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Quote from: Cryptoprincess101 on September 02, 2024, 05:45:07 PM

Yes your explanation about buying at a DIP is okay but buying at a DIP is mostly for those who uses the DCA strategy and they have reserved funds that they can use to buy Bitcoin at cheaper price when a DIP occurs.

There was never a time when buying the dip was meant to be for those who DCA. Buying the dip is a pattern of buying and an investor who wish to lump sum or dca can as well buy the dip. Some investors rely on only buying the dip as their strategy without considering dca or any other strategy. Like i said before it all falls down to the individual risks. Buying the dip can seem to be a lot less risky since one has to wait for the bottom to buy, but what those who wait for the dip dont know is that it can be more risky when the dip never comes and they cant buy at all. Waiting for the dip will leave them no other option than to not buy at all. Now imagine that an investor has to sell off his btc for profit and wait to buy a dip that never comes while the market keeps going up is that not a huge loss for him?

Those who buy when the price is down of course they will buy it in large quantities but for some investors who do not have large funds of course they will use the DCA method in the process of accumulating their Bitcoin gradually and I think everyone knows very well that no one can know clearly when the drop will occur and as you said they could miss the opportunity to buy it because the price did not drop when they waited for the price to drop of course this would be very disappointing.

If an investor is aware then surely he can follow DCA method anytime in any situation. However, market dumping and pumping is not an issue because investing in the DCA method definitely reduces the buying level of Bitcoin. If you invest $100 for $56,000 in the first week, and $100 for $60,000 in the second week, your average purchase price of bitcoin holdings must be $58,000.

So here you must have got huge savings so if you invest regularly then the average price of bitcoins in the purchased part of your holding will definitely come down. This is how you can succeed by following the DCA method because every investor uses this type of strategy.

I don't know what you mean by the DCA method reducing the buying level of Bitcoin because with the DCA strategy, Bitcoin are bought at different prices within different intervals of time so from your own illustration is trying to say that using the DCA is like buying at higher price point but that is not true because you can DCA and the price begins to DIP which can also enable you to buy at more cheaper price while still using the DCA strategy. Every investor don't actually use the DCA strategy, some has a different methods of buying Bitcoins and there is no need to have huge savings when you can equally use the amount you want to save and be buying Bitcoin little by little. It gives your investments more value than making huge savings first before you start accumulating Bitcoin.

What he meant is that regular buying with DCA you will get an average price of your bitcoin portfolio balanced. For instance when you are DCAing you will have the opportunity to buy bitcoin at various price intervals at the bottom line of the dip, during consolidation and when the price pumps to its peak.

This is why when you want to assess your bitcoin investment portfolio to know if you are making progress or not, you use 200MWA with the current price of bitcoin at that moment because after a long time ongoing DCA your average price per bitcoin will be balanced.