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?
The reserve funds is like a long-term savings set asides against future debts and it helps one from going into taking loans in future whereas as the emergency funds is set aside for unexpected events like, medical bills, car repair bills, utility bills etc they different things altogether cause the reserve funds is set asides for some particular purposes, like future investment, financial opportunities etc but the emergency funds is basically for unplanned events the similarity they both share is that they can help one from going into debt. The reserve funds can be used to do the lump sum in a case where the market gives an investor the opportunity to buy Bitcoin at a more cheaper rate but that doesn't mean you should use your whole cash reserve funds for the lump sum. Whereas an emergency funds shouldn't be used for any method be it the DCA or lump sum it's strictly for unplanned events which are those emergency cases as stated earlier. So far an investor got a stable income they should be able to set aside the reserve funds from funds meant for emergency purposes.