Post
Topic
Board Speculation
Re: Buy the DIP, and HODL!
by
GbitG
on 08/02/2024, 21:11:12 UTC
Holding is obviously not the same as investing using DCA methods, it's even better to compare holding to trading because that's where people normally make mistake from but comparing holding to the DCA methods of bitcoin accumulation is just same as saying that winning the world cup is just same as participating in the world cup tournament.
Trading and DCA has nothing in common DCA is a process used in accumulating bitcoin and most of the people who use DCA process are those who want to buy and hold for long time so I don’t see anything wrong with saying DCA has something to do with bitcoin holding. But for bitcoin trading you don’t need to follow DCA at all you just need to use the money you have at hand enter the market and start their trading losing or winning, so i don’t see any relation between DCAing and trading that’s a wrong connection if you ask me.
Hmm, that's true Mate! 
I agree with you that both are not parallel or common.
There are two different methods. I'll try to elobrate a little bit about DCA and trading/holding.
DCA is a crypto-tactical strategy that means Dollar Cost Averaging and is used to reduce the impact of price fluctuations as well as used to minimal the volatility of investors assets (portfolios).Besides that, there are also strategies like Lamp Sum, but the majority of crypto enthusiasts prefer DCA over Lamp Sum. So it means that DCA is the best strategy to use for portfolio diversification.

Trading and holding differ significantly from DCA. In Trading you need to learn the sentiment of the market. In the term of Technical analysis, after that, you can trade in it or hold it. So I mean, trading buddy needs a lot of effort. As it has to be seen from every perspective, it means technical analysis + fundamental analysis and specific time has to be given i.e., time entry has to be done when the market situation allows it. And if you lose, it cannot be recovered, despite the fact that in DCA, you have to put less effort into trading. That is, you have to consistently invest with less effort, and if you do lose, you can easily recover it on another diversification.