Post
Topic
Board Speculation
Merits 1 from 1 user
Re: Buy the DIP, and HODL!
by
teamsherry
on 27/02/2024, 22:15:13 UTC
⭐ Merited by JayJuanGee (1)
Your right about DCA , if anyone has been using DCA since last year till now, he would have been buying on a monthly average that is very low compared to the last ATH and we are expecting the price to reach 60k or even exceed the last ATH this week.

Actually as long as anyone has been consistently buying BTC, it would not matter what price he started at, even if they started at either of the 2021 tops. he is going to be in profits, unless he front-loaded too much at the top and then did not buy enough to bring down his average cost per BTC in the last 2-3 years.

Then I think over frond loading has its own side effects, let me say I front loaded now that the price is at 56k up to 50% increase of my normal allocation then the price starts going down to 20k and sits around that area for up to a year, and I ended up not buying enough bitcoin at those other lower prices to cover up my average buying price, then I think my front loading has a negative effect on me, but that's only if I stop my DCA buying cause I'm sure I would cover up and balance later, but for this example l would use a year buying average.

But if I front load at a lower price of 35k or 25 ealier, or let's say I did start my investment with a front load of that same percentage and the price later soares above up to 56k then my buying average would be lower and a little to my advantage.

All I want to understand is, is it advisable to front load at specific price that are lower than the last months ATH, let me explain it better,

Let's say last month all time high was about 40k, and it's all time low was about 35k or 20k, then it happens that in the next month the price falls a little lower than 40k tonabout 36k or 37k, do you feel that front loading on those kind of price changes would be a kind of good approach to reduce my average buying monthly cost even more.

I know well about the risk that the price could still go against you, and I should be ready for that.