We are still humans.
Speak for yourself.
[edited out]
Ultimately I agree that there could be some element of DCA investing that is the "easiest" of any kind of investment approaches, but whether we label DCA as easy or not might also depend upon context, since even lump sum could be easy in the sense that maybe a guy buys bitcoin one time with a lump sum, and then just waits for 4-10 years or longer to see what the lump sum amount had done.
yea truely lump sum is another easy way of investment strategy that allows you to invest once at ago and never stress up to regularly buy bitcoin through DCA. though that doesn't mean that some folks will not preferably chose other strategy against lump sum too like buying the dip, because I know that not everyone will like to combine the 3 investment approach all together. some may chose DCA while some will chose lump sum, and some will only like buying the dip. so each person will chose the investment approach that is easy for him and which it is not a must that everyone will follow all approach, but for a better investment goal all investment approach is needed for a better acculturation process.
You likely are getting it wrong if you attempt to describe personal motivations ONLY in terms of "what is easiest?" since easiness is likely ONLY one of the factors to consider when it comes to investing in bitcoin or any other investment or even when it comes to cashflow management (and personal financial management), which is an ongoing process that also involves practicality and perhaps even attempts at allocation decisions that are based upon attempts to predict present value as compared to future value (which is based on probabilities rather than anything upon which we have concrete black and white knowledge).
why I chose DCA as top priority is because regular buying of Bitcoin through DCA is like getting addicted to invest and saving from unnecessary expenses. you always recite it as a poem in your head to invest all the time, it gives you that impression and constant zeal to always buy regularly Instead of wasting some money for fun on weekly or monthly basis. because there some persons who recieve a huge amount in a contract or some business deal and invest in lump-sum for interval of 4-10 years and stop investment.
Well, there is some value and practicality that comes from putting some systems in place in which perhaps you are forcing yourself to consider buying bitcoin on a very regular basis, such as weekly, so you are reinforcing a habit and you are continuously putting your bitcoin accumulation into play, so that if you end up getting some kind of extra cash that comes in, you already have a place to put some or all of that extra cash, and you do not first think about consuming that extra cash, but you end up balancing your decision regarding how to treat that extra cash with a system of priorities that you put into place and that you are weekly reinforcing your practice, even if some weeks you might ONLY invest $10 and other weeks maybe you invest $100, but from time to time, you might invest several times more than $100 because you have more cash during certain periods of time.
where as they have a well paying job that gives them a regular payment every week or month which could have been used for regular DCA and buying the dip but they think that they have money in bitcoin which they have a 4-10 years plan, and may spend some money recklessly because they didn't deciplined themselves for regular DCA. I can say that DCA is another way of self deciplined that allow you to make judiciously use of your money without spending it any how and indirectly creating wealth for the future or for our children
Another thing about receiving a surprise lump sum amount, there surely could be some thoughts and calculations wether to divide the lump sum into 1) DCA, 2) buy the dip 3) invest right away (another way of saying lump sum into it), 4) buttress your emergency fund and other reserve funds 5) use part of all to consume some good or service...
So you know the categories, and if the lump sum is a high enough amount, you could even decide to put some of it into each of the 5 categories, while at the same time, you may well already know that you already have a DCA system and perhaps even a buy on dip system in place, so your decision regarding how to treat your lump sum amount that comes in is only supplementing a system that you are already following.. so it is much easier to plug any new amounts into an already existing system as compared to folks who might not have those kinds of systems in place and if they are not regularly investing into anything (not even bitcoin or anything else, or if they might have some inferior investment locations in place), they might merely be incentivized to consume or even to waste extra amounts of money that come in since their options are smaller based on their NOT having good systems already in place...and surely many of us (active participants in this thread) already recognize and appreciate that the inclusion of bitcoin in our "good" systems is likely (even though not guaranteed) to bring us a lot of value and more options in the future to have bitcoin in our existing systems rather than NOT having bitcoin included in our currently existing systems (and even if we do not have good currently existing systems, we can build such systems or be in the process of improving our systems by making sure that we include bitcoin within whatever systems that we decide to build and to follow - and we follow such systems by continuing to reinforce them through ongoing, persistent and consistent practices).
An investor will fully understand how to invest from here, because once you buy the dip it will hit the highest level in the next bull market.
Ok. My question to you is whether you have invested at all? As you mentioned buying bitcoins during the dip season will lead to maximum profits or peak levels during the next bullish season. Yes that's right. But should we wait for dip time, no. Instead we should invest using DCA method regularly so that we can enjoy the benefits of both dip season and bull season.
