Topic: Buy the DIP, and HODL! - page 148. (Read 122171 times)

You can be successful investing with only DCA strategies, but there are other things you need to keep in mind. As such, you need to have a good plan of how you will make your investment long-term. According to the plan you need to maintain someone, in this case you need to list the most important time when the bitcoin market goes deep.



Whenever you pool your income and meet your family's basic needs, you can invest in Bitcoin with the extra money you have left over. Maybe many people have a habit of spending extra money but if that person takes the trouble to get rid of the extra habits and save the money and buy bitcoin dip then success will be guaranteed. Because one of the strategies for long-term investing is the DCA method. 
Using the DCA approach to investing will certainly make your investments look natural for a few years, and you can increase your planning for longer periods.

You're making this more complex than the difference in view of the two parties here. If I should summarise what was the major misunderstanding, it's that one of them wants to lump sum at a DIP price while the other want to lump sum the moment the fund is available. The issue with Lump summing at the DIP price is that you don't know which price is the DIP and you don't know how long you have to wait before it gets to that price and you also don't know if the price you're considering as a DIP target will eventually come or not. And another thing is that if the amount you're using to lump sum isn't all that much and is probably up to only $500 to $1k, it wouldn't make much difference to buy Bitcoin at $67k or wait for six months expecting it to DIP to $40k only to see Bitcoin price climbing up to $80k plus. That's where @Agbamonie missed out in his analysis

the main reason why it would take you too long to reach your accumilation point in your Bitcoin investment is when you're going about your accumilation in a nonchalant way and using only the fund that's not of use to you for your accumilation. I know that it's right to make the required plan that will see to it that you're not over investing above your financial capacity but mere investing with only left over cash wouldn't help increase the quantity of your Bitcoin reserve. It's best to be disciplined enough to separate your funds into different percentages such that you have a particular percentage that's allocated to Bitcoin and another that takes care of other aspect of your life so you don't treat your Bitcoin investments as your last option. Remember that for most people, if you don't do the necessary planning, you wouldn't have anything like left over cash because human wants generally is insatiable and the best you should do is to do a scale of preference and still allocate an amount that will directly go into any of the options once you've received your pay check.

DCA is a strategy for investing in which you can invest consistently every day, you can invest consistently every hour, you can invest consistently every month or every week. If you think you will invest 10 dollars every day then at the end of the week your investment amount will be 70 dollars and at the end of the month your investment amount will be 300 dollars. I used to know that investing earlier means we need to accumulate a lot of money before we invest but this strategy of investing has changed our entire thinking of investing and made investing much easier. In this investment strategy investors can easily invest from any income or from any profession. I think every investor is satisfied with this investment strategy.

Of course Tmoonz is right with his ideas but since we disagree to agree here I will like to buttress and point out so fact that must have amounted to confusion of the other party.

Let's say for instance: We've got three major strategies for bitcoin investment which is DCA, Buying the dips and Lump sum. I believe sometimes this strategies do have some collision which is where agbamoni might be getting is wrong but this collision literally doesn't show up frequently.

Here is the instance; Using my Churchillvv as the case study,

Point A Churchillvv(1) usually practice the DCA method of investing hence does not care what the price is (volatility) as his intention must be for long term investment.

Point B Churchillvv(2), Also practice the buy the dips and he does care what the price is and tries to maximise profit by buying only when the price is low.

Point C Churchillvv(3) Also practice the Limb sum method of buying bitcoin, at this point he does not also care what the price is but because there is an extra cash flow he decides to go in at once.

Having identify this three points, the rare collision happens where, Churchillvv usually buys the dips but for some reason during this purchase he gets an extra cash follow which is not certain then decides to push in all the extra cash into his bitcoin investment, note at this same point bitcoin price is relatively low which also means the dips. At this point where he buys both the dips and also buys bitcoin using his extra cash flow which is expect in this instance to be huge to buy bitcoin it is now in a state of collision as both strategies occurred at this same time. which I see as the area where Agbamoni might be looking at but the fact is they (the three strategies) are different things all together.

So to put you Agbamoni in the right direction, lump sum means buying bitcoin only when you have a huge amount and decide ms to invest regardless of the current bitcoin price. This practice is more applicable when you usually get your money once in a while. But buying the dips means even if you have the money now and BTC price is relatively high you would rather wait even if it takes 365 days to reach your relatively low price before you purchase. Note the time differences

Bitcoin accumulation have to do with left over cash flow and at that not having sufficient steady monthly or weekly set aside founds let say $10 or even $20 which is way too much time to come up with a significant amount of bitcoin starsh, but then just as you said, sometimes we come across unexpected huge sum and if we are able to put all down on bitcoin it could cover up for a long period of time and a journey that surpose to take 10 years to 20 years could come much faster and easier.


