Topic: Buy the DIP, and HODL! - page 226. (Read 135878 times)

Those who have spend time in Bitcoin have consent that it's ideal to invest into Bitcoin for long term. But that's not the case with new comers, most of them came with mind that Bitcoin is about getting rich overnight and when that desire is not fulfilled they get disappointed.

Regarding three techniques i.e. Lump Sum, Buy the dip and DCA, anyone with experience can adjust buy the dip and Lump Sum with DCA. If I am a new comer, I would prefer to go with small amount i.e. investing small amount every week or month. Once your confidence is developed you can go for Lump Sum with some increased capital. Both DCA and Lump Sum are good as long as you are confident about the technique you are adopting.

Knowing most of the strategies in accumulating Bitcoin is good as it helps an investor to know when is the right to time buy aggressively if there are more funds at a particular moment. But it is good to maintain one strategy when investing. I see it as a way an investor can be able to maintain consistency, discipline and most important keep proper record of their investment procedures. It would be easy for them to know when they are doing things wrongly and help achieve the goal faster. Of course, an investor can adopt other strategies in another investment goal, like having multiple Bitcoin goals and using various or different strategies for them.

If they are looking for short term profit then they will be disappointed and you are I know that for us to see reasonable profit in bitcoin investment we must invest for the long term and not short term. That's why it's necessary for people coming into bitcoin investment to have the right orientation/mentality. They have to know on time if are coming into bitcoin investment as a trader or hodler.

When it comes to knowing when to use the other two strategies like buying the dip or lump sum, well I will say that the person who is making his first buy in bitcoin can use lump sum buy and follow it up subsequently with DCA, especially if he wants to own a certain level bitcoin in his possession. While knowing when to use the buy the dip strategy is simply when you see the level of dip you have already predetermined or set for yourself before any dip occurs in the market. This will make you not to lose focus or confused on when to enter the market if eventually dip happens. You know nobody has the entire knowledge of the market and when certain variables will play out, so it's important to always get prepared before the eventuality of any market situation. When preparation meet performance, good result is always birthed.

Adequate income is mandatory to keep investments stress-free. Because investment is only after meeting the daily needs of your family without adequate income system. People's demand is infinite so when it comes to investment decisions have to be made keeping the infinite demand under control especially in the case of Bitcoin with long term goals.

You have to deposit a fixed amount at the end of the week or at the end of the month which must be kept psychologically or else the salary may be spent in endless demands. It is definitely recommended to keep within normal investment limits. Many may be more aggressive in investing in new situations or hoarding bitcoins but this makes them riskier to continue later and they are forced to withdraw their investment due to natural reasons. This is why overdoing it or not taking into account the environment when it comes to depositing bitcoins leads to more financial losses.

Example let's say I want to start investing right now in bitcoin and I have a monthly income of 1000$(it's assumption figures) and I decide that I want to invest about 300$ from that amount into a weekly DCA investment which should be about 75$ weekly invested in bitcoin and then I also had some cash from my savings that I also wanted to use to invest in bitcoin maybe to give myself some kind of head start and the money was about 3000$ and I decide to use 1500$ to invest right away, that is what a lump sum buying would mean.
Lump-sum payment is complete opposite of DCA, you aware that DCA is the purchasing set amounts of Bitcoin at regular intervals, whether the price is high or low. While lump-summing is the act of going all in at once, just like the example I gave about the $3000 and all that. Most people that are financially stable may use lump-summing to start their investment to have some good head start in their accumulation without it affecting their regular life style or tampering with their investment. But if an individual who's not financially stable start his accumulation using lump-summing without any proper planning he or she may endup using the funds that are being meant for their emergency (which known emergency funds) in order to execute a nice lump-sum purchase. So such individual won't be able to sustain his self without any emergency funds which may lead to he or she tampering with their investment , and won't be able to execute his long-term plans, selling their investment in an premature state. It is always advisable to invest according to your financial capability, by starting investment with some nice DCA strategies, so that you can set a proper plan for their investment.

Investment is definitely not mandatory and investment is definitely not extra pressure for us. If we treat investment as an extra pressure then we will never be able to sustain that investment for long and also we will not be able to achieve success from that investment. 

