Post
Topic
Board Speculation
Merits 1 from 1 user
Re: Buy the DIP, and HODL!
by
Tmoonz
on 29/03/2024, 09:29:53 UTC
⭐ Merited by JayJuanGee (1)
Since we are always buying through DCA, it will be difficult to always determine our entry point. For me the holding period is the main priority in this case. It will be foolishness for me that doesn't have up to one bitcoin to compare my profitability with someone who have up to one bitcoin or more. But if someone who has up to a bitcoin sell of early and I continue holding my bitcoin for many years, there is every possibility that my profit will get to his level when he sold of or more, because we don't know the amount that bitcoin will get to in the future.

Actually an investor who is slowly coming up using DCA method to accumulate Bitcoin shouldn't compare themselves or trying to compete with those that has already started investing on Bitcoin for long because always trying to get an amount of investment other investors have could lead to aggressive investment were as you will put everything you have just to remain on the competitive trends, although there is no harm trying to accumulate as many Bitcoin as you can but trying to compete or reach out to other people amount of investment is not wise because it could lead to aggressive investment which could sometimes cause by fear of losing out, so perhaps in as much as DCA method takes a while before getting a reasonable amount of Bitcoin but is actually the best and you would be surprised with the amount of Bitcoin you will realize from ten years and above.



In as much attempting to compete with others can be a wrong approach, it is pretty ok being aggressive it is only bad when you are being overly aggressive without considering how much of your discretional or disposable income you have where your basic needs, emergency, reserved and float will be affected trying to become overly aggressive. You can can become aggressive if proper financial planning has been done as regards to ensuring that your basic needs, emergency, reserved and float funds are all taken care of.


Irrespective of the fact that the DCA has enormous benefits it could be misleading saying that dca is the best whereas there are other strategies too that has its own unique functionality, it will be pointless making comparison which is the best. However every investor must tailor down which ever strategy that will suits his or her investment where and when necessary in terms of:

    1. Financial situation
    
   2. Investment goals and objectives

   3. Risk tolerance level

Hence, what is more important is how much of Bitcoin you have and your ability to hodl as long as possible.