Topic: Buy the DIP, and HODL! - page 114. (Read 130157 times)

No body will invest all his salary in Bitcoin it is not done anywhere except the person is insane, the money will invest in Bitcoin is our Discretionary income and what is Discretionary income is the amount of money left for an individual to spend or use after sorting out his or her personal needs, so let's get this right and you can as well use your Discretionary income to build your backup funds along side your Bitcoin and if you are done building your backup funds you can focus on your Bitcoin accumulation and even become aggressive if you no it won't affect you.

One don't need to have enough money before he can go into Bitcoin investment, if you are receiving a little salary a full month and you wish to invest in Bitcoin you can, if after your monthly expenses you are lift with a Discretionary income.

Yes it won't change your life within weeks or only a few months, but if you have spare cash then you have the choice between bunkering it under your pillow or comparing assets that you would like to potentially hold because you think they will increase in value. The thing is that you can own satoshis in bitcoin, but you can't really own a tiny fraction of real estate. I think there are some possibilities out there, but nothing grants you as much self control as bitcoin does. It is a young innovative technology and it is far more inclusive and accessible than gold is. It still seems that a lot of people are hesitant because they only want to buy tangible things that they can touch, but ever since the world went digital I think it is high time to go with the times. To not own bitcoin is probably a bigger mistake than owning at least some and learn that it was the wrong decision to buy it if it goes down in value forever. But when you see what the younger generations are willing to spend money, then it is far more likely that a digital currency will thrive. They buy gloves and swords in World of Warcraft and spend a fortune on ring tones for their mobiles. They buy digital flowers and send it to their girlfriends and most of the time the value of these digital items is zero and yet they buy it.

And last but not least the risk of bitcoin crashing to zero isn't any higher than big banks crashing to zero. I am not saying all of them, but the financial system is very fragile whereas bitcoin has proven to be remarkably robust. The interest in the bitcoin network being healthy forever is genuine, the interest of bankers for their banks to be healthy only refers to whatever terms they serve the bank. Whenever the chance comes, they will take the gamble and put tax payers and customers at risk.

The DCA method is good for those that have the interest to have good amount of Bitcoin as investment which they can use DCA method to accumulate some amount of Bitcoin. Those who really want to get some bitcoin don't wait for the dip but buy bitcoin constantly with the amount they can afford. Buying bitcoin when the price goes dip is also good and it will be an opportunity for those who use DCA method to accumulate some amount of Bitcoin. For those who only have interest to buy bitcoin during the dip they may not stand a chance of accumulating good bitcoin because you can't really tell when the dip will take place, it can be time wasting waiting for the dip to take place to buy bitcoin. But as for those that accumulate bitcoin at all market price will benefit having bitcoin even before the dip occurs.

Bitcoin savings does not require you to do more than what you can afford in a weekly, quarterly or monthly basis. If you can still have $100 weekly after spending for all your needs for that week been it basics or no basic needs and still have some reverse funds left for emergency, then putting all the remaining $100 into your bitcoin savings is a good idea. The savings should be done in such a way that when something happens, your bitcoin savings should be your last option to touch from that’s why even after all necessary things have been catered for the week, you still need to have emergency savings in case of emergency that always come unexpected or unannounced.


Other factors can also contribute to the rise of bitcoin in terms of little circulations in the future. Even though new people come into bitcoin, don’t forget that they’re some bitcoins in some wallets stack away and no access to them forever, those bitcoins can never get into circulation again which will also contribute more to the scarcity and affect the price of bitcoin by that time. People will sell after every bull season, but those sells cannot be compared to those that will be holding for many years to come.

Could you share with us how you managed to overcome it? at least we could learn from your practical experience and be informed of yet another strategy of overcoming limited cash flow in DCA bitcoin accumulation, if I am right that is what this thread is about, learning to be a good investor and more knowledge can still be grabbed by reading about how others managed to solve their financial constraints in DCA bitcoin accumulation. We grow by learning from others.

