Post
Topic
Board Speculation
Re: Buy the DIP, and HODL!
by
Frankolala
on 13/01/2024, 10:17:12 UTC
Yes.  And some ways are better than other ways, and as you know we are not really talking about trading in this thread or even proposing it as a better way for anyone (absent those who build a specialty or who want to spend time in this kind of activity - maybe like a profession), so no need to confuse matters more by suggesting that we might be talking about those kinds of things trading things as if they were even comparable or something that most normal/regular guys should be considering in terms of the bitcoin accumulation journey.
 
The most basic thing that we are talking about in this thread are the various ways to accumulate bitcoin, and so we have some agreed-to presumptions that we are considering various ways to attempt to accumulate BTC in the ways that are best tailored for each person.  So if we are talking about DCA versus buying on dip versus lump sum buying, then I still am gong to suggest that DCA tends to be the best for the newbie until he gets to a certain stash size.  However, lump sum could be equally well, if someone has a lump sum to get started with a lump sum, and then if he is a newbie and has not reached his accumulation strategy, the he should supplement the lump sum with DCA and buying on dips. 

Where we likely disagree the most, is my assertion that buying on dips is likely ONLY going to become a superior strategy after the person had already accumulated BTC, whether he did that buy DCA and/or lump buying and/or by some other way.
We all know that the DCA is the best strategy. But Buying Bitcoin when its price is down can be a good strategy for both new and experienced investors. This means buy it when the market is not good and the price is down.By doing this people can get advantage of the up and down in the market and can get more Bitcoin for having money. But it is is also need some experience like which is the right dip to buy.
Basically different people have different minds of investing in Bitcoin. Some use DCA which is a simple and good way to invest.And some people have more money and have more ability to take risks. They can choose to make one big investment in once. The best strategy for someone will depend on their goals how much risk they can take.
The main purpose of investing in bitcoin is to make a compounding profit at the long run, and how can you achieve this, it is based on the size of you bitcoin portfolio and time line. A newbie that just started to accumulate bitcoin don't need to figure out any of the three bitcoin accumulation strategies because he is new to the bitcoin and has no bitcoin portfolio yet. All he needs to do is to stick and only use the DCA method to accumulate regularly and increase his bitcoin portfolio size to a significant amount. While he has reached like 50%, he can now chose what strategy is best to him because during his early period of accumulation, he has been studying and observing which strategy he will adopt later but he is still focus on his regular weekly DCA approach.

However, like you said, we have the right to choose whatever strategy that suits us but you should also know that as a newbie, when you chose the wrong strategy like waiting and buying at the dip, you have ruined your bitcoin investment goal because you will end up having little or no bitcoin due to your wrong decisions and plans. This is because buying at the dip is something no one can target. You might even be at the bottom line of the dip, and you will still be looking for more dip, and you will miss out. The three are good strategy but there it depends on the level that your bitcoin portfolio is that you can use them. DCA is superior either when you have reached your bitcoin target or not because of the regular buying at different price. Consistency is the best.