Topic: Buy the DIP, and HODL! - page 244. (Read 136074 times)

We seem not to understand the need of the capacity of any individual before investing. I don't suggest anyone struggling financially to invest in Bitcoin, look for work or something that will generate a suitable income for you, so as to ease your quest for short term profit and also fingering your investment funds.

Then you can talk about investing within your means, allocating your funds properly. So you don't exhaust yourself, as simple as it should be.

If we are all to depend on our respective country economy, then there is likely occurrence of not meeting up to target with our finances because we will be limited to so many things, bitcoin has made it possible for everyone's financial independencies, this is how its been expected for us to have freedom from the use of a decentralized digital currency as bitcoin, whereby when we adopt and invest in it, we are not going to be affected by the way of the centralized economy and system of government in the financial sectors.

One of the benefits of accumulating bitcoin with the DCA strategy is to control your emotions, and your idea of accumulating bitcoin with the DCA strategy cannot help investors control their emotions because they are interested in timing the market to buy the dip. Anytime they accumulate bitcoin and there is a little dip, they will regret buying bitcoin at the wrong time. The DCA strategy should be done in such a way that we set out a particular date to accumulate Bitcoin monthly. For instance, we can set out to accumulate bitcoin every 5th of the new month since monthly salaries are paid at the end of each month, and sometimes it might be delayed. And when the date comes, we can accumulate bitcoin even though the price is increasing or decreasing.

If we are purchasing our bitcoin on a centralized exchange, that doesn't mean we should be withdrawing our bitcoin anytime we purchase bitcoin. We can withdraw our bitcoin when we have accumulated bitcoin worth $500-$1000, so we will spend less money paying for the centralized exchange transaction fees.

Yes we really need if not sufficient a lot more ways to get a proper fundings since aside for taking good care of our investment there are other personal things that need to consider. For example we need to pay our bills,foods,rent if renting and other necessary stuff that needed to survive.

Plus we also need to have an emergency funds so we will have a secure future which been tackled for many times in this thread. Investors should really need a multiple source of income since if they rely on their unstable profit then maybe he can't get sufficient result. We need to maximize our time and there's lot of ways to earn hopefully people are resourceful enough to find a lot of opportunity that can give them good profits since this could give them huge convenience in future and also can make them a successful investors especially if they see a good result for their long term hodl.

That is not actually the right way to go about it because there is no way you could advise someone who is earning low to invest on a daily basis that's actually an over investment because let's take for instance he is earning $150 on a monthly basis and you advise him to invest daily and maybe he uses $5 as his accumulation amount on the daily basis and in a month we have 30 days depending on the particular month so perhaps $5*30=$150 he will spent per month which is his salary per month and that means he will be investing 100% of his monthly salary, this is actually an over aggressive investment, so perhaps I would advise you focus on weekly accumulation using $10 since you are earning $150 monthly because this will keep you away from getting in trouble during the process.

The example is a dump way of investing in bitcoin. First, it doesn't meet up with the advice that we should invest what we can afford to lose or do without for a long time. Even if the investor doesn't want to live a comfortable life, $20 will not be enough to take care of his monthly expenses. The investor will always be worried that bitcoin shouldn't fail because he has invested most of his money in bitcoin, and dip can make the investor sell his bitcoin because there's no way out except for his bitcoin investment. He will not want to lose his money on his bitcoin investment. This example can make someone not to rebuild their emergency funds because 80% of their salary has been used to invest in bitcoin, and if there is an emergency, the investor will depend on his bitcoin investment to solve it. If you are accumulating bitcoin with the example you mentioned, please modify your bitcoin accumulation plan and reduce the allocation amount to 10% or 20% of your monthly salary so that you will have enough money left to take care of your living expenses after investing in bitcoin monthly.

You have to understand that everyone must have sufficient finances first if they want to do something that is unusual for them, such as the option of investing in Bitcoin. Because if their income level is still quite low and they are only able to support themselves every month without anything more than that, I think a person like that should be able to look for other sources of income without disturbing their main source of income. So that he can immediately do his desire to invest in Bitcoin by buying at the dip and holding it until he really sees the profit he wants.

This is unfortunate reality happening on some parts of the world and that is the real problem why other people can't afford to invest on bitcoin because they think its expensive for them to buy this asset since their salary is to small to use this for investment especially if they have family to feed.