Investing should be treated like all our other normal activities so that we can maintain our investment continuity without undue stress. We need to confirm in advance how much money we are earning and how much money we can naturally invest from the total earned money. Due to some financial problems our investment amount may be less but that should be taken as normal. One month I invested a relatively small amount of money but the next month I invested a relatively large amount of money of my own accord. So we should invest with the amount of money we can invest and maintain consistency of investment.

You know most people are just playing smart , waiting for the price to drop before they will start buying , which Is wrong expecially for time like this , because they may endup missing out big time , even though dip occur before the main surging , they may miss the dip or they may not be able to get themselves some good quantities of Bitcoin because it may not take time before the price will bounce back.

So is better to buy now using DCA strategies, and set some reserve funds incase of any dip occurs, so that one can accumulate more quantities smoothly without thinking of the dip or waiting for a massive drop in price before buying.


Exactly anyone can actually use  lump-sum strategy depending on the individual condition though , and sir JJG have already given some wonderful example already , like winning a lottery, recieving a bonus at work for some kind of job they carried out etc. You can only say that the rich has more advantages when it comes to lump-sum purchasing, like most time due to having alot of cashflow, the money most  rich are using may be higher than an average Man.

I don't really like to play into arguments that rich people are more privledged, since anyone could come into a situation in which they have lump sums available and they are willing to dedicate some or all of that lump sum to bitcoin investing.  For example they could 1) win the lottery, 2) inherit money, 3) have had been investing for 10 years and building their investment portfolio little by little (so they are not exactly rich, but they have been engaging in good savings/investing practices), 4) received a bonus at work for some kind of job they carried out (expected or not expected these kinds of things sometimes can happen to even less wealthy people), 5) they recalculated their various funds (emergency, reserves and float) and unexpectedly, they come to the conclusion that they have an extra $2k that they are able to invest 6) they received a gift from friend/relative/acquaintance and/or 7) a variety of other possible reason they could come accross extra money, whether that is some extra from their DCA amount or maybe it is a more modest amount


My problem with the idea of lump sum is not that it might not ever be an option, but instead many times members here are weighing the advantages and disadvantages to lump sump as compared with DCA, and it is not even obvious that DCA is better in those circumstances that a person has a lump sum that happens to be available to him, and even if the lump sum happens to be available, the amount of the lump sum could still be divided into any of the three categories of bitcoin accumulation to buy right away with some of it, to allocate some for buying on dips and to allocate another portion for DCA buying.

The person  may or may not already have DCA and/or buying on dips in place.. or alternatively the person might already be DCAing at $10 per week (presuming a modest budget), but then if all of a sudden an additional $3k comes available.. there might be choices to allocate $1k to each of the three categories, and that is not even the most logical conclusion, but it is a staring point, and each person might decide differently based on his own 9 individual factors regarding how to allocate that extra $3k that suddenly had come available.


We have to go with where we are at right now.  So if a person might be brand new to bitcoin, and he has an income of $2k per month and expenses of $1,500.. and maybe he already had been investing for 10 years, so he has an investment portfolio (non bitcoin) that is around $24k in value (which is right around 1 year of his salary)  and he has emergency funds and reserves and float in place, and so maybe he has $3k in cash that he can invest right now, or he can put some of that into the other two categories, but he already knows from his regular cashflow (disposable income) that he is able to buy $100 of bitcoin per week.  So he has to decide right now about what to to do with the $3k, and he cannot go back to December 2018 and he cannot even go back to December of 2022..

He has to figure it out right now, and if he is not sure, then he still has to live with the consequences of what he decides to do (or to not do).  What is so hard about it? It is about finding some kind of an acceptable balance, no?  The balance would need to be acceptable to him, and no one else.. no one, except for him, is going to give any shits if he makes money or not... or if he adequately protects himself or adequately hedges his options.. whether he ends up being overly aggressive or overly whimpy..  no body cares. He has to take responsibility for his own actions and outcome regarding whether and how to invest and whether to put it into bitcoin or somewhere else.. Is that difficult? If so, how?

