Topic: Buy the DIP, and HODL! - page 12. (Read 128909 times)

I thought the only time someone loses money in Bitcoin is when he sell? If you buy Bitcoin at a certain price and there is  dump like you called it, you have not lost your Bitcoin because the quantity will still remain the same. Loss will happen when you become afraid as a result of the market going down so you decide to sell your Bitcoin. This will then be counted as a mistake because such a time is a opportunity to buy more Bitcoin at lower prices. I just felt I should add this so that we will be clear on what constitute profit and loss in Bitcoin investing.
 
Furthermore, if you are using the DCA method, you will not really bother if price goes down because you are just concerned aniut buying more  Bitcoin at the right time which you have already decided before.

Anyone who has delved into the history of Bitcoin knows how much potential Bitcoin holds for the future. However, people still have some fear of virtual things, so we can't put as much trust in virtual assets as we can in any physical thing. But regret when Bitcoin makes new ATH. Since 2017 we have expected the price of Bitcoin to reach $100k and it will be realized by the end of 2024. But how many bitcoins have we been able to hold since then? That's our mentality. Now we can have full confidence in Bitcoin but Bitcoin is very expensive due to which it is not possible to buy a good amount of Bitcoin even if we want to.

You have to consider that there is a reason for new investors to be afraid and they need to be more knowledgeable about Bitcoin and to be educated, they should conduct themselves through market analysis. I especially recommend that those who are new especially to Bitcoin should start the DCA method and this method can keep them free from investment fear. For example, you can save bitcoin from your discretionary income or floating cash fund and the need for this fund is considered secondary to you (extra floating cash). It may be that you will not have any regrets if you lose this fund or even if you lose it (I am just guessing). By saving Bitcoin, you can ensure the proper implementation of your assets, this is expected. The fear of losing the invested capital can be in any investment, but some critics who are not aware of Bitcoin are spreading propaganda among investors which misleads many potential investors.

Ultimately, it can be said that if you want to get rid of investment fear, then the DCA strategy is the best method because it can be said that by spreading buying at different prices in the portfolio.

You seems to be smarter than others in term of choosing your strategy, but funny enough you are contradicting yourself by combining  lump sum and buying the dip and thinking its DCA . I guess what your are trying to say is that you will not invest all you discretionary income in bitcoin at once which is "Lump sum" but rather invest little and keep some for buying The dip when the need arises.  But your strategy is not different from some people investments strategy. Generally it is impossible to invest all your discretion fund at once. Although Combination of All investments strateg is good which include DCA, lump sum and the dip, but there is a situation to which such investments is done.  Investing bitcoin lump sum does not required you to use all your discretionary income to invest at once.  although a person may use some portion of his discretion to buy bitcoin  lump sum depending on his level of discretion. The most easy investment in lump sum is to use a bonus you get from a work place or any extra income you received from anywhere. Since all money can not be invested at a go which is lump sum.  

Reserved fund is mainly used to buy bitcoin weekly or monthly and can be used to buy bitcoin when it is dip as to recover someone loses along the line when you may have bought bitcoin so hight in DCA.  A person that uses reserved or discretion fund to buy bitcoin lump sum is financially unwise.  

being afraid of investing in something that is as volatile as bitcoin is not even the thing, most especially if you are a newbie that is still yet to understand how bitcoin investment works. the fear should not serve as an hinderance that will withhold you from investing but should rather guide you into investing using the best approach that will protect you.

if you are only looking out for the tendency of something going wrong while you hope to invest in bitcoin then you will never succeed as an investor because risk is part of the deal. it is something that right from that start you have to come to terms with and know that bearish and bullish seasons will come along your investment time but none of them should stop you from continuous holding of your asset until your goal is met.
the ability to overcome fear and still remain invested in what differentiate a real bitcoin investor from the one that is just following trend or looking for some Ponzi scheme that will yield him some returns.

It is natural for a person to be careful with his money. Just because someone is afraid to invest in Bitcoin does not mean that he does not need to invest. You should have been gentle with this statement.