That's why if people really want to get out on poverty then they must learn some skills which they can use online so it can possibly give them some side incomes which they can use for their investment. People really just need to be eager on what they want to do so that they could make all their plans succeed and make their dream investments come into reality. There's never late word this and they could start their investment whenever they want especially if they are financially settled since they already gain from multiple ventures they do in real life also in online.

If they want to test the waters they could start at $10 and its up for them to decide if they want to increase their investment base on what they earn for this week or month. BTC investment offers wide opportunity to its holders so people just need to be eager to learn a lot of information about it so they could get a solid foundation of knowledge so they can do right decisions on their accumulation stage.

But, I think every country/region has a limit on the minimum wage paid to workers. If only a monthly salary of $50 they get this way, this is already a game by their boss.
 
On the other hand, if this is true, maybe that is what causes people there to be reluctant in starting BTC investment due to the limited money earned from paying their salaries after work, where they also know very well that starting to invest in BTC will be a solution that will help.

My brother there are millions of companies that pay their staffs a monthly salary of $50, $40, $30, $20 in Africa, so when I saw your post about no company can pay it's worker $50 that it's too small, it's possible you are speaking from how things are working in your region.

Most people in Africa are struggling to own bitcoin, taking risks just to own bitcoin, because if you check the living conditions of masses, you will see the main reason why there is many adoption of bitcoin especially by their young citizens is because bitcoin is hope. Bitcoin has become the shinning light they can look up to for a brighter future and better everything around them, and improve their living conditions. People living below $50 monthly salary are still buying bitcoin and hodling for dear life.

For me I will consider the logic to be, invest when the money is readily available for investment, it doesn't really matters when, although mostly the monthly or weekly dca has been prioritize but which ever it may be it is left for an investor to make that sole decision in terms his level of preparedness generally. The readiness of the investor to make purchases of Bitcoin is what is most important but having a long term plan might not  necessarily need buying on daily basis . And there should be a certain level of comfort at whatever may be his choice of of when to dcaing.

Buying daily could be a burden and therefore difficult to implement. If the purchase is made on centralized exchanges, consider the withdrawal fees which is expected to be made daily, that a lone can become a big amount of money when you check it in a month time of daily withdrawals. Remember that it is not advisable to store your asset in CEX due to the risk associated to them. That means the only option will be to withdrawal daily or at least regularly. Similarly, if buying through decentralized exchanges like Bisq, there is still the transaction fees which will not go away.

Apart from the withdrawal and transaction fees,  buying daily will be time consuming and there is the tendency of getting tired after some times.

Therefore, I am not supporting daily DCA. The weekly or monthly DCA is fine and gives one enough space to plan well in terms of the finance and time needed to implement the plans.

A person who spends more than what a person earns can never invest, but such a person can invest if he cuts out unnecessary expenses and controls the basic expenses of the family and with the remaining money he can invest. 
So there are a lot of people who are wasteful, because if a person invests $10 a week, he can make the most profit. Because his planning will be better and if he invests for long term he will accumulate more wealth. Many people waste their earned money on bad drugs, so I think it is possible for any person to control $10.

Imo i believe the optimum allocation is subjective based on individuals income, country, goal, and attitude towards risk.
The DCA amount allocated for the month
I guess doesn't have to be once a month but could be spread across the days in a month especially during a correction or dip.
I guess this should be in your country and based on what you believe is nominal as investment.
A person receiving a huge income doesn't necessarily mean they have much idle funds for investment
There are individuals choked up with expenses and responsibilities that is quite hard investing more than 10% of their income.
The best is investing as a capacity leads
Buy with spare funds and hide the balance
It would shock you one day the amount you would find there when you go finally check.

I guess it is.
The differences existing when it comes to humans is the reason no Economics theory are proposed without constancy
What works here won't work there.

I think that the general idea is that DCA is a certain amount of your discretionary income, and the more aggressive that you are with it, then the more likely that it is going to vary every month (even if you are buying weekly) because if you are trying to invest close to 100% of your discretionary income into bitcoin, then there is likely going to be some variance in the amounts.

The lower the percentage of the DCA amount within your discretionary income, then the more likely that you can establish it as a fixed amount, so then the rest of your discretionary income will still give you various other kinds of flexibilities in terms of either goods/services that you would like to buy or if you might be just holding some of the remaining part of that discretionary income in terms of having a higher float or building more reserves - that also might have some assigned purposes.

From my understanding DCA does not have to have any kind of exact fixed amount, even though it is based on some level of regularity in regards to when your income comes in and you consider parts of it to be discretionary to be able to invest into bitcoin. 

