Topic: Buy the DIP, and HODL! - page 20. (Read 128946 times)

We should not be discussing trading in this thread what we should be discussing is accumulating Bitcoin and hodling, we all know that trading is very risky however if you wish to play around with your money you can only do that with 5 or 7 percent out of your 100 percent discretionary income that way you won't feel much pain and frustration when you lose.
And yeah is true that there's risk in accumulating and hodling Bitcoin for long term but the risk in long term Bitcoin investment is lower than that in trading.

you are actually right to an extent, yeah trading is not a bad thing per say but what makes it bad is the loss people incur while trading and what also makes it interesting is the profit some people make from..., and the truth is trading is not limited i mean one can not know it all it is something people try to do because of the fundamental or technical analysis been carried out which of course may not even be enough or certain that is goin to work, sometimes analysis can be so interesting and convincing that the market is going to be like this while the market is planning on going the opposite direction. in my opinion, i do not think knowledge is enough in trading perhaps one ought to be discipline so as to minimize the rate of loss, do you know one can have knowledge and yet very greedy and this is one of the factor that brings about loss in trading. The done up and the down in are the things that defines the market so it should not be a new thing and anyone who is doing the long term investment should not bothered because Bitcoin is a very great asset.

Trading not bad though but I will say you're making the right choice avoiding it ( trading) , because trading not something one can start without having good knowledge on how it works and stuff because to understand trading takes time and energy, and also determination, without any knowledge you will only get yourself rekt (losing everything).

But for Bitcoin investment all you need just some basic knowledge and you good to start , and you can continue to expand your knowledge to make your holding or investment better each day , and this thread can help with that , due to the knowledgeable users here just stick around and Secure a smooth investment tho they would be done up and down in market but still stay strong 💪

By regularly marking these things we have to buy any coin at a certain time and after buying we have to fix a target of when we will sell those coins. If there is any mistake in this plan then money can be lost instead of profit so trading is always riskier than investing.

Trading not bad though but I will say you're making the right choice avoiding it ( trading) , because trading not something one can start without having good knowledge on how it works and stuff because to understand trading takes time and energy, and also determination, without any knowledge you will only get yourself rekt (losing everything).

But for Bitcoin investment all you need just some basic knowledge and you good to start , and you can continue to expand your knowledge to make your holding or investment better each day , and this thread can help with that , due to the knowledgeable users here just stick around and Secure a smooth investment tho they would be done up and down in market but still stay strong 💪

Yes, that's right, instead of looking for other people's mistakes, it's better for us to correct the mistakes we have. Here I am actually just comparing the two categories of people I mentioned above. Because I hope that from the post I made above there is meaning that can be learned by people who are starting to invest in Bitcoin. The reason is that not a few people who invest in Bitcoin force themselves to borrow money from the bank. And I think that's very wrong.

Apart from that, I also agree that an investment strategy in Bitcoin is very necessary and a DCA strategy is a good thing to do in Bitcoin. Because currently I continue to do DCA on bitcoin. I am indeed registered on this forum starting in 2022 or to be precise in May. At that time I was very curious about bitcoin so I entered this forum. At that time I didn't immediately invest in bitcoin, but a month later after I registered on this forum I decided to invest in bitcoin. At that time I also collected the money I had in the form of bitcoin every 2 weeks. But to be honest, at that time I didn't know that the strategy I was using was a DCA strategy. But after I found out, the strategy I used turned out to be DCA. So until now I continue to do DCA on bitcoin, even though the bitcoin I have is not as big as you mentioned, but in essence I continue to be consistent with my investment.

And yes, I agree with you, that if we have income, then have reserve funds, and cold, unused cash. So immediately investing this cold money in Bitcoin is the right thing. But if you don't have cold money, it's better not to invest in bitcoin yet. Because if you are forced to invest in Bitcoin by borrowing money, of course this is not the right solution.

