Post
Topic
Board Speculation
Merits 1 from 1 user
Re: Buy the DIP, and HODL!
by
Hewlet
on 16/07/2024, 06:06:20 UTC
⭐ Merited by JayJuanGee (1)
Yes we are not developers who have to know those complicated technicals, investors like us just need to learn the basics of a simple but relevant investment strategy for ourselves and it should be customized whether we are with DCA or buy dips on every dip it is important we have a plan for it.

Actually, bitcoin investment is easy with even small money we can do it, and indeed never delay investing while the price of bitcoin is still low, this is the best solution where we can start now, do not let when the price of bitcoin is high then say sorry.

Of course you have to have a plan, having it means we are ready to do it, but we also have to be able to see the risks that cannot be eliminated. There are many strategies that can be done and it depends on which one we want to do. One of them is DCA, which is probably done more by everyone because it is easy to do.
I want to correct one impression that you are making here that many people are utilizing the DCA method because it is easy to use. No that's not the case, rather many people are making use of DCA strategy because it is more effective way of investing in bitcoin as it reduces the impact on the capital invested should there be a sudden drop in the market. The DCA method makes the capital outlaw not to reduce drastically when there is a sudden decline in the bitcoin market. This is the more reason why many people are comfortable with using the DCA method of bitcoin investment, not because it is easy. Also the DCA method makes it easier for people to buy bitcoin at their own pace according to their financial level. The truth is there is no method of bitcoin investment that's difficult to use.
You're somehow beating around the bush and you're not making any difference in your assertion better than what @KeenanEl19 said. Generally, we all know that the reason why most people prefer the use of the DCA method is that it is Simple, convenient, effective, and also universal which means that both the rich and the poor can comfortably use that method.

That you can buy with as low as 5% to 10% of your income and it will still work well for you in the long run is the reason why people look at it as an easy method. If you even look at it from a broader point of view, regardless of how small or big your income is, the DCA method reduces the weight of investing too aggressively at a time and helps you to keep buying and you might not even notice you're Buying too much since for every time you buy, the amount that leaves your earning don't actually affect you that much and with time, you will observe that it's not almost part of your routine to spend that amount in buying Bitcoin.

Most newbies tend to have issues at the onset with using a big amount to buy Bitcoin when they do not know much about Bitcoin and you don't expect them to buy aggressively at that early stage even when the market is at a bear and any established investor would normally want to cease such moment, it's going to be easy for them if they are using the DCA method to keep buying with that small fraction of Their earnings until they've grown matured enough to take up some aggressive buys when the need arises.

One great way to make use of the DCA method most easily is to do something like this; let's say you're earning $500 a month and your monthly DCA amount is 10% of your earnings which is $50. The most practical thing to do is to conclude that you're only earning $450 and set all your spending plans to work comfortably with that $450. That way, it's easy for you to do a 5 to 10-year DCA and never feel a single disturbance along the way.