Buying bitcoin is easy, but consistency is the best thing to achieve the perfect level throughout the accumulation we do.
I doubt that we will ever completely achieve perfection, so frequently, we have to just try the best that we can and hope that we are setting up systems and regularity in our buying in order to feel a sufficient amount of balance in our various cash balances that we may well maintain as we are trying to invest each week or so.
Sometimes I think about my own journey in light of how long it takes other guys to accumulate bitcoin, and surely my own advantage came from having had invested for around 20 years in various other investments when I came to bitcoin.
In the very beginning in late 2013, I did not completely know my exact BTC accumulation target, but I largely took money from some of my other investments in order to establish a 6-month budget, and the amount of my budget was beyond what I could have bought through my normal cashflows.. I tried to take the money for the 6-month budget from the part of my various aspects of my investment portfolio that I speculated would be the least disruptive but still give me the allowance that I wanted to have for the 6 months, and so it was like I found funds in order that I kind of had a lump sum amount that I was able to allocate the total, and then to divide that total by 26, so I knew pretty exactly how much my weekly budget was going to be for each of those upcoming 26 weeks, and so I tried to strategize within each week about when to buy the bitcoin, yet if I had not spent the whole authorized amount by the end of the week, then I just bought at whatever the BTC price was at that end of the week deadline.
I continued to study bitcoin through those whole first six months, and so by the time it was getting close to the end of the 6 month period, I was trying to assess where I was at and where I though that I would be, and I still was not completely sure about what to do, yet I thought that my first six months of budgeting had worked out fairly reasonably, and so by the time that I got to late in my 4th month and/or early in my 5th month, I had already authorized another pretty much equal level of budget that I would apply for the subsequent 6 months, and so by the time I finished both of those budgets, I had spent a whole year investing into bitcoin with a weekly budget that was several times higher than what my total salary would have had been, and really I still was not exactly sure about what I was trying to achieve beyond the fact that I had authorized myself for a whole year to buy bitcoin and I had established myself with a budget for doing that, and so when the whole year was coming to a close, I had to reassess where I was at.. and whether I felt that I had invested enough into bitcoin or not.. especially since I had been investing at a rate that was purposefully above my usual income rate of investing. At the end of 2014, I had largely concluded that I had reached right around 10% of my total quasi-liquid investment portfolio was in bitcoin, an I tentatively conclude that was going to be enough.
Part of my problem, and part of the reason that I ended up reaching overaccumulation was not even "on-purpose," since I did not even intend to overinvest into bitcoin, yet part of my problem was that at the end of 2014, BTC prices had been going down the whole period of my investment and through 2014, so largely by the time we got to the end of 2014, my BTC holdings were right around (perhaps slightly above) 50% in the negative (which were BTC prices around the upper $300s, but my costs per BTC were slightly less than $600 per BTC), and so even though I concluded that I had invested enough into bitcoin, I really could not resist continuing to buy bitcoin, because through out 2015 the BTC price bounced a lot between $200 and $300, yet it was mostly below $250 and probably more in the ballpark of $230 for most of the year, even though we can look back at the charts and see that it moved up and down within the range and even had a false start to $317-ish in July before correcting back down below $230-ish again...
My cashflow somewhat sucked throughout the total of 2015, and people were telling me to sell some bitcoin, and I even had a business rental arrangement that I requested to defer paying the rent for two months, which was granted to me, and helped me with my cashflow... and surely there were periods that I could not buy bitcoin, even though the best BTC prices were during that time, and I think that what ended up happening is that I had increased my BTC stash by right around 25%-ish through the whole year (depending on how it is calculated in terms of my own determinations), and so in spite of my various assessments that I had feelings of financial struggles in 2015, I was still able to increase my BTC stash, yet when it came to the end of 2015 - maybe getting into September, I started to come to the conclusion that my overaccumulation level was right around 3.5%, since I looked at my various aims of where I wanted to be and then where I had gotten, and I largely concluded that my BTC accumulation target (and attempt at maintenance) should be 10%, so since I had accumulated more BTC throughout 2015 even while on a struggling budget, I concluded that 13.5% was a status of overaccumulation that justified my putting into place ways to sell small amounts of BTC on the way up and to try to employ a system that largely was ONLY selling small portions of the BTC profits, so overall the value of the BTC would continue to go up (and to compound upon itself) way more than any amount that I was selling as a form of downside insurance.
so I think that my main point about my being able to reach a status of overaccumulation of BTC within a relatively short period of time is because I largely front loaded my investment in terms of establishing and getting to my target within about a year, but then spending about another year (even though at an intended reduced rate) of continuing to accumulate bitocin and causing myself to assess my own bitcoin accumultation status to be in an overaccumulation status... and some of my plans were not completely intended but they were worked out based on ongoingly feeling that I was in an overly accumulation status yet at the same time ongoingly selling bitcoin on the way up so that something like 95% of the value continued to compound upon itself, right around 9 times between mid 2015 until present the BTC price doubled and doubled and doubled.. right around 9 times, which largely gets into the ballpark of
256x profits (compounding value).. yet at the same time my preference to call them 94x to 100x profits in terms of going by the use of a more simplified formula of a $1k buy price.