I wouldn't say the same thing about my investment because I have always known that long term investment is the sure way to make good gains but what I never knew before I visited this thread was the DCA method and the need to make investment after settling basic needs and setting aside emergency funds. Prior to the time I visited this thread, I usually invest any money that enters my hand into Bitcoin and most often I will have to sell part of my Bitcoin to settle some important needs, sometimes I sell below what I bought and that was making me stagnant in my investing with no much growth. Joining this thread I learnt the DCA method, the concept of emergency funds and many other things that have helped me refined my investing and become more comfortable and happy in building my portfolio. This thread have indeed been so helpful to me.

Before I visited this thread, of course, the direction of my investment was not directed, aka there was no strategy that was really integrated with my investment pattern. But slowly I began to realize that long-term investment is certainly quite good to apply with regular purchases every week. I didn't really know the term DCA before because it was still foreign to my ears and after a long time I finally found my goal, which was to invest in bitcoin in the right way without any pressure at all.

I believe everything takes a process and sometimes mistakes come early so that we can learn or learn not to repeat them. As you said quite right, it takes 1 year or more to adjust a strategy that can blend with our minds in investing in bitcoin.

Currently trending, I see many investors who invest at once and they forget about it, or the important term is the large allocation they invest in bitcoin is for their old age by implementing a lump sum and forgetting about it.

You might be pigeonholing your categories a bit too much, and yeah we might proclaim that there are guys who are overly hesitant in their bitcoin investment and then we might identify guys who are too gungho about their bitcoin investment, yet we can choose our own destination by identifying bitcoin as a good investment and then figuring out how much to invest into bitcoin from our discretionary income, whether that is $100 per week, $10 per week or some other amount.  Of course, if we have a lump sum amount that we could invest, then we can decide whether to invest all of it, or to invest parts into DCAing and/or buying on dips.

Each of us needs to figure out our own strategy rather than trying to figure out what others are doing wrong - although sure it is possible to learn from others too, yet it can take each of us several years to figure out our own strategy, and figure out a way to invest in bitcoin as aggressively as we are able to without over doing it, so in that regard we should have back up cash funds and also consider that we are likely going to be investing into bitcoin for 4-10 years or longer, and perhaps tweaking our strategies along the way as we go and as we build our bitcoin stack size.

Now if you (Tamaperdana) think you got it all figured out regarding guys either being too whimpy or too aggressive and you cannot figure out some kind of an appropriate in-between approach to BTC, what have you done in your 2.5 years while registered on the forum?  You entered right during a dipping period, and if you had been investment $250 per week in the past 2.5 years, you would have invested right around $33.5k and you would have had accumulated 1.0645 BTC.. which surely would have had been a good place to be right now rather than pondering whether or not to get started or wondering how to get started.

It seems that the best thing is to get started as soon as possible and then to figure out a BTC accumulation strategy that works within your discretionary income if you have a discretionary income.  If you don't have any discretionary income, then you should not be investing into bitcoin, so then you have to figure out how to either increase your income or decrease your expenses in order to have a discretionary income so that you are able to invest into bitcoin for 4-10 years or longer.

Trading not bad though but I will say you're making the right choice avoiding it ( trading) , because trading not something one can start without having good knowledge on how it works and stuff because to understand trading takes time and energy, and also determination, without any knowledge you will only get yourself rekt (losing everything).

Yes, I have already invested some amount, and your advice is very important to me when I change my investment plan in Bitcoin based on your opinion. And I never thought that you would give me so many words of advice. Anyway, I feel like I am one of the lucky ones (I am not exaggerating). I believe that one day I will be able to do something good and seek the right knowledge. And trading is not my favorite subject. So I have no desire or aspiration to move towards trading because it seems more dangerous to me.

You might be pigeonholing your categories a bit too much, and yeah we might proclaim that there are guys who are overly hesitant in their bitcoin investment and then we might identify guys who are too gungho about their bitcoin investment, yet we can choose our own destination by identifying bitcoin as a good investment and then figuring out how much to invest into bitcoin from our discretionary income, whether that is $100 per week, $10 per week or some other amount.  Of course, if we have a lump sum amount that we could invest, then we can decide whether to invest all of it, or to invest parts into DCAing and/or buying on dips.

