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?
Emergency funds as the name implies, are funds that are kept aside which is to be use to attend to emergency needs or events that may arise in the future which we don't plan for, or have any knowledge that such will happen within the captured time frame. Let's say for example wind removing your roof during the storm. Situation like this is an emergency. And you will take funds from your emergency funds and fix it.
While reserved funds, are funds which are kept in a separate account, which you can turn to when your funds in the emergency funds account gets exhausted before the stipulated period which you intended for the emergency funds to last. Situation like this do occur when you experienced more emergencies than what you budgeted for. Let's say you made provision for 3 to 4 emergencies within a period of 6 months or less, but you ended up having up to 8 -10 emergencies. In this kind of situation it is natural that the money in your emergency funds account won't be enough to handle all. So it is at this point you now go to your reserve account and take money there and fund your emergency account.
Emergency funds and reserve funds might sound alike to many people but there is a small difference between them and this is how I understand what emergency funds and reserve funds are.