This is not only about new people joining, even old people who relentlessly continue their bitcoin accumulation journey without stop. The more bitcoin is bought and adopted by more people and also retained by current investors, the better chances of price increment. Current investors are still encouraged to keep expanding their bitcoin portfolio periodically with DCA because the more bitcoin is bought and hodl, the greater opportunity of the law of demand and supply would have its way in it and create more demand than supply and the price will keep increasing which would in turn continue appreciating the value of the bitcoin we are currently holding and better securing our financial future, so bitcoin accumulation is a collective effort of both old and new investors because our relentless purchases has a lot positive effect in bitcoin price appreciation.

If you are investing in bitcoin, then make sure you have emergency funds. Don’t invest everything you have in bitcoin, in case there is an emergency, that’s what you're going to fall back on. But if all your investment is in bitcoin, whenever you are in need of money, you will have to sell some of it, even if you have it in mind to hold for the long term, and you might even be selling at loss.
 
If you don’t have enough income yet and you know if you try to invest, it’s really going to affect you, then just forget about investment for that time and make sure you focus on other important things in life. Whenever you are balanced, then investment can set in.

As far as I'm concerned there's only one coin and that's BTC, the rest(tokens and likes )are craps, nothing else than bullshit especially when it comes to using the word Shitcoin, there were some tokens that tried to use the POW system just like BTC (won't  mention so as not to go offtopic) some couldn't meet up while some  failed  ....
Besides, it worth knowing that DCA strategy could enclosed other strategies in itself .. depending on what you see as lumpsum, someone's lumpsum could be a DCA plan for another person.

Yes, JJG, maybe that will be a wise understanding for us in managing everything to be more appropriate in investing in the long term. Of course, what I can take from your explanation is of course the accuracy of the pattern that we think is set as well as possible with the capital we have in buying Bitcoin.

On the one hand, I really like to learn from the experiences of early people who got into Bitcoin, so I give the example of those who have large capital and your answer is quite good. Even though it has nothing to do with us, on the one hand we want to learn and not make mistakes.

Yes, besides, we are still new because I haven't reached 2 years of regularly buying bitcoin. Yes it is a challenge for me to continue doing it with regular purchases every week. Cash flow can sometimes be a problem but so far I've managed to overcome it and not miss an opportunity to continue accumulating.

I remember that the supply of bitcoin is limited and if new people join in long term investment of course they will buy and hold it so that circulation will become increasingly scarce and the price of bitcoin will rise very significantly. That's just my imagination and hope it happens in the decades to come.

Actually, when investing in bitcoin, you have to consider many things, and some of the things to consider include your income and your personal needs because these two things can affect your bitcoin investment easily. Because if your income is low and you are trying to squeeze yourself just to invest without taking care of your own personal needs, an emergency can come that you will end up using breaking your bitcoin investment to solve, and in this case you might sell those investments in lost.
 
So when am I talking about personal needs? I don’t mean luxury things and other expensive life; all I mean is that those basic needs have to be solved before investing so that your investment can be saved and held for the adequate time frame needed. 

Actually investment is supposed to be done in a manner that it won't affect any aspect of our lives. Be it social, recreational and leisure aspects. Since our investment is for the long term I don't think we should neglect any aspect of our lives, because how long are you going to manage and suffer yourself for the fact that you are doing investment? It is always advisable to invest the you can in the sense that it won't ruin your other sides of life. That you are doing investment does not mean you should eat substandard food, wear inferior clothes, or leave in deteriorated house.

As you are investing make sure you are living good, eating good and healthy food, buy and wear good clothes and shoes, wrist watches if you can afford it. Bitcoin investment is structured in a way it accommodates all level of investors according to the financial capacity. Invest as little as you can afford, but don't deprive yourself the good things of life in the name of investment. You need to be alive and healthy to reap the benefits of investments in the future. If you deprive yourself the essentials of life and die along the line, someone else that didn't hustle the money with you, will be the one to spend that money you are investing recklessly in your absence.

