Topic: Buy the DIP, and HODL! - page 244. (Read 109009 times)

I explained the trade offs, so in the end it is up to you to figure out the trade offs and how you want to play it.

In other words, Make your choice.  It's up to you.


You can do whatever you like when it comes to how to manage your investment, including whether you pull out amounts at various points or if you cash it all out.



Yes, taking out all your profits is problematic, and like I also mentioned taking out most of your profits can be problematic too, especially in terms of causing the compounding to count for less.. and so you can figure out your own calculations based on your own circumstances in terms of how much of your BTC you want to continue to let ride.. and wether you might have had been better to NOT take profits rather than always being concerned about taking profits, which means selling too much too soon.
 

Sometimes people do come to the end of their lives where they might start to dip into principle, which also could be a problem if they miscalculate. 

Another thing is that they could experience some unexpected emergency(ies) that they believe to justify them in terms of taking from their bitcoin rather than any other sources (in the event that they might have other sources in which they could draw upon).  We should try to design our investment into BTC so that these kinds of situation would not come up, but designing around it may or may not be possible.

Is a very wrong strategy as an investor by thinking that you
will not have much profit on investing on Bitcoin with a smaller amounts on a regular basis, however I disagree with you because there is no way you can compare the risk involved on chasing profits to holding because there is no risk involved on holding but however the only interpretation or reason why most people always like to take advantage of the price is actually because of greed and also I would advise you that if your strategy is by risking big to get big profit it will be wise for you to change that narrative because so many investors has end up destroying there investment portfolio because of greed, so perhaps just like @JayJuanGee mention earlier there is no way you can compare the profit you would make if you hold to the little profit you would have by chasing profit.

Whats really wrong in taking profit? If you have hodl your investment for a decade or more and you choose to take profit there is nothing bad as long as you are willing to continue your investment. The only stupidity investors do is taking all of their profit along with their investment capital which is totally wrong. You only take a capital of your investment  if your done with the investment. However, i dont see bitcoin investment ending soon so why will a so-called investor take his capital after he takes his profit?

You are wrong.

There can be great harm from taking profits and continuing to pull out value and failing refusing to continue to invest and/or to let your investment ride, especially something like bitcoin...  and so you think that you are doing great because you keep pulling out your profits, and then when some guys might be receiving 10x to 50x or more in profits after 5-10 years, you might have ended up pulling out relatively low levels of profits and you are still struggling to build up a sufficient nest egg (or investment portfolio).


You might be suggesting that you are being greedy by taking profits, when instead you are short-sighted and scared and unwilling /unable to let your investment ride, and too busy gambling rather than investing.

You call what  you are doing investing, but you are not.. you are gambling. .because you have little to no ability to stay in, and probably you have lack of discipline and/or a lack of a long term plan. .and you end up getting scared at every little profit so then when you get scared, you pull out the measly profits... and yeah, maybe you made some money.. such as 50%. but when you really want to start to live 4-10 years or later down the road, you still are doing the same things and finding the hustle and you have not built up a nest egg.. so you might feel like you are the smartest guy in the room when you are living it up, but if you have to keep working until you are 70 versus the guy who might either be able to stop working early or at least be able to choose the quantity of his work, then you might feel that you either had not been stocking away enough profits and./or you were holding your profits in the wrong assets, currencies and/or properties.

Who prioritise quick profits at the beginning of an investment will suffer in any investment. The investor must acquire awareness about his investment. Bitcoin is not a get-rich-quick scheme. Here only those who hold their investment for a long period of time can be profitable from Bitcoin. Despite the fact that many were early investors in Bitcoin, they did not gain much from Bitcoin. The main reason for this is that they invested there and sold their bitcoins for a small profit. Those who are long-term holders of Bitcoin will definitely get their desired results from Bitcoin.

Real estate investment and bitcoin investment are two different forms of investments. I'm still struggling to find the reason why you are asking someone who what invest in real estate to first in bitcoin. Your case is a different case given the fact that you don't understand real estate back then. Not everyone will be as lucky as you are. And it's possible you have known little about bitcoin, and you believe in it. So those who are not knowledgeable as you are, shouldn't be advised to forget about their plans of investing in real estate and jump into bitcoin investment which they never planned to to. If they do as you are advising, they are definitely going to sell it off along the line, one there is a fluctuation in bitcoin price towards the downtrend.

