Topic: Buy the DIP, and HODL! (Read 75695 times)

As a bitcoin investor that you want to be ,you really need to take your investment strategy serious if you really want to grow and make it in life, giving an excuse in investing for long-term shows sign of unseriousness in your investment, an emergency fund is always needed in buying more and accumulating your bitcoin,and so you can't do without it . Setting aside of emergency fund is a major key to accumulate for over 10 years to 15 years or more if you want to go into long-term. Emergency fund is like your backup/back bone for smooth investment journey. If situation warrant you touching your emergency fund you should quickly replace it if you are sure of replacement,but if you are not sure it is better you use 1% of your emergency fund to solve your pressing need until when you will replace it so that it will not affect you.

The percentage of fund an individual can allocate to Bitcoin is really immaterial and if we want to work out a number for such, it will amount to a futile exercise. Individual responsibilities differs and there are no two person that have the same needs and the same responsibilities.

@JayJuanGee have helped a lot in explaining the important things to do as regard buying and holding Bitcoin. Such as using the DCA method while also making provisions for emergency funds. If we follow this process, every individual can easily work out what percentage of his funds to put into Bitcoin. How aggressive an investor should be depends on many other factors which I think should be topic for another day so we don't make it appear like competition.

But indeed such a thing is ultimately not worth saying as an investor if it is still using bitcoin or the portopolio that we have to be used as a trade because as you say it is gambling not as an investment so it is not worth someone like that to be said to be an investor because we must remember the initial benchmark that investors should take longer than that because there is at least a period of several years or maybe even decades (because there are still many people who are in bitcoin from the beginning of the creation of bitcoin until now which has been more than 1 decade) it can only be said to be an investor.

It is difficult to maintain and maximize emergency funds or reserve funds especially for those in the low economic class but in the end it also depends on readiness because there is no compulsion to be in bitcoin so that when they want to be in bitcoin then indirectly inevitably they must be prepared with risks including managing finances properly where they must be ready with reserve funds that can be needed at any time needed.

Another thing might be that Mr A and Mr B responsibilities are not the same, and Mr B have a high responsibility than Mr A which will make Mr B not to be able to invest 25% because that is more than his discretionary income. Another reason that is that Mr A might have a strong faith in bitcoin a d chose to buy aggressively using DCA method because he feels that this is the best opportunity for him to invest aggressively and increase his bitcoin faster. On the other hand Mr B might not have not have strong believe in bitcoin just like Mr A, and decided to invest only 10% of his income using DCA until he builds his believe and knowledge on bitcoin, he might decide to increase his amount.

Lastly, Mr B might feel reluctant that he does not need to invest much in bitcoin and invest in a wimpy way, when he can buy aggressively like Mr A, because he is rich and feels that he have enough fiat to save him in future from getting broke, which is under probability. This is why when you are investing using DCA method, the amount of money that we use should be based on our discretionary income, and also DCA aggressively when you are opportune to do so.

Yes every system has it ways of favouring people as long as the rules or guidelines is properly obed by the investor, for any one to strive well in the DCA strategy of holding BTC one should have at first seek knowledge of putting all this inconsideration mostly the area of emergency fund, there is nothing that is not achievable if planing is in place, the poor can still strive or survive with a good planning I see many who withdraw their fund it sell the BTC not just as a result of emergency but lack of planing and having short sight to what the Future hold while some may be as a result of FOMO and lacking required information.

Some time many don't do things base on knowledge they have gather from a right source but as a result of  what they hard and most time this could be unverifiable facts, what you have strong information leads to deep conviction, just in day of this MMM I hard a friend in school that sip garri while he hard over hundreds of thousands invested on it because he knows the income to the investment, there is no challenges that can leads him within the time frame to pull out any amount out there until the expected date base on the condition attached to it as well the benefits is to gain at the end also. conclusively you take more seriousness on what you have greater knowledge in value than what your knowledge is limited.