Each of us needs to figure out our own strategy rather than trying to figure out what others are doing wrong - although sure it is possible to learn from others too, yet it can take each of us several years to figure out our own strategy, and figure out a way to invest in bitcoin as aggressively as we are able to without over doing it, so in that regard we should have back up cash funds and also consider that we are likely going to be investing into bitcoin for 4-10 years or longer, and perhaps tweaking our strategies along the way as we go and as we build our bitcoin stack size.

After reading a few pages in this thread, I learned something quite interesting about the behavior of a beginner who wants to invest in bitcoin. On the one hand, there are beginner bitcoin investors who are very reckless and only think about making a profit without learning more about what bitcoin is. Then on the one hand there are also those who are interested in investing in Bitcoin, but the problem is that these people are too afraid to start, even though basically these investors have learned a little about Bitcoin investment. So in my personal opinion, these two types of investors have advantages and disadvantages. Because people who invest in bitcoin only think about getting quick profits, the advantage is that they already 100% believe that bitcoin is a very promising investment asset. However, the weakness of people with this type is that they will most likely not think too much about the risks or capital used.

Because perhaps in order to make a quick profit, such people dare to take out a loan from the bank and immediately invest the money in the form of bitcoin. Even though bitcoin has very minimal risk compared to other assets. But even so, investing in Bitcoin using borrowed capital is still not appropriate. Because of course when you borrow money from the bank, you have to pay the debt in installments every month. And what if, for example, the economic situation is not going well, in my opinion this will really disrupt investment in Bitcoin and also other economic conditions.

Then regarding the advantages of bitcoin investors who are too afraid to start investing, people like this are usually better at finding information. Because people like this have a very strong wariness of bitcoin. So to convince themselves about Bitcoin, looking for information first is what they do. But the problem is, even though they have learned about Bitcoin, they still feel doubtful. Which ultimately still brings a dilemma when starting to invest.

So in your opinion, which is better between these two types of people?
In my personal opinion, the type of person who has high caution is better. Because even though the process is a little longer (to start investing in Bitcoin), it will definitely provide better and more mature results.

Waiting for the dip to buy bitcoin means one is not yet ready to invest bitcoin because you might keep waiting not knowing you are just wasting opportunity. In bitcoin invest just try to grab the opportunity you meet everyday if you can, you don't need to wait to invest. Waiting  for the dip to buy bitcoin is a big lose but people don't know this. Invest in DCA method now and earn a better profit in the future that is what matters. The market does not wait for anyone or give assurance to anybody to anyone to wait for a dip that will be favourable to buy in the future. Waiting for dip is a mistake that people are not even aware of but thinking they are taking good investment decisions on when to start.

In your earlier post, you had stated that you had already started buying bitcoin, so just continue to buy bitcoin and to learn about it as you go, yet the main thing to learn is your own cashflow management, and to make sure that you are investing from your discretionary income, which is the money that you have available that you can spend that you do not need for your expenses or even that you are going to want for other later reasons.. so it would be money that you are just continuing to put on the side for 4-10 years or longer, and if you are young, then the investment timeline would likely be 15-20 years or more. 

Of course, you are free to do whatever you like and you can choose to trade bitcoin rather than invest it, so if the BTC price goes up by 50% or to double or triple, then you cash out some of your investment into bitcoin, yet that would not really be investing, and you would likely be selling one of the best, if not the best of assets, so it would be a problem that you had spent time accumulating so much of such a good asset like bitcoin and end up spending all of it or trying to sell it higher and to buy back cheaper, which may or may not work out for you as compared to a practice of just keeping on buying bitcoin until you are later able to start to draw upon it, which again seems something that you may well want to let your bitcoin investment ride for quite a few years rather than withdrawing it before the bitcoin had chances to compound its value upon itself several times.

There are no guarantees with any investment, so there is a need to figure out how much you are going to invest, yet since bitcoin is an asymmetrical bet to the upside it is also quite possible that you are able to invest over the years and to end up compounding your value since the most you can lose is 100% of your investment, but there are also quite a few decently upside potentials in bitcoin to continue to grow as it has in the past, even if the slope of the upside curve might not be as steep as it had been historically.

