Buying on a dip is definitely a good idea but an investor cannot get advance information about when a dip will occur. And if he can't buy from the dip, his bitcoin portfolio won't grow. This means that this strategy will never be profitable for those who only want to increase their Bitcoin holdings by buying from the dip. If those investors do only DCA then they will have the opportunity to buy on the dip and continue their holdings even if the price of Bitcoin goes up slightly. This will increase their Bitcoin amount. A holder's main objective should be to increase the amount of Bitcoins so that he can build permanent assets in the long term.
I couldn't agree more with you! Combining the DCA with a long time perspective, investors can effectively navigate market fluctuations And steadily grow their holdings. DCA can also help reduce the impact of emotional decision making which is a major pitfall for investors.
if you're using the DCA methord, it's best you stick to it and try not to combine it with any other advanced method that's in most cases not even suitable for starters . It's not as though while accumilating your Bitcoin with the DCA method that if witness a time of DIP that you should buy at that price or that if you have above your set out amount for your DCA that you shouldn't buy much during the dip, that's not bad, what's not going to help that much is having it as a serious plan that you have to buy during the DIP or combine your DCA with with it for you to accumulate a good chunk of Bitcoin. The negative effect with that is that you will be tempted keep our an amount just idle while waiting for the DIP price and because such event is not what you can easily predict, you find out that in your attempt to time the market you might be waiting too long for an event that will possibly not happen.
Even while you're buying your Bitcoin using the DCA methord, thier will come several instances when yiu will buy at low price and other times when yiu might buy at at average or a bit of sn high price, the overal advantage is that you've saved yourself from whatever olay of emotion and timing the ghe market that might arise if you're too concerned about the ar the DIP.
I just have one question please, what is it spelt as HODL instead of HOLD?
thier are stories behind why it's been misspelt and it's now left this way but I feel it shouldn't be a thing of concerned. You can call it HOLD or HODL for all you care as long as you know what you mean and that you holding your Bitcoin for the long term.