So many times I see guys struggling in their very first cycle, and I really believe that such struggle is not unusual, and there really cannot be any reasonable way to speed up the struggle without putting your whole BTC holdings and your practices into a risky kind of gambling status... so guys likely need to just continue to plug on buyng bitcoin for 1 or 2 cycles or more, and they likely will end up in a decently good position.. since they may well are not able to front load their investments from 20-years worth of other investments like I had at the time that I had gotten to bitcoin.
Another thing is that I suggest that guys try to get in the ballpark of 5% to 25% into bitcoin whether it is their investment portfolio (to the extent they have other investments) or even just considering that they are investing 5% to 25% of their income into bitcoin (of course they also have to consider the extent to which those numbers are reasonable within their disposable income), and the main reason that I had accepted a 1% to 10% target for my bitcoin investment in 2014-ish (and mine ended up being on the aggressive end with 10%) seems to be that bitcoin's investment thesis was not as strong in 2013, 2014 and 2015 as compared to what it is today...and another things is that I never really cashed out of BTC in any kind of meaningful way, so I largely just continued to let my BTC investment ride, besides what I consider to be relatively small sales on the way up that I have been employing since late 2015.
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Last time i check DCA and Lump sum is not in competition with each other.
Both of them are good and preferred strategy to any investor. Do you know that Lump sum investing has outperformed DCA investing over 60% all time statically according to my research.
I think that they are competing.. since people have to figure them out.. what are they can use, and most people don't even have lump sum available to them, so it becomes less practical to do lump sum for so many folks, even folks who have money.
Micro Strategy and other big tech firms are using Lump sum to buy and we get to see billions of dollars invested in Bitcoin.
You are full of shit, Agbamoni.. The mere fact that MSTR invests a lot of money does not mean that they are employing lump sum. Since the beginning of November they have been investing every single week with whatever a mount of cash they have available and at whatever price.. sounds like DCA to me.
MSTR has been engaged in similar tactics since they got into bitcoin in August 2020. They buy bitcoin with whatever cash they have available as it comes available and on a regular basis.. persistently consistently and ongongly. Sounds like DCA to me, even if the amounts are sometimes big..
Same way people are much interested in DCA is the same way many are interested in Lump sum. Honestly, if an investors has enough capital and do not see any reason (risk tolerance, market fluctuation, low capital etc.) to DCA then he should Lump sum. DCA is usually a good strategy for those that don't have the capital upfront.
If a person has lump sum, then he has options to buy right away or to defer buying, so even DCA and lump sum can be described as almost the same thing, especially if someone might DCA as much as they can as soon as the money comes in, then they may well be doing the same thing. They are buying right away, they are not deferring their buys.
Of course, a person could have a lump sum come available to them, and they could spread their buys out over several weeks or even spread the buys out over several months.
These are discretionary considerations and many folks do not have those kinds of options and it might well not make sense for them to defer.. depending on their own situation and perhaps if they might be trying to manage their entrance into bitcoin over a period of time or not.
With of this being said. If after investing we are left with no money at all then Lump sum is not for such investor.
Hopefully persons are not investing 100% of their discretionary income, even though it is within their option to do so, but usually they are going to want to make sure that they have various kinds of cash left, but yeah, if a person invests 100% of his funds, then he might run the risk of miscalculating and actually needing some of the invested money for expenses or some other kinds of matter that he had not adequately accounted for.
We shouldn't invest in Bitcoin unless we have paid off all the high interest debt, cover all our monthly needs, have at least 3-6 months of fiat in an emergency fund to cover unexpected life expenses.
Some of that may well be reasonable, and sure if someone has debt they may want to make sure that they are able to service the debt, but if they are establishing their bitcoin position, they might still want to make sure that they are buying bitcoin on a regular basis.... but yeah there can be folks who mismanage their debt, and they might need to pay some of that debt off prior to investing into bitcoin, yet I have frequently been hesitant to suggest that anyone should be waiting in regards to their bitcoin investment, and frequently they need to get started, even if they might have to invest small amounts while they are getting the rest of their financial matters together, including that many times an emergency fund might be able to be built simultaneously with investing into bitcoin and to get it up to 3 months at the same time of getting bitcoin investment up to 3 months.
