Post
Topic
Board Speculation
Re: Buy Buy Buy or Sell Sell Sell?
by
Sim_card
on 03/06/2024, 19:06:31 UTC
[edited out]
The thing you need to keep in mind is that the context of shitcoin is completely different than bitcoin because most shitcoins are short-term formulas that are highly likely to depreciate over time. DCA strategy is basically a formula specially made for Bitcoin which gradually decreases with the increase in size of stash of Bitcoin by accumulating over time and at the last moment you will see in your reflection buying dips which your profit amount is high. When it comes to investing, you should keep in mind which shitcoin you choose and start and withdraw your investment at the right time. It may not be easy for you to be perfect in your selection process so you may put yourself at more risk. But in the case of Bitcoin, only consistent and uninterrupted deposits are recommended for a long time. Accumulating bitcoins consistently over a long period of time is likely to yield higher profits in the future.

DCA is not "specifically made for bitcoin," yet there are several ways in which DCA works as a good strategy for bitcoin, including both bitcoin's volatility and the expectation that with the passage of time it is likely to trend upwardly in terms of its price..  Of course, since there are not any guarantees in regards to bitcoin's future prices, we are still largely playing probabilities that bitcoin is going to continue to be a good investment in terms of generally trending up and if not so at least we can regulate our own exposure in terms of how we invest into bitcoin over time using something like DCA.

Part of the problems in terms of suggesting DCA applies to crypto or shitcoins is to presume similar kinds of qualities in the shitcoins in terms of generally trending up, and sure the various shitcoin investors could still use DCA to invest into crypto and/or various shitcoins, but they also either have to do some additional analysis regarding their beliefs of the strength of such coins and/or they may well be using DCA in a trading sense to establish a position and to sell the position, and so DCA can still be used with various shitcoins, yet several of the presumptions are likely going to be different in terms of likely having higher needs with shitcoins to time the ins and the outs... and with bitcoin, and any other investment that seems to have decently strong fundamentals, there are fewer needs to time the ins and the outs because there is an ongoing presumption that there prices/values are going to continue to trend upwardly.. .even though even the amount of the Upward trend would not be strongly understood to be known or knowable.
I agree with you, because DCA method is used for piling up for a purpose, because one might not have that big amount to buy start up the size of our dream investment, but with DCA you can achieve such goal by gradual saving constantly every week and it is always done consecutively. And that is why I was able to understand it fast the first time I joined the forum as a newbie, because I am use to saving a certain amount of my salary when I get paid, and that is how I was able to achieve some valuables that I have now. Like you said it is best done with bitcoin because that is when you achieve its uniqueness due to the compounding profit of bitcoin and the presumption that the odds of the price increasing overtime is high.

But one thing that causes DCA abuse is when you do in a short term investment, it is like you don't want to see your profit big or you don't have bigger plans for something bigger in future and that is why if you DCA on trading, if you sell, you might still regret when bitcoin price pumps higher, or for shitcoin that might end up not lasting in the market.