Topic: Buy the DIP, and HODL! - page 121. (Read 142280 times)

Good thing that we have to ignore what others think about their investment as it is a personal decision. In every discussion I've heard about Bitcoin investment from my peers, I have heard that it is a risky asset and not profitable. Fuck what they think, if I have been keeping what they say in mind I wouldn't have started my investment and reach to this level.

Sure for a long-term benefit, Bitcoin is the best. People with delusions of high risk - high reward will perish because of knowledge. There is no easy way in and out of Bitcoin investment. If we want to be successful in it while investing we should focus and learn. Grasp every knowledge we can get, because it will be useful someday along our investment.

One thing I have noticed is that many are ignorant of quality information and helpful resources. Probably they may find out in the future that does discussion and conversation they had which they did not adapt would have been helpful.

You're absolutely right here Jay. I have tried overlooking this but I need to air my opinion. Diversifying into other assets after accumulating a good amount of Bitcoin can help reduce risk rather than hurt our portfolio. In a situation where Bitcoin experiences a drop in rice, the other asset or business may perform better. having another asset to look up to will help create a balance. That asset may perform better during the market which will serve as the source to turn to instead of tapping into our Bitcoin.

I like how you added knowledge to your point because through knowledge one will know that the time of dips is not the time to panic rather a time to continuously buy more Bitcoin because then it is cheaper to get. Knowledge will enable one understand that the price will always recover when the time is right. It is those who lack experience that often panic when price is going down because they failed to realize that the price does not go in one direction forever, rather is also retraces to represent the general behaviors of the market participants. So, good knowledge of the market dynamics, price cycle, corrections and consolidation and the phases of the market and others are very important for the sustainability of the investment.

It is also a thing of knowledge for one to be able to know how to many the finances to be able to set aside the emergency funds as well as the money for daily needs if the investment is to be protected from sudden sell off. I learnt a lot here and that has changed my investment approach significantly.

Lots of people do make this kind of mistake. When making investments, we are supposed to always have emergency funds, we shouldn’t invest everything we have, we should have money that will be used for daily activities and some amount that will serve as emergency funds. In case anything happens, you will be able to take from that to solve the problem without even touching your investment, but if you invest everything you have, you will end up selling when you are in need of money. Investing everything you have is not a sign that you are really serious with your investment, if you invest everything you have, you might end up selling most of it, and it might be at a loss.

This is one of the reason that a new investor should only buy bitcoin with hi discretionary income that he will not need for a very long time in order for him to be able to continue buying bitcoin weekly or monthly regularly and hodli for long with DCA method, persistently and consistently for 4-10 years and above. It is good that before buying bitcoin you should be able to figure out how much is your discretionary income first, so that you don't go and use part of the money for your monthly expenses and needs to buy bitcoin to avoid you from gambling thinking that you are investing.

It is also important for an investor to set up an emergency funds which is a back up to is bitcoin investment so that when a real emergency comes, he can use the money to take care of it, instead of selling his bitcoin to take care of an emergency.

We are talking about bitcoin and not cryptocurrecy because using that word means that shitcoin is the same with bitcoin which can be misleading to newbies.

I would also like to add that you should always remember that you need to leave money for everyday expenses, because many investors make a mistake: they want to quickly accumulate more Bitcoins, and therefore allocate too much of their Fiat for buying at DCA, after which they do not have enough to live on. And they have to withdraw cryptocurrencies back into fiat, and such an approach partially ruins the idea of ​​measured and correct accumulation of digital gold.
It is also imperative not to forget about security in terms of programs and phishing.

that's why it's called a basic concept because at the start, you have to invest what you can afford to loose which is more like another way of saying, Invest what you can afford to leave for long as though it's not your own. no one invest in an asset because they want to loose the amount they've invested. If that's the case, it will be practically impossible to continue investing when you've stacked up a good amount of Bitcoin. The analogy is only to help you invest and take your mind off any thought of selling untill you've reached your accumilation goal.

