Topic: Buy the DIP, and HODL! - page 12. (Read 79835 times)

The common problem with most investors is that they put too much attention on the short-term rather than the long-term.
Setting your gaze on the long-term and having a disciplined investment often helps to ride out market fluctuations because the fluctuations only affects the short-term investors.
Having a longer timeline also leads to a much stronger position in the long run.
Most investors believe there's a best time to buy, but fail to understand that everytime is considered a best time, because even if one buys at a market top and then HODL over a longer period of time, it can help to average out the cost as well as increasing one's chances of profitability.

Through regular BUYING and HODLing for 4 years or more,  one can take advantage of the DCA strategy and reduce the impact of the short-term fluctuations. It's also very important to reassess ones strategy overtime as this usually helps to make necessary adjustments in one's approach and to make more informed decisions about one's investments.

Although, Investing in Bitcoin, just like every other investments is associated with lots of risk and do not guarantee success but at least, it'll be safer to know that a well thought out approach, patience, self discipline and persistence can help one to increase their chances of achieving one's long-term goals.

You're right that even with same strategy, people can still end up buying at different prices, leading to different costs per BTC purchased by each person. However the main point worth noting here is that, though timing the market isn't always the best approach but time in the market could actually still be a very notable factor in determining overall success.

Just as you've also pointed out, it's always better to focus and evaluate one's progress and make all the necessary adjustments in areas that's required, rather than comparing oneself to another person because it could actually turn out to be inexpedient and futile. Rather than comparing oneself to others, one could try making comparisons to their own previous positions as this could actually help to assess one's growth and also make all the necessary changes and adjustments for future growth.

Sure it is good to have a longer time line, and that was part of the reason that I outlined the examples to show that the longer that we invest, even if we might start out at a market top, we still might well end up still putting ourselves into a good position.. even though surely it is not guaranteed, but we can see how our BTC portfolio is growing over a timeframe in which we might continue to buy for 4 years or more and then perhaps reassess if we might need to make any changes to what we are doing or just keep buying regularly.


Even if an investor has the same strategy, he might end up buying bitcoin at a higher price and then a lower price, so even a guy that got into bitcoin earlier could end up having a higher cost per BTC than someone who came in later, but in the longer run, he still would end up having more BTC, so the time in the market may still end up being better, even if he ended up with a bit of a higher cost per BTC than someone who came in later.  At the same time, there is ONLY so much value in comparing to other people, but a guy could still compare to himself at time one or time 2, and surely I am not much of a proponent for waiting, even though I know that sometimes, there may need to be adjustments to how much is bought based on anticipations of price conditions, including being able to buy BTC as the price is going down, if that might end up being a guy's point of entrance into BTC.


Sure.  How much invested is part of the formula, and another part of the formula is how much BTC each of them has.

The first guy has 0.5386 BTC  and the second guy has 0.4489 BTC. and sometimes we still cannot change the facts and/or the prices in which we end up accumulating BTC, and there may well be cases in which we acquire a bunch of BTC, and then the price goes down, and then we see some later entrants who are able to buy more BTC than we have for lower prices.. so yeah, we cannot necessarily avoid some of those kinds of situations, and we just need to do our best in terms of building our own stack so we feel as if we are prepared the potential of UP and also for down too.


Yes.  A guy could have bought various BTC earlier and ended up with $10k invested and 10 BTC and an average cost per BTC of around $1k, and he could choose whether or not to keep investing or if he believes that he has met his BTC accumulation goal and whether he is in a position to change his BTC strategy to something else.  Holding BTC gives options, and it may not be a great idea for anyone to just start cashing out his BTC  in large amounts, so personally I believe that there are ways to sustainably withdraw bitcoin through either time based withdrawal strategies or raking strategies that involve selling as the price goes up (I talk about both of those kinds of strategies in my sustainable withdrawal thread), yet a person still needs to figure out how much of an income he might want to get from his BTC in order to conclude whether he has enough BTC to start to employ sustainable withdrawal or if he wants to keep accumulating for a while or if he might just want to wait for a while between accumulation and when he might start to employ some other kinds of practices.

