Topic: Buy the DIP, and HODL! (Read 75326 times)

That is the truth of this system, there is no way you can win the raise by combining your investment with your emergency fund because money has it spirit and human want is insatiable as problem keep rising you won't know when you have exceeded the limit of touching the main investment fund , which is very unwise for any investor to practice. Like I always argue over my last post no body run a raise looking back can win the raise with good results if you invested for long term holding through the DCA strategy and you keep on monitoring the market and withdrawing your profit before the time, based on the facts is your entitlement and your investment as well, it really show that your not ready to keep to the investment rules which will help you at the end because all the profit you withdraw is still meant to have some impact of increasing your accumulation, for those who are good in maths you believe me that if you invested $200k for 4years and you leave it without touching the profit the yearly profit will also add up to you capital to increase the investment for the next year which authentically increase the subsequent year profit. The best in all us to free any thing that will leads to touching your investment weather profit or not to mature it accumulate to the actual year of investment.

Proper planning must have been put in place because Long term investment is not something to jump into without adequate preparation or planing, I see why people always focus the profit gain in there investment before the actual time of maturity is as a result of lack of preparation and planning which don't work well in this kind of investment, like my people always said that rabbit of one hole is easily killed by hunter, it means your investment won't survive the heat since your not prepared because your meant to zero your mind in anything withdrawal and use other means of income as those things is already in place before venturing into long term investment.

you know that the uncertainty regarding the gravity of emergency situation that might arise during the time we are still holding our Bitcoin is one major factor that might affect some people's budget on which amount should be kept out for emergency situation and that mentality that keeping up to 4 to 6 months of your earning as emergency funds is too much could sometimes put you in a situation where you would want to reduce the allocated amount for your emergency fund thereby exposing your Bitcoin holding to a possible touch in times of real emergency. real life emergency situations like health challenges and impromptu events doesn't really come with little demands and so  it's damn necessary we allocate a good amount of funds into our emergency funds wish will in turn serve as a sure shield that will protect our holding from being tampered with when the real shit plays out

You've forefited the purpose of having an emergency funds the moment your holding starts doing the job of your emergency funds and that's going to only end up stagnating your portfolio and if you consistently take out a part of your holding to solve a supposed emergency that you should have earlier made adequate plans for, you will likely spend years and years accumulating your BTC but will never be able to stack up a good chunk of it. Part of what might help our BTC holdings is to treat it as an independent asset that's outside our control  and by doing so, our plans and expense doesn't in any way brings it to the equation as a possible option to be considered when looking at a means to getting funds to sort out real life shit should there be a challenge that's more heavier than our emergency funds. And the truth is that if you've decided nothing goes out of your BTC holding untill you're able to stack up to certain amount and you're serious about it, even when a supposed emergency comes up to tempt you to touching your holdings, there will always be an alternative option that you have to take outside of your BTC holding and so I feel there is a lot that your mindset and mentality plays towards your holding.

This is a weird way of talking about an emergency fund, and sure you may well be including the idea of emergency fund with the idea of reserve funds and cash floats, yet one of the things about an emergency fund, it is generally not a part of something that you take from your income as a percentage, because once you have established it, you don't need to keep adding to it... .. so yeah, whatever you are doing might be working for you, but it might not be workable if a true emergency were to come, then usually you would need 3-6 months of income/expenses within such a fund in order to be able to get through the emergency situation (such as loss of cashflow and/or some high expenses that had not been anticipated). 

I surely don't have any problem with the idea of replenishing your emergency fund, even though emergency funds should almost never be used absent a true emergency, so usually you would be using your float and/or your reserves prior to even needing to dip into your emergency fund.

By the way, the management and maintenance of emergency funds, reserves, and floats tend to be way more important for poor people even though it likely is difficult for poor people to establish such funds and such good personal financial management practices.  Rich people may well have a variety of investments and they can actually use one of them for their emergency funds, and also if someone is at or near fuck you status, then they can actually use their investments as emergency funds, since maybe they are already able to draw from their investment at a monthly rate, so they are able to draw an extra 3-6 months from their investment without much of any problem, presuming entry-level fuck you status could be anywhere between 12-25 years of income already in your investment (and with BTC I am valuing the BTC holdings at the 200-WMA rather than at BTC spot price).


If you been in bitcoin since your forum registration date of August 2016, then surely it is possible that you have accumulated enough BTC, yet to me, you sound like you are looking at bitcoin like a trader, and you are ultimately likely to be ending up selling too many BTC too soon, because you do not recognize and appreciate that long term investing and building wealth takes time, and when you get there, you are likely able to recognize an ability to start to make withdrawals... but yeah, if you are fucking around and trying to figure out when to sell in order to buy back cheaper, then you are playing a different game, and you are likely going to have fun staying poor because you are selling too many BTC too soon instead of having a plan that ultimately results in being able to either engage in sustainable withdrawal practices or raking practices. Raking practices can usually be started quite a bit before sustainable withdrawal practices, but guys can come to differing conclusions in regards to employing such practices.


