Topic: Buy the DIP, and HODL! - page 212. (Read 109074 times)

Perhaps someone has elaborated about this but I'm not satisfied with his statements, hence I will have to buttress or initiate some points.

In as much as Bitcoin price has been fluctuating for days now and perhaps we could call it a price correction. as you said it's an opportunity to grab more stash of Bitcoin but I would consider such statement as a short sighted one or probably a short term investment, which you have to buy as a result of fomo. But if genuinely you want to keep investing in Bitcoin then the little dips we saw was a mere advantage to hold more stash of Bitcoin, it could serve as a discount to any one buying to hold.

But obviously for people who aren't interested in a short sight Investment wouldn't be bothered woth the dips or fomo to grab more stash because they have the DCA method of investment that allows them to buy Bitcoin at any give time.

Referring to those waiting for Bitcoin price to fall before they invest, are there still people like that? after all the time spent here? well if there are people waiting to purchase Bitcoin when the price falls then I think they are not in a long term investment, they are only driven by the profit Bitcoin will give them within the bull run.

Don't worry you need to hold BTC, in this case it is better to increase the amount of DCA. This gives you both the benefits of holding as well as reducing the average cost. You just need to monitor the market situation with an unbiased time horizon.If you think that the price of BTC is relatively low, then if you have a dollar, you can buy it in lump sum. In fact, if you want to do business, you have to consider many aspects and then you will be successful.

I really don't think that is necessary by going the extra miles in explanation and even providing data to back up your claim that Bitcoin is not a Ponzi scheme, I don't think it's necessary, to me it's only people that are misinformed or uninformed that will take Bitcoin as a Ponzi scheme in today's world that technology and civilization have practically taken over everything,  so to me, anyone that fail to see the light, let him be, don't try to over talk someone into Bitcoin investment, so you wouldn't be seen as a fraudster.

The DCA technique is indeed the simplest technique to apply in an investment (Bitcoin/Stocks). Because the DCA method basically makes it easier for us as investors to invest in bitcoin or other assets so that we are not too confused about determining at what price we will buy.
Therefore, DCA is very suitable for use in bitcoin investments over a very long period of time. Because buying bitcoin regularly at any price will generate profits in the future.

Apart from that, the DCA method will also be very suitable for beginner investors in bitcoin. Because as I discussed above, by using DCA we no longer need to be confused about the price of bitcoin when we want to invest. So basically those who have basic knowledge in investing will be very safe if they use the DCA method in their bitcoin investments.

However, in my personal opinion, the biggest challenge in using the DCA method lies in time. Because if we invest in bitcoin using the DCA method, it is certain that within 1-3 years we will not really feel any significant impact or results. For this reason, if someone wants to use the DCA method in investing in Bitcoin, don't forget to prepare very cold capital, a strong mentality, and patience which must also be strong. And most importantly, don't forget that from the start must have a definite goal (starting point, how much money you will invest in Bitcoin every week/month, and also the end point or target you want to achieve). If all of these things have been carried out well, I am sure Bitcoin investment using DCA will run more smoothly.

Yes the market is correcting now but Bitcoin price has been fluctuating continuously for days. Even if the price of Bitcoin falls, it will not affect the investment in the DCA method, because in the DCA method, Bitcoin can be purchased at any time at any price. However, when the price of Bitcoin falls, one advantage for those who invest in the DCA method is that they can buy slightly more Bitcoin with the same amount of money. However, this may be an opportunity for those who want to start investing when the price of Bitcoin falls.

Ponzi schemes usually don't last too long. So that can be a benchmark to offer to people who still think Bitcoin is an investment that uses a Ponzi scheme.
as you said we can provide real evidence of the price of bitcoin when it was still $1K until now. or if necessary, you can use data from the first halving to the last halving next month. how does the price of bitcoin increase from each halving or from year to year. of course they will see clearly that this is real and not a ponzi scheme as they say.

Therefore, we as those who have knowledge about Bitcoin and how it works can provide understanding for them. at least how to invest in bitcoin. for the initial stage, for example how to buy and store bitcoin on an exchange. then if they follow and want to make longer and bigger investments, then we will guide them to have their own wallet and start storing it there. because exchanges are actually only for buying and selling, not for long-term asset storage.