I guest he doesn't know the time frame he should have use to describe how volatile bitcoin would be. Parhaps he just have a short sightedness on Bitcoin. and according to his explanation the discripancy is indirectly pointing on trading even though he didn't explain all what he meant.

@cityhunter34 When talking about Investment your goal should be focused or Chanelled on a long cited goal, not a mear change in price within 24hours. Bitcoin volatility is beyond few hours change in price. Your goal should be a long time plan of 4-10 years minimum and 20-30 years maximum. by then you may have reach your exit time. When you may have accumulated alot and may need less of accumulating rather taking out %10 of your investment. So don't focus on a short time. Always make sure you have a discretionary income that will help you way up, to keep you up to date by constantly buying weekly through DCA strategy. That will keep you out from selling your holdings or ripping off your investment premature. Because not having a discretionary income will slow your investment plan down, just like someone going to war without a weapon.

Checking From your analysis, I see a slight difference in price from the first and second. The first person who did his DCA at the beginning or early 2021 peak and late  october 2021 peak, there is a slight different. Showing that time intervals of investment really matters to every investor. If the investor who invested at the late october peak 2021 baught when the first  person baugh he could also have made him self alot of profit but now you can see there different clearly  $17500 and $13600. Those are two different figures. It is important to buy btc at early stage than allowing it to increase to an extent people become confused of not knowing when to buy expecially the confused investors. The more people buy BTC when it is low in price, the more we have accumulation power of having more bitcoin in our possession. which implies that in the future the amount you have will keep on multiplying in your portfolio. Let's say someone baught like 10 bitcoin when it was like $1k each at a total of $10k by now his rate of accumulating will reduce because he has taken advantage of Bitcoin low price. By now surely the person may be in harvest time depending on his time program of selling.

I doubt that we should be measuring our BTC investment in short time frames, and surely if we measure in 4 year or longer time frames, then we likely are going to be doing quite well, even right now.

Let me take a couple of shorter time frames and let's see where we might be, even if we started investing $100 per week in BTC at various high price points in 2021.

Example 1: Started buying $100 per week at the beginning of the year right before the first 2021 price peak.  We would have had invested $17,500, and we would have about 0.5386 BTC (currently worth about $33,833) (so nearly 100% in profits... or nearly doubled in value.


Example 2: Starting in October 2021 - right before the second peak in the BTC price. The guy buying $100 per week would have had invested $13,600, and we would have about 0.4489 BTC (currently worth about $28,218) (so a little more than 100% in profits... or more than doubled in value.

Those first two examples are not quite right, even thought the first guy has more BTC than the second one.. so usually the longer that you are buying BTC then the more likely you would be in higher levels of profits..

Let's try another example (Example 3) of a person who has been buying $100 per week for the last 4 years, so that would take us back to May 2020...  He would have had invested $20,900 and accumulated 0.8405 BTC (currently worth about $52,909) (so about 150% in profits...

Let's try another example (Example 4) of a person who has been buying $100 per week the last 7 years, so that would take us back to May 2017.. back before the 2017 run up...  He would have had invested $36,600 and accumulated 3.689 BTC (currently worth about $232,300) (so about 535% in profits...

So there is a kind of tendency that the longer that you invest, then the more likely you are going have created more options for yourself, as long as you mostly accumulate and protect your stash from getting taken from you... maybe privately storing it.


We can likely see it in our BTC portfolio with the passage of time, so no one would have to tell us; however, surely in the first 4 years or so, it might not be so clear regarding the amount of profits, so sometimes it can take a while to see that the bitcoin investment had given more options by investing into it as compared to not having had invested into it (or perhaps choosing to invest your money in other places).

Yeah I suppose you correct but many peeps fail to see the bigger picture which the is always uptrend of Bitcoin no matter the storms it has faced because as the records show 2010 till date even though there were bad times the price just continued to beat the previous no matter the circumstances around Bitcoin movement and that's why this upwards mentality needs to continually play out on our heads so that the will power to continue buying will always ring on.

