An investor should have his mind on a long term investment plan, before he venture into investing in bitcoin. He can achieve this by having a bitcoin target as his goal, so that this will keep him more focus and consistent on his bitcoin accumulation. Since he has that on his mind, he will not think of selling when he sees a little profit from the price of bitcoin, because he has not reached his bitcoin target.
But when an investor does not have a bitcoin target and he is just investing, he might be entice by the little profit that he has made in his bitcoin investment and forget that he has plans to go on a long term investment, and he will see the little profit as something big to him, which might make him sell his investment thinking that it will be easy for him to buy back, killing his long term investing goal. This is why we need to set a bitcoin target to help us achieve our long term goal, by hodling and accumulating bitcoin using DCA method, and also lump sum when we have the opportunity to buy at the dip.
Starting a long-term investment in bitcoin necessitates a determination not to be swayed by market volatility, whether in your favour or against it. During this long-term holding, an unprepared person must be prepared so that the market's volatility does not influence their initial decision to keep bitcoin for the long term. During the holding process, they will experience more market downtrends than uptrends because uptrends typically occur during a bull run and last only a short period of time, whereas downtrends occur on a regular basis as a result of market changes, corrections, and global news affecting the bitcoin market.
this makes a lot of sense to me and I guess part of the issue I was having with relation to How long is actually long enough to term it Holding is based on the fact that I'm a new investor that doesn't have enough holding and so a little profit in the short term tend to trigger me to wanting to sell it off since there are pressing needs that sometimes makes me feel like if I take back my investment whenever a little profit tops it up, I could use it to solve certain issues and then buy again and Hodl.
Have you heard or come across the following statement: 1BTC=1BTC until you take a portion of it and spend it, after which it no longer is. Planning to make a long-term investment in bitcoin involves planning and how you spend your financial earnings. If you do not plan ahead of time, you will always return to this bitcoin investment to withdraw funds and resolve your financial problems. Long-term bitcoin investment does not require you to invest an exact percentage of your income every week, biweekly, or even monthly. Only save what you will not need in the long run and can sacrifice in order to keep it in bitcoin.
But as we've continued to learn from this thread, it's becoming glaringly clear that the most profitable means of investment into bitcoin is a long-term investment and that the DCA strategy is a great toll to enabling enabling us accumulate more bitcoin at our convenience even when our financial strength isn't all that strong.
What distinguishes DCA method of accumulating bitcoin from others is the fact that it can be used by any kind of person depending on your financial status. It bridges the gap between low income earner and the high income earners to all be investors of bitcoin. While DCAing, it won’t stop you from lump summing when the opportunity comes for you to do so.