With DCA one can go with Limp Sum and buy the dip. It will some time for a person to figure out when to use the later two techniques (Lump Sum and buy the dip) with DCA. For sure, new one can go with DCA but they will get bored with it initially as Bitcoin spot price may go down and the profit might not be according to there expectations. This is where one has to keep control over his emotions and continue to invest despite the negative trends of the market. The main reason why many fail to get started with Bitcoin is because they left Bitcoin in early stages after seeing the loss. We have seen Bitcoin bouncing back from 4k in Dec 2018 and also from 18k last year. These falls are nothing but golden time to accumulate Bitcoins.   

I really understand what you are saying but it is very important and for everyone to have a broader knowledge of various strategies as it being exhaustibly disscued here in terms of figuring out from what financial stratification you belong to, and for reference purposes. However, the lump sum buying are mostly practice by those in upper class and not for some middle or lower class where identifying your class gives you the preparedness in terms of making an informed decisions towards your investment plan, it pointless for anyone presuming lump sum to be an option when apparently you don't have what takes, everyone has to figure out the class where he or she belongs to in terms of choice of strategies, be it dca , lump sum and the rest of them, which will be a hedge over your planning working towards a successful Bitcoin investment.

DCA recognizes that we can't know what the price will be at any given time. If you lump sum buy on any given day, you don't know if the price will be higher or lower in a week. So maybe buy today and miss out on a better price a week later. With DCA you don't have to worry about trying to guess the best time to buy.

And with Bitcoin, since we have something that basically supercharges Bitcoin investing - the 4 year market cycle - by telling us what periods of every four years we should be buying, we can then use that to our advantage and greatly increase the returns of DCA. So we can DCA only during the lower part of each 4 year cycle, like buying starting once Bitcoin has crashed a lot, and then continuing to buy until it goes above the old ATH, and then wait for the next crash, saving money in the meantime to be able to DCA with extra funds on the next bear market. And with DCA, instead of guessing when to buy during a bear market , and many people would likely lump sum well before the bottom, or assume a lower price is going to come which never does and then they have to lump sum well after the bottom, DCA allows buying consistently all through the bottom.

DCA removes the risk of being wrong about when to lump sum buy, and of course it also means people don't have to save up a bunch of money first before buying. Lump sum buying is ONLY better if you happen to have a bunch of money at an ideal time (bear market) and you guess well enough where the bottom is to get near it.

Getting lucky is not an investment strategy. DCA is the superior investment strategy that decreases risk, can be used strategically with Bitcoin to increase profits over a generic DCA, and is more likely to beat out lump sum buying for many people because of that less risk and timing the market with luck (guessing) not being an important part of DCA.

You are correct that the idea of discretionary income trumps the idea of some strict percentage to invest into bitcoin, even though both can be used as guidelines and/or even aspiration levels in regards to how much a person might want to strive to push himself to target for in his investment, but he still is going to be limited in terms of whether his target percentage is even achievable in light of his actual discretionary income.

So for example if a person knows his expenses are $1k per month, and if he is able to invest 10% of that, then that is $100 per month or $1,200 per year, or $12,000 over 10 years, so then we figure that it is going to take the guy right around 10 years to have had saved/invested 10 years worth of income into bitcoin... so that could help to target the amount and the timeline, but he still has to be able to do it.. so yeah, there cannot be contradictions, and when push comes to shove, there likely is still ONLY so much income coming in and ONLY so many expenses that can be cut.. even though people can work on attempting to being creative in terms of how they might be able to increase their discretionary income... so that it ends up being a higher percentage of their overall income/expenses... which means that they are likely to make more progress in a shorter period of time, as long as they do not end up overdoing it.


There is nothing wrong with engaging in techniques to improve DCA, which truly if someone is new to bitcoin, they might start with a certain weekly amount for their DCA, yet in the meantime, after several weeks, they could be figuring out various aspects of their budget and maybe how to employ their DCA better.  On a personal level, for the first year that I was in bitcoin, I tended to give myself a weekly DCA budget (or allowance), so during the week, I would try to maximize the buying on dips within the week, however, if I had not used all of the weekly allowance by a certain time of the week, I would just buy with the rest of it at that deadline time in each week, since my new weekly allowance would become available at the beginning of the next week... but yeah sometimes going through the process, with the passage of time, I was able to figure out some ways of employing my DCA that worked better for my own circumstances... but also recalculating my situation, that surely went even beyond the first year, since the strategies became different with the passage of time (as you suggested might become the case for anyone going through their BTC accumulation journey) and the fact that I had been accumulating BTC through the previous time and the details of that prior stacking in regards to how much, what was the average costs and considering whether my stacking goals were changing and/or close to being met, helped to inform any changes in my practices.

