Post
Topic
Board Speculation
Re: Buy the DIP, and HODL!
by
Smilevictorobinna
on 27/05/2024, 23:38:11 UTC
[edited out]
Exactly... its pointless waiting to observe market for what?? Better chance they say which might even be a forever loop  Cheesy
Bitcoin  waits for nobody... observing can also be used but that should be for those already  in the game and nor even new to it , it could be taking as a factor to buying more Dips which is not bad but on the other hand, I don't know what a beginner who haven't invested a dime observe
DCA and DCA and more DCA  should be the main focus of a beginner .
Although, we can say a beginner wants to learn a proper way to DCA (more appropriate) Smiley

There is nothing wrong with engaging in techniques to improve DCA, which truly if someone is new to bitcoin, they might start with a certain weekly amount for their DCA, yet in the meantime, after several weeks, they could be figuring out various aspects of their budget and maybe how to employ their DCA better.  On a personal level, for the first year that I was in bitcoin, I tended to give myself a weekly DCA budget (or allowance), so during the week, I would try to maximize the buying on dips within the week, however, if I had not used all of the weekly allowance by a certain time of the week, I would just buy with the rest of it at that deadline time in each week, since my new weekly allowance would become available at the beginning of the next week... but yeah sometimes going through the process, with the passage of time, I was able to figure out some ways of employing my DCA that worked better for my own circumstances... but also recalculating my situation, that surely went even beyond the first year, since the strategies became different with the passage of time (as you suggested might become the case for anyone going through their BTC accumulation journey) and the fact that I had been accumulating BTC through the previous time and the details of that prior stacking in regards to how much, what was the average costs and considering whether my stacking goals were changing and/or close to being met, helped to inform any changes in my practices.
DCA recognizes that we can't know what the price will be at any given time. If you lump sum buy on any given day, you don't know if the price will be higher or lower in a week. So maybe buy today and miss out on a better price a week later. With DCA you don't have to worry about trying to guess the best time to buy.

And with Bitcoin, since we have something that basically supercharges Bitcoin investing - the 4 year market cycle - by telling us what periods of every four years we should be buying, we can then use that to our advantage and greatly increase the returns of DCA. So we can DCA only during the lower part of each 4 year cycle, like buying starting once Bitcoin has crashed a lot, and then continuing to buy until it goes above the old ATH, and then wait for the next crash, saving money in the meantime to be able to DCA with extra funds on the next bear market. And with DCA, instead of guessing when to buy during a bear market , and many people would likely lump sum well before the bottom, or assume a lower price is going to come which never does and then they have to lump sum well after the bottom, DCA allows buying consistently all through the bottom.

DCA removes the risk of being wrong about when to lump sum buy, and of course it also means people don't have to save up a bunch of money first before buying. Lump sum buying is ONLY better if you happen to have a bunch of money at an ideal time (bear market) and you guess well enough where the bottom is to get near it.

Getting lucky is not an investment strategy. DCA is the superior investment strategy that decreases risk, can be used strategically with Bitcoin to increase profits over a generic DCA, and is more likely to beat out lump sum buying for many people because of that less risk and timing the market with luck (guessing) not being an important part of DCA.