Topic: Buy the DIP, and HODL! - page 228. (Read 135912 times)

People's expenditure is really increasing according to income, even also due to the surrounding economic crisis and rising commodity prices. But the mentality of bitcoin hoarding is possible even with low income because I know many people who earn $200 and still hoard $10 bitcoins and many who earn $300 and still can't hoard it. Social identity and status are involved here because if a person has more income, he does not want to hurt his family by reducing expenses and demand is constantly increasing. In this case, even if reduce the personal expenses, it is important to carry out the process of depositing bitcoins for the future. But in many cases this is not possible only because of their dignity.If the amount of disposable income is not adequate for investment, he should consider the process of its accumulation. He should look forward to more potential income streams where his bitcoin accumulation process is seamless and consistent.

I don't think there is any need trying to save a big amount of money before investing into Bitcoin, for you can use the amount readily available to start up your Bitcoin investment journey for you can be waiting to save much money before investing in Bitcoin while opportunity is passing you by, for you can start with the little you have but when investing make sure you invest amount you can afford to loss and also plan for long term investment. With the help of the  DCA strategy you can accumulate more Bitcoin little by little on a regular interval either weekly or monthly as the case may be and set aside an emergency, reserve and float fund incase there is any emergency or unforseen circumstances that may arise so it won't warrant you selling out your Bitcoin hodling for Bitcoin is best sighted and profitable for the future or Long term planning like 4-10 years and above.

See this matter of investing in bitcoin is also something we should take seriously as much as we need to plan for our daily needs, we also have to understand that needs don't finish and they keeps coming up on daily basis, but as much as we have to take care of other things we have to understand that we have to take our investment in bitcoin very serious too. If someone is making a monthly income of $200 and he is investing only $10 I think it's very poor. If you are making monthly income of $200 you should at least invest 10% of the money which is $20 and I don't think it's too much. If $190 can carry you for a month, I think $180 will equally be enough to carry you for the moment. In as much as we are investing, we should also target to have a reasonable amount of fraction of bitcoin and to accumulate it, we have to make some certain level of sacrifice.

It does makes sense to include security in the discussion as per the newbies. Most of the people that are asking for help were the newbies when they have been hacked, phished and scammed. So, it's essential for someone who is investing on Bitcoin to know how to avoid those potential threat to their investment. Yes, we all want everyone to succeed but it's not going to be enough if you only know how to invest but you should also know how to spot those scams and other malicious threats that might steal your asset.

I bold the part about how many are falling for scams. Because of the thought that are given to them about aiming to earn with high chance. Well no doubt doing it on Bitcoin gives them that but if they're going to focus on it, they might just land to the scamming tactics of cons.

Actually, in planning the investment you want to make, it is better to focus on your monthly income, where you can budget 10% or 15% for buying Bitcoin, isn't that simpler to understand. Apart from that, don't complicate the situation where you have to take a loan to invest in bitcoin because that is not a very good action. Therefore, invest as much as you can. If you can afford to buy Bitcoin with $20 per week, then apply it every week.

Well, if the points you convey are of course correct, but sometimes your monthly spending needs increase and will you miss purchases that month? Now, in this case, it must be underlined that when investing in the long term, initial planning is of course required, which is a priority so that this will not interfere with spending on any monthly spending needs.

In essence, people who invest are those who want to change their fate in the next decades, therefore they need to develop a wise strategy so that their investment can run smoothly. Accumulating regularly every week is a pretty brilliant idea and also increasing the budget to buy aggressively is the second option in long-term planning. But you can organize each strategy neatly and can also go hand in hand with a new strategy by acting aggressively when prices drop and also buying in a lump sum to increase BTC holdings.

I really couldn't grasp the first part of your post, i understand that you are proposing that we prioritize our bitcoin investment but that in no way should be out of our disposable income, whether you like it or not our daily needs comes first before investing in Bitcoin and the best we can is to limit some of out extra expenses to get our discretionary income up and invest in bitcoin.