The fact and most important thing is to have the determination to keep accumulating bitcoin along the lines and doing all that is possible to come up with an amount that can be valuable enough to generate good profits when the all time high happens.

I will suggest that if a person is merely buying anywhere between $10 per week/month and $100 per week/month is likely going to need way more than 10 years in order to get to a status of having had accumulated a sufficient amount of bitcoin.  Perhaps such a person will need 20-30 years or  more to really get to a decent place with his/her bitcoin stash.

For sure, each of us has differing expectations in regards to how much income that we might need to be able to live comfortably, whether we use bitcoin proceeds to completely replace any income that we have or to supplement income that we might have from other sources.


Tmoonz has the right idea.

The mere fact that you have extra money that you are holding aside to buy the dip does not convert that into lump sum, merely because the amount might be larger than your normal buys.

The three main strategies in accumulating bitcoin is DCA, buy the dip and lump sum.  Sure you can combine these strategies and even front load your investment by buying more in the beginning, yet if you really want to attempt to apply strategies in differing ways, sometimes there may well be advantages to understanding the difference between the practices in order to take advantage of such differences, and yeah, whether you know the advantages and disadvantages or not, you can do whatever you like and call it whatever you like, even though you might cause confusion when you are not able to differentiate between what is buying the dip and what is lump sum and what is DCA.


You only advantage from holding money aside to buy the dip if the BTC price actually dips. So how could you always advantage from buying the dip if the BTC price does not end up dipping?

I think that another valid point that Chiomaobi was making is that some of the newbies that he knows get so caught up in terms of strategizing whether or not to buy the dip and what is a dip and all that bullshit, so they put themselves into more of a waiting rather than an acting kind of mindset (and practices), so many times it may well end up being a lot better to just act and to continue to buy BTC, even if your average cost per BTC might be higher .. .. and in that regard, you stay in a buying mindset rather than a waiting mindset.. and yeah, sure there could be circumstances in which the waiter will actually get more advantages and end up buying more BTC than the one who regularly buys BTC, but really?  does it make a difference, and maybe it is better to just continue to buy until you get to a certain level of BTC accumulation and then thereafter (when you have accumulated a decent amount of BTC) begin to strategize about buying dips rather than just buying regularly, persistently and consistently in your earlier BTC accumulation stages.

Sure in the end, guys can do whatever they like in terms of figuring out the extent they might be advantaged by holding some money aside to buy dips or just to buy BTC regularly no matter the price.


Yes... I said something similar.. but yeah.. that sounds like the right idea to consider advantages and disadvantages of various strategies, and surely some strategies will be better or worse for guys, yet each of us has to decide for ourselves in regards to which strategies to use and to live with the consequences of whichever choices we make in regards to our strategies.

Surely there are some folks who rarely get opportunities to lump sum buy bitcoin (or any other investment), yet sometimes if a person is engaged in good cashflow management practices, s/he might be able to advantage from situations that he had not previously thought were available to him.. which is one of the advantages of already have a plan and practice in place, when opportunities (of extra money) come, the plan and practice is already in place to be able to take advantage of the opportunity rather than spending the extra money on potentially frivolous and unnecessary things that may well not have as many longer term advantages as compared to investing into bitcoin.

I clearly understand Agbamoni point and it’s so simple if an investor can accumulate using the lump sum strategy during the dip, this is the time an investor can accumulate more according to their strength in order to build their portfolio faster, then after accumulating with huge amount the investor can continue using the dca. We can only say buying bitcoin has no time set like when people specify buying only the dip but we cannot say same for the lump sum strategy, from my view anyone can venture using their desired strategy but basically while accumulating bitcoin using the dca strategy now it’s also good an investor save some money so at the appropriate time the investor can use the money to accumulate more during the dip.

Your friend s using the wrong approach by stopping his DCA and wait for the dip. The reason why new beginners or investors who are in their accumulating stage should not stop accumulating is because the price of bitcoin waits for no man and as the days is passing by, no one knows what will be the next price of bitcoin. So consistent and persistent buying gives you an opportunity to buy bitcoin at various price and increase your bitcoin portfolio overtime, maybe 4-10 years so that you can have a good quantity bitcoin in position for the future. What is worth doing is worth doing well.

