Investors who invest for a short period buy a large amount of Bitcoin at once. Most of us are investors who don't have extra funds so they opt for long-term investments. Because in this long-term investment, we can buy bitcoins and deposit them in the investment portfolio at any time using funds according to our ability.
Moreover, long-term investment has a higher chance of profit because investors make their investment long-term, some four years, six years even many who prolong their investment up to 10 years. Bitcoins fall in price, but recover by rising again. As we've seen Bitcoin's price rise from around $40,000 to an all-time high this year. So those who patiently hold their investments for long term reach the pinnacle of success.
It's not entirely true, lump summing is not for short term investment, it's to accumulate more stashes of Bitcoin at a time, most investors who've good finances and decide to engage in Bitcoin accumulation lump sum and then possibly follow up with DCA to further expand their portfolios.
Some investors lump sum, and are comfortable with their accumulated quantity, they send it to cold storage or decentralized wallets and starts holding for as long as they wish, some still lump sum and follow up with DCA to accumulate more, while some ignorantly buys and takes away short term profits. I still know some friends that bought little quantity and rushed to cash it in when they observed little profits and I call them Bitcoin gamblers and not investors. I've seen a friend who bought Bitcoin worth of $5k in 2015 and he has not bought any other. But he continues holding and he's happy his investment continues appreciating .
There's no criteria of people who engage in short term investment, it's just about making the right decision and having the patience and composure to hold for a long time for your investment to get very profitable.
Yea that's the truth, what I understand about lump sum buying is that it all depends on the amount in your custody that you can to in a particular time, an investor that bought in a lump sum may not continue that way hence he has actually gotten what he want at a particular period of time, such individual may continue accumulating with DCA method as you said.
Let's not also forget that people that buy in lump sum always do it when there is Bitcoin price dip and I believe this people utilize this opportunity to buy a large amount not necessarily because they don't make use of DCA method for gradual and steady accumulation of Bitcoin but for the fact that they can really actualize huge amount of Bitcoin at a cheap price in the said time, they decide to buy with large sum and also continue with their previous method of accumulation.
In Bitcoin investment what matters most is the ability of individuals knowing what they actually want, I think the set of people that benefits most in Bitcoin investment are those people that has channelled their mind to long-term knowing fully well that it is the goal that every bitcoiner should go for, the aim of every bitcoiners is to buy Bitcoin with good investment method that will continue making them relevant in the system as they keep holding for the long-term benefit.