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 dump 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
Investing in Bitcoin is a personal decision and whatever method you prefer to use whether buying at once through Lump sum or buying consistently bit by bit with DCA is your choice. Using either of the above mentioned strategies doesn't gives you any guarantee in your investment. What matters the most is that you have a Discretional income to buy and hold for the long term. However buying consistently with DCA doesn't gives you more profits than an investor that invested with lump sum strategy,the advantage of using DCA strategy is that you can be buying bitcoin consistently from your discretional income regardless of the price and the amount .For instance if your weekly Discretional income is $10,you can split it in to half, 50% can be used to build your emergency funds and reserve fund to protect your investment while the remaining 50% should be reimbursed into buying Bitcoin consistently for the long term.
Those thing are fine whatever strategy they used as long as their intention is to buy and do long term on Bitcoin.
What's actually not good here is if they have doubts on their decision and try to engage on waiting for the dip before they buy since that might give them a problem.
Confidence and knowledge is important here so they better trust Bitcoin then be consistent on what they do especially for their accumulation so that they can possibly gain more better result. Nothing will happen if they have doubts in their mind and do nothing.
Common strategy been suggested is DCA so if they are new they better explore this option since there's good chance that they would love this strategy. It will matter now on how much and they should consider the amount that they can afford to spend and don't go over with their budget so there's no conflict that can affect their investment and budgeting to other important things will happen.