Re: Buy the DIP, and HODL!

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.

Quote from: I_Anime on April 07, 2024, 10:16:54 PM

I'm pretty much aware that they are other nice strategy out There for accumulating bitcoin. But they all have their time ( depending on market conditions) . For instance you can't just keep waiting for the dip always before one should consider accumulating, So is better for to continue with his DCA purchasing , having some funds set aside (which known as reserved funds) to purchase the dip whenever any occurs. The other way of accumulating are also helpful when it comes to bitcoint accummulation, but being consistent with your DCA is just the best too, and also making use of the other strategy for instance, spreading out your reserved to purchase the dips ( or you can all in at once but still prefer spreading it), have some nice amount of money to spare as a normies you can go all in at once with the use of lump-summing strategy, depending on the market condition, So if you look at it we are clearly on same page here.

From what JayjuanGee thought me, that there are meaningful concepts and functionalities of various strategies hence, the idea of having a lump sum buying completely has nothing to do with market conditions. However, the idea of lump sum buying is having some amount of money that you are holding right now and you decided how much of that money that you are going to invest right now with that amount that is made available to you to use and buy right now whether there is a dip or not but rather it is much connected to your own personal decision regarding how much of that amount that is available right now that you would want to use and buy Bitcoin right now.
I don't think if the lump sum buying is subjected to any market conditions or buying when there is a dip or which ever way you may have but a sole decision of an investor irrespective of any forms of market conditions, and I think it is just a misconception of concepts, and also open for corrections if any.

Exactly, and troytech your point also nice . But the thing is that I made some mistake and I guessed the blame goes to my write-up. What I actually meant that the other strategy like buying the dip depends on market conditions. And imo I don't think that's there's any market conditions when it comes to DCA purchasing because we eventually buying at any price interval either when the price is high or low aslong we using it in accummulating bitcoin. But when it comes to lump-sum strategy, it depends on one cashflow. Like in a scenario when one have some extra money to spare he can use that money to run some lump-sum purchases, inorder to cover some lapses or give himself some boasts in his Bitcoin accumulating, adding some good quantities to his Bitcoin stashed while he kept on with his DCA strategy.

You know you don't really have to have an extra money before you lump sum, let's say you've been into other traditional asset and just discovered bitcoin and you wanted to have up to 30% of your total investment in bitcoin, then you decide to move that amount into bitcoin right away that is what a lump sum investment would be, so I doesn't necessarily need to be from an extra cash, I could be from your savings or some unexpected money, all that matters is your buying right away without any thinking about the market trend at that time, the only perk of doing this is that you have to continue buying with DCA unless volatility would really have impact on your portfolio, so as @Troytech said its good we compensate each strategy for each other based on their strengths and weakness, you can think about those that buy only on dips while it's not a bad strategy, it has a weakness of having to wait for dips so you won't be buying at any other time apart from dips and what if the dip yoir waiting for never comes, so things like this is the down side of waiting on dips, so the best approach for us beginners would be to use the DCA strategy as our main strategy while we use other strategies buying the dip and lump sum as other strategies to get more bitcoin on our portfolio.

Anticipating for the dip before buying is wrong, what if the dip never come as the expected price or what might happen holding fiat for so long, buying using the lump sum strategy is totally different from dca strategy. An investor can be expecting a huge amount of money maybe from an oil company or organisation etc and decide to dedicate everything into bitcoin without thinking twice is the lump sum strategy, buying with a huge amount at once. Using the lump sum to accumulate when the price is dip is a good idea. Lump sum strategy doesn't necessary need planning that's why newbies are adviced to use the dca strategy first cause of the planning process and learning. From my view in order to partake using the lump sum strategy one must be set to handle every needs without touching their investment likewise the dca strategy too.

I think the major reason why the DCA strategy is more advisable, it's because when it comes to financial ability almost everyone can actually afford to partake so far as the necessary requirements are met. The DCA strategy is a well effective method for those of us that don't have the financial strength to buy big like a whale and also it's enhances the discipline of the investor because it's something that must be done consistently and it's also saves the investors from any unnecessary needs to selloff their coins to settle bills because that and everything concerning the investment is well settled in the way that the money used or set aside for the consistent buying of Bitcoin is one that really don't much effect in terms of our other expenses.

The DCA strategy is important when it comes to bitcoin accumulation because many investors couldn't have invested in bitcoin if not for the DCA strategy. The DCA strategy allows investors to control their emotions and buy bitcoin at any time their DCA money is ready, and they can buy bitcoin even if the price is increasing or decreasing because they know they will be buying at different intervals. Sometimes the DCA strategy allows investors to accumulate bitcoin when bitcoin is in a dip, which would make investors not to be concerned about buying the bitcoin dip.