Those are mere hypothetical to explain the mental situation of two different persons with equal needs and every other necessities in place. Mr A feels comfortable and okay with an aggressive 25% allocation to bitcoin and that doesn't seem to bother him or give him a sence of over allocation to bitcoin whereas Mr B feels okay with his 10% whimpy investment despite knowing he could allocate more to bitcoin.

I made this hypothetical to picture that there is a risk or possibility that your investment in bitcoin might not do well or even go to zero and both persons knows and recognize this fact, this brings us to a point that everyone should invest money he won't miss cause its also possible for your investment not to do well, Mr B might before conscious of this and decides to have more cash than investing in bitcoin and Mr A choses otherwise.

You made a very good and interesting point but I want to point out one aspect of your statement that does not quite sit well with me. That is the aspect of using "risk tolerance" as a factor for investment. In the example you gave, it should not be ability to bear risk that should determine what percentage each of them will allocate to Bitcoin, rather it should be dependent on their individual needs. Using risk appetite as basis for determining the amount to allocate to Bitcoin might seem like Bitcoin is all about risk, a way of amplifying the risk of Bitcoin. So, needs is a better factor to consider and for this case, Mr A might have needs that requires up to 50% of his income while Mr B might have needs that requires just 30% of his income. Under these two scenarios, Mr B will have more leverage to allocate higher amount into Bitcoin than Mr A.

Meanwhile, when I said needs, I am referring to basic needs and any other thing of importance that cannot wait. These are the factors that can force an investor to sell his Bitcoin. Besides these needs, the other major consideration should be emergency funds which covers unforeseen circumstances.

Everyone needs to tailor his investment accordingly to his financial status and also the amount that would be comfort with, two persons might be earning equal amount and having equal financial stability but would be comfortable with different allocation, Mr A might be okay with an aggressive 25% weekly and Mr B might be okay with 10% weekly despite been at same level with Mr A and this might be due to each of them having different risk tolerance relating to investing in bitcoin or having all their value in only one asset.

I believe that when It comes to investing, been comfortable and having a balance matters more cause that is the only way you can ensure that you won't screw yourself up in trying to meet up or compete with others or end up in a state where you feel over allocated. Everyone has an obligation to figure out what is best for himself according to each of their cashflow and risk tolerance relating to bitcoin and how much they feel they can give out to accumulating bitcoin. And yeah someone who had a more whimpy investing might not be as rich as someone who was more aggressive when their investment matures, so it's left for everyone to find that balance been aggressive and comfortable and not being whimpy in your investment.

that's just the thing, bro. At the end of the day, you've got to do what works best for you depending on the peculiarity of your financial state and situation.

Once you try to go above your limit, you're indirectly shooting yourself on the foot because investing with an amount that's above your financial level will put you in a  position where your best bet is to take out some of your holding when your reserve funds isnt able to meet up your needs. I think we should appreciate the fact that the concept of buying with the use of the DCA methord and the idea of setting out a good emergency funds is not so you can just split your money into different places without really making use of it. It's basically strategies that will help you tailor down your investment plan in line with your current situation.

To be really practical, the amount Mr A will choose as his weekly DCA money isn't going to be same with what Mr B will decid to use. Depending on the individual financial levels, what you consider as your emergency funds could be the gross accumilation of another person at the end of the year and if you don't want to take notice of those kind of disparity, you wouldn't appreciate the amount you're DCAing with and as long as you try to do anything that puts you at a big discomfort, you're heading to a possible situation where tou might end up tampering with your holding due to your inability to tailoring your plan to your own self.

This discussion has been treated more than ones here, so I believe every investors or a beginner should be able to understand the concept that keeps their investment healthy and running however I believe this is one of the reasons why at @JayJuanGee introduce the method and the reason why an investor should have an emergency funds and also a reserve funds was actually because of a situation like this so that with a proper utilization of it an investors could hardly run into a problem no matter how it may be, however just like you said is not an investment wise to put in everything you have on investment because with the lack emergency funds or reserve funds their is a big chance of getting into trouble on the process.

