Post
Topic
Board Speculation
Merits 1 from 1 user
Re: Buy the DIP, and HODL!
by
Sim_card
on 25/01/2025, 05:40:21 UTC
⭐ Merited by JayJuanGee (1)
I am not proclaiming that rich people don't do DCA, and in fact I agree with you for the reasons that I already stated that there could be a lot of cashflow management reasons to employ DCA, yet if rich people get lump sum amounts coming available to them and they have already decided to invest into bitcoin, then they may well not be advantaged by spreading out their amount rather than front loading into BTC.   Sure, if we have had a lot of BTC price rise in recent times, there may end up being a mixed strategy to account for dips rather than buying all right away,  so there could be structures to buy dip and also DCA to spread out, yet they also may want to buy some right away just in case a dip does not happen... and surely other particulars regarding the extent to which they have other BTC or if they have other investments and perhaps other personal factors would help them to figure out how they might want to tailor their entrance into bitcoin, the extent to which they might front load and invest right away or to defer by buying dips and/or DCA.
DCA (Dollar Cost Averaging) is one of the most effective strategies for investing, so this effective strategy is used by everyone from wealthy investors to those with relatively little money. It is different for those who don't know about DCA investment till now but those who know about DCA investment strategy should definitely invest in DCA strategy instead of investing in other strategies.

Any bitcoin investor can use whatever strategy that suits him as long as he keeps hia bitcoin accumulation journey ongoing. Since we havethree accumulation strategy, I think that it's better, one don't focus on using only one strategy to invest in bitcoin, especially when you have the opportunity go to implore other strategies. It's good that as a bitcoin investor, you should be flexible enough to tweak to other strategies based on your financial situation playing around you at that moment.

I love using all three strategies, but this sbould be based on your preparations and proper understanding of how to use them at the right time so that you don't mess things up for yourself. I have my DCA regular weekly buying ongoing, and I stil have my reserve funds to buy when there's a dip. If I get bonus from work or I receive gifts in cash, I lump sum right away.

On my last birthday, I was able to realize a gift in cash of $1000. What I did was to divide the funds into three parts. I used $400 to luml sum right away, I use $350 for DCA to spread across the weeks and I kept $250 to buy at the dip. The fact is that any investor using these three accumulation strategies will outperform an investor using only DCA strategy because DCA is a slow process to grow your bitcoin portfolio, but it gives you room to buy more Bitcoin overtime, because you are buying with a disciine mindset with persistent and consistency overtime.