#StrategyBTCPurchase High Conviction and Risk Tolerance
What it is: Invest a large amount all at once.
When to do it: If BTC has dipped substantially or you believe it's significantly undervalued.
Historical data: Lump-sum investing often outperforms DCA in bull markets.
5. Event-Driven Strategy โ For More Active Traders
Buy/sell based on market news:
Halving events (next expected ~2028)
ETF approvals
Regulation news
Institutional adoption signals
๐ง Other Considerations
๐ How Much to Invest
General rule: Only invest what you can afford to lose.
BTC is volatileโconsider it part of a diversified portfolio (1โ10% for most people).
๐ Security
Use hardware wallets for long-term storage (e.g., Ledger, Trezor).
Avoid leaving large amounts on exchanges.
๐งพ Taxes
Track all purchases, sales, and transfers.
Crypto is taxed as property in many countries (capital gains apply).
๐ Review and Reassess
Check your strategy quarterly or annually.
Adjust based on changes in income, goals, or market conditions.