Actually, there is no harm in doing analysis before buying bitcoin. However, if the analysis takes too long to make you hesitate when making a purchase, I think the action is a bit excessive. Because for example the analysis is good and thorough, but in the end you hesitate when making a purchase (
procrastinate), most likely the end result will not be good. So the solution is just to analyze Bitcoin well, then after that make a purchase with the money that has been prepared (
cold money) and don't think too much which makes your mind anxious.
Besides, I think having a habit like that is also a bit bad. Because I am of the view that if bitcoin investors have a habit of delaying purchases, there are several factors surrounding these investors.
- It could be because the person is too greedy in seeking profit
- Using hot money
- Short term investors
- or also beginners who are just starting to invest.
But basically I also don't blame people like that. Because after all it is their money, their decisions and every decision that comes out is their right. But this is a lesson for me as well as for anyone who doesn't understand this yet. In fact, delaying purchases when investing in bitcoin is not a good thing.
And DCA is indeed a good solution to this problem. Because if I buy bitcoin with the DCA strategy, what I experience is that I enjoy the investment process more. Because I don't need to be confused about when to buy bitcoin (
because it has been determined from the start) and I'm not afraid of missing out on cheap prices (
because the goal is not for a short time). So if you invest in Bitcoin with a DCA strategy, everything becomes more focused and directed very neatly.
Too much analysis for me he is doing trading not buy bitcoin for investment.
I quite agree with your points: I think it is indeed to be excessive because the goal of investing is even hampered by the analysis that is made but instead it becomes doubt and anxiety in the end to delay the purchase of bitcoin because it is still in doubt and the rest.
1. Just do the analysis, if the price corrects/discounts then buy in a lumpsum way.
2. If you are not good at analysis, just invest with the DCA method you don't need to think about the price up / down on its basis, just keep buying with continuous accumulation.
Do not forget about cash flow adjustments, set aside how many percent for bitcoin does not need to be too large a percentage, enough you take every month from the salary received the rest maybe 70% can be used according to your needs.
DCA is indeed the right way, I have been doing it all the time until now, I don't see the price going up / down and keep buying regardless of anything, see what is shown I previously had an average purchase of $28K because DCA is already profitable of course but I will continue DCA.