Re: HODL bitcoins, you can do it! Look at HODL camp map to build up strong hands
You have provided concise explanations of the advantages and disadvantages of lump-sum investment vs DCA. While lump-sum investment can be dangerous in unfavorable market situations, it can also result in large profits in favorable circumstances. By spreading out your investments across time with DCA, you lower your chance of losing money in the event of a market collapse. However, if the market takes off, you might pass on the chance to make a significant profit
When determining which strategy is ideal for you, I believe it's critical to take your long-term objectives and risk tolerance into account. It's also important to remember that DCA may be more practical for people who lack a sizable sum of money to invest all at once.
When determining which strategy is ideal for you, I believe it's critical to take your long-term objectives and risk tolerance into account. It's also important to remember that DCA may be more practical for people who lack a sizable sum of money to invest all at once.
I'd argue that DCA is the most practical way to invest for any kind of sum of money -- even if you're doing lumpsum now/today, you'll want to invest more in the future (who doesn't?). I don't think there's any case of any guy who says I'll invest $1 million in this asset today, we're done.
They're going to see it in a few years and grow it even more. Another lumpsum? Sure, then it essentially becomes DCA over time
It will be difficult to HODL if adequate plans are not made to prepare for emergencies. You cannot manage your BTC portfolio well if you inject all your cashflow into Bitcoin without setting aside some funds. People who do this are forced to sell their BTC when they do not plan to and even at low prices because they are in desperate need of funds.