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Bitcoin is only successful in the long term, so an investor must think long term,
This statement is confusing and incorrect Ricardo11. We can look at the charts and see that bitcoin can be profitable on either a short-term of long-term basis, yet surely many of us investors do not tend to sell bitcoin merely because it is in short term profits, because we do not know if we could buy back cheaper, and we don't necessarily want to take chances to get stuck with less bitcoin in the event that we sell and the BTC price keeps going up.
For guys who are striving to get more bitcoin, keeping on buying is guaranteed to keep the BTC stash growing, and as long as the BTC price keeps going up, then any coins bought will be profitable, especially once the BTC price starts hitting all time highs again.
For sure if a person buys bitcoin and then later the BTC price is higher than his purchase price, he can lock in "dollar profits," yet locking in dollar profits is not necessarily a good move, especially with something like bitcoin, and we can see from its charts that guys locked in profits at $350 in 2015, or $550 in 2016, or $2,500 in 2017, or $11k in 2020, or $27k in 2023, or $72k in 2024.. frequently within months after these these guys locked in profits (but even more clear years later), they were not going to ever be able to buy back whatever coins that they sold at those prices since the BTC price did not end up coming back down to those prices or even close to coming down to their sales prices. So there are a lot of instances of guys thinking that they were profitable but later being low coiners or no coiners as compared with the spot that they could have had been if they had not sold significant quantities (if not all) of their bitcoin in price locations similar to the ones that I mentioned.. and in retrospect those guys may well end up regretting the matter, even if they might have made significant dollar profits from their sales of BTC at those various prices and time.
Right now many folks would be greatly pleasured to buy bitcoin for $72k or the various lower price points that I mentioned.. but there is almost no way that they are going to be able to do so, since the odds are quite low for the BTC prices to go back down to those various mentioned price points.
Don't get me wrong. There are ways to sell bitcoin on the way up that don't largely prejudice a guy's bitcoin holdings, especially if he is not selling large portions and he are also is not selling with expectations of buying back cheaper - yet if guys end up making mistakes in their calculating of how much bitcoin to sell and they think that they have enough bitcoin or more than enough bitcoin, yet they are mistaken in their assessment, then they also might end up selling too much bitcoin too soon because they had come to the wrong calculations regarding how many bitcoin they thought they might need or want in the future versus how many bitcoin that they then had in their possession.
the Bitcoin market is volatile, proper research, risk management and patience are essential before investing,
That is not true. Guys do not have to figure everything out about bitcoin in order to get started. Sure, if they don't know much, then they might want to start out slow, but they can learn all of those things that you mentioned as they go, and the ONLY thing that they really need to know in order to start investing into bitcoin is whether or not they have discretionary funds. If they have discretionary funds they can get started. On the other hand the more and more that they invest, it is probably going to be for their own good to learn more and more about the various areas that you mentioned, including one of the more important aspects, which is cashflow management so that they can make sure that they are investing within their discretionary funds but then keeping their bitcoin investment going requires ongoing abilities to meet expenses and hopefully not ending up dipping into their bitcoin at a time that is not of their choosing and perhaps even figuring out their investment timeline to be 4-10 years or longer.
volatility is not a matter of panic, but many investors panic during this volatility due to their wrong mindset, for those who think long term, this volatility is not a big deal, the future of Bitcoin is much brighter, and those who understand this long-term potential and are investing will be able to achieve real long-term success.
mindset is likely important, and also good cashflow management practices can help to reinforce mindset matters.
the market sometimes goes down and at that time, those who do not invest have the opportunity to invest.
The dca method allows us to invest with out firstly waiting for the price of bitcoin to go down before buying bitcoin. Those who actually waits for the market to go down before buying are mostly traders, investors invest in any market conditions they don't wait for the price to drop before buying for example you might be targeting the price to drop below $90 before buying and your expected dip do not occur which means you won't buy meanwhile the purpose of the dca method is to buy bitcoin at any market condition be it low price or high price, this will also make you stack enough bitcoin because you are consistently in the market buying without waiting for any dip when ever there is dip you can decide to buy aggressively without overly doing it and stack more bitcoin and hodl for period of 4-10.
The price of Bitcoin always fluctuates. If you wait to buy at a fixed price, you may not get the opportunity to buy Bitcoin at that price, which may hinder your Bitcoin investment in the future. And DCA will save you from such a situation. Whether you buy at a low or high price, your average purchase price will be relatively low.
You are describing a your own little fantasy and detachment from the real world. Maybe if you thought about the matter a bit more clearly, you would realize what you are saying is made up bullshit.
An overwhelming majority of people who get into bitcoin or any other investment, do not tend to have money to establish whatever position that they are going to want to take in any investment all at once, and if they had the option, it may well be better for them to invest all at once rather than DCAing in, but that investing all at once is not an option for an overwhelming majority of people.
