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Re: Buy the DIP, and HODL!
by
Callido
on 27/08/2024, 20:38:26 UTC
⭐ Merited by Marvelockg (3)
Quote from: Dailyscript on Today at 06:29:19 PM
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Quote from: FinePoine0 on Today at 01:08:05 PM
Of course, if it is possible to hold Bitcoin in the long term, then such investment strategies must be adopted.  Investments are usually only profitable if they are long-term, but investing with a small amount of money can be done long-term only by following the DCA method. Many people use many types of strategies but the DCA strategy is one of the most popular strategies, where all investors have found success using the DCA strategy.

Dollar Cost Averaging DCA in this investment strategy if an investor can make his investment consistently then he can succeed in this strategy with low risk. We who are real investors, before thinking whether we will make a profit, think about whether we are investing in the right strategy and how much our money is safe or at risk after investing. 

I invested 1000 dollars together and at one stage of bitcoin market I took that investment if the market dumps then there will be additional loss but the investment remains the highest risk but it is different with DCA investment strategy. 
In the DCA investment strategy we will invest that $1000 in several stages and we will maintain the consistency of the investment so that we can buy bitcoins from each stage when the price changes. 
By doing this it will be seen that we are investing reducing the risk in our investment.
Unless an investor considers himself an expert (based on experience) in Bitcoin investment and if he has enough funds to invest that is when he can be able to use several strategies to invest in Bitcoin. A beginner in Bitcoin investment will only destroy his investment if he cannot maintain consistency in one strategy.

An investor who have met several cycles of Bitcoin might know how to make good use of several strategies to have a good Bitcoin portfolio. Using several strategies can help perform better based on several market conditions instead of relying on one strategy that works sometimes and other times it dont work.
I do not think there is a lot of effort required to learn or understand how the several strategies operates, a person can still be a beginner while trying to accumulate Bitcoin get to understand how to efficiently deploy on all strategies and at the end get a better outcome. This is a process that one can expertise in his early stages of investment even as a beginner, no need to wait on becoming an expert before trying out other strategies.

It is primarily necessary as a beginner to always be open to learn and do more findings, instead of relying on person knowledge because at the moment the person knows less of what the market is talking about and is vulnerable to make mistakes. Everything comes with understanding the basics and investing by the terms, no call for expertise.