⭐ Merited by JayJuanGee (1)
DCA does not give you lower prices, and also holding back money waiting for the dip does not guarantee that you will end up geting more BTC or even getting the BTC that you get at lower prices. In the whole scheme of things, those waiting for dips may well end up being disadvantaged by employing that tactic, unless they are merely using a buying the dip tactic to supplement an already existing DCA strategy while realizing that their buy the dips may or may not end up getting executed and the buying the dips might not even make enough of a difference to make it worth it to employ buy the dip strategies.
Once a person has accumulated a lot of bitcoin and becomes a bit indifferent about whether he has enough or not, such person might have more luxury to wait to buy on dips since he already has a decently good sized stash of bitcoin in light of his overall financial circumstances.
It doesn't give you lower prices, but it does work as an insurance in both ways and it lets everyone who uses DCA sleep more calmly. But apart from good or bad sleep when someone dumps a lump sum and bitcoin were to take a dive right afterwards, I quickly took this screenshot without any cherry picking and it shows a lot of important information.
I forgot the dollar scale here but bottom is around 16k (Nov 22) and top is around 71k (March 24). What it shows is that I assume many people were hesitant to buy in April and November 21' when BTC was around 65k. Understandable as it peaked and people feel afraid to buy I guess when an asset peaks, but that doesn't mean they are making the right call not to buy. What if it goes straight towards 500k? Those who then decided to get into BTC and went for DCA either on a weekly or monthly basis benefitted from a very long time of low prices. They were able to accumulate BTC =< 30k for almost 33 month with almost 7 month averaging below 20k. It doesn't matter what the price did pretty much, but DCA would have given anyone a good position. If it constantly went up and someone used DCA, position would be good. If it did what it did and someone did DCA for almost 3 years, position would be awesome. If it went sideways all the time, position would be neutral (and probably still good). Never bad sleep.
I remember someone running a thread here telling everyone that he sold the marriage jewelry of his wife to put it all into BTC. This wouldn't quite be what I would recommend (unless your wife severely cheated on you and is going to demand alimentation after divorce anyway).
DCA can be a true investment weapon for someone who isn't as deeply and passionately into the tech and willing to take serious risks, but still understands that this is a train they should hop on.
The last dump is one more example that bitcoin does what it does. It is volatile, it will have its corrections, it will have its irrational movements, it will react to global economic events and data, it will do all the things other assets do plus a little bit more because it is far more complex and far more multifaceted than a usual company stock.