As an investor, you should know the risk involved in what you're investing into and even though we're certain that Bitcoin is not all that risky to the extent you can just loose all your investments without your knowledge or just suddenly, it's also good to acknowledge certain possibilities so while you're investing most expecially as an early investor, you try to invest an amount you won't need for a long time.
I think I'm in agreement with this phrase of Investing what you can afford to hold for the long term because it actually speaks volume of the reputation Bitcoin has built over these years and likely, the notion of investing what you can afford to loose might have spring out in the early days of Bitcoin investment when people where skeptical about it. For now, it's mostly for altcoins and meme coin that you can mostly talk about investing what you can afford to loose since they still lack credibility to a large extent.

4 years might be the completion of a circle but it's still not an end point to ones investment goal. At least, if you've invested for 4 years, you should have build an high level of maturity and knowledge about Bitcoin and deciding to leave you investment further than that will then come naturally because you've witnessed almost all the basic market conditions there is to Bitcoin investment.

No this is a wrong advise because if I know I will lose the money, I will never invest it! This statement sound like fud, a way of amplifying the risk in Bitcoin investment. Tell me, how do people lose money in Bitcoin investment? If you can be sincere with this answer, you will realize that most people who lose money in Bitcoin are those who invest today and are already looking to sell the next day; these are not investors but traders. Those who invest in Bitcoin for long term holding rarely make losses. This does not mean that there is no risk in Bitcoin investment. There is risk but it is not as saying that I must invest what I can afford to lose in an asset like Bitcoin that I know have come to stay and is already gaining more acceptance daily. Instead of this statement, let us try and put it the right way which is to encourage people to invest amount that can afford to hold for a some years like 4-10 years which is generally suggested in this thread. This also agree with the records that Bitcoin have been making a new ATH every 4 years which is seen as the market cycle of Bitcoin so any investment kept for at least 4 years is bound to generate profits other things being equal. 

That's the basic rule of investment, but somehow lots of people downplaying it since many think that high risk high reward. That mindset is somehow not recommendable since somehow we are tolerating those entities to take advantage with our wants to earn money. That's why aside from having guts to invest on a risky asset we must also be aware about the risk and any possible best decision to take to minimize the risk we might encounter thru the whole process of our investments.

Good thing bitcoin is here and reliable for long term, its just people need to have patience also knowledge so that they would able to know how to deal with this coin and find reliable ways like by using good strategies which is helpful for investor to have smooth ride with their investments.

"Invest what you can afford to lose" is pretty basic when it comes to investments, but sometimes I don’t follow that strictly because I’m very confident in betting my future on Bitcoin. For me, it’s all about long-term investment, adding little by little until I reach my goal. I don’t focus on the price much, so I stay relaxed, even during bullish runs. I’ve learned to control my emotions, and even when the market turns bearish, it doesn’t faze me at all.

I don't really disagree with you, even though you do seem to imply that there might exist some higher level skills to invest in bitcoin, which there aren't - even though the more aggressive anyone is going to be in their investment (in regards to using a lot of their discretionary income) to buy bitcoin, then they are going to be more prone to negative consequences if they screw up their cashflow management and/or make mistakes in their figuring out and applying their level of aggressiveness. 

Persons who choose to be less aggressive in their bitcoin investment (accumulation) approach will be less likely to make mistakes with their cashflow management, even though they would not necessarily be as advantaged as the more aggressive bitcoin investor in the event that bitcoin ends up continuing to perform well as it has historically done.

Yes, every investor has their own risk tolerance, beliefs, knowledge and investment goals. But the best way to not worry easily is for investors to be able to manage Bitcoin volatility by not trading it too often. Bitcoin is an asset that can be left to run for the long term, when in extreme sentiment, investors must be able to control their emotions by rebalancing the number of assets, the situation will return to a profitable point because so far it has been proven with good performance and is increasingly popular. As growth increases, volatility decreases over time, with wider adoption, volatility will likely be lower than it is today.

