Post
Topic
Board Speculation
Merits 1 from 1 user
Re: Buy the DIP, and HODL!
by
Roseline492
on 06/12/2023, 18:31:56 UTC
⭐ Merited by Obim34 (1)
Quote
person who is doing DCA may not have that profits because s/he ends up accumulating very little fraction of it.
Mate, I disagree with you on this statement because using the DCA strategy does not mean you will accumulate Bitcoin at a small fraction or get a small profit from your Bitcoin investment. The DCA strategy will help you prevent bad timing in accumulating your Bitcoin and reduce the impact of volatility in your Bitcoin portfolio. Someone might buy Bitcoin worth $1k with a lump sum buy and another person might also buy Bitcoin worth $1k with the DCA strategy, and the person that bought with the DCA strategy might end up having more Bitcoin than the person that bought with a lump sum, because the person that used the DCA strategy bought at different prices. For instance, someone might want to buy Bitcoin worth $1k, and the person choose to buy it with the DCA strategy and divide the $1k into 10 places to be used for accumulating Bitcoin every week, with a minimum buy of $100 every week.
It seems you don't really understand the points he is trying to make, I think what he is trying to say is that DCA involves more on accumulation of bit by bit with a smaller amounts of money one could afford, of course he is right because we all know what DCA is all about in times of people who doesn't have enough money to invest huge on Bitcoin but however instead of waiting and hopping to have enough money before starting accumulating Bitcoin perhaps they could get started from the little they have and keep accumulating consistently although at first it may not worth much amounts of Bitcoin but with time it will surely appreciated.