Topic: Buy the DIP, and HODL! - page 138. (Read 130749 times)

The DCA method is not only for those who want to buy Bitcoins but cannot buy them all at once due to lack of funds.  The DCA method is for anyone who wants to invest in Bitcoin.  Everyone knows that Bitcoin market is the most volatile market.   If you are a true investor, you definitely don't want your money to be lost after investing.  To catch up with what you said I would have had to go back another 8,9 months and invest when bitcoin was $35k,$36k.  But now the price has reached $70k!  Now what if someone invests a large sum of money at once, and 2 days later the price of Bitcoin drops to $40k?  Have you thought about that?  I think no investor can think like that.

I doubt that DCA is what will guarantee your success in Bitcoin investment in the long run. Most people DCA and later tamper their investment, some could not resist the hunger to sell when they see some price increment. Dollar-cost average is a strategy to buy and accumulate but what will determine our success in the investment in the long run is if we adhere to the rules of not selling, and no tampering till the maturity date or the day for sustainable withdrawal.

Depending on what you are referring to as early days.. The fact that you are believing that Bitcoin would go so high to such extent is quite realistic, because when it was below $10 dollars no one then expected it to reach $60k. In essence, it is an assurance that would help new and old investors to continuing investing in Bitcoin no matter the price it is now or would be in the coming days. Meanwhile, i have really thought about the DCA approach reaching a point where it becomes null for investors to use. Although it would be dependent if Bitcoin volatility ends completely which I do not see happening anytime seen. Since DCA does not care about the highs or the lows then it would be sustainable in a long time.

To me, buying is better than selling. Its essence is not that you just buy. Rather, it's better to sell 1 time if you buy 100 times (selling 1 time instead of buying 100 times is just an example, it means lengthening the investment). Regardless of the strategy you use, I don't think it's a good decision to think about selling too soon. If you use the DCA method you will get many opportunities to buy and in this case if you decide to hold for a long time without thinking of selling, then you can be considered as an ideal investor. That is, the invested money should not be spent in any way, either through trading or through sales.

I agree with your sentiment here, the DCA accumulating strategy works mostly for someone that has the intention of holding for a very long period of time, because since you are buying in different price interval, you wouldn't reap the full dividend of it,, if you aren't a long term holder, so as we are still in the early days of Bitcoin, any buying price now will be very much ok, but in the future, when Bitcoin has already skyrocket to one million dollar, the DCA accumulating approach wouldn't be that idea again, so I urge all Bitcoineer to seize the opportunity now and utilitize the DCA accumulating strategy now that it's still effective.

I cannot completely agree with you. Because, as far as I know DCA method works for everyone and all types of people can invest in this method. DCA method is considered as ideal investment method for small scale or large scale investment. DCA approach reduces the risk of loss in the long run.

for now, we can't legitimately tell if Trump is just making the usual political promise which is a probable statement untill the election has come and gone and we see him matching his words with action. The planned strategic reserve will have two implications, one is that curent HODLer will get encouraged to keep holding while the second implication is that intending adoptors will become more encouraged to adopt Bitcoin usage in Thier institution or firm. These are all indices that are anti DIP that have all it takes to lead Bitcoin to becoming more bullish and not experiencing any form of correction for a long time to come.

Just Like what we've been seeing now, corrections are very much a part of bitcoins volatile property and although if we look at the current Bitcoin price with respect to 3,2 or one year ago, we can easily see that it's been bullish all along with some minor corrections.

if we the US adopt Bitcoin as her reserve after the election,  China and Russia will definitely have a rethink on thier stand on Bitcoin adoption and usage since they obviously get easily triggered by whatever action the US takes. Somehow, it's likely that most of these super powers are waiting for who will be strong enough to make the bold decision of full scale adoption and usage and that's what Trump has seen and plans to way into the vacume early enough and come on really big and if he's able to take that bold step, it's surely helping to surge Bitcoin up to the moon.

this is purely the advantage of the DCA. you get to watch all event playing out while you're still accumilating your BTC.

