In my last post, I wrote that I am hesitant to buy BTC at market price now that it has surpassed the $20,000 all time high. Something bothers me about paying market price now that it has broken that barrier. Part of me wants a bargain to avoid feeling like I am buying at market price out of FOMO. However, at the amounts that I am buying, does it really matter?
One of the things I have learned about investing is that you can't afford to be small. I don't mean you should bet it all. For example, a 10% gain on $1 is hardly worth your time. Getting the same return on $10 is not much better. On $1000, the same return buys you a nice dinner. On $10K, things start to get interesting. Therefore, the larger your investment, the more the swings start to matter. On smaller amounts, the same swing hardly impacts you one way or the other, win or lose.
My dollar cost averaging contribution is $150. A 10% swing on that is $15. I spend more than that on beer occasionally. If I were buying $15,000 every paycheck, I can see that I would be better off not paying market price. But, for the amounts I am contributing, not so much.
Perhaps I have been thinking too much with the math and not enough with the practical side of investing. Mathematically, I should absolutely set my price. However, given the amounts I am investing, it may not be worth the attention that it requires. Dollar cost averaging is meant to remove this worry and have you on your merry way. Perhaps I missed the point of DCA.
What do you think? Do you agree that the amount of my buys isn't worth the amount of mind I am giving it?