Post
Topic
Board Speculation
Re: Buy the DIP, and HODL!
by
Justbillywitt
on 29/10/2024, 08:26:56 UTC

As an example, let's say you have a monthly income of $120, from which you can invest $80 in other activities and the remaining $40 in Bitcoin. have the attitude that you will invest $40 a month regardless of the ups and downs. And if you have other means of earning money then you can increase the rate of Bitcoin investment.
The percentage means making about 35 percent of the total income we make to be invested?
Even though it is a very good thing but we have to keep in mind other situations and conditions because for the initial 35 percent for DCA I think it is quite difficult to do because after all even though maybe for the first week or month it can still be done but of course this will be a little troublesome in terms of consistency because we cannot handle this large amount if our income remains at $120.
I think it's still good enough if we only allocate at least 20 percent-25 percent because it's possible we can still minimize in terms of needs but for 35 percent it could be torturing yourself even though being in bitcoin is a very good thing to do but forcing yourself because you need to remember that this takes a long time at least 4 years or even more so that with a nominal 35 percent of your income it is still very large in my opinion.
I understand what you are saying perfectly. But what I just have to add here is that, since the DCA is for a very long time. Investor should maintain the percentage that gives him some level of comfort. At the beginning he can go a bit aggressive in order to get to certain level of bitcoin in his portfolio. There will come a time when he won't be like that, he won't allocate a higher percentage to his DCA, because there will be some manly responsibilities that will make him to adjust his investment percentage either for few weeks or months.

Let's say staking his partner to vacation, to straighten their relationship, he can decide to reduce the allocation, because he will need to raise money for vacation. So period he won't have to allocate a higher percentage to DCA. There will also come a time that he will even decide to increase the allocation further, maybe he got more resources inflow. Investor don't have to maintain a stable percentage to be invested in bitcoin throughout their accumulation period. Reather it should depend on the level of resources that are flowing into your hand and your responsibilities, that occasionally comes up.