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?
If I were to be the one advising him as I have also learning too , I will say he is in a great position to start small and steady. Allocating 10% of his portfolio ($5k) to Bitcoin is smart. He can redirect his weekly $50 investments into BTC for consistent exposure (DCA)..... For bonuses, invest part immediately (30–50%) and DCA the rest over time. His emergency fund looks solid, but he could top it up a bit if needed.. ..Overall, he should thinklongterm.......Bitcoin’s volatility brings risk, but also huge upside. No need to go all in, just in enough for it to matter.