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Yes, you are right, definitely we all have our own decisions to make in terms of accumulating and how to invest in Bitcoin, considering which strategies that is best for us, because whichever way we know the number of discretionary income that we have, but for me that is a pleb and a low income earner if you should ask me I prefer approaching DCA method to accumulate my bitcoin, because DCA will offer me more chance of accumulating more bitcoin fraction by fraction in the situation that we find ourselves right now that the price of bitcoin is high, with the DCA I can be able to buy consistently as little as it is, and I can keep sustaining my investment through that strategy.
There are guys and folks who have been investing in Bitcoin for quite a long time now, and before they came into Bitcoin they have previously have other business that gives them money and they will not have any problem accumulating Bitcoin and they are wealthy and rich they will have an intention of buying Bitcoin through lump sum and they can decide to be more aggressive so they can stack up more Bitcoin into there portfolio, and they have been doing that without no hesitations. What are my thoughts, I’m thinking it’s all depends on our level of financial capability in discretionary income.
The mere fact that some folks have some other investments does not necessarily make them rich, even though they may appear rich in the eyes of folks who had not established any investments.
Most likely all around the world normal people want to be able to have some assurance that they are going to be able to stop working some day, whether they have government subsidized retirement programs (such as social security) or pensions and/or other retirement funds. They also might have to build their own retirement fund or maybe to have their own retirement funds as a back up or way to supplement any government and/or employer subsidized funds.
So surely there can be levels in regards to the various retirement funds that some folks might have had been able to establish through their years of employment.
There are some folks who might not have much if any investment or retirement funds, but they might expect that they have family funds and/or assets and/or property that they will inherit upon the passing of their elder relatives (parents).
Surely there are also folks who are rich in the sense that they are already starting out rich and maybe even somewhat supported by their parents or put into positions of trust that relates to their parents wealth, and so that may be higher levels of wealth that may or may not require work in order for them to earn their income.
These days many folks have to invest if they want to have some possibility of preserving whatever wealth they might have gained or even to have some chances to be able to stop working in the future (or at least to choose their kinds of work), and so there is some assumption that as long as a person is able to increase his discretionary income, then if he is able to invest into bitcoin, then anyone can get to a status of either being able to quit their work or to greatly discount the amount of work that they have to do in order to start to draw upon their bitcoin investment. and yeah, of course, for poorer people, they need more organizing and smarts about them, including perhaps being careful not to be gambling with their principle while they are trying to build it.. since gambling and/or trading is not a good way to build principle.
Anyone who has lump sum amounts of funds has the option to choose from 1) invest right away, 2) DCA and/or 3) buy on dips. A person with lump sum should at least consider all three of the strategies in regards to his lump sum amount, and surely he has to figure out his own balance in terms of how to treat such funds.
Many times people (including newbies) do not have have lump sum amounts available, so the most practical way to start it DCA... yet it may well not make sense to defer investment with DCA if the lump sum amount is already available... and so they should at least consider how or if to deploy the other two strategies. and they are ultimately the one responsible for their own choice whether they choose well or if they screw it up. there is probably no exact one best correct choice, even though it is likely bets to be tailored in accordance with the
person's personal factors.. which they have to figure out, in case they don't already know them at the time of starting out in their investing in bitcoin.
Honestly, that point really hit home. Not everyone has a lump sum to invest, but for those who do, it makes sense to pause and think things through....Whether you DCA, buy the dip, or go all in each option also has its own pros and cons. What matters is understanding your own situation and risk tolerance....
From the little things I have learning here , I have been able to realized that it is smart to mix strategies instead of trying to guess the perfect moment. A bit of structure with a bit of flexibility. Just don’t sit on your hands doing nothing, Bitcoin rewards action and consistency, not hesitation......
Sometimes it makes more sense to attempt to describe some hypothetical person to show how the ideas might be batted around and applied... and you can even imagine what you might do... Let me give an example and you might want to describe how you might approach the situation if you were such a person or if you were giving bitcoin advice to such a person.
Let's say that the hypothetical person is in his mid 30s, and he makes about $25k per year, and he had been building various investment (maybe something like stocks /index funds) over the past 10-ish years, so he invested about $25k over the past 10-ish years and maybe currently his investment portfolio is worth right around $50k.. So he is doing pretty good to have 2x his annual salary invested, and he had mostly been investing about 10% of his salary about $50 per week, and so over the years he had also established back up funds in cash that is about 3.5 months of his expenses so that fund is currently right around $5k (he considers his monthly expenses to be right around $1,400) .. so he heard about bitcoin, and he had been considering the possibility of having his new investment go to bitcoin. He also would be fine to take 10% from his already established investment portfolio and put it into bitcoin (which would be $5k-ish)..
He is also considering that if he invests $50 per week into bitcoin he is taking that away from his other investment and putting it into bitcoin. He also knows that he is going to be receiving a work promotion that means that 3x per year he is going to receive lump sum performance bonuses that could be anywhere between $1k and $3.5k depending on how well he does with his work performance (and how well the company does overall), so he was considering that he would be able to invest those anticipated bonus amounts into bitcoin too.. but he won't know exactly how much they are going to be in advance.. but they are expected to come around the middle of each of these months 1) August (2nd quarter), 2) January (3rd and 4th quarters) and 3) April (1st quarter).. What should the guy do?