Topic: Buy the DIP, and HODL! - page 110. (Read 130094 times)

An emergency fund is money set aside to solve unexpected financial problems and not to be used to solve daily expenses. So, if any investor invests his whole money into bitcoin with the idea that his emergency fund will allow him to hold his bitcoin for a long time, that investor will end up selling his bitcoin to survive even though he is at a loss because his emergency fund cannot take care of his daily expenses for a long time. If anyone wants to get it right with a bitcoin investment, that person should invest what he or she can afford to lose and also keep an emergency fund, a reserve fund, and a float.

Well like you said it something that its history of success and that's a risk me myself and most other investor are willing to take. Buying Bitcoin is something that holds great benefit even though it's a slow process but thats because something that is good is always worth waiting patiently for it.  There are so many people who still doubt the success of Bitcoin especially about the uncertainty of it future but we all know that it holds great future so it's better taking the risk of buying and holding on that Bitcoin in regards and hope that it's past history has already shown us that no matter the ups and downs all fingers are pointing that it will definitely increase in value and worth so stacking up either through DCA method or Lum sum method either way that suits the investor just have the mentality that HODLing of your Bitcoin is the main goal for now.

That's how people who do short-term he will be trapped when buying at high prices and selling when it goes down because of impatience then he prefers to lose rather than hold it, for this kind of strategy will not be smooth what we imagine buying when it goes down and selling when it goes up is not easy actually.

Investing long-term in the end, investors will get a big profit, this is a patience from holding for a long time while continuing their accumulation, try to imagine that we accumulated when the price was $20K until now the profit has been 3x, that's not enough if we hold it longer, it could be a profit above 5x that is obtained.

My assertion in making the comparisons is that the first guy ONLY did a lump sum purchase of bitcoin with $5k and the second guy did the lump sum, yet continued to invest into bitcoin through out the period.

So my assertion is that the first guy purposefully chose to be less aggressive in his investment style than the second guy, and it seems that the first guy was more whimpy in his investment style than the second guy.

Sure, it was not guaranteed that all of the extra money that the second guy put into bitcoin over the next 9 years was going to end up paying off, and it cost him $50 per week to put in that extra money over 9 years, which I was presuming to be fairly easily within the means of either one of them to continue to buy bitcoin, yet the first one chose to limit his investment in bitcoin to the $5k amount.

With bitcoin we see that historically it had been the best of assets to invest in, and right now we are faced with similar kinds of choices, and we cannot know for sure whether our choices to ongoing invest into bitcoin are going to end up paying off.

I totally agree with you. While most shitcoins are relatively low in value, they are highly risky and subject to capital depletion. So Bitcoin can be more consistent in terms of investments/deposits that can be long-term and turn over many cycles and become huge piles. I prefer DCA method because it is a universal method and very easy for every investor. My opinion on Bitcoin holding period is that it should be treated as a fixed asset with real assets. Quantitative value of real asset increases with time but its size remains stable but depositing bitcoins in DCA method increases its value along with its size.

Another advantage of long term accumulation is that it can take your holding to a level that stash more than you think because you continue to buy during dips. It is only a bridge of patiant and mindset that ultimately holding Bitcoin.

For someone that is looking forward to accumulate a lot of bitcoin (maybe 1 BTC) and receiving $5,000 per month can't accumulate 1 BTC within one year, unless he or she is investing his/her whole monthly salary on Bitcoin (which is some how not possible for many folks).
Obviously, DCA method is the best way to accumulate Bitcoin, being paid with $5,000 per month and DCAing $1k or $1,5k per month on your Bitcoin portfolio makes it easier for you to achieve good amount of Bitcoin, but it will take more than 1 year to achieve 1BTC if you are investing with $1,500 per month with the help of DCA method. However I am just trying to say that achieving 1 BTC within some months is probably based on the amount that you are DCAing with, and if you are also DCAing every week it will also help you achieve your portfolio faster than when you are buying monthly.
Yeah I agree with this.
Short term investment is not guaranteed because Bitcoin is always on the fluctuating mode, which means it might not profit the short term or might. Well, long term investment is the advisable for beginner investors, let's use the easiest age of Bitcoin when it was below $100 and now it is @61k dollars and BTC also has more potentials that it is still going to be more valuable in future, and that's makes the long term investment not risky.

