The idea and concept of the Lump sum buying entails buying right away, it has alot to do with investors decision to invest right away with the available huge amount without considering market condition, maybe you are describing buying the dip instead of a lump sum buying,
I mean, if the market condition is favorable, then yes, 'Huge sum can be invested', this is lum sum investment all by itself.
Investing at a favorable market price is a plus point 'if achievable,' otherwise, it depends on person to person 'depending on the market condition they want to invest in.'
I said, it depends on what price the person wants to invest in, that's why 'Person to person', majority of traders know, not everyone will buy at a certain range, and not every market condition will be favorable, for everyone to invest.
Part of your problem xOrpian is that you are using terms differently than the way that other guys are using terms.
Yeah. You can do whatever the fuck you like in terms of trying to time the market and anticipate if there is a dip or not.
If you think that buying the dip works to your advantage, then go ahead and use that method.. .If you are saving a lump sum in order to buy the dip, then you are calling what you are doing lump sum, but you are buying the dip... so you try to act as if you are doing something special and innovative, and guys here don't necessarily agree that you are going to be better off to try to to time the market and to buy on dips rather than just buying regularly and all of the time, even though you are correct, you can do whatever you like including if you think that you are smarter than everyone else, even though you have only been here a week.
Sure, it is possible that you have been investing in bitcoin and even investing in other kinds of assets longer, so we cannot necessarily presume that you are new to investing, or new to bitcoin or even new to this thread if you might have had been here under some other name... but as far as your forum registration goes you have only been here a week or two.
In regards to accumulating bitcoin, there are three ways to buy bitcoin, which is DCA, lump sum or buying on dips.
Some people consider trading to be a way to accumulate bitcoin too, which would be selling and then buying back cheaper, so yeah sometimes the ideas of trading and investing will be argued about. In a thread like this, there is a bit of an investing skew, and sure there is an investing skew to all of bitcoin, since bitcoin is likely better to invest rather than to try to trade, even though surely there are guys who think that they are smarter than everyone else and they try to trade bitcoin.. which yeah they have rights to do whatever they like.
Frequently when we talk about DCA, versus lump sum versus buying on dips, we talk about them as three different ways to consider buying. There is no such thing as lump summing that is buying on dips, because all that you are really doing is buying on dips.
So the idea of lump sum has to do with whenever you might get some extra money, and you are deciding whether you are going to buy right away, or whether you might defer buying by DCA or buying on dips (dips that might not end up happening).
Buying right away is a way to treat the lump sum.
Let's say if you already have a $30k per year income and you had been buying $100 per week for 2 years, so that means, that you had invested around $10,400 into bitcoin. $5,200 per year x 2. Now if all of a sudden you received some extra cash, such as a $2,600 bonus at work, then with that extra cash you could decide to authorize yourself to invest it all into bitcoin. ... and so you could decide between 1) DCA, 2) lump sum (buy right away) and/or 3) buy on dips. You can decide however you like between those three buying methods, and that $2,600 would equal half of the amount that you had invested the previous year into bitcoin, and maybe you already know that you are continuing to invest $100 every week into bitcoin whether you had gotten the bonus or not.
We might even assume that if you had already been investing into bitcoin for 2 years, you had already spent time making sure that you have emergency funds and other kinds of reserve funds, so then we might assume that you have had time to strengthen your cashflow management systems and skills, yet surely some guys get distracted into shitcoins and into trading, so not everyone breaks their bad habits, even after being in bitcoin for a couple of years.
If you want to invest 'Lump sum' amount at current price, sure you can do that. If you want to buy in bear market, bull market, after a certain news, infinite possibilities. Then yes you can do that too.
Yes, each of us can do whatever, we like, yet we likely realize that some kinds of behaviors are smarter than others, so frequently we can bat around ideas about what we might consider to be better practices, and you are free to follow whatever practice that you like, including you are free to proclaim that whatever you are doing is better than everyone else, if that might be what you are wanting to achieve.
Sometimes newbies come and they want to lecture, yet if guys do not really know you or your posts, we might not really know what you are talking about, especially if you are using terms in ways that seem different from how the terms are understood.
So yeah, if you are talking about buying dips, then surely there are trade offs in regard to buying dips, when the dips might not come and you might end up engaging in inferior practices, especially when it comes to bitcoin accumulation, unless you might be a trader, then of course, you might not even understand or appreciate what bitcoin is if you think that it is merely an asset to try to trade.
I don't mean everyone should follow my recommendations or how I would invest. I am laying out possibilities and my opinion (no offense to anyone).
You have not really laid out anything, except maybe trying to describe that you believe that it is better to try to buy on dips,.. but yeah, whatever you were saying remains a bit since you have been a bit unclear since your use of language has been unclear when you are describing buying on dips, but you seem to be describing that as lump sum buying.. so surely whatever you are describing remains a bit of a puzzle....even though Tmoonz seemed to be trying to help to sort out what you were saying...
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Perhaps just like I said above bitcoin in my opinion is a paradigm that shifted the world thoughts from a fiat system to a digital currency which has more of the real definition of money yet is under adopted in terms of world class investment however it holds more potential for profit for both individuals who grabs the opportunity from the onset to invest in it even those who are yet to invest including institutions and governments who are probably getting to hold a good percent of bitcoin in other to keep the centralisation system intact yet bitcoin seems to be deviant in terms of manipulation as much as fiat printing.