They could buy whenever they like if they use DCA method and they don't need to think about other risky things compare if you do those daily trades. Maybe some other think about its the same as daily trades since they only look for potential profits but execution is different and the level of risk taking is not quiet much if you do this method well. People just need to understand the conditions and prepare some funds intended to us for DCA so that they became successful and not just good at start.

I know its easy to tell this when writing but if they could able to research to know more information about this for sure they understand this and maybe they can see if this one good for them or they stick around adopting the risk since they like to trade and earn in short period of time.

exactly yah on the right track, as they say "rome wasn't built in a day" alot  of new investors always have that mindset that investment is one kind of getting rich quick scheme. That only when you wanna gamble with money and endup losing it. As implied long-term investment. Only when yah investment is long-term and you keep accumulating more bitcoin. Doing so you would endup with good profits, so as you using DCA strategies or any suitable strategy in investing in bitcoin (you already understand that investing in bitcoin is more safer) so you won't have any fear in investing in it. You just got to play your role by buying or accumulating with any suitable strategy. And then you would see the tremendous growth in your portfolio

I think the DCA method is not as complicated as you say, because any investor can easily set their time when they want to buy every week or every month when they want to invest using the DCA method. Because if investors have to continue to monitor the market every day just to buy Bitcoin when there is a price correction, I think that is no different between investors and traders who basically always monitor the market to buy when the price starts to be corrected.

Meanwhile, what I have experienced and seen for myself is that people who use the DCA method are actually quite easy to manage their time to buy and also quite easy to manage the capital that will be used for investment. So you also shouldn't equate investors with traders who often monitor the market to buy something they want when price conditions start to turn lower.

Understandable for people to doubt on something they don't know, but its a mistake if they don't want to figure out what are those new information introduce to them since if they always caught up with fear without verifying the technology or the currencies they have seen for sure they would missed out the opportunity that can change their life. That's why we can say that those old folks in crypto are so lucky to deal with bitcoin when price is so cheap since most of them are earning the fruit of their efforts made for long time especially when holding their bitcoins since they have strong belief on it.

Also if people would think about getting big profit for small amount they deposit on short time span then most likely they would fail, since they might go on some promising offer that can turn into scam in short while that's why people should not became so greedy and have realistic approach on their investment on bitcoin.

Everyone has their own thoughts.
Investing in Bitcoin is indeed quite promising for the future and there are those who doubt that, but what must be understood is that the profits that will be obtained are quite commensurate with the risk, meaning that if we invest in Bitcoin with a small amount of funds, we will not get large profits.
I don't mean to be greedy in taking profits, indeed we have to be realistic but there is no harm in taking big risks for big profits, especially if we only use a small amount of funds to invest.

Recommendations about investing of bitcoin is absolutely right.In my experience I have been invited in locally share market in my country but a huge loose in my portfolio.If I know before about bitcoin investment could not investment elsewhere.

For those who are trying to invest in new real estate, it can be good to start investing with Bitcoin. When I first invested it was very difficult for me because I didn't understand about real estate investment at first so I invested all my money in Bitcoin. Slowly.  When I learned about investing, I started investing using DAC method without investing full money and gradually gained a lot of money.

Yes if a person has a small amount of funds to invest in the initial stage then it will be better and safer to invest in Bitcoin than investing in other coins. Bitcoin has a method that anyone can start investing in Bitcoin from any amount of money we can call that method as DCA. Many are already enjoying the benefits of investing in this method.
Those who cannot afford to buy large amounts of Bitcoins invest their Bitcoins using the Dollar Cost Averaging method. Not only do we benefit from investing in the dollar cost averaging approach, but investing in this approach must continue and hold for the future. If you start investing your bitcoins with the DCA method and are not able to hold it for a long time then there is no value in investing in this method.

