52 sats \ 3 replies \ @freetx 13 May \ parent \ on: Basic fundamentals about DCA with bitcoin bitcoin
Another useful strategy (once you built up a decent stack) is to maintain a Fiat-BTC balanced portfolio (say 95% BTC and 5% Cash).
Monthly re-balance the position. So if BTC goes up, that means selling some to keep the 95-5 in balance. The maxi in us hates the concept, but its what the pros do.
The real long term benefit of this is you will buy all dips. You just need to think of the cash portion as "future dip buying material" to quell the maxi in you.
I would prefer a balancing strategy that monthly rebalances between Bitcoin and other real assets, like stocks or commodities.
You'll probably have to use fiat as an intermediary in the rebalancing process, but I don't see why you'd want to maintain a specific position in fiat.