Sure.. so what.. there are people who overinvest, and they don't know how to treat bitcoin like a long term investment rather than worrying about playing the price waves.  Those are temptations that each of us have to overcome in terms of putting practices into place in which we make sure that we have long term accumulation plans that don't necessarily involve selling until after we might have already created a decently sized BTC stash.


It is not understandable to use part of your BTC as your emergency fund, unless you have already reached near or close to your fuck you status... but yeah, people use a lot of things for their emergency fund when they have not established a good practice in regards to their emergency fund, their reserves and their float... which should be part of any sound investment in which you want to choose which assets to sell instead of being forced into selling your BTC at a time that is not completely of your own choosing.


We are not talking about trading in this thread.  Don't let the "buy the dip" throw you off.

The trader who want to make profit should try to buy the bitcoin at the low price in the market.Because the market will not the stable one,based on the demand the price of the bitcoin will increase and decrease.The dump in the price will help the trader to make huge profit in the trading by buying at the low prices compared to the price at the bull run or pump in the price of the bitcoin.The trader should understand the process need of time,the panic buying or selling will not help the traders to make the big profits.Their was huge difference between making the profit or making the huge profit from the same trading.

The trader should allow the market to react for his trading,because trading at the hurry or panic will leads to a loss in the trading.The early investor of the bitcoin are making the money in the bitcoin now.Because the price of the bitcoin had crossed the 70k mark in the recent days,but many of us know we wait huge time for the price of bitcoin to reach the 10k dollars.The trader should analysis of market for atleast one month before investing the money in the bitcoin.

I'd say that I am one of those fortunate folks that have been holding til' then and got them before. I'm not bothered but it's always interesting to look at that point of view of each and everyone of us here about the pricing of Bitcoin.

And with what I have observed, every time there's a dip and flash crash. You'd see people asking if the price will remain at that low dipped price but they don't analyze that it's a normal scenario whether we're in bulls or bears.

Agree.

Those that hold for different situations and don't panic during flash crashes, those that have diamond hands as they say will always make the profit and advantage of holding Bitcoin.

I don't think it's wise to even compromise as a well mature investor, our emergency funds should not be use to invest in bitcoin cause that is actually the insure that we don't sell of our bitcoin holdings, but yeah I can acknowledge that at times we might get into situations that we might want to invest with our emergency funds maybe due to lack of funds but its not worth it unless we are very sure that we can replace that money in no time.


Your quoting the wrong person, correct your quote.

Most individuals are just in for short-term profit only by trading with their bitcoin and stuff which ain't encouraging, such people are just wastiht some valuable resources , due to the aim of wanting short-term profit. And most time they usually forget the risk in it . Like fot instance whenever a longer-term investor experience any dip in market, instead of being in the state of panicky he or she will to it as their advantage to purchase more. While a short-term holder will quickly sell to avoid dips, with the mindset of cutting losses . And you can't compare the profit of  those that are holding a better or huge  quantities in their portfolio to those that normally trade with their Bitcoin .

Taken your investment as your emergency funds, shows that one ain't ready to hodl for long . Because in order to secure a better Bitcoin investment one should have some discretion funds, that he or she won't need for long time, to hodl Bitcoin.


Exactly, you on track mate . But don't forget even those that have enough, selling all your holding ain't still a smart move but rather taken some profit would be pretty good ( for those that have enough Bitcoin stashed ).

Edited: thanks Troytech for bringing it to my notice ( concerning the quote).

Then I think we should separate those mindset from each other, anyone that is thinking in terms of wanting to buy low and sell high is a trader and doesn't value bitcoin or understand bitcoin or even investment, there should be a process to everything and not just any news that pops up and you are in a state of panic to see of your holdings or even worse watching to know when to sell, and mind you no one is saying that selling is a bad thing but the issue is that selling too early is not the best approach to bitcoin cause you are inevitably missing out on the best part which is to own Bitcoin.

The other mindset here is those that are thinking in terms of accumulating bitcoin and not been bothered about the price of bitcoin, if you are still so early in bitcoin you should be less bothered about the price or news surrounding bitcoin and focus more on buying bitcoin, cause at the end of the day its only those that have enough bitcoin that can really make profits from selling bitcoin.

This shouldn't have to do with those that are still early or a low coiner in their accumulation journey except those who already far gone or probably in their maintenance level else it will be considered that they are using the money that is meant for their personal needs to invest in Bitcoin. However, irrespective of the fact that our emergency funds will varies from one individual to another based on financial situation and personal expenses, the Idea of the emergency funds is to set aside 3 to 6 months worths of our expenses such that  selling part of your investment when you still early in your accumulation journey can be very bad and retarding because it will be senseless to be selling part of your Bitcoin investment in order to meet up your emergency when you are supposed to be making buying your hubby and possibly being aggressive without over doing it in order for you to have a sizeable worth of Bitcoin.




