Topic: Buy the DIP, and HODL! - page 23. (Read 138583 times)

As a newbie or someone that is new to bitcoin investment, your attention should be more focused on accumulating bitcoin with the DCA strategy because it will help you to accumulate bitcoin consistently at any given price and also help to control your emotions since you are not yet used to the volatile part of bitcoin. Since bitcoin is a long-term investment, both investors who are using a lump sum, buying the dip, and the DCA strategy to accumulate bitcoin need to do that with their discretionary income so that they will comfortably sort out their daily expenses, which will allow them to hold their bitcoin investment for a long term since they didn't use the money that is allocated to solve their daily expenses to invest in bitcoin.

Fair enough that largely you have been improving your bitcoin focus, and largely you have two years of such improved focus under your belt, and even though none of us (besides you) can really know the various ways in which you can increase your BTC accumulation aggressiveness, without over doing it, there should be a bit of a presumption that as you learn (and through two years of pretty solid experience), you are able to tweak your approach..

and so there are presumptions that you should be able to increase your aggressiveness, yet there also could be times in which you come to realize that you had been going too hard and too strong - and also recall that there is likely an over-representation of normies who consider themselves to be bitcoin investment geniuses (are you one of them?) since they get the false impression that they are smarter than they are, merely because there has been almost no way to fail in bitcoin in the last 2 years since the BTC price has pretty much continuously gone up during that time.

Each of us has to attempt to retain some level of humbleness in regards to realizing that we might not really know how aggressive that we should be and how much aggressiveness might be too much, especially since there likely could be a considerable amount of turbulence in 2025, including that we may or may not end up getting a blow off top in 2025.. yet we cannot even be sure about that.. so we have to try to protect ourselves no matter where we are at, and surely there has to be some level of good feelings that any of the guys in bitcoin are going to have if they had been employing relatively aggressive BTC accumulation in the past 2-ish to 3-ish years...and many of us surely start to feel good when we have on-paper profits in our bitcoin holdings and even a decent amount of cushion between our average cost per BTC and the current BTC prices....

Some guys will overreact and even end up screwing up based on their perceptions of the "right thing to do," and in the end, it can continue to be challenging to even get through a whole cycle of ongoing stacking and perhaps even also realizing that true levels of comfort may well not really start to materialize until 1.5 cycles or more.. of course, depending on circumstances, too... and no one is going to save any of us or feel sorry for any of us if we end up screwing up within our own figuring out of whether to be aggressive and/or how aggressive to be or if we might end up erroring on the side of being too aggressive, yet not realizing that we had gone too far (or we had not gone far enough) until after we had already screwed up.

The DCA investment strategy is not only adopted by newbies rather it is a method of investment that reduce risk of investing on the investor most especially when the investor don't have so much capital to adopt other  investments options hence, both experience investor without capital still adopt the DCA strategie.

Can you try to be more realistic with your examples?

Do you think that most normal people have $2 to 4 million sitting around to invest?

Try to share more realistic examples, and yeah sure there are some folks that have lump sum amounts available.. either they have the amount that comes to them suddenly, or they can draw the lump sum amounts from other locations (investments that they have).

I would suggest that even someone who might have investments into other things, they are frequently not going to want to cash out of their other investment and put that into bitcoin, even though surely there could be some cases in which they will make that kind of a choice.

Giving more realistic examples will be helpful, even though your overall point about lump sum investing into bitcoin surely is not a bad one, since DCA and lump sum might not even be very different from one another, since many times folks will DCA into bitcoin with as much extra money that they have available.. so they are not necessarily purposefully slowing down their investment into bitcoin, so if a person has a lump sum amount that either comes available or that they can make come available, it may be reasonable for them to buy bitcoin right way with that amount rather than delaying with DCA or even with buying on dip, even though surely someone who has a lump sum come available to them will tend to have more options than a person who is completely relying upon any extra cashflow that they might get from their regular income to buy bitcoin.

It is important to invest and hold Bitcoin. It is not very important to focus on how you are investing. However, for a newbie, you can recommend DCA. For experienced people, I would leave it to them, because they know and can use different investment strategies. DCA is not the only investment strategy, but DCA is the most discussed because it does not confuse newbies and allows them to invest without much knowledge.

The DCA investment strategy is not only adopted by newbies rather it is a method of investment that reduce risk of investing on the investor most especially when the investor don't have so much capital to adopt other  investments options hence, both experience investor without capital still adopt the DCA strategie.

The DCA investment strategy is not only adopted by newbies rather it is a method of investment that reduce risk of investing on the investor most especially when the investor don't have so much capital to adopt other  investments options hence, both experience investor without capital still adopt the DCA strategie.

It is important to invest and hold Bitcoin. It is not very important to focus on how you are investing. However, for a newbie, you can recommend DCA. For experienced people, I would leave it to them, because they know and can use different investment strategies. DCA is not the only investment strategy, but DCA is the most discussed because it does not confuse newbies and allows them to invest without much knowledge.

