Timing bitcoin market are mostly done by traders, they spend more time studying when to buy and sell looking for quick profit by selling their bitcoin in loss. Investors who watch bitcoin market waiting for the dip sounds like a waste of time because they’re missing out by holding fiat whereby value depreciate, it’s better they buy the dip now else they might never see the previous dip although even if previous dip price range will come they’ve already wasted their time.
I think it is really hard to time the Bitcoin market. I know people from previous cycles, who want to invest in bitcoin and looking for the perfect entry point but they kept waiting. Similarly, people try to find the exact top for exiting the markets, but they always end up holding for too long, because it's hard for retail to time the market. The best thing retail investors should do is to DCA at all levels, whether they are buying or selling bitcoin.
To me, it is only the institutions that can time the market, as they are the ones who know when to pump and dump the market. In fact, they have the money to move the market according to their will.
It is not really easy to time the market as most person thinks. Timing the market because of waiting for a desire dip which may or may not occur can make an investor to miss market opportunities. So DCA strategy is a very good strategy that is stress free and the pressure of always timing the market is not there. This strategy allows an investor to make informed decision and to be able to build a good portfolio in bitcoin in the long run.
I disagree with what you said about the fact that only institutions can time the market, even for institutions it is still hard for them to speculate or predict exactly the market direction. There is no institution that have control over the price of bitcoin and as such they will only try to speculate the market direction.
The difference is clear.
The DCA strategy provides a more consistent, long-term approach by making people feel little or no pressure since they don't have to predict how the market will go which makes it great to develop a steady portfolio and accumulation of more volatile asset (Bitcoin), whereas market timing can be difficult for both individual investors and organizations.
DCA approach keeps Bitcoin as an asset that it is not gambling.
Absolutely, DCA promotes steady long term accumulation of bitcoin, making it one of the best methods for building a portfolio without looking at the volatility of the Bitcoin. DCA transforms Bitcoin investing into a disciplined strategy, helps in steady growth, therefore reducing the urge to outsmart Bitcoin potentials and helps in accumulating bitcoin and hodl for a long period of time
DCA method doesn't help reduce the urge to outsmart Bitcoin potential. Outsmarting is a mindset and choice someone already have and so if you are using the DCA and you have this mindset, you will definitely tend or try to outsmart Bitcoin, DCA help an investor invest at any given price of the market with ease. The DCA is the best strategy ever but yet some people are complaining even when they are using it do you know why? It Is because they are not using it well, some try to do funny things but you can not do something funny and get away with it unless you correct it immediately.
Even though the DCA strategy is the best strategy for Bitcoin, you cannot consider it the best strategy of all time because you have some of your own strategies that are completely different and innovative compared to this strategy. Regardless of the price this method is recommended for accumulating Bitcoin but during the continuous increase in price you should review the fact that this method increases/decreases the unit price as the holding increases in your portfolio and apply your own strategy accordingly. Therefore you need to apply some of your own strategies in terms of investment that will increase the holding over time and reduce the average price.
The DCA strategy is a great strategy for Bitcoin
accumulate,accumulation but to keep it going in the long term you should practice how to be active in investing in discretionary income backup funds and emergency situations. Keep the size of the floating fund and mental preparation formed so that Bitcoin holdings can be kept safe in any situation and keep the accumulation going.