Rightly said, every investor (Both Bitcoin as well as other assets) needs both knowledge and patience. It's not enough to just buy Bitcoin and hope for the best, you need to understand the market and the technology behind it because if you're not fully equipped with the knowledge you need to make certain decisions, you'll be exposed to lots of dangers that is capable of negatively impacting your investment and you might end up making wrong decisions and putting your investment in jeopardy.
And you're also right that the key to success is often HODLing for the long term, rather than trying to time the market or make quick profits and it takes a great deal of patience to HODL. This is a lesson that many new Bitcoin investors learn the hard way.
Right now everyone is happy with Bitcoin price as its going up (52k$ as I am writing). But not everyday is Sunday, there can be times when Bitcoin goes bearish and it can last for months. What should be the strategy during that bearish season and what to do when Bitcoin goes bullish? These are all questions one has to address when investing in Bitcoin. One can answer these questions only if he has sound knowledge about Bitcoin.
Also one don't need to study books or go for extensive study to understand Bitcoin. There are very simple scenarios out there that tells how Bitcoin has behaved over a period of time. Based on these scenarios one can easily define his future strategy.
One scenario is JayJuanGee 6 different Hypo's that gives idea of accumulating Bitcoin for 5 to 10 years in DCA manner.
https://bitcointalk.org/index.php?topic=5132720.msg63394117#msg63394117Mate, you raise a very good point. In fact, one of the most popular pieces of advise offered to novice Bitcoin investors is to wait for a bear market and purchase at lower prices rather than making a purchase during a bull market. This is due to the fact that Bitcoin prices frequently rise sharply during bull markets before plunging once again during bear markets. Of course, timing the market isn't always simple, and there's no assurance that the price will rise again following a collapse.
However, this method may have a flaw in that it takes a lot of patience. The price of Bitcoin might decline for several months or even years in a bear market. So, this might not be a good choice for those trying to make a quick profit. It's also important to remember that not everyone who obtains Bitcoin does so with the intention of investing in it; some use it for other things, like making purchases or sending money internationally. Therefore, while waiting for a bear market can make sense for some people, it might not be the best course of action for others.
I just added a link to the above linked post, since yesterday -
in this post, I clarified Hypos 1-6 and added scenarios for Hypos 7-15 (which largely bring down the timeline with Hypos 7-9 as 2.5 years, Hypos 10-12 as 1.25 years and Hypos 13-15 as newbie status.
Even though the overall theme is to attempt to show both how the difference of time can play out, but also how the difference in wealth at the time of getting started with bitcoin, I realize that some of the information might be a bit too confusing for some people to follow, so I may go back through the Hypos from time to time to try to edit and clarify the presentation of the contents.
You are correct that they all use DCA, but also ONLY the wealthiest incorporates both lump sum and DCA, since he can.. the others are exclusively DCA. The wealthiest who starts out with both DCA and lump sum is reflected in Hypos 1, 4, 7, 10 & 13. The medium only does DCA is reflected in Hypos 2, 5, 8, 11 & 14. The poorest only does DCA is reflected in Hypos 3, 6, 9, 12 & 15.
I appreciate the effort you've put by taking the time to clarify this. It can be tricky to present complex information in a way that's understandable and easy to follow. I appreciate you also taking the time to go back to edit the Hypos, and I think your approach of separating them into three different categories based on the wealth of the person is really helpful. Could you tell me more about why you chose to include lump sum and DCA strategies in the wealthy category, and only DCA in the other?
Not just me, I believe some other persons would be curious to know.