I don't know why some people are still waiting for the bitcoin price to drop down more before they buy their bitcoin, when they can use the benefit of the DCA method to accumulate as many bitcoins as they want at different prices. Waiting for the Bitcoin price might be a very wrong decision because the price of Bitcoin might just decide to keep moving up to start the main bull run. If it happens that way, the people who are waiting for the price drop have missed out on investing at a very low price.
If you are willing to invest in Bitcoin for a long-term investment, you can withdraw your Bitcoin at any time and still get your profit after some years.

You might be mischaracterizing a bit my  own BTC accumulation journey, since I did not particularly go out to buy and/or accumulate bitcoin in a bear market, and none of us is likely going to know whether we are in a bear market or not or which way the BTC price is going to go for the short to medium term.

So any kind of suggestion that it is best to determine and/or figure out if we are in a bear market prior to engaging in BTC accumulation and/or aggressive BTC accumulation seems to be quite misleading  - and it could cause newbies to wait rather than getting started ASAP..

If you don't have any BTC, then what are you going to do wait for lower prices from here?  Or if the BTC price does not go down from here, then you are going to wait for after it goes up and then when it comes back down, but to where is it going to come back down?

I cannot see how waiting could be a strategy for anyone who might have assessed that he does not have any coins or that he does not have enough coins.

Sure, some folks might come to a wrong assessment that they do not need any BTC, and sure they can do what they like, but they are likely going to end up buying later and at higher prices, so again, why wait?

There are some folks who are worried about price dips coming, and perhaps those kinds of folks will feel better if they hold some funds aside for buying on dips, but even that seems like a questionable strategy for anyone who either does not have any coins or does not have very many coins.


You are saying a similar thing as Mayor of ogba, which is not what I say, and I surely don't know about what to do when the BTC price goes up... I am not recommending anyone wait, even if the BTC price is going up.. since we can never really know when the BTC price is going to stop going up and we cannot presume a correction, a dip or a bear market...

I am also saying that the longer any of us is in bitcoin and we are continuing to buy bitcoin, there likely are going to be periods in which the BTC price is going down rather than up, but we never know how low the BTC price is going to go or how long the seemingly relatively lower prices are going to continue to stay low.

So yeah, if we are accumulating bitcoin over a whole cycle or even over a couple of cycles, we are going to likely begin to appreciate better that there are periods that the BTC price seems low, but also the longer that we are in, we would have had already spent a considerable amount of time already buying bitcoin and probably some of the bitcoin that we bought is going to be at higher prices and some of the bitcoin that we bought is going to be at lower prices. .. so there is going to be a mixture of prices in which we had bought our bitcoin and we can calculate our average price per bitcoin too and we can calculate the extent to which we might be in profits or not.. so those kinds of calculations regarding our bitcoin stash size, its value and where we want to get are more likely to inform us in regards to what we are going to want to do... so it might become obvious in our own context, but not obvious in the abstract, and in the abstract my overall suggestion is just to keep buying no matter what the price for at least a whole cyle, and depending on your own level of buying, you may well need to just keep buying for a couple of cycles before you might start to feel comfortable to modify your approach in a way that attempts to calculate dips rather than just ongoingly buying BTC at any price within the context of your discretionary budget.. and not waiting for dips that may or may not end up happening..


Your example is not bad Troytech, yet I am considering that you are trying to suggest that both Mr. A and Mr. B have the same discretionary income, but they choose to spend their discretionary income in different ways..... so Mr. B is actually spending more money on luxury items of consumption.. so therefore he ends up with less discretionary income after he had made his choices, but largely they started out with very similar levels of discretionary income, especially if we were to really drill down into basics.  There can be some guys who choose to live in a house that has $500 in monthly expenses and another in $800 of monthly expenses, so whether we call the left over discretionary income or not, might be another story since sometimes life choices can take a while to change and even to figure out if it is possible to cut some of the expenses once they had been chosen several years back, yet anyone can still make changes little by little...and maybe even realizing that some of the ways that he is spending his money is actually discretionary, even though he might have had labelled it as needed expenses.  We might be belaboring some of these points too much.
 

