And this is the function of running a DCA strategy because the price of Bitcoin is not easy to predict in the near future, but in the long term the price of Bitcoin will rise even if there is a decline.
We may be able to speculate the price of it but if it's about predicting it properly and accurately, one thing we can say is that it's always been unpredictable.
From what I've seen over the past few years, the people who guessed correctly were pretty much right. Although it is not possible to accurately predict the price of Bitcoin, some estimates are fairly reliable.
Bitcoin investors gain confidence in investing around speculation. Speculation is not what should give newbies confident to invest, rather they should first have the believe in bitcoin, so that they can invest in a long term with confidence. Speculations might be right or wrong, and what people say about bitcoin price should not be taken serious. Speculations on bitcoin price has mislead some people in the sense that, they start waiting for the dip to buy at a bottom price of their own target, and most times it ends up up playing out and the will miss out, still sitting on the fence believing that the price will certain come true due to what they hear.
Speculations can also give false hope to newbies, that will make them think that bitcoin is a get rich quick scheme, and they will use the money for an important aspect of their lives to buy bitcoin believing in what people told them or what they hear on T.V, and if bitcoin price did not play out that way as speculated, they will get disappointed, and sell of in loss. I am not saying that to speculate is bad, but we shouldn't put that in mind when investing, rather we should see bitcoin as a sound investment that will safe our money from inflation in the long run and also give us good profit in return as a benefit of hodli for long.
If you are under 50. Buying btc monthly for 10 years and hodl it for 5 more.
Then at 65 it should help a lot for your retirement.
You cn have a 5x monthly dip buy. Ie if you save 400 a month dca. and BTC does a 20% dip buy 2000 in btc.
you likely will save 120 x 400 usd with the dca and catch a few dip buys.
so maybe
120 x 400 = 48,000 usd in dca
10 x 2000 = 20,000 usd in dip buys
grand total of 68,000 usd invested in a 10 year period then hodl 5 years this is a 15 year plan for people under 50
this is not advice.
Very quality advice from you, yes we need to hold our bitcoin for up to 15 years expecially if we are younger and the plan is to keep on buying bitcoin with DCA irrespective of our low capital at first untill we are able to have at least a good stash of bitcoin, we plan to use of first 4-5 years to keep on accumulating Bitcoin, at this time period we care less of profit, we are all about building our emergency funds and reserves and buying more bitcoin.
The goal is to have enough bitcoin and hold for long to add more compounding value effect on our holdings.
The DCA strategy is not mainly for the poor or people with insufficient funds; the DCA strategy is for both the poor and rich guys. Anyone who uses the DCA strategy to accumulate bitcoin wants to be free from waiting for the bitcoin price to reduce to a certain extent before he or she can buy bitcoin. With the DCA strategy, you can accumulate bitcoin anytime you want to buy it without worrying about whether it is the right time to buy it or not.
Yes, investing in DCA method is not only for poor people. It is better for everyone to invest in DCA method. If you invest without following DCA method you may regret at some point. How to Regret For example: Bitcoin price is currently at $51k now if you invest your funds together unfortunately you may regret if Bitcoin price drops from $51k to $40-45k. On the other hand, if you invest in the DCA method, you can buy bitcoins at lower or higher average prices. So for all individuals rich or poor it is best to invest in DCA method.
And who said the DCA strategy was for the poor? The purpose of the DCA strategy is to control risk. Whether rich or poor, new or old investors, it is good to control risk. This is because when it comes to bitcoin investment, you will experience good and bad days equally, especially when you are into the investment for the long term. If you think you don't have to worry about risk when your rich, then that is not smart at all. As an investor who has a lot of bitcoin in your wallet, you need to secure it very well and control any risk in the investment. Once in a while, you limp sum, which will add more to your accumulation and continue to DCA.
DCA is a very good method for a high volatile asset like bitcoin, and not only that DCA also is a good method for new investors that have little experience with bitcoin, all you have to do is just split you capital into equal parts and invest on intervals, its very stress free and it doesn't involve and technical or analytical skill to acquire bitcoin.
It has nothing to do with beign rich or poor, using DCA does not mean that you don't have huge capital to buy at once, many chose it cause its the best approach to volatile assets, not every have the leverage of having huge capital so they have to use the DCA by allocating some percentage of their disposable cash either from expense or just extra cash to buy bitcoin.