Post
Topic
Board Speculation
Re: Buy the DIP, and HODL!
by
Uhwuchukwu53
on 06/01/2025, 20:15:27 UTC
These two companies mentioned by you have huge amount of money but they are adopting DCA in investment. Maybe this company has a lot of money with which they buy a lot of bitcoins at once but they are constantly buying Bitcoin. They sometimes buy more bitcoins and sometimes they buy less bitcoins. MicroStrategy recently announced that they will raise another two billion in capital to purchase Bitcoin. They are currently buying small amounts of bitcoins but their goal is to buy bitcoins regularly.

Every investor should buy Bitcoin regularly and hold their investment for a long time, just as these companies regularly buy Bitcoin. If someone has the money to buy more bitcoins then he will buy more bitcoins and if someone has the money to buy less bitcoins then he will buy less bitcoins. Still he should buy bitcoins regularly.
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There is no much to puzzle on this, right from time to time the direction to accumulate Bitcoin has always accord on this buying gradually if you can't afford lumps sum that most people felt it's those that have money that invest in Bitcoin, the DCA strategy which has given room to all kind of investor  even the so called lumps some required investor to to keep accumulating while holding for long time in order to get a good profit at the appreciate time because this regular buying or accumulating for me can covers some lapse most the one investor buys when there is ATH because the investor keeps buying regularly he can also buy at a period of ATL when the dip is experience and both situation can be merge to attain the required profit when the actual holding period is put in place.
First and foremost,  there is no method of buying bitcoin that is reserved for the poor or the rich, anyone can use any method to buy. It is very wrong when we make it look as if the DCA method is for the poor while lump sum buy is for the rich, such notion is wrong and misleading. The method of buying is just an individual thing which depends on what the individual is comfortable with and if we put forward this idea of DCA for the poor and lump sum for the rich, there could be people who have small discretionary income and who would prefer just putting them into bitcoin but might be discouraged thinking the money is too small. This will cost them the opportunity of getting started since they don't know that even lump sum can be made with small amount of money.

DCA method is no doubt a great method of going about Bitcoin investment but other methods can still be used to achieve similar results as the DCA method and even a combined method of DCA and lump sum can even be better depending on the market condition.
Of course, lump sum doesn't really mean a big amount of money its just buying all in one strategy, which a poor bitcoin investor can also do if he has extra cash from work or as bonus since he doesn't have any plan for the money. It's just that it is good that brand new investor keep his bitcoin investment ongoing overtime so that he can be building and growing his portfolio bit by bit and that's where the DCA strategy comes to play because it's flexible enough for anyone to accumulate easily and it disciplines the investor on how to manage his finances properly.

No method is not helpful or bad but it depends on the strength of your cash inflow, the level of your bitcoin portfolio and how long you have being accumulating bitcoin. However, using all three strategies is good but you need to know prepare for it and know the right to use them to avoid miscalculation that will lead to reducing the size of your bitcoin portfolio. Because that's the most important thing when building your bitcoin portfolio only to keep adding without reduction

Well I stand to be corrected but view your understanding over my post as misconception on discribing the lumps sum, there smaller investor who can't buy at once because they consider the lumps sum as huge investment in trying to buy once but using the DCA where one can buy gradually even with smaller amount depending on the individual ability make it more easier, I am not ignorant that others strategies is good based on choice of individual or investor but emphasize most on one that can accommodate all kind of investor without putting phobia before the investor. For instance using our domestic market to explain to a layman if I want to buy something like smart phone which I can't afford the money at once or even if I will if my source to avoid it is not enough it will make me to have a rethink of buying it no matter the value  but where I have an option of paying installmentally, I will be eager to rush in buying it this are the perspective I see lumps sum to DCA as this DCA serve to be more easier and reduce phobia to whoever that may not lumps sum due to how it's financial credibility could be.