Quote from: Ruttoshi on Today at 10:08:30 AM

Quote from: Roseline492 on October 18, 2023, 10:27:55 PM

Quote from: Odohu on October 18, 2023, 01:04:11 PM

Buying at once seems more favorable for those who have bulk capital and have already made up their mind to invest same in Bitcoin. They don't see any need keeping those funds or employing DCA since the fund is readily available. This is not a bad strategy provided the intentions are to hold for long to be able to realize profits.

Yeah you have a point, for those who have enough funds that cannot be affected if using a bigger amount to buy Bitcoin can actually buy a higher amount of Bitcoin at a time and however DCA method may not be use for these kind of investment because the investor may already have more than enough money that could buy a whole lot of Bitcoin and still have many reserve funds waiting.

So irrespective of how important DCA strategy is, perhaps there are some kind of investment or accumulating patterns that may not require the need to DCA because sometimes due to the kind of funds we may have, we can decide to invest at once instead of buying bit by bit, so I believe that DCA strategy is based more on the people that has a low capital and that's managing to accumulate Bitcoin.

Lump sum buying is more of advantage when bitcoin price is at the bottom line of the dip, at this time, all you need to do is to buy once and just sit down and watch how the price starts going up again and your investment will also start increasing with the timeline. Apart from that time, the DCA method is still the most welcome strategy to use in buying bitcoin, this can also help you have plans on some other investment you want to diversify to.

Sure there is a bit of a problem with a lump sum investor who fails to take further action, even if making lump sum investment at a relatively good price and not doing anything because his her BTC are mostly in profits after the time that she he bought.

For example, take the Hypothetical 1, lump sum buyer who bought 21 BTC in 2015 for $6,300 (average cost of $300 per BTC)

Right now he would have right around $603k .. not bad, right?

And compare that person to hypothetical 2 who bought $100 per week starting in June 2015, and he would have spent nearly $44k and accumulated 26.2471 BTC (worth about $753k and an average cost of $1,676).

or compare him to hypothetical 3 who might have lump summed into bitcoin and continued to buy $100 per week
and he would have spent right around $50,300 ($44k + $6,300) and accumulated 47.26471 BTC (21 + 26.2471) (worth about $1.36 million and an average cost of $1,064).

Which one would you rather be?

I think that the person who ongoingly invests into bitcoin is not ongly going to be better off financially and psychologically, s/he is going to be more actively paying attention to his/her BTC investment, but of course, people are free to do whatever they like.

Quote from: Ruttoshi on Today at 10:08:30 AM

The DCA method is not for only the low income earners, it is used by everyone, but the rich and the poor to accumulate bitcoin at regular interver to increase their bitcoin investment portfolio at ease, since they have the passion to keep on accumulating. Since it is very difficult to know when the dip will come, but if you buy at lump sum when the price of bitcoin is not at the dip, you will not be happy when the price begins to dip below the price that you bought, and that is where DCA come to play because you are buying regular irrespectively of the price of bitcoin at that moment.

Agreed, and part of the reason that it can be good to employ multiple strategies and have contingency plans. It does not make buying in lump sums bad, but it seems that supplementing with either buying on dips and/or DCAing can cause the lump sum buying to become even more profitable than what it would have been, including that maybe the lump sum investing had also allowed a decent amount of front-loading of the investment that would not have been accomplished through either a DCA and/or a buying on dip approach.

Quote from: Agbamoni on Today at 11:19:03 AM

Quote from: Winterfrost on October 18, 2023, 10:47:40 PM

Statistically speaking to avoid wrong timing of the market if I see a lump sum like that I wont buy immediately because of the dip, I will still do it the DCA way but this time huge amount because i see no harm in spreading it out over several weeks or month.

What you just said would it still be considered as a form of DCA'ing if you invested a lump sum at consistent intervals over a longer period of about 10 weeks like you said?
Does that still qualify it as DCA'ing?

You are correct Agbamoni that sometimes members are calling what they are doing by the wrong labels, so it might be a bit unclear regarding what they mean exactly, and I am not even suggesting that a person needs to strictly follow any particular strategy, but it still is good to know the difference between each of them in order to attempt to better understand what you are doing and if you might want to change your strategy, or supplement it with other methods... but sometimes you might think that you are buying on dip, but you keep buying regularly which is a form of DCA, and then you think that since you are using your bonus money, then it is kind of like lump sum because it is not part of your regular cashflow, and surely all of that makes sense, but it can be confusing when people categorize their behavior as if it was purely falling into one of the categories when it really is a kind of hybrid.

Quote from: MusaPk on Today at 04:24:18 PM

Quote from: JayJuanGee on October 17, 2023, 08:37:16 PM

[edited out]

..... and don't forget to cash out some portion when you are getting some good profit.

You had me all the way, until I got to your last sentence.... and selling is not a necessary basic technique.. especially for beginners and maybe even folks who have been in bitcoin for less than 2 full cycles.