Post
Topic
Board Speculation
Re: Buy the DIP, and HODL!
by
Mayor of ogba
on 09/02/2024, 08:19:45 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.
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but the majority of So it means that DCA is the best strategy to use for portfolio diversification.
Mate, there is no need to diversify your portfolio if you have accumulated the amount of bitcoin that you want to accumulate. After you have achieved the amount of bitcoin you want to accumulate, you can diversify by starting a real-life business such as selling commodities or real estate so that you will have more sources of income that will take care of your financial needs and you can be able to hold your bitcoin portfolio until the year you wish to sell it.
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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 agree with you that trading and holding are two different things because trading has to do with buying bitcoin at a low price and selling it when the bitcoin price is high for a short-term profit. For instance, you can buy bitcoin when the price is $40k, and when the price rises to $43k, you can sell your bitcoin and take a little profit. Holding has to do with holding your bitcoin portfolio for the long term, even when the bitcoin price is increasing or decreasing. For instance, if you accumulate your bitcoin when the bitcoin price is at $40k and the bitcoin price rises to $50k, but you keep holding on to the expected year you want to sell your bitcoin.