Capital management is one of the most important skill everybody should have
Especially in the current world.
"Cut your coat according to your size " A strategy might work for another doesn't mean it would work for the other.
Capabilities should be understood first before investing in anything( not shitcoin) that can bring value.
Don't invest amount that would cloud your judgement all at once
Go steady
And build a foundation around your capacity.

To be frank Bitcoin accumulation seems very easy but a slight mistake can affect one investment, that's why we have to take precautions when we are  investing in Bitcoin. Bitcoin investment is not all about accumulating anyhow ,is all about following the right procedures while accumulating.

Some folks can be accumulating bitcoin aggressively but at the end they would endup ruin their bitcoin investment, Because they didn't follow the right procedures, by being over aggressive without any proper plan like having a backup funds ( emergency funds ), which may lead one to point of not being able to keep up with his expenses and same time with his investment, having the only option of selling off his investment inorder to keep up with his way of living and stuff.

My point is that Bitcoin investment is something one need to approach with proper planning , but with those planning and with enough cashflow. One can easily secure a long-term investment in Bitcoin.

It does not hurt to diversify investments after you have already reached decently large size of investments in bitcoin and cash, especially after you might have several years worth of expenses in bitcoin and/or cash. 

Diversification is a discretionary matter, and it becomes more justifiable the larger your investment portfolio becomes.

When you are first investing, and maybe even the first 4-10 years or more,  you might not need to diversify since you are still in the early stages of building your investment, and maybe after 4-10 years or more you start to get to a point of having 1 year or more worth of expenses invested into bitcoin, and if bitcoin had appreciated in price too, then you might have even more years of your expenses in bitcoin and cash, and at that point it seems to make sense to put value into other areas, such as stocks, bonds, properties, commodities and perhaps other areas, and again surely discretionary regarding how to allocate, reallocate or into what to diversify in the even that you want money in various areas and also you might also want your money to be working for you rather than the portion in cash might not be working for you and so once you have even 6-12 months of your investment in cash, you may well want some of that to be working for you, since maybe if you have an emergency you might only need 3-6 months of it, and even if you need more months, you would not necessarily need to access those funds right away but instead several months down the road so some extra funds could be tied up or invested in various other areas in which you would spend your other investments prior to spending your bitcoin.. .

Not easy answers and can become more complicated to generalize how to deal with such situations when the situations of people will likely end up varying after they start to accumulate more assets/investment and wealth and different ways to deal with volatility of bitcoin and even volatility of a variety of markets.

So when we frequently talk about diversification for the mere sake of diversification as dumb, it especially applies to newbie investors who may well be getting distracted by ideas of diversification when it is not needed in the early stages, but diversification does start to make more sense after accumulating more wealth.. even though it is still quite discretionary and varied in the ways that any bitcoiner might end up diversifying... including that there are some bitcoiners who come brand new into bitcoin, but they had already had various other investments in other assets (so they might come to bitcoin already largely diversified), so they are in a different position if they either already have a diversified portfolio or if they come to bitcoin and they have a lot of wealth, then they have more options in which diversification might be one of their considerations, which might not make much if any sense for most newbies who might be DCAing into bitcoin and don't even have very much already accumulated wealth.


You  are giving bad ideas Out of mind.  There are no reasons for newbie bitcoiners to wait, and DCA allows them to start right away and to figure out how much of a budget that they might want to put into buying BTC. There is also no reason for newbie bitcoiners to wait for dips, especially if they plan on buying BTC weekly, even though within their weekly buys they might want to try to time their buys on the dips, while recognizing that it can be challenging to accomplish such buying on the dip and it may not even matter very much in the long run if they buy the dip or not so long as they are buying every week.

