Post
Topic
Board Speculation
Merits 1 from 1 user
Re: Buy the DIP, and HODL!
by
Sim_card
on 06/08/2024, 14:49:06 UTC
⭐ Merited by JayJuanGee (1)
Our most positive point is that there is a peak bull market in 2025 which we can currently experience, before reaching this bull market there will be a lot of shaking which is happening now. So the DCA method plays a different role to keep yourself on the right path. 

Because there have been several dumpings this season and the dumping at the beginning of August may be the last dumping in the Bitcoin market. Because we only invest for the long term, the more we invest in the DCA method, the more portfolio we can grow. Because many people cannot buy bitcoins together due to financial problems, DCA method is most convenient for them.



Yeah, with it, we try to minimize the impact of volatility change, by dividing our funds into smaller sums, so I may agree with you. We shall see how much our portfolios will feel the impact of it, though Wink

DCA has nothing to do with minimizing the impact of volatility in the price of Bitcoin, so don't get it wrong because when we talk about volatility is the nature of Bitcoin and is also inevitable so long as the price is concerned, so we did not go into DCA because of minimizing it but instead we choose DCA because is a good method for long term holders to go through.
I understand what....means you know when you are DCAing constantly you are opportune to buy bitcoin at various prices and someone that only use lump sum to buy bitcoin only without DCA will not enjoy that much from the volatile nature of bitcoin if he hodli for a very long time compared to that investor that is on DCA regularly, because if he has lump sum already, whenever bitcoin price dips below his entry point he is not in profit. But an investor that his DCA is ongoing constantly, whenever the price of bitcoin dips he will also buy at that period and that will make him worry less because he is also benefitting from the dip.

That is how DCA minimizes the volatile nature of bitcoin because when we want to access our portfolio if it is in profit, one needs to use 200MWA to get the average price of bitcoin in your portfolio and that is what DCA does to help you balance it because you will buy when the price is very high and at the bottom of the dip. Overall, it is good use DCA to build and grow your portfolio and if you have an unexpected funds, you lump sum immediately and hodli to help you achieve a fast growth of your portfolio.