Bitcoin Investment is all about for discipline in other to succeed if not you will just be at the fence watching, without a normal source which I think you are talking about steady income, you can still have your discretionary income if you are serious about investing into bitcoin, you can get it from any job you do that fetches you income ,even if quarterly, or annual job as long as you have made up your mind and are serious about it, if you can't get discretionary income from your present income is to look for a supportive source of income to make you a bit stable and invest, bitcoin Investment using the dca strategy does not need much money just %10 only whenever you have funds on you and since the t is for a long-term it will be beneficial to you, and if you don't have money to continue your investment, you can pause until you start having money and then continue from where you stop .
I agree, the truth is this makes me remember that on the Spanish board I said something like that and I didn't know that leaving some discretionary income to buy on the dip was a variant of the DCA method, because the DCA method consists of buying daily, weekly, monthly whatever the quota of money to accumulate, I thought that some other income to buy on the dip was another strategy or method and no, it turns out that it is the variant, but it is the safest way to do intelligent DCA work.
I would not consider holding aside money to buy on the dip to be a variant to DCA, even though buying on dips could be a way to supplement DCA.
Buying on dips is not a variant of DCA because it is different. It does not guarantee buying right away and as soon as you have money, but instead it conditions the buys for if the price dips.
Buying on the dip may or may not happen, since in order for buying on dip to take place the BTC price has to go down to the targeted price level in order for the buy(s) to execute. If the BTC price does not go down enough to reach the targeted amount(s), then the buy(s) do not execute.
DCA can be designed to buy as soon as you have money coming in, and it is not conditioned on price changes.
DCA and Dip buying are mostly mentioned together that some folks might even feel as though they are the same or that one is a variant of the other, but just as you’ve rightly and vividly noted, they are both two different concepts and approaches which is equally backed with different mindsets. The fundamentals of the DCA strategy is consistency, it has no business with timing the market or waiting for DIP before an investor deploys his funds to buy Bitcoin, rather waiting around and targeting a particular price range, the DCA strategy prioritizes steady accumulation. One of the main advantages or strengths of the DCA strategy is the fact that it takes away waiting, hesitation and any form of guesswork. As long as the money is there, all you gotta do is put it in based on the schedule you choose that suits perfectly well with your individual factors, regardless of the price. Most investors has landed themselves in such a messy situation simply because they felt they could and attempted to outsmart short term market volatility, but with the DCA approach, you get the chance to participate in the market with having to put yourself into any form of pressure.
Although on the other hand, we could consider the dig buying strategy as opportunistic by design. The strategy is quite conditional and thereby could potentially limit you from being actively involved in Bitcoin, simply because you’re waiting for the best entry point. And one thing most people don’t really understand about DIPs is the fact that that expected DIp may likely not come when you’re expecting it to, while you’re busy waiting, the price might be busy climbing and climbing and you’ll just be holding that cash and this here is a a major trade off.
So yeah, you’re totally right , DCA is more about certainty and consistency, while buying on dips is more about attempting to capitalize on conditional opportunities. They are not the same and shouldn’t be treated as one but one can actually supplement the other which kinda shows a balanced and strategic approach.