Topic: Buy the DIP, and HODL! - page 262. (Read 108913 times)

You can always participate in bitcoin, but it does not meant that at any particular time that any of us is considering entering bitcoin that there is going to be any advantage in waiting and/or that an "obvious" entry point will present itself.

There is an expression that it likely pretty close to being true, and that is that the best time to enter bitcoin was yesterday, and the second best time to enter bitcoin is today. 

In other words, the mere fact that the BTC price has historically dipped and/or provided unexpected dip prices does not mean that it is going to happen to the degree that any of us is going to clearly and unambiguously be able to recognize such dip as an entry point.

IMO we don't necessarily need to start from short term and change to  long term, although this happens to be the case for some investors who never knew the advantage of long term investment and the use of DCA strategy that eliminates the tension from checking the charts all the time to time our investment and deal with market volatility.

We can start with really small budget for our DCA making it cost friendly and we can also increase our budget as we continue to gain confidence and want to increase our portfolio. With DCA method making mistakes won't be such a big deal cause you can easily correct it, and also it gives us the flexibility to allocate our funds in building other necessary things like our emergency funds which would enable us not to dip our hands back in our investment and building up Good reserves and floats.

Let's look at an example of how DCA can help us accumulate bitcoin. Mr X, has a total income of 50000$ monthly and already has a habit of savings and preparing for emergency since before he started out his bitcoin journey , but he starts our late so has already defined that he wants to accumulate bitcoin for, and since he has a short time of 5 years to accumulate Let's say about a minimum of 8 bitcoin and he favours to use the DCA  strategy since he doesn't know how to use any other strategy, he decided to allocate about 50% of his income which is 25000$ for a month, he divdes them equally for 4 intervals for the month, let's also assume that the current bitcoin price during his first month of accumulation was 50000$ -45000$, and he ends up buying his first week at 49000$ for 6250$, he ends up accumulating about 12.7% for 0.127 bitcoin on his first week, and the next week the price of bitcoin dropped a little to 46,000$ and he buys again for 6250$ for 13.58% of bitcoin and he accumulates a total of 0.1358 bitcoins for the second week , and let's say the 3rd week he bought for 48,000$ for same allocation he buys about 13% for 0.132 bitcoins and the last week of the month he buys at 50,000$ for 6250$ for 0.125 bitcoins. His total bitcoin accumulated for the week would be 0.5198 bitcoin for an average price of 48, 250$ of bitcoin.

So that's how DCA works, like in my senerio he accumulates more bitcoin with DCA there could be other senerios where the price continues to rise per intervals and he won't accumulate as much or when price reduces and he accumulates even more.

Hey buddy! first before I digest everything you have said, I will advise you to make use of some good AI tools to give your writings a better meaning. I suppose it's exhausting to start editing your post before I can write a valid comment on it. You can use Grammarly and Quilbot Grammer checker to correct your grammatical errors.

In the aspect of Bitcoin Investment which is a core part of our discussion I do not see a relationship with technical knowledge and Bitcoin Investment because currently anyone can invest in Bitcoin without so much knowledge of it yet. as they say experience is the best teacher in this context ad long as one starts Bitcoin Investment with a minimum amount as time goes on he/she will get aquatinted with Bitcoin knowledge gradually as long as they practice. so having technical knowledge is absolutely not part of the discussion, I see that you're a newbie so you will still find it hard to understand everything that's is being discussed here, although before diving into the discussion you should have read at least 1 - 3 pages of he thread to get a clue of what's being discussed and at least 2 of the last pages then you will comprehend gradually.

This should cover almost every part of what you said wrong. Bitcoin volatile nature has brought about some critical thinking that lead to some purchase strategies that are currently keep the ships sailing with low risk and profit certainty if only held for a long term and this strategies are called DCA (dollar cost averaging), Lump Sum and buying the dips which was the intention of wind_fury for creating this thread. amongst all of this strategies DCA is the most convenient that allows investors but high knowledge and low knowledged invertors to invest and profit from the management without much worries. this strategy eliminates your fear which is the price of Bitcoin moving the opposite direction. those who invest through DCA do not worry about the market volatility anymore because they accumulate Bitcoin gradually with some certain amount and with this they put themselves inorder and do not panic when the market moves to a depreciating direction. if you want to know more about this strategies you can visit search for threads like JJG's Outline of Bitcoin Investment Ideas.

---

https://bitcointalksearch.org/topic/jjgs-outline-of-bitcoin-investment-ideas-5376945

At first you said for a beginner the technical knowledge is a criteria before thinking about investing in bitcoin. But the techniques and well structured investment plans can be really difficult for a beginner to practice on the first day they got to invest in bitcoin. You don't necessarily need deep or much understanding of the technical part to invest in bitcoin. However, along the line the more you continue to learn about bitcoin and having experiences while you manage your investment. The more familiar you begin to grasp good strategy for your investment and make good financial decisions to strengthen your accumulation. if you have a target.

