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Still, either way, when you have the resources, you buy the
To me, it seems better if guys attempt to try to be purposeful with the extent to which they might be buying extra bitcoin on the dip, since it seems that whenever money is available to buy the dip, that money has either been purposefully set aside for buying the dip or it was a result of some kind of surprise income stream.
Surely, if it is a product of a surprise income stream, I have no problem with the idea of buying the dip with the money, even though there even comes a dilemma if the BTC price happens to be dipping, and then the person buys right away or how does he determine if more dip might come?
I think that if guys already have systems in place, then they are less likely to screw up their cashflow for buying on the dip purposes.
Surely guys who are regularly buying some kind of a budgeted amount of BTC each week, they may also decide to hold back something like 20% of their BTC purchase amount for buying on the dip. So then if they are already in the practice of holding money on the side to buy the dip, then as that money builds up they may well have to consider at which prices are they going to be buying the dip. For example, at a 10% correction, and then every 5% additional dip until running out of dip buying money.
Some guys likely consider that they are going to hold money on the side to buy the dip, and then they are going to attempt to maximize their use of such dip money by figuring out how much of a dip is a good dip, and that just seems like a fantasy to me. I personally think that guys should attempt to mostly be more systematic rather than imagining that they will be able to magically figure out the dip location. Such consideration is a two way strike. It is possible to save up the money for buying the Dip aside why waiting for a desired dip and later, probably while waiting for a dip level of interest, there are chances that it may not occur. At this point, an investor has options like; not investing anymore or either buying at a higher rate as to the previous minimal dip he expected to dip further.
Your DCA format still covers for every bitcoin amount by shifting focus from bitcoin price to fiat allocation. By this means, the Idea of holding money aside which could imply reducing your DCA allocation to save up for the dip or completely waiting for the dips before buying. Either way, there's a possibility of spending such funds on unplanned tasks if the dip of choice delays too long. So how has this helped.
That kind of dip buyings seems too much like fantasizing and a form of gambling.
Yeah sure, it is all a gambling format which most investors employ in bitcoin investment. When a person buys at dip of his interest and holds, he quickly sells off most times when he feels he has enough profits added to his investment which automatically justifies his gambling nature. Even in few circumstances when an investor who buys at dips decides to hold further, he's more concerned about bitcoin fluctuations, dips extent and worries more about the market behaviour because he wishes to envisage how bitcoin should behave which is not absolute.
You can not really tell when the market will dip, so it is always better to go with what you have. Any time, any day, you should be able, and they should know by now that investing in Bitcoin with the intention of holding means you are going to be holding for a very long time. This is what people are supposed to know by now.
And when you do the mathematics right, then it should not be that hard for anyone to know that it's a long-time investment, and with the help of adopting a DCA method, it makes it faster and easier and also affordable because with the help of DCA, you will know how much you are ready to sacrifice. And the price might not be stable, but at the same time, there are ways that you will be able to manage the whole volatility due to the kind of understanding everyone has.
It's a store value that needs to be kept for years, and they are able to do their own research they will be able to know whether they are the term that will do everything possible. so it makes more sense especially when you make the right decision.
It seems that you are emphasizing buying bitcoin all of the time and regularly rather than for guys to be trying to figure out various dip amounts that they might buy, and I mostly agree with you - especially to the extent that guys are not likely able to figure out dip amounts, and they are way better off just buying all of the time.
ON the other hand, guys feel good about buying dips, and so in that regard, I don't have any problem with guys attempting to establish some kind of systematic buying of the dip as long as they are also buying regularly, and sure they should understand that any money that they are holding on the side to buy dips is also money that could have had been used to buy bitcoin right away rather than trying to coordinate with a dip that might not end up happening.
Bitcoin investment is personal and not everyone would accept another's opinion. Dips are not something you can tell when it would happen, if not, everyone would stack up funds and wait for that time to come. Setting up a defined investment pattern order than dips is a healthy practice. Bitcoin volatility is not limited by any factor and could possibly also dip on your DCA period allowing you same opportunity with those who spent all night monitoring a chart they had no control over. Bitcoin promises to hold a lot of potential for every diligent investors and waiting for dips could make anyone miss out the opportunity as he may not be able to buy at all. Every bitcoin price is a dip and that is what bitcoin investors should understand.
If anyone investor does not control the drive when the dip finally comes, he stands higher chances to run at a loss when he invests beyond his financial capacity which exposes his bitcoin stash to possible premature sales and a resulting loss when his cashflow management is broken. This why we have to be careful at dips because it makes it easier to fail as a bitcoin investor after some dips because some investors go as long as using up their emergency funds to invest while hoping that no emergency situation would occur until they have replaced such funds. So therefore, once we have a working DCA approach, we must be careful about the urge that comes with dips in order not to fail in our bitcoin journey.