Post
Topic
Board Speculation
Re: Buy the DIP, and HODL!
by
DubemIfedigbo001
on 02/01/2025, 23:02:40 UTC
Let's say that a person similar to you (Sim_card) had been investing into bitcoin for nearly 2 years as aggressively as he is able to do, whether that is $100 per week or some other amount, and eve from time to time, such person might come across extra money that he is able to invest into bitcoin, yet he might have to weigh whether he wants to invest all of the extra money right away or if he might want to split some of the extra money into buying on the dip and/or DCA.
Investing $100 per week is about $10,000 but if by any chance he received extra money and invested it in Bitcoin his portfolio might probably be more than $10k. But I think it would be a bit hard for him (including me) to weigh if he's going to invest them at ones on during the dip or DCA. However, I would prefer to invest them all at once while using the DCA strategy, the only thing there is that I will increase the amount I want to DCA with only when I have extra free funds. Although it wouldn't be a bad idea if I invest it during the dip, I just prefer the DCA method.
We'll I think you've extra funds already in this scenario and you choose to invest all at once, the extra funds you'd have used in increasing your DCA have been invested at once, and none left.

In my view, I'd have taken a separate pattern, let's say I stumble on an extra $10k free cash and wish to invest all into Bitcoin, I'll just divide the money into there, use a part (around $3.33k) to lump sum, the second part to add to my DCA amount over some period of time in order to increase my aggressiveness, and the last part to wait for the dip to buy more during the dip. While I continue my regular DCA periodically as normal.

Lump summing with everything is very much fine by me, but I'll love to employ some technicality into acquiring more stashes of BTC since my goal is to effectively manage my spare income to accumulating more BTC and in the end I've still done justice to that.

Quote
The reason why I won't choose the dip is because I might not have the opportunity to experience the dip for a long time.
Do you intend selling your Bitcoin in just a cycle or are you aiming for short term gains, I perceived you're a young guy and you've more time on your side to leave your investment for a longer period of time maybe 10 years or more which is 2 or more bear seasons, so if you're adequately planning for the dip alongside your regular DCA, you'll see it multiple times and benefit from it's low prices.

But if by any reason you're advanced in age and do not wish to hold for that long,  you might do as time permits you, but planning for the dip is still a strategy to acquire more stashes of BTC and if you can get more quantity, it surely means more profits for you on the long run.