Dollar Cost Avareging is a great way to enter a long position. Looking at graves emotional cycle the best time to enter is at the bottom during the anger and despair periods. It is not possible to time the bottom so a good strategy is to "buy the dips" or otherwise DCA through the despair. The goal is to buy the bottom half of the cycle, not perfectly time the bottom. What that looks like is making purchases when the price is dropping because everybody is saying the project is dead.
This means you must have conviction or belief in the long-term of the project (does it have a strong team, and active community? Have the fundamentals changed, is development still ongoing, etc). If you believe the price is low because of the market (not because of the project) then you are buying the low of the cycle. If you do not believe in the project why would you buy or even hold? If you are holding or buying something you do not believe in you are no longer an investor, you are a speculative gambler.
Now with that said, if you buy when something is on a rip because you believe you are just catching it as it takes off and the thing is going all the way to the moon, but then sell when everybody is saying it is dead and you lost all belief, you are not an investor, you are not a trader, you arent even a gambler. You are simply emotionally risking your money and might as well donate it as ultimately you are feeding into what these cycles are designed to do...to get you to buy the top and sell the bottom. We all make mistakes and nobody gets in perfect every time, but having a plan and executing it, is far different than "oh its taking off I knew it had the best features, I am lucky to get in before it keeps going higher"
I hope my article helped you to make best investment decisions. And in my opinion DCA is the safest way to enter in the market during bear cycles. What do you think?
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