This is because the level of literacy and trust of ordinary people in Bitcoin is still low. and when they find out about Bitcoin, they think that it is very expensive to buy Bitcoin at that price. Moreover, they really don't understand the concept of DCA.
if some of them are people who have played in the stock market, maybe it would be nice to just divert a little of the assets they hold into BTC.

depriving oneself from luxury lifestyles inorder to Stash more Bitcoin is a smart move, because if you start stashing more bitcoin now and HODL in a long run , would give you a life far more better than living a luxury lifestyles now. So bitcoin investment is all about work hard now and enjoy the fruits of your labour later.

While those that still having that thought of bitcoin being a Ponzi scheme would keep on missing such opportunities, because they don't wanna learn , that's how alot of individuals back then may have also have same mindset thinking bitcoin is a Ponzi scheme and would crash soon when it value was still around $1k , but through those years bitcoin kept proving them wrong and now Bitcoin just recently hit a new ATH (which Is around $73k ) not quite long. You can see the tremendous growth and we believe bitcoin would still keep on proving them wrong , when it keep going up.

 Edited:
this recent dump as you say it ,  might be the last dumping or might not be the last dump before tha bullrun know can tell, but all we are sure of is that their going to be a massive surge in market soon (bull run ) might either take place this year or next year, we still can't tell. That we don't have to wait till then before we start accumulating more expecially the no coiners and low coiners. Bitcoin undergo a certain correction recently (causing some drop in price) , so those that haven't started accumulating yet. Now is still good time to start we are still early.

Everyone has to figure these kinds of matters out for themselves, which is part of the reason that we are still early because a lot of folks are going to end up coming into bitcoin way later than they should have come in.. . and so yeah, one of the better things to do is just to get started with some small investment amount and to figure it out as they go.. otherwise, these kinds of newbies are going to continue to feel that they are late and they will still end up having to get started at a BTC price that is likely to be much higher than it is right now since the BTC price is likely to just keep going up, so these guys who are waiting and/or trying to overthink the matter (or refusing to take action and/or to get involved) are going to end up being worse off by their continuing to wait and continuing to conclude that they don't know enough about bitcoin.

Investment requires  determination  and dedication because to have efficient investment you must sacrifice many things and deprive yourself from some luxury lifestyles which many people cannot persever. The major problem some people are having in Bitcoin investment is not just capital but the adequate knowledge of the process and how the system work.
Bitcoin is a digital currency which most of the investors does not have control over the system, so most people that doesn't have the adequate knowledge of it and the orientation are still afraid to make a huge investment in Bitcoin believing it to be a Ponzi scheme that has the tendency of crashing any day  thereby making people to loose their hard earn money.

The market is diving lower and the opportunity for human capital has been created. Those who were waiting for the dumping market, the dumping market is here, now you can invest from the dumping market. I increased the investment using the DCA method and waited for the dumping market to invest by buying more bitcoins, currently in the dumping market I made myself invested if the market dumped a little more I would buy bitcoins and hold it. Maybe this is the last dumping before the bull market so no one should miss this dumping market to invest.

There is actually no better way of managing one's inflow during investment other than proper planning and applying these strategies of having an urgent funds because as a beginner, it is important to note that investment involves determination and self discipline and it can only be achieved when the needful have been put in place so that is the only way to ensure that we keep our investments running rather than becoming so slow as a result of some unforseen circumstances that may occur along the line.

Definitely, at the start of an investment you don't expect everything to go as you planned because you sure gonna come through some huddles but those huddles would stand as a yardstick that will propel you during your time of investment. However, when you miss out at any interval during your investment processes it is always hard to cover up the previous lapses that's why an investor doesn't need to give room to any form of distractions during the time of investment.