Are you going to delay your investment into bitcoin based on your speculation that you might get scammed?  How much of a delay are you going to make?  Does the possibility that you might get scammed stop you from investing $10, $100, $1k, $10k?  At what point does it become more important?

Surely I am not suggesting that anyone is sloppy in their various personal safeguards, but there are likely levels of BTC accumulation that might be able to take place by holding BTC in various 3rd parties even prior to transporting to self-custody - so yeah, the larger the amounts of the investment, then then more urgent the need to employ higher levels of security... and those security thresholds are likely going to trigger at different points for different folks - while at the same time, it seems a bit problematic if anyone is failing/refusing to start to invest into bitcoin because they believe that they need to better learn things about bitcoin security.


Sure I am all for investing 10% or more of the income, but we cannot know if discretionary income is sufficient to be able to invest 10% in cases in which we might not know expenses and $200 is a pretty low income to expect (or presume) that such a person is able to invest - even though I know that a lot of participants in this thread claim to have income levels in such low amounts.


Of course, buy the dip, DCA and lump sum are three separate concepts, and sometimes they can be combined, but the mere fact that they can be combined does not mean that each of them should not be understood in terms of what each of the concepts mean on its own... is there a need to repeat what each means?

Maybe just in regards to lump sum.... it is an amount that you already have and you are considering what to do with it.  Buy all right away, or divide it up.

Another thing that a lump sum could be accumulated into the future.. . or there could be an amount of money that is being saved, but it is not really known how it is going to be used until at a later date... that money could be considered lump sum.. even though it also could be considered part of reserves that are building up and perhaps without any specific designation regarding how such reserves are going to be used - except maybe some kind of an event might trigger that such funds are to be considered to be used and/or maybe a whole rethinking of such funds upon certain future currently unknown events.. and so then some of that amount could become a lump sum amount that becomes available for the purpose of BTC investing.

We cannot necessarily presume lump sum to even be an option, since sometimes people come to bitcoin an they don't already have cash available and/or they might not even have other investments from which they would be able to employ lump sums, so sometimes it does not even make sense to presume lump sum as an option when it is not automatically an option that normal people end up having and even if they were to have some lump sum potentiality, they would first have to designate such amount towards bitcoin investing, which might be an actual obstacle for some folks in which DCA makes more sense for them since they are not ready, willing or able to redesignate some lump sum amount that they might have towards bitcoin investing.

Exactly... its pointless waiting to observe market for what?? Better chance they say which might even be a forever loop 
Bitcoin  waits for nobody... observing can also be used but that should be for those already  in the game and nor even new to it , it could be taking as a factor to buying more Dips which is not bad but on the other hand, I don't know what a beginner who haven't invested a dime observe
DCA and DCA and more DCA  should be the main focus of a beginner .
Although, we can say a beginner wants to learn a proper way to DCA (more appropriate)

You are not really wrong Ruttoshi, yet there still is some need to not overly generalize because surely even within classes of investors there can be some that are more aggressive and some that are less aggressive, which will likely affect the way they accumulate bitcoin, and the extent to which they might remain focused on maximizing their bitcoin accumulation and/or balancing other aspects of their lives and even other investments that they make (and I am not even referring to bitcoin).

Another thing that we know about people generally is that there are not a lot of people who invest in the first place, so really an overwhelming majority of people either don't invest at all or they have trouble even consistently conjuring around 10% of their income in order to invest into bitcoin or anything else, so in that regards, those who do invest tend to either put money into properties or maybe they have some kind of a retirement plan that involves personal contributions - which even the employer might match some of the contributions to incentivize the utilization of such programs.  In countries that do not have some of those systems, it is likely even more difficult to invest  or save, and if there is concerns about the debasement of the currency, that creates additional disincentives to keep any value in the local currency - so yeah, the investors into bitcoin come from a relatively small group of folks who might even learn that bitcoin ends up being an option that is superior to other ways that they might save or invest, so they may well become encouraged to invest into bitcoin and surely to figure out the extent that they have discretionary income that can be used for such purposes.