DCA is the topic we are discussing here, but then I have to acknowledge your comments when you. Mentioned the rule of the individual motivations and approach to investment being the cardinal of the possibility of a successful ending in such an investment journey, this have triggered some level of discussion over a couple of time and each time I make it clear that personal Experience matters most much more than lessons that you learn from a third-party own experience, and many failed to take note of that, and making it sound and look as if they can actually learn the right lessons from another person experience or mistakes, but knowing the fact that it is best to learn from your own mistakes, so is the DCA journey, no matter the wealth of experience we share here in this thread, and the newbies bitcoin incesmentors don't take action in their own way and limits, there is no way their aclamatise the lessons and fit it into an experience that could lead to a successful long term Bitcoin investment and accumulations using DCA approach to achieve such a a success.
Widely taken to be and mean skills, are the success stories of old Bitcoin investors, some newbies believe because investors A is successful in his Bitcoin investment, whatever Mr A give out as an Bitcoin investment model is taken to mean the right and perfect thing's in DCA to be adopted,  while some of them succeed with that, many other's will fail along the line since the reality of life iss different a d everyone luck differs also.
What works for me A may not likely work for mr B, so there is the need to build all the necessary personal skills and experience that will add our winning at all time.

choosing to use the DCA methord or any other investment method you're comfortable with is totally an investors choice. You don't force anyone to use the DCA methord just because it's what the majority of us are using. If he has a methord that's working well for him,  it's totally okay to stick to it for as long as it's okay with him and if along the line he decides to DCA, it should be his personal resolve. The main point about buying Bitcoin with the DCA method is just to extablish a level playing ground for the different class of investor such that even though you're a new middle class or experience investor, you can easily find a comfortable spot to start regardless of your level of finance.

If by the kind of work one does or you're the type whose funds comes in bulk in a less often frequent timeframe and doing lump sum is what will work well for your case, there is no point trying to DCA just because the majority of people are using such methord.

investing in shitcoin is totally out of the context when you're attempting to use whatever accumilation methord that's convenient for you. It's just best to role out shitcoin from a possible option to be considered regardless of how you want to become flexible with your investment strategy.

Experience is the best teacher no doubt but sometimes you can not possibly learn from other people's experience because you won't know or understand the magnitude of the experience and  I want you to know that every strategy is unique in there own way, DCA method doesn't give investors the mindset of being consistent rather investors disciplined themselves and know what is right to do because there are a lot of investors who uses the DCA method yet they are not consistent with it so that method doesn't give investors the mindset to be consistent. Just like I said earlier any strategy can be good and perfect depending on your capacity, you are sounding like a trader at the end of your post however, you can't incur loss because of change of strategy rather you can become stranded and biased if you don't know how to manage your investment and your income.

What give them pressure is the volatility since they provably would get affected on each movement of the market since what they aim is to hit big gains from their trades. But if there's sudden unexpected situation like big price fall it made them panic since they don't have any plan to hold it for many months since maybe they don't like to be a bag holder that's why usually they think about dumping to cut the losses then buy at more deeper price so they can recover. Common practice happening in trading and that's stressful.

Short term investment is high risk and see a lot of people fall down because they choose the hard path. If they just follow what lots of people did and they are not attracted for short term risky profit for sure those bad situations will not happen to them. They could just learn the best way to deal with bitcoin if they are open for new things on how to improve their self towards choosing the best approach on their investment with bitcoin since they could learn that long term holding and consistent accumulating is always the best for this coin.

I have gone through the question you add above and I would rather be the guy who spent $28,500 and had somewhere between 27 BTC and 34 BTC (with an average cost per BTC between $838 and $1,056). Even though I ended up spending more money than the first guy in acquiring my bitcoin. I also ended up having more bitcoin in my possession which is much more profitable than the first guy. Although both of them are successful with their investments. Each were able to invest according to their financial capabilities.