Of course, bitcoin is offering something new that has never been previously available, so yeah, we had not been able to hold and transfer digital value prior to bitcoin because of the duplicatability problem which was solved by the way bitcoin is set up to decentrally confirm and verify the digital scarcity.
Sure bitcoin has solved this duplicatablity issues in terms of comparison with fiat yet I would add that into in for some reason has much more definition of money in the overall definition of money hence I applaud for this reason yet it's more of a paradigm that shifted out thoughts from fiat (physical values) to digital values (bitcoin).
I doubt that we are getting anywhere if we merely consider bitcoin to be digital rather than physical, even though sure, there is a digital component, but the digital does not mean shit, if it were able to be duplicated.
Sure bitcoin gave individuals who see it's potentials the opportunity to move from one financial class to another mobilising a good number of people in the world to a different financial state including me yet I'm considering to be very under invested in bitcoin yet it has proven the trust however if anyone is yet to see this potentials of bitcoin then they are probably blinded with the fiat system but in some ways some for some restrictions in countries are yet to find out all this about bitcoin. As long as one is able to pay their daily expenses yet with a slight knowledge of bitcoin hence it's most encouraged to grab some good quantities of bitcoin and store in a good wallet (cold storage) hence it's probably going to profit them.
No doubt, the earlier that folks get into bitcoin the better for them personally, even though we still have around 99% of the world's population with no actual direct price exposure. They do not own any and they have none on exchanges either.
Perhaps it's still not clear to me that with the large exposure of bitcoin in my consciousness yet we (bitcoin holders) are just within the population of 1% in the would this of course keeps me up all night trying to figure out how much possible I could hold a better percentage of the 21 million bitcoin yet governments are likely to put run individuals on this but however the least individuals hold us quiet a good step towards class mobility.
I am not sure how helpful it is to attempt to overthink the matter, but sure, if you are a young person who is still trying to figure out what career he is going to have, you are going to have to figure out what role bitcoin is going to have in your world and to figure out your allocation or how you are going to hold onto it.
I have a hard time imagining that you would be able to make it to fuck you status in your early 20s, yet you still might choose to have work and/or activities in bitcoin, besides your just holding and accumulating it... but yeah, if you keep accumulating it, then surely at some point you might consider that you have enough bitcoin or more than enough bitcoin and you might decide to start to live off of your bitcoin, but you are still likely going to need to figure out your various systems for doing that based on your expected lifestyle and what kinds of activities that you might want to do, if you might end up choosing not to work, even though you are a young person.
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Young folks this days seem to be claiming to be too late to buy bitcoin yet they find themselves convincing each other to go into some kind of shitcoins trying to shift themselves to the early days of bitcoin hoping to be profitable through gambling with shitcoins but perhaps if folks get aggressive enough or even consistent with DCA they might even in/with a short period of 4- 10 years be able to accumulate enough bitcoin to hold in a long term.
Yes, a lot of young people get distracted into shitcoins, and that will likely be to their detriment. Surely, there will be some who come over to bitcoin, and so there are some abilities for young people to make those kinds of mistakes and still be able to recover from their mistakes.
Of course some guys got into bitcoin for the fact that they got caught out with shitcoins and fell in to regrets having to run back to bitcoin and this mere fact that most of the young folks are still gambling with shitcoins trying to figure out there way means lots more guys will be able to find themselves with bitcoin after a period of time yet such time must have been wasted yet it's still some kind of eye opener for younger folks like me.
I doubt that shitcoining is going to be going away, so if you are young you could still end up getting lured into it.
and of course coin security is very paramount but yet if one finds themselves in the early accumulation stage then self custody is probably a second step towards seriousness in holding for a long term yet the first step is to begin with the least one can afford to do without in a certain length of years not necessarily what one can afford to loss however it's most encouraged personally to start first and every other steps will be figured out along the line.
I think that personal financial (cashflow) management is much more important, and still guys can figure out how many BTC they have that might trigger them to put some of their bitcoin (if not most, if not all) into self-custody. I personally think that there will be some advantages to continue to use various custodial solutions for some portions of stash and when transacting BTC with others, yet there will also be value to figure out how to engage in practices to transact directly with others, whether businesses or individuals.
I have for some reason figured out throughout my time in the forum that coin security happens to be taking more serious once on have heard some amount of bitcoin that might be equivalent to $500 -$1000 worth of bitcoin in an exchange wallet or account then one is due for setting up a cold wallet or storage as long as one is in the long term investment mindset yet it's much more of financial balancing that comes first in terms of all investment figuring out how much aggressive one would be, how much allocated from your income would be set aside for bitcoin and how much of expenses one needs to cut down and setting up emergency funds etc as must important however coin security after all this should be made priority once one is convinced of long term investment.
You can learn about various kinds of self-custodial solutions, and since various kinds of wallets are still being developed, you may well end up getting exposure to various kinds of wallets, and some are better than others. Some can be used on lightning network and others not.. And some folks want to learn about running nodes, so there are all kinds of things that you can continue to learn (and perhaps teach others) about bitcoin.