Secondly, as a newbie to Bitcoin you don't have to be aggressive from the start, invest within your capacity and little by little you would reach your accumulating target. investing aggressively outside your discretionary income could get you stuck, especially when the market price drops. So The safe approach is by investing the money that is made available consistently, till you figure out how to increase your discretionary income.
As a new investor, it is better not to take the risk of aggressive investment, but if he manages his investment activities normally, especially by regularly depositing Bitcoin through DCA, then he will be able to build a large portfolio in the long term. Since there are constant ups and downs in the market, those who invest regularly will definitely get good opportunities. If they invest a little more as an opportunity rather than panicking about the fall of Bitcoin from time to time, then they will definitely benefit from the investment. If an investor creates a separate fund along with his regular investment, then if there is a big fall in the market, then at that time he can use that money to invest. However, it should be remembered that such purchases should never be made with his emergency fund money. It is better to use the emergency fund only for urgent needs.
The longer the Bitcoin investment, the more profitable the investor will be. Because the price of Bitcoin has been corrected and has fallen sharply at the moment, those who participate in Bitcoin investment by maintaining the continuity of purchase will play the only good role. It is very easy to invest in Bitcoin by following the DCA method, and it also becomes much easier for him to maintain Bitcoin investment for a long time. If you are prudent, it is very easy to move forward with Bitcoin investment and focus on being successful.
In my opinion, it is most effective for new or ordinary investors to follow a similar investment strategy in terms of necessary investments. Because it has less risk and the investment works according to the investor's strategy. For example:
New/low capital investors should not make aggressive investments, no matter how much the market seems to be dipping. But if you divide the investment into three parts in advance, i.e. the money to start investing, backup fund (money to increase investment as needed) and emergency fund. Keeping these in hand, if the market dips by 20%-30% after starting the investment, then it is not wrong to see it as a dip buying opportunity. However, prolonging it according to the DCA plan is the right decision for all investors.
Your description of how to think about aggressive investing comes off in a confusing way. Your general idea that less aggressiveness from the start is a good one, yet the idea of being less aggressive is not about whether or not we are poor but instead how much we choose to use for our investment within the discretionary income that we have available. Of course, if someone is more poor, then it is less likely that he has discretionary funds, yet as soon as someone has discretionary funds, they can choose how much to invest versus putting into back up funds and/or discretionarily consuming.
The other matter related to changing aggressiveness based on dips seems like a bad idea to me, especially for newbies, and especially if we are gravitating towards thinking about bitcoin as an investment rather than trying to trade and/or gamble with it, and if we are investing, then likely our timeline would be 4-10 years or longer.
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The longer the Bitcoin investment, the more profitable the investor will be. Because the price of Bitcoin has been corrected and has fallen sharply at the moment, those who participate in Bitcoin investment by maintaining the continuity of purchase will play the only good role. It is very easy to invest in Bitcoin by following the DCA method, and it also becomes much easier for him to maintain Bitcoin investment for a long time. If you are prudent, it is very easy to move forward with Bitcoin investment and focus on being successful.
Yes but all hands must be on deck I mean someone should be busy with their accumulation while holding for the long term because if someone is not busy with his or her accumulation no matter how long they will hold Bitcoin the profit will amount to nothing even though Bitcoin surge high so the only way they can get something reasonable is to continue accumulating and holding for the long term so that if Bitcoin price surge in that long period of time they will have something to be happy about.
I, also, have difficulties relating to so many folks who think about bitcoin in a way that is putting in a lump sum and then just sitting on the investment for many years, rather than a more active strategy that involves ongoingly adding to the investment. It seems to me that so many folks get worked up about their level of profits (in terms of percentage) rather than a more meaningful measurement that involves how many units (satoshis) that they have accumulated. And, for so many people it is not even practical and/or reasonable for them to invest in a lump sum, so they end up creating another error of presuming that they have to save up in cash prior to injecting their investment amount into bitcoin at an optimal time... which yeah, brings us back to the more practical approach of actively and ongoingly building up the bitcoin investment through time, aka DCAing into it.. so then at some point if the BTC prices goes shooting up, we have already spent a lot of time establishing our number of units (satoshis) at prices that are on average much lower than the price that the BTC ends up shooting up to. Of course, the shooting up is not guaranteed, so we invest according to our recognition that the shooting up is not guaranteed.