So whether you keep adding to your bitcoin stash is your choice ($100 per week, $10 per week or some other amount that you consider reasonable/feasible/prudent), and your figuring out your personal factors is probably a good idea, but it is also your choice regarding how much you attempt to plan ahead in regards to your cashflow including your income versus your expenses versus how much you are putting into bitcoin.  It can take a while to figure out your personal factors and then to balance them out and they are a moving target too, since it is quite likely that your income and expenses are changing with the passage of time, and maybe you also have expenses of working on building skills and increasing your employment and income opportunities (such as going to school/university), and so anyone thinking that they are going to substitute their short-to-medium term income with bitcoin appreciation income is likely thinking wrongly about bitcoin since in many cases it takes years and years and years before you are likely to get your BTC stash to a high enough level where you can start to live off of it or to supplement your other income with it. 

Historically, aggressive bitcoin investors might have had been able to build their BTC stack within a cycle or two, yet these days it may well take longer than a cycle or two to get your BTC stack to a high enough level that it could sustainably support your expenses or to sufficiently supplement your expenses where it would start to make sense to transition from your BTC accumulation stages and into your BTC withdrawal stages.  It makes no sense to sell any BTC until you have reached your BTC withdrawal stages, and only you can figure out those stages, and if you fuck it up no one is going to bail you out.  You are responsible for your own fuck ups, including if you treat bitcoin as a trade rather than an investment.  Those are your choices, completely.

In traditional financial planning, you would usually need to get to about 25 years of your income/expenses to be able to sustain yourself from your investment at a 4% withdrawal rate.  I personally believe that bitcoin allows you to sustainably withdraw at a 10% withdrawal rate which would mean that you ONLY need 10 years of your income/expenses, yet I am also using the 200-weekly moving average as the way to measure the value of your BTC stash and various other withdrawal constraints, especially if you might be in your earlier years of just meeting the minimum thresholds in which your valuation of your BTC holdings appears to be enough...since there can always be dangers in attempting to withdraw too much too quickly and there after depleting your BTC stash at a rate faster than it is growing, which would no longer be sustainable and would defeat the purposes of anyone who prematurely thought that he reached fuck you status but he either misvaluated his BTC stash or he was too aggressive in his attempted employment of what he thought would be sustainable withdrawal practices. I discuss price based and time based sustainable withdrawal strategies in one of my threads, yet my presumption for anyone attempting to employ those strategies is to reach a status of over accumulation of BTC prior to employment of either of the strategies.  I consider them as not being trading strategies, even though so many folks love to trade/gamble, and so sometimes it is difficult to save folks from themselves, since in the end people can do what they like and they are responsible for the consequences of their own actions, good and bad.

After reading a few pages in this thread, I learned something quite interesting about the behavior of a beginner who wants to invest in bitcoin. On the one hand, there are beginner bitcoin investors who are very reckless and only think about making a profit without learning more about what bitcoin is. Then on the one hand there are also those who are interested in investing in Bitcoin, but the problem is that these people are too afraid to start, even though basically these investors have learned a little about Bitcoin investment. So in my personal opinion, these two types of investors have advantages and disadvantages. Because people who invest in bitcoin only think about getting quick profits, the advantage is that they already 100% believe that bitcoin is a very promising investment asset. However, the weakness of people with this type is that they will most likely not think too much about the risks or capital used.

Because perhaps in order to make a quick profit, such people dare to take out a loan from the bank and immediately invest the money in the form of bitcoin. Even though bitcoin has very minimal risk compared to other assets. But even so, investing in Bitcoin using borrowed capital is still not appropriate. Because of course when you borrow money from the bank, you have to pay the debt in installments every month. And what if, for example, the economic situation is not going well, in my opinion this will really disrupt investment in Bitcoin and also other economic conditions.

