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.
There are many differences between Bitcoin and other coins in the market. All other coins in the market are directly dependent on Bitcoin. That is, if you observe the market of other coins in the market, on the contrary, if you observe the market of Bitcoin, then you will definitely see the difference. When the value of Bitcoin fluctuates slightly, the value of all other coins in the market fluctuates. Again it happens that there are some coins that will dump in line with the Bitcoin market but when Bitcoin is pumping again those coins are not pumping.
Investing in Bitcoin in a long-term plan is very safe here, but investing in all other coins will never be so safe. There are many coins in the market which can disappear from the market at any time but there is no possibility of such happening in the case of Bitcoin. Bitcoin has been in the market for a long time and with the passage of time, the popularity of Bitcoin has increased a lot and the price of Bitcoin is currently at a very good level.
An investor is always told that before investing that investor should first select the right coil for his investment.
For example, I always put Bitcoin at the top of the investment list after all other coins in the market, but that investment is short-term and with relatively small amounts of money.