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Quote from: Egii Nna on October 05, 2024, 09:38:08 PM

Quote from: Jewan420 on October 05, 2024, 05:16:07 PM

Along with DCA I give more importance to reserve fund for dip buying. Because reserve fund is divided into 2 always one part is kept for emergency fund (which acts as protection to prolong my investment) and the remaining part is used for buying dips. I have only been in the deep once since I started investing. I would like to ask some questions, should I be aggressive in DCA with the money reserved for the dip during the dip?
Or should I buy a lump sum with the whole amount?

I don’t think you still understand how to accumulate bitcoin. That is why you are not getting the point, because how can you mix your reserve fund for both emergencies and buying bitcoin at dip? Did you even know the difference of emergency fund and reserve fund in financial management? I think you don’t know that is why you are saying all this. Because if you do you would have known that the best way to accumulate bitcoin is by using DCA strategies not waiting for dip to buy. Because if you are waiting for a dip you will end up buying a small quantity of bitcoin. Moreover if you are using DCA strategy you will be able to purchase bitcoin bit by bit in different price and even in dip it will not affect you that much, because you didn’t buy them all at the same time. But I don’t know what is wrong with you that you failed to understand.

Why are you confusing yourself dude, if I may ask you what is the difference between emergency fund and reserve fund? Off cause they are same thing which is being used to solve unforseen circumstances that may or will arise. The fact that DCA method is the best and reliable way to invest in Bitcoin doesn't mean every other strategy is not good or doesn't exist and stop sounding like buying the Dip is not among the strategy. I disagree with this " waiting for the Dip you will end up buying a small quantity of Bitcoin", the fact that buy Dip is not the best or not advisable, doesn't mean one can not buy nice quantity of Bitcoin when there's Dip, anyone who's is prepared for the Dip and fortunately there happens to be a dip, that investor will buy a nice quantity of Bitcoin but if you are not prepared you will find it difficult to buy a nice quantity of Bitcoin so I think the key thing here is preparation. Note : I don't wait for a Dip but I take advantage whenever there's Dip if I have enough funds.

Nice question. Emergency fund are those fund that are keeping from your income for 3-6 months which you will save it for the purpose of emergencies like health bills, car repair, or when you lose your job. While reserve funds are those fund that can be use or saved for other things like small expenses or even small investment. That is why you don’t know their differences, because if you do you will know that it is a great financial mistake to join this two funds together.

They is one thing that always affects those that wait for the dip to purchase bitcoin. In the sense that you can only predict but you will never know when the dip will come, it might be the time of the dip you will find it very hard to have as enough money that you needed to accumulate bitcoin. But if you are using DCA strategic it will be very easy and low stress for you.

Mind you. Is not that am disputing the fact that buy in dip is not good. But am just trying to let him know that if really he want to accumulate enough bitcoin, then buy in dip will not help him. That is the fact. Because you as a beginner in purchasing or investing in bitcoin, you will not compare your self to the old investors that have more experience than you, or think you can do the same thing that they will do. So let be guide and focus on the things that we don’t know, and get more knowledge on them.

In addition to what you said above, emergency funds is very necessary when you are investing in bitcoin for long term.