From what I've always noticed, investors are always moved to invest once the price is pumping ,some of this investors(or should I say most) are always after the short term profit, among which we will still have some future holders even some short term investors can still become long term holders.
This short term investors in my opinion are the reason we always have those massive dip season , all buy when it is pumping and sell when they see little dip causing more panic for new long-term investors and this is why new investors must always know that there will be a dip , it is just corrections and we will be back stronger so there's no need to panic when the time comes , 48k to 70k was a good example.
This short term investors in my opinion are the reason we always have those massive dip season , all buy when it is pumping and sell when they see little dip causing more panic for new long-term investors and this is why new investors must always know that there will be a dip , it is just corrections and we will be back stronger so there's no need to panic when the time comes , 48k to 70k was a good example.
Weak and strong hands are in every trading market and crypto is not a different thing. Everyone has it's own way of investing in crypto and there is standard technique that is considered to be correct. Everyone has to figure out what suit him in getting desired number of Bitcoins.
Totally agreed,
since we can not easily predict Bitcoin movement ,then DCA should not dissapoint although, using the "lump sum" could be beneficial attimes, it can still be used in form of DCAing all that matter is patience to see the result yield.
since we can not easily predict Bitcoin movement ,then DCA should not dissapoint although, using the "lump sum" could be beneficial attimes, it can still be used in form of DCAing all that matter is patience to see the result yield.
I have this post year a go where I did some work on finding how much return DCA and Lump Sum gives you. In the long run, Lump Sum investment is way ahead of DCA but the key is you are willing to HODL for long term.
Below data is for past four years. I will try to update it for last five years or someone else can also do that, https://dcacryptocalculator.com/ is the tool and we just to update few parameters.
I just have a small working on DCA vs LUM SUM Profit.
DCA:
If you invest 100 dollars per week into bitcoin starting from Dec 27, 2019 to Dec 27, 2023. Then your total investment is 20900$ in Bitcoin and ROI after 4 years will be +119% or your total investment goes up to 24870$
LUM SUM investment and HODL:
If you invest total 20900$ in Bitcoin on Dec 27, 2019 and HODL for 4 years then today your ROI will be +505% or investment goes up to 105690$.
https://dcacryptocalculator.com/
Likewise if you go to https://dcacryptocalculator.com/ and play with figures then you will notice that Lum sum investment also gives good result if you are willing to HODL for longer duration.
DCA:
If you invest 100 dollars per week into bitcoin starting from Dec 27, 2019 to Dec 27, 2023. Then your total investment is 20900$ in Bitcoin and ROI after 4 years will be +119% or your total investment goes up to 24870$
LUM SUM investment and HODL:
If you invest total 20900$ in Bitcoin on Dec 27, 2019 and HODL for 4 years then today your ROI will be +505% or investment goes up to 105690$.
https://dcacryptocalculator.com/
Likewise if you go to https://dcacryptocalculator.com/ and play with figures then you will notice that Lum sum investment also gives good result if you are willing to HODL for longer duration.