[Edited out]
Sometimes we can employ techniques and strategies that we believe to be moderate and reasonable based on some new circumstances, such as receiving a $1,500 bonus. Yet at the same time, we might want to be careful to NOT over think the matter, since it may well be better to just DCA, yet every once in a while some adjustments can be made and we can recognize the trade-offs that we are making when we deviate from DCA and we might supplement with lump sum buying and/or buying on the dip, and maybe we might consider that since we are already doing $100 in DCA every week, then maybe it doesn't make any sense to add more to our DCA, but instead we think that with our extra money will ONLY focus on the two other strategies - even though there are risks.. so for example, if we put $1,200 into buying right away, then the BTC price goes down, then we might feel bad that we could have had gotten more if we had waited, and if we dedicate $1,200 towards buying the dip, but then the BTC price does not dip enough to fill any of our orders, then we might feel that we did not treat the situation in a way that would help us to attempt to be mostly emotionally neutral about whatever way that the BTC price might go.
Indeed even if an investor wants to explore the other different methods of accumulating Bitcoin, DCA should still reemain the backbone of their investment plan. The reason for this is that DCA gives an investor a sense of consistency, it removes emotional decisions such as panic selling, and then keeps your portfolio growing regardless of short-term price movement.
On the other hand, one who relies heavily on the lump sum strategy may end up asking questions when the market takes a downturn. Questions like, “Did I move invest too fast? Should I have waited?” And it is such question that pushes people into selling out of panic and regret......And again one who depends solely on Buying the Dip may also begin thinking and questioning themselves that they would have gotten more if they waited a little bit longer and in the case of new investors, they may end up never investing in Bitcoin coz they are trying to catch the perfect entry point.
That's right, But I think the best part of employing the DCA strategy is the fact that it totally removes timing from the equation, a lot of investors end up missing out on potential opportunities and land themselves in a messy situation simply because they're more focused on buying at the perfect time, rather than engaging in continuous and consistent accumulation they prefer to time the market. But with the help of the DCA strategy, this is completely avoided.
It's kinda like the strategy with the best psychological impacts on investors, rather than attempting to predict the market, DCA does the heavy lifting for you, all you gotta do is just keep accumulating Bitcoin and let time and the power of compounding do all the work for you, it's just as simple as that.