Post
Topic
Board Speculation
Re: Buy the DIP, and HODL!
by
GbitG
on 22/02/2024, 20:33:56 UTC
~snip~
DCA is a strategy that people use to diversify their investments.
I disagree with you; the DCA strategy is never used in diversifying investments. The DCA is a strategy that is used to accumulate bitcoin at regular intervals, and it will also help to control the volatility of bitcoin in your bitcoin investment. Also, with the DCA strategy, an investor can use 10% or 20% of his salary, depending on the amount he or she receives weekly or monthly, to consistently accumulate bitcoin.
Yes, it is true that diversification is not done in DCA. While here I did not describe diversify in the sense of a diversify strategy, nor did I mean it. I said to explain the word Diversify. Here, diversify means to modify, which means to modify your investment over a certain time period in a target security on a regular basis like the individual distribution of their total investment, to reduce the price impact.