Another thing is that DCA does not give anyone any lower price, whether the BTC price goes up down or sideways, DCA give the average price over the period that is invested, which no one would really want if they were to have a choice, they would want the lowest price possible, but they don't have a choice because no one knows the future, so DCA is the better way to just get into an investment, such as bitcoin, without having to focus on price, but instead merely focusing on how aggressive that we would like to be in light of our incoming cashflow and most importantly in light of our discretionary income. DCA also allows adjusting up and down every single week, if we want, in order to account for our cashflows/discretionary income then available or other balancing that we might have with other expenses, needs and/or wants in our lives.
For those who do DCA, buying Bitcoin also relieves the human pressure.
This part is true.
For investors who buy Bitcoin for trading purposes, buying at a low price and selling it at a high price will relieve the DCA holder from the pressure that is created.
This does not make any sense. There are some traders who will DCA in their position, and then figure out some later point to sell as long as their holdings are in profits.
Buying dips can also be a supplemental technique that someone DCAing might use. Someone DCAing does not necessarily need to stick only to DCAing, and they can consider the extent that lump sum buying and buying on dips might be practical for them, especially if they have circumstances in which they suddenly receive extra funds.
DCA holders can accumulate Bitcoin without pressure. Surely, those who do DCA will get the opportunity to stack Bitcoin on a weekly or monthly basis, which will turn into a large asset in the long run. If an investor wants, he can deposit a certain amount of Bitcoin regularly through DCA and if there is a dip, he can also buy more according to his convenience. Those who are new investors or those who are not able to invest a lot at once can easily increase their Bitcoin savings by investing a portion of their discretionary income with DCA.
You are correct that DCA tends to be a great approach for a newbie investor, especially if he does not have a lump sum amount available. .. and even if he has a lump sum available he can consider to DCA, buy on dip and even buy right away with portions of the lump sum... depending on how much it is and the
their various individual factors. They can also choose to frontload their investment, especially if they have lump sum funds available.
I certainly believe the his primary intention for bitcoin was the decentralization literally a unique form of custodian unlike the traditional currencies and it subject to store of values but then, users was optimistic underlining it most essence on profitablity given it a less values for everyday use for transactions such as payments for goods and services. But I think this is just the beginning because generations to come will find this financial technology more convenient to be in used than the fiats because as the world evolves, so also the need of flexible transactions with essence of security and Privacies becomes everyone's concern.
Bitcoin was never created to replace fiat in the first place and I don't see how bitcoin wil be more convinent to use in future to the point that it will take over from fiat because we are in a centralized world where everything is centralized. Government might be claiming to have love for bitcoin but we don't know what they are cooking behind the kitchen.
Bitcoin is best to be used as a long term investment because it has proven to be a store of value overtime and a hedge to inflation. Therefore, fiat should be spent everyday because it loses its purchasing power overtime. However, there are people who are still spending bitcoin for payment of goods and service, an example is this forum. I will prefer to spent fiat and holdi to my bitcoin for potential gains in future. Why will I spend a valuable currency like bitcoin that increases in value overtime.
Government owns fiat and they rule over you, they wouldn't accept a currency that they cannot control because they love printing more money which lead to inflation and they put that burden on the citizens by increasing interest rate. It has been so for a very long time and I believe that's their game.
Bitcoin competes with fiat, so in that sense it could be considered as something that was intended to replace fiat - yeah such replacement might not happen right away, yet you already have stated that even in your own personal journey you gravitate towards accumulating bitcoin and spending fiat, and so the longer and longer bitcoin is around, then the more and more people, institutions and governments are going to realize that they should be gravitating towards bitcoin too... so if a lot of the value is gravitating towards bitcoin, then little by little the inferior currencies are likely to receive less and less use and also to disappear.
Sure governments are going to continue to want to preserve their inferior money systems (control systems), yet they are not going to be able to stop everyone from gravitating towards bitcoin, even though they will try to stop the gravitation of value into bitcoin..and sure maybe they will have various temporary periods of success, yet their possible temporary periods of success still does not justify not gravitating value into bitcoin for anyone who knows about the value of bitcoin sooner rather than later, then the ones who know sooner will benefit more from their knowledge so long as they act to gravitate their value into bitcoin rather than into inferior monies and/or assets... which bitcoin is the apex predator of assets and/or currencies, even if a lot of people either don't understand/realize such fact and/or some people are merely just coming around to understanding/realizing such fact that bitcoin is the apex predator of assets/currencies.
Solid point i see where Ricardo 11 is talking from with the long-term angle, it is very important not to push Bitcoin into one rigid investment pattern, like what you said the charts talk for themselves. BTC has provided a kind of opportunity for both short and long term profit , the key is to understand your real aim and risk tolerance. Too many people lock in dollar profits so many early thinking they out smart the market, but they end up watching from the sidelines while price continues increasing.
stacking consistently and reasoning in terms of Bitcoin growing rather than dollar profits that's the mindset more investors need to actualize. Targeting the market can work periodically but time in the market has good reminder to think bigger