Re: Buy the DIP, and HODL!

The DCA method is really good no doubt but we can't really say is the best and most profitable way to Bitcoin investment rather it can be seen as the best for those who uses that method of accumulating Bitcoin do you think those great investors actually use the DCA method now? And even if they use it I am pretty sure that it will only be few of them if at all they use it any method one chooses is best for the person not for everybody perhaps you can say is the cheapest or easiest way to go about Bitcoin investment.

I would like to know th category of investors that you refer to as great investors.

I’ll agree with you however not on the term that the DCA method to building a Bitcoin portfolio isn’t the best but, the idea that the best form of investing is subjective to individual investors. I’ll give you 2 instances but before that, let me remind you that, Bitcoin is very volatile and extremely difficult to predict on its price movement.
With that on your mind, let’s get to the instances

Whale investors don’t need no prediction on what price they might buy in at, although, a couple of them do look at the charts but, it’s not always necessarily the dip. They understand the concept of hodling and they eventually does hold, not minding what’s going on in the market because, they know it would rise.

Small and inexperienced investors often don’t know how to go about predicting the market and even when they get the hang of it, they tend to wait too long to invest because, you don’t get to nail the dip accurately and that could lead to loss opportunities.

DCA ensures you’re not making no mistakes or procrastination, you don’t get to predict the price and no opportunity is lost. All you need is patience and some other stream of income to support your hodling and add to your portfolio using DCA.

Not sure the category he has in mind but he may be referring to whale investors or lump sum investors as great investors because of how much money they are capable on investing at once. The amount of money you invest doesn’t make a person great investor, every individual has different limits of how much they can invest at an instant which is not measured by the amount they earn. DCA strategy is very effective strategy utilized by various kinds of investors, yes most whale investors are not bothered about the price especially when they plan to hold for a long time. In addition to enabling investing with as little money as possible, the DCA strategy minimises opportunity loss by exposing you to a variety of market opportunities on a regular basis. It also lowers volatility risk, lessens emotional distress, and builds investor discipline.

These benefits are not limited to certain kinds of investors, both whale investors and small inexperienced investors are entitled to these benefits so you can see that DCA strategy can be effective for any kind of investor. Although every individual is entitled to choose an investment strategy that suits them better.

Usually whales are going to have more options than normies, yet even whales might sometimes end up tying up their money in various kinds of ways to limit their options or to limit the feasibility of some options as compared with other options.. which sometimes the lack of options is merely a temporary condition and other times it may well be a condition that lasts for a long time, such as with a poor person who is barely scrambling to put together $10 per week to be able to invest into bitcoin. It could take the poor person many years, maybe even 10 years or longer to bujild his own financial (and psychological) situation up to such levels that he ends up recognizing that he has more options besides just DCA... and just because poor people might ONLY have DCA as an option, that still does not mean that DCA is any kind of an inferior option, even though surely there are trade offs, even with DCA that a person who has other options may or may not end up choosing DCA over other options (when talking about accumulation we would mean buying on dips and/or lump sum buying to be the other buying/accumulating options) that he considers that might be preferred to his own then circumstances.

You are absolutely right i got it wrong after making the statement “everyone is entitled to choose an investment strategy that suits them best”. DCA have actually proven to be the an effective strategy not just for those who have limited options but also for people who has other options and have extra money to spare no matter the strategy they adopt. Those set of people may still end up adopting the DCA strategy but only with more money so it’s now clear that DCA strategy is not in any way inferior to other related accumulating strategies.

Quote from: DubemIfedigbo001 on Today at 05:07:18 AM

Quote from: Roseline492 on August 01, 2024, 11:24:59 AM

Why do I get the feeling that you only see DCA strategy to be only use by people who only have smaller amounts of funds, on the contrary it can also be use by anybody including the rich because DCA strategy doesn't limit people from accumulating with a certain amount because you can accumulate using any amounts of money you can afford, so of course both the poor, rich and successful investors uses DCA, perhaps it seems you draw your conclusion through the several discussions that was talking about accumulating with a smaller amounts, actually those advice was only for those who barely have enough money or source of income but in the case of those that are wealthy they can possibly use any amounts whether big or small so long as they keep up there regular accumulation they are okay.

Just like the saying goes, all fingers are not equal and your entire savings can be someone's weekly expenditure. Every investor buys at their own capacity. What Mr A might call lump sum might be Mr. B's periodic purchase.

So the deal is to buy at your capacity and reach your accumulation target, as long as there's still enough BTC supply to continue buying, the high capacity investor and low capacity investor are all doing a great job in their accumulation journeys as long as there's consistency.

Why do people see DCA strategy to be inferior to other strategies and think it is sonly used by small investors who don’t have much money to invest, the strategy is very effective and can be utilized by any investor wether rich or poor. Being a strategy that makes it possible for people to invest any amount doesn’t make it to be for certain set of people (poor or less earning people), some big investors or rich individuals might still end up choosing the DCA strategy over it’s multiple options the only difference when compared with normal investors will be the amount they invest at intervals

I could say that is the just the level of their mentality or some kind presumption but however, we are all here to learn from each other and at some point different people tend to to learn a particular thing in different pacing both new and old users, indeed the DCA strategy of accumulating Bitcoin are multifunctional strategy such that any one can in terms with it with different reasons all together in order to achieve a successful investment.