~snip~
With same investment capital, you can invest gradually or aggressively, it's my thinking, that means I disagree with you.
Investment aggressively or not, it does not require to have extra (additional) source of income or investment capital. It's only matter that whether you want to DCA gradually or want to purchase bitcoins aggressively. Assuming with same investment capital as $1,000, you can gradually DCA in 10 months or your can purchase bitcoins more aggressively in 5 months or 3 months or 2 months.
Of course with DCA strategy, it's always better if you can have regular investment purchases and can have new investment capital with time rather than 100% rely on your investment capital at beginning and plan how to use it with time. Like you can start with $1,000 investment capital, plan to use it for purchasing bitcoins in 10 months, but it's better if with time, each month you can save part of your income and have like $50 or $100 more new investment capital. That will sum up your investment capital to bigger than $1,000 with months.
If a person has lump sum available, such as $1k to get started, and maybe he has an income in which he can buy $100 per week in bitcoin, then with the extra $1k, he does not need to invest through DCA, he could buy right away and/or he could buy at the dip (if the dip happens), so he has choices of the three different styles, and DCA is not always better if you already have a lump sum of cash come available to you. One of the reasons that so many people use DCA is because it is much easier to tailor some kind of a buying amount that goes along with their regular income coming in and their expenses, and so DCA also will allow an adjustment every week or whatever period that a person chooses to buy bitcoin under that kind of an approach/practice.
I think the aspect of discretionary funds discussed by you is very accurate. You do not need extra money to be aggressive in your investments but the extent depends on the level of risk that you can afford to undertake using the funds that you would not mind losing. You can either DCA or buy more aggressively using your existing discretionary capital depending upon your level of comfort and the market environment.
DCA is effective in the process of averaging against volatility and putting purchases in an ordinary income stream, however, when you have a lump sum, it may be worthwhile to buy on the downside or buy more actively. It all depends on whether you have an effective plan and with a clear plan, you should not touch on monies that are likely to impact on your necessities. Basically, both strategies can be applied using the same capital, it is primarily a matter of timing, risk-taking, and disciplineness when using discretionary funds.
We all know that DCA method is a very good method, but there are many who prefer to buy Bitcoin from the dip market. For example, a few days ago the Bitcoin market was dumping and went down to $107,000, and those who were able to buy Bitcoin from that dip market are currently experiencing fairly good success. So investing in the DCA method is good, but it is even better if you can invest from the dip. I had some emergency funds, I have been accumulating my funds for quite some time, I was expecting a lot of dumping but there was not much dumping. I was hoping in my heart that if Bitcoin came close to $100k or even below, then I would buy Bitcoin from there, but it did not come to that level, but I bought from the dip market a few days ago, and currently I am experiencing a lot of success, so I say that buying from the dip market leads to a lot of success for every investor, but if you cannot wait for the dip market, then you can invest continuously using the DCA method where you do not have to wait for the dip market.
As a long term investor whose initial strategy has been focused on the long term goal of consistently or Perherps persistent accumulation of bitcoin with a discretionary income using the DCA method I don’t think it’s advisable to wait for the dip before you accumulate bitcoin. Waiting to invest when its dip is a strategy only adopted by traders who are in for a short quick profit making mindset and they always panic whenever they notice a little downturn in the market price. A real investor will not wait until its dip before accumulating bitcoin rather he will just carry on with his ongoing strategy of figuring out a discretionary income to consistently accumulate bitcoin and gradually build up his portfolio through the DCA method and if along the line the dip presents itself, it will only be seen as an added advantage or opportunity for him to stack more aggressively and add to his already stacked up portfolio. That time you’re using to wait to buy in the dip would have been used to gradually accumulate a reasonable amount of bitcoin stash using just your discretionary income and gradually build up your portfolio. Moreover, waiting for the dip which might not occur would be seen as a waste of time because you’ve missed out on so many investments opportunities.
Well, I believe that both methods are good, depending on the type of mentality and purpose. DCA is the best when there is long-term accumulation since one does not have to worry about timing the market (and therefore stable growth can be achieved with solely discretionary income). You do not have to worry about missing a dip as with time, regular buying will even out the price.
The obvious benefit of purchasing dips is that it can help gain faster when the market plunges, but that is only possible with liquidity, patience and being willing to monitor the market closely which makes it a stressful experience. In the case of long-term investors, it seems to be safer to see dips as optional additions, but not the primary strategy. Basically, the DCA is the base and any dip buys are bonus stacking as opposed to perfect timing which hardly occurs in a regular manner. This would minimise risk and yet you are able to benefit on market movements.