A disposable income doesn't or in no way is the left over of our income, its rather what is left after all our expense has been removed, and with that amount we can chose to invest it in bitcoin, you can't be insinuating that we put bitcoin investment first and then take what is left for expense, we woudl surely regret that cause we can get into unnecessary debt or emergencies due to such poor cashfkow management decision, so it's always going to be better toninvest out of our discretionary income.

It all depends on the accumulation stage of that investor that lump sum will be a good accumulating strategy for him. Someone new into bitcoin and wants to start investing does not need to use the lump sum strategy because he wants to buy at the dip. That investor needs to use the DCA strategy because it is most convenient and flexible as long as you are using your discretionary income to invest in bitcoin often either weekly or monthly, so that he can gradually increase his bitcoin portfolio as time passes by.

The reason is because for you to lump sum, you need a good amount of money, and if your discretionary income cannot give you such amount, you will have to start saving this money in the bank for it to get to the amount that you feel is cool for you to lump sum with. Some people can even take one year or two just in the name of piling up fiat so that they can lump sum at the dip. Wasting the time that those money that they are piling up in the bank should be channel into bitcoin as it comes in so that they can start piling up in bitcoin than fiat that depreciates overtime.

Another disadvantage of buying once and not buy again is that, you will not be able to buy bitcoin at different price level which is the trick of using DCA to take advantage of the volatile nature of bitcoin. You might lump sum today, and bitcoin price dips, you will be at loss not until Bitcoin price goes higher the amount you bought. This is why new investors should only focus on the DCA method in the beginning, which gives them the opportunity to buy with whatever amount of discretionary income that they have also at different price level.

Lastly, you will not be able to accumulate the amount of bitcoin that an investor using DCA method buying always without stopping every week or month will have in the same duration of time. This means that his bitcoin portfolio will be bigger than yours, likewise the profit.

If an investor have reached 50% of your bitcoin portfolio and above, you can use lump sum. However using both DCA and lump sum after two years of your regular DCA buying weekly or monthly, is very good if you are opportune.

You are still struggling a little with what a discretional income is, investing from our discretional or disposable income doesn't mean in any way that we are neglecting our investment in bitcoin and doesn't mean that its some kind of left over or little amount.

A discretional income is what is left after we have taken out the money for our necessary expenses, I think i already gave you an illustrative the last time but I think I'll have to start all over,
Mr A is earning a 1000$ and lives in a small house with little bills to pay, so after he has taken out his necessary bills and expenses he ends up with 500$ in his discretionary income and can decide to keep an extra 100$ for floats and invest the rest into bitcoin on a weekly basis and this is achieved because he has little expenses to make and hence his discretionary income is bigger after he has removed the necessary expenses.
Mr B can also be earning same amount and has a higher expenses based on the kind of house he chose to live and lifestyle he has so he winds up with only 300$ as a discretional income after after his expense and decides to keep an extra 150 floats for enjoying himself and invest 150$ into bitcoin.

So in essence the discretional income is determined by how much of an expense the person has and how much he can avoid out of his income, and at same time it's also possible that the person can chose to favour other things than bitcoin investment with his discretionary income.

If you are not doing DCA and trying to buy only on Big Dips, then you need to continuously remain in touch with Bitcoin price and try to figure out yourself dips and big dips. The only thing we don't know is that the price we buying is the bottom or just the start of dip. These are things you have to keep in mind if you are not doing DCA.
If you are not in DCA and have huge cash then buying at one price is also a good option provided you are willing to HODL for a longer duration. Lump sum investment becomes more profitable if you correctly caught the big dips. But again there are trade-offs, in Nov 2018 price of Bitcoin was around 5000$ while in Nov 2021 price of Bitcoin was around 65000$. If you have your Lump sum investment at 5000$ and you are willing to HODL for 4 to 5 years then results will be very much positive.

