DCA is a highly effective strategy that provides investors with stress-free and regular investment opportunities. It’s a method where you invest regularly in a certain amount of money that doesn’t depend on market fluctuations. The biggest advantage of DCA is that you don’t worry or worry over the price. You can make long-term investments by handling it at a specific time of the month or week, so your average price may decrease with time. It’s a stress-free process, such as if you buy Bitcoin for $20 and the next week’s price is $10, there’s no problem, because you think it’s a long-term savings for the future. If you follow a specific routine of savings, that is, if you invest regularly together, you cannot worry about market fluctuations and your savings will increase. In addition, DCA gives you peace of mind, because your average entry price becomes more controlled and reliable.
You have a point on what you said about the DCA method, but the DCA method can only help when you invest on Bitcoin for the long term, as it doesn't matter whether you are buying Bitcoin at a lower rate or a higher rate. However, the DCAing method helps reduce emotional stress for a gambler, especially one who always feels bad whenever he's losing his capital in an investment. Actually, why I like the DCA method is because it makes you disciplined as you need to invest constantly with the amount you can afford to invest with. If one invests through the DCA method on Bitcoin for a short term, the person will probably lose his capital because only those who don't have the patience to invest for a long term, and they are so emotional that they can not withstand the pressure of seeing their capital being lost in an investment. The way the DCA method favors an investor is if the person has a long-term perspective and also invests a specific amount and also invests in Bitcoin regularly.
I do agree, it's not like DCA is etch on stone, for small investors like the majority of us, we could used a tweak and see how it will fit on our budget. Maybe can can start small and make some adjustments based on our regular income. The key here is to be consistent, $10 or even $20 a month that wouldn't hurt your budget and see how it goes. For all you know, it will grow significantly over time due to compounding. So even with limited resources, you can still used this method each month or weeks and be as effective like those whales or institutions. Again, there is no secret here, just focused on long-term growth, and DCA will be your friend.
I love this. The DCA approach is just an approach, there are many other approaches to invest wisely, the main consideration is for the asset to be trusted. Thankfully, Bitcoin is a trusted asset and investing similarly to what you explained helped me mainly between 2022 and 2023, and part of 2024.What I did was to convert almost all the money in my bank account to Bitcoin, I only reserved about $100 (after conversion), it was crazy
.But the thing is, we can't force anyone to trust Bitcoin. There are folks that don't trust Bitcoin because they have labeled Bitcoin as (crypto). I have a friend that said "Bitcoin is crypto, and it can not be trusted because your capital might be gone within seconds". So, we can't force those kind of people to make wse decisions with Bitcoin. We can only give them advice but can't force them to take advantage of Bitcoin.
However, if one is looking for a safe investment to start, it's probably Bitcoin, because Bitcoin is a trusted asset and anyone who cannot trust Bitcoin can not trust any other investment (just like you have said previously). One needs to focus on Bitcoin alone.
The topic above simply means that we should buy Bitcoin at the dip and hodl it. HODL simply means "Hold On For Dear Life", and truly, we need to hodl Bitcoin till dear life because it's a good store of value.