To me, I think the essence of all this which I think is best, is don't do more than yourself, invest with what you can do away with for a very long period of time, that's why the DCA accumulating strategy is the best because you will be accumulating Bitcoin through the DCA method either weekly or monthly according to your financial strength, and as long as you have a source of income to be funding the DCA accumulating strategy either weekly or monthly you wouldn't be compelled in tempering with your investment just because of some financial needs.

But if you are doing more than yourself, by investing more money, and part of the money that would have cover up for your well-being, at some point, when having a serious financial needs, and your emergency funds are not enough, you will be force to temper with your investment, before you know it, that will be the beginning of the end for that investment, because that will be how you will be eating it bit by bit till it runs out, so it's very important to invest according to your level or I say it like don't do more than yourself, just cut your coat according to your size when DCAing , then you are good to go.

It somehow put you on huge risk if you invest all your money on it since you might really be affected so bad once you see a correction happened in the market which could lead to bad decision you take. So much better only to spend the extra amount you have and try to work on it to make your balance grow.

We  don't set our investment for short term so aspiring investor should not look at current value and their gains so they would never think about putting all they have or risk all. For sure if they are consistent on their accumulation  they will be rewarded as they can see when they count all their funds gathered for long years of acquiring this will be huge plus imagine on what will be the figures to show up on that time knowing that maybe there will be a lots of demand will come up especially as we know that number of bitcoin is limited in circulation.

Savings for emergency funds has been discussed for so many times so maybe they should do back read since for sure that there's a lot of learnings they can get from peoples opinion in this thread.

When it comes to bitcoin investment, we should not invest all of our money in it so that we will always be able to solve our financial needs when they arise. We all know that not all investors are financially okay with buying the bitcoin dip, and if they are concerned about buying the dip, they might temper their emergency funds to buy the dip because their income source can't cover their expenses. And when an emergency happens, they will depend on their bitcoin investment to solve it. It is not easy to hold bitcoin for the long term, so we need to adopt a strategy that will allow us to accumulate bitcoin without struggling to solve our daily problems. This is why it is good to accumulate bitcoin with the DCA strategy because you will make provisions for an emergency fund that will allow you to take care of your unforeseen problems and also accumulate bitcoin even when it is in a dip.

Of course, it is hard to build and maintain an emergency fund, reserves and a float, so if you cannot do that, then you are using your BTC investment as a form of trading and/or gambling rather than investing, since for poor people it is more important to build and maintain an emergency fund, reserves and float asince they are going to need those kinds of funds in order to avoid dipping into their bitcoin investment.. and if you don't do it, then your bitcoin investment will likely never build because you will keep dipping into it, and it will never end up building up to much of anything to actually make any BIG difference in your life.


Why are we talking about rich and poor? Yeah it is true that both need to have those extra funds, but a rich person may have a variety of investments to choose from, so it seems to me that the point that I was attempting to make was about the greater necessity for the poor to develop better financial practices in order to build and create excess funds even if you are not sure what you are calling them and perhaps they are even inadequate, but they are better than nothing, yet in the mean time you have to figure out your own balance, and even though I am saying a minimum of 3 months for your emergency fund, you can do what you like, even if you might be engaging in emergency fund numbers that I might conclude to be inadequate.. but you are the best judge of your own situation and hopefully it all ends up working out for you if you are intending to build a bitcoin investment.. and you are wanting to give it priority, so if you screw any of the things up, then you are going to be the one that has to live with those screw ups whether that is under-alllocating into bitcoin or under-allocating or over-allocating into an emergency fund..


The only thing that I was saying about a a rich person was that if he already reached fuck you status, then he may well already be drawing upon his bitcoin investment (or other investments that he has), so if he might have to draw 3-6 months rather than just 1 month, that may likely not really affect him very much, since he may well already have extra... so when we are talking about rich, there are levels, and someone who is not quite to fuck you status, may seem rich to a poor person, but he could damage his investment into BTC a lot if he is not managing his balancing of his cash and including his maintenance of various emergency funds..

Hmm, fascinating! Are you saying it is difficult for poor people to maintain emergency funds or have one? If so then, I agree with you because building emergency funds can be very tough especially when one is living paycheck to paycheck. The constant pressure of meeting life's basic needs makes it difficult for people with low finances to maintain their emergency funds and prioritize savings.

