Hi, normally I'm a fan of dollar cost averaging. But I'm thinking of not really dollar cost averaging because the market is obviously a very bull market right now for BTC.
What do you think will be the best strategy to enter the bitcoin market today?
Pick the lowest dip I can find say, this week, and invest all my principle. Or, dollar cost average anyway....if so, over what time horizon? Surely not over the next year. Maybe a week? A month?
I personally believe that the train has almost left the station, which is why I am wondering if it makes no sense to dollar cost average at this time.
SourceDollar-cost averaging (DCA) is an investment strategy in which an investor divides up the total amount to be invested across periodic purchases of a target asset in an effort to reduce the impact of volatility on the overall purchase.
So the answer to your question is it doesn't make sense at all. The volatility of Bitcoin would not be reduced like a big decrement for its volatility, eve in the dip. Therefore you may disregard the Dollar Cost Average method and stick to the "wait for the dip" because that more realistic and a sure way to earn profits in no time. Instead of taking its volatility as a disadvantage on buying, take it as a advantage because that is how it should be if you know when to enter and exit the market to secure your profit.