Everyone has their own way and personality in planning their investments, as well as owning Bitcoin for the long term which can also be considered as an investment in their own future. Because if someone doesn't want to own Bitcoin at times like now, of course there is a big question mark for that person that maybe he still lacks the money to buy it. Or he still lacks knowledge in understanding Bitcoin so that he still hesitates to believe in Bitcoin in the long term and if the reasons are more technical. This shows that you yourself are a trader who likes to see profits in the short term by understanding every Bitcoin price movement itself through the charts in the market.

He speaks more in Trading view of what accumulation should be. I don't doubt his opinion because every has a say, but looking at candlestick doesn't mean you understand market dynamics.
Moreover we share idea concerning strategy and accumulation of Bitcoin not necessarily candlestick or trading whatever.

Investing in Bitcoin isn't a big deal as we take it to be, this is simply understanding;
 what investing really is
 what is the potential of Bitcoin in the nearest
 future?
 what strategy can i use?, what my target and
 goals?
 What's my expected return?
 Am I ready to accept whatever outcome (Risk)?

Once, we get over this questions we are good to go, then we simply accumulate and hold.

Personally, bulk buying of Bitcoin isn't my thing, I have never tried it and I wouldn't say I hope not to, I would like to if the opportunity presents itself but, am not sure am going to plan for that by having to save up some money while waiting out for rye market to dip. No, that's not want I would want to do or advise of anyone.
At the end, technical analysis isn't exactly bad though. It gives insight not on an individual perspective but on the whole of some possibilities that could be expected with certain moves on the charts. Sometimes, it plays out and at other times, it doesn't.
Hence, you don't base an investment on that.

This is why DCA offers an uneven advantage as, it doesn't give any of these means to analysis a priority but centers on the final or expected goal, with patience to serve as the straw on the paths to your goal.

Yes it's very important to study very well about bitcoin before adventuring into investment and also know how it works in Oder not to fall victim of scammers and not to lost a reasonable amount due to lack of proper learning or understanding. but I think when they said newbie can invest in bitcoin does not implies about short time investment like gambling or Trading which we are not discussing here but specifically and strategically on long term investment and  a specific and speculated time horizone so surely its not a bad thing for newbies to learn about bitcoin properly before investing, but the aspect we majorly emphasis on is that if they have the basics skills about bitcoin, how it works, how to buy or sell and the right wallet and address it should be send to, then such person can be able to start accumulating. And note before starting to accumulate, the person in question should be able to have a steady source of income to be able to have a regular amount in his discretion or reserved to be able to invest on weekly DCA or buy the dip and HODL according to your discretion or float. Not just having a small amount and you start to invest without having a backup capital to continue the investment for as long as speculated.

I know you are not a regular poster of this thread and have not comprehend the meaning of the thread and all what it entails or talks about, but I will try to explain more to you for clarification. a HODLer usually have a longer time horizon compeard to your expectations. A HODLer does not buy on bearish season and sell on bull run or buy dip and sell when it high
But a HODLer usually have a discretionary fund Which is equivalently a reserved fund which has many functions. It is used to buy bitcoin on a regular basis every week known as dollar cost average (DCA). Which is just a regular buying and does not think about the market ups and downs. Also buying the dip which means when the market is bearish a HODLer will use some portions of his reserved to buy the dip depending on how he feels like to buy. This method will recover some lost amount when the HODLer may have bought higher in the DCA method. Lump-sum can also be Buying once at a go depends on how much you also feel like to buy for a specific period of time. And such Investment will not affect your discretion. So a HODLers metal reason is far beyond what you think and they stand a better Position to make more money in the future after many having. And also know that HODLers time horizon takes at least 4-10 years interval, and 20-30 years at most. When talking of making profit in bitcoin, think of a longer time duration.

Understanding the system does not in any may mean we must watch the candle sticks. Watching of candles stick is talking more of trading and of course that is not what we are talking about. You need to start investing in bitcoin than watching those candle sticks of yours because that will delay your investment approach. I think it's important to note that you have to start investing in bitcoin and stop procrastinating and looking at bitcoin movement because surely it not a stable coin but a volatile asset that will increase over time. Surely there is hope and the future of Bitcoin is bright if you can only start investing now and stop watching at those fucking candle sticks.

