Post
Topic
Board Speculation
Merits 1 from 1 user
Re: Buy the DIP, and HODL!
by
Frankolala
on 15/02/2025, 14:04:18 UTC
⭐ Merited by JayJuanGee (1)
I have been holding Bitcoin weekly, because holding Bitcoin weekly is the most important and effective than holding Bitcoin DCA monthly.
Your statement is not entirely correct because even if you adopt DCA, everyone may have different ways of purchasing Bitcoin, such as someone buying on a weekly basis and someone buying on a monthly basis. You can never argue that buying Bitcoin on a weekly basis is more important or effective than buying Bitcoin on a monthly basis. If you think so it may also seem that buying Bitcoin can be much more important or effective every day.

In fact everyone has to pay a withdrawal fee when buying Bitcoin, so if you buy Bitcoin every day the transaction fee will increase, if you buy on a weekly basis the transaction fee will be slightly lower and if you buy Bitcoin on a monthly basis, the transaction fee will be even slightly lower. Still it may be dependent on the investor because if he has a good Cash flow, he can buy when he wants.
You can buy bitcoin weekly, biweekly, monthly or quarterly (front loading). It depends on when it's convenient for you based on the availability of your income.

However, if you're buying weekly or monthly doesn't count anything on your transaction fee, except if you're buying from $500 and above whenever you are DCAing but however, the fee wouldn't be high to send it to your self custody wallet because it's better that way. But if you are buying with little amount like $10- $100, you will end up using the same fee to send your bitcoin to your self custody wallet from your exchange because you are to accumulate your bitcoin in your exchange to reach up to $500 before sending it to your self custody wallet whenever it gets to that amount.

This is to avoid too many UTXO in future so that it doesn't eat up almost all your profit when transaction fee is very high in future. Imagine those days when the blockchain is been attacked by Runes, transaction fees was fucking expensive, at that time thoss DCAing was accumulating it in their exchange accounts.