Then regarding the advantages of bitcoin investors who are too afraid to start investing, people like this are usually better at finding information. Because people like this have a very strong wariness of bitcoin. So to convince themselves about Bitcoin, looking for information first is what they do. But the problem is, even though they have learned about Bitcoin, they still feel doubtful. Which ultimately still brings a dilemma when starting to invest.

So in your opinion, which is better between these two types of people?
In my personal opinion, the type of person who has high caution is better. Because even though the process is a little longer (to start investing in Bitcoin), it will definitely provide better and more mature results.

You need prepare well financially before you can think of buying Bitcoin because what are you doing is investment and it is for a very long time your Bitcoin investment shouldn't be a borrow money because you are investing for long term you need to have a good cash flow as you will make plans for your emergency fund reserve, and your discretionary income so that won't sell out your Bitcoin hodling when you encounter some challenges of life or things that you don't expect to happen, and also with the DCA strategy of accumulating Bitcoin you can accumulate Bitcoin gradually either weekly or monthly regardless of the price of Bitcoin and continue hodling.

When I suggest 50 to 200 years for something to play out, I am providing a lot of latitude in my own thinking of gradually and then suddenly because sometimes changes happen slowly, and then all at once, and if we try to prepare for the direction that we think the puck is going rather than where the puck is, then we are likely going to be in a better position, even though we likely can mostly do ballpark type preparations for a variety of scenarios rather than getting too bogged down in specifics, so there is a bit of a BIG SO FUCKING WHAT? in regards to where bitcoin might be 50 to 200 years from now, since we have to be both enjoying our here and now and also preparing on shorter timelines, such as we do want to make sure that we are able to feed ourselves and any family (dependents) that we might have,  and many times we are going to have a lot of intermediate goals in regards to where we want to be at time 1 month from now, 6 months from now, 1 year from now , 4 years from now, 10 years from now, etc etc etc., and so the further we go out the less that we might get into details, including that I better have enough money to pay my rent, utilities, food, transportation for this month and those are pretty specific numbers, and they become a bit more general the further than we go out in time, even though surely if I have built either life skills (working skills) and social capital, and various back up systems, I might not have to worry as much about some of the shorter term matters working themselves out, yet if I go through some relationship problems, or employment problems or even if I get hit by a bus, then I might have to consider if my various backup plans are sufficient enough to help to protect me (or to keep me in the game). 

Personally, I don't see much if any role for gold in my own personal preparations, and sure there might be some people who are in places in which people are used to having gold and dealing with gold, so maybe they are going to be o..k to have some gold in their lives, but I personally consider gold to be completely unnecessary, absent maybe some Armageddon situation..and even then, in the place where I am at, I have difficulties understanding what good the gold might do me.  I could buy a few ounces or kilos to store some where, just in case, but I am just considering it to be something that might not be very helpful...maybe in considering a situation in which bitcoin is also no longer valuable... internet is down every where?  That would be a pretty bad situation, and I might not be young enough to last through something like that if it comes to fighting over resources, I don't have enough guns and bullets either, which might be helpful in terms of self protection during such times... I think I am getting too far astray with trying to consider some value in terms of having gold as you suggest might be of some value in some scenarios that you have not quite specified what they might be.

Considering my situation, your advice is quite reasonable and effective. Because I live with my family although I am not dependent, I have to be accountable to them for the family income, this is my hereditary principle. However due to my job, I can save even a small amount but the amount is very small and I can deposit it continuously. As a result I have invested some amount in Bitcoin earlier. I have some more savings which I am going to invest now. But I think that after one or two years from now if I can save more, can I invest in Bitcoin again with that?

Investing in bitcoin the right way by buying it regularly with a DCA strategy. Adjusting cash flow properly, emergency funds, reserve funds and funds for execution. I think no one is afraid to invest in bitcoin but because they don't plan well they are not consistent in investing.

I also agree with you, we can set aside monthly income to invest in bitcoin, invest with money that we don't use for our daily needs. The important thing is that we must understand that investing in bitcoin is not for the short term but for the long term, so there are many periods that we will go through each year to buy Bitcoin.

Buying Bitcoin can be done through a trusted Exchange and withdrawing it to a personal wallet to be held in the long term.