So if a newbie starts out with $100 per week, then it could take a year for the newbie to invest up to $5,200 into bitcoin, yet if the newbie comes to bitcoin and he already has $6,000 that he can invest right away, then he may well want to consider that $6k in terms of the three categories, and his decision on how to treat the $6k might also end up how he considers to treat the $100 per week that he had already been planning to do.
You’ve made quite a very fine point here.
Bitcoin investment approaches may indeed vary based on the differences in the financial goals and stance of each individual that plans to invest in Bitcoin.
For instance, an investor who plans or chooses to invest in Bitcoin with a weekly budget of around $100, it’ll take lots of discipline, self control and patience to be able to actualize $5,200 in a year, while another investor who wishes to invest $6k upfront may be seen as one who has more flexibility than the other investor.
There will certainly be a huge difference in their investment strategies. The person who chose to invest $100 weekly would focus more on the DCA strategy, and have the patience and self control to invest regularly, regardless of the market’s fluctuations and by so doing, he’ll be able to ride out volatility while focusing on the long term growth and trajectory of Bitcoin. And such an investor is most likely to prioritize continuous education and staying informed on updates about Bitcoin investment, in order to make certain adjustments if/when necessary.
While the other investor on the other hand with $6k to invest upfront would rather choose to lump sum the whole amount while also planning for the long term goals based on his own personal risk tolerance and the asset’s potential returns.
It’s all about identifying your personal financial situation, goals and level of risk management/tolerance level.