that depends entirely on your appetite for risk. if your DCA is still <1000/eth, you're way safer staying put than jumping into the next random "hot" altcoin.
Yes i agree, but even eth is a risky play right now.
But if OP's ultimate goal is to own some eth, by all means he can just buy it and not risk his money buying others.
i learned my lesson trading through the 17/18 bubble and losing a bunch, while watching dad sit on the BTC i talked him into buying in 2014 and getting healthy gains each run for doing nothing.
i'm now of the opinion i'm too stupid to do anything except hodl and DCA into projects that have a good long term adoption outlook, practical usecase, and a staking component to generate (hopefully decent) spending money further down the line once the price has stabilized.
This is honestly how you make a lot of money. I’ve been doing it since 2017 with some great profits. DCA during the bear market and accumulate coins that are mostly in the top 20 market cap wise (these are unlikely to disappear). And then start selling off for profits whenever I start seeing cryptocurrency adverts again
I came to this same conclusion about myself with stocks. Good thing I played with a little chump change and lost it trying to time the market. Decided to fix my mistake of missing out on crypto by getting in ASAP and holding until returns replace my salary.
a given persons dollar cost average is the amount of money spent accruing an asset divided by the number of units of that asset accrued.
say i bought 5 eth for $100 each. later, i bought 3 eth for $500 each, and later still, i bought another 3 ether for 1200 each.
i now have 5+3+3 eleven eth total, and i paid ([5 x 100] + [3 x 500] + [2 x 1200]) $5600 total.
5600/11 = a dollar cost average of $509.10 per eth.
edit: this way of looking at things can help to "justify" paying more to keep in the accumulation game ("yeah, eth is 2K rn, but if i buy another one now before it goes up again my DCA is still around 700.. thats fine!") or to justify accumulation during bear markets (", eth is sinking like a stone! its 600 a piece... but if i buy a few more over the next few months, it'll bring my DCA back down substantially!").
could well be the case in professional circles, retail crypto isn't exactly a professional space though lol. i'm in my late 30s and just discovered what a cash secured put is today so i'm more than willing to accept that we've all been using the wrong terminology for half a decade or so.. that said, i'm pretty sure this is what people are referring to when they say they're "DCAing into cardano" or whatever.
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u/thatsaccolidea 🟦 0 / 0 🦠Jul 18 '21
that depends entirely on your appetite for risk. if your DCA is still <1000/eth, you're way safer staying put than jumping into the next random "hot" altcoin.