These are different strategies in accumulating Bitcoin. Some investors use DCA strategy, others prefer buying the DIP strategy, while some DCA and also reserves funds to also buy during the DIP and some accumulate with lump-sum (Rich folks). All these approach are decisions made individually with what suits our bitcoin investment goals.
It is not only rich folks that buy bitcoin with the DCA strategy; even a newbie can start his bitcoin investment with a lump-sum strategy in some situations. For instance, if a newbie starts accumulating bitcoin late, he or she can decide to do a lump sum buy on bitcoin to accumulate a good quantity of stash before the bitcoin price is too high, and he or she will continue accumulating bitcoin with the DCA strategy.
If a new bitcoin investor has a lump sum of money it can be easy for him to accumulate more stash in a short period of time. Basically if you want to invest in Bitcoin and get more profit, you should buy a lump sum. In addition DCA strategy allows you to regularly accumulate bitcoins which is the bulk of disposable income. If your floating money is sufficient. You may find it difficult to get dips in terms of investment so you can start accumulating bitcoins through DCAing. For a long time.
For those who are new to bitcoin investing, I must say that before investing in bitcoins, you need to acquire enough knowledge about bitcoin.
A new beginner who wants to invest in bitcoin does not need to acquire enough knowledge before he starts investing. He should start right away as long has he has his money ready. The reason is the there is no time wasting in learning too much about bitcoin and use that to deprive your from starting your bitcoin journey right away. This is because you can be learning about bitcoin as you are accumulating and growing your bitcoin investment.
You are already late to bitcoin so why do you still want to delay the opportunity that you have to start and grow your portfolio overtime. Bitcoin knowledge is complex and cannot be learnt in one year, and since you are on a long term journey, you only need to know the basic which is how to buy and which wallet to use that is safe to store your bitcoin, and how to transfer your bitcoin to your self custody wallet, cold storage is the best. Whatever area of bitcoin that you are interested in, you can learn it with ease and not in a rush because your are accumulating continuously.
A new investor that has a good financial management and always save money in the bank or anywhere for a long time whenever he gets paid, will easily invest in bitcoin using DCA strategy by putting that amount of money that he is always saving into buying bitcoin regularly weekly or monthly consistently and persistently. For those new beginners who are not used to saving some part of their income, what they need is to make a proper calculation on how much of their discretionary income that they will use to buy bitcoin that will make them be able to invest regularly and increase their bitcoin portfolio overtime.
It's also important to remember that Bitcoin is still a relatively new and volatile asset class. As such, it's crucial for investors to diversify their portfolios and not put all their eggs in one basket.
It is not important to diversify your bitcoin portfolio into other assest that is not in the same line with bitcoin. It is a matter of choice by that investor. You should also note that a new beginner in his bitcoin journey or a low coiner should not think of diversifying and should only focus on one investment which is building his bitcoin portfolio to a certain level before he diversify if he chooses to do so. If in the early age of your bitcoin journey, you start diversifying, you will lose focus on which investment to focus on and that will lead to a poor outcome in the long run due to lack of proper planning before diversifying.