Perfectly said @JayJuanGee because looking at the way Bitcoin price is moving I think is really good for one to Accumulate more Bitcoin in our portfolio because just as you have said earlier if we check since that time till today will would notice that you are right, because even as at yesterday Bitcoin price was $56 but just this night the price have increase to $63 and if we check it now any one who buy Bitcoin as at yesterday that the price was DIP you we see that the person have make huge profit today that price is up, so that's why is always necessary for us to accumulate more Bitcoin, and I still have strong feeling that Bitcoin will go more higher in the future.

It is not completely unpredictable. It has mostly been going up since 2010 (when it first got a price), and yeah there have been periods of down, but you will must consider that the trajectory has mostly been up, which justifies considering getting some in case it catches on, and then once you get some just continue to buy it... . there is no reason to believe that it has stopped in its overall trajectory to go up, even if there are likely going to continue to be various corrections (and volatility) along the way.

me it is not a best decision because nobody knows the rising point of Bitcoin there is every possibility that when you invest there the price of bitcoin can drop, the price of bitcoin can change at any time, so make you no think that bitcoin price can change or can remain like that, what they did is just to try their luck and it favour them, so looking at it very well you notice that bitcoin price may rise above 70k or fall below 50k, say I said that is because the price is unpredictable

FTX and LUNA are the most evil shitcoins, just imagine how many victims have been fooled by the fake liquidity of these two coins, while Bitcoin has never even deceived a single person. 

It is reported that CZ, the founder of Binance, has been detained by the police, this has made quite a significant correction to the BNB token, if BNB does not have large liquidity then this token will definitely follow in the footsteps of FTX and LUNA, so for the sake of your peace of mind at night, just invest your money in bitcoin, use the DCA method and don't trade futures.

That's why one shouldn't panick when there's any dip in market , instead one should focus on accummulating more Bitcoin quantities in their portfolio. because panicking will only lead to one making decisions that may endup affecting them negatively, like selling their Bitcoin in losses or when it haven't yielding any good profit yet.


That's why is not encouraging to hold any shitcoins, because most shitcoins are just pump and dump scheme, with no other purposes. And most shitcoins always endup with dip without having any hope of bouncing back. Not only that though even those who are using leverages, I came across a post on X formally known as Twitter, how an individual $1m got liquidated during the dip before this year
Halving and he made a statement that he may not survive this . So is better to accumulate yah Bitcoin without using leverages to be in a safer side so that you won't endup getting yourself liquidated, rather take your time and accumulate using any accumulation strategy.

Hahahahaha, I completely agree with you on this  and it is a bitter truth to be told, a gambler can never discuss about his or her losses but will tend to brage about when they make a little win hahahahah, which ever way we may have it one of the disadvantage of being a gambler is that you will easily become vulnerable and prone to addiction on the invent of chasing losses which can be very suicidal hahahahahaha. I really gat your point on this.

Buying at the price of $56 was a good decision because bitcoin will definitely go up, bestcoin csn see the difference between when he bought and now. The price of bitcoin has increased and those who bought Bitcoin when the price was $56 recently it was never a bad idea  and to those that have been hodling even before now should not panick and sell out to the amount which was never planned for them. It is still a good time to still buy bitcoin and hodl because the price of bitcoin will go up more, it is possible their may be slight dip when hodling but these dips are not meant to remain, they are just opportunity to buy more bitcoin for the bull market.

An investor career doesn’t stop him from investing or using any strategy he/she desired besides buying using the dca is good for an investor who used the lump sum for start and decide to continue buying gradually . No matter the strategy we desire or restrict ourselves from using we must also consider what’s bitcoin investment and what’s the end result of our investment personally like knowing how to handle risk before we can start selecting different strategy. I believe dca can be done by any investor not just salary earners etc, most people earn their money differently and decide to buy using dca so it can be preferable by any investor.

The DCA method reinforces your BTC holdings regardless of price movements and more realistically reflects your long-term holdings. When it is positioned more DIP you can increase the buying trend which may take less time to fill the circle and create an opportunity to extend to another circle. Your more inclusive behavior is recommended by increasing the size of your stacks in BTC and protecting your holdings during the next ATH.

Market price impact is normal for investors to be satisfied and dissatisfied. Sophisticated DCA strategy can increase your satisfaction level in the long run when followed regularly. Market momentum and consistency with it improves your investment levels and encourages you to increase your holding size in the long run.

