Topic: Buy the DIP, and HODL! - page 154. (Read 131383 times)

Patience is habit, trait an investor will learn by himself which cannot be acquired as Knowledge concerning Bitcoin investment.  I know it's in the nature of Man to fret,give up, panic when there expectations isn't met.. such investor hasn't accepted the risk involved and also still lacks Discipline and not necessarily Patience (note am not undervaluing patience.. but Acceptance of Risk is what makes the difference and not being patient when you know you made the wrong move in the Bitcoin Market).

I don't understand your last paragraph; You saying a Bitcoiner should acquaint himself with the right knowledge that will guide him during the accumulation stages but it should come after he must have started making investments in Bitcoin is it that he should invest without any information first..? Then he can acquire the knowledge as he invests.
What are you implying?

I believe a newbie can learn overtime about Bitcoin Ecosystem as he invests in Bitcoin also can still acquire the necessary knowledge even before investing, but he shouldn't expect to learn everything before investing because it's waste of time,the knowledge can always be acquired along the line, but it doesn't mean he should be totally ignorant before risking his Money.

Actually when we talk about emotional. Whether we are involved in bitcoin or not will definitely happen because it is a natural trait that we have, but when we talk about bitcoin in this case, there is definitely emotion in it, it just depends on our control over that emotion.

Being emotional is a normal condition when talking about money, but that doesn't mean that because we are emotional, our actions are uncontrollable, because in this case we have to find a way to overcome this characteristic so that it is more controlled. When we are new to bitcoin then we will definitely try to check the price, maybe even almost every day like that, I say this because I have been in the same situation where even in 1 day I always check the price of bitcoin again and again because there is a a feeling that cannot be controlled because of the emotions we have, but as time goes by and when we can control these emotions I think it can be used as an experience where checking prices every day will actually make us troublesome because we cannot focus on the initial goal we want we do in collecting bitcoins.
So to minimize this, I reduced my activities in checking price issues because things like this cannot be stopped immediately, especially as I was a beginner and just learning about Bitcoin at that time and gradually we will be able to control those emotions when we really... really believe that the goal of investing in bitcoin is a good and right thing for us to do.

Everyone who is in bitcoin must have felt the same thing as I felt when we were new to bitcoin but precisely with that we have an experience where in the end things that at first could make us panic because of uncontrolled emotions can actually become as a weapon to make us stronger in bitcoin.

An incredible idea I have always embrace as well. Though, my problem with this strategy is also a general problem that I think majority of us have, and that is (Knowing the best time to get that perfect dip). You see, in as much as we've all been saying that there isn't perfect dip or whatsoever, but sincerely, you know that little regret you feel when you think you must have bought a dip too early. It's kind of funny, and at the same time annoying. The market dip can be around $59K when you choose to buy, but happens to drop down to $56K the following day, which shows how unpredictable the price movement can be. But regardless of whether we all get the chance to buy a dip at $59K or $56K, I think combining this strategy together with the DCA method is a good strategy indeed.


I think we've discussed something like this before. All these things are just the basic things that anyone can learn at any time, so it's not necessarily to make them a priority while going for Bitcoin investment. There is literally no technically in this, so a day is okay, which makes it not a big deal at all.


And again, thanks for bringing this up as I just remembered something interesting.
There are clearly so many people that might not even have any idea of what Bitcoin investment is, or the strategies that can be put in place to accumulate some Bitcoin, so I think it would be difficult for certain people to just figure out some of these things listed above all by themselves. I think, this is where they will have to starting asking questions, or better still, making research on how to go about it, which is the first approach ofr step towards Bitcoin investment. Your points are indeed valid. Emergency funds as you've pointed out is very important, which not so many people using the DCA strategy might be aware of, but thanks to those people who have been bringing it up continually on this thread.

Since the concept of this thread is not talking about how to buy and sell but how to buy and hodl I think it would have been real if your sentence was before learning how to buy and hodl since there are also newbies here or new investors before they will believe that it is all about buying and selling here which can be problematic and misleading to newbies that Bitcoin investment is all about buying and selling instead of buying and hodling for longer period of time between 4-10 and above using the DCA strategy to accumulate Bitcoin irrespective of the price level either weekly or monthly.

