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.
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.
Yeah, I get where you are coming from. DCA is still the best, Even if someone has a lot of money ready, dropping it all at once can be risky because nobody knows if the price will dip the next day. Spreading it out into cycles makes it easier to manage and you would not feel that regret of, I should have waited.. or I bought too high..
Another thing is that DCA teaches patience. Instead of trying to play smart and catch the exact bottom, you just keep stacking little by little, and over time it evens out. A whole buying could work if you are lucky with timing, but most people don’t have that kind of luck, and when the market turns against them, emotions kick in and they panic. So with DCA, you don’t stress too much about short moves, you just keep building and before long, you have gathered a strong position.
DCA is really a good strategy as it really helps in reducing the stress of always wanting to time the market. DCA strategy is not just for people with low discretion, even people with large discretion can decide to enter the market with relatively low amount instead of putting all at a time. With DCA strategy the effect of volatility is being overcome since it regular buying and at different prices, meaning the impact of volatility won't be felt since we buying at different prices. Therefore it is not really a good idea to be timing the market instead we should focus on consistent buying in other to be able to build a good portfolio and hold for a long term.