Everyone is talking about Dollar-Cost Averaging (DCA). So it must be a good strategy and you can make a lot of money with that. You started doing DCA, but now you feel you are losing your money.
When BTC was 30K, it showed strong support. It seemed the price would go up from that level. You started investing regularly. BTC price keeps falling and you keep buying. Now BTC price is around 19K.
You are nervous now. You calculate how much you have invested so far and what you will get if you sell your holding. It shows you lost your money. People get scared and fear that the BTC price will go below 15K and lose more. If you sell your BTC, you will still lose your money.
Maybe you thought that 30K support would not break and BTC price would go up to hit 100K. As a result, you would make a huge profit. But that did not happen till now and there is no sign it will happen any time soon.
DCA is not magic, it is a popular investment strategy. It is up to you how you use this strategy. If you think short-term, you are not supposed to do DCA. Bitcoin did not hit 100K, does it mean it will not hit 100K and go beyond that?
When you think long term, you don't have any plan to sell any time soon. BTC price drops, it does not matter because you want to see what would happen after 5 or 10 years. The volatility of BTC will not make you nervous. You basically don't lose anything unless you sell your BTC.
You cannot just throw your money randomly and call it DCA. When you make an investment, you plan for it and move forward according to your plan. If you need money in a short period of time, you will not invest that in the first place.
You define your investment amount, and how often you will invest, it can be weekly, biweekly and monthly, or any other interval. You have to decide when you start doing DCA. Some people may start DCA now, some people did that earlier, or some people just wait and plan to start DCA later.
You have to do your analysis and research to choose the asset you are going to invest in. If you make mistake choosing the asset, you may lose money whether you follow DCA or any other investment strategy.
Knowing technical analysis basics can help you make better financial decisions. It is not that you look at the chart all the time. You can see the overall market situation from the chart at a glance. You can decide when to start DCA and how long you will keep doing DCA. And you have to be consistent when you follow the DCA strategy.
What I shared here is not financial advice. I am expressing my thoughts and sharing my opinions. Do your research and analysis before making any investment decision. I will not be liable for your actions.
So what do you think? Please feel free to leave your comments. Thank you for reading this post. That's it for now. I'll be back with another post.
Hi, I am Rezoanul Vibes. I'm a content creator and passionate learner. I write about lifestyle, finance, martial arts, and digital marketing. I'm glad to meet amazing people all over the world.
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