Many may say that holding bitcoins in an exchange account is risky, you are not the only user who is holding their investment in an exchange account, there are much bigger investors than you who have left millions of dollars in exchange accounts. Since they took this risk, you must also take risks, and without taking risks, progress in life is not possible.
@Fuso.hp, you are sounding as if you are new into the crypto space. People keeping their bitcoin in exchanges are ignorant of the risk of losing all their investment when the exchange crashes or is been hacked. We have seen in 2022 the crash of FTX which render so many investors and institutions bankrupt because their funds was kept in an exchange, is this what you want for your bitcoin investment to be enjoyed by someone else after your hard labour and sacrifice investing. Initially when bitcoin transaction fee was normal and there was no ordinals, nobody will even advice you to leave $50-100 worth of bitcoin in an exchange because they are in control of your coins.
The reason why @JJG said you can buy bit by bit and keep it in an exchange till it has reached up to $500 is because of the high transaction fee that we are experiencing, so that you don't end up buying bitcoin at $100 and use almost $40 to transfer to your self custody wallet. You will ending up giving 40% of your weekly DCA amount to miners. It is never safe or advisable to keep funds in an exchange. Can you image investing for 4yrs and your investment is in an exchange, this means that you are investing for the exchange. Not your keys...not your coins.
Usually people who have lump sums that they can invest already have that money available, so the person who has the money available can choose whether to DCA and/or to lump sum and/or to buy on dips, so that person has more options, and it may not make a whole hell of a lot of sense for the person who already has a lump sum of money available to choose to DCA or even to buy on dips rather than to buy right away, but even the person who has a lump sum available is not forced into having to buy right away.. he has options.
Exactly, the person who has the money to lump sum have the options to lump sum or not, but I will prefer that such money should be shared into three parts, where one part should be uses to DCA regularly, and the other part should be kept to buy at the dip and the third part should go for lump sum because lump sum to me is front loading of your investment.