Yes it's true that investing 100$ in one or two month won't take you to good financial status in future, but since we are investing for the long term and not short term, I think it's fine. Just imagine investing same amount consistently weekly or monthly for more than 10 years. Haven't you heard this saying before that " A little drop of water makes a big ocean".

Everyone here is taking my examples as the only scenarios to save money, while my point was just to give idea about how to save money. If you are going out very often for dinning then you might consider cutting one or two dine out to save money for Bitcoin or you may opt for non-branded pants if they are good in quality. These are few scenarios for people who are struggling to save money for Bitcoin and they are not the only one, everyone has different spending patterns and can plan cuttings accordingly. If there is no scenario for saving money then one can proceed with his normal life  till the time he has something to invest.
This is also great idea to invest less during the time you have less cash and can go bullish when you have extra cash to accumulate good quantity of Bitcoins.   

There are actually more than two investment strategies some of which are Lump sum investment, DCA, Buying the dips etc. DCA is actually different from buying the dip, unlike the dip DCA is done at certain intervals which doesn’t have to be when the price is low, it frees you from the stress of having to monitor the market, it doesn’t control the buying price it just allows you to invests the little amount you can afford. DCA is actually an effective strategy used by a lot of investors nowadays but doesn’t mean other strategies are not effective.

There are some certain needs that shouldn't be cut off on somebody's life because of how Important it is and in terms of going out to get some things such as wristwatch or taking the family out for some fun shouldn't be seen as mismanagement of money or leaving a luxurious life because those things are normal and very important for families, so I'm of the opinion that instead of you to be investing $100 weekly while you deprive your family from some important basic needs you can actually cut your weekly accumulation amounts abit, let's say instead of $100 weekly you can bring it down to either $40 or $50 on a weekly and you will see that by cutting it will not prevent you from the amount you wish to achieve in the future.

We have to come out of our comfort zone to get something big. I don't have enough cash to go for Lump-Sum investment so I prefer to go with 100$ per week (i.e. DCA method). If that money is available to me easily per week then it's fine otherwise I have to look for cuts to manage my investment. Don't think that investing 100$ in one or two month will take you to good financial status in future.
Do enjoy life but managing capital for investment must also be one of top priority for good future otherwise you will end up in loss. To me financial cuts mean, cutting down spending's on outdoor food (that is good for your health too), luxury items like branded clothes, wrist watches etc. There are spending's in our lives which we all can easily cut down without putting too much stress on our life styles.   

If you have been following up on this thread you would have known that some measures were discussed on that regards in other to keep our investment always running, so I don't think is nice telling or suggesting to an investor to cut down the rate at which they normally have there dinner, is a wrong approach, however instead of suggesting those ideas I think what you should really focus on is the best way to go about it rather than skipping dinners, however it has been advised for everybody who wants to emback on Bitcoin investment to always considered emergency funds and reserve funds very important because I'm certain that if someone has adopt those measures there is no way they would have been considering skipping some dinners in other to raise money and invest on Bitcoin.

Strategy and planning is very paramount on Bitcoin investment because it educate you to understand some certain fact and also the importance to have a timetable and the needs to abide by it, having said all this things I think I would strongly disagree with you concerning your understanding about DCA strategy, actually DCA strategy does not force you to hold your investment but on the contrary your determination, desire, planning and passion is what makes you to hold your investment, so DCA work is just to help and make your investment smoothly and reaching to your desire points.

This is a very valid point, The focus should be on the general principles and considerations for investing in Bitcoin, regardless of the size of individual capital.