I also disagree with you because i can't comprehend the point you are trying to state here as you keep contradicting the whole statement because indirectly you are referring to Bitcoin as a pump and dump which gives me the mindset that you don't really understand Bitcoin that much because if you do you wouldn't have regard it as a pump and dumb, perhaps maybe your confusing  Bitcoin price movement going ups and downs to be pump and dumb so on the contrary Bitcoin cannot be regarded as such because is only altcoins that behave that way.

You are also getting it all wrong here because the purpose of DCA strategy is not to accumulate Bitcoin and sell when your investment portfolio has increased is totally wrong actually because that is not holders mindset instead it sounds more like someone who has interest on short term, so actually if your mindset is for holding I think you should reason how your portfolio will appreciate more in value instead of selling.

Well I don't know your definition about DCA strategy because when we talk about DCA strategy it doesn't necessarily mean that you are being forced to start accumulating Bitcoin on a daily basis, on the contrary it depends on the individual or investors capital to choose if accumulating Bitcoin on a weekly or monthly basis will be okay for them and consistently accumulating within those periods, also what you failed to understand is that there are some rich people who focus on accumulating only when the Bitcoin price is dip which makes them not to be regular on the market, so perhaps that doesn't mean that those who uses DCA strategy are not regular on there Bitcoin investment.

Such a great point! The idea of selling when in the accumulation phase can lead to a nearly 100% failure rate in the long run. Unless an investor is in Bitcoin for the little profits every day to take care of needs, who would possibly do that, is it not crazy? In the long run, holding Bitcoin means no trading of bitcoin, no timing the market for dips or highs which in general means no selling until there has been enough accumulation for sustainable withdrawals.

Buying on dips or peaks through DCA is not the worst thing an investor would do rather selling and trading in dips or peaks is a bad decision. The fat is that the increasing value of Bitcoin increases in the log run. So no selling, no trading, no tampering just HODL. 

Well said! The concept of buying the dip is not actually terrible approach on its own as it can actually come in handy in specific occasions but it is often tied with making rash decisions based off of emotions and could easily lead to losses. BTC should be seen as long-term investment by Investors and any change in the market price should not influence the Investors to make any abrupt changes.
Indeed the DCA strategy is among the best accumulation strategies that any investor can opt for, especially when investing in such a volatile asset like the bitcoin. Therefore by following this method, one can somehow stabilize the fluctuations in the market prices and possibility of aggressive timing by investing a specific amount of money at constant and specific periods.

Yes, the measures of success in this area are patience and self-control. Therefore, one should set the goals, state a realistic investment plan and act according to it even with the short-term fluctuations in the market. It is important to note that the actual usages of Bitcoin are the potential for funds appreciation in the long run and the constant  growth in adoption, so it is always important to remember the long-term vision of Bitcoin rather than focus on short-run performance

Is it truly now possible that we won't be seeing any large DIPs anymore after Trump's announcement of a Strategic Bitcoin Reserve? Because why would individuals and institutions sell their Bitcoin with the knowledge that there's a probable race between nations in Bitcoin accumulation. One nation like China WON'T allow itself to be behind the United States in participating in this technological marvel. Russia, because of Bitcoin's properties and in their current situation, will need to buy it as well, and better buy it while it's in five digits.

Perhaps the "Bitcoin Race" will start on 2025, no? There's no need to wait to buy the DIP anymore if that's true. It's DCA and front-run everyone!

You are absolutely correct, falling down of Bitcoin doesn't mean it won't rise or skyrocket again and most newbie is still finding  this  difficult to comprehend but it's high time we make them know that Bitcoin is a very nice investment and one of the thing that best defined it is the up and down trend it always take and this up and down is what trader use to make their profit but that's not why we are here rather we are here to buy and hold for a long period of time so that, by the time Bitcoin will take a bull run we will all have smile on our faces. But dude you sound like someone that is talking about trading because in Bitcoin investment there's little or no risk and again in Bitcoin investment there's nothing like loss unless you are trading which is not why we are here and i can't advise someone to trade but rather I can suggest that one should invest in Bitcoin because it's the safest investment in the crypto world.