Sure, emergency funds play a vital role in our investment, but we all know that emergency funds doesn't comes free. That why someone that is interested in Bitcoin investment should have some sources and some good planning, though we may say one does not need more knowledge (just the basic)  to start investing, but as time goes on you will know that to secure a good and healthy investment requires good knowledge.  Like someone who use lump-sum strategy to buy bitcoin during the dip, without any proper plans. On how he can manage his funds mostly when is an average Man, always going all at once without having enough emergency funds or reserve funds , which will initiate a urge of always depending on his investment for survival due to poor planning, if such continues he may endup not able to lady long with his investing. That why as one is investing he or she should also focus in accumulating more knowledge as they accumulating bitcoin, in order to exercise good planning and this thread has been helpful. But one also need something like this 9 principle individual factors

Maybe if they could manage their financial flows better, I don't think there would be an obstacle for them to miss a single purchase at each stage. Yes, I mean if they directly manage their money from the start, for example they have $20k and they have divided several stages of purchases every week or month up to a period of 1 year in their initial planning. But sometimes they don't set a strategy like that, instead they set aside their salary every month to buy BTC, even that's also a good choice.

Yes, even though it's like that, I think every target in the first year should not have any obstacles or go through several stages because that can make us not consistent in our one main target. However, what is certain is that everything may not be perfect, and of course we can fix any gaps we have missed at the next stage by increasing purchasing more aggressively.

The importance of emergency funds can not be overemphasize because it is very much important even in  our daily life that is why it is always advisable that we should have 3 to 6 months of our living expenses save as your emergency funds, and at the event of making use of it provisions should be made in order to replenish it as soon as possible and by so doing you have over come one of the factor that has lead so many into sell off their investment at when it is not  time to do so.

I agree with everything you said Winterfrost, and so it can be difficult to suggest that someone is doing it wrong because he employs some slightly different method of accumulating BTC, and so within the three methods of DCA, lump sum investing and buying on dips, they each have their place, yet they are also coupled by various uncertainties.  A person who has no savings and no other investments would not be in a position to lump sum invest.. so that guy would ONLY be able to DCA and/or buy on dips.  There is also nothing wrong with attempting to strategies your buys, which might also include waiting, but waiting does not make as much sense for someone who does not already have some BTC, so then we get into situations in which the amount of BTC that a guy has already accumulated and at what prices could also affect if he is in a position to wait or if he should just be buying regularly.

I am not opposed to your idea of a guy skipping DCA because he has to roll with his life circumstances, yet if someone plans ahead and he gets his shit in order, then he would also be in a position to prioritize his DCA so that his life circumstances would not cause him to stop his DCA.. now that is assuming that DCA is a good thing for him to do based on his own stack size and his building of his stack size.  Some of the better ways to make sure that you don't miss DCA (if that is a priority for you) is to make sure that your emergency fund and your reserves are in a good position, and you also have good systems in place in terms of managing your cash float... and yeah, sure life circumstances could get so unexpectedly bad that a DCA would have to be stopped, but it would not necessarily be the first thing that is stopped, so there might need to be a exhaustion of other funds prior to discontinuing the DCA (depending on if the DCA is a priority for that particular person).. ..

Again, with all of this that I am outlining, just like you seem to suggest Winterfrost, each person is in charge of his own circumstances, priorities and figuring out how many funds that he has available and whether he is in a position to employ certain strategies that he authorizes himself to do and can discontinue or change those circumstances at any time, including that he can tell himself that no matter what, every week he is going to buy $10 of BTC and he could structure the other parts of his life around that so that no matter what he buys $10 of BTC, even if he might be having other negative financial issues that he is having to deal with.

By the way, don't get me wrong, even though I suggest DCA as the best default system to get started in BTC investing, I also consider that it is not the best for anyone who is able to put together some combination of other systems that also might include DCA as a supplement or as a kind of hybrid DCA, so in that regard, I appreciate any front load lump summing and even front load DCAing, that also includes attempts to buy on dips during the weekly DCA, especially in the earliest stages of building a BTC portfolio, but surely if someone is brand new to investing and/or BTC, they likely are not even able to do any of those other fancy strategies, so they are likely going to be in a way better position to strictly DCA an amount of money that is reasonably doable for them,  and it likely would not even be beneficial to for them to be spending time on various other strategies if they might barely be able to just get some kind of system set up to buy BTC regularly and then they have a lot of other things going on in their lives, since maybe the brand new investor might need to try to figure out ways to increase his disposable income so that he is able to invest more into BTC, and yeah if someone is in college (or some low income earning situation) they might not even have much income, so they might have difficulties increasing their disposable income until they finish their college and/or vocational training... DCA might still work for a person like that, if they don't have much income, they just would be setting a small portion aside while they are doing their studies.