It is natural that someone who is afraid to invest in Bitcoin may not have basic knowledge or any knowledge about Bitcoin. If he knew Bitcoin or had good knowledge about Bitcoin, he would not be afraid to invest in Bitcoin.

If a person is afraid to invest in Bitcoin, then I support his fear. I would advise him to learn about Bitcoin and gain knowledge about the risks of investing in Bitcoin. If you do not know about Bitcoin, then you will express a negative attitude towards Bitcoin, which is completely wrong. Knowing about Bitcoin does not mean that you have to invest. After gaining knowledge about Bitcoin, you will be able to make the right decision. Maybe your fear about Bitcoin investment will be gone and you will enter into investment with awareness.

If fear is the reason why some people are still yet to invest it means bitcoin investment is not for them and they can never invest bitcoin in fears. Let those who have the understanding of bitcoin continues with the opportunity of buying more bitcoin and hodl. Those who are scared of buying bitcoin in due time they will have the understanding and learn from their mistakes. If people are scared of buying bitcoin it means they have no understanding of what bitcoin is and you can't do anything about  it.

Yeah you are very correct I love this point, a lot of people in this forum always try to impose a certain strategy on a newbie forgetting that everyone has there different financial strength, as a newbie all you have to do is to consider the advantage and disadvantage of the every strategy if it will suit our financial strength, if we do this and choose the best that will suit our financial strength we won't have issues later in the future, some set of people that started this journey of Bitcoin investment with me has dropped because they couldn't keep up with the strategy they started with.
I know of someone who is into Bitcoin investment and he is using buying in the dip strategy and he said that was the only strategy he could think of so I introduced all the type of accumulation strategy we have in Bitcoin investment and explained it to him very well and at the end of the day he went with DCA strategy.
Good understanding about all strategy will make someone pick the right one that suits him or her financially.

There's no fear in investing in bitcoin if you use the money you can afford to lose and invest in bitcoin or if you use the money you will not need for 4-10 years or more because it will not stop you from sorting out your daily expenses, which might lead you to sell your bitcoin even though you are at a loss to survive. Bitcoin investment is totally different from other investments; even though you don't have clear knowledge about bitcoin, you can still invest in it and still learn about bitcoin in your accumulation journey. For you not to develop metal fatigue, it will be better if you stick with investing in bitcoin for the long term and change your mindset from investing in shitcoins or altcoins because you will lose your money, and you will also develop mental fatigue. It will be better if you focus more on your learning process rather than trying to teach us in the forum so that you will not get it wrong about bitcoin, which will also help to know how wasteful and stressful it is in putting your money in shitcoins or altcoins.

An investor who started his investment few months ago has nothing to do with selling part or all of his bitcoin, unless the person is just chasing after the few bucks and that's not encouraging at all for someone who has the mindset of long term hold, or call himself an investor. Even if the person starts his accumulation journey again at some point as you are saying, the person will still sell off, if there is also a future little gains, outside of his maturity date. If it happens that few months or one year later and there is another upward trends, the person will also sell and that's not how investor should behave. An investor who started his investment journey few months ago, has no business with selling not even one Satoshi of his bitcoin that has been accumulated. The focus should only be buying and should not be tempted with any little profits seen so far. People who thinks like that, or behaves that way are purely traders and they shouldn't confuse themselves as investors and people should not also refer to them as investors. And I don't think it's a good advice to give to someone in a thread like this, so that we don't confuse newbies who might be vulnerable to such an unhealthy advice.

You’re absolutely right.
Holding back some value for buying the dip may potentially result to missing out on some rare opportunities that occurs in the market when/if the market continues to rise. Additionally, since the market is so unpredictable and we’re not always able to accurately predict its future outcome, Bitcoin investment is like travelling across a frozen lake covered with fog, you never know where the next step might lead you, so you can’t really predict if your next step would crack the ice or not, you might as well not know when exactly it’ll take you to cross to the other side. It’s filled with the unpredictability and that’s exactly why we need to adopt the DCA as this gives us the opportunity to keep our emotions in check, regardless of whatever turn the market may decide to take.
If we decide to wait for DIPs before we can buy, we might end up waiting longer than anticipated, the next DIP might even come after an unending bull run and you end up regretting why you held back in the first place.

