If you invest in Bitcoin for a long time, the chances of profit will certainly increase a lot, but for this you should follow the DCA method to invest in Bitcoin. Then you will definitely be able to profit, if you invest in Bitcoin according to the DCA method, it is definitely possible to maintain your Bitcoin investment for a long time. So far, everyone who has successfully invested in Bitcoin for a long time is currently experiencing profit.
However, Bitcoin investment should be estimated at least up to two halving times (maybe 8 to 12 years or up to 15 years), it is best.
Yes you are right friend, but in my opinion it is not only the DCA technique that will make long-term investors in bitcoin potentially profitable, but other buying methods I think will be equally profitable if hodl in the long run. Because the point is that hodl plays the most important role, whatever the purchase strategy is. Because even bitcoin investors who do DCA if for example he is not strong in long-term hodl, of course the potential for success is also less than maximum. That's why whatever the purchase strategy is we must be able to hodl the bitcoin we have for the long term.
You are not wrong about there being a certain importance in HODL, yet so many folks don't get to a large enough stack before justifying just HODLing.
So ongoing accumulation seems to be important to accomplish before getting to a status of HODL, especially since many guys do not have a lot of money to front load their investment into bitcoin, they tend to have to build over years and years and years, so it sometimes is problematic for guys to slip into a status of HODL prior to building up their bitcoin stash with ongoing, persistent, consistent, regular and perhaps even aggressive accumulating through buying.
But it cannot be denied that by implementing the DCA strategy and also long-term hodl, it will make our bitcoin investment much more leverage. Because DCA is a periodic purchase strategy, so that's what will make us able to get the maximum profit from the bitcoin investment that we hodl. So the point is we have to keep the spirit to hodl the bitcoin we have.
I suppose that there are stages, and if a newbie is ongoingly buying, then that is likely amongst the best of practices.
The other error could be failing to buy or even worse to sell.. .So each of these (what should I do?) questions can come up for a guy, and sure sometimes the answer is HODL, yet other times the answer is "keep on buying" or "don't stop buying."
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As far as Bitcoin investment is concerned, any amount you are using to accumulate Bitcoin is your own level of aggressive buy and you don't need extra money to be aggressive in your investment, but you can increase your level of aggressive buy from time to time if you have a bigger discretionary income or you win a lottery along your accumulation process.
The idea of aggressiveness or whimpiness relates to how much of your discretionary income and/or any other funds that you have in your reserves you use to buy bitcoin rather that referring to whether or not you have a lot of discretionary income and/or a lot of money in your reserves.
In other words you can take examples of two guys who have an income of $30k per year, and perhaps they have expenses around $24k per year which is around 80% of their income, which means that 20% ($6k per year) of their income is discretionary.
One of the guys might choose to invest about $100 per week into bitcoin which is $5,200 per year (87%)
The other guy might choose to invest about $30 per week into bitcoin which is $1,560 per year (26%)
One guy is investing more aggressively and the other is investing more whimpily within their income, and of course if they get more income and/or more discretionary income then the level of their whimpiness and/or aggressiveness is measured from within how much they are prioritizing bitcoin within their income level rather than the fact that they earn more money.
Of course, guys can take actions to increase their discretionary income by increasing their income and/or cut their expenses, so we cannot necessarily judge a guys actions merely from his income since some guys might have to work harder than others in order to achieve the level of discretionary income that they end up achieving.. and likely each of us can ONLY really meaningfully measure the extent to which might need to put forth more effort of less effort in terms of the resources that we have available to us.
Any investor that is buying Bitcoin with $10,000 at a go on the downside of the market isn't buying Bitcoin with a lump sum, but with the buying the dip strategy because lump sum is all about buying Bitcoin straight away with a huge amount of money whether the market is on a bullish or bearish.
You are correct that choosing to buy the dip is different from lump sum strategy, and lump sum is a term used to describe how money might be received and also how it might be spent.. so frequently we can attempt to describe our strategies, and when guys refer to lump summing when the price goes down they are tending to refer to buying the dip since they are likely saving for a dip and waiting for such dip.
Sure there could be some guys who receive money during a dip, so the dip is just coincidental to when they are faced with deciding how to allocate that money that they received or alternatively, some guys might be inspired to tap into some assets that they have based the BTC price dipping.. so surely people are free to make their decisions, and many times they might not be inspired to act or even to reallocate out of one asset and into bitcoin until they have been in bitcoin for a bit of time or they have achieved some level of comfort and conviction regarding bitcoin being a superior place to place value.
If you've a large discretionary income present, it's fine to lump sum since the funds are available. Personally, I wouldn't lump sum with everything at once. I'll like to divide the money into 3 parts, lump sum with the first part, use the second part to increase my aggressiveness in DCA and keep the last part for buying my target dip.
So I did lump sum some time back, but personally I feel now (hindsight?) that splitting the same amount into a DCA would have been a more effective approach.
I bought in Nov '24, as a lumpsum. Then in Jan/Feb I was happy but in Feb we got a bit of a dip - right up until April.
Conversely if I'd done a small amount in Nov, then bought DCA below my last buy price I think I'd have made a bundle more.
Situations like this are the reason why it's advisable for investors to always follow up their lump sum investment with constant/periodic DCA. Making a lump sum buy is good, but once in a while keep adding to your portfolio with dca. This will help you take more advantage of the drops that occasionally experienced in the market. Don't just make a one time lump sum buy and feel relaxed.
When we make a lump sum buy, we are sort of leveraging that the BTC price is going to go up rather than down, so if the BTC price ends up going up, then maybe we can relax and bask in the glory of the BTC price moving in our favor.
On the other hand if the BTC price does not go up, then maybe we would just continue to DCA, like you mentioned, which will reinforce our conviction in our recognition that the BTC price is dropping lower than our original purchase price with the lump sum.
Sometimes guys end up lump sum buying at the top or near the top of a cycle, which surely can be frustrating since if they wait for their purchase to be in profits, then they might have to wait a year, two years or even longer for the BTC price to return to their original purchase price and even to go above their original purchase price... .which might also be a rationale to not go all in with one lump sum price (especially when just getting started investing in bitcoin), and might be another rationale to keep buying, even after having had carried out an initial lump sum that might not end up going well, in terms of subsequent BTC price performance direction.
Which is another rationale that even if a guy might attempt several lump sum buys within a 4 year period, it might also be advantageous to hold back some money to be able to ongoingly make purchases, whether weekly, monthly or some other period of time for periodic buys during the intiail 4- years or so that a newbie might be building up his bitcoin holdings.