Post
Topic
Board Speculation
Merits 1 from 1 user
Re: Buy the DIP, and HODL!
by
justinlamode
on 08/04/2024, 16:16:12 UTC
⭐ Merited by JayJuanGee (1)
You seem too committed to the DCA method that you tend to have forgotten that there is another method of buying called buying the dips. There is nothing wrong with setting aside some funds to buy when price dips and when waiting,  using the DCA method to continue buying without stop and waiting for the dips to buy lump sum. This is a kind of combined method which is very effective. I think most experienced investors apply this method and I recommend the method for anyone who want to fully take advantage of different market conditions. 
What you said is true, but telling everyone to adopt the strategy is not the best thing to do. This strategy is mainly for rich investors who have enough money to take care of their unforeseen problems without thinking of selling their bitcoin portfolio. But if investors who are not rich are more concerned about buying the bitcoin dip and still accumulating bitcoin with the DCA strategy, they might not have enough money left to take care of their unforeseen problems, and they will have no choice but to sell their bitcoin portfolio to solve them and survive. This is where the DCA strategy will play a major role for those who do not have enough money to buy the bitcoin dip. If you are accumulating bitcoin with the DCA strategy, it will allow you to buy bitcoin even when bitcoin is at a dip.
What I understand by the comment is not telling everyone they must adopt that method but just explaining the method and also making recommendations which is normal and up to whoever is interested to either use it or leave it. Personally I find substance in that recommendation of using DCA method combined with buying the dips. I remembered when Bitcoin was hovering around $26,000 for several weeks before it fell to $20,000 and even continued below $20,000. An investor with $10,000 to be invested in Bitcoin can decided to keep like $3,000 for buying the dips while the balance of $7,000 is divided into several equal parts to be invested using the DCA method. What this mean is that a good portion of the DCA amount would have been converted to Bitcoin during the $26,000 range whereas during the dip below $20,000 $2,000 was bought and when it dipped below $18,000 the balance $1,000 was bought, this will result in overall increase in the amount of Bitcoin gotten from this approach far more than the quantity the DCA method would have given. Like many people already stated, this method is simple to apply and seems reasonable for all types of investors. Glad to be back to this discussion, so much information to learn from.