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.
There are many investors who are afraid to invest in the beginning, they are afraid to invest in Bitcoin due to market volatility, for them, investing in DCA on the one hand makes the investor confident and on the other hand they are able to learn more about Bitcoin. Because of which they increase the investing amount in the future. By doing DCA, an investor benefits in all areas. Some new investors may be encouraged to invest in other cryptocurrencies without increasing their Bitcoin investment because they do not have enough money. But if they plan to do DCA, they can only hold Bitcoin regularly. Applying this strategy, an opportunity will be created for long-term holding, which can make the investor profitable.
For those who are interested in lump sum investments, it can be difficult to hold Bitcoin for the long term. They may sell Bitcoin for a small profit, but those who plan for the long term by doing DCA can be a strong holder. Stress free investing can certainly give the investor many advantages in holding it for the long term.
It is natural that there are many people who have little knowledge about investing and are afraid to invest. As the price of Bitcoin is constantly fluctuating, this kind of thinking is created among them, we should convince those people that Bitcoin investment is easy and a little bit of knowledge is enough to invest in Bitcoin. Also those who are interested in investing through DCA strategy from early stages should be aware that making your income source is the most important for your investment.
Investing through the DCA strategy means that your Bitcoin purchases will be consistent whether on a weekly or monthly basis. Also you don't have to wait for dip time to buy bitcoins. As a result, you can buy bitcoins even if the price of bitcoins is high and you can buy bitcoins even if the price of bitcoins is low.
Maybe this is the worst and most misconception of them all because you don't need huge amount of money to invest in Bitcoin. Investment can be started even with a small amount of money. They can start investing with a small portion of their income and when their income increases, their investment amount will also increase.
Those who sell bitcoin investment for small profit are not investors, maybe an investor aims to hold his investment patiently for a long time, even prolong his investment for at least 8 to 10 years.