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Remember, it is wise to take the time to carefully plan your investment before investing in Bitcoin. your investment today can bring a bright future. everything in the world is subject to decay, but if you keep some assets, their value or importance does not decrease with the change of time, but rather starts to increase. I see Bitcoin as a valuable asset whose importance and use will increase with the change of time.
every investor should not take extra time when purchasing Bitcoin.You are contradicting yourself. You sai that it is important to plan your investment before investing in bitcoin but not to take extra time.
Most likely to get started in bitcoin, there is a need to merely have a superficial perspective of bitcoin, yet more importantly we have to know whether we have discretionary income or not. Once we get started we can learn and adjust our position size in accordance with our knowledge and confidence about bitcoin and also the strength of our cashflow management. There is nothing wrong with learning as we go and hopefully building additional conviction after we learn more about bitcoin. Getting started right away is important yet surely even if someone knows that he has $10 to buy bitcoin right away, he may also have to figure out from where he is going to source his bitcoin, and there could be more than one source location, yet he still has to start out with one at a time, and with any new activity, it can take a bit of time to incorporate in someones life and perhaps to be able to start to appreciate that the commitment should be for 4-10 years or longer, yet in the very first purchase, there might not need to be any commitment to 4-10 years or longer, even through ultimately it would be better for anyone to come to that kind of a 4-10 years or longer commitment so that they are understanding how they might approach their bitcoin accumulation practices and also how they might approach their cashflow management practices..
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Your point about trying to sell high and buy lower again is crucial. While timing the market can work occasionally, most people lose more than they gain trying to “trade around” Bitcoin.
The guy who keeps stacking even in bear markets builds a stronger position.
How is a newbie going to know if we are in a bear market or a bull market?
And maybe my point was that it might be more difficult to keep stacking as the price is going up, so guys might make the mistake of selling their bitcoin to buy back cheaper, yet they also might make the mistake of stopping their buying as the BTC price is going up.
Sure, you have a valid point about buying when the BTC price goes down, so for the newbie, there is a problem in both price directions, which is part of the reason that the newbie might not need to think about BTC price at all for at least a whole cycle and perhaps even two whole cycles - depending on how much he might have had been able to front load his bitcoin investment in the first cycle.
Sure there could be some ways that newbie guys might attempt to strategize about bitcoin price, even when they are quite earlier in their bitcoin accumulation stage, yet it seems that minimizing their strategizing about BTC price is a better approach to keep on stacking BTC no matter the price and then to reassess after a whole cycle or more. After a whole cycle of mostly stacking consistently, a person's cost per BTC will tend to be right around the 200-WMA and the BTC price tends to spend most of its time above the 200-WMA... so it is nice to have average costs at that level or even below that level.. yet since newbies do not really know what the BTC price is going to do, and they tend to still be needing to accumulate more bitcoin, it tends to be better for them to stay focused on ongoing, persistent, consistent, regular and perhaps even aggressive buying of bitcoin. I personally like weekly for newbies, but guys have to figure out what works for them. Getting overly distracted by price seems problematic for newbies in their first cycle for sure and perhaps even into their second cycle.
People in their first Bitcoin cycle often underestimate how much is enough and tend to overthink short-term dips instead of focusing on long-term accumulation. Buying when Bitcoin is down feels uncomfortable, but it's often the best time to stack.
Sure. Keep buying when the BTC price goes down, yet hopefully there is not too much waiting going on instead of consistently buying.
Stacking gradually and consistently reduces regret and removes emotional decision-making.
Thinking You Have “Enough” Bitcoin Can Be a Trap,
One of the best points you made is how income increases should ideally lead to bigger stacking, not stopping.
Your example of someone going from a $25k to $50k income and still capping their stacking at 10.4 BTC instead of pushing to 11.67 BTC.
With a modest increase in income and disciplined DCA, he could've added $6.5k/year in additional sustainable Bitcoin-based income.
