Before starting bitcoin journey for example a newbie must be fully aware about the kind of investment they’re going into, using money meant for important needs to invest is a mistake done by most newbies yet this kind of mistakes are very rare as a result of learning about the basic knowledge first before investing will help prepare an investor towards their long term journey. Whenever the market experiences a dip, generally those who are financially capable intend to buy bitcoin using large quantity basically they prepared towards this event buying the dip so all they have to do is take advantage, accumulating aggressively during the dip is not compulsory especially when the fund is not available rather continue buying bitcoin using the dca strategy.
Even if a person is financially capable, it is never right to wait for a fall. We should always continue to buy continuously. If a person buys continuously using the DCA method and then waits for a fall, then this is also a bad decision. Because you have money, it means invest immediately. It is never right to wait for a fall.
Well, there might be instances where an investor has a robust finance that allows him to try out multiple of strategies that might still incorporate both buying the DIP when there's the need to and still retaining the normal DCA plan one has been working with. If an investors budget can effectively allow for such, then why not, it's possible to plan for the DIP and still buy with it, but it should be that you're not using that as an excuse for not being consistent with your buys.
The simple rule is to do what works for you and ensure you're following it up to the latter and that you're building your portfolio to becoming stronger and stronger through the process. In most cases, waiting to buy the DIP most expecially if you're just a retail investor that has a limited budget always stands to keep you limited from reaching your goal fast enough. That's the constraint that comes with it and the reason why it's not the best to opt for buying the DIP when you can DCA and still get the opportunity of buying at different prices along your DCA phases.
Those who have a lot of money can invest in different ways if they want. If they do not invest in the right way, there is a high possibility of loss, so everyone should invest in all safe ways. There are many who will not have any problem if they lose a few thousand dollars. Many of them invest in many ways for experimental reasons. But those whose income is limited and only a little money survives as discretionary income at the end of the month. It is never right for them to invest in this way. They should invest in the safest way. Because if they lose even a little money from their limited income, it will have a very bad effect. But many who have limited income want to become rich quickly, so they are more likely to make mistakes. So even if they have a lot of money, everyone should invest in the right way. I think investing in Bitcoin with discretionary income according to its DCA method is the right way.
You are communicating your ideas in a very confusing way SPIDERMAN008.
I think the punchline is that you are saying that poor people need to DCA, which is likely the correct answer but not really for the reasons given.. since you are trying to suggest that poor people cannot afford to lose money - even though we know that there is absolutely no guarantee in bitcoin, and each of us, whether rich or poor should be investing with money that we can afford to lose.
If we cannot afford to lose the money then maybe we don't have enough discretionary income to be investing into bitcoin.
When we invest into bitcoin, then maybe we try to do everything as best as we can, and we lock up money for 4-10 years or longer.. and in order to not panic we should be ongoignly buying bitcoin within our budget, and maybe the BTC price drops 80% or more, and hopefully we keep on investing, even though it is scary to go through such volatility. Hopefully we are studying bitcoin as we continue to invest into it, whether we are investing $10 per week or some other amount. We study to see if there might be any reason that we might discontinue.. .and yeah, maybe it is more painful for a poor person to come up withe $10 per week, and they have to deal with their circumstances... since yep there are some folks who might have $2k per week of discretionary income per week, and they decide to invest $500 per week, and they really are detached from the $500 per week because it is extra money and they have plenty more money to spend every week on whatever they like, even if they might be taking 25% of their discretionary income to invest in bitcoin, and maybe the poor person is taking close to 100% of his discretionary income and the poor person is struggling to put $10 per week into bitcoin.
The poor person is likely going to have to be more organized and make sure to build an emergency fund, and the rich person might already have thousands of dollars in the bank in the event that there is a shortage of funds any week or any months, he also has some other investments, and he could easily get a loan from a bank or maybe mom/dad or his uncle will spot him $20k in the event that he really runs into trouble with his cashflows. The poor person does not have such resources and/or options, so he is working on trying to get to a place to have more options, so that perhaps after 20 years investing into bitcoin at $10 per week he had invested $520 per year and $5,200 after 10 years and $10,400 after 20 years, and surely it could also be that the poor person might have been able to improve his discretionary income by increasing his income and decreasing his expenses, yet he still has to deal with what he has got and he might not be in a position to improve his discretionary income.
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You're very correct. Any investor who can maintain his DCA approach very strictly has already scored high in his investments process. Dip happens to all no matter your strategy. The elite investors who buy by lump-sum still try to buy at dip likewise those people into DCA method. As far as you have Discretionary income, you can buy bitcoin at anytime between your DCA points.
Most aggressive buys happen at dips even though it's not limited to dips.In all your investments, as long as you intend to hold your bitcoin stash for a long time, you have to be conscious of not overdoing your aggressiveness for the sake of the safety of your bitcoin. Monitor your finances and be sure to attend to your responsibilities. Some people stress life out of themselves in order to buy aggressively which is not good.
Many of us consider that it is not necessarily a good idea (especially for poor people) to try to change his level of aggressiveness based on perceptions of a BTC price dip.
But, yeah, of course, people can do whatever they want, even dumb things, yet it seems way better for regular people to be striving towards making sure that their cashflow management is in good order and to try to figure out some way to invest into bitcoin regularly (such as weekly if possible), persistently, consistently, ongoingly and perhaps as aggressive as they can within their budget... so if they are poor maybe they ONLY have around $250 per month of income and if they are frugal maybe they can squeeze out $10 per week for bitcoin investing... there might be some weeks that are more difficult than others, and the person just has to figure out how much to prioritize investing in bitcoin versuss maybe just keeping some of that money in cash since maybe they have some irregularities and they cannot necessarily buy every week and they have to see how much money they have left at the end of the month prior to being able to make their (periodic) BTC investment.
I reported that cited post for being off topic and not even attempting to relate the information in the post to bitcoin, yet I am not sure if the mods will delete the post or not..
Usually if a member is shilling something off topic, it is not good to quote them (to give them more eyes on their post), even if you are stating opposition to their post.
That is true, most of this people who comes up here to talk about shitcoins doesn’t deserve any audience whatsoever here, and it’s off topic and that post is meant to be brought down immediately by the moderator, I’m still new here and post like that can be considered misleading, and I’m here to learn, there is no reason whatsoever someone that is also newbie like I am, will come here to bring up something that isn’t part of this thread, I think he probably doesn’t know what bitcoin is, and he is meant to learn, and also trying to go through the rules of engagement here.
I just went back and looked. It appears that the offensive/shilling post was deleted by a moderator (or maybe by the poster himself?).
That post was pretty blatant in regards to its shilling of a shitcoin and disrespectful for not even attempting to relate their post to the topic of the thread, yet sometimes some of those kinds of posts are allowed to stay...
If there is a pattern of that kind of posting from newbie members, then sometimes they will get banned or suspended.