Buying Strategy: DCA vs Lump Sum
Dollar-Cost Averaging (DCA)
What: Buy fixed amount regularly (e.g., $100/week)
Pros:
- Reduces timing risk
- Smooth entry over time
- Easier psychologically
- Builds discipline
Best for: Most people, long-term holders
Lump Sum
What: Buy all at once with available capital
Pros:
- Maximum time in market
- Historically performs better
- Lower total fees
- Simple execution
Best for: High conviction, can handle volatility
Pragmatist Approach:
Start with lump sum for initial position (10-20% of target), then DCA the rest monthly. Best of both worlds.
Portfolio Allocation: How Much Bitcoin?
| Risk Profile |
Bitcoin % |
Rationale |
| Conservative |
1-5% |
Small insurance position, low volatility tolerance |
| Moderate |
5-15% |
Balanced exposure, most pragmatists |
| Aggressive |
15-25% |
High conviction, can handle swings |
| Maximum |
25-50%+ |
Deep understanding, long time horizon, high risk tolerance |
⚠️ Never invest more than you can afford to lose. Bitcoin is volatile—50% drawdowns happen. Only allocate capital you won't need for 4+ years.
Fee Optimization Strategies
On-Chain Fees
- Time your transactions: Weekends & nights (UTC) = lower fees
- Use mempool.space: Check congestion before sending
- Batch payments: Combine multiple sends into one transaction
- Use SegWit/Native SegWit: 30-40% cheaper than legacy addresses
- Don't overpay: Use "low priority" for non-urgent sends (saves 50-80%)
Exchange Fees
- Use limit orders: Lower fees than market orders (0.1% vs 0.5%)
- Compare exchanges: Strike/Swan cheaper than Coinbase
- Withdraw strategically: Accumulate before withdrawal to spread fixed fee
- Lightning withdrawals: Near-zero cost if supported
DCA Fee Strategy
- Monthly > Weekly: Fewer transactions = lower total fees
- Accumulate on exchange: Withdraw every 3-6 months to minimize withdrawal fees
- Fee threshold: Only withdraw when amount makes fee % negligible (<1%)
Interactive: Master the Fee Market
Understand how Bitcoin's fee market really works. See how miners prioritize transactions, practice fee estimation for different scenarios, and learn to save money by timing your transactions strategically!
Launch Mempool Visualizer →
Practice realistic scenarios: coffee payment, urgent withdrawal, cold storage move. Master fee strategy!
📉 Managing Volatility
Expect 50-80% drawdowns. They happen every cycle. If you can't stomach seeing your balance drop 50%, you're overallocated.
Mental Frameworks:
- Think in BTC, not USD: 1 BTC = 1 BTC. Price is noise.
- Zoom out: Look at 4-year cycles, not daily price
- Cost basis matters: Track your average buy price
- Never sell at a loss: Unless thesis breaks (very rare)
- Crashes = sales: Have cash ready to buy dips
Action Plan for Crashes:
- Close price-tracking apps
- Review your original thesis
- Buy more if conviction remains
- Do NOT panic sell
- Remember: volatility creates opportunity
Strategy Action Checklist