Yes you are right, we should not wait for dip market to invest, we should continue investing in DCA method for long term. Now if someone waits for the price of bitcoin to fall, then it may happen that the price of bitcoin may rise instead of falling, then he will not be able to invest. So before investing in Bitcoin we need to decide to hold the investment for long term. It is true that if one invests in Bitcoin and holds it for a long period of time, he will surely profit. Keep investing at any time in any situation and hold for long term.
dca investment strategy has made our investment so easy that now we don't need to manage enough money to invest with that money but we have the opportunity to invest with the amount of money we have at any time of the market. What else can an investor get from this? One of the major advantages of DCA investment is that in this investment strategy, the investor is invested at almost every price point in the market so that when there is a lot of dumping in the market, the investor invests and when there is excess pumping in the market, the investor invests.
By investing in two phases of the market, investors have the potential to make a profit even if they over-dump and over-pump.
I think investors who know about DCA investment strategy will definitely not want to invest in any other investment method.You described several of the considerations of why to do DCA in very good ways, including the implication that DCA allows for a very good focus on managing personal finances while at the same time ongoingly, persistently and consistently investing into bitcoin, so there tends to be a lot of value to consistently invest in bitcoin while building and/or maintaining strong financial management practices.... and DCA works very well with an ongoing tailoring to achieve such objectives - but that still does not mean that DCA is the best for all circumstances and/or that lump sum and/or buying on dips can have a lot of advantages during various scenarios to become preferable to DCA under those kinds of circumstances.. and do I need to explain further with examples or might you come up with your own examples to verify that each of the strategies (of DCA, lump sum and buying on dips) has advantages in certain circumstances, and frequently I consider HODL to be a strategy that comes from either having had made errors or even coming when there might be a transition from a status of still accumulating to a status of maintenance or liquidation... so even HODL can have its advantageous place under certain scenarios in which each of us has to figure out these kinds of balances and applications, and we are not always even going to end up applying our strategies in the best ways, but hopefully we are trying to optimize our strategies as best as we can based on our putting systems in place, learning along the way and sometimes adapting our strategies (tweaking) along the way, too.
In as much as I couldn't understand or interpret the message you are trying to pass across due to grammatical structure, I still think there are some information that you talked about that are not correct in anyway.
dca investment strategy has made our investment so easy that now we don't need to manage enough money to invest with that money but we have the opportunity to invest with the amount of money we have at any time of the market.
I was quite disappointed after reading this first part of the post, because it seems some people don't even know what DCA means since the introduction of this thread.
Of course, I can't dispute the fact that DCA method is an easy strategy to pratice, especially as a new investor, but the question is do you even know what DCA means and how it is done ?. Well let me give you a brief explanation:
DCA also known as Dollar Cost Averaging( in full), is a strategy that allows investors to invest
same amount of money at
regular interval. Which means an investor might choose to invest $70-$100, let's say every first monday of the month. This investment should be made regardless of the market condition and price of Bitcoin.
So by saying we can"
invest with the amount of money we have" is misleading.
Up until this point, you are correct in everything that you say Felicity_Tide; however, there is no need to be so strict in your definition of what counts as DCA.
With DCA, there are options and discretion that still will keep you in DCA, you can be strict in terms of both amounts and in terms of time, yet you can also be flexible in regards to both amounts and time.
So, I would not get so caught up in terms of saying that DCA has to be a fixed amount at a fixed time, since it is even likely that anyone with a fixed amount and a fixed time either has fixed discretionary income or they have chosen to invest into bitcoin with their DCA strategy in a somewhat passive (and perhaps less aggressive) kind of a way.
And, yeah, guys could still be employing DCA whether they choose to be whimpy or aggressive and whether they choose to be regular or irregular in terms of quantity and/or time. Sure, there could be such erraticism in terms of an accumulation style/practice that it might no longer seem to fit into a DCA definition, but merely employing flexibility in terms of time and/or quantity would not in itself disqualify an approach from falling within a style/practice that is categorized as DCA.
And also, by saying " we don't need to manage enough money to invest" should be thoroughly reviewed and corrected as well, because I see no reason why we shouldn't manage. Managing our income even helps us better in identifying a specific amount that can be maintained (for dca purposes) over a long period of investment term. If you can't manage your funds, then sorry, you might be tempted to slash what you've agreed to be your DCA investment funds.
