Post
Topic
Board Speculation
Merits 1 from 1 user
Re: Buy the DIP, and HODL!
by
I_Anime
on 11/02/2024, 19:49:37 UTC
⭐ Merited by JayJuanGee (1)
In collecting Bitcoin, everyone has a different strategy, there are those who buy it all at once whatever the price when they buy it and there are those who use the DCA method by collecting consistently according to the date they have set, but in both cases there are advantages and disadvantages too because if we buy At the same time, whatever the price at the time of purchase, of course we have to prepare a lot of money and we have to be able to hold it for a long period of time to be able to make a profit and if we use the DCA method, of course we have to buy it every date we have set and it will be very difficult if we don't have a fixed income.
Yes, that's right, when someone wants to invest in bitcoin, there are definitely many ways to buy it. Starting from lump sum purchases (Lumsump), to periodic purchases (DCA). So basically there is no need to be confused about this. Because the main purpose of purchasing bitcoin is of course to add to your portfolio. So whatever purchasing method you choose, the results will definitely not be much different. Moreover, if the aim of buying Bitcoin is to use it as a long-term investment, in my opinion if you want to use the Lumsump or DCA technique the results will definitely be the same.


I totally disagree with you here, purchasing Bitcoin through the lumsump strategy and the DCA method can never give the same results, the lumsump strategy is way more profitable because you are only buying the dip and hold, which means you can get a very large amount of Bitcoin at a very cheap rate, compared to DCA that you can even buy at an expensive rate most times. what makes the DCA method special is that as an investor that don't have much capital, you are able to buy at your own comfort bit by bit, monthly or weekly and you don't have to wait for the deep for you to buy, because most times that deep you are actually waiting for my not come again, since no body knows the lowest possible deep this time around, so it's mainly good at accumulating large amount of Bitcoin over time.
I think what he is trying to say is that those who buy with lump sum and those who buy with DCA will end up making profit in their investments on the long term. What really matters is the size of investment at the end of the day. He is not say that they will have the same level of profit from their various investments. But it's also very possible that the person buying through DCA might end up making more profit. Bitcoin might dip more than the price you bought with your lump sum and remain there for many years while the person that is buying through DCA is continually buying before you know it he/she has acquired more bitcoin than your lump sum at different prices, some even cheaper than your lump sum buy entry point.
To me exercising both is kinda the best. You know  as a Investor you got to be flexible, using the lumsump strategies you can focus buying the dip and all that what if in a scenario you thought that market would undergo a certain correction (dip)  before you buy. And at the end it endup not meeting your expectations (increase without undergoing that dip) you will only endup missing out. So I will keep saying if you are the type who only focus on buying the dip always try and also use DCAing to accumulate more quantities during so you would endup with better profit. And this the period we should focus on DCAing because we know that bitcoin gonna under go a new break through soon and there's time to accumulate more bitcoin in your portfolio.

And please DCA is not for only those who don't have much funds to invest, they are alot of early investors out there who are still using DCA method to accumulate more bitcoin. Because it would give them the opportunity of buying at different prices making theit portfolio to be more mature and more profitable. So anyone can exercise DCA strategies. And by the way when you are more financially capable that when the DCA would be more effective