The more bitcoin that a guy accumulates, then the more he is prepared for UP.. so if he is more prepared for up, then he might feel justified in holding back some fiat in case the BTC price dips, yet there are always trade offs to employing waiting strategies, even though it could end up paying off if the BTC price dips... so the answer is not clear since we cannot know in advance if the BTC price might dip or not, yet we can decide for ourselves whether to hold back any value for buying on dips, and if we do then how much and then how much of a dip to make various buy on dips... whether once or to spread out the buys realizing that some buys might not go low enough to execute.

As new investors are always excited to buy, so I would say that newbies should wait to buy Bitcoin. However, using DCA is a very good strategy for buying Bitcoins, so an investor will always be risk-free using this method. It is important to allocate an amount of money before investing, while an investor waits for the dip to buy bitcoins he can by using the DCA method with an amount of money. However, if such a new investor plans to invest long term in relation to this cycle, and he can HODL then I think he will benefit in future. But of course everyone here should wait to buy deep, when the market goes deep it is better to buy more bitcoins and HODL.

I agree with you, indeed this is not right for new investors to do in accumulating their Bitcoin because they will miss many opportunities in the process of waiting for a drop, for those who have reached the maintenance level of course they will be able to easily accumulate according to their wishes because they have understood well the right time to buy it and not infrequently they will make purchases at once when they consider the time is very right to make purchases at once with the reserve funds they have.
For beginners, it would be very appropriate to use the DCA strategy in accumulating their Bitcoins. If they can do it consistently, of course they will also benefit from holding these assets in the future.

Investors try to raise expectations for dips and naturally their waits may increase. If an investor has DCA running, he expects dips to buy more bitcoins because he wants to pick this as an opportunity. However Bitcoin price correction period is relatively limited. DCA should tend to increase the amount of reserve fund although investment advisors recommend holding the reserve fund for six months or more. In my opinion being more strategic about buying dips depends on the amount of your floating cash.

For new investors the decision to wait for dips in price can be a little delay in increasing the investment range so DCA should start with the amount allocated for investment and later if he expects more bitcoin holdings to get the price correction level in the long term  cycle. Buy more from Dips.

Waiting for the dip before accumulating Bitcoin is a wrong way of accumulating Bitcoin because you will definitely miss more opportunities of accumulating more Bitcoin those that can wait for the dip before accumulating Bitcoin are those investors who might have gotten to there maintance level in there Bitcoin accumulation journey may as well wait for the dip before accumulating Bitcoin as they can buy with there reserve fund but for new investors waiting for the dip before accumulating Bitcoin is wrong, where by they can accumulate Bitcoin using the DCA strategy which will help them accumulate more Bitcoin regardless of the price little by little either weekly or monthly and hodl for the future.

In fact, those who wait to buy dips are always missing out on good market opportunities because the times they may have been waiting for never come. Market ups and downs are often unpredictable, and we may not be able to buy precisely at the moment a dip occurs. For those who only want to buy in dip, it is very difficult to buy at the right time.

However, using DCA strategy is always correct as it is the best way to build portfolio gradually. By investing in this medium, the risk to the investor is always low, the short-term upside allows the investor to accumulate more bitcoins and take advantage of all the advantages. But for new investors, market volatility may seem scary at times, but if they decide to continue DCA for a long time with a certain solid plan, and take market dumping as an opportunity, they can hold DCA for a long time without any hindrance. And can greatly increase their portfolio.

If we check the performance of bitcoin over the last decade, you will notice that bitcoin is the most performing asset in terms of ROI. Bitcoin has given a better return than real estate or any other investment that you will think of. Sometimes when I hear people say that they want to take profit from their bitcoin investment and diversify to other investment it baffles me. Does it really make any sense that you are disposing the most performing asset to diversify to other things that can't give you half of what bitcoin will give you if you continue holding bitcoin.

 I will rather stick with bitcoin than diversify to any other investment. As an investor if you think you have gotten enough bitcoin that's enough for you at the moment. It will be best to stack up cash, as diversification. with your bitcoin and cash deposit you are far better off than diversifying to real estate or anything else.