𝗦𝘁𝗮𝗰𝗸 𝘁𝗵𝗲 𝙈𝙤𝙨𝙩 𝗦𝗮𝘁𝘀 𝘄𝗶𝘁𝗵 𝘁𝗵𝗲 𝙇𝙚𝙖𝙨𝙩 𝗘𝗳𝗳𝗼𝗿𝘁

Unless you’re 𝙧𝙚𝙖𝙡𝙡𝙮 lucky, and just happen to buy bitcoin at the bottom of a dip, you’re not going to be able to time the market.

There are professionals who make a 𝘤𝘢𝘳𝘦𝘦𝘳 out of technical analysis and trading, and even 𝘵𝘩𝘦𝘺 are often wrong.

So how can you stack the most sats, without even breaking a sweat? The answer is 𝗗𝗼𝗹𝗹𝗮𝗿 𝗖𝗼𝘀𝘁 𝗔𝘃𝗲𝗿𝗮𝗴𝗶𝗻𝗴.

Read on to learn more👇

Dollar Cost Averaging, or DCA, is the practice of 𝗽𝗮𝘆𝗶𝗻𝗴 𝗮 𝗰𝗲𝗿𝘁𝗮𝗶𝗻 𝗮𝗺𝗼𝘂𝗻𝘁 𝗳𝗼𝗿 𝗮𝗻 𝗮𝘀𝘀𝗲𝘁 — in this case, spending fiat for #Bitcoin — 𝗮𝘁 𝗿𝗲𝗴𝘂𝗹𝗮𝗿 𝗶𝗻𝘁𝗲𝗿𝘃𝗮𝗹𝘀, 𝗿𝗲𝗴𝗮𝗿𝗱𝗹𝗲𝘀𝘀 𝗼𝗳 𝗽𝗿𝗶𝗰𝗲 𝘃𝗼𝗹𝗮𝘁𝗶𝗹𝗶𝘁𝘆.

But wouldn’t it be better to wait for a dip and 𝘵𝘩𝘦𝘯 go all-in? The problem with that is you might miss the dip, and then the price may never go that low again. Or, if you 𝘥𝘰 go all-in on a dip, then it may continue dipping lower for a while.

When you DCA into Bitcoin, you will sometimes buy high, and sometimes buy low, but it all evens out in the long-run. When you try to time the bottom, you may give-in to your fear that the price is going to continue falling, and you’ll miss your chance. Or you may go all-in, and then the price 𝘥𝘰𝘦𝘴 continue falling, and your bitcoin loses purchasing power until the next bull market.

𝗕𝘂𝘁 𝗗𝗖𝗔𝗶𝗻𝗴 𝘀𝗼𝗹𝘃𝗲𝘀 𝙗𝙤𝙩𝙝 𝗼𝗳 𝘁𝗵𝗲𝘀𝗲 𝗽𝗿𝗼𝗯𝗹𝗲𝗺𝘀. There’s no cause for fear, because you’re ignoring the price and buying whatever your fiat can get. And if the price 𝘥𝘰𝘦𝘴 drop right after you buy, that’s okay too, as you’ll buy again later and a lower price, and the average price you bought at will still be low.

Don’t believe me? Let’s look at an example of Alice and Bob. They both have $3000 to spend on bitcoin, and they both start on 17 December 2017, at the height of the 2017 bull run. Alice starts buying $10’s worth each week, and Bob goes all-in with the $3000.

What would they have now? Alice would have kept buying until last September, and she would have 𝗷𝘂𝘀𝘁 𝘂𝗻𝗱𝗲𝗿 𝟬.𝟮𝟲 𝗯𝗶𝘁𝗰𝗼𝗶𝗻. Bob, on the other hand, would only have 𝗮𝗯𝗼𝘂𝘁 𝟬.𝟭𝟱 𝗯𝗶𝘁𝗰𝗼𝗶𝗻.

The only way Bob could have stacked more sats than Alice is if he had made a lucky guess in timing the market, which by definition is merely gambling. But Bitcoin was never meant to be a tool for gambling; 𝗶𝘁 𝘄𝗮𝘀 𝗺𝗲𝗮𝗻𝘁 𝘁𝗼 𝗯𝗲 𝗽𝗲𝗿𝗳𝗲𝗰𝘁𝗹𝘆 𝘀𝗼𝘂𝗻𝗱, 𝘂𝗻𝗰𝗼𝗻𝗳𝗶𝘀𝗰𝗮𝘁𝗮𝗯𝗹𝗲, 𝘂𝗻𝗰𝗲𝗻𝘀𝗼𝗿𝗮𝗯𝗹𝗲 𝗺𝗼𝗻𝗲𝘆. Would 𝘺𝘰𝘶 risk losing that through gambling?

𝗗𝗼𝗹𝗹𝗮𝗿 𝗖𝗼𝘀𝘁 𝗔𝘃𝗲𝗿𝗮𝗴𝗶𝗻𝗴 𝗶𝘀 𝘁𝗵𝗲 𝗵𝗲𝗮𝗱𝗮𝗰𝗵𝗲-𝗳𝗿𝗲𝗲 𝘄𝗮𝘆 𝘁𝗼 𝘀𝘁𝗮𝗰𝗸 𝘁𝗵𝗲 𝗺𝗼𝘀𝘁 𝘀𝗮𝘁𝘀. It’s fine if you want to gamble by timing the market, but the most important question to ask yourself is whether you want to end up with more 𝘧𝘪𝘢𝘵 or more 𝘣𝘪𝘵𝘤𝘰𝘪𝘯. If your answer is fiat, then Bitcoin is only a speculative asset for you, and the question of when you should buy or sell is an educated guess at best.

But if your answer is bitcoin, then 𝙬𝙝𝙚𝙣 𝙮𝙤𝙪 𝙨𝙩𝙖𝙧𝙩 𝙨𝙩𝙖𝙘𝙠𝙞𝙣𝙜 𝙙𝙤𝙚𝙨𝙣’𝙩 𝙢𝙖𝙩𝙩𝙚𝙧, 𝙖𝙨 𝙡𝙤𝙣𝙜 𝙖𝙨 𝙮𝙤𝙪 𝙝𝙤𝙙𝙡 𝙖𝙣𝙙 𝙠𝙚𝙚𝙥 𝙨𝙩𝙖𝙘𝙠𝙞𝙣𝙜 𝙢𝙤𝙧𝙚.

I tweeted this (don’t @ me)

But I’m curious to see what the Nostr brains think of this 🧠

What is this thing? Wrong answers only.

Best one gets 10k sats.