I that it is important to point out that each of us needs to attempt to consider our BTC accumulation strategy in terms of our own situation, and even though there are going to be many people with more financial resources than us, we have chances to make up for our lesser resources by employing prudent and reasonable strategies, and not devolving into gambling techniques by over extending our budgets or taking unnecessary risks.
In other words bitcoin remains amongst the best of asymmetric bets to the upside that we currently have available to us whether we have a lot of resources or even if we have few resources, we can figure out an investment proportionality that works for us to get some stake into bitcoin and to reasonably and perhaps even aggressively invest into bitcoin within our own parameters. Historically, poor people have not been able to buy good investments because many of them either require a lot of capital upfront or even that you have a lot of cashflow to be eligible to invest, including investing in real estate.
With bitcoin, you can get into it with even a smaller budget and still end up advantage by being into bitcoin so long as you have a longer time horizon of 4-10 years or longer.
I agree with you on this. Your strategy for accumulating and holding bitcoin is yours and may not be applicable to the next person. There are folks out there with either a greater financial capacity or a very low financial capacity and you obviously can’t expect the folks in the two groups to have the same strategy or capacity to buy and hold bitcoin. Low income earners can’t really afford to buy and hold for the long term. But with bitcoin, a low income earner looking to invest can still invest and would get some returns from his investment. Bitcoin is more stable and reliable than any other alt coin out there.
I have a somewhat standardize talking point about this topic of how each of us should attempt to tailorize their investment into bitcoin, in terms of studying themselves, and individual considerations include but are not limited to cashflow, other investments, view of bitcoin as compared with other investments, timeline, risk tolerance, time, skills and abilities to strategize, plan, research and learn along the way including tweaking strategies from time to time to consider trading, reallocating, use of leverage and/or financial instruments.
It can take a long time to figure out each of these, but you do not have to figure them all out before getting started investing in bitcoin.. and accordingly any person could start by investing small (or investing something that they believe is reasonable and prudent - and continue to study their own circumstances, and perhaps tweak their investing strategy from time to time along the way.
The first considerations on the above list are more basic, and the later ones on the list are more advance, so of course, on a personal level, I have frequently striven to get the basics in order before getting into the more advanced techniques.
Like you mentioned, a poor person would not be precluded in terms of investing into bitcoin, but would merely need to consider how to manage a reduced position size.. which could be $10 per week, or maybe even way less than that... Poor people have to be careful in terms of over investing because no one should be in a position in which s/he has to withdraw any portion of his/her investment into bitcoin that is at a time that is completely of his/her own choosing - which also means that there needs to be some ability to have their finances sufficiently in order so that they are not investing money into bitcoin that they need for their cashflow and their expenses and also including possible emergencies that might come up.
Low income earners can’t really afford to buy and hold for the long term. But with bitcoin, a low income earner looking to invest can still invest and would get some returns from his investment. Bitcoin is more stable and reliable than any other alt coin out there.
Yes it is very common in crypto market everyone wants to hold Bitcoin but can not. It becomes very difficult to hold on, especially for those who are small investors. When Bitcoin is in a bull market, everyone gets returns quickly, but when a bear market lasts for a while, it has a big impact on small investors and many are forced to give up their holdings.
If you cannot hold onto your bitcoin, then you likely have overinvested.. So if you cannot handle something as low as $10 per week, then you might have to go down to $10 per month.. and then once you figure out how to live without tapping into your $10 per month you can work your way to higher investment levels of maybe $10 per week and maybe even later $100 per week.. and in that regard, if you only should be investing $10 per month because you do not have your financial matters in order, then you better not be investing more than that... until you get your shit together.
Yes.. bear markets might last 3-6 months, but they might end up lasting 3-6 years, so there is a need to be prepared for either scenario and to have an investment plan that attempts to NOT overinvest, but at the same time, it is great to invest in a sufficiently aggressive and assertive manner that is within reasonable and prudent assessments of your finances... including considering the matters I listed above in response to harapan.
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You could always have the option whenever you do have the money to spent or invest on which means that you are really that capable on doing so or simply talks about being versatile on different conditions.
Yes,DCA is very common but only a few could able to handle such accumulation because not all does have that big funds on purchasing whenever the market declines even further.It would really be a never
ending chase but we know that on a market if there's price decline then there would be always a recovery.
You seem to be mixing up DCA with buying on dips.
With DCA, you set an amount that you can buy no matter what.. based your cashflow, not based on the price of BTC. Accordingly, there is a presumption that in the long run that BTC prices are going to be up higher than your DCA amount... especially if you have a 4-10 year time horizon or longer.
You can supplement your DCA strategy with buying on dips... and so save some money for buying on dips (that is optional, and we cannot be sure if more dip will happen or not, but of course, you can set up your dip parameters too.. which should be a different budget than your DCA which is just an ongoing amount.. $100 per week, $10 per week, or whatever amount that might seem feasible for your budget and having your regular expenses covered including have reserves for emergency expenses, too).
There should be no need to mix it up with the DCA that is applied, we must focus on our routine, not in terms of the price of BTC falling for DCA.
I already have a monthly and not weekly plan because I have assumed that monthly needs with DCA are a good way for me to keep my needs met, it's not a burden, even though it's not big, but there will be a good average value of the month, it depends on how needs every month for us.
By completing the DCA strategy, I will set it up to a price of $50k (optional) but I want it to continue so that there will be no break for a period of 4-5 years.
There can be a variety of ways that you could set up your DCA in terms of your cashflow - when you get paid and maybe even attempting to account for a variety of uncertainties in your cashflow and even expenses.
For years, I have had a tendency to project my cashflow out for a couple of years (using an excel spread sheet), and it can be more important (helpful) to project out for longer periods when there are possible complications in your cashflow, expenses and investment goals that you want to attempt to plug into your cashflow projection.
So you could have a kind of worse case scenario figured out that you would project that you would invest $10 per week into bitcoin (and of course, it makes sense that some of this might be more reasonably framed in terms of monthly), and so if the whole month ends up going well, then you might be able to inject more into your BTC investment for that month because your cashflow might have ended up being higher and/or your expenses might have ended up being lower, so then you can end up folding the excess into bitcoin.. but only after you have pretty much cleared the month or assured that you have the short term sufficiently covered, and you know that you had exceeded your expectations for that month. Some months might have higher levels than others, but you may also have a kind of budget that attempts to maintain a base level - such as $10 per week on average to invest into bitcoin, and of course people with higher cashflows and/or lower expenses might be able to establish a higher base level and to see that they still have cushion cashflow reserves in their budget that might be projected out for a couple of years but have more attention paid to the shorter time frames in which bills are coming due and assessments can be made about whether cashflows expectations have been met.