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I like how detailed and voluminous your explanations are, however Bitcoin is a broad subject that we keep making improvements in different intervals of our investments and I know that 4 years is not enough to have a complete understanding about bitcoin but I was actually referring to a newbie who just started the accumulating process because within an interval of four years they should have had a literal knowledge about the right strategy to follow in every stage of their accumulating process and just like you said within 4 years interval it is expected that they should know how to manage their cash flows and how to split it in order to apply each strategy when the needs arises. Actually anyone who have made accumulations within just four years should not see themselves that they have arrived as within that interval is just like a road map that will lead to the profits making in the long time. At least before any investor can see themselves to have some stash of bitcoin should be from 10 years depending on the DCA amount that's for someone still very consistent in the strategy.
About lump summing opportunities, sure it can come at the early stage of one's investment but you can agree with me that someone who is new to Bitcoin investment may not have the idea of lump summing yet even when they have some reserved funds but within the periods of their investments, they can be understanding the activities of the market and see a need for lump summing during DIPs because at the beginning they may just have a literal understanding. We should not forget that lump summing at a DIP price also gives us more advantage to owning a huge portfolio especially in a very drastic DIP such that an investor can even decide to buy huge amount of Bitcoins at that point and continue with the DCA later on. However, the idea of lump summing always comes along the line when using the DCA because a beginner may not really have the idea at that early period of time except someone that just want to go all in their Bitcoin investment without considering the DCA.
You are using the term lump summing differently from me.
From my point of view, saving extra money to buy the dip may or may not be a good strategy, and from my point of view that is not lump summing... that is buying the dip. .there is no reason to call it lump summing merely because you are saving extra money for such buying the dip opportunities, which again may or may not be a good idea... especially for beginners who likely need to focus on stacking BTC without trying to guess about when dips might or might not come.. but sure you can do what you like in terms of holding back money to buy dips that may or may not pay off better than merely just ongoingly buying in a DCA kind of style.
There are already quite a few guys here who are coming around to understanding lump sum buying is different from buying the dip, and including that we either might come across extra money when we start to invest, or we might come accross extra money for a variety of reasons.. such as bonuses from work, inheritance, win the lottery, rearrange finances and realize that you hae more money than you thought that can be used for buying bitcoin.
If you are combining the idea of lump summing and buying the dip, you may well not know what one or the other of those is since you are not able to distinguish them.
The same is true in terms of understanding the tradeoffs involved in regards to engaging in strict DCA versus holding some money aside for buying the dip.
I am not saying not to hold money aside, but likely there is hardly any need to hold extra money aside, especially in the first few years that you might be buying BTC, especially if you are ONLY buying through DCA and you might not be front loading your investment or lump summning from the start, so guys who might lump sum or front load from the start, may well find justification to also hold some cash aside for buying the dip and/or DCA'ing... I feel that I am repeating myself with these ideas so many times described why folks might supplement early lump summing and front loading with buying the dip and DCA but it may well might not be worth it to be saving money to buy the dip for those who are engaging in regular DCAing rather than those who front load their BTC investment.. need I give an example? of some one who might DCA $100 per week, but then if that person has $6k to invest right away, maybe that person invests $3k into bitcoin in a lump sum kind of way and then splits the other $3k into 50% buying the dip and 50% DCA..
The difference between lump summing and buying the dip is significant. Saving extra money to buy the dip is best described as buying the dip or timing the market, buying the dip involves seizing the opportunities when prices drop, lump summing is more about investing a larger sum of money at once. For beginners focusing on consistent DCA investing might be a safer and more straightforward approach without trying to time the market if someone is already investing through regular DCA, holding extra money aside might not be necessary especially in their early years. However, having the freedom to take advantage of lump sum opportunities can be beneficial if extra funds become available, whether through bonuses, inheritance, or other sources. It's essential to understand the tradeoffs between sticking to a strict DCA strategy versus setting money aside for potential dip opportunities. While holding extra cash for buying the dip can be interesting, especially for those starting with lump sums or front loading, it might not be as necessary for those consistently DCAing.