Post
Topic
Board Speculation
Re: Buy the DIP, and HODL!
by
Frankolala
on 12/10/2023, 15:55:14 UTC
the DCA approach is still the best way to accumulate bitcoin. When there is a drop, you can also use it to accumulate more bitcoin than before. The dip is not certain and cannot be predicted, but you can always accumulate gradually using the DCA approach.
Those that don't have an option but only to DCA can do a lot better unlike those that don't buy at all. But if you're blessed and you'll be able to buy with an entire amount on the spot, honestly I think that's better.
[/quote]
No method of buying that is bad as long you are increasing your bitcoin investment portfolio. You should also put into consideration that most someone that is blessed and buys a lump sum at once when the price is high, might not be able to accumulate more than someone with regular DCA. This is because who buys at lump might buy when the price is far higher because he doesn't want to wait for the dip and might spend the funds for something else if he doesn't buy immediately. And before you know it, if bitcoin price dips very low, that person that is DCAing might be able to take advantage of the dip to accumulate aggressively to buy more bitcoin on a discount. Before you know it the DCA person portfolio will keep on increasing and because he buys regularly disregard of the price of Bitcoin his portfolio has the possibility to be higher that one that buys at lump sum once in awhile.

What I will do if am blessed with much funds is that, instead of me buying lump sum at a spot and relax, I will prefer to split the money into three parts equally, where I will use 30% for lump sum, 30% for reserve to buy at the dip and I will use 40% of regular DCA, with this combined three strategy my bitcoin portfolio will increase higher compare to one that just purchased a lump sum and relax because I will take advantage of bitcoin market and any given price. For those with low income and and newbies, DCA will help them increase their bitcoin with no fear or stress.