Just like i have said earlier if you are going to invest in bitcoin for long term then you dont need much technical knowledge but perhaps you have the intention to regularly buy rhen sell your Bitcoin then you need to learn the require skill so you can be good at it. But actually that is not the topic of discussion. Our concentration is how we can accumulate bitcoin and hold them for long term purposes.

There are far more stuffs for you to really comprehend. Do you mean buying the DIP? for you deciding to hold your money to be invested only to monitor the price of the market before accepting to begin investing is not totally part of the DCA strategy.

Even during the DIP with the price drops , accumulating at this time is commonly known as buying the DIP of the market and holding for as long as it takes the price to move higher than the purchasing price before wanting to sell, unlike the DCA strategy where measures of price analysis and many other factors are not needed, just a matter of keeping up ahead with the slated amount of Bitcoin to purchase at the intervals. Either daily, weekly or monthly it requires no perfect knowledge and understanding.

For me I think there should be specifications as regards to what you meant by more  knowledge and technicalities because it has been said severally that having a basic understanding is quite ok to go and learn other necessary
Things as time progresses.

Every good investor must performs a risk assessment to know if it is at his comfort before venturing in to it and know that things might not perfectly work the way he planned  all the time being ready for all this will make an investor to make corrections where and when necessary and know that investment is  not only about maximizing profit that there can be lost too.


Trading is more complex and more like a gambling  of mostly for quick profit maximization which is not supported or encourage in the thread, the concept is more about Bitcoin accumulation strategies for long term investment and not trading of any kind.

We are not discussing trading here my dear Frank. Technical knowledge is for people doing day trading whose focus is the perfect entry and exit. What we are discussing and practicing is long term investment which involves how to buy and hold Bitcoin in such a manner that the buying is effortless and the holding without pressures.

Like I already said before, seems you are mistaken the discussion here for trading because all you have explained so far is Bitcoin trading that is executed and settled within a very short interval of time. If you check the caption of this thread which is "Buy the DIP, and HODL!", you will realize you have deviated so much from the topic of discussion.

According to what have been discussed here so far, even newbies can buy and hold Bitcoin. They don't need complex knowledge and complicated mastery of the price movement of Bitcoin to be able to buy and hold Bitcoin. The DCA method have been properly explained and many newbies are already taking advantage of it to build their Bitcoin portfolio. It is not necessary to make it too confusing and complex!

One thing about Bitcoin is no matter how knowledgeable we think we are, can never be sufficient through out our Bitcoin journey, the more we keeping using and accumulating Bitcoin with time the better we grow further in understanding much more about Bitcoin.

Secifically down to Bitcoin investment the DCA approach is considerate enough for everyone, with no need for any further analysis and perfect timing, since the strategy is accumulating Bitcoin at specific regular intervals without considering the current price. The DCA appproach is just about keep buying and adding to one's portfolio without monitoring the value whether a DIP or pump.

Yes, I don't want to end up with empty hands in the next circle that's why I am buying small chunks of Bitcoin.  Since I am a student and not yet working to earn a real salary, the small Bitcoin I hold was purchased with the money I saved  out of my parents gift to me. When I receive money from my parents and family relatives, I used some and invest some in Bitcoin, the money is not enough to buy too many chucks but I only buy the amount I can afford now and I will hold it for a long time. Even after I graduate from school and start earning salary, I will be buy more Bitcoin every month and hold it.

It maybe doesn't state anything but actually as a investor you need to get more knowledge so that you will not fall down on some technicalities happen on the market and you can do any action regarding to what you are experiencing.

To many times market doesn't move the way how we like to see that's why its good to have great knowledge about something so we can shift our strategy to other that might work so that we can maximize our potential profit for sometime we execute our trade or on the time we aim or set.

DCA strategy is really a game changer since it make trading somehow easy for people who have less knowledge about trading and if they enhance more their trading skills for sure there would be a lot of potential for them to earn and be bullish.

Mate, you don't have to be an expert or have technical skills before investing in Bitcoin, you can invest in Bitcoin having a basic understanding by setting out your goals and objectives by considering the following factors

1. Your income flow

2. Method of buying, (lump sump) or dca

3.setting out your emergency funds, reserves and float of which you are going to learn more as time progresses.Having it in mind that every investment comes with it's shares of gain and lost(risk) gives you a certain level of preparation being ready to accept the risk part of it and not only looking at the profit side of it, having this in mind will give you that emotional rest needed to grow your asset.


How do you determine the perfect dip? The drop in price should be seen as an added advantage to even accumulate more Bitcoin in your portfolio and maximize profit at the end. Monitoring the market movement is mostly done by the short term investors whose aim is only to maximize profits within the shortest frame, whereas the discussion is about strategies of accumulating Bitcoin for a long term investment. The DCA strategy gives investors the opportunity to purchase Bitcoin at any time and price and accumulate more when in dip and hodl for future profit maximization.

How easy it is for beginners who really want to learn how to invest well in Bitcoin and how to manage money well in long-term investments.

