Post
Topic
Board Speculation
Merits 1 from 1 user
Re: Buy the DIP, and HODL!
by
Sticky Bomb
on 09/01/2025, 10:01:25 UTC
⭐ Merited by JayJuanGee (1)
Different people have different strategies in terms of investment and everybody have a particular strategy that work for them.
Buying Bitcoin by DCA does not necessary mean that the investor have limited capital, most people that buy Bitcoin by DCA still have the capital for lump sum but one of the reason why some people prefer DCA to lump sum is that some people see lump sum as a method that is risky because of the volatile nature of Bitcoin which they cannot possible tell what the price may be in the future. So to avoid any uncertainty in regard to dip they see DCA as precautionary way of buying Bitcoin than lump sum which requires buying Bitcoin at once with the capital at hand without considering whether the price will dip or not.

Buddy yea people decide to chose whatever strategy they are comfortable with but in all many people still prefer DCA method no doubt, I don't understand what you mean by lump sum being risky because of volatility, mate volatility is Bitcoin thing and I believe that an interested and a ready investor that understand the concept of Bitcoin will not want to buy with a lump sum amount just because of volatility I don't think you're right in this one, even though such person decide not but in lump sum does that stop volatility, volatility favour both upsurge and dip but that wouldn't deter anyone from buying in a lump sum if they have the lump sum amount ready at anytime.

-snip-

Quite agree with what you said that people who do not choose to invest with a lump sum are not because of the volatility of the bitcoin price, but it could be more about him choosing to play it safe and less stressed by doing DCA. It's like someone who is new to Bitcoin and only has basic knowledge, but he wants to jump into Bitcoin investment, he chooses to do DCA more to invest gradually either daily or weekly, it's like testing the waters before fully committing or involving his money completely in Bitcoin, and while seeing how his risk tolerance is on that.
It is quite fine and normal to engage with caution at the beginning of your involvement in Bitcoin until you're fully convinced that it's a good investment, I did it myself and learned over time of it's credibility. No one comes into Bitcoin as a newbie figuring it all out, but we get better in our knowledge of Bitcoin over time as we remain consistent.

The greatest error is to do nothing and just observe. You get nothing from doing nothing and you don't get better at something too if you aren't action mined. Potential investors who have discretionary income available, but refuse to get involved in Bitcoin end up in regrets as Bitcoin price heightens. The best thing is to start small and the more you learn and get convinced, the bigger your commitments to accumulating Bitcoin more aggressively until you acquire a decent stash of Bitcoin.