Post
Topic
Board Speculation
Re: Buy the DIP, and HODL!
by
JayJuanGee
on 28/09/2024, 21:19:32 UTC
No need to divide it, if you have $10k which you want to use to invest in Bitcoin using lump sum strategy you just buy with it at once that is what lump sum is all about and then you hold, some people after accumulating Bitcoin using the lump sum strategy at a point they even forget they have a Bitcoin investment and they usually hold there Bitcoin for a very long term.
I'm not saying DCA is not a good strategy is a very good strategy and that is what I'm using now because I don't have the capital for a lump sum strategy, however no body should try impose any strategy on anyone especially the newbies we should learn to discuss all strategy and let people make there choice.
Lump sum or DCA is a nice strategy and anyone we use let's make sure we are holding.
I think you should change your mindset, indeed Lump sum is also good but if we apply investment for the long term, isn't it better to buy gradually. If I think gradual purchases can be concluded that we can buy bitcoin at different prices throughout our investment period. You buy at $44k, $45k or depending on the bitcoin price on the day of maturity to buy, that way you have unknowingly bought at every dip that occurs because that is the advantage of DCA.

If you mean to forget about the wallet because you don't want to touch the wallet in the near future then you can buy $5k for a special wallet that you keep the key as well as possible and forget it for the time you want. Well the remaining $5k you can buy via DCA for other wallets so the point I can conclude is that we continue to follow up on bitcoin purchases and that is a great way to increase Bitcoin ownership.

If you already have a lump sum that is available to you for buying BTC, there is no need to DCA buy with that lump sum. You have complete discretion to determine to buy right away or not or to employ various kinds of deferral strategies to buy on dip or to DCA.. and of course, the DCA could be over a few weeks, which is almost like doing it right away, or the DCA could be drug out for several months or even a year.. depending on how the person felt about the current market situation and also about their own already existing BTC stash and process that they might already have in place.  So for example if the amount was something like $10k, and if the person had ONLY been buying $100 per week in BTC, then that $10k amount is two years worth of DCA... so if he wanted to delay over two years, that would be to double his current DCA from $100 to $200 per week.

Surely there can also be variations in regards to how quickly he might want to get the $10k into BTC and if he wants to keep some value for buying on  dips or not.  The answer is not obvious, even though there are options available for such a person that might not have had been available for a lot of folks who ONLY are able to invest from their regular monthly cashflows.  Don't get me wrong, there are probably a lot more people who get opportunities to lump sum invest, yet they might not even realize that they are having an opportunity to lump sum invest if they don't already have systems in place to buy BTC.  So surely one of the advantage that any regular DCA buyer of BTC will have relates to his already having systems in place for the buying of BTC, so if he ever comes across extra money, he may well consider that extra money as a lump sum BTC buying opportunity rather than just an opportunity to spend it right away on some consumptive good, which many people might not even know what to do when they receive extra money, and they might even subconsciously start considering certain things that they want and they are now able to buy.. even if the thing might not be a very good idea if they were to compare such current consumption with the possibility of buying BTC (which is a kind of deferred consumption that may or may not end up playing out to their advantage, yet if they have a 4-10 year investment time horizon or longer, they might not concern themselves too much with current payoffs as compared with future potential payoffs that might allow them to stop working 1-2 years (or even longer) than they would have had otherwise been able to do. and perhaps their ability to assure they are going to always be able to purchase high quality food, especially in their older years... or to be able to do maintenance on their house after they are no longer earning income from working without having to worry about how much it costs).