I understand your confusion. However leet me try to break it down in the simplest way I can..... There are different methods people use to accumulate Bitcoin, some of this methods includes
- DCA (Dollar Cost Averaging): When you buy a fixed amount of Bitcoin at regular intervals, no matter the price.
- Buying the Dip: Here you wait for price drops and then buy more when Bitcoin is more cheaper.
- Lump Sum: You invest a large amount into Bitcoin all at once.
- Earning of Bitcoin: Through work or services( like earning through the signature campaigns and so on) or any other means instead of buying.......etc.
Now, the most popular and widely advised method, especially for newbies is
DCA method. This is because it is more simpler when compared other methods like Buying the dip etc.The simplicity ofDCA method lies in the fact that it doesn’t require timing the market, and then it helps you keep stacking up without worrying over price movement. That’s why you have hearing many members hof this forum telling newbies not to keep waiting for the dip, coz you could waste months or even years doing nothing.
The deal is that the Bitcoin moves no other asset does. With long-term investing, volatility is cruel, and this is why there is an approach such as Dollar Cost Averaging (DCA). An investment in a certain amount, on a regular basis--weekly, biweekly, monthly--is not a gamble to time the market. You are remaining calm, you systematically decrease your average cost over time and you cushion yourself against a panic on drops.
Sure, some even tell you to wait for a dip to buy, but you know there is no such thing as a perfect bottom, and that is trading, not investing. At the point when people hope to be buying (the perfect price), they donortere buy because it has changed. You will be left on the sidelines watching elses unleash opportunity as you rationalize that the price is too high. Such an attitude kills wealth in the long-run
Lump-sum investing will work, too, but only when you have the mental and financial discipline to not sell during every 20 40 percent decline. Therefore, DCA is only the safest thing to do to 99 percent of individuals. You are consistent, patient and long-term thinking.
This is my experience and what I do: I invest in Bitcoin on a weekly basis with any money that I do not need. I will also have a little cash cushion to add on dips but the most important is to keep the normal purchases going. Combination of DCA and opportunistic purchases at the time the market will be temporarily depressed is the blueprint of the real investors.