In this case, of course, many people have different opinions and of course there are many people who like to invest in BTC for the short term, but I see that in this case it depends on the person's skill in analyzing and considering the pros and cons, but of course if they have a lot of knowledge, it will certainly lead to profits because will buy BTC when the price of BTC falls and sell it when the price of BTC rises so of course you will get a profit from short-term investment in BTC.

However, for people who invest in BTC for the short term, for some people it causes panic when the BTC price falls, but for people who are experienced, of course when the BTC price drops, they will not sell their BTC and will not panic because for people who have experienced in BTC already know that BTC always creates new ATH and will not sell its BTC when it makes a loss.

But of course investing in BTC for the long term is the right step because of course it has the potential to get big profits. Yes, for example, people who bought BTC in the past when BTC was cheap and of course now the people who bought BTC in the past have made big profits. So I also agree that investing in BTC for the long term is a good thing as long as our use money to buy BTC using money are ready to lose and have to be prepared for the risk.

There are several complexities in trading compared to investment. Now the difference is that as a trader you are expected to have vase knowledge about Bitcoin before you can make profit and as you said most times your knowledge doesn't help at all and they still lose at some point if not most time. On the other hand if an investor choses to invest instead of trade he only need little knowledge about investment and this does not require and in-depth knowledge of Bitcoin.

Another complexity is in the area of being physically present to monitor the price movement of Bitcoin and this is only involve in trading where at all point a trader needs to track the price of Bitcoin and physically monitor his trade, while in investment once the longevity of the investment is 6 months or decades or whatever horizon we chose we dont always monitor it and we can still be doing other things in life without always being physically present monitoring our investment.

Well said mate, I think it's best to learn from other people experience it is the best teacher, the DCA method of accumulating bitcoin is one of the best method I know of cause it gives an investor the mindset of being consistent in accumulating more bitcoin, so instead of looking for other Strategies that could make one loose their asset in the process it's good to stick to what works best.
 Atleast it's been proven by @JayJuanGee and you, else you guys won't be preaching about it to others here, so @Lidger, instead of experimenting other Strategies you should stick to what works best and have been tested and trusted by other members.

Statement like yours defeat the aim of our discussion here because going by that, people might go in search of their strategy instead of using what works and its being recommended here by people who have actually tested them and have even made some improvements that helped them become more effective. For instance, I was doing something else before joining this discussion and when I joined, I learnt about the DCA method of accumulation from @JayJuanGee who did exceptional job in it. Quickly, I started using it and it was not long that I saw real peace and progress in my Bitcoin investing, for which I'm eternally grateful.

Assuming I followed your type of advice, I would have moved ahead in search of supposed personal strategy and that would have mostly likely landed me into shitcoins where I came from with so much regrets. So, the reason we are here is to exchange ideas that will help us become better in our investing and   to remain adamant about what we believe in even when it is not working fine or giving us much positive result.

Well said mate , most time alot of people have the mindset that some bitcoin accummulation strategy are for particular set of people ( especially DCAing). Most people believe that DCAing are for those that are not too financially stable . Which is wrong because DCAing are for everyone. Because despite being wealthy, still you can't actually predict the price of the market. But with DCAing you will be able to buy at different price interval without trying to predict the market movement, rather just keep accumulating in a fixed time either monthly or weekly.

Investing in Bitcoin for short terms puts the investor in a big pressure, because the investor knows that they aren't going to invest on Bitcoin for long term and all their mindsets is just that Bitcoin should continue to go higher instead of dipping any time soon. However, short term investment isn't the good way to invest in Bitcoin because you aren't going to witness more buying opportunities.
Well, talking about trading, I see that as also a short term investment and it has the highest risks because you might lose your capital within some seconds. But when you invest on Bitcoin for long term you aren't going to lose that much money and even if Bitcoin dips and you lose some money, you only have to give it some days for it to increase again (most times it takes few hours for it to increase again) and you will gain back your money. Meanwhile, on the other hand, the DIPs is also a good opportunity that we all should use to accumulate more Bitcoin into our portfolio for the long term.