If not for high transactions fees I see no reason why you should buy and accumulate Bitcoin in an exchange because it can become vulnerable to hacks, we should know that exchanges is not the best place to store our Bitcoin no matter how little it is because the security of our Bitcoin should be taken at utmost priority. I know that $500 may not appear too big for you but to some people it is especially when they think of the amount in Fiat they used to buy such quantity of Bitcoin so there is no amount that is too small to lose but as for me, so far as I have long term hodling targets, i will prefer to move my Bitcoins to self custodial wallets immediately after making the purchase. Exchanges are risky to keep one's bitcoin and leave till you have accumulated enough, don't forget that there were previous cases of exchanges crashing and a lot of people that had assets in those exchanges lost everything so we ought to give our assets maximum protection which is to seek for self custody wallets even though the asset may be very little, it's better to lose part of your assets as transaction fees than lose everything to exchange platforms.

You have said well but there is also something I want you to understand, as a newbie to Bitcoin investment, learning about a secured wallet when you have not yet buy any Bitcoin is not a good move, the important thing is buy the Bitcoin first before any other thing, while waiting to know a good and reputable wallet to hold your Bitcoin you might have missed some good opportunities that won't come back again. Now let's say you wanted to buy $200 worth of Bitcoin, and you are still waiting because you are contemplating about a more secured wallet, you might miss the dip (if you are also the type that want to buy during dip period) and you might still end up not buying at all because you haven't seen any wallet that's suitable for you. Am only saying that you should buy first before making any other move that's why buying is the most important knowledge a new Bitcoin investor needs to know.
You are still getting it wrong, as a new Bitcoin investor you don't need to sell yet because you haven't achieved anything (unless you are not investing for long term).
Long term investment is the goal and a new Bitcoin investor who has applied DCA method should not think of selling his/her Bitcoin anytime soon because holding BTC for long term is not about sell and buying again (only traders does that), you only need to buy, buy and buy until 5 or 10 years of investment. Dipping your hands into your investment won't profit you anything rather it will make you not achieve a good portfolio.

I don't think that a new investor into bitcoin should care about how to sell his bitcoin because it is useless to him since he is only focus on accumulating bitcoin for a very long term since he has made up his mind to hodli for a long time. The first thing a new investor needs to figure out is how much from his discretionary income that he will use to buy bitcoin at the beginning that will not affect his regular buying weekly or monthly using DCA strategy. He also needs to know how much he will use to start building his emergency funds of 3-6 months that will be able to survive his bitcoin investment portfolio for the duration of time he plans to reach his bitcoin target. Discretionary income is the most important because it is from there that he will use to buy his bitcoin regularly and grow his emergency funds, reserve funds.

Exchange is the first place a new investor needs to store his bitcoin in the beginning because it is from exchange that he will buy his bitcoin from and because he is new in bitcoin and have the money to start buying immediately, he will leave his coins in an exchange and gradually when his bitcoin size is increasing due to regular DCA purchases, he can learn on which wallet that he can use to keep his bitcoin safe. You should also know that since he is a new investor and getting started immediately is the best no matter how little the amount is, he needs to pile up his bitcoin in an exchange so that it can get up to $500 and above before he can send it to his self custody wallet that is best for him.

The fact is that whoever is DCAing do not have any option than to keep your coins in an exchange for it to be a big amount before transferring it to your wallet so that in future, your small inputs will not be a barrier to your profit. Also when bitcoin transaction fee is high, will you transfer $100 worth of bitcoin that you bought this week to your wallet, it will not be a wise decision and that is why at that period of time, you will leave your coins in an exchange for it to pile up to a good amount.

There is no problem leaving your coins in an exchange for just a month but it is when you turn the exchange to your permanent bank that is the problem.

Depending on the approach one choses, waiting can actually be a strategy too and never a bad thing. For instance, someone using a combine DCA with buying the dip can continue buying through the DCA with the amount budgeted for that while setting aside the amount for buying the dip and wait for the dip to actually happen, knowing that it will surely happen because price does not continue in one direction forever.

We don't have to make it look as if we are under pressure to enter the market because even the DCA also is a waiting process because you are buying in piece of what you budgeted to be invested in bitcoin, you don't put all the money at once but in small quantity and regularly. In other words, assuming you want to invest $10k into bitcoin in the next six months and you have the money now, as long as you have chosen to use the DCA strategy, it means you have to invest gradually while keeping the other parts till the time for the next buy. This is a kind of waiting.