Personally, I believe that you are misreading Lidger, and Lidger might have had been trying that we don't need to have a lot of money in order to invest... which is a true statement. We frequently consider how much is our disposable income, and surely if we have disposable income then we are able to invest, and if we do not have disposable income then we might believe that we are investing, but instead we are gambling because we might be "investing" with money that we actually need for our expenses and we are hoping that our "investment" or our gamble pays off prior to our needing the money.
Like I have always pointed out, there must be proper planning. You must know your strength and how much you can genuinely invest at regular interval, and not you investing just what you have(calling it a DCA strategy).
I am not sure how much there is a need for "proper planning," yet on a basic level to get started in investing, there should be some kind of a determination that you have discretionary income, and many people might already have sufficient knowledge of their cashflow in order to make a rough calculation in regards to whether or not they have discretionary income so that they would be able to invest. Surely you are correct that the more that we want our investment (and/or accumulation) of BTC to be sustainable, then we likely have to have some plans regarding how much we want to invest into bitcoin and various ideas regarding how to get to places that we might want to go and whether we might want to use DCA or maybe to use Lump sum, buying on dips or maybe some combination of two or three of these approaches to BTC accumulation/investing. Also, some folks might not even want to invest, but they want to trade, so there might be some needs to consider whether they are wanting to invest or trade, and surely many of us consider investing to be preferable, including that the topic of this thread revolves around presumptions of investing into bitcoin being preferable rather than trying to trade it.
One of the major advantages of DCA investment is that in this investment strategy, the investor is invested at almost every price point in the market so that when there is a lot of dumping in the market, the investor invests and when there is excess pumping in the market, the investor invests.
By investing in two phases of the market, investors have the potential to make a profit even if they over-dump and over-pump.
Your information is somewhat confusing. You are unable to distinguish between who is making the dump and pump, to the investor you are talking about. Morever, I personally don't use the word
pump and
dump for Bitcoin, but use them for shitcoins.
Sure Lidger could have potentially been more eloquent in his choice of words, yet pumping and dumping still exists in bitcoin, yet it also seems that Lidger's overall pint about DCA being applicable in any market condition remains valid, yet surely when there is discussion about pumping and dumping, readers of those ideas might get some wrong impression that there might be some needs to pay attention to whether there is pumping and/or dumping, yet Lidger still sticks to the point that with DCA buying takes place in either kind of market.. which truly is accurate, even if it was expressed in a bit of a weird way that seems to throw in trading ideas rather than investing ideas.. while at the same time, many of us can recognize and appreciate that bitcoin price dynamics can be quite volatile, and we should already be financially and psychologically prepared for a kind of inevitability of BTC price volatility and continue to buy during volatile periods, even if those volatile periods might be extreme (in terms of dumping and/or pumping as Lidger seemed to have had referred to such BTC price dynamics).
I think investors who know about DCA investment strategy will definitely not want to invest in any other investment method.
This is clearly what you think, but trust me when I say that some investors, especially those who buy massively don't use this strategy. And that doesn't mean that they are not aware of this strategy, because it's totally their choice to choose which strategy to opt for. But the reason why we encourage the dca strategy on this thread is to help new investors accumulate with ease and with less risk, morever, I use this strategy as well. These are my opinion.
I already responded to this point above, and surely from my own perspective DCA is a very good and strong strategy that works very well for beginner investors (or investors who might not be beginner but they are still using DCA to enter into a position over time rather than choosing lump sum or buying on dips, to the extent that either lump sum and/or buying on dips might be applicable or preferable to their situation). The essence of matter may still well be that DCA is the better of strategies for an overwhelming majority of people who are getting into bitcoin, especially if we may well consider that an overwhelming majority of the world's population (perhaps somewhere in the ballpark of 99%?) does not have any or even a sufficient amount of exposure to bitcoin prices or even better direct ownership of bitcoin...so we might well presume that an overwhelming majority of the world's population may well want to choose DCA first when getting started (or getting exposure to)with bitcoin. Lump sum and/or buying dips can supplement DCA and might even sometimes be preferable, yet we cannot necessarily presume which method is preferable, and surely once a person has spent a decent amount of time accumulating bitcoin, then his own amount of BTC accumulation may well end up affecting the extent to which he might want to continue to employ DCA or if one or both of the other methods might become preferable over continuing to DCA into BTC.
. Well, we don't have to be too emotional to the point of calling their action irresponsible because believe it or not, there will always be buyers and sellers in the market in response to the forces of demand and supply. Besides, if there are no sellers willing to give up on their Bitcoin easily, many people like us will not see the opportunity to take advantage of such generosity.