Post
Topic
Board Speculation
Merits 1 from 1 user
Re: Buy the DIP, and HODL!
by
$crypto$
on 16/01/2024, 18:34:56 UTC
⭐ Merited by JayJuanGee (1)
The main purpose of DCA is not to minimize the risk of investment, but DCA is used to get a lower average price instead of a lump sum. DCA is always recommended so that you can anticipate a price down after you buy, but you don't need to be too strict about this strategy because basically the price also has the potential to rise higher after you buy. Buying regularly and buying with DCA are different. I mean, regular buying can be done at any price, whereas buying DCA takes advantage of another dip to buy once you see a correction.
Yes it's one of the DCA get a low average price but DCA should be consistent what you set whether it's every week/two weeks/month then you will get the best price this way.

Minimizing risk in investing for me you must be able to manage finances the amount spent on bitcoin and the amount of your needs, if you cannot manage this then other risks will become complex so it is important to manage your cash flow.

Then you say DCA utilizes the falling price, then I don't think this is right, whatever the price is when you buy it, this DCA, whether it is high or low, you will still buy because in essence you will know the overall average price.

If you buy during a decline then it's buying Dips.