I intend to commit a fixed amount of my income to acquire a fraction of bitcoin (no matter the rate at the time), for keeps over a 5year duration, without withdrawing or making a trade with it. I.e
To do this, you must control yourself and your coin very well.
- To control yourself: you should put your coins in places that can not give you instant trading orders. Such as a non custodial wallet, then if you want to trade, you must make a deposit transaction to an exchange, wait for 1 to 3 confirmations before you can be allowed to trade it.
- To control your coins: you should use non custodial wallet.
- Two factors interact with each other
I will buy a certain amount of bitcoin every new month and leave it there until 5 years elapse.
You are doing Dollar Cost Averaging (DCA)
I am a bit concerned, however, that the market fluctuations which lead to what makes up the bear and bull seasons may affect the projected yield I have estimated over this stipulated period.
When you DCA, you don't mind much about price fluctuations or big changes in short term. If you have a right mind to start with DCA, you wouldn't have this question.
What are some steps I need to take, to ensure I protect my investment from possible loss over this 5year duration?
Historically, just historically, not futuristic, if you hodl your Bitcoin more than 4 years and 7 months (see the hodl line), you don't get loss.