It is also true that focusing more on buying in DIP can reduce the budget allocated for buying in DCA. Because you will then start depositing more and more money in the fund reserved for buying in DIP. If you are really doing this, I want to know how reasonable it is and is it a good plan for investors to do this?
Initially, I think this is a barrier to growing a Bitcoin portfolio.
I think those who are buying Bitcoin in DCA should be more cautious about their Bitcoin purchases and buy aggressively by increasing their DCA budget as much as possible without reducing it.
And later, when your emergency fund is healthy enough, then reduce the amount of money deposited there and create a new fund from there that can be used to buy Bitcoin later if it comes to DIP.
Yes, you are right. If someone gets aggressive when they get into the DIP market while doing DCA, it will take them longer to build their portfolio.
DCA is about building your portfolio by buying a certain amount of money at a certain time. In this case, you need to be careful not to waste the DCA cycle to buy DIP. However, you can gradually strengthen your portfolio by increasing the amount of money in DCA. Also, you need to create an emergency fund to continue investing in DCA. This will give you financial backup in case of emergencies and buying DIP from time to time.
If you can keep your DCA and emergency fund as per the rules, your Bitcoin portfolio will also strengthen over time.