Post
Topic
Board Speculation
Merits 2 from 1 user
Re: Buy the DIP, and HODL!
by
Samlucky O
on 26/03/2024, 03:50:24 UTC
⭐ Merited by DaNNy001 (2)
I left for a while to get ahead with some research concerning what DCA is all about, so basically it's all about splitting your capital into equal parts and investing then on intervals, so let's say I have 500$ to invest in bitcoin, I can just divide it into 4 parts which would be 125$ and invest them weekly,
No exactly what they mean. Because from your explanation you sound like dividing your income into 4 parts and be investing %25 every week, if that is what you mean you got it wrong. Investing I DCA can be quit different from people narrative, First of all you have to get a job which either pays you weekly or monthly if for example you get a weekly payments of about $100 just for example, you may decide to split it into 4  parts which may be 25 * 4 $25 for bitcoin Investment &25 for emergency $25 for reserved fund $25 for feeding and note my application might differ from your own you can as well invest as low as $10 in Bitcoin per week $20 for emergency $20 for reserved and $50 for feeding depending on how large your house hold may be . But if you are Alone you may decide to also invest $30 in Bitcoin per week and program the rest as it suites you. DCA strategy is just a strategy to accumulate btc per week by buying bitcoin in fraction or Little portion and also setting aside some other fund so that it will not affect your accumulated btc by selling it off when it's not yet time. And mind you in which ever way you decide to split your investment it doesn't matter what matters is how you can be able to maintain the system of accumulation continuously without having a thought of selling the btc, because the btc holding is the main Target 🎯 so selling it when it's not yet time is just like wasting your time.

and I learnt we do this to reduce the impact of market volatility on out investment.
According to what I have learnt so far the reason for DCA is to relieve or save yourself from the stress of not knowing when to buy, since bitcoin is volatile The practice changes at any given time so now the DCa help you to buy
Btc at any given time basically weekly. Sometimes you
May buy when the price is low and also by when the price is high. When you buy in some week it is low you are indirectly replenishing the lost value when you bought higher. So DCA is the best sofar in investment strategy it's a middle man between dip and HODL and lump-sum.