You are the one who introduced the DCA method, so you should know the risk as well. Also, if you are going to give him a loan so he can use it in the DCA method, isn’t it better if you just use it yourself? And you just said he is having some good turn up, then why would your friend still ask for a loan? If he really is and still asks, it means he is getting greedy or he is letting his emotions control him. Maybe that’s a sign you shouldn’t give a loan.
Actually here his friend is asking him for money he will invest in DCA method. Here he did not plan to borrow money in DCA method. When a person enters Bitcoin and knows everything about Bitcoin well and after investing some money, some kind of greed may develop in him, maybe that greed has been created by his friend, but here I think it is important not to lend because when he borrows money from his friend, if he cannot repay it on time, then there may be some kind of trouble between them. His friend may be very emotional and greedy and want to make such decisions but when the market crashes a little and if it takes a little time to recover, then his friend will become restless about the investment and will not be able to repay the money on time, as a result there may be a lot of trouble like them, so in this case I completely disagree with lending money.