only thing you should be sure of from your side.
I don't have time to check the chart and wait for a dip market and place an order. If I want to invest in Bitcoin, I will surely choose classic DCA and invest. But for now, I am not doing it. My Signature payment is doing the DCA well for me.