Topic: Buy the DIP, and HODL! - page 147. (Read 122171 times)

All what your saying is correct in terms of investor making a choice because even as it's preferably investment strategy may be certain individual has what they prefer most, though while the lump sum is mostly discussed here for me is as a result of many who speak of investment like newbie may hardly have what it takes to lump sum, because the DCA for me is more easy because since it's not just once buying, it does not look too huge interems of releasing the money one has at hand why engaging on it, using the lump sum some who are not financially competent may be afraid if the money to lump sum is very Big but this DCA seem gradual accumulating that one will not know before hand has invested huge .

Well said, Any investor can lump sum as far the money is readily available which can be sourced from your point already listed out, lump summing does not mean an investor needs have thousands of dollars but simply any amount above the normal for instance; Someone who already had a savings of $500, he decides to start investing in Bitcoin which he did use $300 to buy Bitcoin and initiated a plan that allows him use $20 weekly to keep accumulating the, $300 is the lump summing amount.

Everyone is entitled to there choice and decision on how they choose to go about there investment, the goal should be focus on consistency and discipline aligning with your plan.

As I would always say, the strategy is not the criteria for a good stash of Bitcoin though has an influence but the amount invested is directly proportional to the amount (stash) of Bitcoin present.

It designs to all and very manageable strategy to use by anyone. That's why this has been the hottest topic since many think that even newbies can able to do this strategy since its easy to understand and execute depends on there willingness to invest at certain times.

But they should not forget that there are other good methods to use like lump sum investing which people could also consider to use and they can diversified their portfolios by using this. Now its up to the investor to research on which strategy is suitable for them since both DCA and lump sump is good methods to use for their investment on bitcoin.

This assertion has been corrected @jay juanGee of which I completely agreed with him that anyone can actually come in to a situation in which they have lump sum amount available and make such decision of utilizing the lump sum buying strategy in to Bitcoin investment such as one could (1) win a lottery (2) received a bonus at work (3)  or an inheritance money, just few to mention which of this doesn't necessarily or exactly make them rich but out of their personal decision to lump sum buy after taken care of their living expenses and provisional emergency funds, what am emphasizing on is that the idea of the lump sum buying is not only subjected to the rich. But however, the logic is that every investor must choice a strategy or strategies that will suit him or her.

The DCA strategy was not designed for poor investors; both the rich and the poor can use this strategy to accumulate bitcoin if they want to. Every investor accumulates bitcoin with the DCA strategy for different reasons, but one of the main reasons that attracts people to use the DCA strategy to accumulate bitcoin is that it will control their emotions. With the DCA strategy, you will never want to wait for the bitcoin price to drop before you can accumulate a stash. You will accumulate bitcoin anytime your money is readily available, even though bitcoin is high, because you know if there is a dip, the DCA strategy will still allow you to accumulate bitcoin.

You are not really wrong in anything you say.. and I think that the main point is attempting to understand that there are advantages in knowing the difference in order to potentially take advantage of the differences and attempt to figure out whether you might want to vary your own application based on the options that are available to you.

For example, if you already have a formula that you are going to spend a certain percentage of your newly incoming discretionary income (for example 33% of your newly incoming money is going to be spent on buying bitcoin right away, 33% is going to be set aside for buying dips and 33% is going to be set aside for float and/or reserves - presuming your emergency fund is already in place), then whether you receive higher amounts of money or not is not really going to make a difference because you already have a system that you are following (and yeah, you can also vary your system too in order to account for things happening with the price, the size of your BTC stash and other things going on in your life that also might relate to the 9 individual factors).

Many times folks like to juxtapose ideas of lump sum investing versus DCA, so yeah, you could be a brand new investor and you have $50k that is already saved up in various investments, so if you tell yourself that you want to have 15% of your investment portfolio invested into bitcoin, then that may well mean taking $7,500 from your other investments and investing it into bitcoin.. which surely might be a kind of lump sum investing. and then maybe you wait 1-2 years and then decide what you are going to do.

