As a newbie, it is good to adopt the DCA strategy when accumulating bitcoin. Even though you are a low-salary earner, you can still accumulate bitcoin with the DCA strategy because you will set a day when you will be investing a small amount of your fund in bitcoin when you receive your salary, and you can be buying bitcoin monthly so that it will allow you to take care of your financial needs since you are a low-income earner. The DCA strategy will make you consistent in accumulating bitcoin because you will set a plan for accumulating bitcoin anytime you receive your monthly salary.
Dollar Cost Averaging Method (DCA) is the easiest and recommended strategy for new investors because investing in Dollar Cost Averaging method is a systematic investment strategy. I think these days not only newbies are adopting this method but also many experienced investors and methods especially those who don't have huge amount of money.
The prices of different coins in the cryptocurrency market often deceive newbies with volatility, but newbies can reduce all that risk by investing in the dollar cost averaging method. Here are some steps that beginners should follow to invest in Dollar Cost Averaging method:
Beginners should buy regardless of market conditions. Dollar cost averaging method of investing in any coin or bitcoin requires beginners to buy a small amount of bitcoins every few days or weeks or months. Beginners should properly analyze the market based on their long-term value potential and then buy coin.
It seems that newbies should be more careful about DCA than experienced ones. Because the more knowledgeable the newcomers are in this sector, they will be able to innovate new ideas that will bring more benefit to all.
Some ideas in my mind like:
Education,Set clear goals,Start with the basics,Create a budget,Open an investment account,Diversify your portfolio,Stay informed,Seek professional advice from senior,Monitor and adjust and invest for the long term.
Newbies should embrace the DCA method as if their life depends on it. It should be their watch word, they shouldn't deviate from it. When you say they should be careful with DCA I don't really understand what you are driving at. As a newbie who is making your first investment in bitcoin, I expect your first buy to be in lump sum or possibly an aggressive buy in order to have a reasonable amount of bitcoin in your portfolio. Once this is done and the newbie is not satisfied with the level of his portfolio, he should embrace the DCA with all his heart and follow it. There is nothing to be careful about with DCA, as this method was carefully designed to give everyone a soft landing. Also as a newbie you have no business with portfolio diversification, your primary target should be bitcoin. Don't go any any shit coins in the name of diversification and get yourself hurt at the end of the day. I won't deny that there are room for diversification, but this can only come in when you have spent a reasonable amount of years in your crypto journey and have better understanding of the market, but as a newbie this is not for you.