Post
Topic
Board Speculation
Merits 1 from 1 user
Re: Buy the DIP, and HODL!
by
Minor Miner
on 12/06/2024, 05:46:19 UTC
⭐ Merited by JayJuanGee (1)
I don't know if I am right but I feel that only the DCA method can be used to invest in bitcoin and build your bitcoin investment gradually, and at the same time build your emergency funds from the left over of your discretionary income for those new beginners who are not earning much and don't have bulk cash available to use in startingtheir bitcoin investment. This is why I love the DCA strategy but if it can be mixed with buying at the dip when you are prepared, you will get a better result.

The ONLY way that you get better results by mixing buying the dip with DCA is if the BTC price actually dips.  If the BTC price does not dip, then you do not get better results. There have been many times in bitcoin's price history that it did not dip further, so person's employing buy the dip in those circumstances may well not have had been better off than strictly employing DCA.

Part of the reason that DCA is so effective is not because it guarantees that you will have better costs per BTC and the fact is that you may well end up with higher costs per BTC by employing DCA - yet at the same time, you are able to figure out ways to be as aggressive as you can with your investment amount into BTC from your discretionary income - which is quite a good thing for no coiners or low coiners to strive to get a stake in bitcoin and not to preoccupy themselves with short term moves in BTC price.

But to be able to mix buying the dip with DCA we need more money, we must always have a fiat reserve available to buy bitcoin because no one knows when bitcoin will fall. And preparing additional capital can be a challenge for many people.I agree that this strategy will yield better results but it will be more complicated because it requires more capital and there will be risk if bitcoin does not fall further as you say.
So, I think we should be consistent and loyal to the DCA strategy to make our bitcoin accumulation easier and not make us more stressed because of bitcoin volatility.