Quote from: Agbamoni on Today at 03:15:24 PM

Quote from: boyptc on March 19, 2025, 08:23:22 PM

Quote from: Mr Reporter on March 19, 2025, 08:06:00 PM

Well buying at the dip and also investing in the DCA strategy accordingly can be combined but it kind of essential to understand the importance of each approach

If you buy the dip, you're already considered investing. So, whether you DCA or simply buy the dip, there is not a lot of difference and even can be said of the same thing.

I have never heard anything more wrong than this in this thread. Buying on dips and DCA is not the same thing. If you are buying on dips without any other consistent strategy, then you are basically trading and gambling with the market price on when to key and when not to. But when you DCA you are consistently buying Bitcoin into your portfolio without considering the market price.

So literally;
Only buying on dips = waiting on/timing the market = trading
DCA = consistent buying = investing
DCA and buying the dip if there is more discretionary income = consistent buying and taking advantage of the dip = investing.

I've been seeing DCA strategy everywhere on this thread and I'm surprised how many people know about this great strategy but don't know how to explain it bit by but to those that have not concrete idea about it.
The Dollar Cost Averaging(DCA) is a type of investment strategy that allows us to buy a particular asset(Bitcoin) on a consistent basis at a long term duration. Anyone that intend to use the DCA strategy should be prepared to hold Bitcoin for a long term not just holding for few months and selling because of impromptu event.

Just imagine you planning to invest about $10k on Bitcoin for next year investment. Instead of just buying at any price or looking for a dip before you buy $10K worth of Bitcoin, it's better to the the Dollar Cost Averaging to split the fund into smaller units so you can purchase Bitcoin at a consistent pace over a long period of time.

Let say you intend to invest $10k into Bitcoin for next year investment. Since we have 52 weeks in a year, you can divide the fund into 52 places so you can be buying Bitcoin once a week at different prices.
A small calculation;
$10k ÷ 52 weeks = 192.3
That means, every week you'll be buying $192.3 worth of Bitcoin for a straight 52 weeks(This can be very first day of the week or every weekend).

Why is the DCA strategy very important? This strategy helps you to avoid buying at wrong timing especially for those that will be holding for a long term basis. It also encumber the impact of short volatility in the market. It create a better opportunity for you to buy low as price keep ranging just like what we have been seeing in the crypto market for the past few months now.