You're indirectly talking about buying only dips here, newbies aren't supposed to be encouraged to buy simply because there's a presumed dip but should get started and continue buying regardless of the market price movement. For a good discipline, as long as newbies are sure they have discretionary income present,
It will never be logical to just wait for a fall. Rather, it will be a waste of time and lack of confidence. A new investor should never be encouraged to fall. Buy from the current market price, but keep the investment management consistent even through the DCA strategy.
If there is a fall while your investment is consistent, try to buy more units from prudent income.
And keep an emergency fund and backup fund along with the investment. The emergency fund will be your danger companion that will save you from sudden danger.
Follow the DCA strategy while investing in the first stage. And try to increase the portfolio slowly. This will make your investment sound and risk-free.
So after the first stage the investor should discard using the DCA method is that what you are saying? While I agree some of the things you said here, I quite find this particular statement I highlighted troublesome. As an investor, I don't think there should be a stage you should discard using the DCA method if you want to get most out of your accumulation journey. Utilise the DCA method from the beginning to the end of your accumulation phase and you will derive more value in your portfolio.
Well there's a stage you don't need DCA strategy anymore that stage is when you have reached a fuck you stage, in this stage you have already accumulated enough Bitcoin and you can even decide not to work anymore and your accumulated Bitcoin can serve as your source of income and you can use it to settle basic needs, at this stage you can only be accumulating Bitcoin when Bitcoin dips.
Apart from this stage there's no time you should stop using DCA strategy because DCA strategy is one of the best strategy for Bitcoin investment, DCA strategy helps you be consistent and fast in your accumulation journey.
I think every investor have the privilege to decide to switch or mix his accumulation pattern which understandably suits his own cash flows at any point in time. Although it’s pertinent that a newbie investor should be able to accumulate and invest regularly with the DCA method of accumulation either weekly or monthly, but at some point, 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.
That is actually the mistake most of we newbie made when we just getting started. Sitting around waiting for that perfect dip, I was also lured to do that at one point, but thank God I found this forum and in the end we miss out because the market doesn’t move exactly how I was told it would. That is why the DCA method is such a lifesaver, it makes me consistent, no matter what the price is saying.
With time, once someone has already built up a solid bag and understands the market better, then yeah, buying dips can be a good strategy. But relying only on dips from the start is risky, because it means you are always waiting instead of actually building. I would say the smartest approach is knowing your own cash flow and finding a pattern that works without putting yourself under pressure..
New investor shouldn't be waiting for the dip before buying bitcoin because they are still fresh in the market and need to be buying consistently, those who has reached their over accumulation stage can choose to buy during the dip since they will be buying on a lower price.
Waiting for a desire dip can get you discourage not to get started with your bitcoin investment because your expected dip may not come you can procastinate and later end up not buying bitcoin and regret in the future when other who invested will be jubilating, secondly waiting for the dip can only get you little bitcoin in your portfolio.
With the dca strategy a new investor won't be waiting for a dip before buying as you can be buying as you can using your discretionary income and also with any price of bitcoin dip or high either every weeks or every months and hodl for long and buy more when the dip comes it's far more better than waiting for the dip before you can buy bitcoin.