The biggest mistake in dollar-cost averaging Bitcoin, 90% of people are making
Many people think that dollar-cost averaging is very simple:
Set a period
Fixed buying
Then wait for the price to rise
But the reality is —
Very few people actually make money in the long run.
Because most people make three fatal mistakes when executing dollar-cost averaging:
Mistake One: Stopping dollar-cost averaging because of a decline
The most common behavior when the market drops:
Pause buying
Wait for a lower price
Watch and wait
But this goes against the essence of dollar-cost averaging.
The purpose of dollar-cost averaging is to enforce discipline for you in times of panic.
Stopping dollar-cost averaging
Is equivalent to giving up the strategy.
Mistake Two: Trying to predict the market
Many people say:
Wait until the drop stabilizes before buying
Wait for confirmation of a reversal before entering
But the market will not provide clear answers
The advantage of long-term investors has never been prediction
But rather: disciplined execution
Mistake Three: A more easily overlooked, yet the most fatal underlying principle:
Cash flow.
You can have faith, but you must have cash flow.
Dollar-cost averaging without cash flow is essentially betting your life; if unexpected events (medical, unemployment, emergency expenses) occur at home or to yourself,
You will be forced to sell your coins.
And the phrase "forced to sell" almost always happens at:
The worst price, at the most panic-stricken time
So my principles are:
1. Always leave enough cash flow for living expenses
2. Then talk about dollar-cost averaging, then talk about long-term holding
3. The money for dollar-cost averaging must be "money that won't affect your life even if it goes to zero"
I don't need perfect entry points
What I need is:
The ability to not be forced to exit in any market condition
So, even if Bitcoin drops to 100 dollars
My strategy will not change
Because I am buying long-term consensus
Not short-term fluctuations
As the period extends
The emotional impact will gradually disappear
Discipline begins to generate compound interest
This is the advantage of long-term capital!
Ps: Just now $ETH was acting up, guys made hundreds of thousands in ten minutes from the grid, it was too damn awesome
