Post
Topic
Board Speculation
Merits 1 from 1 user
Re: Buy the DIP, and HODL!
by
Mayor of ogba
on 05/01/2025, 22:16:58 UTC
⭐ Merited by JayJuanGee (1)
Surely Investing in Bitcoin should be done through DCA to enable you invest regularly without considering the bear market or bulll run. Saying that you will buy Bitcoin only when the market worsen, is not a good way or method of buying Bitcoin. Of course it is good to buy Bitcoin more when the market dips, but shouldn't be what we only think and hope for , but should be a second option from the DCA. That is why it is advised that we should  have a discretion income to be able to buy Bitcoin through DCA or buying on dip and or lump sum. So that we dont only consider buying the dip method as the only priority.
With the regard to actually using the strategy, how often you use it may depend on your investment horizon, outlook on the market, and experience with investing. If your outlook is for a market in flux that will eventually rise, then you might try it. If a persistent bear market's at work, then it wouldn't be a smart strategy to use. If you're planning to use it for long-term investing and wonder what interval for buying makes sense, consider applying some of every paycheck to the regular purchases.

I think you are wrong, there is nothing that requires investors to apply their respective strategies.
They are interested in buying at once, it is not the wrong way, right?
Investors prefer to buy at once and save it.
Many also buy in stages with DCA but do not require all investors to apply DCA.

As long as you hold money, that's where the buying strategy lies.


I think you are trying to make a  valid point but yet to clarify me more. However, an investor buying once is not actually a wrong way to invest so long as they have the mindset of holding for a long period of time but the question now is how much Bitcoin do you think an investor will buy once and hold for a long period of time. Perhaps, an investor who wants to buy once will be a lump sum method which  will either be a one third or one quarter of Bitcoin so that it will yield something in the future but buying this number of Bitcoin at once is not really advisable because it can have an effect in one's financial status, that is why it is advisable to buy little by little using the DCA method so that we don't feel the effect that much.
If an investor have the financial leverage to buy a very huge chunk of Bitcoin at once, without it having a dent on his finance, it's not a wrong thing to do in my own understanding.
The most important thing is having the finance available to fend for your daily needs and an emergency funds to address any emergencies that may arise in the future, that's it.
Am saying so because I knew of someone that is a contractor, he only buy's when he hit a contract, not regularly but when the funds is available he buys, and he has been able to accumulate a good stash of Bitcoin with that.
The DCA accumulating strategy is mostly meant for those investors that have decretionary income coming in weekly or monthly and we all know that not everyone has the leverage of earning such way, but the most important thing in my own opinion here is buying Bitcoin and not tempering with it in the future
As a newbie or someone that is new to bitcoin investment, your attention should be more focused on accumulating bitcoin with the DCA strategy because it will help you to accumulate bitcoin consistently at any given price and also help to control your emotions since you are not yet used to the volatile part of bitcoin. Since bitcoin is a long-term investment, both investors who are using a lump sum, buying the dip, and the DCA strategy to accumulate bitcoin need to do that with their discretionary income so that they will comfortably sort out their daily expenses, which will allow them to hold their bitcoin investment for a long term since they didn't use the money that is allocated to solve their daily expenses to invest in bitcoin.