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Quote from: I_Anime on February 13, 2024, 03:16:33 PM

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Quote from: Ludmilla_rose1995 on February 11, 2024, 10:34:23 PM

The lump sump strategy that I know is very different from the buy the dip strategy, the lump sump strategy is where you buy all at once with all the capital you have but the buy the dip strategy is usually used by investors who only enter the market when the market is just bearish conditions

Let's get this right because it seems everyone seems to be advocating that the DCA method is the best. I know the methord is very popular and most people that might have practiced it in the past might have hard positive result from it but what about a situation that someone has enough money and monitors the price of bitcoin and when it gets bearish to a particular range of value he buys it and does that continually for the particular number of
year.

I know it might seem like the same thing that traders do but you're not monitoring the price for the purpose of trading when the price goes up but what you're just after is the most convinient price you're going to be buying whenever you want to buy.

To he honest as a investor would you keep to this, because you may endup not accumulating more bitcoin. Buying the dip and all that is great and nice strategies we all know that. But how often you sure you gonna keep buying the dip that means in a scenario like when bitcoin was still In $40k as an investor that have the mindset of always buying the dip only. so you would have to exercise patient till the price decrease to around $38k or below. But look now what is the present price of bitcoin is it below $40k nahhh bitcoin now is around $50k and before hitting that price it's didn't experience any dip below $40k. So as an newbie that haven't invested more in bitcoin and you always waiting for the dip, what would be your faith now if this $50k is just the beginning of the bullish run. Means that you've already missing out that is why is always advisable expecially for newbie to always exercise DCA strategies irrespective to your financial capability to avoid state of you missing out.

One thing that we should be aware of is that the level we once considered bitcoin as being too high in terms of price today will be the level we be praying and hoping for it to dip to. That's why whenever I see people say they I waiting for the dip I just smile and mind my business. Few weeks ago bitcoin was around $45k and many people considered it too high for them to buy. Within a little while bitcoin got to $50k and they started wishing for it to drop back to the $45k they once considered too high for them to buy. We saw $50k and they considered it too high and now we are on $52k and they will now be waiting for $50k again as dip. So what am saying is the high of bitcoin today that you are running away from might be the dip you will be waiting for tomorrow.

Better yet.. we had a period from about mid October to January in which we bitcoin went from about $27k to $49k, and we hardly had any dips greater than 10%.. and yeah even down to the ballpark of 10% were ONLY a couple of times, and so finally when we got a dip from $49k to $38.5k (in the ballpark of a 21% dip), there should have been plenty of buying at that point, and sure no problem if you hold a bit of extra fiat in case it might dip some more, but at the same time, you realize that you are running a risk that it might not dip more, and in the whole scheme of things, a 21% dip is pretty damned good.. and we already had it.

Sure, we might get some more dips from here, and we might even experience greater than 21% dips, but I would not count on it. and the ONLY way that anyone can somewhat relax in terms of buying more BTC at this point is if he has already bought and is already sufficiently stocked up, otherwise, it seems better to just continue to buy however much you are able to buy without overdoing it... and you have to figure out what is the difference between buying as much as you can without over doing it and overdoing it, especially since you will not really know if you over did it, until the emergency comes and you are not prepared financially and/or psychologically.