Post
Topic
Board Speculation
Re: Buy the DIP, and HODL!
by
SeriouslyGiveaway
on 19/10/2023, 02:44:43 UTC
If you have a lump sum, you can still divide it into parts, and you could decide whether you are going to buy some of those on dips and/or to DCA and/or to just buy right away.

So the portion that you have set for DCA, then you might take 1/3 and just set it up over 6 months or a year or even over 1 or 2 months.

So if you have $33k, then maybe you set them up for $1k per week for 33 weeks or you could pick a different amount per time period .. you could do daily or you could do bi-weekly, monthly or quarterly... there are quite a few options that would just set up your buy amounts based on how quickly you want to inject your purchases whether you want your amount to get put in fairly rapidly or you want to spread it aout for a while.

Many times people are using DCA because either they do not have lump sums available or because maybe they want to pace their investment, such as a person might hold $40k in equities, $30k in property, $30k in bonds $10k in cash and cash equivalents and $30k in gold.  Maybe if the person wants to slim down his/her gold holdings, from $30k to $15k, s/he will decide to slim down by $1k per month over the next 15 months or surely some other time period and amount could be used, but it is a way to pick a timeline to ease out of an investment and also sometimes people might just decide to stop investing in one asset or another and just divert those funds to other assets, and that would be another way to accomplish similar kinds of reallocations, without using lump sums but instead DCAing... even though in that last example lump sums would optionally be available to the person but easing from one investment to another frequently feels better, and may well have fewer potentially negative tax ramifications, too.
Thanks for explaining this in detail. There are actually many ways to approach DCA, but the most crucial aspect is sticking to your plan with discipline. If you don't mind, could you share the method you're currently using in detail? And aside from Bitcoin, are there any Altcoins you're interested in for long-term investments?
If I remember correctly, the price of Bitcoin was $20,250 as of January this year, and to have such a substantial amount of money, I would have just invested in all of it. The reason is that Bitcoin will not go back below $20k this year or even next year. In my opinion, Bitcoin has given people the opportunity to buy when the price was $20k at the beginning of the year and even was below $19k last year, which means no investor will see the $20k price again till probably the next bear market.
Perhaps, as of January this year, $20,250 is already the year's low, according to your analysis. Currently, there are two conflicting predictions: one suggests that Bitcoin will rise from this point, while the other argues it will drop to test the $20,000 price and fill the CME gap. It's indeed challenging to predict which one will turn out to be accurate. However, I still intend to follow my plan and the analytics I've conducted.