Topic: Buy the DIP, and HODL! - page 251. (Read 136126 times)

Quote from: Hamphser on May 09, 2024, 02:50:37 PM

Invest on what you can afford to lose as always as yet this is the primary rule when it comes to investment which specifically means that its not ideal on spending up the funds which are intended to pay up your monthly bull. Investing is really that reflecting out on your financial capacity on whatever means you would really be getting it but if we do speak about that sole income source then having this kind of investment set-up would really be that a huge challenge. So in the end of the day it would really be just that depending on you on how you would really be handling up yourself when it comes to investment decision

Well investing with what you can afford to lose is nice, but still to me is going to reduce the rate of one accummulation of Bitcoin. For instance the money one may agree to risk may be as small as $10 weekly as DCAing,which may take some time to turn to something nice , expecially this time around Bitcoin price is high , so that amount won't be able to coverup some nice quantities in the individual accumulating phase.

So to me the right thing is that one can start his accummulation or investment of bitcoin with what he or she can afford to lose, as time goes on after understanding more and seeing the beauty of Bitcoin he or she can increase his rate of Accumulating without any fear of losing that much aslong he or she possess some good discretionary income. Because alot of investors have use such mindset to affect their investment negatively when it comes to accumulating. Tho one should accumulate in a way that he or she won't over doing it leading them in putting their hands in their emergency funds. But still one should try to be as aggressive he or she can .

There's should be a improvement and the accumulation rate should go higher and the timeline of accumulation should depends if you have reserve fund to spend since with this you may get more better result.

Ofocus yes there must be enough reserved fund to be able to get a better result in terms of increasing your DCA strategy. I think what I_Anime said is true about increasing your DCA accumulation as time goes on. Sometimes issues like this need to be raised for people to get a point that DCA strategy is not just being accustomed to $10 weekly, when JJG emphasis on $10 weekly he assumes it as minimum which may as well increase in due time after people may have increased there reserved fund. If people are sticked to that minimum $10 weekly they may never yeald a good accumulation power and year ofcus btc price is increasing steadily and a time will come where the minimum DCA amount will not be even enough to buy a goods numbers of SATs considering the current or future price of Bitcoin. so there is need to increase our accumulation process to boost our portfolio. surely overdoing it is not when you have enough to invest in bitcoin and having enough for reserved and floats without investing, overdoing is when you don have enough and you try to invest what you can't afford, or Investing agresive with all you have and may come back to sell your HODLing. So investing agresively is good when you are capable of doing it.

Quote from: avp2306 on May 09, 2024, 05:01:54 PM

Aggressive approach may sometimes bad if you don't know what you are doing but there are times that its good to execute this especially if our knowledge is enough and you have confident that there's something good will happen on your bitcoin investment in long period of time.

Like I said agresive approach is not bad expecially if you are capable of it. And there is no special skill or knowledge required what really matters is where you get you source of income from. You may not be well knowledgeable about bitcoin but provided you have a higher paying job that can be able for you to increase your investment strategy, you are good to go. Let me say a person who receive $1300 as a salary may be investing $50 on DCA weekly or $100 depending on his programming. He may as well increase it to $300 weekly if he has a higher paying job of $4000 so it may seam to be an aggressive investment but it's not a bad one because he is capable to invest and have enough in his discretionary or reserved and floats. When it can be addressed as a bad aggressive Investment is when he is aiming $1300 and investing $200 weekly.

Hallroom

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Quote from: Bravut on May 09, 2024, 07:29:14 PM

Quote from: Greyhats on May 09, 2024, 05:33:05 PM

That's true , but still lump-summing is also a nice method of purchasing Bitcoin, expecially when one have some good cash flow . Because most time it help to give some good head start in one investment . For instance one may have $1k( $500 is for covering expenses while the remaining is for investing) and the individual have some nice cashflow. So he or she can go all in with the $500 then may decide to start using DCAing after that . With that he or she will be able to coverup more ground in his Bitcoin accummulation, so most time making use of all the strategies actually nice , but if you see you can keep up you can stick with your normal DCAing.

I agree with you. This will help boosting the accumulation process especially as a starter before, then sticking to your plan and DCAing with the amount you are willing and capable to meet up with weekly, quarterly or monthly. The goal is to be aggressive in our buying but not exhausting oneself in the process and pesting on other funds just to meet up.