But then again, the decision to combine both the DCA with the buying the dip strategy or to just stick with the traditional DCA accumulation strategy is ultimately a discretionary one as it should solely dependent on individual investment goals, market outlook as well as risk tolerance.
Just as you’ve rightly noted, one must first of all weigh and consider the potential benefits and drawbacks of each strategy as this helps us to make a better evaluation of the situation and realize whether or not it suits our personal financial goals before adopting them, not just because we see that someone else has adopted that very strategy and worked pretty well for them.

You are choosing to combine DCA with buying on the dip, and sure there might be some value in that both psychologically and financially, yet it is not guaranteed to be better to be holding back value rather than buying more aggressively with your DCA.. ... yet for sure they are discretionary issues whether you buy everything through regular DCA or you hold back some value for buying on dips.

Your forum registration shows that you came here in October 2023, which was around the beginning of our latest rush upwards, and surely if you had invested as much as you could in October 2023, you would have been better of than DCAing.. yet at the same time, many of us recommend DCA since it tends to be amongst the best of BTC accumulation methods in terms of practicality, especially since a lot of regular people do not tend to have large sums of value that they can lump sum invest into bitcoin, so it tends to be better for them to buy as much BTC as they can soon after their money comes available... or some other variation of DCA that might pace the buys out on a reasonable basis throughout the month as they might resolve some of their expenses and determine how much extra cash that they have available at various points of time throughout each month.

Your mere assertion that you are smarter because you are not following a strict DCA approach is not necessarily true, since it may well end up contributing to your waiting or strategizing your BTC buys based on anticipations of BTC price moves that do not end up playing out.. so for example, you hold back a bunch of value anticipating a dip, and the BTC price does not dip, so either you are left with the fiat, or you are left buying BTC at higher prices or perhaps you just become disgruntled and trying to double down to prove yourself smarter than everyone else, when you would have had been better off just to keep up your regular and ongoing buying of BTC persistently, consistently and perhaps even aggressively.


It sounds like you are arguing against yourself, and I stick to my original position that using the term risk is problematic, and you even pointed out that the bitcoin investor can figure out position size in order to mitigate risk.


Sure, if you have figured out some kind of a balance that works out for you in terms of the amount of cash that you hold back, just in case, then that is for you to determine.

At the same time, it may not be a great idea to hold back investing in bitcoin, so surely you must decide your own comfort level and live with the consequences in regards to whatever ends up happening in regards to how much bitcoin you are buying regularly versus how much dollars (or whatever your fiat might be) you might be holding back for the purpose of buying dips.


If you are still accumulating then you should not be selling, but hey whatever, you can do what you like.  If you are forced to sell regularly, then that likely means that you bought too much and also that you are trading (gambling) versus investing (at least with that portion of your holdings), and sure I don't see any problem if you at least limit the amount of trading/gambling that you are doing and keep your eyes on the prize which is bitcoin.

Yea that's it, as long as you are actually buying for long term purpose, it's a major plus, because we are still in the early days of Bitcoin, and due to it huge and promising potential, It can go as high as a million dollar in the future, so buying it now that it's still cheap regardless of it current price is actually ideal because you are only looking at the bigger picture of it, the value it might get up to on the longer run.
So while buying Bitcoin through the DCA accumulating strategy, consistency is very much of a key, so as to increase the stash of Bitcoin in your possession, because the stash of Bitcoin you have determine how profitable and how successful you might eventually be in building a generational wealth.

The dca strategy is very much simpler than how are you presenting it since it requires buying at different intervals either weekly or monthly it naturally mitigates the impact of market volatility because you must have bought in different price points and because you are still holding your coins without selling you don't have to start counting losses since the intention is to buy and hold for as long as necessary possibly 4 to 10 years or more.

Apart from mental readiness, one must have some spare cash in hand that can help in buying Bitcoin if it falls back. After spending few years in bitcoin I am ready for all sort of ups and down. My trust in bitcoin is that it will go up in the long run.


