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 is 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 is very emotional and greedy and wants to make such a decision 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, which will cause a lot of trouble between them, so in this case I completely disagree with lending money.
Lending money in this situation carries significant risks when using the DCA method the strategy relies on steady, disciplined investments not borrowed funds borrowing can create pressure to repay quickly and emotional stress if the market dips this can damage relationships especially if the friend is emotional and greedy.
Even a small market correction could make it difficult for the friend to repay on time creating tension and potential conflict between them the original investor did not plan to borrow money and introducing a loan changes the dynamics of both the investment and the friendship. It is wiser to keep investments self-funded using only money that can be comfortably allocated to DCA lending in hopes of boosting returns adds unnecessary risk to both finances and personal relationships in this scenario avoiding the loan is the safest choice to protect both the investment plan and the friendship.