Recently reviewing my BTC investment insights, I want to share some often overlooked points.

You’ve probably heard countless times that "dollar-cost averaging changes destiny," but not many truly understand why it works.

Let me start with a phenomenon: why do dollar-cost averagers usually experience smaller losses than those who chase highs and sell lows? It may seem counterintuitive.

The reasons are actually quite simple. First, bear markets tend to last longer than bull markets. This is a fundamental market law, no need to argue. Second, what is the most painful moment in real life? When you urgently need money. Coincidentally, during times of high living pressure and difficulty earning outside, the market often declines. If you are forced to sell at this time, the loss becomes inevitable.

There’s also a more subtle psychological factor: when prices rise, you simply don’t want to sell. Especially long-term holders, seeing their assets appreciate, tend to have decreased consumption desires. Conversely, during declines, it’s easier to be forced to sell. That’s how the biggest losses happen.

So that old advice is actually very core: only invest with idle funds.

Here, "idle funds" is not literal. It must be money that has no opportunity cost and no time pressure. Ideally, it should accompany you through at least two complete bull and bear cycles. At the same time, it should have enough emergency reserves to handle unexpected life events.

This is the fundamental reason why dollar-cost averagers have a smaller γ value compared to others. Investing with funds that have costs will increase γ. Using funds with a deadline? That’s even worse; γ will expand infinitely, and the longer the time, the more terrifying the impact. Without proper emergency preparedness, it gets even worse—γ becomes not only large but also uncontrollable.