Post
Topic
Board Speculation
Re: Buy the DIP, and HODL!
by
Ricardo11
on 08/10/2024, 10:58:07 UTC
Bitcoin is a volatile asset and so there's no guarantee that you will get 2x or above that amount from your investment at the end of the year. Realistically, thier might be years when we are not all that profitable with our investment and Bitcoin might remain at a certain range of price for a long time during some years before we tend to see anything close to 2×, 3× or so as you may have it.

That's basically the whole essence of long term investment and the application of the DCA methord in doing so because while you're investing for the long term, even when you don't see yourself in a good profit at certain time, you just take it as an opportunity of buying more Bitcoin and to continue doing your DCA till you reach your accumilation goal.

The price of Bitcoin can never remain stagnant for a longer period, Bitcoin is not a stable coin and therefore it would always experience volatility, but the good thing about investing for a long-term is that the investor would always recover their lose from any dip whenever there's an upsurge and that's just it, an investor mustn't wait to make 2x or 3x before they'll say they've profited from Bitcoin, the profits comes periodically at every upsurge you encounter while using the DCA method, investors should understand that Volatility is never a problem for long-term investment with DCA so far they go funds to continue buying.
Bitcoin's short-term volatility is not a problem for DCA users. Rather they get the opportunity to accumulate more from this short-term decline. As a result, they can accumulate more bitcoins with the same amount of money. For example:

Suppose I regularly deposit $50 in Bitcoin on a weekly basis.

Week 1 = Per Bitcoin price $63K = $50 can be obtained = 0.00079 Bitcoin
Week 2 = Per Bitcoin price $58K = $50 can be obtained = 0.00086 Bitcoins.
(A short-term decline has Bitcoin fall some value this week.)

In this case, a DCA user continues to invest in Bitcoins on a regular weekly basis with the same amount of money, and because one week the value of Bitcoin is slightly lower, he is able to deposit more Bitcoins with the same amount of money.

This means that those who use DCA will definitely keep DCA running for 8-10 years, and the short-term volatility of their Bitcoins is not a problem but more beneficial to them. And by continuing long term DCA he will surely earn huge profit. And in this case volatility is not a problem in the long term also if an investor proceeds systematically and patiently.