Quote from: ultrloa on Today at 09:19:06 AM

Quote from: nullama on Today at 04:47:18 AM

Quote from: ndutndut on September 12, 2024, 06:43:54 PM

~snip~For me, this DCA strategy is an anti-loss step in investing not only for beginners but also for those who have known BTC for a long time. Especially if we do DCA in a weekly period, of course this is much better because the increase will be faster. Because the goal of DCA is to get as much btc as possible in a long period, without having to worry about price changes every week.

That's why we must have a stable cash flow so that this strategy can run well. That's why many people in this forum always give advice to other members, especially beginners, if you really intend to invest in btc, you have to be smart in finding additional income. Because the dca method is the coolest strategy for long-term investment, and the capital is only patience so that the goals we want are achieved. That's also why the dca method is very suitable for btc because btc has certainty and good fundamentals in the future compared to other coins without any worries.

The thing is that lump sum could obtain the same outcome, as in, you just put all the money into it right now and forget about it, without checking the prices all the time.

This also has the benefit of not having to worry about fees or making sure the transactions are done correctly, etc.

Having said that, most people won't have a big chunk of money that can be used to buy a large amount in a single transaction, so DCA is usually the most common strategy.

But from a point of view where you want to maximize the amount of Bitcoin, then lump sum could be better than DCA, depending on the future price of Bitcoin.

But all really matter depend on your cashflow or financial situation, but if they are capable to use this strategy then its fine since this is also proven working for people who also want to earn for long term investment.

If they cannot afford to do that our doubting then they still have another option to use DCA which is perfect for everyone. Everything is all depends to the person on what suitable to them, but they could try to use both so that they can gather experience since for sure every information or knowledge they get for trying it will be worth it since they gain something useful that can help on their bitcoin investment.

Maybe an example would be helpful, since even using a lump sum (investing right away) method does not need to be all or nothing and surely individuals have discretion in how they are going to deploy the money they have available and even the money that they decide that they are going to allocate towards bitcoin investing.

Let's say that a person had already established a practice of investing $100 per week, and he had been investing in bitcoin since the beginning of 2024.. so his history of investing is not very long, and he is also in the process of making sure that his cashflow management practices are in a good position, so all of a sudden, for some reason he receives an extra $5,100, and with that $5,100 he has quite a bit of flexibility how to assign it, and he already knows that he is doing $100 per week in DCA, so maybe he could decide to divide it into three parts which would be $1,700 each.. to use 1/3 for buying right away, another 1/3 for adding to his DCA and the other 1/3 for buying on the dip. Of course, his regular DCA is a practice that is buying right away with money that comes available, yet if he decides to assign DCA with his lump sum amount then he is engaging in a time-based deferral, and with the 1/3 assigned to buying on dip he would be engaging in a price-based deferral that might not end up happening.

So if he thinks about his $5,200 like that, then he might decide to change the proportions to allocate more of it to just buying right away..so maybe he buys right away with $4k and then divides the remaining $1,200 into buying on dips (since he is already engaged in DCA of $100 on a weekly basis, he does not see any need to defer and add to his already existing weekly DCA), and so there can be a lot of ways to divide up his ways of considering the extra money that he came across and that he had already allocated to BTC investing. and he just needs to figure out a balance that is comfortable for him, and surely some folks might just choose to use it all to buy right away, but maybe structure the buys over several days or maybe even over a couple of weeks.

Each way of buying has trade offs, and so if he already accounts for the trade-offs he is in a better position, and many of us likely enjoy having the luxury of receiving some extra amount of money, and prior to investing into bitcoin (or having a system in place for investing into bitcoin), our first thoughts might have had been to go on a vacation or buy some consumer items that we may or may not need, so if we already have a bitcoin investing system in place, we have the option to plug some or all of our extra cash into bitcoin.