Post
Topic
Board Speculation
Re: Buy the DIP, and HODL!
by
MusaPk
on 26/01/2025, 17:47:03 UTC
Good explanation, it is a precise calculation and does not deviate at all. I agree with you that lump sum is a strategy for those who have extra money or in large amounts so that investors can act with a single purchase with the amount of money they have.

DCA is suitable for the long term with net income after adjustments to living expenses or discretionary income. So the steps taken by investors with the DCA strategy will take a long time, either 5 years or 10 years.

But from what has been explained with detailed calculations, of course large money is better to use the Lump sum strategy, in addition to saving purchase fees, Lump sum also saves time but the determination of the execution price will fall at one price only.

However, with DCA we may spend a lot of fees on each purchase, but our entry will not be fixed at one price because the purchase spread lasts for a long time.

The benefits are not much different, but that is a good difference and may be a good choice to apply along with following up on purchases for the next 10 years.

We read everywhere on Bitcointalk that DCA is best way to invest in Bitcoin. To understand exactly what DCA is and how it benefits us, we have to put some effort by calculating results of DCA on previous Bitcoin prices. There are different tools which can help you in calculating results of DCA, three of them are:

https://dcabtc.com/     

https://costavg.com/   

https://dcacryptocalculator.com/     

We can cross check results of DCA on these three sites listed above. With DCA we can go bullish in buying Bitcoin when we have extra cash or if we see that price has taken dip. One thing is also very clear that whether we go for Lump Sum or DCA, it must be for long term i.e. for 5 years or more.