The DCA is not a regular method of buying Bitcoins because remember there are also rich investors that would love to go an all in by lump summing. For example, a rich investor may decide to come in to the market when the price was $56k and made a lump summing amount of $200k and Hodl for 10 years, then for someone who wants to invest using the DCA and they also start DCAing with $100k weekly when the price was same $56k. Now in 10 years time the person using the DCA will only own Bitcoins worth $48k which is just about one quarter the amount of what the person that did lump summing and let's assume that the price didn't DIP less than the amount it was when they both started their investments. So in this case the person that did lump summing is still at advantage and will make more profits than the person that used the DCA method to accumulate for 10 years. I just want you to understand that the DCA is a good strategy for everyone to get involved in the accumulating process but it doesn't mean that everyone should use same strategy.
       If one's portfolio has grown so big doesn't mean they should sell all their Bitcoins even if they have spent a long time to own such a huge portfolio, they can decide to sell part of it and not all and it also depends the price of Bitcoin at that time and if they have also met their investment targets before they consider if to sell or not but saying that if they have gotten a huge portfolio they can sell their Bitcoins doesn't sound right to me.

For investors following DCA it should be important to accumulate bitcoins even if the price is pumping or dumping. You are regularly accumulating bitcoins that grow over time and timing sales only comes from trading and making extra profits that may not be safe for your holdings. Your goal should be to continue accumulating a cycle or two or more cycle.
Deciding to sell Bitcoin during a bullish period may bring you short-term profit but can lead to a long streak of buying at expected price dips later on. Because the current market conditions are only seeing upward trend in prices and you should continue to accumulate. For example if you have been running DCA for the past one year you are continuously accumulating bitcoins at different prices and your portfolio is showing an average price in combination of different prices which is relatively much lower than the current market so if you can continue to accumulate for another 3 years or 7 years But you can expect massive profits along with the growth of your stash.

Investing in the Dollar cost averaging (DCA) method does not require us to worry about the Bitcoin market pumping and dumping. Because if we continue our investment using this suggested strategy then we may be willing to buy and deposit bitcoins at that fixed price regardless of the price of bitcoins in the market. This method is especially useful for those who cannot afford to buy a large amount of bitcoins at once but are willing to invest in bitcoins. Only they can invest in this method and buy bitcoins in small amounts and hold it according to their specific goals.

The advantage of investing in the DCA method is that your average cost will remain the same every time you purchase bitcoins for investment. That is even if the market price of Bitcoin increases even if the price of Bitcoin in the market is low. Currently, most crypto investors are using DCA to grow their investment portfolio by buying and depositing small amounts of Bitcoin on a weekly, monthly or quarterly basis.

That's because you misunderstood it all which is okay. I wasn't talking about regular investors buying bitcoin only when the price dumps to pump again, so maybe you need to reread the comment to have a better grasp of it than seeing it in the way you want to see it fit. I had to differentiate between the two types of investors in the market, those who are quickly engulfed by the market FUD and news (Mt. Gox sales and the Germany government sales of their bitcoin) which affected bitcoin price to deep, with some investors panic selling as bitcoin price kept on dipping below $55k whereas the other sets of investors which is the category of Ricardo11 were taking the opportunity of the dip to continue buying and accumulation their bitcoin portfolio. And for me, that's how every long term planned investors should go with their DCA, buying at both dip-ish and non-dip-ish times without fears because their plan is long term and bitcoin will definitely do better in a long term.

