But they would never think about that when they are accumulating for long term since they are not dealing with more bigger risk since by using DCA it eliminates what they have worried since at anytime they can set up their buy orders especially if they understand on to make everything work according to their plans set. People just need to be patience and stick on their target so that everything will goes well on their long term journey with Bitcoin.
The concept is not like that buddy because even though we do it with DCA, it doesn't mean we don't think about risk because in the end, regardless of the method, risk still exists, especially when talking about where we invest. Bitcoin is one of the risky aspects of investment and we must be prepared for all possibilities including loss if we really want to be here.
So whatever we take in terms of strategy in accumulating bitcoin whether it's DCA or buy on the dip or even lump sum everything has a risk in the end.
So that we cannot let go of the word risk from the investments we make so that in the end we realize that being in bitcoin is not as comfortable as thought because even though we will get good things when our goals are achieved but in the end all the risks are clearly very present and we must be prepared with all of that.
Yes, investing in bitcoin will certainly not be free from risks. Because in essence there is no investment asset in the world that does not have risk. So we really have to be aware of this and prepare ways to overcome or minimize possible risks that might occur. Just like in Bitcoin, there are many ways to minimize possible risks that might occur. Like
. Study the bitcoin cycle itself.- Only use cold hard cash to invest(discretionary income).
- Determine a purchasing method that suits your financial situation (such as DCA).
I think with these 3 factors we can minimize the risks that might occur when we invest in bitcoin. Apart from that, talking about DCA, it is true that this purchasing method does not guarantee 100% that we will avoid risks. But this DCA purchasing method only makes us more organized and consistent when buying bitcoin. So basically whatever purchasing strategy is used for bitcoin investment, everything will still have risks. But as I said above, we only minimize it and will never be able to eliminate risk. So the point is to invest according to the risk you are able to face.
All what you said here is very much ok too me here except the statement i made bold in your write up, which is
studying the Bitcoin cycle itself.I really don't think it's necessary to be studying the Bitcoin cycle if you are a long term holder, ok after studying it, and knows how the Bitcoin price behaves in every four years, do you think that it's best to be selling in that period? No.
As a long term holder that have the intention of building a generational wealth overtime, selling your Bitcoin holdings during that time can't have a significant impact on your financial status for ever because you are actually sell for minimal gains which is what traders do, that wouldn't have much impact in their financial status.
Or you don't have the intention of selling it then, so what the benefits of studying Bitcoin cycle, it may have on your holdings on the longer run?
All other risk factor you made mentioned is very much ok too me, but this one here is what I think that it's not necessary, unless you just want to get the knowledge, but I sees no benefit it might have in your holding on the longer run, rather it might tempt you to sell off during the bull run.
There is no knowledge that is a waste as it concern Bitcoin and by that I mean that having full grasp of the Bitcoin cycle is not a waste and can be used to the advantage pf the investor. It is not always about selling that they knowledge of the market cycle is important. For instance, knowing the market cycle will enable the investor to know the period to buy using the lump sum method even though he might be using the DCA method for the rest of the season. In other words, when the investor know that we are fully in bear season, then he can adopt hybrid method of the DCA method and aggressive lump sum or buying the dip at certain levels to take full advantage of the bear market While using the DCA method and buying all the way up until the bull season.
This is a method that have been tested and proven to be effective although not many people understand its application but the point is that understanding the market cycle helps one know when to be more aggressive with buying Bitcoin because that is the point in which more Bitcoin can be gotten at lower prices. [/list]