Post
Topic
Board Speculation
Merits 1 from 1 user
Re: Buy the DIP, and HODL!
by
Agbamoni
on 13/11/2024, 16:07:55 UTC
⭐ Merited by rachael9385 (1)
As long as bitcoin investment is concerned, there is no wrong strategy for accumulating bitcoin for long-term profit. Even though you use the lump sum strategy, the DCA strategy, and buying the dip strategy, you will not fail in your bitcoin investment. The main reason why we always advise newbies to make use of the DCA strategy is that not every investor has enough money to lump sum, and buying the dip strategy will delay newbies accumulation journey because they are not certain if a dip will happen today or tomorrow, but with the DCA strategy they are open to consistently accumulate bitcoin either on a monthly or weekly basis even if bitcoin is increasing or decreasing, which will be more effective to them than buying the dip. The thing that can make you fail in your bitcoin investment is when you invest all your money in bitcoin and fail to make provisions for your emergency funds with the idea of getting rich soon.
Strategy in investing is not a criteria to anyone who is committed to his long term investment. There is nothing like the best strategy as long as long term goals is concerned. Each investor will invest according to how it suite his finance, risk management , and tolerance. As long as the intention is in long term, he can choose to DCA at some point and when he has huge funds that comes in more than regular funds he might decide to buy the dip and lump sum. Anyway it is not recommend that an investor to put in all his salary all at once into Bitcoin in the name of lump sum or buying on dips. These are little mistake beginners make when they want to start their investment. They love to go all in thinking they are far behind holding a good fraction of Bitcoin. However, its not also a good idea to procrastinate in buying Bitcoin because you are expecting a huge funds in the future which you might not be certain of or you are. The thing is that you can buy a little. There is always an entry point that will be more comfortable for us after we have evaluate our discretionary income.