I agree with a lot of this to the extent that we still might recognize and appreciate that it is neither guaranteed that BTC prices will go up and there also can be some value to not become overly concerned about the extent to which the BTC holdings are in profits during the earliest of years of accumulation, and even to take it for granted that they are going to end up in profits, even though surely there is a preference that the holdings do end up being in profits at some point and also there is a hope that the BTC holdings generally outperform other places that value could be place - especially in the longer term, but none of that is guaranteed either.  So the position size and or the amount that is invested into bitcoin should be tailored to consider various potential scenarios in which bitcoin might fail to perform or there might be other better places to invest.  Yeah, surely many of us are likely continuing to focus on bitcoin, even though the strength of its investment thesis is not guaranteed to continue to be strong - even while it currently seems to be amongst the best (if not the best place) to put extra value (aka discretionary income).


You can do whatever you want. If you believe waiting and studying the bitcoin matter sufficiently/adequately helps you to prepare for up, then that is your choice.

If you don't start investing right away, then you are not preparing for up.

You might believe that it is not necessary to prepare for up.  That is your choice.

Another thing is that the mere fact that you are starting to invest, does not mean that you jump in with all of your savings and/or disposable income right from the start.  There are ways to start with a reasonable position size, and the less you know, the more likely the smaller your initial position size, including maybe the newbie just starts by investing $10 into bitcoin and the tries to figure matters out further from there in terms of the level of his  investment aggressiveness, the frequency of his BTC purchases, his own financial matters including cashflow and discretionary income and the other 9 individual matters, but each of those 9 individual matters is like a moving target in which studying them and learning about them is never completely completed.


Yep.. A lot of newbies fail/refuse to get started investing into bitcoin because they believe that they are merely serving as liquidity for others, and too bad for a lot of them who historically had thought that (and failed to get started) and those who continue to fail/appreciate the value of getting started rather than just waiting around for price drops that may or may not end up happening.


Yes.. and another interpretation of "observe" is to wait... which surely is not a good investment strategy - especially in regards to bitcoin.



There is ONLY so much that I can do in terms of presenting the ideas, and attempting to point out where I believe that your thinking is problematic, and sure maybe it is possible that we still arrive at the same place since we are considering similar ideas but instead placing some of the ideas in extra categories.

There is nothing wrong with prioritizing investments and even cutting various kinds of consumption that you do in order to increase your discretionary income, but still in the end, the investment is coming from extra money that you have that is calculated after you have considered your expenses, and the mere fact that you are wanting to give the investment equal priority (or similar priority) as compared with expenses that you might have is still likely coming out of the fact that you actually have discretionary income, even if you might be calling it something else... and maybe even if you are suggesting that you can go without some of your expenses and still be fine, which shows that they were not basic expenses but instead somewhat discretionary expenses and people are going to likely draw the line in different places in regards to which expenses are needed versus which ones are luxuries and also considerations if their body is strong enough to eat some foods with inferior ingredients that might cost less than the more nutritious options.


I had a few back and forth discussions with bitmover in regards to the two main tools in my sustainable withdrawal thread, so many times I had attempted to emphasize with bitmover and with other forum members that I presume that the context of using either of the two main sustainable withdrawal tools is to get your BTC holdings to a point of over-accumulation first, so it becomes more problematic (but not impossible) to use the sustainable withdrawal tools that I am suggesting (and within the context that I am suggesting them) without first reaching high levels of BTC accumulation and/or perhaps coming to an assessment that you had actually overly accumulated BTC.  