Luna and and FTX is really a good coin before and many think about there's good future to come with this coin as they got a lot of holders. But one issue came and there's a lot of people been liquidated on bad event happen on their ecosystem which result to many people lose a lot of money from this. That is one of prime example that we should forget to think about investing on those altcoin but rather we should focus ourselves to do DCA on bitcoin only. Its hard to test to waters since for sure those people who keep investing on those shitcoins will regret and will say that if they just invest their money on bitcoin they could still able to enjoy all their balances stored which have big potential to gain in future. That's why I understand those people who's angry on those shitcoins and always try to correct the mindset of people about their shitcoin investment since they really need to realize that those type of crypto is just a waste of time.

Yea it is almost impossible for any potential or existing investor to avoid constant check of the market price list because an investors mindset is centered on profit be it short-term or long-term investor, but the truth is that as investors in this field of investment we already know that Bitcoin investment if for a long-term and market instability is bound to happen at anytime, so for me constant price check might lead to a regrettable decision of a holder since we already know how the the market operates.
The DCA method is more beneficial to people that doesn't have enough funds to invest once, this strategy help them to comfortably invest continuously with what they can afford and allows them to increase their investment when they find it convenient and necessary.

JJG has been pointing out in the past that this is completely risky, and the majority of investors who have experienced losses in the market have been ShitCoin investors. What those who want to invest don't notice is that FTX and Lunacoin have been destroyed in the market and have left all investors facing losses. At that time massive investors also committed suicide so these things happen in 2022 if history is made. So every investor must remember that as a long-term only I think Bitcoin is suitable, and all other Altcoins are not suitable for long-term investment. So I will always recommend investing in Bitcoin and I myself have invested in Bitcoin and it is long term.

 It's not necessary to go into shiltcoin leaving your BTC at the range of 10-20% why shiltcoin takes over 80% it's very unwise such investor lack future focus and may be difficient in knowledge about the market, many run into this shiltcoin because it's cheaper for them to invest i don't see that is a result that shiltcoin has any value that Worth more than BTC, if one have the feeling of diversifying his investment or feel to trade with shiltcoin it better is fine as JJG has always given guidelines lunching deep to hold it long time is very bad and the risk can curse more harm than any because one may end up lossing the whole thing, it's best one see the profit withdrawal with the short time before the market turn against them, but running to invest on shiltcoin because of its cheap nature is very unwise the worst is to hold long term it show the investor is lacking behind in knowledge.

FTFY

Since you were describing what I say, I thought that I would attempt to correct what you said.. since it would not be necessary to invest into shitcoins, but some guys are unable to resist the temptation to invest into shitcoins (and yeah maybe invest it not even the correct word since getting into shitcoins likely requires an in and/or out strategy, but surely there could be some guys who buy shitcoins and just want to hold them for long periods, even similar to how they are thinking about bitcoin, which seems a mistake, but some guys will come to those kinds of conclusions or be tempted into getting into shitcoins based on their talking points or whatever)...

so if they are able to at least have some kind of a shitcoin limit they might be in better shape than many of the guys that I had seen in 2017 (and yeah even later times) that would say that they were all into shitcoins or that their bitcoin position was only 10% or 20% of their shitcoins, which really sounds dumb now, and to me, it even sounded dumb then, but a lot of guys were either not investing at all into bitcoin, or they would ONLY have a relatively small bitcoin position since they were feeling as if they needed capital for the various shitcoins that they were fucking around with.  .. Of course, not all of them ended in disasters, but gamblers don't tend to tell you about their losers.. hahahahahaha

It is a Bitcoin thread  and there no way any one can understand what you are talking about with the use of the term cryptocurrency, the only potential coin is Bitcoin and it is not wise approaching it as tradable coin. However, it would have been better to focused on Bitcoin with all the preparedness and have it up to reasonable amount before considering spreading out your investment which I will suggest a real life investment that is not Bitcoin related such as selling commodities, lands, gold which are more preferable compared to spreading out to other coins other than Bitcoin, but as JayjuanGee Will always say that you shouldn't do more than 10% size of your Bitcoin in other that's if necessary.