Post
Topic
Board Speculation
Re: Buy Buy Buy or Sell Sell Sell?
by
Ndabagi01
on 14/08/2024, 21:52:23 UTC
The DCA strategy is always proposed for those that have a lot of time to to accumulate bitcoin and don’t have the funds all at once to put in them.
Actually the DCA is not just proposed only for those that have lot of time to invest, but have little funds to do it at once. Rather DCA is suitable for all classes of investors. Both the rich investors and the poor investors. The rationale behind DCA method of investment, is to allow investors invest certain amount of money in bitcoin at a certain intervals, but on a regular basis. So if the rich investor wants to invest in bitcoin but he doesn't want to buy it all at once, he can as well utilize DCA. The main reason for DCA is to mitigate the loss in capital invested when there is a decline in bitcoin market.

The word “loss” on a DCA strategy have violated what the purpose of DCAing is. You are doing the DCA in order to gather a lot of bitcoin on average price of them because of the nature of the market and its volatility nature. Talking about mitigation of loss is like talking about another asset that you’ve acquired some loss and can’t continue holding them and sell them off. Bitcoin is no such asset or coin, if you’ve bought and holding through the DCA strategy, your focus should be on how you can reach your target goal of savings and not how much of your loss can be mitigated when using the Strategy.