However, having even a small safety net can make a big difference for the rich or poor. No one is above unexpected situations that can happen to anyone. This is because even someone rich might face a medical emergency or a sudden job loss that may cost him a shortage of cash. Emergency funds should be prioritized by everyone regardless of the level of income or wealthiness. Unless you would say being rich may be a little less stressful to come up with an emergency funds because they could run to rich friends who would assist them so in that case they wont bother to tamper their investment or emergency funds completely. What do you think?

Your expression really seems short term to me and portrays someone just buying cause of the bull run to take advantage of the trend which is not bad cause anyone can do what they want but its not the most appropriate approach to investing in bitcoin which should be long term and considered accumulating bitcoin for up to 4 years or longer to have a very good stash in bitcoin before thinking of selling bitcoin.

Timing the market is not advisable cause you can get lost and forget that the most Important thing is to actually buy and miss out on buying.
I won't try to tell you when best to buy but I think that everytime is a good time to buy bitcoin and not only when price is low, and that is why we advice to use the DCA strategy cause with that you are always buying bitcoin when price is low and high, the beauty of using DCA is that you worry less about volatility in the market and you don't have to time when best to buy cause you woudl always be buying.

Every low coiner has no business timing the market when it comes to long term plan, but rather utilize every buying opportunities, with your dca strategy you can buy irrespective of the market conditions, whether at low price or high price because you are buying with a fixed amount of money on different intervals, weekly or monthly, because at that stage your concern will be how you can be able to accumulate a reasonable amount of Bitcoin hence, timing the market wouldn't be necessary, rather you make plans as regards to maximizing your buying opportunities to whatever market conditions that will show it self.



Talking about buying and waiting for a bull run describes more of a trading strategy for short term profits than investing, a long term investor are consistent in buying and they don't buy to wait for a bull run but they keep buying even at the bull run in oder to have a reasonable and meaningful amount of Bitcoin as regards to there investment goals and objectives.


The reason why it is always advisable to only invest the amount you can afford to lose, so that you will not panic when things goes against your expectations, only invest the amount that you can be comfortable with.

Indeed he sounded like an investor whose intentions are for trading because I see no connection between long term holding and the possible way of taking profit, though I may not know his own definition of holding but in terms of his statement above he is obviously mistaken holding for trading, however your explanation to him is very clear and understandable so the early he takes another turn on his Bitcoin method of investment the better for him because it is believed that so many investors have shattered their investment do to a possible way they feel they can navigate into getting a quicker profits.

Investors who are targeting buying on dips certainly already have a budget of funds that they have saved from the initial investment planning that they implemented. Indeed, sometimes many people miss the moment to buy dips because they don't have the budget at that time. But if they routinely accumulate bitcoin every week I think it is more appropriate than implementing a buy on dips plan that targets a 50% decline.

In fact, the need for a budget for living needs of course doesn't bother anyone in the investments they make. because we have to go back to the initial planning where if we are able to budget 10% of our salary for Bitcoin investment, of course we will no longer be stressed for the needs of daily life. 10% is quite reasonable for invested funds, even many of them budget 15% for their investment budget.

Bitcoin investment, you have to mention it in detail so that it can be understood by many people. If you are a beginner, you must practice DCA in bitcoin investment. You don't need to worry about the price because DCA doesn't look at the price when you accumulate Bitcoin. learn slowly and invest normally without any pressure on your budget.

DCA is the best, everyone likes it because our target is long-term investment, so DCA is the most reliable strategy.

when you apply the DCA method or concept in your Bitcoin investment, you will definitely put the money you have into several parts, so the DCA concept is the most recommended for their who decide to invest in Bitcoin with a certain time interval.  Remember that only fools do not set aside their money to meet their daily needs but buy investment assets.

the beauty of the DCA concept is that you have set aside your money every month with the same amount without you needing to sell back to meet your needs, your monthly income example is $100 then you determine to set aside $30 every month for buying bitcoin every month in a few years or certain time interval.