Cash flow management is certainly an important part that must be understood as well as possible when investing. Of course sometimes many of them fail to understand as well as possible and perhaps this is the description I have done so far. In the weekly purchases I make I will never miss it and that is an important point in DCA. Secondly, when the market is uncertain or tends to fall during that week, I use my reserve funds to double my purchases at that time. Third, the emergency fund may not be touched if it is not too urgent, which means that as long as we are in a stable financial position, of course we will not use the emergency fund. If this can be understood, it is possible that long-term investment planning can go according to what we planned.

To that extent, I will not measure success or success in the near future because that will make us turn in another direction, meaning we could be lulled by short-term profits and that could make the investment journey messy.

As long as our target has not been achieved, there is no satisfaction to dream of, meaning we will continue to follow up on DCA according to our plan, be it 5 years or 10 years, and if that has been achieved, there will be a sense of satisfaction and success that we carried out long ago.

In essence, success will be in line with our enthusiasm, where if we continue to accumulate bitcoins every week, the opportunity for success in the future will be achieved, in other words, we will be satisfied with what we have done.

On the one hand, stay relaxed when carrying out long-term investments, don't be too selfish because if you are selfish your cash flow will be messy.

I know that with proper knowledge of trading, someone has some chances of making a profit from Bitcoin. However, what I know is that it can't always be profitable, and sometimes even those with proper knowledge also lose money. In fact, if we check some traders claiming to be good, and if we examine the profits they make over a year, many of the profits aren't even more than 10% of their capital. This is because, as they make profits, they also incur losses. In fact, some of them don't even make a profit over the years because they encounter big losses when they least expect them. However, since they continually add more money to their trading accounts, they may not feel much of losing as they due make some like profits sometimes.

To be honest, long-term investment is far better than trading because the risk of investing is less compared to trading. If someone can keep accumulating Bitcoin for, say, 15 years, they could potentially make a very reasonable amount of profit, which many traders may not achieve. Let's just imagine those early investors who kept accumulating Bitcoin over the last 10 or 8 years how much do we think they would have in their wallets by now? 

This above response is correct.


This is a strange way of outlining what may or may not be successful since there are variations of success including the ways that individuals make their choices to tailor what they invest in and how they manage their cashflows in light of their own risk tolerance, so their level of aggressiveness after they had identified a good investment (such as investing in bitcoin, since that is what we are talking about here), there still can be levels of aggressiveness or whimpiness within correct applications in regards to accumulating bitcoin, and outcomes might vary quite a bit, even within variations of correct applications of good practices, even though each person might also be able to claim success within his own parameters of how much and how he was willing to apply similar strategies and to purposefully come to different balances when his financial circumstances might have had been very similar to another person who might have had been more whimpy in his BTC accumulation approach or might have been more aggressive than the person with comparable starting financial circumstances.  

There is also a lot of discretion in regards to cashflow management and determining how much to keep within various backup fund categories, and a lot of the variations could be correct and/or within discretionary but acceptable parameters.

Mere financial success in terms of the outcome of how much money is in the bank (or how many bitcoin in the wallet) might not be exactly an appropriate comparison of which version is more successful if each person might have applied his own BTC accumulation strategy and cashflow management to his best of abilities and his individual factors, but still each could have made various errors along the way too that may or may not have ended up materially affecting the results...

We would have to know more before we might presume certain kinds of financial outcomes would be considered to be more successful than others as long as each of the ones who are buying the bitcoin are tailoring their own balances of good practices to their own circumstances...and success is not even guaranteed, either... even if someone does everything correct, success is not guaranteed, even if they choose bitcoin as their primary investment vehicle or they might even choose certain ways to hedge their bets in ways that are very smart and prudent, but they still are not guaranteed success even if they do everything correctly.

Don't count me as overly pessimistic, since I include myself in the camp that guys increase their chances of success when they plan, prepare and even act in accordance with good practices, and they surely have more likelihood for success as compared with the guy who does not plan, prepare and act in responsible ways.. yet surely there are always going to be exceptions in either direction, yet from my own perspective there are a lot of advantages in planning and acting in accordance with plans, especially when it comes to cashflow management and investing.

By the way, I edited and added a question ("which one would you rather be?") to my above post.