It can never be assumed that once the value of Bitcoin falls, the value of Bitcoin will not rise from there. We all have enough knowledge about the Bitcoin market and we have been knowing about the Bitcoin market for quite some time so we only need to have a tendency to take risks. What we are always nervous about is that we don't trust to invest when the price goes up because then we might think that the market has gone up a lot and the market will dump a lot again from that uptick. Again when the market does a lot of dumping then we think that maybe the market has collapsed and the market will only go down from this situation periodically. We miss many investment opportunities because of these two ideas. But to prove ourselves as an investor, we must accept all these risks and invest. If we always hold back due to the fear of loss then the right time to invest will never come to us. We have to time our investment at the right time only then we will be successful in investing

Your advice is not acceptable to me, because regular investors never invest after seeing dumping and pumping in the market. Investing in the Bitcoin DCA method Those who follow the regular DCA method only invest, and when the portfolio grows, they will sell the bitcoins again after a long time. 
You notice that currently the most difficult phase is those who are buying and selling Bitcoin outside the DCA system, now is the opportunity to invest in Bitcoin for the long term. You see a poor investor can never buy bitcoins all at once, so buying small amounts of bitcoins over and over again with this DCA method will definitely build up a large portfolio.

Exactly, and this is where most persons get it wrong selling their Bitcoin because of the little profit they have earned and hoping to buy back at a cheaper price or rate that is more like throwing your bucket of water away because the sky looks like it will rain and what if it doesn't rain lol... though it actually do work for some people at times... That is to say it's very rare. What is the need of selling Bitcoin when someone knows he/she doesn't have enough of it, I know emergency is one of the factors that initiate this act..., We shouldn't allow this " Buy the Dip" to confuse us reason because Bitcoin will/may never Dip to where you expect it before you buy that is why it's advisable to use the DCA method instead of waiting for Bitcoin to Dip before buying, we should take advantage of every opportunity we have because it's definitely going to worth it with time and the tools we need to carry out this properly is patient and discipline.

They can actually prevent to install fear in their mind if they help their self to learn. Also those people experiencing that feeling or scenario is engaging on trading that's why if they don't want to experience getting to much issues on their bitcoin maybe they should stop doing some trades. Its because if they can't handle this so much and have less or little knowledge on taking decision for sure that they end up losing.

We provably didn't see the best thing yet for bitcoin and provably there's more to come for this year. Also hopefully those people who can't afford to trade would realize that holding is more better for them than taking risk in trading. The drop price would really be an opportunity for people who hold but for some traders this scenario cause them heavy panic which result to creating mistake and it will cost them a lot of money especially to those who trade all their hard earned money which also not advisable to do.

I doubt that we are talking about taking profits in this thread, since that seems to be a trading idea.. and we are largely focusing on best practices when it comes to both accumulation and investing.

Surely, once we reach a stage of over accumulation and sustainable withdrawal, that could be referred to as "taking profits" even though the term "taking profits" does not seem right, and it seems incorrect, also in the way that you are using it to suggest that you are selling your bitcoin in order to buy back cheaper.. which is also not really what we are talking about or doing here.. yet anyone can do what they want, yet when it comes to the topic of this thread, we are not talking about that way of managing our bitcoin holdings.  In other words, you do not tend to employ a strategy to sell bitcoin in order to accumulate more bitcoin, yet once you have over accumulated, then you have more abilities to sell BTC on the way up, but it is not for the purpose of buying cheaper, even if you might end up using some or all of the sales from any proceeds to buy bitcoin when the BTC price drops.. but you still gotta get there first.. so "taking profits" does not seem like a good way of describing what we are doing here or the long term investing and BTC accumulation topic that we are attempting to focus upon in this thread and part of the reason that this thread is so valuable is partly based on the various ways that many of us attempt to differentiate investment from trading and what kinds of philosophies and practices follow from being able to both understand the difference between investing and trading and to attempt to act in accordance with a investing approach to BTC rather than employing or mixing investing up with a trading approach to BTC..