Regular investment of small amounts turns into big savings in the future. I agree with you that consistency is more important than quantity. In this case, investing small amounts regularly through DCA maintains our long-term mindset. It is a safe, effective and proven strategy for both new and experienced investors. Consistency and patience are the keys to success, not the amount of investment.
You guys are laying too much emphasis on investing small amount per time forgetting that there are different approach to bitcoin investment. If I have $10,000 as my discretionary income to invest in bitcoin in a time like now that the market is making some corrections, why should I stress myself investing $500 regularly when all the money is meant for investment and I have good buying opportunities? So long as you have discretionary income and have set up emergency funds, you can use any method to enter the market since the goal is to hold for a long time. I will even feel comfortable buying bitcoin anytime I have the opportunity to that I will not be tempted to use the money for something else.
I'm not saying that the DCA method is bad, but when you have the opportunity to buy the dip and the money is there, an entry at discounted price is not a bad decision. You can even make such entry while still continuing your DCA method.
Yu kw, if you have $10k in pure discretionary income and no pressure elsewhere, going in heavy during a dip might not be a bad move.. But here is the thing, that approach assumes this dip is the bottom, and no one really knows that.
This is why i would say DCA is still the best approach over all. It removes the guesswork. You don’t even have to stress about whether now is the perfect time. You just stay consistent, and over time, your average cost balances out. That kind of peace of mind is underrated...
yu kw, you don’t have to pick one side. but would advise you consider DCA, bcus If I were in your shoes with $10k right now, I wound probably put in like around $3k–$5k if I feel the market is offering a solid discount, but i would still hold back some to DCA over the next few months. With that, if the price drops more, I will not be stuck watching from the sidelines.
So no, DCA is not just for people with little money, it is for anyone who wants to avoid emotional mistakes. Whether investing $100 or $10,000, having a plan that lets you stay calm matters more than anything.
Are you trying to say that if the market isn’t offering a solid discount, you won’t buy Bitcoin? Talking of holding back some as you said isn’t a bad idea, what the purpose of holding it back makes it look bad. I feel there’s no time that one buys Bitcoin that isn’t a good time.
For me, I see no reason holding back some funds because you want to use it for DCAing for the next few months as you said, this few months can be 12months or more, depending on how you want to split it. Now Bitcoin might reach ATH in just 1 month or so, then it keeps rising and rising. At that point, don’t you think you’ve made a little mistake by not buying with all that funds, because that might be the only dip you’ve been expecting to happen.
Come to think of it this way, what if you hold back some and it happens that bitcoin doesn’t dip rather keeps soaring high thereby making you wait in vain for a dip that might not happen. I see nothing wrong in buying Bitcoin with all that money, it helps you accumulate more supposing you have a stable source of income, that would help you build a discretionary funds and allow you to embrace the DCA strategy of buying.