Best Bitcoin DCA Strategy for Beginners
Bitcoin DCA (Dollar Cost Averaging) is the #1 best investment strategy for most crypto investors who want to grow their BTC holdings over time.
In this guide, I’ll cover everything you need to know about BItcoin DCA and share exactly how I use the exact same strategy to increase my Bitcoin holdings without stressing over price swings, FUD, and anti-Bitcoin critics.
I’ll also share several reasons I use on a regular basis to automate everything so you can stack sats passively while enjoying your day.
Let’s get it!
What is Bitcoin DCA?
Bitcoin Dollar Cost Averaging means you purchase the same amount of Bitcoin (or any other crypto) on a regular basis regardless of the price or market conditions.
Using this strategy, you get more coins when the price is lower and fewer coins when the price increases.
How Much Should You DCA?
It really depends on your income level and personal risk tolerance. I like choosing a specific dollar amount that I can comfortably invest in Bitcoin on a regular basis.
I chose $10 per day because it’s small enough to easily manage but large enough to increase my BTC holdings greatly over time.
If you live below your means then you can easily invest 10% or more of your monthly income into Bitcoin.
For example, let’s say you earn $3,000 per month at your job. You could break your DCA buys into the following schedules:
- $10 per day
- $75 every week
- $150 every 2 weeks
- $300 per month
How Often Should You DCA?
I personally DCA daily because daily crypto purchases allow me to take consistent steps towards my goal of becoming one of the top Bitcoin holders in the world.
For most people, weekly or bi-weekly purchases will work better especially if you have other responsibilites like family, kids, etc.
If you’re investing very large sums of money then monthly DCA purchases can work well too.
Whatever frequency you choose, it’s important to remain consistent and stick to your schedule.
Automating Your DCA Strategy is Key
It’s one thing to create a DCA schedule and another to actually follow it through. Sometimes we set a goal to buy crypto but life gets in the way. Humans tend to forget things and the price of Bitcoin might start rising while you forgot to remain consistent.
Automating your DCA is the best way to guarantee success in the long run and grow your BTC passively. Most crypto exchanges support automated purchases so use this feature for the best results.
Best Places to DCA Bitcoin
Coinbase is my favorite crypto exchange for my DCA strategy. You can also try Swan Bitcoin, as a cheaper Coinbase alternative to save on fees.