Here DCA method should be done in such a way that you can hold for 5-10 to 12 years. You have to have a plan, participate in more investments, the longer you hold Bitcoin, the more you can improve, because if you look at the present time, you will surely find the solution to all the problems yourself.

JayJuanGee

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Self-Custody is a right. Say no to"Non-custodial"

The most I've been able to get out of all you've said is entirely correct and true.
You have a tremendous viewpoint of what the DCA strategy is all about (although with some little flaws) and how beneficial it is to those/choose chose to adopt it as their method of Bitcoin accumulation.
Inasmuch as what you've said is correct, it can't always work out as expected, although it could work out most of the times, but not always, due to the unpredictability of the market, you could still split the money into smaller units and still buy through a dip or buy more when prices are high and less when prices are relatively low, which could actually be considered as loss.

It's doesn't really work all the time regardless of the fact fact that it's actually one of the most effective techniques when accumulating bitcoin because by splitting your investment into smaller units and using them to buy at different price points.
This method is very essential because it helps you not to invest too much at the wrong because you're investing in units, and it can also help to stabilize your emotion and balance it a lil bit more in the middle of a market fluctuation.

Hey do you want to do an experiment on the difference of opinion. Maybe we could setup a thread with the two of us in, and setup some rules for the experiment. Im totally open to discussing and defining the rules but i was thinking something like this

Term - 12 months, split into 52 weekly time frames
Budget(Imaginary) - $5200
Exchange - Bitstamp for pricing buys
Changes Allowed - Sundays only and require to be posted on the thread.

I set dca up for a fixed weekly buy, at 5pm UTC on a Monday every week, and then record the imaginary btc amount in the thread. I can change my dca amount any week by posting in the thread on Sunday only but cannot go past the Budget of $5200.

You post every Sunday in the thread with your market limit buys targeting your dip targets for that week Mon - Sun , if any hit during the week, you record the btc amount & price paid in the thread. You can cancel your limit buy orders after they stayed active for at least one week. You can set any amount to the limit buy orders but cannot go past the budget of $5200.

At year end we tally the total amount BTC, AVG Price, $Spent and see how we did.

This is not a bet/wagering opportunity just a simple experiment. Others ofc can bet on the outcomes tho.

Any interest?

I am not sure what point you would be trying to prove. Maybe you are starting out with $5,200 and you are planning to buy $100 per week in bitcoin, yet of course, you have options to use all of your budget right away or to invest smaller or larger, and then when you get at the end of 52 weeks where are you.

Alternatively, you could have someone who buys and sells weekly too, and sure some traders lose their money fairly quickly, but frequently it could take a whole cycle or two to play out.

And yeah, if you are emphasizing buying strategies ONLY, then surely even the variance in buying strategies could also take more than a whole cycle to start out.

I do like the idea of $100 per week, and I like the idea of having a lump sum in the beginning, so there could be someone who starts out in bitcoin and largely knows that he has $100 per week coming in for the next year, so that would add up to $5,200, but maybe he even starts out with another lump sum amount that is $4,800 - so then the total amount over the year is $10k, he has $4,800 available right away, and he has another $100 coming in every week for the next 52 weeks, and still I have some troubles understanding what is being proven by the whole project, since we can go back and back test historical performance on DCA and many times we can see that it may well take many years before the DCA method really shows its power, perhaps a cycle and a half or more.. .yet on shorter timelines, the results may well be a bit more ambiguous, especially the first few years.

Another thing there can be various ways to deal with the initial lump sum including buying right way, add it into the DCA or set some or all of it aside for buying on dips, and even if one method performs better than another, there might not be any real way to argue that it was better merely because it performed better, since in the end, the best system is one in which the guy has comfortably tailored his ways of accumulating bitcoin, and surely some of the buys on dips may or may not end up filling. but that does not necessarily mean the guy did anything right or wrong based on performance in something like a 1 year timeline.

By the way, there have been so many forum threads in which a forum member says that he is going to buy bitcoin regularly and track his portfolio as he builds such BTC portfolio, and many of those kinds of threads don't even last half a year, even though surely they can be very popular kinds of threads, and they probably would be even better if they were pursued and followed through for something like a whole cycle or even longer.