People wait in different ways, some set limit orders while some use market execution when price get to their preferred entry point. The important thing is one must know what he is waiting for and act accordingly as long as the overall objective is to invest and hold.

Your forgot to mention 'patience' because it is also one of the criteria that will enable you to be able to withstand the tough times when you feel like giving up due to some unforseen events that might occur in the future. Yes, as a beginner you shouldn't wait to acquire all the necessary knowledge before you start investing in Bitcoin because you may not actually understand the dynamics of investment until you have invested then you can seek the complete knowledge gradually however, a beginner should not only depend on the information they hear or come across online or just follow people that feels they are experts as there is need to DYOR so that you can have a backup with the information gotten from other people or sources. It is also good to know that investments are risky, therefore acquaint yourself with the right knowledge that will guide you through your accumulating stages but that should come after you must have started making your investments in Bitcoin.

What you have explained fall into the category of basic knowledge. They are basic because they are the minimum requirement before starting to accumulate Bitcoin and without them, it is not advisable to get started. The information about wallet is not complex to get and like you said, it has ben abundantly emphasized that "not your keys, not your coins". Any newbie investor in this forum should have already known that and put that as a factor of consideration in the search of his basic knowledge. I think this just as simple as saying, before you own a bank account, you have to ask questions how to protect your account by not sharing secret information. After a newbie understand how to buy and sell, common sense require that protection of the asset is the key thing.

If we continue to make it look complicated as regarding the basic knowledge required to get started, newbies following this discussion might never ever get started because they will be thinking they have to learn all there is to know about bitcoin before they get started. Remember that the technology itself is developing, new things are coming and surely there will be more improvement in security and wallets. When those improvements arrives, we will still see how to adopt them but for now, it does not require much to know what wallet to use and how to get started with investing in bitcoin already.

For me, it's simple, if there are people who are delaying buying Bitcoin or just waiting for the price to drop to buy it, for me these people have no intention of investing in Bitcoin. it's better to just leave them with their assumptions. and for those who are consistent with their investment and entrust their investment to bitcoin, continue to accumulate your bitcoin, because the journey will be very long, and if you talk about long-term targets, you need stable finances and patience to continue accumulating, therefore the DCA strategy will be very helps with the investment you are carrying out, this strategy does not care about market conditions, DCA only focuses on the goal of accumulating gradually, either weekly or monthly. and I still use the DCA strategy to this day to accumulate my targeted bitcoin and it really helps

Not quite
In Engineering there's a saying in my side that before learning how to switch ON a machine learn how to switch it Off first
There are people, I mean lots of people that can buy and sell Bitcoin but few of the majority can really secure their holdings
Like we normally say if it ain't your keys, it ain't your coins.
What am saying is even if you can buy and sell Bitcoin with no prior knowledge on how to secure it
Good wallets to use among other security measures
It's the same as placing your money in an empty pockets
The importance of security is quite underrated
Personally I feel a newbie should learn about a secure wallet and method to implement
Before learning how to buy or sell.

If they look at the price as a whole then they might really think that bitcoin price is expensive. But if they would look at the volume they possibly can accumulate depends on the amount they are willing to use then with that they could able to think that bitcoin is reachable and they can accumulate at anytime they want. But usually those people think about that is a complete newbie and its understandable on why they think about that. Then much better to correct all their misconceptions and guide them on proper information since for sure that once they learn about DCA and how properly used it then provably that there would be no expensive price they would ever thin and people will continue to accumulate to increase their portfolio then earn competitive figures in future by doing long term hodl on Bitcoin.

DCA is a strategy is really the most ideal strategy to use since all people could do it without getting any much bigger issues..

I agree with you that there are some level that our bitcoin stash would have reached that DCA strategy might not be the best way to increase one bitcoin investment portfolio. In some situations whereby an investor have accumulated a lot of bitcoin but have not reach his bitcoin target he might decide not to DCA anymore but lump sum and use buy at the dip to accumulate more bitcoin to his portfolio. Example is Michael Saylor that buys bitcoin through lump sum because he does not care about regular purchase maybe it will be stressful to him.

Like you said hodli is another way to increase your bitcoin investment portfolio when you are in your maintenance stage because the more time passes by the value of bitcoin increase and your bitcoin portfolio will also increase simultaneously with the price of bitcoin. This is why hodli for a very longer time is more beneficial and has the possibility of giver your more profits.

