Post
Topic
Board Speculation
Re: Buy the DIP, and HODL!
by
Proty
on 13/03/2025, 07:10:36 UTC
I think there is need for we to  correct one impression that has been created in this place. Although I may be right or wrong, but I strongly believe that I am right on this. The impression that I have be observed here, is the fact that many people here believe that whenever we hear DCA method what comes to our mind is buying of bitcoin once a week or in a month on regular basis. Yes it's true, but the impression I want to correct is that, "you can buy your bitcoin multiple times in a week or in a  month, and it will still be the DCA method. As many times as you wished to buy bitcoin in a week or month it's still DCA. Provided you are doing it regularly. What qualifies it to be the DCA approach is because of the regular buying you are making. Not doing it once or twice and give a gap of several weeks or months before buying again.
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Well it is true as long as you are buying bitcoin at regular intervals with fixed amount of money it is still dca strategy let's take for instance if the price of bitcoin for 4 days was $82k, $72k ,$85k and $65k an investor is buying with $10 every day for 4 days the investor has invested $40 dollars into bitcoin.when the price was $82k, bitcoin accumulated is $10/$82k which is equal to 0.000121btc.for $72k is $10/$72k which is 0.000139btc and for $65k is $10/$65 which is 0.000154btc.now the total BTC accumulated for this 3 days is 0.000414btc .To know if the investor is actually doing DCA ,lets get the average cost for each BTC , which is $30/0.000414. which will be $72463 per BTC. So I believe this my explanation has made it more clear for those that are entertaining any form of doubt that buying bitcoin every day is not dca,it is DCA as long as the investor is keeping up with DCA rules.