DCA vs Smart DCA, what do you choose?

[tranthidung]

I believe many of us are familiar with Dollar Cost Averaging, DCA but how about Smart DCA.

This thread is for discussion, and I am not concluding Smart DCA is actually Smart and better than DCA.  

• Visit this dashboard on CryptoQuant
  
  • https://cryptoquant.com/community/dashboard/650de954ca432c72d6ef82b1
• It is built by @AxelAdlerJr on CryptoQuant and let's read his post about it on X.

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.

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
• I leave the source link to avoid plagiarism accusation.
• I excluded/ included minor things from an original thread ^{if necessary}.

[Charles-Tim]

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.

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.

[Rex067]

I believe many of us are familiar with Dollar Cost Averaging, DCA but how about Smart DCA.

This thread is for discussion, and I am not concluding Smart DCA is actually Smart and better than DCA. 

• Visit this dashboard on CryptoQuant
  
  • https://cryptoquant.com/community/dashboard/650de954ca432c72d6ef82b1
• It is built by @AxelAdlerJr on CryptoQuant and let's read his post about it on X.

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.

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
• I leave the source link to avoid plagiarism accusation.
• I excluded/ included minor things from an original thread ^{if necessary}.

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.

[Lucius]

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. 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.

For me personally, every investment method is good, only some methods are far better than others - I personally prefer investing exclusively in periods when the price is the lowest compared to the last ATH.

[KingsDen]

The problem with the smart DCA of a thing is timing and inconsistency:
Timing: You will probably not know when the market has corrected well in order to buy and besides you can miss many corrections. Having to keep up will make you always check the price or set a particular buy price which might not trigger.
Inconsistency: The DCA might lose it's consistency in investment because you might miss a week or more waiting for bear because the bull is still on.

[yhiaali3]

I also find that the traditional DCA strategy is better. I've heard of smart DCA before but I still prefer the traditional method of manual assembly at low times.

Smart DCA may be appropriate in some cases, but not always, in addition to the reasons mentioned above. For example, I decide to buy at certain times of the week or month when I have sufficient liquidity to do so, so it is difficult for this strategy to work for me.

It simply means that I choose to buy at times that suit me, whether in terms of low price or availability of liquidity.

[tranthidung]

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 don't know but I see it depends on each person and their own characteristics and available capital for investment. If they have enough patience to wait for green light from Smart DCA indicator, and they have available capital for investment, Smart DCA can work well for them, especially in bull market with some big dips along the way to its peak.

If the person is impatient, this strategy does not work well.

Smart DCA also requires an investor to be very disciplined, first for waiting patiently for the Smart DCA signal, second for saving money and wait for chances to Smart DCA purchase.

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.

[0t3p0t]

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.

[Faisal2202]

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.

Everyone has their own way of accumulating BTC, well but generally the efficient one would be using both at any time (bull or bear) no limits should be made on these. Because overall our purpose is to accumulate more and more, and we can only achieve this when we have good knowledge about market, if not then DCA (simple) would do the work.

[tranthidung]

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.

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.

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.

[Power420]

Bitcoin prices and a number of other digital assets have grown significantly in value during the last decade. Some people have made millions and even billions throwing down everything they have during the cryptocurrency’s earliest days of price discovery. However, there’s another method of investing called dollar-cost averaging or DCA, a scheme that’s considered far less risky and can still bring a cryptocurrency investor decent profits over the long term.

Ever since bitcoin jumped over the crypto asset’s all-time high (ATH) recorded in 2017, the digital currency has continued to gather a higher value after surpassing the $20k zone. Then bitcoin (BTC) tapped a new ATH ten days ago, after the crypto asset jumped over the $42k range.

Source link: https://news.bitcoin.com/dollar-cost-averaging-crypto-profits-low-risk-bitcoin-investing-without-all-the-stress/

[notblox1]

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.

[Google+]

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.

[tranthidung]

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.

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 kind of Smart DCA.

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.

[SamReomo]

In my eyes, the DCA strategy combined with DIP accumulation is the best way for sure profits. We all know that when we do DCA then we need to invest fixed amount on either weekly or monthly basis.

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.

That's the best way for long-term profits I believe and the ones who haven't tried it yet should give it a try.