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.
Yeah exactly, that is the trap a lot of people fall into.. They sit there waiting for that perfect dip and before they know it, the price has already moved higher and they are still stuck watching... Then would actually make them start overthinking, hoping it comes back down, but most times it does not drop to the level they expect. That constant hesitation could just makes you miss opportunities. It is way better to just stick with your plan and keep buying gradually without worrying too much about timing the bottom…
Nobody can predict the market, but steady accumulation using your proper DCAing will always pay off in the long run, compared to sitting and waiting forever….