Bravut

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Quote from: Greyhats on May 09, 2024, 05:33:05 PM

That's true , but still lump-summing is also a nice method of purchasing Bitcoin, expecially when one have some good cash flow . Because most time it help to give some good head start in one investment . For instance one may have $1k( $500 is for covering expenses while the remaining is for investing) and the individual have some nice cashflow. So he or she can go all in with the $500 then may decide to start using DCAing after that . With that he or she will be able to coverup more ground in his Bitcoin accummulation, so most time making use of all the strategies actually nice , but if you see you can keep up you can stick with your normal DCAing.

I agree with you. This will help boosting the accumulation process especially as a starter before, then sticking to your plan and DCAing with the amount you are willing and capable to meet up with weekly, quarterly or monthly. The goal is to be aggressive in our buying but not exhausting oneself in the process and pesting on other funds just to meet up.

Bravut

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The most I've been able to get out of all you've said is entirely correct and true.
You have a tremendous viewpoint of what the DCA strategy is all about (although with some little flaws) and how beneficial it is to those/choose chose to adopt it as their method of Bitcoin accumulation.
Inasmuch as what you've said is correct, it can't always work out as expected, although it could work out most of the times, but not always, due to the unpredictability of the market, you could still split the money into smaller units and still buy through a dip or buy more when prices are high and less when prices are relatively low, which could actually be considered as loss.

It's doesn't really work all the time regardless of the fact fact that it's actually one of the most effective techniques when accumulating bitcoin because by splitting your investment into smaller units and using them to buy at different price points.
This method is very essential because it helps you not to invest too much at the wrong because you're investing in units, and it can also help to stabilize your emotion and balance it a lil bit more in the middle of a market fluctuation.

Hey do you want to do an experiment on the difference of opinion. Maybe we could setup a thread with the two of us in, and setup some rules for the experiment. Im totally open to discussing and defining the rules but i was thinking something like this

Term - 12 months, split into 52 weekly time frames
Budget(Imaginary) - $5200
Exchange - Bitstamp for pricing buys
Changes Allowed - Sundays only and require to be posted on the thread.

I set dca up for a fixed weekly buy, at 5pm UTC on a Monday every week, and then record the imaginary btc amount in the thread. I can change my dca amount any week by posting in the thread on Sunday only but cannot go past the Budget of $5200.

You post every Sunday in the thread with your market limit buys targeting your dip targets for that week Mon - Sun , if any hit during the week, you record the btc amount & price paid in the thread. You can cancel your limit buy orders after they stayed active for at least one week. You can set any amount to the limit buy orders but cannot go past the budget of $5200.

At year end we tally the total amount BTC, AVG Price, $Spent and see how we did.

This is not a bet/wagering opportunity just a simple experiment. Others ofc can bet on the outcomes tho.

Any interest?

Your experimental plan is quite good, but this isn’t a thread for that you can choose to do so by yourself and give the feedback to the community. Am not against you but this thread is for educating and sharing opinions on how we go about investing and holding of Bitcoin to build a solid portfolio overtime. Not necessarily involving anyone or anyone betting on any outcome.

Greyhats

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The most I've been able to get out of all you've said is entirely correct and true.
You have a tremendous viewpoint of what the DCA strategy is all about (although with some little flaws) and how beneficial it is to those/choose chose to adopt it as their method of Bitcoin accumulation.
Inasmuch as what you've said is correct, it can't always work out as expected, although it could work out most of the times, but not always, due to the unpredictability of the market, you could still split the money into smaller units and still buy through a dip or buy more when prices are high and less when prices are relatively low, which could actually be considered as loss.

It's doesn't really work all the time regardless of the fact fact that it's actually one of the most effective techniques when accumulating bitcoin because by splitting your investment into smaller units and using them to buy at different price points.
This method is very essential because it helps you not to invest too much at the wrong because you're investing in units, and it can also help to stabilize your emotion and balance it a lil bit more in the middle of a market fluctuation.

Hey do you want to do an experiment on the difference of opinion. Maybe we could setup a thread with the two of us in, and setup some rules for the experiment. Im totally open to discussing and defining the rules but i was thinking something like this

Term - 12 months, split into 52 weekly time frames
Budget(Imaginary) - $5200
Exchange - Bitstamp for pricing buys
Changes Allowed - Sundays only and require to be posted on the thread.