The two sustainable withdrawal tools that describe (one time based and the other price based) could also be used in some trading contexts - even though I do consider them to be more valuable when assessed from a perspective of having had already reached some level of BTC over accumulation.. so I am pretty sure that bitmover was considering my comments in that light and coming to his own assessment that he likely had not yet accumulated enough BTC in order to be starting to employ much if any BTC selling tools.. .. another thing that I frequently spout is that selling BTC is not a good strategy for accumulating BTC, and so it sometimes can take a lot of time to get out of the selling mindset since many of us likely realize that in theory selling higher and buying lower will allow the buying of more BTC than the amount sold.. but just because there is a good and/or reasonable theory that does not necessarily mean that it is a good thing to actually attempt to practice rather than mostly focusing on various buying strategies, such as DCA, buying on dips and lump sum buying.


I don't disagree with anything that you are saying surely guys might have some difficult times figuring out what there investment timeline is exactly, even if they might consider that they have a relatively long investment timeline of 4-10 years or longer.. or even 10 yers or longer rather than your example of 5 years.. but even at 5 years, there could be a concern about reassessment, even though no one should consider that he is so locked into his investment that he is not able to reassess and tweak from time to time, which also might be considering changing the amounts he is putting in and the timeline and other ways that he is managing his budget, and also if he might have some lifestyle  considerations that he is accounting for that causes him to want to consider that he might start to cash out of his bitcoin in 5 years or so rather than allowing the investment to ride for longer.

True, of course everything we go through requires a long time and a process that is not easy to actually be able to produce the benefits that we expect, although there is no guarantee of success but at least by putting dedication and consistency along with strong discipline, the results will not be too disappointing, and yes it is true as you say that however bitcoin is not a middleman or a quick way to get rich, there are no significant results with little effort, unless it is luck, but luck is not part of planning. In the end, it still requires struggle, hard work, good discipline and consistency to stick to the budget allocation plan on our bitcoin accumulation if we really want to reap satisfactory results at the end of the planning in the future.

But yes it is a fact that there are always some people who misunderstand investment, many come and get involved in the world of investment because they see the success of others, they think that they will also be able to have the same fate as others they see, actually that is not wrong because it is part of constructive motivation, but what is always the problem is that they start their steps without being equipped with a thorough understanding and knowledge, such as only seeing the profit opportunities but not considering the possible risks before making a decision which in the end in some cases they are surprised when they experience losses, or feel very tense when the amount of their allocation is reduced due to fluctuations so that they stop their accumulation in a state of loss because of the fear of experiencing greater losses. So it means that while we make profit opportunities the main goal in investing, it is also important to consider the risks to test our readiness.

Buying in the dip is pretty cool cause that's the point where most people without enough funds always use to invest but sometimes it is not necessary to wait till dip period before investing cause after dip sometimes it will still continue to dip the more untill it then skyrocket. One thing I love about investing in  Bitcoin is that no matter the dip it will still appreciate and put smiles on someone's face.

This is why an investor must have a discretionary income in which he can  calculate from on how much he would be using to invest in bitcoin regularly either weekly or monthly, and also channel the rest to build up his emergency funds so that he can be investing and building his emergency funds in order to him to have full confidence on his bitcoin journey and hodli for long. Emergency funds are used for very critical case scenario like lost of job or the roof of your house got pulled off by storm. These must be fixed immediately to avoid for damage.

If you have already build up your emergency funds to a decent size of 3-6 months, you can then channel that money that you are using to build your reserve funds, since reserve funds are back up to your emergency funds so that you don't touch it only when a real emergency occurs. Reserve funds are used for repair of car or buying a new car, buying bitcoin at the dip, buying of jewelry. If you have a good reserve funds, the next is your float, which you can use to buy gifts, go and eat in a good restaurant and many more.

So far when all these are put in place, your bitcoin journey will be smooth as long as you just keep on accumulating and increasing your bitcoin stash.

Isn't something like this often discussed before where in the end a reserve fund or emergency fund or whatever it is called must exist.
All those who have income and want to do good management must of course have considered this as an unexpected budget and that is the function of the reserve fund that must exist in financial management.
So that the division in this case apart from the basic needs that we must calculate, we must also plan for other unexpected needs from the start so that when things that are not wanted to happen such as a car that is damaged and must be repaired, a house that must be renovated and others, we already have a budget to cover it so that we do not need to take from the funds that we have posted from the start.

As for in the end this is used or not it does not matter, the most important thing is that this must be calculated from the start so that we do not have to look for additional money later.