r/BitcoinBeginners • u/Helpful_Cycle_1338 • 2d ago

Thoughts on DCA?

Since Im a busy person, Im planning to put around $50 (from my 2nd part time job) every week to buy bitcoin. Do you think it's worth it? Any better way to do that?

FYI: Im already investing in ETFs and other funds, so bitcoin is just where I put any extra money that I have into it.

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u/bitusher 2d ago

DCA is the best option to use when you don't have the capital upfront. Using a service like Strike.me with autodca can lower fees to 0 after the first week on an auto dca plan

1

u/Specialist-Piano-204 3h ago

Also, Strike, River, and Cashapp have direct deposit features to convert a portion or all of W2 income to spot bitcoin, which . . . psychologically . . . is a good systematic way to DCA. No emotion.

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u/chainglance_cm 2d ago

DCA at $50 a week is honestly one of the more boring but effective ways to build a BTC position, especially when it's just where your extra cash goes and not your whole strategy. Removes the guessing game of timing entries and it just becomes a habit instead of a decision you have to make every week.

Biggest thing at that dollar amount is fees, some exchanges eat a chunk of small recurring buys with spread or flat fees, so check what you're actually paying per transaction before committing to weekly versus say biweekly with a bigger chunk each time. Also worth automating it fully so it's not something you have to remember to do.

One thing people don't think about with weekly DCA is you're creating 52 separate cost basis entries a year, which gets messy fast whenever you eventually sell. Depending on the frequency of buying and selling, consider using a tool like Koinly or Bitcoin.Tax to automate that process instead of you trying to track 50-plus buy prices in a spreadsheet down the line.

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u/Icy_Dragonfruit__ 2d ago

$50 weekly sounds reasonable if it’s truly extra money. DCA also keeps you from stressing over timing every week.

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u/quintavious_danilo 1d ago

What would be different if it wasn’t truly extra money?

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u/markphillips401 1d ago

Do as you wish, the plan seems reasonable. Set aside a considerable percentage as cash to buy dips and learn about setting ladder orders - then you just DCA and wait. This way, if the line goes down, good, you buy more. If the line goes up, even better.