I set dca up for a fixed weekly buy, at 5pm UTC on a Monday every week, and then record the imaginary btc amount in the thread. I can change my dca amount any week by posting in the thread on Sunday only but cannot go past the Budget of $5200.

You post every Sunday in the thread with your market limit buys targeting your dip targets for that week Mon - Sun , if any hit during the week, you record the btc amount & price paid in the thread. You can cancel your limit buy orders after they stayed active for at least one week. You can set any amount to the limit buy orders but cannot go past the budget of $5200.

At year end we tally the total amount BTC, AVG Price, $Spent and see how we did.

This is not a bet/wagering opportunity just a simple experiment. Others ofc can bet on the outcomes tho.

Any interest?

avp2306

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Activity: 1022

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Quote from: Hamphser on May 09, 2024, 02:50:37 PM

Invest on what you can afford to lose as always as yet this is the primary rule when it comes to investment which specifically means that its not ideal on spending up the funds which are intended to pay up your monthly bull. Investing is really that reflecting out on your financial capacity on whatever means you would really be getting it but if we do speak about that sole income source then having this kind of investment set-up would really be that a huge challenge. So in the end of the day it would really be just that depending on you on how you would really be handling up yourself when it comes to investment decision

Well investing with what you can afford to lose is nice, but still to me is going to reduce the rate of one accummulation of Bitcoin. For instance the money one may agree to risk may be as small as $10 weekly as DCAing,which may take some time to turn to something nice , expecially this time around Bitcoin price is high , so that amount won't be able to coverup some nice quantities in the individual accumulating phase.

So to me the right thing is that one can start his accummulation or investment of bitcoin with what he or she can afford to lose, as time goes on after understanding more and seeing the beauty of Bitcoin he or she can increase his rate of Accumulating without any fear of losing that much aslong he or she possess some good discretionary income. Because alot of investors have use such mindset to affect their investment negatively when it comes to accumulating. Tho one should accumulate in a way that he or she won't over doing it leading them in putting their hands in their emergency funds. But still one should try to be as aggressive he or she can .

Yeah that would be nice to start with if the money you invest is the one you can afford to lose but there's should be an improvement with your accumulation since if you only put $10 week there's really nothing gonna happen since with that amount everything will go slow. There's should be a improvement and the accumulation rate should go higher and the timeline of accumulation should depends if you have reserve fund to spend since with this you may get more better result.

We all know that over the time bitcoin value increase so to maximize its potential and for us not to miss those good opportunities we should act smartly according so we will not regret on our past actions made since I believe that $10 weekly accumulation is in doubt condition and provably the person who do that doesn't have enough knowledge since he doesn't have a confident to increase his investment size. Aggressive approach may sometimes bad if you don't know what you are doing but there are times that its good to execute this especially if our knowledge is enough and you have confident that there's something good will happen on your bitcoin investment in long period of time.

I_Anime

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Quote from: Hamphser on May 09, 2024, 02:50:37 PM

Invest on what you can afford to lose as always as yet this is the primary rule when it comes to investment which specifically means that its not ideal on spending up the funds which are intended to pay up your monthly bull. Investing is really that reflecting out on your financial capacity on whatever means you would really be getting it but if we do speak about that sole income source then having this kind of investment set-up would really be that a huge challenge. So in the end of the day it would really be just that depending on you on how you would really be handling up yourself when it comes to investment decision

Well investing with what you can afford to lose is nice, but still to me is going to reduce the rate of one accummulation of Bitcoin. For instance the money one may agree to risk may be as small as $10 weekly as DCAing,which may take some time to turn to something nice , expecially this time around Bitcoin price is high , so that amount won't be able to coverup some nice quantities in the individual accumulating phase.

So to me the right thing is that one can start his accummulation or investment of bitcoin with what he or she can afford to lose, as time goes on after understanding more and seeing the beauty of Bitcoin he or she can increase his rate of Accumulating without any fear of losing that much aslong he or she possess some good discretionary income. Because alot of investors have use such mindset to affect their investment negatively when it comes to accumulating. Tho one should accumulate in a way that he or she won't over doing it leading them in putting their hands in their emergency funds. But still one should try to be as aggressive he or she can .