It tends to be quit difficult for regular people (even people who are really good with math) to appreciate the power of exponentials (and compounding), and sometimes even people who make mistakes and they cash out some of their earnings at various points along the way, they frequently won't realize how much they are losing out when they extract profits along the way, especially when an asset like bitcoin has had many tendencies to double .. and surely those guys that got into bitcoin in the single digits and double digits experience even more doublings.. so of course, it depends on when you started, and like I kept mentioning some of your coins are going to have lower cost starting points than others, and frequently we might strive to average out our costs in order to attempt to make our calculations easier and there is not necessarily any one correct answer - even though sometimes record keeping and analysis can get sloppy when there might be a lot of small purchases that are spread over several years, and maybe even spread over decades...

which is part of the reason why I am such an advocate of learning and using a program like Excel to help you keep track of some of these kinds of matters... and sometimes by playing around with  this kind of information, you might come to understand the matters better.. including that in bitcoin frequently there can be very long periods that seem like a lot of stagnancy and very little movement in the BTC price, but then sometimes also there will be stair steps upward (or even sometimes stairsteps downward), but since the trend has been mostly up, guys will some times get lost in the down trends, and fail to recognize and appreciate the up trends.


From my perspective, you seem to be getting the wrong lesson from the information about bitcoin's to-date exponential price history, because you cannot expect any additional doublings in bitcoin's price in the coming 4-10 years or more, but you can still attempt to prepare yourself by understanding that you could lose everything that you invest, but there are also upside scenarios that may or may not end up playing out in the coming 4-10 years or more.. and I am not sure what your investment timeline might be, 10? 20? 30? years, perhaps?.. and if you are not in bitcoin and if it does happen to end up going up in price, then by not being in, then you are not going to benefit as much from the upside scenarios that might end up playing out (and might not end up playing out).

Sure, bitcoin continues to be amongst the best of investments currently available (if not the best investment currently available with likely increasingly strong investment theses based on a variety of factors including ongoing and continued building of its 7 network effects, as outlined by Trace Mayer, yet even with so much ongoingly good news about bitcoin, there are still no guarantees that its price is going up rather than sideways or down, even if you keep investing into it for 4-10 years or longer..

I can't get you clearly on what you are trying to say but I want you to understand that the DCA method will only be beneficial to you or anyone else if you are  a long term investor, because to me right now, it doesn't really matter at what price you are buying weekly or monthly currently, the most important thing is to accumulate more Bitcoin as much as possible and put down measures to safe guard it, so that it wouldn't be spent, because when the bull run have finally come, that is when you will know that all the price you bought during the accumulating process was very cheap compared to the price it will skyrocket to.

Many investors, both old and new investors, have used the DCA method. They have felt the benefits of the DCA method. What they may forget is the time to buy Bitcoin regularly. So they need to make a special schedule or have reminders to continue carrying out the DCA method.

Investors don't need to monitor the crypto market too often. The DCA method allows you to buy Bitcoin regularly, no matter how the crypto market moves. We can try to buy Bitcoin during a dump, but the problem is that we don't know when Bitcoin will get a dump. And our only chance of collecting Bitcoin is using the DCA method.

And it's okay if we buy Bitcoin when the price is above. There are other times when we can buy Bitcoin using the DCA method when the Bitcoin price is below. The important thing is that we have allocated to continue buying Bitcoin using the DCA method.

I don't see any other alternative to DCA method to get profit from investing. If any investor wants to make profit from investing then he must adopt DCA method. To use DCA method investor should always keep an eye on cryptomarket whenever cryptomarket.  At the time of dumping, investment should be done using DCA method, if you invest in it, the amount of profit will start increasing gradually. Otherwise, if you make a wrong decision to invest, there will be more chances of loss instead of profit.

If you use the DCA method, the loss will be very less, but you should always be aware of the market. If you buy when a dumping position occurs in the market and later if you make a profit, it will definitely be credited to your wallet as part of the profit. But when you buy from high price if the market comes down then of course you will face loss and that's why you have to resort to DCA. Your investment style is right you don't invest whole money but invest according to a certain percentage, it will always save you from losses. Always you use DCA method and invest, it will be good for you, and you can get good amount of profit in future.

If a person has small amount of funds to invest then I will suggest him to invest in bitcoin as we all know bitcoin is very safe to invest. Since small funds it will be safe to invest in bitcoin instead of investing elsewhere. First invest elsewhere.  If he faces loss then he will fall in the first position. So if he wants to earn profit from small funds, he has to choose Bitcoin and invest then he can make more funds from small funds.