Re: Buy the DIP, and HODL!

Perhaps the only way to learn is to ask questions, I would prefer you ask questions where seems confusing to you than for you to create some level of assumptions that seems very lame and unrealistic. looking at the context of the thread there are few other threads where you can learn basic things about bitcoin investment and smarter ways to buy and hold for a longer term if you indicate interest in them or such thread I will be glad to refer you to some of JayJuanGee's thread which he discussed the basics on each entry that you could make. this threads are even suggested outside the forum which shows the level of original and how true it is, now I would love you to ask or request for links if you're interested but if not you can stick with this thread and ask questions instead of confusing others with your own perspectives.

Okay, thank you in advance.
In this thread I read a lot about DCA, and after I found out that this strategy I think everyone can use it because it doesn't seem to need a lot of money to do it, you just have to be consistent in doing it.
But is DCA the best strategy to use?

You are a beginner in investment. You shouldn't worry about what others are doing. Do the best you can but the best way is to maintain consistency and dont focus on the market price at each point in time if not you would not be able to start your investment. There are several strategies for Bitcoin investment but DCA is one method that has been adopted by both new and old investors. With time you will know what strategy would best fit your risk tolerance, financial strength and accumulate goals. If you have enough funds you an choose to lump sum so that you have a good amount of Bitcoin in your portfolio.

The only strategy i have been against is people timing the market. When an investor do that they are more prone to miss out in opportunities they fully wait for. Every point is a good time to buy Bitcoin whether we are lump suming or dcaing.

Lump sum method of investment is good but I feel its too wild for a beginner especially the one that hasn't really understood the market that well and the reason why I say this is because that new investor can easily be affected whenever he sees the price dip and especially when he used large sum of money to buy because he will be scared of the funds dropping so my advice for any new investor should be DCA method so atleast you will just have to do with continuity and with time get to understand although both methods are still effective but I guess it depends on the investor himself to fully understand how the Bitcoin market works.

And again you thinking about other people investment shows that you clearly need to do some study about investment on a general note, before ever starting an investment your own goal is what you should focus on and for Bitcoin investment what you need to do is just learn the basics and ofcourse have the general patience that Bitcoin investment won't make you rich overnight as it's a gradual process and patience and commitment is the key.

It depends on the level of the beginners financial strength. A wealthy beginner in Bitcoin investment can choose to lump sum if he can afford it. However, it can be risky to beginners who cannot afford it as if they try to put all they have in the investment they are exposes to risk especially since there knowledge is still growing. Dont forget that an investor may have good knowledge of investment and still make wrong decision making at the end. Its not because they do not implement their knowledge so well but in way they tend to listen to opinions from other investors and such opinions are favorable to those who gave them because it suits their risk tolerance and accumulation goals. Any decision we are making must suit out investment goals and risk tolerance if not even our knowledge wont help us at the end of the day.

On how we might preach the whole process to be, investing by lump summing isn't suitable for a beginner, how should he know at what price is comfortable to purchase, even a well knowledged investor might slightly enter from a wrong position which may hinder the progress of his profits. A well knowledge investor will understand that lump summing works perfectly during DIP because it will definitely pay huge when the price of Bitcoin begins to kickoff but then how long should he wait on the DIP, more reason why the DCA strategy becomes the most suitable and relevant way of accumulating, the DCA creates those perfect opportunities with ease and likely when the financial strength is ready.