Seeking Advice on DCA Strategy for Investing 7000€ in Bitcoin

Title: Seeking Advice on DCA Strategy for Investing 7000€ in Bitcoin

Hello everyone,

I’m a 19-year-old who has accumulated 7000€ to finally begin diving deeper into the crypto world. I acknowledge the principle of “only invest what you are willing to lose” and am prepared for the potential risks involved.

I am looking to begin dollar-cost averaging (DCA) into Bitcoin and plan to distribute the 7000€ over 5 months, from June to October. I would appreciate any advice on the following:

Which platform should I use to DCA? I am currently familiar with Binance, but I’m open to suggestions for other reliable platforms that might offer better features or lower fees for DCAing.

DCA Frequency:

Biweekly: I would deposit 700€ twice a month on set dates & times, totaling 7000€ at the end of October. Weekly: I would deposit 350€ four times a month on set dates & times, totaling 7000€ at the end of October. Daily: I would deposit 46€ every day on set times for the 5 months, totaling 7038€ at the end of October. Which frequency do you think is the most effective for DCAing into Bitcoin?

Fees: I understand that daily DCA might incur higher fees if I deposit money into the broker from my bank every day. Therefore, I might need to deposit larger sums biweekly to the broker to avoid excessive fees. How do you manage these fees efficiently?

UTXO: I have heard UTXO (Unspent Transaction Outputs) is often discussed among DCAers. Despite some reading, I still don’t fully understand how it impacts DCAing and how significant its effect might be. Could anyone shed some light on this?

Pre-set Dates and Times for Buying BTC:

I am considering using AI and conducting my own research to identify the best dates and times to buy BTC, based on historical data (say, the last 5 years). This would help determine when BTC prices are typically lower. Alternatively, I could choose a comfortable date and time and stick to it without focusing too much on price fluctuations.

I would be grateful for any insights or advice on these points. If there’s anything else that comes to mind, please enlighten me, as I am eager to learn and make informed decisions in my crypto investing journey.

Thank you in advance!

/€