If a person is coming to bitcoin and they already have the debt mess than you mentioned, they may well not have to sort out their debt mess prior to getting started, even though they are going to likely be in a stronger position if they have their debt matters sorted out, and surely if they do not have a lot of discretionary income then they might not have any options, yet you are trying to proclaim that it is normal that guys have lump sums available to them, so surely they could figure out how to use portions of their lump sum to sort out aspects of their cashflow situation and they can also figure out the extent to which they are going to buy right way with parts of the lump sum or if they might employ DCA and buying on the dip with the lump sum... .and the more lump sum they have the more options they are going to have in regards to dealing with it.. and the more options they will have also if their cashflow management is already strong, yet they still might not want to or need to wait to sort out all their financial/psychological issues prior to getting started in their investing into bitcoin.
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....If a person has a good understanding of investing then his next step in investing is to choose the right coin to invest in. In this case, in choosing the right coin, the investor should look at a few things such as the popularity of this coin, or how the condition of this coin was in the past, how is the current condition, and how many people are trading in this coin every day. An investor can invest his money in that particular coin only after considering all these things about how this coin can go ahead.
I think one of the best coins to invest in is Bitcoin and most investors currently prefer Bitcoin to invest.
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Fuck off with your nonsense recommendations to assess various coins and that bitcoin is one of the best coins.
First we are in a bitcoin thread, so take your dumbass shitcoin talking points to some other thread, even if we might assume you are giving good advice to even consider any other coin..
You probably don't even know what bitcoin is that is part of the reason that you believe that "choosing your coin" is one of the steps.
From where did you get that? did you think of that dumbass advice yourself, or did you see that some other alleged "smart person" had made some similar recommendation in regards to "crytpo investing steps?"
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Majority of investors prefer the DCA over the lump sum because it offers more good features, not waiting too long to gather capital before investing at once and it helps maximize profits.
Why would you have to wait to gather capital for a lump sum? If you have the lump sum you have it. If you have a lump sum, then you have options to buy right away or maybe to defer your buys through DCA and/or buying on dips.
The DCA is very reliable for both the shrimps and whales, the shrimps don't need to wait for long to gather enough capital to invest at once but can invest in bits on different intervals, according to how their income permits them. For instance, big companies like BlackRock and MicroStrategy are capable of buying bulk bitcoin at once and hold for long-term (lump sum) but not every can do that and that's where the DCA plays a good role, like i said earlier, it offers not just shrimps but all class of investors the opportunity to buy Bitcoin in bits at different intervals, meaning that those who can't afford to buy bulk BTC at once or wait for a long period to gather capital and miss out on different accumulation opportunities would have the chances of accumulating as well through the DCA and maximize their profits and also recover loses during the dip periods. The DCA is a very reliable strategy for all classes of investors and that's why it's vastly preferred by Majority of investors compared to other strategies. However, that doesn't mean that other strategies are not useful too.
Black rock buys bitcoin to back up shares on behalf of clients, so that the shares are backed up. MSTR dcas since it is buying all of the time, and they are not buying on behalf of clients... so your lumping them together as if they were doing similar things seems like you are just making shit up.
Sure your point about DCA being a practical approach makes sense, since a person can buy as the money comes available and determine his DCA amount within their weekly budget, whether weekly or some other period of time.
I totally agree to all what you said here, while the DCA accumulating strategy remains the best accumulating strategy, that doesn't make the lumps sum strategy bad, the most important thing is investing when the funds is available, and sticking to your investment without you tempering with it in the future.
You can lump sum while you DCA, what someone sees as lumpsum is another person's DCA, lumpsum is just in the sense of buying at once with all funds available at the moment for investment instead of spreading it . When it comes to DCA, an investor can still decide to lumpsum as Buying Dip, there're some dips that could be missed forever , if an investor spot a particular DIP and he's convinced about it them he can lumpsum as there's no point DCAing above the dip when you could have just buy the Dip. This is a choice left to be determined by the investor though, buying dips can still be done as DCA just that the amount can be increased unlike the normal amount used for interval purchases, if the Buyer is so convinced then he can just buy at once. For example,Last year 48k was a good example, some investors might believed it will never comeback to 48k , causing them to take the lumpsum into consideration at that point by buying the dip maybe ( and that was indeed true ).
You make some decent points to suggest that guys can do what they like and that they also can mix and match strategies and even sometimes the thing that they are doing is similar no matter what they call it, yet your proclamation that buying on the dip is lump summing.. That is misleading, since if you are buying the dip, then whether you are buying a lot or buying a little that does not convert to lump sum buying merely because you are buying a lot.. you are still buying the dip, especially if you purposefully were saving a bunch of extra fiat for buying the dip, and so when the dip comes you buy. It does not turn into lump sum merely because you bought a lot.