If you are DCAing and you stop, feeling that the dip is coming, this is how your bitcoin portfolio will be stagnant, amd what if the dip did not come for a year, you will not buy bitcoin. It means that person does not understand how to go about his bitcoin journey in order for him to be successful. The seize of your portfolio is what will determine your profit overtime. It is good to forget about buying at the dip if it will distract you from your regular DCA accumulating way. Increasing your bitcoin size is the focus and that can be done gradually with DCA before you know it, after 4 years you will be surprised at how many bitcoin you have acquired. Waiting kills the opportunity of increasing your bitcoin portfolio.

Of course the amount of money invested will definitely determine who have more stash irrespective of the approach used for the investment. But the person who invested in all market situation which is the DCA method has some form of advantage, as he has derived more utility from his money and  has limited his level of loss impact should there be a sharp dip in the market. But if we look at the situation from the angle that both investors has same amount of money to invest, the person who by at all market situation will definitely has more stash then the investor who buys at the dip.
Moreover the dip level is not even predetermined for us to actually calculate it. So since it is this way, we will always consider the person who has bitcoin as someone who has more bitcoin than the other person. So far as he is still waiting for the dip to buy we won't consider him/her as an investor or someone who owns bitcoin because no purchase has been made yet, so until he make his first purchase before it can be determined between him and the other person who always buy at all market conditions who has more stash of bitcoin.

Both of you can be wrong somehow because there is no certainty in either of the scenarios described. Someone using the DCA method only will not always have more Bitcoin neither will someone using a combined DCA method and buying the dips, it is always depend on the market condition and the interval of time the assessment is made. Let us assume both investors A a B have $10k to inject in Bitcoin within one year or a couple of months. Investor A decided to use the DCA method only and divided the funds into equal parts to suit the duration. While invest B decide to invest 50% through the DCA and the remaining 50% via buying the dips. What will determine the outcome of both investment is generally the market condition.

• If the market is continuously bearish, there are higher chances that investor B that uses the combined method would not have invested all the funds within that duration because he will invest part when it dips, thereafter keep some parts for further dips and will always have some parts not yet invested as the market continue to declined and if by chance he chose a limit and invested all the funds and the mark continue further down, investor A that put bigger amount in DCA method will get more Bitcoin at lower prices.
• If the market is continuously bullish, it is even worse because investor B that is using the combine method will not invest much of the funds since he might be waiting for dips whil the market continue to climb. Meanwhile investor A that uses the DCA only will continue to buy as the market continues until all the funds are invested within the duration
• If there is a transitional market in which market moves from bullish to bearish or vice versa, then it becomes a kind of obvious that investor B that uses a combined method might succeed in getting more Bitcoin that investor A that use only the DCA method.

Above are the reason I said both of you can be wrong because there is never certainty in the positions both of you have taken in that discussion.

It is very problematic to argue the terms of lump sum buying and buying on dips as both strategies has their unique functionalities with meaningful differences such that you can not refer any kind of buying the dip as a lump sum simply because you are buying with a larger amount of money more than your usual, the idea of the lump sum buying has to do with an investor decision in terms of investing a huge amount of money that is readily available for investment and decided to invest this money right away such that it has nothing to or necessarily connected with whether or not there is a dip but rather it has more to do with your personal decision, the lump sum strategy are unique on its own such that at some time it is use as an upfront or front loading investment strategy.

@Mayor of Ogba you are right,  Those who invest and accumulate through DCAing are only present in every market situation, accumulating at intervals but in a simpler sense that does not guarantee the amount of Bitcoin to be accumulated would be greater as it dwells upon the amount invested. Those who wait for dip already have allocated money and yet still accumulating with DCA which means they have an edge above others because they can buy more during a dip which does not reveal itself and also DCAing if we are to consider who have more stash it would be the one that DCA and also bought at the dip price.


As I earlier said, the Stash of Bitcoin in holding does not rely on one DCAing, lump summing, buying at the dip but the Amount of Money invested.

I disagree with your statement because those investors who are accumulating bitcoin with the DCA strategy and also buying the dip will always accumulate more bitcoin than the investors who are only using the DCA strategy to accumulate bitcoin. Just because they are waiting for the dip doesn't mean they will stop accumulating bitcoin with the DCA strategy; they will continue to accumulate bitcoin with the DCA strategy. They have already kept the money to use to buy the dip; they are just waiting for the dip to happen so they can buy bitcoin at a low price. 

Bro you are wrong here and you tend to sound like you are right. Lump sum still involves buying the dip, it depends on the investor whether he chooses to Lump sum at any time without minding the price of the market or he may choose to Lump sum during the dip. And it is true that the best time to Lump sum is during the dip and then DCA through any market interval. In my own opinion this is the right approach to follow an investment. If there are extra buck that comes in along our investment, we can choose to wait for the dip then and when it comes, we Lump sum as well.