Some people are really in the practice of lump sum investing, so then frequently when they do it, they try to time their lump sum investment for a price dip, so they end up employing a kind of hybrid tactic, and maybe they are not realy interested in a DCA way of investing.. but they are timing their lump sum buys with attempts to buy dips.. which may or may not end up working out as well for them..  but if they might have a deadline for themselves that they are investing their lump sum within a certain period of time or under certain conditions, then that might be the way that they think about investing into bitcoin.

I frequently like to give examples of lump sum investments to be a way that a guy might invest into bitcoin, and that at the same time he supplements with DCA investing - so yeah in those kinds of cases we might imagine a person who receives bonuses or some somewhat surprise quantities of money 2-3 times a year, and with those extra amounts that come in, there can come opportunities for creativity that could include any of the three strategies in terms of how to treat those extra amounts, so maybe his regular DCA is right around $100 per week, but if he gets $3k 2 or 3 times per year, he may well have flexibility in terms of which category to put the money and if he adds to his DCA, maybe he creates a buying on dip fund (if he does not have any buying on dip fund in place) and maybe he also might decide to lump sum buy some BTC right away when that money comes in with a portion of it, whether it is 1/4 of it? or maybe 1/3 of it, or maybe 1/2 of it or maybe some other amount that makes sense after he assessed various aspects of his finances/psychology and his 9 factors.

You seam to be making sense though but you way of explaining this approach looks contradictory but I can still get your point which explains about accumulation process, and that has been the topic of discussion right from the onset of this thread. Surely each individual must invest according to how it suits them in Oder not to invest aggressively. Because if anyone should rush to invest without making proper research, such person may rush to sell and will be left with nothing than regret.

I think there is a misconception here, there is never a place where Investor will only be buying when it's dip without considering DCA. The problem of this your post is that you are not directly reply anyone here otherwise I would have said that you are correcting any body but I will tell you that almost everyone in this thread knows that the the three investment approach is used by only one person and not specifically for different people. Though some people may decide to choose 1 of the strategy alone maybe either dip and HODL, DCA and lump sum. But surely if we want to maintain a good balance in this bitcoin investment, we need to apply all the strategy to be able to be advantageous and also being in a safer side. Once we have a discretion fund with us we can be able to use all the strategy to yield a better result, compeard to those who only concentrate on 1 approach which is not a good one. For example a person who usually buys Bitcoin when it's dip may always be confused when is the best time to buy the dip or a person who usually buy lump sum as well be confused of when to buy but a person that has a reserve fund and is applying all the method stand a better chance in btc accumulation and it's never borderd  when to buy.

That is what all the active participant in this thread has been saying all this while which is true maybe you are the one who has never understood it all this while. I believe with your explanation you have fully understood what the thread is talking about in best investment approach to use which is combining all together to yeald a better result.

You are correct. Dollar Cost Averaging method is always extremely easy solution for all class of people for Bitcoin investment. Historically, depositing fiat strategies in banks or insurance companies has been a long process, while bitcoin depositing strategies are much simpler. Whatever the dumping and pumping of Bitcoin's value is doing Dollar Cost Averaging which over a long period of time gives you more stacks than the price.Low accumulation strategy for normal investors may take longer to reach decent stash size but profits are high in long run.

I think everyone will be able to use this method whether they have large wealth or not, but this strategy will be very useful for some people who want to accumulate Bitcoin gradually and can hold it in the long term, when we want to hold it in the long term of course we have to have good planning before collecting Bitcoin and it will be difficult for us to hold it in the long term if we don't have good planning before collecting it will certainly not be able to hold the assets we have.

What you say is very true, when we can invest regularly using the DCA method, of course this will be able to control the average purchase and this can certainly provide profits according to what we want.

Yes this will usually be the best strategy for a poor holder, as not everyone may be in favor of investing with accumulated money. So that person can regularly participate in bitcoin investment with small amount of money which is the best strategy for him. You notice that investing in the DCA method is much more likely to be a maximum long-term investment, because the price of Bitcoin is not always dumping and not always pumping.  Therefore employing DCA method is maximum perfect according to Bitcoin price, and it controls the average price.

