Are you still doing DCA in cryptocurrency?

Hello friends,

I am doing good, and I hope that you are having a good time with your near and dear ones.

The Bitcoin price these days is making people happy in the market because the price is in obtained and it is going up. We all expect price growth for Bitcoin and whenever this happens then we feel good about it. Currently, it is at 30k USD this is the first time we are able to see this price for Bitcoin.

Those who bought it at a lower price should be very happy because now they are in a profit and still it seems the price will increase even more. Even the traders should be happy because they will be able to make a lot of money with the price increase.

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I recently got to know that we call it DCA for the same methodology that we call SIP in mutual funds. I know how it works so I can relate it to DCA which is also the same thing. The only difference we can talk about is in terms of the market and the words otherwise I do not see any difference in the overall mechanism. We need to decide the frequency of investment along with the amount and the rest is done by the platform whichever we are opting to make automated. I don't think we can do it manually because it is very tough for us to execute on a regular interval without any gap.

It is always good when we keep the DCA on when the prices are low but what if the prices have gone up then what should be done? I believe that when the prices are up then we need to reduce the DCA amount by 50% and the amount should be used when we feel the prices have gone down. With this method, we can average out the price even more which will end up giving us more Bitcoin. It is obvious that you can also choose many other points apart from Bitcoin but in this post, I am only referring to Bitcoin as Crypto for easy understanding.

I am considering this option to start soon and I like the weight works because I am not good at trading. I know that I cannot be good at trading, and this is the reason why investing and holding is the only practice that I will be following in the market.

Thank you