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.
You did a good thing by front loading your Bitcoin investment with a lump sum and shouldn't regret why you didn't split the money you used for lump sum into different parts and use it for DCAing, which would have given you the opportunity to buy the long dip that happened between February to April. As a newbie that's starting his Bitcoin investment, after you have front loaded your Bitcoin investment with a lump sum, you should have an ongoing DCA strategy so that you will be persistent and consistent in accumulate Bitcoin, and it will allow you to take advantage of the market and buy any dip that will occur.
Of course, I'm not saying it was a bad thing; I just felt that DCA would have given more value-per-$ that's all.
In future I'll probably split the lump sum into a smaller one-off + multiple DCAs. It's just a change of approach I guess; let's see what happens!
You don't need to combine the lump sum method and the DCA method if you are not strong enough or have the capacity to do that because you can end up making a mistake or run out of discretionary income though combining the two will boost your investment and make you get to your set target quick but you need to have what it takes to carry out this because lump summing required a large and huge discretionary. Any method you use to invest in Bitcoin will give you a reasonable value provided you are doing it well or properly.
There's nothing wrong about it especially if you are capable.
Since somehow this is good action to do especially if you can adapt well doing or combing those two strategy. Since people doing that will became flexible especially for navigating certain movements of the market or even managing their funding's.
But if they are not capable to do this then maybe they can do the basic things since DCA would provably work well without worrying about certain market scenarios.
There is definitely nothing wrong if an investor could actually do with those two investment strategies.
Like I always says I think it all depends on the amount of discretionary income that we have available, or maybe we probably have some money saved somewhere which we can decide to front load our portfolio should we feel that we are behind schedule with our investments.
I feel like it’s all a personal decision considering what actually fits us perfectly with our discretionary income available, because
lump sum would actually require a whole lot more.
Lump sum buying simply means you are going in all at once. Putting in all your funds at once and not splitting it out that is what lump sum mean. So it is wrong to think that lump sum would require a whole lot. If you have $100 and decide to put all at once into buying bitcoin, then is still lump sum buying since you are putting in all your funds at once .
You must not buy with millions or billions before you think you are doing lump sum buying.