Enough” is often misjudged, especially when future financial needs grow or inflation eats into fiat savings.
Stacking more when you can afford to is a key to long-term wealth preservation.
Guys have dilemmas and they end up making mistakes, and surely the bitcoins start to cost more with the passage of time, and even each additional purchase they make is starting to be smaller and smaller portion of the BTC stack.
For sure, even the guy in my example, he might have had started to consider that his goal is to reach something around his current income in order to feel that he has enough or more than enough BTC, yet many times, guys want to have a cushion before they might start to withdraw from their BTC, so they might want 50% or even 100% or more higher than his current salary. These are not unrealistic goals within bitcoin, even though there may be needs for extra patience to make sure that the BTC stash is at an appropriate level if the guy is going to pull the fuck you lever (quit his job and live off his bitcoin), yet at the same time, many times a guy might not need to have as much bitcoin as he might have to have in traditional fiat investment systems, yet each guy has to come to his own calculations to make sure that he does not mistakenly presume that he can live off of his bitcoin when he is not able to do so, which is part of the reason that I use the 200-WMA for my measurement of the wealth and to be able to determine how much bitcoin a guy might need for his desired income threshold level.
There is no better and more effective Bitcoin investment strategy than DCA, invest a fixed amount regularly without looking at market fluctuations, and keep building a Bitcoin portfolio at an average price consistently, people who are just waiting to buy Bitcoin at DIP prices can never invest effectively, and their investments do not give very effective results, which could have been obtained from DCA investments. The market never works according to our expectations, so if the price we are waiting for never comes, then your wait is completely worthless, rather you are further behind for it. So create the right mindset about Bitcoin, and invest in Bitcoin using the right effective strategy, only then can a good result come.
I don't really know if there is an alternative to the DCA method for buying Bitcoin. But I think the DCA method is the best. There is no point in wasting time wondering when the price of Bitcoin will go down or up, when we have learned from various sources about the huge potential and future of Bitcoin. Now we can invest in Bitcoin with fearlessness, confidence, and full confidence. But of course, we have to buy Bitcoin with a long-term plan. The price can sometimes go down a lot, at that time we have to be patient. My plan to hold Bitcoin is for 10 years from now. Whatever the price, the real objective should be to continuously buy Bitcoin and make our portfolio heavy. There is no loss even if it comes from $1000 to $50, as long as we don't sell. The thought of selling Bitcoin can never come to mind. When buying Bitcoin, I will use the word buy instead of the word sell for 10 years.
You shouldn’t also forget that there is a lump sum method of buying Bitcoin, you might definitely appreciate buying Bitcoin using the DCA methods but there are also people who appreciate buying using a lump sum who have been into some financial assurance previously before getting into bitcoin investment and are wealthy and rich who have a good financial flexibility who can be able to afford to flex their financial muscles, I’ve come across some guys who have been investing in Bitcoin and have been buying in a large quantity and trying to front load there bitcoin portfolio and have been doing that magnificently well, I’m not disputing the fact that the DCA is a good method for us pleb or a low income earners who wants to invest and accumulate bitcoin for a very long time it’s quite good to appreciate the DCA method which can help us continue to grow and sustains our Bitcoin portfolio.
You're right lump sum and buying the Dip are still good techniques but yes, a lot folks out there will still prefer using DCA strategy to buy Bitcoin because it is convenient . Lump sum requires a folk to buy Bitcoin with a large sizable amount of funds(discretional income) at once which can be quite expensive for some folks who cannot afford it but with DCA,even with the little amount of discretional income at hand or made available,one can still be able to buy Bitcoin with it anytime provided his discretional income is ready. DCA strategy makes investments in Bitcoin to be easier,less expensive and keeps you ahead of the markets in terms of accumulating bitcoin without timing the market by consistently buying Bitcoin regardless of price and time. In my own case,DCA works better for me and have made it a lot easier for me to be buying bitcoin steadily once my discretional income is ready no matter how little it is in amount.