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@ Agoristo⚡️
2025-03-01 23:41:24!(image)[https://i.nostr.build/iuWXGIaA91wMTFJg.jpg] I've been seeing some posts from (I think new) Bitcoiners complaining about the recent volatility of Bitcoin, sometimes in dismay about the price, and sometimes in dismay that they have no "dry powder" available to buy the dip. With inflation being such a huge problem, cost of living has a very real effect on our ability to stack sats, so some creative thinking is in order. My hope is that this post can share a little bit of wisdom that I have found to work for me in my own quest to accumulate as much Bitcoin as I can. If you want to skip to the meat of this article, scroll down My Strategy. As the standard disclosure goes: this is not financial or investment advice.
A little about me and where I'm coming from
I'm part of the 2022 class of Bitcoiners. I'm very new to this community.But I have gone down the Bitcoin rabbit hole, I have read Saifdean's The Bitcoin Standard and The Fiat Standard, and I have spent many many hundreds of hours listening to podcasts on Bitcoin and Austrian economics (which I discovered at about the same time). All this to say, despite the work that I have put in thus far, take this with a grain of salt and use your own reasoning to determine if this strategy or any ideas derived from it are right for you.
Dollar Cost Averaging
Dollar Cost Averaging (DCA) is the practice of setting a recurring buy order of a stock or commodity. Such orders, once set, will continue to execute at the set frequency until the buyer's selected termination date, or until a set amount has been reached, or until no more funds are available in the buyer's account from which to buy. DCA takes advantage of the fact that for a long term growth asset (like Bitcoin), the average price will always tend to go up over time despite intermittent volatility. By not trying watch for or time the dips and highs, DCAing not only makes it easier to accumulate Bitcoin, but it is very effective in the long term and reduces a lot of potential stress from trying to game the market volatility. One more important point is that as this method utilizes averaging, the closer that the buyer can match the actual price curve over time, the greater the benefit from the average growth of that price curve. This means that for two recurring buy orders, using the same amount of fiat in the buying pool, if one has more frequent buys and the other has less frequent buys, even if they spent the same amount at the end of the buying period, the order with more frequent buys will experience the greater value from the average growth of the asset being purchased.
This is in contrast to limit orders, in which they buyer attempts to gauge what price action will occur in the future, or "smash buying" in which the buyer tries to watch and time the market to place real-time orders. As these are not the focus of this strategy, I won't go into detail about them. But if you understand DCA and why it works, I assume that you can also reason for yourself about the effectiveness and utility of these other buying methods.
Each of these methods can occasionally be successful, I'm not saying that there is not place for them. In fact, I use these too, but they are used in a tactical manner, and I try to be careful to make sure that using these do not interrupt my DCA strategy.
Savings Allocation
I may update this in the future, based on changes in my financial situation, the larger landscape, and whatproducts/tools are available. Note that I'm not rich. I work for a tech startup which is gaining traction, and if it is successful then that may change. But for now I operate with limited financial resources to use for stacking sats. But still, I stack sats. I say this to clarify why this strategy works for me, and hopefully to establish that this will work for you if you also have limited income but have the ability and desire to accumulate Bitcoin for yourself.
I have a consistent amount of money coming in on a regular basis, and this is an important part of my calculus. Similarly, I have consistent bills going out. The difference between these are my subsistence and discretionary spending. Subsistence spending being money that I spend on food and other nutrients, and discretionary spending is what I spend on the things that I want but don't need.
I'm not at a point where I've managed to completely cut out my discretionary spending, but I do try to limit it as much as I can. Similarly, I'm proactive about finding good deals on food (especially beef). Then I can allocate more money to savings. It is this savings allocation that I use for buying Bitcoin.
My DCA Strategy
!(image)[https://i.nostr.build/augZsY8EVEAsdP34.png] My strategy begins with the money from each pay check that I want to allocate to savings (which in my case all goes to buying Bitcoin). It also hinges on DCA, and is strongly inspired by the sayings "stay humble and stack sats", and that "time in the market beats timing the market". I am not a professional trader, nor do I aspire to be one. As such, I want to maximize my time in the market without stressing myself out.
Allocating funds for DCA: First, find the amount for each pay period that you will use to buy Bitcoin, but don't immediately use it to buy, yet. Next, you need to find the frequency by which you will buy, and how much. I recommend the most frequent recurring buy option that you can find.
To do this, you need to find the DCA options available on the exchanges that you use. As a Bitcoin maximalist, I use Bitcoin focused exchanges. As a man with limited available funds for this use, I want the ability to DCA in fairly small amounts, but as frequently as possible. I find that River and Strike are excellent exchanges for this. Each of these exchanges currently allow buying as frequently as once-per-hour. River has a minimum of $1 per purchase. Strike can go even lower, I have a friend who I convinced to adopt this strategy and he started out with an hourly recurring buy of $0.05 per hour.
Having been a Bitcoiner for a little while now, I also find that it is useful to have additional funds set aside for "smash buys" to take advantage of major dips, such as the one that we are currently experiencing (I'm writing this on March 1st, 2025).
Using River as an example: The minimal buy on River, as stated above, is $1 per hour. There are 24 hours in a day, and 14 days in a pay period (for me). Then the minimum amount to allocate on River is $1/hour x 24 hours/day x 14 days/period = $336 per period.
You can change the dollar amount or number of days as are appropriate for your own goals and circumstances.
If you have a lower total available amount, you can use this version of the formula to find the recurring buy amount on Strike (or whichever other platform allows sub-dollar recurring buys): Recurring Buy = (available funds) / (number of hours over which to buy)
In truth, I use Strike as well, but I have another reason for choosing River in this example: I mentioned having a DCA strategy which keeps a reserve of "dry powder" so that you can also buy the dip.
You may benefit from keeping some reserve of savings in USD. It's something we simply can't get away from at this time of continued fiat dominance. This allows you to pull from the fiat reserve rather than selling any accumulated Bitcoin in cases of emergency (like car problems, or a family member needing help).
Last year, River announced a feature by which any cash kept on their exchange would earn 3.8% interest, which is paid in Bitcoin. This strategy works with other exchanges, but using River means that interest accumulation can also be leveraged (and it is much better than a typical bank savings account).
This is the final part of the strategy: put the rest of your savings into River and let it accumulate interest in Bitcoin. This reserve then becomes your dry powder. Use it at your discretion, save for emergencies, or use it to "smash buy" the dip, but do it without compromising your DCA setup. DON'T CANCEL your DCA, keep it going and take advantage of it's average growth. You don't know when the price will dip, and you don't know when it will go back up again. If it is difficult for you to maintain discipline and not spend your DCA reserve (since River doesn't split it into buckets for you), a variation of this strategy is to DCA-stack on another exchange so that it's not in the same pool as your fiat reserve.
When all else fails, just keep calm, stay humble, and stack sats. !(image)[https://i.nostr.build/pko6uWkq3rf0y0io.png]
I hope that someone finds this helpful. If you have your own personalized strategy, I'd love to hear about it in the comments.