it is also better to choose DCA strategy, because if someone buys Bitcoin with a lump sum, then later if the price of Bitcoin decreases a little, he may regret it, so DCA strategy should be chosen to buy at an average price.
I think the idea of lump summing is basically dependent on the level of income of the individual or investor. And yes, If you have the income to lump sum I don’t think the idea is wrong to accumulate bitcoin and hodl. The DCA strategy is good, and so is lump sum. The idea is to buy and hodl for a long term goal and sometimes you feel like to buy in bulk and keep rather then buying little by little on weekly or monthly basis due to the fear that if the money gets to remain with you, you might use it for other things that are not really worth it so it’s better you use that money to lump sum and hold. Getting emotional about the market is most common among traders, weather they are DCAing or lump summing.
There is risk in the lump sum method. In the lump sum method, investors sometimes make a one-time investment. Although a one-time investment is a good method. But to me, it seems like less investment and more trading.
Because investors invest to build a good asset in the long term. Where the risk is low and the certainty is high. In the lump sum method, when an investor invests a large amount of money at once, if the Bitcoin market crashes, the investor may lose patience and sell the investment. Which is the worst moment for an investor. That is why I personally do not like the lump sum method. But if an investor is able to hold his investment for a long time in this method, then it is good.
But if that investor does not invest his money all at once, but rather divides his money into many small amounts and invests in Bitcoin regularly, then he can invest without worrying in the long term. Even if the market crashes, his investment will not be affected. Patience is very important in long-term investment.
Even though an investor can invest a lot of money in Bitcoin, I would still patiently urge him to invest in the DCA method. I think it is better to invest in DCA cycles than in a one-time lump sum investment.
the lump sum method has its own advantage to a certain extent, there are some investors that do get their income quarterly and even sometimes annually, so in that kind of situation, you wouldn't blame them too much if they decide to choose the lump sum strategy and in the human nature, everybody's tries to see things individually in a different lens and in different opposing views. However the reason why most of us advocate for DCA strategy is first the flexibility that it comes with, as investors within different strata of income could easily meander their way through the Method, DCA allows you to experience different market fluctuation and gives you first hand understanding as you witness the up's and downs in the price which helps to build your confidence and reduce panic because your investing nearly in a weekly or monthly basis.