Bitcoin investment is not forcefully or rather the long term investment like 20-30 years is for a better profit at the end nothing else as related to forcing an investment like bitcoin because clearly seen bitcoin investment can’t work with such mindset. From my view investing $10 or $20 consistently can’t be an aggressive move because we can say an investor is forcing their accumulation by investing with a huge amount they can’t withstand during the long run but when an investor is comfortable with their accumulation gradually they’ll build a solid portfolio within the long run, well the reason why 20-30 years is okay for an investor who accumulate $10 every week is because they’ve not gotten something big within a short period so you can clearly see your accumulation process matters a lot. I agree when you mentioned about sufficiency but we can all agree the goal is making sure our investment is okay despite any obstacle. I love saying this words when it comes to bitcoin investment, a good plan always end with success meaning what ever you think will always be the end result, in summary if anyone has gotten to an old age I strongly believe such person have accumulated something good and profitable because surprisingly time flies fast except the person is  coming newly.

But in this case we also can't just fixate on the number at the end. It may be true that when we are and buy bitcoin for $10 or $20 for a week it will not be enough for us in the acquisition of bitcoin but if indeed we can only afford that price then it is not a problem as long as we consistently do it. It will be much more worth it than forcing to allocate more bitcoin purchases than that but instead make your economy shaken because you are too forced to be in bitcoin which in the end the DCA scheme that is done becomes chaotic in the end.

It's not about sufficiency in the end, It is indeed possible to be in bitcoin for most people to be at a point where we have a large enough supply of bitcoin so that it is easy for us and enough for the future but that does not mean we also have to force to invest more than we can do and with a duration of time that is actually not profitable because after all the duration of investment must also be seen from our current age when indeed we are at an older age such as in a few years we have entered the retirement phase for example it will actually be a ridiculous decision if we force investment for a duration of 20 years or more so that for the duration of time we also have to look at our own conditions in the end.

The problem is what if the dip did not come, it means that you will not invest in bitcoin, and tomorrow they will be regretting that they had the opportunity to invest but they did not. Those that are waiting for the dip as new investors are not ready to invest and I see it that they are only procrastinating. The reason why I said so is that, even when the dip comes they will not and will say that the price will dip the more since it could dip to the price they are seeing. Missing out a lot of buying opportunities that they should ha e used to invest.

DCA is very effective because you will also buy incase the dips comes and that is why it is good to use it when you are in your bitcoin accumulation phase, as long as you keep up with your regular buying weekly or monthly over a long period of time, your bitcoin size will keep on increasing.

Not only traders that time the dip, but also investors who have reached 50% of their bitcoin portfolio and above can use buying at the dip method. In such case they time the dip and buy with a lump sum to their portfolio. This is because if they use little amount to DCA, it might not have a significant effect on their bitcoin portfolio, since they already have a good size of bitcoin, waiting will not be a waste of time for them. This is why your bitcoin size and how much bitcoin you want and the time frame is what you look at before choosing the strategy that will best work for you. The most important thing is how you can accumulate bitcoin faster and reach your bitcoin target successfully.

These are different strategies in accumulating Bitcoin. Some investors use DCA strategy, others prefer buying the DIP strategy, while some DCA and also reserves funds to also buy during the DIP and some accumulate with lump-sum (Rich folks). All these approach are decisions made individually with what suits our bitcoin investment goals. Of all the strategies waiting to buy bitcoin during DIP alone without applying DCA strategy might slow your bitcoin investment growth because the price might not DIP to your desired levels and timing the market can be stressful. So why wait for the price to dip when you can be accumulating bitcoin through DCAing consistently to ensure steady accumulation, peradventure if it DIPs to your desired amount and you have extra bucks to buy fine but if it does not your accumulation through DCA continues to progress. DCAing can be done alone regardless of market fluctuations as long you keep it consistent but I don't see any need to wait for the DIP alone to accumulate bitcoin rather combining DCA with buy during DIPs can further enhance portfolio growth by taking advantage of lower prices when they occur.

Yeah it all boils down to the point @JayJuanGee made that when a person or an investor is accumulating Bitcoin using $10 or $20 on weekly basis or even $100 monthly that the investor may not actually have a sufficient amount of Bitcoin within a little number of years but that however the investors will need to least give themselves 20 to 30 years before achieving a good amount of Bitcoin, and that's actually true because irrespective of how consistent people are on there Bitcoin accumulation using the normal DCA method they would need to give themselves more longer years to be able to have the sufficient amount of Bitcoin they need. However if perhaps on the process and you feel that you have more money to invest you could adjust your accumulation amount to facilitate it a bit.

