Post
Topic
Board Speculation
Merits 1 from 1 user
Re: Buy the DIP, and HODL!
by
Ruttoshi
on 01/01/2025, 16:55:04 UTC
⭐ Merited by JayJuanGee (1)
Now if a person can invest daily and if someone can invest weekly and if someone can invest monthly then he should invest accordingly.  
Are you suggesting daily investing? I think you should change this statement. Investing in small amounts can be a good choice, hence daily investing? Have you forgotten about deposit fees? If you are planning to invest daily, then it may be possible to build another portfolio with your deposit fees. Weekly, fortnightly or monthly DCA may be a good choice for you, but buying more than 4-5 times a month will not be economical or profitable for you at all. .

It would be wrong for us to focus only on buying, rather we should also focus on fees and waste prevention. Suppose you are planning to invest $10 daily. Now if the fee is $1 per day, then you will have to pay an additional $30 per month in fees or even less $20 which is equal to your two-day investment. If you buy $25 4 times a month and your fee is $1, then you will have to pay an additional $4 per month in fees or a maximum of $5-$6 in fees. Which is not a very big amount.

So: The advice to invest daily is completely wrong. Along with investing, you can save on deposit fees. In this case, it is better not to buy more than 4 times a month. Weekly or monthly DCA can be a better plan. You should revise the advice to invest daily.
Apart from the fact that daily bitcoin buying is a waste of time, it's also good not to always send your small bitcoin purchase directly to your self custody wallet, to avoid small small UTXO to be too much in your wallet. This is why if you are buying $10 worth of bitcoin weekly, it's better that you leave it in the exchange and pile it up there till the amount gets to $500 before transferring it to your self custody wallet. This is to prevent you from spending almost all your profit in future on transaction fees, because nobody knows how high transaction fees will be in future. Also small output consume more fees.

This is very important for new investors to practice and invest in a healthy pattern.