DCA Mistakes I Have Made (So You Do Not Have To)

My DCA Mistakes: Learn From Them

DCA is the simplest investment strategy in the world, but that does not mean it is impossible to mess up. I have made almost every mistake on this list at some point, and I am sharing them because I wish someone had warned me.

Mistake 1: Changing the Amount Based on Emotion

When Bitcoin was pumping in 2021, I doubled my DCA amount because I was afraid of missing out. When it crashed in 2022, I halved it because I was scared. This completely defeats the purpose of DCA. The whole point is fixed amounts at fixed intervals.

The Fix

Set your DCA amount once, based on your budget, and only change it during your quarterly review — not in response to price movements.

Mistake 2: Stopping DCA During the Bear Market

I paused my DCA for two months during the 2022 crash because everything felt hopeless. Those two months of missed buying at $17,000-$20,000 were some of the best buying opportunities of the entire cycle. I still regret it.

The Fix

Automate your DCA if possible. Remove yourself from the decision-making process entirely.

Mistake 3: Not Accounting for Fees

In my early days, I was DCA-ing small amounts on an exchange with high percentage-based fees. I was losing 3-4% on every transaction. Over a year, that added up to a significant amount.

The Fix

Always calculate the total cost including fees before choosing a platform. Sometimes it is cheaper to buy bi-weekly instead of weekly.

Mistake 4: Leaving Everything on the Exchange

I used to leave months of accumulated Bitcoin on the exchange because I was too lazy to withdraw. Then FTX collapsed, and while I was not affected, it was a wake-up call. Exchanges can fail.

The Fix

Set a withdrawal schedule. I now withdraw to my hardware wallet once a month, no exceptions. Learn about self-custody on our learning center.

Mistake 5: DCA-ing Into Too Many Coins

At one point, I was splitting my DCA across Bitcoin, Ethereum, and five altcoins. My positions were so small they barely moved the needle, and most of those altcoins are down 90% or dead.

The Fix

If you are DCA-ing with a small budget, focus on Bitcoin first. It is the most proven, most liquid, and least risky cryptocurrency. Once your Bitcoin position is established, you can consider diversifying.

Mistake 6: Obsessing Over the Price

Checking the Bitcoin price 50 times a day while DCA-ing is pointless. It just creates anxiety and temptation to deviate from your plan.

The Fix

Delete price alert apps. Check once a week at most. Your DCA does not care about the price — why should you?

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Disclaimer: This is educational content based on my personal experience. This is NOT financial advice. Your circumstances are unique. Always do your own research and consider consulting a qualified financial advisor.