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
Although this question is addressed to JJG, I will also answer your question. I think the answer is quite simple: if you truly have $5,000 or more, and that money is strictly discretionary funds, I don't think you need to worry about starting to invest in Bitcoin. There are only two options, in my opinion: aggressive buying or using the DCA technique. I believe both options have their advantages, so the point is, don't be afraid of making the wrong choice. So, if you choose to aggressively buy Bitcoin, I think that's fine right now. As long as you truly plan to invest in Bitcoin for more than 10 years, I don't think aggressive buying now is a problem.
Because in 10 years, the price of Bitcoin will likely be much higher than it is now. So, with that in mind, I think it's safe to aggressively buy Bitcoin now. But if you want to be more relaxed and want to invest by buying Bitcoin at various prices, I think DCA is the right path. Essentially, you just have to choose between the two options. And I also remind you, if your funds aren't entirely discretionary, you should separate the non-discretionary funds. So, don't let that money get mixed up in Bitcoin, as that's certainly not good for your Bitcoin investment.