they can also decide depending on the cash they have or an extra money which comes in to use it to lump sum. More so, if an investor accumulates a reasonable large portion of bitcoin and hold over time then there’s nothing wrong if he chooses to buy the dip, and that’s why dip buying is not for newbie investors because there’s every tendency that they will wait until its dip before they can accumulate bitcoin, which of course is a very wrong investment approach for them.
You're just mixing everything up, the fact is a low coiner or a no coiner is not supposed to wait for dip to occur before attempting to buy, as a newbie is advised to stick to the DCA. while going with this method there's every tendency that you will meet a good buying opportunity then you can use that opportunity to front load your investment instead of wasting the whole time, i agree with you when you said that there's nothing wrong if a guy chooses to buy the dip, but this approach is supposed to be applied when they must have reach the status of overaccumulation and not when they're still struggling to reach thier investment goal because going with this approach when you have not stack enough bitcoin in your portfolio is like a waste of time.
The DCA makes more sense as an investment strategy for a newbie, I completely agree with that but that doesn't mean they can't use any other strategy to invest with
just like how JayJuanGee pointed out. It's really a matter of choice and how much money you have available to you at the end of the day, sure a newbie waiting for the DIP is a very terrible thing to do and should definitely be avoided so as to not put the newbie is a spot where they ultimately end up waiting for a dip that doesn't happen and not invest in bitcoin again in the long run so sticking to the DCA is good for a newbie and any other type of investor even, but lump sum is also good to accumulate alot of bitcoin in a short period of time if there is available fund to back it up and even buy a dip whenever it ends up coming you way as well, or are you saying I shouldn't buy at a DIP just because I haven't gotten to the stage of over-accumulation yet?? That doesn't make much sense to me since I can buy that DIP if it comes and still continue my DCAing in peace so if someone wants to add a different strategy to their DCA strategy then they can as long as they understand when they are doing.
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I agree with you. Actually, no one can say exactly when the price of Bitcoin will be low or high. So, instead of waiting for the price to drop, we should start investing by following the DCA regularly.In 2017, when the price of Bitcoin reached from $1000 to $20000, many people waited for the price to drop again, but since then the price of Bitcoin has never come close to 1000 to 2000 dollars, so they missed the opportunity and those who did not invest at that time remained as no-coiner or low-coiner .According to the DCA method, We don't need a lot of money to invest in Bitcoin. If you have a discretionary income and a mentality of investing for a minimum of 4 to 10 years, then it is possible to get a lot of profit even if you invest $10 to $50 per week. According to a report, if someone had invested $10 a week for the past five years from 2024 august, their total investment would have been around $2,620 and
they would have made a total profit of $7,913.20 from their investment, which is around 202.03% return.
So imagine how much more profit they would have made if they hade been investing $100 every week for that 5 year, that's how much potential we can find in bitcoin investment but all of this is only possible when we go long term for at least 1 cycle (the more cycles the better) you don't see short term traders coming out with profit margins like this, instead you see reports of their losses and you see them talking about how the would have made excess profit if they had just done this or that, a confused set of people really. And for some of them the refusal to accept that their method is wrong for bitcoin investment has led to to remain no-coiners till date because they are just too proud to move past their narrow narrative and come to terms with the fact that good success in bitcoin can only come through long term investment.
Once a person reaches overaccumulation status then he might choose to pause any new buying, and he might have a period where he is neither buying or selling, and perhaps once he starts to withdraw, then if the dollar value of his bitcoin holdings is growing faster than his withdrawal rate then he does not need to keep buying..
Do we need to give an example?
It is optional to keep buying once a guy reaches overaccumulation status, and sure he might make mistakes and come to conclude that he is in overaccumulation status and he is not. He also might not really know what overaccumulation status is, so if he does not know, then he is also more likely to make mistakes.
I would think that if someone spends 4-10 years or longer accumulating bitcoin, he might be able to develop skills so that he is able to assess when he has reached overaccumulation status.
I would think that the more common mistakes in bitcoin are related to guys failing to accumulate enough or selling too soon or not really knowing how to manage their bitcoin holdings so that they can sustainably hang onto it, so sure I can see why guys might be nervous about making sure that they have enough bitcoin or more than enough, since guys are likely to make mistakes because they will come to believe that it is good to draw down the principle when it is probably better to withdraw in a way that is less than the rate that the bitcoin is growing in value.. and yeah, guys may also disagree about these ideas about how much bitcoin to accumulate and when they can transition into being able to sell their bitcoin.
I get what you mean, Overaccumulation isn’t some fixed number, it’s more like a personal decision depending on the person's needs and comfort level. For example, let’s say someone has built up enough bitcoin over 8–10 years, and their holdings are growing at around 8–10% or more a year. If they’re only withdrawing about 3% to 5% a year for expenses, then technically their bitcoin stash is still growing even while they are already living off of it, so they don’t really need to keep buying although they can continue if they want to. The tricky part, like you said, is that people sometimes misjudge where they are, some stop too early thinking they’ve already made it and later regret it, while others never feel like they’ve reached enough and just keep stacking/accumulating forever. Honestly, the bigger mistakes usually happen earlier on like selling too soon or not accumulating enough during those early cycles like the first and second one.
At the end of the day, it comes down to experience and discipline. The longer someone has been accumulating bitcoin, the easier it gets for them to judge when they have crossed into that overaccumulation territory and shift their mindset from pure accumulation to careful management.