Investors with large capitals have the luxury of many options for investing in Bitcoin, but still need to decide how to allocate his capital,
All investors regardless of the size of their capital needs to manage their cash flow and expenses,

 

What we are talking about in this thread is Bitcoin investment and how we can be able to accumulate Bitcoin either using any of your prefer strategy it can be the DCA strategy, lump sum strategy or buying at the dip strategy to accumulate while I prefer the DCA strategy which all you to accumulate Bitcoin at different price level either weekly or monthly and not some kind of vague term like Crypto which can actually mislead some newbies here believing that shitcoins are same to Bitcoin because you never specificed it for Bitcoin is Bitcoin and shitcoin is shitcoins and stop mixing them up and stop referring Bitcoin to shitcoins.

Well, in my own perspective, the DCA method is the best way to build your investment portfolio, because you only investment base on what you can afford and as long as you have a weekly or monthly income coming in, you have no worries, just invest only what you can do without, then you are definitely good to go, because where the major problem mostly arise is that most investors mostly invest more than they can afford, they invest more and when in serious financial needs, they tend to deep their hands into their investment without thinking how bad it is for their holdings, but in other to be successful while doing it, the best way is to invest only what you can afford to do away without and also try to have an emergency funds kept aside for the rainy days, so that you won't have to fall back to your investment when you are in serious financial mess.

Why do we need to bring up a person with large capital to potentially confuse matters. 

A main difference with a person with large capital, such as the amount that you are suggesting is that he likely has more options because he is starting out with large capital that he might be able to invest in bitcoin, in the event that he has decided to allocate such capital (or part of such capital) to bitcoin.

If the person with large capital has not yet figured out bitcoin, then he is in a similar situation as any no coiner in terms of considering whether and how to invest in bitcoin once he figures out that he wants to buy bitcoin and once he figures out how much he wants to allocate, then he can figure between his various options in regards to how to get in. 

If the guy with $10 million in capital does not want to liquidate or reallocate any of his capital toward bitcoin, then he may well be faced with figuring out how to deal with his cashflow and expenses, which are similar kinds of issues that others have, yet the fact that you ar mentioning his high level of capital causes me to consider that you believe that he has the ability to allocate into bitcoin with some or all of that capital.


There are folks getting into bitcoin all time, and they are doing it in various kinds of ways, yet at the same time, there are a lot of folks, even folks with a lot of capital and a lot of income who still are either not convinced about bitcoin or they might believe they might believe they are too late.

Sure, more and more rich folks are finding out about bitcoin, and considering it as an investment option, yet we still have a pretty level of adoption, even amongst rich people.


Sure, you may well be presuming that since they might be able to do a lump sum, that they would do a lump sum investment style to get in, and that is not necessarily going to be the case.  Some rich folks try to be careful about creating taxable events, so if they have to sell another asset in order to get into bitcoin, they might prefer to DCA into whatever they are adding rather than doing lump sum, yet surely they have to figure out their own reallocation and perhaps how much they might have in cash versus in assets that might create taxable events if they sell and reallocate into bitcoin.


Rich people are faced with the same dilemma as everyone else when they are new to an investment like bitcoin, and even if they have an opportutnity to completely invest right away with lump summing, they might choose to allocate some of that for buying on dips and/or DCAing, even if they might be DCAing with thousands or tens of thousands per week rather than lower amounts.

They also be a bit less price sensitive, and they might spread their DCAs out to be monthly or quarterly, yet they could potentially front load with a buy like buying $1million within a week or two...and then considering their DCA'ing and/or buying on dips from there.  They might execute their own trades or they might give instructions regarding how to get their price exposure, maybe even ONLY recently learning about bitcoin from a Registered Investment Advisor (RIA) in terms of bitcoin coming available within their investment accounts (presumptively through some of the spot ETFs that are only recently getting added into some of the accounts that some rich folks might have.