This attributes doesn't and shouldn't be applied by those in their early stage of accumulation or a low coiner, there is no certainty of whether the market is going to be bearish or bullish after the halving and how much of it's extension perhaps past events doesn't give a guarantee of the future don't forget it is Bitcoin we are talking about, a low coiner shouldn't be on standby to look at the the direction of the market after the halving to see if it will be bearish or bullish before making their next move and that doesn't seem to be normal it is abnormal, maximizing every opportunities that shows it's self in the market in other to have a sizeable worth of Bitcoin should be there priority. The Idea should be to keep buying and making other arrangements for ups and downs that may or may not happen which is better than being on standby before making the next move. While those that are already in their maintenance level can be on standby because they may not be necessarily buying all the time.

Yes agree with with this. Lack of planning cam cause a lot of things on the Bitcoin journey, when an investor doesn't a good planning towards his investment, the pressure of investment will make him feel depressed because he's not well set for the investment. An unexpected expenses is also called emergency expenses, and if you are not having a good money on the savings account it means you are not ready to achieve big on the long term investment because any emergency can happen that will need money before it can be resolved, so if one do not have a quality amount of money the person can't hold Bitcoin long.
IMO investment without emergency funds is not advisable because there might be no reward in it, emergency funds can help build your Bitcoin investment higher because to me, its just like a back up asset that can help an investor achieve the amount of Bitcoin he/she wants if they keep on accumulate. Saving funds from 1 to 3, and 3 to 6 months. Rebuilding an emergency funds is very important when it concerns investment Bitcoin investment plans. Let's maintain $1000 for emergency funds, if you spend half of it based on excessive emergencies, rebuilding it might take 3 months again but it's based on how much you earn monthly.
Anyone who's interested in Bitcoin and has already learned about Bitcoin investment should know that he/she can not go further without having an emergency funds, and it won't be better if an investor takes bitcoin investment to be an emergency funds.

I think the Basic principles and first knowledge when it comes to investing in Bitcoin is that the person must have a reliable source of income and to note that Saving of Bitcoin isn't something that needs to temper with always that's if you are not the short term trader's that tempers with their coins always because as a true investor setting out boundaries and principle that will help you evade unnecessary  or sometimes needed expenses. If the  funds are well set up then urgency to temper with your holdings wouldn't be a problem at all

It is their mindset you cannot stop an investor from thinking the way he wants to, because in investing you must look at the pros and cons before making your investment, so speculation is also part of the market because people can choice to believe the immediate information they are having at a certain time because you cannot just throw away rumours, so what you do as an investor is you try to pick vital information. as we speak at the moment some investors are on standby to look at the direction of the market after the halving to see if it will bearish or bullish for them to make their next move, and that is very normal.

The pursuit of uncleared news is becoming excess and it can easily lead to higher expectations. What I meant by higher expectations is just different way everyone view bitcoin investment so I can't view same price as my friend or colleague but the moment I get convinced with their expectation or news I might get carried away but what if this expectation never happen, I might feel emotional and angry as well. From my perspective everyone should stay away from social news concerning bitcoin it's best we watch, observe and learn more to avoid false narrative. Taking out profit is a stage in bitcoin investment when an investor has reached he/her target

The part you made mentioned of emergency funds seems complicated to my understanding, I have never seen any situation when an emergency fund including bitcoin investment is use to settle needs or emergency case. It's obvious when there's no emergency funds an investor will go for their bitcoin investment that's why it's advisable for an investor to plan including emergency funds. I think in such situation that consume emergency funds and bitcoin investment the investor just started their journey saving emergency funds. Personally no investor should start their bitcoin journey without an emergency funds along side to support cause when starting at an early stage the emergency fund will definitely be enough to settle every need, this are expensive mistakes that can affect an investment journey.

Your investment shouldn't be use for an emergency funds because that's not it purpose, however just like in everything we do there most be proper planning which will guide you as you are progressing and helps you to identify the possible unforseen circumstances that could possibly arise in the future or along the line and from there you could possibly see the reason why it is important to have an emergency funds that could be suitable enough to prevent you from tampering with your Bitcoin investment.

However an investors who consider his investment as an alternative to withdraw some funds in other to take care of needs is not actually consider as a good investor because is obvious that the investment may likely failed along the line, so actually if your emergency is not suitable enough you could as well re strategize your accumulation pattern to fit in your capability instead of putting everything and later you start selling off your Bitcoin investment for other needs.