Quote from: Agbamoni on May 09, 2024, 01:47:50 PM

You're absolutely correct, the market can be very interestingly complex and dynamic. There's every possibility of losses when choose to split up your payments, making you see reasons why you should've just invested the whole $500.
Inasmuch as the. DCA strategy is quite and outstanding and effective strategy it's still doesn't necessarily guarantee savings, especially when the market price keeps rising during the time for your subsequent buys.

That's true , but still lump-summing is also a nice method of purchasing Bitcoin, expecially when one have some good cash flow . Because most time it help to give some good head start in one investment . For instance one may have $1k( $500 is for covering expenses while the remaining is for investing) and the individual have some nice cashflow. So he or she can go all in with the $500 then may decide to start using DCAing after that . With that he or she will be able to coverup more ground in his Bitcoin accummulation, so most time making use of all the strategies actually nice , but if you see you can keep up you can stick with your normal DCAing.

Hamphser

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Vave.com - Crypto Casino

Quote from: ginsan on May 09, 2024, 12:30:56 PM

Quote from: ginsan on May 09, 2024, 12:30:56 PM

Forcing yourself to consider other people's ideas in your investment journey can basically destroy the investment plans you have built for a long time. If you have a good planning framework supported by useful strategies, then go ahead and improve. I think this method is more challenging than hoping that other people's ideas will provide commensurate benefits for you, but as a decision maker you have the right to use whatever method you believe will produce return.

Previously, I said that the investments we make are purely from our self-awareness without any coercion from any party. I have known about bitcoin for a long time but only one year ago I really invested properly because I had the confidence to hold bitcoin longer or for the next 5 years.

I have overcome various obstacles and mental burdens in investing one year ago and now it has been almost 1.5 years for the bitcoin accumulation that I have done. So, if we can budget $30 for the investment we make, then just focus on buying regularly every week.
But if your income increases in the coming years then there is an option to increase the budget flow to a larger one.

It's easy said than done. The problem we face is that at the beginning stage we do not put proper consideration on our investment before starting it. One thing i came to understand is that if we do things out of emotions, we end up making mistakes. We should have proper planning to meet our goal, emotions won't help us. Bitcoin investment and investment in general is done by proper planning and consistency in accumulation which we know cannot be successful if there is only one source of income unless the monthly pay is kind of enough to carter for monthly expenses, have reserve fund and be enough for investment. The question is if we receive our income monthly how do we go about our DCA, since it is weekly? I would prefer weekly DCA instead of monthly DCA i don't know what you think buddy?

Invest on what you can afford to lose as always as yet this is the primary rule when it comes to investment which specifically means that its not ideal on spending up the funds which are intended to pay up your monthly bull. Investing is really that reflecting out on your financial capacity on whatever means you would really be getting it but if we do speak about that sole income source then having this kind of investment set-up would really be that a huge challenge. So in the end of the day it would really be just that depending on you on how you would really be handling up yourself when it comes to investment decision.

Sorry for the out of topic reply above, taking back about having push-ups. Honestly i have stopped on doing it midway on which it seems that 100k is really that too far off basing up on the movement
of the market. Im that a type of guy who do easily get tired or really just that im too impatient. lol

ShowOff

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Quote from: ginsan on May 09, 2024, 12:30:56 PM

Forcing yourself to consider other people's ideas in your investment journey can basically destroy the investment plans you have built for a long time. If you have a good planning framework supported by useful strategies, then go ahead and improve. I think this method is more challenging than hoping that other people's ideas will provide commensurate benefits for you, but as a decision maker you have the right to use whatever method you believe will produce return.

Previously, I said that the investments we make are purely from our self-awareness without any coercion from any party. I have known about bitcoin for a long time but only one year ago I really invested properly because I had the confidence to hold bitcoin longer or for the next 5 years.

I have overcome various obstacles and mental burdens in investing one year ago and now it has been almost 1.5 years for the bitcoin accumulation that I have done. So, if we can budget $30 for the investment we make, then just focus on buying regularly every week.
But if your income increases in the coming years then there is an option to increase the budget flow to a larger one.

I don't have a crystal ball to predict whether what you say is right or wrong, especially regarding changes in your mindset about investing in bitcoin over the last 1.5 years. If that is true, then I will just say that it is a good decision because you already realize that bitcoin is the best investment asset that should be on the list of assets in your long-term portfolio.

