Quote from: Churchillvv on June 14, 2024, 04:13:32 AM

Quote from: JayJuanGee on June 13, 2024, 08:42:44 PM

[edited out]

Of course Tmoonz is right with his ideas but since we disagree to agree here I will like to buttress and point out so fact that must have amounted to confusion of the other party.

Let's say for instance: We've got three major strategies for bitcoin investment which is DCA, Buying the dips and Lump sum. I believe sometimes this strategies do have some collision which is where agbamoni might be getting is wrong but this collision literally doesn't show up frequently.

Here is the instance; Using my Churchillvv as the case study,

Point A Churchillvv(1) usually practice the DCA method of investing hence does not care what the price is (volatility) as his intention must be for long term investment.

Point B Churchillvv(2), Also practice the buy the dips and he does care what the price is and tries to maximise profit by buying only when the price is low.

Point C Churchillvv(3) Also practice the Limb sum method of buying bitcoin, at this point he does not also care what the price is but because there is an extra cash flow he decides to go in at once.

Having identify this three points, the rare collision happens where, Churchillvv usually buys the dips but for some reason during this purchase he gets an extra cash follow which is not certain then decides to push in all the extra cash into his bitcoin investment, note at this same point bitcoin price is relatively low which also means the dips. At this point where he buys both the dips and also buys bitcoin using his extra cash flow which is expect in this instance to be huge to buy bitcoin it is now in a state of collision as both strategies occurred at this same time. which I see as the area where Agbamoni might be looking at but the fact is they (the three strategies) are different things all together.

So to put you Agbamoni in the right direction, lump sum means buying bitcoin only when you have a huge amount and decide ms to invest regardless of the current bitcoin price. This practice is more applicable when you usually get your money once in a while. But buying the dips means even if you have the money now and BTC price is relatively high you would rather wait even if it takes 365 days to reach your relatively low price before you purchase. Note the time differences

You are not really wrong in anything you say.. and I think that the main point is attempting to understand that there are advantages in knowing the difference in order to potentially take advantage of the differences and attempt to figure out whether you might want to vary your own application based on the options that are available to you.

For example, if you already have a formula that you are going to spend a certain percentage of your newly incoming discretionary income (for example 33% of your newly incoming money is going to be spent on buying bitcoin right away, 33% is going to be set aside for buying dips and 33% is going to be set aside for float and/or reserves - presuming your emergency fund is already in place), then whether you receive higher amounts of money or not is not really going to make a difference because you already have a system that you are following (and yeah, you can also vary your system too in order to account for things happening with the price, the size of your BTC stash and other things going on in your life that also might relate to the 9 individual factors).

Many times folks like to juxtapose ideas of lump sum investing versus DCA, so yeah, you could be a brand new investor and you have $50k that is already saved up in various investments, so if you tell yourself that you want to have 15% of your investment portfolio invested into bitcoin, then that may well mean taking $7,500 from your other investments and investing it into bitcoin.. which surely might be a kind of lump sum investing. and then maybe you wait 1-2 years and then decide what you are going to do.

Some people are really in the practice of lump sum investing, so then frequently when they do it, they try to time their lump sum investment for a price dip, so they end up employing a kind of hybrid tactic, and maybe they are not realy interested in a DCA way of investing.. but they are timing their lump sum buys with attempts to buy dips.. which may or may not end up working out as well for them.. but if they might have a deadline for themselves that they are investing their lump sum within a certain period of time or under certain conditions, then that might be the way that they think about investing into bitcoin.

I frequently like to give examples of lump sum investments to be a way that a guy might invest into bitcoin, and that at the same time he supplements with DCA investing - so yeah in those kinds of cases we might imagine a person who receives bonuses or some somewhat surprise quantities of money 2-3 times a year, and with those extra amounts that come in, there can come opportunities for creativity that could include any of the three strategies in terms of how to treat those extra amounts, so maybe his regular DCA is right around $100 per week, but if he gets $3k 2 or 3 times per year, he may well have flexibility in terms of which category to put the money and if he adds to his DCA, maybe he creates a buying on dip fund (if he does not have any buying on dip fund in place) and maybe he also might decide to lump sum buy some BTC right away when that money comes in with a portion of it, whether it is 1/4 of it? or maybe 1/3 of it, or maybe 1/2 of it or maybe some other amount that makes sense after he assessed various aspects of his finances/psychology and his 9 factors.