Weak hands are called weak for a reason. Trust me if they sell at 100k and bitcoin goes down by 10 or 20% these weak hearted people won't have the courage to buy Bitcoin at that dip. It's seen that whenever bitcoin goes up, new comers join in to book there profit while when market goes down they start saying Bitcoin is going to zero.
I have a plan with me which I have taken from here regarding bitcoin accumulation. I have to sell little of my holdings with time to meet my expenses but my major focus is still on accumlation.

Bitcoin is risky, no one is certain what will happen in the future if it will keep growing or not so investing and not investing in Bitcoin are risky, when you don't invest now and later on in the future Bitcoin grew to a million you will regret not investing and if you invest now and later on in the future Bitcoin start dropping in price and value you will regret investing in it.
Now among this two which is more risky?
The most risky one is not investing, the reason why I said so is because the money you use to accumulate Bitcoin is actually your Discretionary income and your Discretionary income is the portion of your income that can be spent on non-essential items, such as wants, rather than necessities like food, clothing, mortgage, electric bill, water etc. Which means you could use your Discretionary income for fun for example going to parties just like some people do but you decide to invest part of that discretionary income on accumulating Bitcoin which may help you grow financially in the future.
Part of that money you are taking out week or monthly from your Discretionary income to accumulate Bitcoin is something that won't affect you financially so is less risky than not using it to accumulate Bitcoin.

The easiest way to invest is to start with the DCA method. I will not invest the entire amount of money from the money I have to invest, but I will keep some money for myself so that if the invested coin dumps after investing, I can use the money to recover the loss through the DCA method. Those who are smart always invest through the DCA method. And those who invest in a new situation often suffer from big losses due to not understanding the DCA method.

Surely Being skeptical to FOMO and refusing to buy back  is a major problem to most people and of course it's not only newbies but to some old investors. I believe the fear of uncertainty that results of selling to quickly (FUD) is base on ignorant and  not having a prerequisites knowledge about bitcoin. Sometimes self doubt and procrastination on when best to buy bitcoin is a problem  that stagnates an investor with such mindset. Most times I see such people as gulibles. And they too many but believe me whether gullible or no gullible people bitcoin will do better but we have to change our mindset and follow the right part and avoid being part of the gullible people.

Anyone who want to do better in his or her bitcoin investment should invest without considering the best time to buy bitcoin because there is no perfect time to buy bitcoin.

Investing relates to action rather than just thinking about it... so come up with a plan and execute... The execution does not need to be bold, but it can be $10 per week and then work your way up to larger amounts, and so we see so many folks through the years who fail/refuse to execute and they end up being too busy trying to figure out their entry point and other kinds of irrelevant matters related to price and/or whether they are in profits in the beginning.  They could spend 2-3 years or longer buying bitcoin and not be in profits, ye there is still something valuable in regards to action and buying bitcoin ongoingly, persistently, consistently and perhaps even somewhat aggressively once they have their back up cash systems in place and they get more used to their ongoing buying of bitcoin, whether it is weekly or otherwise..


It sounds problematic to be describing bitcoin as taking risk, when you are likely taking way more risk if you are not investing into bitcoin.  Sure you have to learn things in bitcoin, and sure you have to figure out how to take action, including finding out how to source your coins and also figuring out how much of your discretionary income you are going to use to buy bitcoin on a weekly basis or whatever might be your investing timeline.

I doubt if fear is what is holding people back and from my little survey from the people around me, I think one major reason a lot of people are not investing is because of lack of investment capital, regardless of the presence of DCA method, a lot of people don’t still have the privilege to invest because you’ll agree with me that, some people bear survive and survive from hand to mouth and it will be very difficult for such a person to invest and I also had a thread about this same issue that, knowledge without money in the cryptocurrency industry is a waste because it ends up making one lose a lot of opportunities.

I believe there is always hope in the industry and for all those who can hold, please do as there is always a smile at the end of it as it is always worth it and for all those who can DCA, please also do without looking back.
Regardless of whatever you want, always invest what you can afford to lose .