$30 in a week will become $120 in a month, which is great to stick to as a budget for an accumulation strategy. I can imagine you actually do it every week especially if all the bitcoin you earn from your signature campaign is currently sitting untouched long term. $65 per week would be $260 per month, which is a good budget amount to invest even though price volatility can make the value of your investment assets rise and fall. But of course, that's only if you have other sources of income outside of your signature campaign income.

If you maintain the above scenario in a year, then you will have $3120 in bitcoin. In fact, this method can make you get a return on your holding journey, this is because the price of bitcoin is very likely to continue to increase over time, especially after we passed the halving event last April.

Agbamoni

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Quote from: FinePoine0 on May 09, 2024, 09:23:14 AM

Forcing yourself to consider other people's ideas in your investment journey can basically destroy the investment plans you have built for a long time. If you have a good planning framework supported by useful strategies, then go ahead and improve. I think this method is more challenging than hoping that other people's ideas will provide commensurate benefits for you, but as a decision maker you have the right to use whatever method you believe will produce return.

Previously, I said that the investments we make are purely from our self-awareness without any coercion from any party. I have known about bitcoin for a long time but only one year ago I really invested properly because I had the confidence to hold bitcoin longer or for the next 5 years.

I have overcome various obstacles and mental burdens in investing one year ago and now it has been almost 1.5 years for the bitcoin accumulation that I have done. So, if we can budget $30 for the investment we make, then just focus on buying regularly every week.
But if your income increases in the coming years then there is an option to increase the budget flow to a larger one.

It's easy said than done. The problem we face is that at the beginning stage we do not put proper consideration on our investment before starting it. One thing i came to understand is that if we do things out of emotions, we end up making mistakes. We should have proper planning to meet our goal, emotions won't help us. Bitcoin investment and investment in general is done by proper planning and consistency in accumulation which we know cannot be successful if there is only one source of income unless the monthly pay is kind of enough to carter for monthly expenses, have reserve fund and be enough for investment. The question is if we receive our income monthly how do we go about our DCA, since it is weekly? I would prefer weekly DCA instead of monthly DCA i don't know what you think buddy?

Tungbulu

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Quote from: Judith87403 on May 08, 2024, 03:49:23 PM

Quote from: Mayor of ogba on May 08, 2024, 12:53:21 PM

Edited

For example, if you buy $500 worth of bitcoins, you can divide it into five parts. If you buy dip then you can definitely save a lot of money. This is where your average will control the price, because adding your high price and low price to the normal price will come up with the purchase price of your Bitcoin price. So if you buy bitcoins in few steps you can definitely save the most on buying bitcoins and holding it for a long time is safest.

The most I've been able to get out of all you've said is entirely correct and true.
You have a tremendous viewpoint of what the DCA strategy is all about (although with some little flaws) and how beneficial it is to those/choose chose to adopt it as their method of Bitcoin accumulation.
Inasmuch as what you've said is correct, it can't always work out as expected, although it could work out most of the times, but not always, due to the unpredictability of the market, you could still split the money into smaller units and still buy through a dip or buy more when prices are high and less when prices are relatively low, which could actually be considered as loss.

It's doesn't really work all the time regardless of the fact fact that it's actually one of the most effective techniques when accumulating bitcoin because by splitting your investment into smaller units and using them to buy at different price points.
This method is very essential because it helps you not to invest too much at the wrong because you're investing in units, and it can also help to stabilize your emotion and balance it a lil bit more in the middle of a market fluctuation.

Another way that it proves it's importance is by reducing timing risks, since you're not actually investing too much amount all at once, which could actually be the peak of the market. It also averages out the cost of Bitcoin, since your overall cost per BTC will be averaged out, which is a very effective method of almost eliminating the impact of market fluctuations.
HODLing for a long time is undoubtedly another effective strategy that'll reduce the effect of the market fluctuation.

Quote from: JayJuanGee on May 09, 2024, 12:08:17 PM

Quote from: FinePoine0 on May 09, 2024, 09:23:14 AM

Quote from: Judith87403 on May 08, 2024, 03:49:23 PM

Quote from: Mayor of ogba on May 08, 2024, 12:53:21 PM

To buy bitcoin with a lump-sum strategy is not bad; you can even buy bitcoin at a low price with a lump-sum strategy. As you said, it is for the rich investor. Some investors can't be patient enough to accumulate the quantity of bitcoin they want with the DCA strategy, and they can decide to buy the quantity of bitcoin they want to hold at a time with a lump sum strategy.

