Post
Topic
Board Speculation
Re: Buy the DIP, and HODL!
by
Troytech
on 23/03/2024, 23:52:34 UTC
for Bitcoin holding and the long-term investment it is actually occur by Plan and if you don't have that mentality of long-term holding your Bitcoin to will not be opportunity to make such profit that you are anticipating for that is why a good investor at first scrutinize the market structure before the person goes into investment to know if the market will be productive for each self any investor of Bitcoin always calculate very well knowing that there is two things that is involved in long term investment especially when you are holding your Bitcoin for each to appreciate you before you sell and they make a profit.
For those who want to collect Bitcoin and survive for the long term, of course they must be able to have planning and capital that will not be used for needs in the near future, because when someone is forced to invest with the capital they have, they will not be able to survive for long and must sell at a loss and for investors who hold for a long period of time of course they must make thorough preparations to be able to hold for a long period of time to be able to look forward to profits from holding Bitcoin.
If an investor has financial problems then he will follow DCA method.
I do not agree with you that the DCA method is for investors who have financial problems. The DCA method can be used by anyone irrespective of the financial level and I think it is wrong to refer to the DCA method as something meant for the poor. Anyone in financial crisis cannot even make proper investment in bitcoin because his finances are not enough and he will not even be able to setup emergency funds that is required to protect the investment from being liquidated when it is not expected due to emergencies. Anyone going through financial crisis ought to first look for other means of solving the financial problems before considering investing bitcoin.

DCA strategy is mainly suitable for those investors who cannot invest large amounts at once. When an investor follows DCA then that investor will not have the problem of financial stress.
This is totally wrong and makes me wonder if you are talking about the DCA method or something else. There is no limit to the amount that can be used for DCA. Any income class can use the DCA method as it is convenient for both huge buys and small buys. If I have $10k set aside for investment in bitcoin and I noticed that buying at once may not give me the results I want, I can decide to make the investment in different segments and times through the DCA method. Assuming bitcoin is in a range and I do not know where the breakout will happen, the DCA method can be used to buy such that if the price drops, I buy more at lower prices and if it rises those I bought at the range will compensate for those I will be buying at higher prices. Many big investors uses this pattern to make best use of the buying process.


I think the whole confusion here is originating from a lack of understanding of how the DCA works or why its preferd to be used. The DCA method involves splitting your capital into equal parts and investing them on intervals, now for those that are confused why we used this strategy, among many other reasons most persons prefer DCA strategy cause it reduces the impact of market volatility on your portfolio, when investing in an asset as volatile as bitcoin such a strategy would stand out amongst many other good strategy cause its best fit the accumulation of Bitcoin.

The amount that can be allocated to the DCA is not fixed to any amount and both rich and poor can use it based on their disposable income and the ability of their income, a rich guy with a disposable weekly income of 1000$ can chose to invest 25% of this to bitcoin and a poor guy with 100$ can chose to invest 10% to bitcoin and both are practicing DCA method.