Making a clear point, in a simpler word "Dip does not present itself", implying we do not when price would Dip. That is the case, at times before we become aware that was the dip price, price has pump upward...when we think the dip price has occurred we can then see price dip more.

So it is a game of chance because it never presents itself.
In essence we just need to keep accumulating Bitcoin according to our suitable strategy building a solid Bitcoin portfolio rather than slowing the process because we are expecting dip prices, i believe any investor that is disciplined with his DCA strategy surely will buy the dip without his own notice because he is present at intervals of the Market.

Investing in Bitcoin is a very unique thing and what needs to be underlined here is that it has nothing to do with market prices where someone can immediately buy Bitcoin without wasting more time waiting for the price to fall. Because as long as the investment made is to hold Bitcoin in the long term by buying without any intention of selling again in the near future, I think this can be done immediately without having to wait for something else to happen, such as the price reduction option in the market.

Then why are there many people who are still waiting for the price of Bitcoin to fall by not buying before it happens? Well, in this case you also need to understand that they are not investors who want to invest in Bitcoin, but rather traders who are taking advantage of Bitcoin price conditions to achieve short-term profits. And there is no guarantee for them to keep Bitcoin in their wallets for a long period of time because their focus is not to keep Bitcoin for the long term but only to seek immediate profits after the price experiences a correction in the market.

I have been learning about Bitcoin for the past few months and am trying to figure out the best investing strategy for myself. As an experiment, I analyzed and compared two strategies, DCA and Buying the "Dip" and I have some interesting results that I wanted to share with you guys.
here

Disclaimer: This is not financial advice but for educational purposes only.

Period: Between April 2020 and April 2021.

Strategies:

DCA (weekly on Wednesday, bi-weekly on Wednesday, monthly on the 1st): Total $800/month
Buying the "Dip:" I define the "dip" here as when the price of Bitcoin drops to a certain threshold after its most recent all-time high (ATH). For all the periods that I am not investing, I am simply accumulating my USD. I am assuming that I will be able to add to my fund $500 twice a month, on the 15th and 30th. My investment fund will be divided into three parts and it will be invested as follow. I will invest 1/3 of my fund when BTC drops 20%, another 1/3 when BTC drops 50%, and the last 1/3 when BTC drops 65%. If for example, BTC drops 20% and bounces back to another ATH, I only use 1/3 of my investment and hold the 2/3 for the next dip.
To my surprise, all DCA strategies outperformed buying the "dip" by roughly 50%. Of course, hindsight is 20/20 and this is a very simplified model. No one can really time exactly when Bitcoin is going to drop. Invest smartly and only invest what you are willing to lose.

Even if it takes someone 20-30 years before owning a huge portfolio it's a good achievement inasmuch as they can be patient enough and make sure that they are consistent in their DCA. Sometimes the reason why people with low income finds it difficult to make investments is because they always draw conclusions about uncertainty that may come up along the line and their ability to endure till that interval of time. Every happy ending start with a little beginning so instead of not making accumulations at all it is better to start with an amount that will not affect you from attending to other life obligations then gradually they can achieve their goals.

Yes of a truth every one has different targets in their accumulating process because you may have a target of owning Bitcoin worth $1M while my own targets may be to own Bitcoin worth $5M so it depends on what each individual want because we can't keep accumulating till eternity, so far as we are able to strike a balance between making sure that keep accumulating till our targets are met and attending to other things of life then we are good to go.

This argument to me I don't really see that direction because almost all investor choose to lum sum when the price is in dip  only few investor can enter the market without minding the weather in dip or not we all know that investor tool are always center on the demand and supply laws or principle as there target even when they are accumulating for long term or short time is to make profit where to buy more, must not go off from their heart.

The truth remain that accumulating or buying of Bitcoin don't have specific time but every investor know what they want before entering into the market, the small dip can be enough to an investor who has made up mind to invest, in the investment or business profit making small fraction of market dip is enough to given you required profit, even when accumulating is not the same as trading but investor still seek to invest when there is a dip to enable them gain more when there is a rise.