When a person is skilled in investing and knows the investment strategies, I think it is enough to advise such a person to hold the investment for a long time and be consistent in investing. Although they know these things, sometimes even an experienced person can lose control or get greedy for profits. The DCA method is beneficial for both newbies and experienced people, but there is no reason to look negatively at other strategies if they follow the rules of investment. You need knowledge for different strategies, DCA may be the best for you as a newbie.

even if we aren't sure when the dip might come, I always tend to believe that every moment is the dip so as to keep my DCA going. Consider the highest high of bitcoin in the last few years, you'll discover that in a long run that will be considered as a dip compared to the price to come. DCA and buying the dip is the best strategy I've come to realise.

You are very wrong here, using lump sum to accumulate a huge amount of Bitcoin at once is not a bad strategy and will not affect your financial status except you don't have the financial strength to use the amount you used in accumulating it, there are some set of people they see DCA strategy as stress to them because of there busy schedule so they just buy at once and hold and I see nothing wrong with that, for example someone decides to use $2millon to $5million or even more to accumulate at once using the lump sum strategy and then hold it for 10 to 20 years, do you think he won't be successful in that his Bitcoin investment.
Some set of people in this thread only believe the best strategy for Bitcoin investment is DCA strategy forgetting that humans are different and that is how there financial strength, time and the rest is different what may go down well with you may not with someone else.
@sotelorene saying in his write up that buying Bitcoin at once may affect your financial status without proper explanation is missing leading, yes DCA strategy is good so also lump sum strategy, what matters is if such strategy will be comfortable for you.

DCA is not the only strategy to invest in Bitcoin. There are different strategies for investing, even different investors adopt different strategies for investing. Those who don't have a lot of money to buy a large amount of Bitcoin at once but have a fixed source of income can opt for the DCA method of investment. This method will be most helpful for them as they will buy bitcoins with fixed amount of money periodically and increase their investment.

Yes, not every investor needs to invest in DCA method. Now not everyone can afford to invest a lot of dollars together. Assume that in my case it is not possible to invest large amount at once. So what should I do? Of course the best way for me is to invest in the DCA method.

The DCA method certainly has some advantages.

If you invest in DCA method you can buy bitcoins at average price. Example you buy today at $98k may drop a bit after few days.

Investors gradually and regularly increase their capital by buying Bitcoin, so that they can create a long-term investment that is not affected by market fluctuations. This is especially effective when there is volatility in the market, as it helps to reduce the average value of the investment over time. In this, we can see that a secure future is established through DCA.

Those who evaluate Bitcoin positively should continue to save and consider it as a safe source for the future. It is essential for all of us investors to evaluate Bitcoin and have faith in saving.

When the Bitcoin market is down, it can be a great time to buy. Investors can easily learn that there is a greater chance of profit in a bear market if they have a long-term perspective. but, since we do not understand the Bitcoin market in advance, we should continue to invest in both types of markets. Instead of becoming a trader who is greedy for high profits in the short term, we should build our future through long-term investments.

No matter how volatile the market is or how bearish the season is, it is important to focus on buying and holding Bitcoin with concentration, with the right perspective and plan.

You need to know that every investors needs discretionary income to invest in Bitcoin, it seems you don't understand what is meant by discretionary income, for clarity discretionary income is more like the left over money after ensuring that whatever that is considered to be a basic needs has been taken care of. Every investors must primary figure out whether he or she has a discretionary income generally before ever considering investment in Bitcoin. A contractor that buys Bitcoin whenever he hits a contract is also dcaing within his or her discretionary income.

But for example, does anyone know when this DIP season will come? The answer is No! So what faith does an investor have in waiting for DIP? Is there a DIP coming up? How does he know that DIP will happen tomorrow, next week, or next month? Those who wait for DIP only miss the opportunity—that's it.

Such investors only wait for the deep season, and on the other hand, Bitcoin continues to be valuable in an upward trend, so the person who waiting for that DIP, he just misses the opportunity of the upward market.

If an investor have the financial leverage to buy a very huge chunk of Bitcoin at once, without it having a dent on his finance, it's not a wrong thing to do in my own understanding.
The most important thing is having the finance available to fend for your daily needs and an emergency funds to address any emergencies that may arise in the future, that's it.
Am saying so because I knew of someone that is a contractor, he only buy's when he hit a contract, not regularly but when the funds is available he buys, and he has been able to accumulate a good stash of Bitcoin with that.
The DCA accumulating strategy is mostly meant for those investors that have decretionary income coming in weekly or monthly and we all know that not everyone has the leverage of earning such way, but the most important thing in my own opinion here is buying Bitcoin and not tempering with it in the future

You mentioned Must with DCA.

I think you are wrong, there is nothing that requires investors to apply their respective strategies.
They are interested in buying at once, it is not the wrong way, right?
Investors prefer to buy at once and save it.
Many also buy in stages with DCA but do not require all investors to apply DCA.

As long as you hold money, that's where the buying strategy lies.