There is no doubt that Bitcoin's popularity is increasing with time. If we consider the popularity of Bitcoin 5 years ago, after 5 years in the present time, the popularity of Bitcoin has increased a lot. Again, when the popularity of Bitcoin is compared to the current time after five years from the present time, it will be seen that the popularity of Bitcoin has increased much more after five years from the present time. The popularity of Bitcoin and the increase in the value of Bitcoin mean nothing to us if we don't have the investment. Let's say bitcoin touched 100k dollar but still we have no investment from this time till it touch 100k dollar but we have no benefit from this price increase. But we have to plan in advance how to get our profit from the investment. We need to invest as much as we can hold and plan to hold that investment for a long time. In case there is no extra pressure to invest, we can invest as we wish. If we can invest in Bitcoin now and wait for the future and hold our Bitcoins, we will definitely have the chance to profit from Bitcoin price changes.

I believe another unique situation is that the U.S. economy could crash - a situation like 2008 that prompted Satoshi to start building Bitcoin - and cause a contagion, taking almost everything down with it. Will it take Bitcoin down with it? I believe yes. But we HODLers know what it truly is - Another Golden Opportunity to buy the DIP and add more units of Bitcoin in out wallets.

Plus don't let the billionaires front-run you, YOU front-run the billionaires.

That is not ideal, and I will say that is lack of planning on how much should be assigned to your emergency funds, and how much you are to use to invest. If both the emergency funds and investment funds are not balanced, for instance you are investing with an amount more than you are suppose to use to invest, and careless about your emergency funds. It means that such investors will fail in their bitcoin accumulation journey, because they don't take their emergency funds as their priority, to enable invest in a long term without touching their investment.

Any investor that sees his bitcoin investment as his emergency funds, is only gambling and is not ready to invest and grow his bitcoin investment to reach his bitcoin target, because he lacks the knowledge of how important emergency funds is when you are investing in bitcoin. This is why JJG as always say that an investor emergency funds should be at least 3-6 months, so that whatever emergency funds that arise in future, it will be taken care of without selling any of your bitcoin. If your emergency funds have reduced due to some emergency that occurred to make you spend half or more than half of your emergency funds, you are to rebuild it back again to a certain level.

Any investor that does not make available his emergency funds and is investing in bitcoin will collapse his investment or that thinks his bitcoin investment can serve as his emergency funds will end up selling all his bitcoin. Which means that investor have been wasting his time. The purpose of investing in bitcoin using DCA method is to continue building regularly nonstop, but using your bitcoin as an emergency means that you are scaterring what you are building for the future, which means there might be no future for you with bitcoin.

But unfortunately, not many Bitcoin investors can determine when they will take their profits. Many of them cannot wait patiently for the price of Bitcoin to increase very high. Most of them are still consumed by the issues raised by unclear news.

They will panic and make decisions without thinking twice. They cannot find more information about the situation that is happening so that they make instant decisions. For those who can still be patient, they can see when they can sell their Bitcoin and take the profit.

For emergency funds, it is best to separate it from investing in Bitcoin so that it does not interfere with our investment plans. But there are also investors who use some of their Bitcoin to meet their emergency needs because their emergency funds cannot cover them. This is understandable because we often experience emergency needs that we must fulfill immediately.

You have made some valid points. Investing for the long term requires commitment, focus, and not quick gains. Lots of beginners do not understand this which is why when there are market fluctuations they do not know how to manage emotions which is a very crucial part of long-term trading. Another necessary thing you forget to mention is having a stable source of income. Dipping into investment for short term needs isn't ideal for a long term investor, and the reason for doing such is because he refused to prioritize having an emergency fund before starting investing.

I came up with a solution that has helped me have a secured investment to stay for long since i started investing and it has not only helped me in my investment but i have been able to understand the importance of having a budget and a separate savings plan for the sake of unexpected expenses which in any way i wont think about tapping into my investment or stay stranded.

First thing i did was to download budgeting apps that helps me plan a financial foundation for log term. During the investment process i acknowledge unexpected expenses that i have no choice than to dip into my emergency funds but i immediately rebuild it as soon as possible so that my investment wont be next. Although i allocate a particular 20% of my income into the emergency fund and also include money that was giving to me like a bonus or friends and family.

Wether they take quick profits or not Bitcoin still remains, it's all by choice and how we view from our perspective, each investor knows what's suitable and good for him because the needed funds used to invest was raised by him, despite all these happening, we only just advise investors to purchase/ keep on purchasing Bitcoin, restrain from selling and continue to hold for the long run in order to maximize the profits and store this wealth for a longer time.

Emergency funds are compulsory units in the process of accumulating Bitcoin that should not be neglected, life is full of unforseen circumstances that may come either at the appropriate time when funds is surplus or not, during this point in time a persons emergency funds will step in to resolve that issue instead of altering one's investment portfolio just to solve the need.