The concepts or idea of the lump sum completely has nothing to be talked about in terms of buying the dip, the idea of the lump sum buying has to do with making purchase of Bitcoin with the huge sum that is readily available to be invested right away without considering whether the market condition is in dip or not.

Well said and I think the whole issue starts with deciding what a dip is. Nobody knows what a dip is until it is too late. Sure if Bitcoin goes down all the way to $30k now, that is probably called a dip. But if it does then I think those who were waiting for a dip might be so afraid of the recent price development that they are now uncertain whether this drop has come to an end or whether we go down to $10k. If someone defines 10% as a dip, ok then stick with it and leave some money aside and make the purchase if those 10% are reached at a certain point in time. If it is not reached by say one month from now, they can still use the money they put aside and use it for an increased DCA investment for the weeks or months to come.

But all of this goes back to having a strategy and while some set one up, only a minority sticks to it. That's why I think a rigorous DCA strategy works best for most and if unexpected additional income occurs, the money can still be used for some degree of freedom.

Dollar Cost Averaging is an investment strategy where you are able to buy and invest in small chunks of Bitcoin in hopes of averaging down the price. The dollar cost averaging approach to investing in Bitcoin can be handy if you don't have a lot of cash to invest.

Everyone has an investment aim to invest in dollar cost averaging method. One is able to continue their investment for 5 years, 4 years and 10 years. One thing is true that the longer you invest in the DCA method the more you can earn because the longer you invest the more bitcoins you accumulate. Before investing in this method check carefully whether you will invest on monthly basis or weekly basis. Because proper planning is more important in investment. Many investors are not able to continue investing for long because they do not have a proper investment plan. So invest in such a way that you buy bitcoins with the same amount on weekly or monthly basis and keep it for investment.

Buy when there's a chance to do it when bitcoin is experiencing a dip. But if not then investors should continue to make their accumulations plan to happen and don't entertain any negative disturbance that can distract them for what they are doing. And yeah this incident doesn't always happen so it will be so bad to wait for that to happen if the market is experiencing a good run. For sure in that case they get afraid to accumulate since their concern again is the price of bitcoin is much expensive for them to acquire. They should think that if they accumulate whatever figures the market showing to them for sure there's no statement that bitcoin price is expensive and they afraid for a dump. That's why take action and utilize everything they could use so that they succeed on their investment on bitcoin and they will not going into something bad that they might regret later on.

The dip is characterized by a noticeable decline or fall in price of an asset which could either take place within a short or long period of time, a dip can be sudden it can as well take a long time which is not as considerably 2 years as you imply. Yeah waiting for a dip before making purchase can be a very wrong approach especially for a newbie that is meant to be accumulating Bitcoin without having anything to do with the market condition. However, combination of strategies can be good with a proper planning such that any one that is already accumulating Bitcoin with dca can as well buy the dip if it has been well figured out such that it will not affect your consistent dca and your various aspects  living expenses, as buying the dip give the opportunity of buying more quantity of Bitcoin with the same amount of money as when compared with buying from it previous high.

You are contradicting yourself and you don't fully understand what it means by DCA and buying at the dip.

The reality is that any investor that is accumulating bitcoin using DCA method to buy regularly weekly or monthly non stop, and he has built his emergency funds for 3-6 months and also have reserve funds, can also include buying at the dip to his budget should incase bitcoin price dips, but that does not mean that he is waiting for the price of bitcoin to dip before he buys, but he buys always with DCA.

DCA means using an amount maybe $10, $50, $100 or from your discretionary income based on your own case to buy bitcoin regularly weekly or monthly without skipping any one for 4-10 years. While buying at the dip is when an investor keeps his money in fiat and everyday, he is busy watching the chart and bitcoin price hoping to see a dip for him to be able to buy. The annoying thing with these set of investors who do not have enough Bitcoin and is waiting for the dip, always have their own price in which the want bitcoin to fall to be they will buy. So e of them will end up waiting till infinity without buying one Satoshi.

So there is nothing bad there if in your bitcoin journey, after two years or three when you have confidence in bitcoin and you have understand your cash inflow, which may/not have increased, you plan for the DOWNity and UPity of bitcoin price. However, a new beginner like you chiomaobi should only focus on using the DCA method to accumulate bitcoin in a long-term 4-10 years and above. Also don't forget that your emergency funds is very important for you to be able to keep accumulating more bitcoin weekly or monthly and hodli for long, if not you might sell of when it is not the right time due to unexpected emergency.