Original archived Re: Buy the DIP, and HODL!
Scraped on 22/08/2025, 18:16:32 UTC
Because those just starting out in investing generally only know that buying when prices drop is a good way to invest, this is similar to the Lump Sum strategy, which requires waiting for the price to drop before making a purchase, a common practice when first starting out.
You are not buying with lump sum when you are waiting for the price to dip and buy with higher amount, you are only buying at the dip and that's not encouraging. Lump sum is when you use a good apart of money to buy bitcoin once at a go irrespective of the price of bitcoin at that moment.
For instance, you have $200 given to you and you don't have any budget for the money because you are not expecting it. If you buy bitcoin right away with the money, you have lump sum. Buying with lump is a way to front load your bitcoin investment.
According to my little experience and what I have understood, I think that instead of buying with a lump sum, it may be better to deposit gradually in the DCA method. But those who have the ability to invest with a lump sum, they can buy with a lump sum, but for them too, the DCA method may be better instead of buying with a lump sum. Because you cannot buy at the right price, if you buy with a lump sum and the price drops a little tomorrow or next week, you may regret it, but if you invest in the DCA method, you do not have to worry about the price. You will be able to buy at any price.
It is really wise for a new investor to deposit Bitcoin in DCA method. If you want to deposit Bitcoin with a lump sum, you cannot constantly test the market and when you deposit Bitcoin with a lump sum, if the price drops in a few weeks, it is really a pity. You are absolutely right, I agree with you.
I like to deposit Bitcoin using DCA method, because it is completely under my control, I can buy it at any time and test the market properly. And when I deposit some amount of Bitcoin and the price starts to drop, I can stop and when Bitcoin starts to rise again, I start depositing Bitcoin using DCA method again. I think using DCA method is a wise thing for every investor, and it can be very safe.