DCA strategy is not only established for the poor but could also be use by anybody irrespective of their financial status weather poor or rich, however the only difference between the poor and the rich in terms of using DCA strategy is the amount they budget on accumulation basis, for instance someone that doesn't have much money could only focus on the amount he can afford maybe accumulate using $10 on a weekly basis while the rich could budget up to $100 or more on a weekly basis, so don't have the perception that DCA strategy is only for the poor because on the contrary it can be use by anyone, and perhaps that's the method so many rich people are currently using.

For example, if you buy $500 worth of bitcoins, you can divide it into five parts. If you buy dip then you can definitely save a lot of money. This is where your average will control the price, because adding your high price and low price to the normal price will come up with the purchase price of your Bitcoin price. So if you buy bitcoins in few steps you can definitely save the most on buying bitcoins and holding it for a long time is safest.

There is hardly any way to know if you are going to save money by splitting up your payment - however, you can spread out your own cashflow management if you are not sure about it, and also spread out your BTC buys if you are not sure about it, yet you are not going to save any money if you start to buy by splitting up your payment, and then the price continues to go up during the period that you are making each of your subsequent payments. In the case of the BTC price going up, you might have had been better off just buying the whole $500 at once, yet you do not know which way the BTC price is going to go.. and another part of tends to be that you might not be sure if you are going to have all of the $500 or that you are in a position to spend all of the $500 at once, even if you have it... so yeah, spreading it out does have the potential benefit of the BTC price going down, yet surely the BTC price is not necessarily going to go down.... so you have to make the calculation based on factors other than your believing that you know which way the BTC price is going to go... which more likely would be based on your own personal cashflow circumstances including income and expenses and perhaps even some of the inconsistencies that might relate to your own financial and/or psychological circumstances.

You're absolutely correct, the market can be very interestingly complex and dynamic. There's every possibility of losses when choose to split up your payments, making you see reasons why you should've just invested the whole $500.
Inasmuch as the. DCA strategy is quite and outstanding and effective strategy it's still doesn't necessarily guarantee savings, especially when the market price keeps rising during the time for your subsequent buys.

But nonetheless, it could still prove to be quite a viable option that's comes pretty much in handy when it comes to managing one's cashflow as well as reducing the impact and effect of the volatility of the market on you.
But whatever technique one decides on using, they should always put in consideration their financial circumstance, like expenses, income flow and also psychological factors too.

Smilevictorobinna

jr. member

Activity: 56

Merit: 31

Hodling for a long term can be very easy to say but hard to do. Before you can succeed in hodling for a long term, there are somethings you need to set in place or else you will sell off your investment as time goes on. So in other to hodl your Bitcoin investment for a long term you need to set an also eliminate some factors which are as follow.

1. Eliminate your debt:
Before going into a long-term bitcoin investment make sure you pay off any debt you are into.
If you are into a debt and you invested on Bitcoin there is every possibility you may sell off your bitcoin investment to settle your debt I was once a victim of this years back.

2. Having other source of income:
Before you go into a long-term bitcoin investment you need to have other source of income it helps settle some needs that would have led you to dip into your investment.

3. Emergency funds:
Before going into long-term bitcoin investment you need to save for emergencies.
When you have an emergency funds it helps you settle emergency issues without dipping into your investment.
5 years ago I invested on on a certain cryptocurrency. However I also was saving for something that was not too important, then I had an emergency which I needed to sort out, my only options was either to sell off my crypto investment or dip into the savings I was doing for something that was not important to me at that point in time, all I did was dip into my savings and left my investment from that day I saw the need for an emergency fund.

4. Set goals:
Before going into a long-term bitcoin investment you need to tell yourself this is how long I want my investment to last or this is certain amount I want my investment to reach before I pull out.
When you set this goals it helps you have a direction on where you are going and also helps you achieve your goals.
I understood the principle of setting goals before I invested on Bitcoin and I can tell you for real that it has helped me in this journey of long-term hodling, I don't think of anything else each time I see my Bitcoin apart from the goals I have set in place for it.

ginsan

hero member

Activity: 1358

Merit: 627