In collecting Bitcoin, everyone has a different strategy, there are those who buy it all at once whatever the price when they buy it and there are those who use the DCA method by collecting consistently according to the date they have set, but in both cases there are advantages and disadvantages too because if we buy At the same time, whatever the price at the time of purchase, of course we have to prepare a lot of money and we have to be able to hold it for a long period of time to be able to make a profit and if we use the DCA method, of course we have to buy it every date we have set and it will be very difficult if we don't have a fixed income.
Yes, that's right, when someone wants to invest in bitcoin, there are definitely many ways to buy it. Starting from lump sum purchases (Lumsump), to periodic purchases (DCA). So basically there is no need to be confused about this. Because the main purpose of purchasing bitcoin is of course to add to your portfolio. So whatever purchasing method you choose, the results will definitely not be much different. Moreover, if the aim of buying Bitcoin is to use it as a long-term investment, in my opinion if you want to use the Lumsump or DCA technique the results will definitely be the same.
I totally disagree with you here, purchasing Bitcoin through the lumsump strategy and the DCA method can never give the same results, the lumsump strategy is way more profitable because you are only buying the dip and hold, which means you can get a very large amount of Bitcoin at a very cheap rate, compared to DCA that you can even buy at an expensive rate most times. what makes the DCA method special is that as an investor that don't have much capital, you are able to buy at your own comfort bit by bit, monthly or weekly and you don't have to wait for the deep for you to buy, because most times that deep you are actually waiting for my not come again, since no body knows the lowest possible deep this time around, so it's mainly good at accumulating large amount of Bitcoin over time.
I equally disagree with you that lumpsum buying gives more profits. Have you thought about missing opportunities and FOMO that is common with lumpsum buying? You will agree with me that it is difficult if not impossible to determine the true dip, this is why most people who wait for the dip often experiences missed opportunities. Using the DCA method on the other hand, does not really require the waiting and possible missing of opportunities. I will give you some examples. Instead of arguing which gives more profit, I think we should be focused on how best we can apply that which is suitable to us, I mean our preferred method of collecting bitcoin.
There was a time bitcoin stayed around $26k for a long time. Those that buy the dip will be waiting for the dip here while those using DCA will be collecting a lot of bitcoin at this price. Bitcoin never gave any shock before price left this zone to the $29k to $30k area. Those buying the dips might either miss the opportunity or buy tiny fraction of their budget. Same scenario played out in the $36k and even when price crossed $39k.
It is therefore very clear that the DCA method can be very useful and highly profitable in most cases even when price is in a range or in downtrend. It is also important to emphasize that the method of buying is a matter of individual choice and so long as the purchase is for long term holding, it is absolutely profitable.
I don't think it's right for us to argue which strategy is better or which is not, at the end of the day its our ability to hodl our crypto that really matters. But in terms of strategy, how we apply it could give us different results, like applying lump sums on dips and using DCA to navigate the volatile market.
I believe that the purpose of saying newbies should use DCA is because of the fact that to be successful at lump sums, you need a little market timing and should be more experienced about bitcoin than others, cause lump sum could be seen as a whole buy and just imagine newbie that bought Bitcoin at the last ATH of about 60k and till now the price hasn't even gotten close to it, and surely he must not have developed a good mindset for investing and might have sold out, so hence we say that DCA is better for newbies cause its easy to learn, doesn't require much knowledge to start and most of all, you are safe from high volatility.
So at the end of the day it's based on preferences as an investor and which strategy we feel safe practicing.
Snip
you shouldn't procicute yourself over selling some stash Wayback when there was an uptrend. at a point in every one's life there is that tempting sensation that make you feel to sell off, and you might end up selling some stash but that doesn't change anything from you. let by gone be by gone. what matters is how you where able to make some corrections and still keep to the rules. by now I know your wallet will be like a straw berry, waiting to chop off. LOLs
except just to sometimes realize how our perspectives change, and even when I analyze some of my past behaviors, I will sometimes see some of the behaviors, practices and mindset differently now as compared to when I was doing some of them,
That is exactly what am saying. In as much as we hold for long sometimes we decide to sell some stash and it is based on individual differences. because you have it and decides to sell off when you see the need for such. Afterall you have hold for a long term, of which not every one could even hold that long. They would have sold off. So the important of investment is to use it when necessary. and there shouldn't be a question towards it. Because HODL onto bitcoin is not hold forever, or hold into death. but HODL for a long term for future porpos. and it's your priority. Afterall you reaped the fruit of your labour and it didn't change the fact that your holding is still higher than the stash you sold. Where it could have been bad is selling of an unreasonable amount that will affect your entire holding. But checking the amount you sold then was just a peanut and wouldn't even affect the accumulating process.
IMO I think it's also good investor should have a purpose for investing in bitcoin, cause I feel that one of the reasons that made you hold this long was because you had a purpose of investing and maybe on the long run that purpose changed and evolved into you wanting to always have a portion of asset and monetary value in bitcoin. Many investors have switched roles from long term investors to short term because they didn't have a purpose or reason to invest, some of them heard about hold and bough some amount of bitcoin and when the price soared they sold, and you would find out that it was never their plan at first but they didn't have any future purpose for investing and holding.
Our purpose for investing at times must not be something great, and no one would tell me he want to hold forever without selling sometimes to maybe get that dream car, he wished for something and some even invest cause they see bitcoin as a better way to store value.
Judging from sir Jay's last example of his friend’s that he sent some bitcoin and even advised them to hold and purchase more, the way I see it this people didn't have any any self generated reason to follow him on that path despite all the profits and reasons he showed them, so they couldn't keep up with holding and sold their bitcoins.
In conclusion to what I'm saying, I think it's a good thing that we have our own reasons or I can call it motivations to invest in bitcoin, even tho this reasons might change and we might want to hold or maybe even have a portion of our wealth always in bitcoin, having a purpose or reason to invest is a must if we must stay long term.
