Post
Topic
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Merits 1 from 1 user
Re: Buy the DIP, and HODL!
by
Agbamoni
on 09/10/2024, 05:32:47 UTC
⭐ Merited by JayJuanGee (1)
I think those who compare DCA investing to trading and gambling may not have even the slightest understanding of this investment yet. I would instruct them to read this entire Buy the DIP, and HODL thread  thoroughly so that they can gain thorough knowledge about DCA investing (as it has been mentioned here hundreds of times that a newbie can start investing with little knowledge of Bitcoin and little money). But they are right on one point that trading can be compared to gambling as there is maximum risk and profit uncertainty in trading just like in gambling. Through DCA method to avoid risk and reduce stress, we commit to holding bitcoins for a long period of time by buying and accumulating bitcoins over a period of time using a fixed income source.
Hahaha, your right buddy! but its impossible to read the entire thread from the start to the end. One might just get into so many discussions and be confused. However, they should take a sneak pick of the DCA thread and see what they've been missing all along. DCA cannot be compared to Trading. Like the difference is obvious so anyone who would think of comparing them both has no knowledge of Bitcoin investment, and regret is what he should be expecting if he has already started his investment.

Through DCA method to avoid risk and reduce stress
Emotional stress precisely.

We can make prediction of plan but there are many variables at play and to estimate some of these variables are kept constant.
Aggressive buying is a good approach I must say but what about the available disposable income isn't enough to cover for such aggressive buying
Or what happens when there's a strong dip after going aggressive?
We don't have to keep predicting and finding estimate of the price before accumulating. That is the main essence of DCA, we can choose to buy at any price as long as we keep buying. Keeping an estimate in mind may fails. As an investor who is excepting to buy only when your predictions kicks in place you may end up not buying at all if you don't get meet your actual prediction. Imagine a case where an investor wants to buy at 60k by next month, it looks realistic, yet the price may be above 60k by next month and he will end up not buying at all since its above his benchmark.

Or what happens when there's a strong dip after going aggressive?
If eventually the market dips after buying aggressively it doesn't change a thing because it is expected that the investor is holding it for a long time. Its the same thing like buying through DCA and holding it for long. As long as buying aggressively does not affects the investor in anyway or his DCA then its not a problem at all. The market will retrace back with them and more profits would be made. One of the advantage of buying aggressively is that you will reach your goal a lot more quicker and gives an investor more space to set another goals or diversify.