DCA strategy is seen as one of the best investment strategy because it gives you the opportunity to accumulate Bitcoin at every price as we all know Bitcoin rise and fall the price fluctuate so using DCA strategy will make you buy at every price high and low.
Using DCA strategy to accumulate will also make you enjoy the process of Bitcoin investment.
DCA also eliminates the pressure of trying to time the market or predicting it.
Lastly by sticking to weekly or monthly accumulation of Bitcoin reduces emotional decision making the DCA strategy promotes discipline in investment, there by removing panic from investors during dip and also making them to focus only on long term investment.
This is all true. Regular buying is good for anyone who is still trying to build up their bitcoin stash and they consider themselves to be needing a lot more bitcoin. Some level of certainty comes from continuing to buy which is that your BTC stash will continue to get larger, even if the BTC price is likely fluctuating a lot along the way, you are still able to figure out how aggressively you are able to ongoingly buy bitcoin at regular intervals no matter the bitcoin price...and perhaps 4-10 years or longer down the road, you will have accumulated a decent amount of BTC and even potentially put yourself at an advantage in terms of the various options that you have because of your having had accumulated bitcoin..
yet your profits are not guaranteed, even if you did everything perfectly.Since you said that profits are not guaranteed, is it not going to be problematic for an investor who have been investing within 4-10 years to find out that within the years of his hodling, he was not able to achieve any profits from his investment because the reason why am asking this question is because majority of investors have the mentality of making profits in the long run.
You still have to figure out ways to size your investment while accounting for various risks, whether it is your own execution risks or other risks that are related to the asset, and surely bitcoin is not the same kind of an investment that it was 10 years ago. Sure there are aspects of bitcoin that are the same or similar and there are aspects that are different, including any of us who had been investing into bitcoin, we have to figure out the extent to which we are going to reallocate out of bitcoin and into other things or if we are going to keep investing into bitcoin without reallocating out and into other things.
Also you should always be attempting to account for
your own personal factors, and your own personal factors are not locked in, they change with time, with your age and health, with your income, with your expenses, with your other investments, with your skills and temperament and perhaps some other factors.
I am not saying that there is any correct answer, because if something goes wrong with your bitcoin investment, nobody is going to rescue you if you had not figured out ways to protect yourself in various ways.
So are you trying to tell us to only invest with the idea of building our portfolios instead of having the mentality of making profits from our investment?
My opinion is one of many, and my opinion might even change from time to time, and surely I frequently suggest that guys invest in accordance with their own personal financial and psychological factors, while at the same time I frequently suggest that bitcoin is amongst the best, if not the best investment that is available to everyone (and anyone) around the world, so there is likely going to be value in figuring out cashflow management systems and backup fund management systems that facilitate your being able to invest as aggressively into bitcoin as you are able to without overdoing it and wrecking yourself. That still does not mean that bitcoin is guaranteed, and each of us has to figure out our allocations and perhaps how to build a bitcoin position.
Surely, I also suggest that once guys get to a point of being overallocated in bitcoin, then they are likely in a position to start to sustainably withdraw from their bitcoin in perpetual ways (I even have
a thread on the topic)...yeah it is not guaranteed, but it surely seems like a great potential situation if guys can get their bitcoin holdings to such a status.
Because it will really be so disappointing for someone to invest and not able to make profits along while building his portfolio after investing for years.
Well, hopefully you are able to figure out ways that you can balance matters out, since it would also be disappointing if any one overly invests into bitcoin and things do not end up going as they expected, whether they personally screw it up or if for some reason bitcoin does not end up appreciating in value...however any of us might end up measuring the value of our bitcoin holdings.
Surely I like to use the 200-WMA (for the bottom price) - but of course, we do not buy and sell bitcoin at the 200-WMA, we tend to buy it at spot price, so I frequently like to compare the 200-WMA to spot price in terms of my own valuation and also strategies of what to do, including if I might assume that at some point guys get their bitcoin holdings to points of overaccumulation.
And, don't get me wrong, since I consider bitcoin to be a life time investment, and surely there are folks who consider that if bitcoin is "not guaranteed." then they are not going to hold it, which is an extreme opposite position, since I surely consider high allocations to bitcoin to be good thing, such as beginners should be able to start out by aiming for 5% to 25% allocations into bitcoin, and even to allow their bitcoin holdings to ride instead of reallocation, yet of course, they have to also be considering what their other investments are and if they want all of their value to be in bitcoin or perhaps bitcoin and dollars and to question the extent to which they might want to make sure that they reallocate from time to time, in the event that they might be overexposed to bitcoin. I consider diversification to become important later on our investment, yet it may not be necessary in the beginning stages so long as guys understand that bitcoin is also not guaranteed, even if they might be striving to aggressively invest into it.
You should be able to figure out ways of talking about (and thinking about) bitcoin without proclaiming that it is guaranteed to be profitable in the long run (such as 10 years or more), when that truly is not the case.