Honestly, I don't think hodling is that important. I agree that it's a very simple and very profitable long-term strategy with Bitcoin. But people can treat Bitcoin as money, selling and buying all the time. It's also fine to treat it like savings, taking out a part when needed, not when a hodling period is over. And then there's indefinite hodling, normally explained by phrases like 'if you wait long enough, you won't have to sell your BTC'. But what does it mean? Using it directly and exchanging for goods? Taking loans based on wealth you have in BTC, like rich people in the US do with traditional assets? Never using your Bitcoin (then what's the point of having it)?
There are many questions that people need to find their individual answers to.
You sound like one of those BIG blocker hold overs from 2017.
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Risk can't be completely avoided but its impact can be
minimised mitigated. I have see from previous price chart of Bitcoin that risk can be lessened if your investment is spanned over a larger duration. For short term DCA nor Lump Sum is recommended.
There are mostly three BTC accumulation strategies, and for many folks they should not be all or nothing, especially if you are attempting to either mitigate volatility risk and/or to attempt to tailor your BTC accumulation to your own situation.
That is DCA, lump sum and buying on dips. Of course there is HODL, also even though it does not really help to accumulate but it might remind a person not to panic in terms of selling at the wrong times, especially if in a situation of running out of money while the BTC price keeps dipping.
Lump Sum is not a bad option. You just need to prepare yourself for this startegy and then invest when you think is best time to jump. DCA no doubt minimised the risk to greater level because you are continuously buying over a period of time and that gives you a good average price.
You can check my following post to see how much return DCA and Lump Sum
give would have had given you:
https://bitcointalk.org/index.php?topic=5479211.msg63392684#msg63392684.. As a reminder the comparison in your linked post is referring to past performance not future performance.
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That's true. risk will always be present in investing, regardless of the technique you use. However, as you pointed out, there are ways to reduce that risk, including lump sum investment and DCA. It's important, in my opinion, to keep in mind that everyone has a different level of risk tolerance; some people may feel more at ease with certain levels of risk, while others may wish to lessen it.
In any case, I think it's critical to take into account your personal risk profile. There is no one-size-fits-all approach to risk tolerance. Certain individuals are naturally more at ease with risk than others. It's also critical to consider your investment timeline. When investing for the long term, for instance, you could be more ready to take on more risk because you will have more time to make up for any short-term losses. However, you may want to prioritize risk minimization and exercise extra caution if you're investing for a short period of time.
Long time has greater potential to give compounding and exponential value growth benefits.... not guaranteed but surely within a reasonable realm of considerations... especially with something like bitcoin...
See
my recent post in which I attempt to point out bitcoin's historical compounding.
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People who have Hodled Bitcoin for the past 10 years I believe can confirm this, because there's no way they could've made any losses, except maybe their wallets were compromised or something, but if it's loosing funds to the market, I doubt it's possible. I stand to be corrected.
There are always ways to lose money and past performance is not a guarantee to future results, even though you are talking about anyone who mostly held their coins more than 5 years is in profits, and these days anyone who DCA's for any period of time (more than a month or two) would be in profits so long as they were consistently buying simiilar quantities of BTC at regular intervals over the whole period of time.. such as weekly.
Of course people are not necessarily consistent, so if some folks might have front loaded their investment at various times in 2021 when the BTC price is higher than now, then it would not be clear how much they would have had to continue to invest in DCA and perhaps other tactics in order to be profitable at today's BTC prices.