Well, if you think that buying at a dip is trading, then I suggest you get involved properly in trading for a while and come back to investment after, so that you can be able to differentiate between trading and investment by buying Bitcoin during the dip or making use of DCA strategies.
Buying the dip is not related to trading at all because there could be other dip in markets under trading and normally a trader is meant to sell to make profit when there're dip in markets...
However, coming to the world of BTC buying the DIP is a good strategy for buying more BTC with lesser funds although this same strategy could be used by traders too since btc has always been in an uptrend buying a dip with strong capital could be a choice but most trader wouldn't want to risk that...
What I'm I trying to prove
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For me I see buying only when the market is DIP as trading.
This statement is wrong IMO .... but the strategy is not a suitable strategy for beginners when we emphasize on the word ONLY.The difference with the DCA method of buying dips is because, with DCA, you can buy at every given opportunity (whether Bitcoin is high or not), ones you have the money. But as you are using the DCAing strategy to invest in Bitcoin, then you eventually meet Bitcoin at dip time you should be able to grab that opportunity and buy as much as you can.
A trader can start trading during the dip but won't have the patience to hold the Bitcoin he bought because he's not an investor of Bitcoin but a trader. I advise anyone that's ready to make an investment in Bitcoin to use the DCAing strategy, because regardless of the price of Bitcoin, one can still invest any amount they want and can achieve what they want if they always DCA as planned from their portfolio (just like I have said earlier). When you are buying Bitcoin at the dip, you won't be given the opportunity to buy it always because, as Bitcoin's price is fluctuating, sometimes it goes up, and sometimes it comes down, but using the DCAing strategy allows you to buy even when Bitcoin is up or down in price.
I don't actually think it's proper to be mentioning trading in this thread, because I believe that this thread is meant for Bitcoin investment only, so I suggest you take your trading discussion to the right place.
And as for Bitcoin investment and accumulating process, I believe that the DCA accumulating strategy is the best among them all, because you will buy in your own convenient, either weekly, monthly, and what makes it very special is that you can also buy the deepest part of the deep, which the person relying on lump sum method might miss out due to the fact that he thought the price of Bitcoin will go deeper, and as long as you are a long term holder, which have accumulated a very good stash of Bitcoin, you are definitely going to be successful in your investment.
I believe in terms of methodology to accumulate Bitcoin we can't really tell wether one using DCA will be more aggressive in accumulation than another using lump sum. DCA opens room to buy at every market situation but having a good stash of it depends on how each individual accumulate wether aggressively or conservatively.
The DCA method might look simple for beginners in Bitcoin investment, but what makes it harder for beginners is that they have to get a good source of income and some reasonable amount of money for emergency cases. With all this, a beginner can do a good process of accumulating Bitcoin in the long run.
Some of the easiest ways to apply the DCA method is when you are more disciplined in a way that if you don't buy the specific amount that you always buy, you will be worried. It's better to be quite addicted to Bitcoin investment. I haven't seen anyone, but I am quite sure that there are a few investors that are somehow addicted to their Bitcoin accumulation process in a way that if they didn't DCA in Bitcoin with the money they have, they would feel remorse about it, and next time they double the amount if they had the money.
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One disadvantage of lump sum is that when you have the bulk money to buy and you bought at a certain price level, after buying and bitcoin price dips, your portfolio will be in loss until Bitcoin price rise above your entry point. This is why the best method of buying for beginners is DCA, because it gives you the chance to buy bitcoin at different price level. Lump sum is good for those who have accumulated up 50% and above of their bitcoin target, and it is more beneficial when you lump sum at the dip, which I believe that is what most investors who are no longer on their accumulations stage but in a maintenance stage are doing.
If a beginner buys Bitcoin a lump sum at this point in time, Bitcoin is @$71k, then some few days after Bitcoin hits back to @$68k, the beginner will be at a loss and the beginner won't be able to buy again because, from my opinion, before the beginner uses the lump sum method to Bitcoin It's either he's not getting money daily weekly or monthly, or he's not aware, and he doesn't have the knowledge of DCA strategies. So, if Bitcoin has been reduced to $68k when he bought it at $71k, he won't buy again until he has the money to buy, or he have good profits as expected from his investment. The DCA method gives both beginners and old-timers in the Bitcoin space more and more privilege to accumulate Bitcoin even though Bitcoin is high or low, DCA method is a method that allows us to continue buying more Bitcoin ones the time we planned reached, it's just like setting a specific amount that can be saved for you automatically ones the date and time reached, but since this is a decentralized currency, we have to deposit it by ourselves by using DCA method to buy and store in a decentralized wallet for safe keeping. Quote
JJG have given so many thesis with examples on how an investor using DCA strategy will accumulate more bitcoin than an investor using lump sum in a given period of time.
I have seen more of them from his post. However this is a good thread that can make us all to know how and what methods we can use to accumulate the amount of bitcoin we have budgeted already.