How often are you exchanging fiat dollars for BTC in your DCA plan?
Daily? Weekly? I want to make sure my plan is not dumb...
How often are you exchanging fiat dollars for BTC in your DCA plan?
Daily? Weekly? I want to make sure my plan is not dumb...
Daily for me. Purely for the dopamine of adding new sats and having a larger stack than the day before.
I DCA every day on a small amount and reserve fiat for small dips or if my reserves hit a certain level I just buy.
I used to do daily, now I just take my paycheck 100% in bitcoin every two weeks. All in baby!
Exactly how do you DCA small bits of non-KYC Bitcoin? Wallet? Exchange?
You should consider implementing business strategies to earn sats. It’s a no fee/no KYC form of DCA.
I've tried spreading it out over days after a fiat paycheque...but I don't like having the extra fiat when it could be sats, so I end up buying all the sats as soon as I can after pay day lol
Doesn't matter too much IMO. You can play around with back testing plans at I.E https://www.bitcoindollarcostaverage.com/ but they all just tell you you will become absolutely loaded as long as you buy regularly. 😉
Personally I don't DCA, I just move all the excess cash at the end of the month to an exchange and buy Bitcoin with it.
Everyday has worked well
Every Monday
I try and keep my buys to a few hundred dollars or more. UTXO management can get pricy with higher fees. My exchange of choice has a $200 minimum for on-chain so it works well.
I watch price TA a bit and buy the dips or bottom of price ranges. If I end up watching for a week or so and nothing is materializing I just smash buy since I know I'm playing around with small price changes usually (aka sideways chop) and it's a waste of my time to watch charts all day. (it's fun to snipe lower prices in small doses and usually helps cover most or all of the exchange spread).
Daily, recurring buy through strike. Although based on the news i keep adjusting higher or lower.
FOMO or I think there might be a drop :). I should really just set it and forget it.
Daily, weekly, and 5% off every paycheck
Had it weekly for a while, was kinda magic. Now I consider monthly again because of UTXO management and I enjoy the hands-on experience.
As I find fiat in my account I convert to sats. Trying to maintain 2m sats a month. Getting v hard to do.
Even if you Only buying at ATHs is not dumb 🤭
bi-weekly with paycheck just to minimize fees. Why attempt to time the market daily when buying now results in BTC that’ll be worth more in 10yrs? what does a week or two matter at those time horizons?
If I were waiting tables and getting tips daily I might consider daily, but that would be lot of overhead work for very minimal gains.
I think the very question of “how often should I DCA?” may even represent more mental work effort than is necessary. Set it to what frequency you want and forget it. Don’t optimize yet. You need F-U fiat levels of money to be worth spending time agonizing over frequency of buys.
Daily plus lump sums when I have extra cash
Get on nostr:nprofile1qqsrtv3u6qkj6a09tnhr3l0wy67g9uw3t57ftqyqpvztpk3wmd6306spp3mhxue69uhkyunz9e5k7qg4waehxw309ajkgetw9ehx7um5wghxcctwvsueqn9x and do a little every day, earn Bitcoin interest on your cash you have parked there that earns about 4% and forget about it.
Make sure that you have a plan to consolidate your funds regularly (when transaction fees are low).
If you're doing daily or even weekly DCAs, you'll end up with a whole lot of little chunks of bitcoin (UTXOs). People have mentioned UTXO management in some of the comments but in case you don't know what that means:
Each chunk that you purchase is a UTXO. By the end of the month, you'll have 30 smallish UTXOs - imagine a wallet full of $10 or $20 bills. Anything you want to do with those bills later will cost you PER bill - so it's best to combine them into one large $600 bill when you can.
Fees are relatively low now, but they're likely to go way up in the future. If you have $19 in fees for every $20 bill, that would really suck.
Where could I buy bitcoin daily on chain?
I'm not the best person to ask for this, but I think that River for instance might be a way to automate it. I'm assuming that Strike and Fold would also be on-chain but I'm not sure.
AFAIK, the transactions aren't happening onchain until you withdraw to an external wallet. So you don't have to worry about UTXO management for something like daily purchases.
Waiting until you hit certain thresholds (1M sats, 5M sats, etc) before withdrawing consolidates all those days of purchasing into one UTXO.
oh, I see - yes, that's true - when you take your btc off of an exchange after daily purchases, that transaction will effectively consolidate your utxos
What ever your plan is... Go to mempool.space then click on one of those blocks and review a transaction with a high number UXTOs. This is someone consolidating their small UXTOs into a single bigger one. Now look at the transaction fee for doing this.
Lesson to be learned is trading 100 pennies for $1 will cost you 80 cents.
Monthly works fine for me, then every 6 months or so I'll send one consolidated UTXO to cold storage. Keep it simple!
Daily ☀️
Currently roughly ever two weeks, I decided just a few weeks ago to go more heavily into Bitcoin, so I buy a few thousand dollars worth when I feel like it. Once my fiat reserves get low, I'll switch to a monthly purchase, when the monthly paycheck comes in
No DCA, I buy whenever I get paid
Whenever I get it. 🤙
Fiat in, Fiat out
I live off Bitcoin so I do direct deposit 100% Bitcoin and I do side jobs help my neighbor paint or clean up plus uber eats Amazon flex so i can buy with cash
Monthly. Used to do it hourly, but made no sense with all the transactions. So now monthly when paycheck comes in.
Basically, I get paid in fiat, use it to pay bills and creditcard, rest goes into bitcoin.
Don't overthink it, bro. Every time you receive fiat, you get rid of it immediately.
how about spending bitcoins to live?
nostr:nevent1qqs8najs9d8kzt9jt5w9qr0se75khz50wsprap4rpl0q4qwyvcd3xfcsnur89
Honestly, I used to do every week. Then I moved to once a month. Now I just do big smash buys on dips.
Why not? Probably gives you a cheap DCA
Those who still have any fiat left to exchange. 😄
Every 4.8 seconds
I don’t own any ₿ 💥
I am going monthly. You could spread the DCA amount per week, Daily is imo rather a soothing approach for a Fomo mindset.
Hourly. Never miss a dip.