I have seen as a newbie that beginners to Bitcoin investing mainly experience more volatility. They tend to buy Bitcoin for a short period of time regardless of the market movements which causes them psychological errors and fear of losing the money they invested. I think if we adopt the DCA approach to investing in Bitcoin, it plays an effective role in investing for the long term rather than focusing on market volatility and short-termism. The Bitcoin investment cycle is 4 years, so we should patiently conduct the investment process for at least 1 to 2 cycles. I think the DCA approach is definitely an effective process for investing in Bitcoin that helps both newbies and senior investors to create a bright start in implementing the long-term process.
A useful strategy for investing in Bitcoin is dollar-cost averaging (DCA), where you buy and save small amounts of Bitcoin at regular intervals (such as every week or month). This provides protection against fluctuations in the price of Bitcoin. This is because you can buy at higher or lower prices to reduce the average price. The DCA method is equally beneficial for both new and experienced investors, as it makes the investment process simple and stress-free and helps with long-term investing
. It eliminates market volatility and provides peace of mind for investing. If you invest consistently over time, you will be surprised at how much Bitcoin you accumulate.
Even though you might be right about the DCA strategy of bitcoin investment to a certain extent, I just want to point out where I think you are going wrong, and that is where you said that the DCA strategy eliminates volatility. The DCA strategy does not eliminate the volatility in bitcoin investment. It only mitigate the impact of volatility in the capital invested. Especially when there is a downtrend movement, that tends to last longer.