Post
Topic
Board Speculation
Merits 1 from 1 user
Re: Buy the DIP, and HODL!
by
WhoYouCantKill
on 03/05/2025, 09:07:38 UTC
⭐ Merited by JayJuanGee (1)
if you do not deposit consistently, it will take a long time to build your portfolio. And you will fall behind your target level.

Before starting investing, you need a stable income. So that you can buy regularly or consistently. You can buy consistently by adopting the DCA method every week or month. If you have the money to buy regularly or have the ability to buy consistently but you are not consistent or consistent, then you are not a good investor. You can buy even with $ 5 using the DCA method.
Though consistency if can achieve for your investment entries and Bitcoin accumulation would be very great and helpful for your portfolio, it does not harm your portfolio and chance to succeed if you can not manage consistent accumulation like on weekly or monthly frequency.

Because consistent or non consistent accumulation, it depends on your financial status, and available investment capital. If you can not have stable and consistent income, your investment capital for entries will be affected but it will still be good for your portfolio if you can do accumulations even not consistently.

Like your initial plan is accumulate bitcoin monthly with investment capital as $200, but you fail to manage it in 3 months. 4 or 5 months later, you can invest $800 or $1,000 to Bitcoin, it will be still very good even your entry price can be different a litle bit than invest with consistent $200 DCA monthly for 4 or 5 months.

You can do whatever you like, yet I think that it is better for newbies (especially during their first whole cycle - 4 years) to be investing into bitcoin every week, so in your example of $200 per month, then that would be right around $46 per week, and there would be little to no reason to be fucking around saving for dips that might not happen, except maybe if you were to want to invest $35 per week and then save $11 per week for buying dips, then that would be reasonable and/or acceptable for a newbie to establish such a buying on the dip with with up to 25% of the amount of money that is available and allocated for bitcoin buying.
The DCA is indeed the best option for Bitcoin accumulation, especially for new investors as it helps to get right into investment immediately without actually having to wait around for the perfect time to invest. When an investor invests a fixed amount of money at regular intervals, like $46 per week as you suggested, he automatically takes advantage of the DCA, which of course helps to reduce the effects and impact of the Bitcoin market's volatility on your Bitcoin investment.

Rather than completely waiting for a market to dip first before you go in, I believe your idea of allocating or diversifying a fraction of your investment budget is also spot on, for example. If one's weekly budget for investment is $100, they can try investing around $80 immediately to Bitcoin, while saving the other $20 for buying DIPs. This hybrid approach helps the investor to take advantage of the opportunity to buy when the price is lower while still maintaining a consistent accumulation approach/plan. This approach helps also helps the investor to ride out or reduce the chances of making impulsive decisions and sticking to your original accumulation plan.