On the other hand, let's say that you were buying bitcoin with a variety of strategies, maybe you had largely been buying between $100 to $500 per week, but some weeks you would skip and sometimes you would save your buys for buying on dips. so after a couple of years you had invested around $25k into bitcoin, so you have accumulated a decent-size stash, and so you just continued with what you were doing with a similar level budget. One day you were at work, and your boss told you how wonderful you were, and he said that he was going to promote you but also give you a $10k bonus. You are so excited because you were not expecting such bonus, and really you knew that you could do whatever you want with the bonus, including buying bitcoin with it. if the BTC price happened to be in a dip, you would probably still be lump sum buying with that bonus money, even if you just happened to receive the bonus during a dip.
You could also just decide to divide the $10k into 3 categories, and buy right away with $3,333, save another $3,333 for buying further dips if they come and then use the final $3,333 to DCA at $333.33 over the next 10 weeks. Of course, you can do whatever you want, and apportion it however you like.. it's an extra $10k that was a surprise, so it was not like you needed it for any particular purpose prior to finding out that you were receiving it.
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It is true that storing coins on centralized exchanges carries a lot of risk. Exchange rules and KYC requirements can change, and your account can be closed or your funds frozen for any reason. This is a big concern for many users.
However, storing coins through decentralized wallets is actually much safer and you have full control over it. By keeping your wallet seed phrase and pass secure, your funds are completely safe, and you can access your coins at any time, even after many years. This is much safer and more reliable than on an exchange.
However, if you ever lose/forget your seed phrase and pass, your funds will be completely frozen. Or if someone else knows your seed phrase and pass, they can take all your funds without your knowledge. So always keep your seed phrase and pass private, and keep it safe, so that your funds will be safe forever.
I write down my seed phrase and pass in a diary, and keep it in one of my lockers, and only I have the key to it, and no one knows where my seed phrase and pass are, not even my family. This keeps my funds very safe.
You may also want to keep a back up of your wallet, and you also might want to have instructions for heirs in the event of your death. These are not easy questions or problems to solve, to the extent that you might either want to make sure you don't lose your seed words due to some kind of natural disaster (fire or something), and that you have some preference to passing your coins to heirs rather than dying with them.
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I totally agree with what you said I was just responding to someone who talked about spend money on bitcoin which led to the talk of investing in bitcoin. And anyway I'm new to this thread that why I talked about trading. I also say that bitcoin is a success coin and nothing else is as hard and successful as it. But I talked about other coins because it also mentioned poverty and the poor can't afford Bitcoin that why I said there is no coin that can succeed like Bitcoin. If possible the poor can invest their money there.
Although you can invest money in Bitcoin you also know that the poor do not have enough money to buy even half a Bitcoin.Don't be retarded. You can buy as much (or as little bitcoin as you want). Perhaps you should think about bitcoin in terms of satoshis, rather than wrongly concluding that bitcoin cost more than shitcoins. Poor people can buy bitcoin as much as they can invest into any thing else, and likely bitcoin is particularly aimed at benefiting the poor.. yet the main thing is having discretionary income in order to be able to invest for 4-10 years or longer. Otherwise if the time is shorter, then it is trading/gambling rather than investing. Poor people frequently have troubles in both having and/or maintaining discretionary income and being able to actually invest rather than to trade or gamble with a shorter than 4 year investment timeline.
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You have a point but let's be honest and ask ourselves. How many of us have had 8hours of sleep ever since we joined the
cryptocurrency market space?
Waking up at 4 0 clock in the morning is not only applicable to trades, but it is also applied to everyone in the
crypto market who wants to take advantage of the market the early morning time is known as the best time to do so before any manipulation or liquidation will happen in the afternoon.
I also never liked the idea of day
trading of
crypto, and going for the memecoin, or shitcoin is the worse structure for
crypto traders because they are mostly created by the team involved to earn some quick bucks.
We are talking about bitcoin in this thread so fuck crypto and shitcoins, and fuck trading also.. We are not talking about trading here either.. You did not even use the word bitcoin in your thread, which makes me wonder if you know what bitcoin is, and if you supposedly know what is bitcoin, then why are you talking about crypto? Do you thinking that bitcoin is the same?
Maybe you think that you sound smarter if you use the word crypto, even though potentially you were talking about bitcoin, but then if you were talking about bitcoin, why didn't you just use the word bitcoin?
Maybe you should re-write your post with the word bitcoin? Does it help? Are you able to clarify what you had intended to say? Do you know what is bitcoin well enough to actually use the word bitcoin within your post?
If we are in a bitcoin thread and we also are not talking about trading, then does that affect what you say?