 

The risk level is relatively high in short-term investments because they are always interested in buying BTC at a dips price but they forget that it may dips further. They may even fall behind the sales target at some point. Sometimes technical results may not work because market conditions are a reflection of buyer and seller interactions. Normal inflation and environmental factors may affect the market which is normal. However, DCA method of buying BTC should be considered for easy continuation of investment. Through this strategy, the objective of buying at regular intervals is a mixture of different prices in the market, which is to reduce the level of buying when the price is high and to increase the level of buying when the price is low. As a result, more BTC can be accumulated for the same price. There is a common saying in the market that investing at the wrong time leads to more losses for any investor. But if one starts DCA in bullish period and keeps buying target at regular intervals for long term then his stash will gradually increase and may be beneficial for him in future.

Perhaps you might be right with your assumptions but you sound short term minded. certainly we have come to realise that the volatile nature of bitcoin has a crucial benefit for investors which means the bearish or downward trend of bitcoin is an opportunity to grasp more bitcoin to our portfolio as it serves as a discount in terms of purchasing power.

One thing a lot of investors do not understand is that no matter the bearish wave bitcoin seems to experience it would still not change its nature as 0.0050BTC will always remain 0.0050BTC, what only changes is the price or value attached to the number which you have in your portfolio, so as the price goes up above the entry price you're automatically in profit which is totally nothing to worry about as long as you're investing in bitcoin for a long term purpose within a 4 years circle of bitcoin one will surely be in profit which is not even enough to be classified as long term holding but seems durable to some kind of investors.

Apparently the over point here is keep buying the dips and hodling just as the title of the thread says selling is not an option except you have reach a good position or status where you have at least up to 30% percent of your income in bitcoin which is not achievable in a short term mind as you assume for selling, when such status quo rich has been met one could think of start using the sustainable withdrawal method to take profit but at this point where this position is not met yet buying the dip, DCAing, Lump sum and hodling is the best for an investor as you reagansimms and everyone else here who haven't reach the status.

The example shown by JayJuanGee can be used by anyone who wants to get Bitcoin when the price is cheap and indirectly he also teaches Bitcoin investors to take advantage of this moment to collect as much Bitcoin as possible. This method is very easy to do, buying at a cheap price and selling it again when the price is high is the goal of investors to get the profit they want. Accumulating Bitcoin when the market is entering a bearish phase will make you calmer and able to hold Bitcoin in the long term without having to worry about the price going down further. The great potential that Bitcoin always presents will allow you to collect Bitcoin at a cheap price in greater quantities.

Collecting Bitcoin when the price is at its peak will make you have to wait longer to get a profit, usually when the price has reached the peak it will experience a sidway which makes your assets experience a decrease in value. I prefer the method used by JayJuanGee because it will give you peace of mind when investing and has the potential to get bigger profits. Another advantage of buying Bitcoin when the price is cheap is that you don't have to wait long, usually the market will experience a Bullish phase after a downturn in a Bearish period.

Normally, buying bitcoin in the bear market is the best time to accumulate bitcoin because we will accumulate more bitcoin with a lesser amount of money, and the bear market will facilitate us to achieve the quantity of bitcoin we want to hold because bitcoin is always cheap at that time. For instance, just like JayJuanGee accumulated most of his bitcoin holdings in the bear market, when bitcoin was very cheap, it helped him achieve the quantity of bitcoin he wanted to hold quickly. JayJuanGee can decide not to accumulate bitcoin again because he has already accumulated enough bitcoin, which is very much okay for him. But that doesn't mean that accumulating bitcoin when the price is at its peak or bitcoin halving has happened is bad. It only means you will be accumulating bitcoin when it is expensive, and you will need good capital to help you accumulate a good quantity of bitcoin on time because the demand for bitcoin is high, scarce, and expensive to accumulate.

25% is quite attractive to apply, but as I have followed in this thread, many people apply 10% to invest in bitcoin. Of course 25% will be quite large for you to allocate, but if you are able and it doesn't interfere with your living needs then do it according to your plan. Of course, your BTC holdings will increase even more if every month you are able to allocate 25% to buying Bitcoin.

