Quote from: JayJuanGee on Today at 08:02:39 AM

Quote from: HustleZ on Today at 07:39:48 AM

Hi JJG. I wanted to ask a question according the acummulation of Bitcoin and this thread is I think the best for that. I wanted to ask tha We should invest Big amounts of Money at A big for example $5000-10000 or we should break down this amount and DCA it over the course of a few years. I believe investing it at once is a riskier choice but can give you more profit than DCA. But DCA is Not Very Risky and requires Time and Discipline. What would you say a person should choose if they want to Increase The value of their money The Most. Thanks

No one can really answer the question for you.

Let's say that you are pretty new to bitcoin and you had been getting started by investing from your income for the past two months at a rate of $100 per week, and so as you are getting used to investing $100 per week, you start to look at other funds that you could put into bitcoin, and yeah, if you have $5k or $10k available then you have quite a bit of money that you could invest at once or you could defer it by time (DCA) or defer it by price (buy on dips that might not happen).

Surely you should consider all three categories of 1) buy right away, 2) defer by time DCA and 3) defer by price, buy on dips.

you could divide the amount into three and use all three parts, or maybe you consider that you are already investing $100 per week from your income, so you will only divide your lump sum into two parts.. 1/2 to buy right away and the other half for buying dips.. Dips that might not happen.

So for sure you run a risk that the price might go up if you do not buy right away, but then if the price drops then if you have no money to buy then you might feel stress from that, so you might feel better to hold some money back for buying dips.

I cannot answer for you.

There can be some people who come to bitcoin and they purposefully might plan their next 6 months with a budget for investing and sure their budget may depend on if they have lump sum funds and/or if they just have income from their periodic pay.. so they might combine the two in order to figure out their 6 month budget, and they might not want to overly defer if they are worried about the BTC price going up and if they don't have very much bitcoin. On the other hand, if they think that the price might be coming down then they might hold back either for buying on dips and/or to DCA their buys.

Some guys might know that through the year, they may have 2-3 times per year that they receive extra pay, so that money can be treated as a lump sum when it comes in and considered in the three categories.. however you like.

Many times people think of DCA as a way of deferring by time, but really if all that you have available is the income as it is coming in, then you are not deferring by time, you are investing as much as you are able to invest whenever you get paid... Of course, sometimes you have to make sure that your expenses are sorted out before you can determine how much you have in your discretionary funds and when that money is freed up and/or available for buying bitcoin.

I personally think that guys should be building their back up funds as they are investing, so it can take some time to make sure that your bitcoin investment and your back up funds are at least 3 months of your expenses.. so if a guy invests everything into bitcoin without an emergency fund, then the bitcoin serve as an emergency fund, which is really risky in terms of potentially entering into a situation where the guy has to sell some or all of his bitcoin at a time that is not of his own choosing and mostly due to his own errors in not establishing and/or maintaining a sufficiently size quantity of back up funds that may well need to be in local cash..some form that is generally available and liquid and not too volatile.

You’re absolutely right, Many times, in most cases people do things on how they feel comfortable when it comes to investing in Bitcoin, just considering how I came be able to manage my Bitcoin investment and how I can be able to continue accumulating for a long term purpose, no body could really determine how someone can possibly choose to buy and accumulate bitcoin because we might not know which ways that would be beneficial and quite sustainable in a long term investment, there are people as an investor, who can decide to be buying bitcoin little by little on a gradual process depending on their discretionary income, I might decide to be accumulating $150 on a weekly basis after paying and taken care of all my expenses that could definitely be a way of accumulating and trying to sustain my investments and it literally doesn’t mean that in a long terms that profit might not be determined and there are also some wealthy people who comes into Bitcoin that would want to use the lump sum by buying with huge amounts because they have the money and they feel comfortable to do it on a weekly or monthly basis and also try to front load their bitcoin portfolio which is also good for them, and still that doesn’t stop me to apply some financial management to try and install some financial measures to help provide more discretionary amounts to buy and increase my amount of accumulation from $150-$200 on DCA or probably more depending on the amount of that discretionary income. Some people might feel like if they have some huge amount of money available using DCA would be a time wasting for them, while others might feel comfortable by dividing the money and accumulating it little by little so it could still be a personal decision and choice.

Perhaps there are some investors who are trying to start investing in bitcoin and I have some huge amount of money available for buy and accumulating bitcoin, probably an amount of $20000 available to buy bitcoin, well I could decide to approach a DCA method, where I can decide to buy little by little $200 on a weekly basis which is not totally a bad idea, so far as you can be able to keep the money and not use it for other projects.
There are also some folks who will have that same amount of money and wouldn’t want to buy little by little, they would definitely want to approach a lump sum to buy and keep accumulating by using all the &20000 all at once, whichever way it goes it comes to the same goal of buying and accumulating bitcoin, I would not say DCA is bad, the purpose of DCA is for people who doesn’t have large huge amount of money to invest at once so it could be possible for them to buy and accumulate fractions by fractions, lump sum is for people who have a huge amount of money that wants to invest them all at once and still keep buying and accumulating, so whichever way I feel comfortable to invest and depending on the discretionary amount at my disposal I’m definitely good with all methods.