DCA is very good as a new beginner who has the zeal to accumulate enough Bitcoin overtime jud like Nayib Bukele who started the purch of bitcoin in 2021 using DCA method and even when the price of bitcoin dip to $19000, no matter the loss in the country bitcoin portfolio he continued buying at the dip without listening to fake advice and distraction from the media and the so called expert and currently El Salvador bitcoin portfolio is in huge profit. Bukele did not stop there he is still buying and said he will stop buying when his fiat currency can no longer buy bitcoin. Being flexible to the market and tweaking to various buying strategies is good and different level of your bitcoin accumulation phase.

Well, your points are not actually bad but the most important knowledge that a new Bitcoin investor needs before applying security to his holdings is how to buy. If an investor knows how to buy he can also know how to secure his Bitcoin, at that moment he believes that it is his asset because he exchanged his fiat for Bitcoin through p2p, at this first point when he has purchased Bitcoin he doesn't care if he has make profits or not, the next step is for him to send the Bitcoin to the wallet he will use for holding. Which means after buying, the other important step is sending.
As a newbie to Bitcoin investment, you also need to calculate the figures of Bitcoin you have, so that while sending from the exchange you bought Bitcoin from to the wallet that you will use for holding you can be able to figure out the fees for your transactions so that you will know the figures of Bitcoin that you will receive.
However, after sending the next steps is how to secure your assets, this is also one of the important part while investing, you should be able to know how to secure your Bitcoin.
IMO, while apply DCA method on your Bitcoin investment and you are going for long term, you don't need to depend on any advice from anyone, just work, get paid and invest.

Not only new investors but also many experienced or old investors are now increasing their investments by adopting DCA regularly.

Dollar cost averaging is a progressive and balanced investment strategy. One of our goals in investing in this way is to lower the average cost and even aim for better returns over the long term. Those who have sufficient capacity may not invest in this method, but those who do not have sufficient capacity and even if they are willing to invest, if they invest using this method, it becomes easier for them to invest. Because by adopting this method you will be able to invest even in small scale. Buy Bitcoins with the same amount of money every week or month using DCA regardless of whether the price of Bitcoin goes up or down. I read in the pages of the book that small grains of sand form continents. Similarly, if you invest in the dollar cost averaging method, your small investment will eventually turn into a large one.

That is true everything boils down the number of bitcoin stashes on has on his portfolio, because you can`t compare someone that has $100k so someone that have $50k  on their portfolio, is the fact that the one with higher bitcoin stashes will endup with more profit during the surges of prices, so what am trying to say is that we should erase that mindset of selling our coin (bitcoin) early, and focus more on accumulating more till you have gotten to point of having enough bitcoin , before thinking of taken profit from your investment.

the reason why most people endup messing up their investment is due to poor planning and also poor management of emotions. most folks aall they can take about is how they will get rich quick , which may lead them going all in like is a form of gambling, without making a proper planning like having an emergency funds so that won`t endup seeing your investment as your emergency funds.

You have forgotten to add the knowledge of how to buy from exchanges be it Dex or cex. This is also one of the basic knowledge that a new investor need to know because you will need to know how to deposit and convert your local currency into usdt in exchanges or how to buy from P2P in exchanges. Everything else you said above is valid, as I was reading through your post I just saw that you didn't cover this aspect. Buying bitcoin for the first time is a very delicate something and someone who is new really have to get the basic knowledge of how to navigate the exchanges to make his first buy. As it is not advisable to be buying through a third party, so a new investor should have the knowledge of how to use the exchanges.

People who still think Bitcoin is expensive usually also tend to be afraid to buy at any price, so people like that will continue to delay and postpone buying Bitcoin because they always put forward their own reasons when asked by other people. Because for those who like to buy or really have the desire to buy Bitcoin whenever they have money that is not used, that person will not really care about the price as long as it can make him happy after buying Bitcoin. I also still like to use DCA when I want to buy Bitcoin, but sometimes I don't set a time for how many times I can buy Bitcoin each month because I sometimes like to buy when I have money that I don't use for other things.

Friends and neighbors success are one of the biggest influencer
But still everybody can not like you
Same applies with Bitcoin
It's not really easy for people to change from what they have been indoctrinated into believing
Been open minded is one way to explore opportunities
Unfortunately or fortunately not everybody is
Everything that made quite a stir and changes in history were always considered risky in their early phase

In a nutshell, Success speaks for itself.