- Buying the Dip: Here you wait for price drops and then buy more when Bitcoin is more cheaper.
It would be wise to continue investing in the DCA strategy instead of waiting to buy the dip. I think if someone waits to buy a dip he may miss the investment, because no one can predict the price of Bitcoin. Now I think traders wait to buy dip, because traders buy at low price and try to sell at high price. But if one plans long term and invests in DCA strategy then there is no need to wait to buy dip, because investing in DCA strategy can buy at average price and take advantage of the opportunity to buy dip occasionally. So it is better to continue investing in DCA method without waiting for the price to fall.
The waiting of the perfect dip is the excuse of doing nothing. Nobody can tell you when the bottom will start, and staying hooked to it will net you considerably less Bitcoin. Serious investors do not yard the market, they construct.
DCA hedges your cost basis and provides you a cushion against volatility. You buy weekly or monthly and over time your average price will always outperform the man trying to guess each move. Dips are not a cue to wait to them as a cocktail offer a greater opportunity to stack.
There is no such thing as a perfect collapse. We should always aim to keep buying consistently and always aim to build our portfolio. If a person waits for a collapse instead of fulfilling their goal, it will not be good for them and at some point they will regret it very much. We should always focus on keeping buying consistently. If we wait for a collapse, then we will have to face many kinds of problems like.
You will have to face many kinds of problems like stress, missing buying opportunities, volatility, etc.
What we need to do to avoid all these things is to invest for the long term and keep buying consistently. We first need to set a goal like how long you will invest for. How many bitcoins are you willing to save in your portfolio. And after that you have to keep buying consistently with your discretionary income. You should continue to buy consistently until you achieve your portfolio building goals and hold until your time frame ends.
The disappointment of missing out on something will linger, causing us to make other mistakes, as you mentioned. This falls under emotional control, and for an investor, it's a very flawed strategy.
However, it would be better to use both strategies to continue expanding our portfolio if we have more funds to invest. First, we must consistently implement the DCA strategy, buying continuously and periodically at predetermined times, whether weekly or monthly, regardless of the current price Then, if there's a deep price correction, there's no harm in buying in large quantities (if we have spare cash) I think this will be more profitable.