Quote from: Cryptoprincess101 on Today at 09:55:12 PM

Quote from: Justbillywitt on Today at 06:18:36 PM

Quote from: Ndabagi01 on August 07, 2024, 06:28:03 PM

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

I agree that anyone can choose to apply the DCA but most rich guys prefers doing a lump summing especially when a DIP happens and just decides to watch their investments but it will be wise for everyone to consider the DCA because they can have the opportunity to buy at more DIP price when they DCA and someone who uses the DCA strategy can own more stash of Bitcoins in their portfolio since they will be consistent in accumulations unlike someone who just bought at once and decides not to buy again.
I am quoting your last line which I highlighted, saying that the main reason for DCA is to mitigate loss capital sounds very strange to me and you sound a little bit lost because basically if someone buys Bitcoin and the price DIPs, the amount of Bitcoins you have remains till the price gains back and everything returns to normal so if the price DIPs don't mean that the capital of investment would be lost, it's a very wrong narrative. Except the price of Bitcoin falls to zero, no capital of investment is being lost and of which the price of Bitcoin can never get to zero which means there is every likelihood that even when you buy and the price DIPs, you don't need to panic because it will be recovered as soon as the price comes back to it's initial price when you bought.

When the price dips does not mean that you are at loss because you didn't sell but still hodli, it is when you sell in a dip due to panic that you will run at loss because the dip in price has nothing to do with the size of your bitcoin portfolio in the long run. DCA is to make your bitcoin investment journey easy so that you don't start putting too much of your income into bitcoin and it will affect you when you can just use some part of your discretionary income to buy regularly in order to continue increasing your bitcoin portfolio.

Lump sum is not done by only rich investors because they have money and if a rich man wants to lump sum he does not have to wait for the dip because he has already made his mind to invest in bitcoin and will not care if the price of bitcoin is at the dip or not, he will just lump sum immediately. A rich man will even benefit more if he has time to DCA with the money that he wants to use to lump sum but maybe due to lack of time or because he feels he have more than enough funds he can buy bitcoin whenever he likes with whatever amount he wants.

An average investor can also lump sum with his ongoing DCA whenever he has a big amount of money that he was never expecting and can do without such money for long. For instance, I am DCAing with $100 every week and I was paid Christmas bonus which is the same amount with my monthly income, since my monthly income can take care of my monthly needs and I also have discretionary income in which I DCA with every week, I can share my Christmas bonus into two parts and lump sum immediately with the money to buy bitcoin while my DCA is ongoing.