Your observation seems quite correct, Hueristic. My words remain materially inadequate and insufficient in the eyes of Dabs.
It's not like that at all my friend, your words are all good.
I just know you can do a little bit more. Maybe we are getting caught up on semantics, but to me, your assertion that I can do a little bit more seems to establish that you believe that my words are not enough in these here parts.
Perhaps you already do and no one knows about it.
For me, personally, it does not really seem to be an appropriate topic of this thread. I tend to be fairly selective in my sharing of some of my personal details, and yeah, maybe a few personal details might slip in, here and there but my level of do-gooder-ism, to the extent that it exists, is not one that I tend to think about bringing up or that I tend to believe necessary to bring up.
As for the DCA, I've also read it somewhere else that one of the better alternative strategies is to buy in lump sump what you can, maybe in the case of bitcoin after testing out a small amount, particularly if it is a new exchange or method you are using.
When getting into bitcoin, there can be various reasons to do lump sum and to do DCA. The reasons vary from each persons situation, but like I mentioned DCA can work quite well for people who are considering long term price potentials and do not want to get caught up in either the day to day or attempting to time dips with any kind of precision. Of course, lump sum can be quite well in bitcoin, too, but frequently, newer investors might not even have lump sums that are available.
I have frequently suggested that if someone gets a hold of a lump sum of let's say $6k, then the person divide it into three. 1/3 invest right away, 1/3 dollar cost average over a reasonable period of time, maybe even 6 months, and 1/3 buy on dips. Of course, my recommendation might change a little bit, depending on what the market it doing and cashflow of the person and other goals that the person might have.
For both buy in and cash out.
I already stated that I believe that it will tend to be erroneous to structure DCA for cashing out, but whatever, people say all kinds of thing, and some of the things are dumb including, in my opinion to DCA on the way out, unless there are specific circumstances justifying such a way about it.
Cash out method is entirely dependent on any target acquisitions you have in mind, but the DCA suggestion is geared more towards a similarity to a so called "safe withdrawal rate" where the principal value is largely unaffected.
I agree that DCA on the way out might work in some circumstances. At least considering the matter might be better than NOT weighing various ways to do it, but surely DCA on the way out has a lot of different factors, like I mentioned in my earlier post as compared to getting in, so in that case, it is not as much of a no brainer as for on the way out as it tends to be for on the way in.
With bitcoin specifically, increase in value is mostly capital appreciation.
If you are saying that bitcoin is treated as capital gains, then surely that can be a factor to consider, as well in terms of tax implications, of course.
The only reason DCA would make sense is if you've already gotten your initial allocation of corns, and rely on outside sources to continue buying in, and most people don't have large amounts of funds set aside for that. So they get from what they can, which is usually a wage or periodic profits or monthly or quarterly dividends from other investments or sources of income.
Yep. Agreed.
The average working person would get it from their paycheck, which is either every month or every two weeks. They set aside some amount on that day and just buy whatever corns it will let them.
There are various ways to structure, and sometimes people do it more frequently because they want hands on, but then other times, they might spread it out because they are trying to minimize fees.
The key point which I believe you are trying to make is to remain as unemotional about the process as possible, so DCA affords some of that ability. No thinking. No waiting. No timing. Just buying.
I think that what I had attempted to say was that DCA in makes more sense than DCA out, for the reasons that I had stated in my earlier post.
As for selling, that again depends on your particular situation. If you don't need it all today, can wait a little bit; however it is always a good idea to keep a minimum amount of fiat around so one does not get aggravated by sudden or unexpected expenses, almost all of which can only be paid in fiat or legal tender.
I agree that sometimes tailoring increments might be better than a lump sump, but at least during the cashing out process, that lump sum option might be there, and when buying in, the lump sum option might either NOT be there and/or might end up being the less practical approach for getting and maintaining skin in the BTC game.
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