There is one thing that I want you to understand in bitcoin: no matter what when you are investing, that doesn’t mean that you will have nothing to you for your personal self, or that means you should not enjoy yourself. No, even though we all know that we need profit in bitcoin and we want the investment, we still have to invest the money that we can afford losing. That is the point, and if you restrict yourself from having all that you are already using just for the sake of investment, then what do you think will happen if someone happens to your investment? Even though we know that bitcoin is the number one trusted and reliable cryptocurrency to invest in without panicking about anything, that doesn’t mean you will always have a profit. Time will come that you will also lose, even though it is not much, but sometimes it tends to be much. 
 
All I want you to understand is that when I invest in bitcoin, you should always know that you don’t have to break yourself or your bank to achieve that because you will end up selling to fix other problems, and from there, that has affected your investment for a long time, so let us know what we are doing in the crypto space. 
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First we are not talking about crypto and shitcoins in this thread, so if you were talking about investing into bitcoin, then it probably would be better for you to use the word bitcoin so we know what you are referring to.

Second, your points are fair in regards to guys making sure that they pace themselves in their investment into bitcoin, and anticipate ups and downs in the BTC price and the potential that their holdings might not be in profits in the first 4 years, and perhaps even longer than that or at various points after going through the first whole cycle of accumulating bitcoin.

i think that many guys participating in this thread are already presuming at least a 4 year investment horizon, and many are considering 4-10 years or longer, yet sure, even a long term investment horizon does not guarantee that the BTC holdings will be in profits, so guys have to make sure that they are investing an amount that they can afford to lose in regards to the possibility that the BTC holdings could go to zero, but also .. surely many of us consider bitcoin to be amongst the best if not the best place to be putting value, yet, we still have to invest within our discretionary income and have various back up funds and even attempting to make our cashflow management strong so that we do not have to sell bitcoin at a time that is anything other than our own choosing.


I had not been suggesting that anyone would be locked into any exact plan without any discretion, yet even though a newbie might want to lock himself into a strict and scheduled DCA plan for a specific amount of time, so then he might not end up having extra funds for buying extra during any dip that he might perceive.

On the other hand, depending on the newbie's financial status, it might not take very long for him to front load his BTC investment in such a way that he starts to feel that he has the luxury to hold some funds on the side for buying on dips.

I think that many of us in this thread appreciate that buying on dips is usually not a coming out of the gate strategy for accumulating BTC unless you have already bought some BTC or if you happen to come into BTC while the BTC price is falling (or not stable) yet an overwhelming majority of the time, no newbie (or even experienced) bitcoiner is going to have hardly any clue in regards to whether the bitcoin price is dipping or not or going to dip, so most times, the newbie is going to be better off by buying some bitcoin first, before even considering employing a buying on the dip strategy.

I think that many of us know that a no coiner or even low coiner should not be employing waiting strategies when it comes to first getting started in bitcoin, but once he bought some bitcoin (whether front loaded or not), he is going to have more luxuries to consider supplementing whatever had been his initial accumulation approach with buying the dip strategies.

Another thing is that guys, newbies, nocoiners can do whatever they like, even if they do dumb things like starting out their bitcoin investment journey by considering that they need to wait for a good entrance point, and personally, I consider that to be a dumb approach, even though each of us is free to do what we like, including dumb things.  We are ultimately responsible for our own investment choices (including our choices to employ waiting as a BTC investment strategy), and also experiencing regrets, if we had happened to be sitting on a decent amount of extra cash last August/September/October and the BTC prices was bouncing in the $25ks to $27ks and we were waiting for more dip into the lower $20ks rather than using some of our extra cash to buy BTC at that time.. those are our own choices regarding how to employ our extra cash when we have it and if we believe that we are sufficiently prepared for UP while we are hoping for (or assigning high weights to our expectation for) more down..

 👍

I'm not saying that you're wrong or that one investment strategy is better than the other. I was merely stating a point that if given an opportunity to purchase Bitcoin with a discount, big or small, they should always take it to get more units in Bitcoin than if they have purchased it without the discount. If the main strategy is a scheduled-DCA, sometimes it might be better to break the schedule to take advantage of the discount.