Maybe I think he is talking about your ability to purchase in the little way you can Which the DCA method allows you to, because you might not have the financial strength to purchase in lump sum.

In as much as investors should go for strategy that best suits them especially on their financial status, the DCA method has a way of strategizing your purchasing plan for long period, it has been a lay down procedure that a lot of people have been using because of its advantageous side. Don't forget that this is a volatile market, so you need strategy to survive it, so knowing when to buy and how to buy plays a big role. I understand your point about managing your assets, but I believe we should count one before two. You can only manage assets that you r acquired, however the process of acquisition for a lot of investors should be taking into cognizance.

I don't think there is any method of buying bitcoin that is best for everyone, what may be the best for you may not be suitable for another person. So you see, the method any individual uses to make his bitcoin purchase does not really matter and depend on his/her preferences and what really matter is what the investors do with the bitcoin in terms of preserving and protecting it to derive the best value from it. I can decided to use the DCA method to buy while another person use lump sum, in the end we both have bitcoin in our possession and as long as we plan to hold our portfolio and not sell under pressure or when we do not plan to sell, then we both will be achieving equivalent results.

The DCA method seems to be favorable to many investors simply because it is easy to apply and can make one easily develop the right discipline needed to hold bitcoin for long term. By this I mean, those applying the DCA method seems to think more of long term plan rather than just buying low to sell high. The DCA method is a process of its own that requires patience to follow, this is why many people using it tend to achieve good results.

I do not know what you mean by the best because everyone uses method that is convenient and suits their purpose. If you say that the DCA method is the best, are you saying that investors like MicroStrategy and other whales that do not use the DCA method are not doing it correctly? Many of us are aspiring to be like them, buying bitcoin when others are afraid and being skeptical, and holding for long term. That is the ultimate goal. The method of buying should not be the borne of contention rather how best we can manage the assets so acquired to be able to be proud of our decisions and actions in the future without any form of regrets.

I don't think this is an excuse, definitely we are humans and humans are bound to face challenges especially when it comes to money, challenges should not be an obstacle when investing if you plan properly. That's why it's advisable to set aside some funds for emergency (Emergency funds), if having an emergency fund during such time it can be of help rather than stopping your accumulation process. When I first started it was difficult cause I had no planing idea and no emergency fund, I just buy and buy without a plan and it was difficult honestly but when I started this learning process I knew it's best to include emergency fund when planning.

Shortest possibly time with bitcoin investment is not advisable except the person what to gamble with his/her investment. Bitcoin investment should be a long term investment plan, I will buy using the DCA strategy cause it suit my income, I don't think if it's the best or not but I think beginners should not get involve with the lump sum strategy but rather the DCA strategy.

I do agree with you that the DCA method is a wonderful method of investing in Bitcoin that is suitable for both beginners and older investors. It is also a wonderful method for those with regular cashflow such as salaries even though those with other forms of cashflows can make projects and work out a way of also using the DCA method. These possibilities make the DCA method unique and great for all to use, allowing them the peace and comfort of not bothering about price movement, hypes and FOMO. So, I give it to the DCA method and will also encourage everyone struggling with being consistency to use it.

However, we should endeavor to remain within the confines of what DCA method is so we don't derail. For example, I do not think it is ideal to posit that the DCA method control the average price ratio, I don't even know what you mean by that statement. But I do know that the DCA method does not control the price of Bitcoin as it can be applied at any price printed by Bitcoin as at when the purchase is to be made. Although, at lower prices, the investors have more BTC and at higher prices, he gets less BTC and in the end the average price can be calculated for personal record keeping. If this is what you are referring to as average price ratio, then fine the investor can actually work it out to be able to know the profit factor of his entire Bitcoin portfolio.