Save for the Dip and then Buy the Dip. Instead of buying every month, what is the chance of you saving that money in a
separate savings account and then buying on the Dip? I also followed your strategy, but that lead to situations where I
bought at the peak. If you buy low and sell high, you will maximize your profits.
separate savings account and then buying on the Dip? I also followed your strategy, but that lead to situations where I
bought at the peak. If you buy low and sell high, you will maximize your profits.
This strategy is called dollar-cost averaging (DCA), which is about buying a certain dollar amount of bitcoins regularly. In the OP case specifically, you buy when you have some spare money, regardless of the current price as the DCA approach suggests. It makes perfect sense because you can't know in advance whether you are buying at the actual dip or top. I mean price can always plunge deeper as well as rise further below or above your entry point. In other words, while looking for dips, you may lose an excellent opportunity to catch a major uptrend. And even if the price goes lower later, you will still be able to average down at the next buy.
