Post
Topic
Board Speculation
Merits 1 from 1 user
Re: Buy the DIP, and HODL!
by
Sim_card
on 12/09/2023, 11:22:18 UTC
⭐ Merited by JayJuanGee (1)
       ~snip~
This might be the reason I am not doing DCA instead I am doing SIP( Systematic Investment Plans ) Every time i see a dip in the market I buy as much as i can. I am not investing every month but I am investing regularly which makes it more adaptable and flexible for the volatile market when for a strategy like DCA you need to invest a constant amount in regular intervals. DCA can reduce emotional decision making but SIP strategy can make you more disciplined psychologically. Also, DCA costs more transaction fees because of the frequent transaction that needs to be done. I think SIP is not as popular as DCA because i haven't found too many people talking about this. ansaction
Nice strategy you gat @DVlog called SIP. I haven't thought of this method to use in accumulating bitcoin,from what i have noticed with the market,your strategy shows that you will only depend on the dip to use as an advantage to accumulate at a discount price. Personally,this strategy like JJG said will only benefit those that are old in their bitcoin journey, and they have accumulated a significant amount of bitcoin and not for begginers who just started their bitcoin journey. The reason is because you might have reserved some funds targeting and waiting for a dip market and if it doesn't come,after a long time,you might be forced to buy at a price that you never planned for,so that you don't end up missing out. No one can predict when the price will dip and this is one big challenge in your strategy,because you are only doin DCA partially during the DIP. I don't also think that your strategy will accumulate more bitcoin than someone who does DCA weekly or monthly in a regular base because he is always buying and increasing to his bitcoin portfolio. I am using DCA method because i just started my bitcoin journey and it is not up to two years,and when there is an opportunity to see a price dip,any extra funds that I have and is not useful, I use it to buy higher amount,let me say like 4X my DCA price. What i did recently, was to meet my Boss at work to give me 40% of my salary,which he gave me and i used it to buy at this dip to add to my investment portfolio. This will help me incase, the 25k+ price is the lowest that we will see before the bull run.  I have also spoken to my Boss that i have a project that am working on that will need me to come meet him for 40% percentage three months advance payment,if the current funds on me exhaust. I told him all these, so that if the market goes dipper than this to 20k level,i can go and collect the money from my Boss and invest in bitcoin to take advantage of the dip, because it is better to invest in bitcoin at a discount price than leave for fiat money with your company and get paid monthly with the high rate of inflation in my country. Then when the market pumps back i continue with my DCA weekly or monthly method, this is my strategy to accumulate more bitcoin. Why i don't like to depend on the dip to buy is because inflation depreciates fiat currency and there might be some unforeseen challenges that are very important that might come and consume that funds that you are piling up to use for buying bitcoin at the dip that no one know the time it will come. Although every investor with their own strategy based on their cash inflow and for how long that they started accumulating bitcoin.