The Perfect Buy

Today I address the age old debate, and compare the results of whether it is worth waiting to lump-sum buy the bottom of a bear, or just DCA, seeking to alleviate all of the stress that comes with it.

G’day Folks,

Resilience is about how quickly you can rebound from a shock event, and begin thinking and processing your next decisions clearly.

There is a huge swathe of the Bitcoin holder base, who are currently in a state of shock, fear, panic, and totally unable to collect their thoughts.

We have all been there, and the lesson we usually learn is that when we make decisions based on our emotions, it almost always leads to our biggest mistakes.

One of my subscribers asked me a question last weekend, which I believe is the perfect one to answer for today’s post. To paraphrase the question:

I know buying Bitcoin via a dollar-cost-average (DCA) campaign helps with the emotions of investing. However, it is very hard to know how long that DCA campaign should run for.

In the context of a Bitcoin holder with a pile of cash, should I seek to lump sum near the bottom, or is there an ideal DCA strategy that I could employ, and for how long?

This is the perfect topic to address for breaking us out of the shockwave of the sell-off, and put some numbers and context to the execution step.

Today’s note will compare how the lump sum vs DCA strategy has performed through previous Bitcoin bear markets, with a focus on putting the probabilities in our favour.