Of course, the additional income you get from your monthly salary is certainly very good for investing in Bitcoin and I support the steps you take in your investment journey. So, if the duration of your investment is 5 years, of course that is also good, but it is still a good idea to buy it regularly every week.

So to help you, maybe I found one of the best articles on investing in bitcoin, although it is almost the same, of course this will increase your enthusiasm to continue holding bitcoin.
https://thecollegeinvestor.com/42217/how-to-invest-in-bitcoin/

okay indirectly you are saying that maybe in this case the accumulation is too big but as long as we are able then why not because after all this is not about our own ability in the end right? say indeed it is 25 percent of total income if indeed they can cover it then I think it is not a problem because after all when we are in something (including in bitcoin) then indeed we must be able to consider for some period of time ahead and again in this case I prefer to divide it periodically so for 12 years it is too long for me so 5 years is enough and when you consider the performance of bitcoin during that period (I want to take 5 years) as the timeframe I'm using right now and with the economy getting tougher in the end it's also predictable and we're also not likely to just stay at $300 for personal income because when the economy goes up then in this case the salary in our job usually follows in order to be balanced and that's been happening in the last few years so in the end when we can afford to make 25 percent of the initial budget then it's not a problem as long as we're willing to accept the risk.
In addition, returning to the initial discussion about capital in the end this is also important because investment can also be a business and we must know how much we spend on accumulating bitcoins that we buy from the beginning to a certain extent consistently and how much profit we get after we invest in that period of time. It becomes an important part because after all we are in bitcoin is for profit and financial freedom so the profit factor even though it is only a figurative expression because the bitcoin remains the same only the value is different must still be considered.

Perhaps the word beyond and/or over definitely will put one into some kind of trouble for doing whatsoever whether investment or any kind of thing as long as it takes the extra ordinary it could lead to some kind of predicament but in terms of investing in bitcoin, I do not agree with some folks point of investing the left over of their income into bitcoin which is in disguise put into the word disposable income whereas what they mean is absolutely an unacceptable view of investment in bitcoin to be basically from the fag end of ones daily, weekly, and/or monthly expenses which at the end might end up being some kind of garbage amount that could be less than what is necessary for an investment. But that as it is doesn't mean one should prioritize bitcoin investment to a psychological end of being inappropriate but take it as a necessity.

The idea of cutting down some expensive is quite expressed in your example of being able to drive Toyota instead of a lambo at some point it would be necessary to take such an action but where one must have reached a reasonable portfolio, ones preference of lambo might better than driving a Toyota of course what's life without making some memories count. 🥸


You seem to be fighting with the idea of discretionary income, which seems like a semantics fight rather than a substantive fight... since surely you seem to realize and recognize that there may well be limits on how much any of us is able to invest into bitcoin on a weekly/monthly basis and there are ways that we can attempt to prioritize our expenses.. or even work on ways to increase our income.. .. so yeah, no problem with providing examples in which priorities might be changed and still be within bounds of discretionary income in order to invest into bitcoin or however else a person might choose to invest his time, money and/or energies. [/quote] Apparently, it sounds like I'm obviously fighting the idea of discretionary income but perhaps I'm only of the opinion that some kind of folks prioritize luxury or some kind of lifestyle thats not healthy at some point over investment, which is irrational to an extent. From a clear point one can increase his or her work life, do extra jobs to achieve his or her preferences but not cutting down a good quantity of their supposed investment capital to fulfill some kind of lifestyle that could put on hold for a moment hence achieving a necessity like bitcoin investment.


Sometimes ago I was reading one of your works @JayJuanGee where I came across @bitmover saying he was going to continue accumulating bitcoin after some quality conversations with you JJG, I felt at that point he must have been feeling his accumulations was already perfect for himslef but after few constructive discussions he then realised the need for him to keep accumulating bitcoin.



Perfectly explained here. Perhaps I hope you @Troytech understands what JJG's explanation points out.