I think that a lot of people like to consider DCA as a fixed dollar amount, and there is nothing wrong with that, especially since there can be a lot of conveniences in terms fo having a fixed dollar amount, whether weekly or some other period of time... set it and forget it kinds of ideas... though I also do not like automated DCA, even though sometimes automated could be way more convenient for people so they do not have to remember to do it, and they may well be busy at certain periods and forget to do their DCA manually.


I don't have any problem with the idea that some folks earn very low amounts, such as $100 per month or maybe even lower, yet I have some difficulties imagining scenarios in which persons at those same levels would be ready, willing and able to invest 80% or whatever into bitcoin.. That hardly makes any sense absent some further explanation, as I suggested some explanations in which a person could have some ways of getting food through farming or services or otherwise having various expenses paid for in terms of lodging - but at the same time, even if some folks might have some really strange circumstances, those do not make very good examples, unless we explain the circumstances, and another thing that I already mentioned several times is that a lot of people (whether poor or not) have really difficult times even investing and/or saving 10% or more of their income, so when we are coming up with examples that are presuming sustainable abilities to invest even greater than 30%, then I am going to question those circumstances, including questioning if they are either sustainable, long term or maybe just trying to play the wave by gambling and using money that you cannot afford to set aside for 4-10 years or longer, which are the kinds of longer term strategies that we are aiming to discuss in a thread like this... . .


Even those kinds of numbers of being able to have 40% discretionary income come off as a bit unrealistic in terms of typical situations that people find themselves in, and you might even be using the term emergency fund wrong, since you seem to be referring to having an extra amount of money as a kind of float in the month to cover unexpected other expenses that might come up.  An emergency fund is generally something that is built up and would likely be a minimum of 3 months, and it should hardly ever be touched since the guy should have other funds that are available so that he never has to touch his emergency fund absent an actual emergency.. and so the size and the maintenance of the emergency fund becomes ever more important with any kind of volatile investment such as bitcoin, since we likely should be investing into bitcoin for the long term of 4-10 years or longer, so we don't want to be getting ourselves into any kind of situation in which we have to touch any of our bitcoin during that period for any reason, except our complete own choosing.. and based on various aspects of our investment thesis playing out or BTC levels accumulating to sufficiently high levels that we are moving away from accumulation and into other kinds of stages (practices).

In fact, DCA is very practical and easy for beginners to apply, especially in long-term investments. In DCA we don't need technical analysis because we only execute it when the time comes, for example once a week. If we invest in a year we make bitcoin purchases 48 times a year so we can imagine that we will find the lowest price which may be difficult to do by other means other than DCA. So, if you are determined for the long term, then apply DCA in the investment you make.

I think an income of $50 per month is of course quite a small income, in fact no company pays its employees $50 per month. I don't think it's too much of a burden for people to invest $10 per week because that's a nominal amount that is easily within everyone's reach, but yes, it comes down to each individual. If they are addicted to gambling then whether it is small or large, the income they earn is of course not enough. So it is not surprising that gamblers fail to invest in every available opportunity.

[Off] Not saying the minimum wage or salary should be increased but there's alot attached to the government.... and this shouldn't be discussed here as it's completely  off topic to the thread.
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You guys aren't getting it though  its not actually going hard infact it's just as flexible as reducing your investment plan but my suggestion is just increasing the time interval which I think is much more better than slashing your investment everything you have a low pay

Yeah it shouldn't be very hard but you kinda making it potentially go hard for you, by trying to be aggressive with your investment giving no room for flexibility in line with the adjustment in that have been made with your monthly salary. It may look simple for you to contain at the beginning if you go with $20 DCA even as your salary has been slashed but in the process when other emergency needs arises unplanned for it's gonna affect your investment. Adjusting to the current situation doesn't make you weak, it's also another model of contingent strategy in making for a successful investment.

It's possible in my country to have total expenses a month as or lower than $20. Though my country don't use dollar but the equivalent of $20 can sustain an individual as expense for a month
Well I guess our economy can be attributed to it.

Sure I agree this doesn't make sense
The higher the income the higher the expenditure Ceteris paribus. Expenses making just 20% of your income is quite rare to see unless maybe the person is a miser.

What's the essence of increasing minimum wage when the expenses borne by the employers especially private institution would be transferred to their goods or services
It's like a circle if nothing is done to correct it.
Not supporting the government but I don't think increasing salary is The solution to our problem currently.