Post
Topic
Board Speculation
Re: Buy the DIP, and HODL!
by
promise444c5
on 03/10/2024, 00:13:53 UTC
If you receive salary monthly and you think by dividing the money you have set aside for your Bitcoin accumulation into weeks will earn you more Bitcoin through the hope that there will be a dip within the week were you can buy at low price then you are just a trader.
Have you thought of you dividing it and in the course of you buying weekly with the money met for the month and Bitcoin price goes up will you wait for it to come down before you buy or you will still go ahead and buy, there's no need dividing it if you receives your salary monthly because there's no difference in the monthly and weekly accumulation except you are a trader who is waiting for a dip to happen

 as a short-term trader that will be a nice strategy but not for long-term investors, because waiting for the dip is not a smart move at all as a long-term investor , rather you purchase at anytime you have some money to spare that you can hold for long either by DCAing or lump-summing.

Because waiting for the dip will only slow one down , and IMO the when it comes to accumulating, whenever I divide my funds, I usually use 40\50 , so the 40 percentage Is my emergency funds while the remaining, is for accumulating, in order to cover some space but is not fixed though, because sometimes I can choose to set some percentage as reserve funds but I mainly focus on emergency and accumulating funds .
I don't  think that was what the OP really meant but it's related... just that the trading aspect should be completely ignored.OP is insinuating on buying strategy lumpsum compared to DCA for people earning monthly salary..
Firstly, OP need to know that  either you split your funds to get BTC weekly or you used it up monthly you're still using the DCA strategy... but weekly could be more efficient than monthly. Why?? Bitcoin movement perttern does not move in a single direction so having different entry within a month could be much better than having a single entry per month.
For example
I'm used to receiving paycheck of $3000/month and I decide to invest 70%on bitcoin  that's around 2100 or let's just say 2000
Let's say the price of bitcoin is at $64,000 the day you invest
I.e Monthly =>$64,000
Now if you try investing weekly you can different price entry of
$64k, $65k and maybe it dipped and you had the entry of $62 & 63
And with different entry you pulled in with 500bucks... which do you think will be more profitable.
Not saying that you can't take a monthly entry for your DCA though but with weekly you can pull in with some dip and even if there was no dip the price entries won't be too far from each other . Besides, every entry counts so far you're doing it within the intervals