Below I present an article for you to study if your intention is to really understand Bitcoin and invest in Bitcoin.
 https://www.coindesk.com/learn/what-is-bitcoin-dollar-cost-averaging-a-beginners-guide/

The hope of achieving profits is always the main point in every investment we make. So, in Bitcoin investment, we also have high hopes for the future, or to be precise, when our investment target is achieved. On the previous page there was something that said about mentality/psychology and of course that must be eliminated when investing in Bitcoin. If you are burdened with a thought, of course you will act on an unexpected decision in the middle of your investment journey. Maybe to prevent this, you have to be prepared to invest with a small budget from your monthly income and when you are mentally ready, you can budget larger funds to accumulate Bitcoin.

Apart from that, if a plan fails in the middle of the road, that shouldn't happen to us. Yes, unexpected things often happen in our lives and one of the best things not to disrupt our investment planning is of course to invest with money that is not used for other needs. Everyone may have made mistakes but they learn not to repeat them and that is a turning point to achieving success in their investments. Tell me honestly, if you still have doubts about Bitcoin then you are at a crucial period in your life, doubts must be removed to change your thinking about investing in Bitcoin as part of investing in our old age. In Bitcoin investment you start from the short term and change to the long term and become more successful in the future. Keep buying regularly, even if it's in small amounts, but over time you will see larger BTC holdings in your portfolio.

Yeah, obviously, bro, this is true that Bitcoin is always gives you the opportunity to buy because Bitcoin is highly volatile and their price movements are not always the same. I mean, Bitcoin always provides opportunities for investors to participate in it. When Bitcoin rises, it does not mean that the price went up and will not fall again, that is, it will not give you an opportunity to enter again, but Bitcoin gives you good opportunities every time you take an entry. This is our example. It is clear that when Bitcoin was 37k in 2022, no one expected that the price of Bitcoin would go to $16,625.08 on January 1, 2023. When it actually happened, everyone was surprised. So it means to say that Bitcoin always gives you the opportunity to take entry.

The concept or principle of Bitcoin investment doesn't state that everyone most have enough or sufficient knowledge before they could start investing on Bitcoin because in times of Bitcoin investment there is no fundamental analysis you should know before investing, perhaps that's one of the good things about Bitcoin investment because unlike most investment were you will need to have a very good knowledge about it before starting but however in times of Bitcoin you don't need much of that because you can start investing even when you don't no much about it and the strategy to use, however the introduction of DCA method became a game changer for so many persons who are looking for a strategy and also those that feels that there accumulation budget is too small for them to start the Bitcoin journey can now invest through DCA strategy with the believe that they will surely get to there destination in Bitcoin in the future.

In this world of cryptocurrency especially bitcoin you need to have your technical knowledge.most people engaging in bitcoin are uninformed money users,which don’t have any good knowledge about bitcoin,but if you are a smart money investor you will know when to purchase an asset when its price drops and holding onto it until there's a significant price increase and profit made.In in our society when engaging in bitcoin you need to crucial because of exchange rate and not to be at lost.But before you decide to “buy the dip,” you need to be fairly certain that the asset's price will rebound and not continue to decrease because you will be at lost.but to to able to engage in bitcoin dip you need to have good steady income to engage in it passively and to make profit.imagine those who bought bitcoin at the rate of 40k and which it decreases to 16k and should it would have been in lost .so have many income level it’s important before join bitcoin.but those who hold and waited till it raise will make profit.so engaging in this activity of bitcoin you need to have patience and good income level to succeed

for most newbie, the DCA method would be the best approach they will consider as a means of accumulating Bitcoin but it's going to be difficult for a newbie to start his bitcoin accumulation journey with a huge purchase because they are just new to the system and are more concerned on how not to expertience serious loss because most of them are not just new to the forum but are new to the bitcoin industry and would want to invest small amount first while they monitor to see that they get the first returns that will serve as a motivation to enable them accumulate more.

I'm not saying a newbie can't start his bitcoin journey with huge purchase because in the real sense the amount of bitcoin one accumulate is more about how financially strong one his and ones ability to taking a reasonable risk.

Also smelody made a bit of a placated and non-substantive recommendation to seek professional advice.. which is really stupid, because for years and years and years "professionals" have been on the wrong side of bitcoin, and also they likely would want to direct you into a financial products such as an ETF without necessarily considering the advantages of BTC's direct ownership... and don't get me wrong, I am not against learning from others who are smarter, yet sometimes they are not smarter when they either do not adequately know the subject matter and they might have some built in biases that the newbie is unable to easily identify, unless he has his own strength of convictions and abilities to engage in critical thinking. .and even critical thinkers can sometimes get lured into the wrong professional advice - so each of us should ongoingly be attempting to check our own blind spots and our sometimes receptiveness to not so great ideas.

another thing that smelody might not have had sufficiently emphasized is the value of experience and getting started in BTC investing/accumulation ASAP... and so even if we might not be comfortable with our level of knowledge about BTC, then we may well have to start out with a relatively small position size while we are learning and figuring out the details, and surely DCA can serve greatly in the getting started arena..

We should also keep in mind that even with DCA we might end up buying too aggressively, so we have to figure out what is our disposable income and make sure that we are sufficiently staying within our disposable income and not stressing out our own budget too much in terms of how aggressive we are in the beginning times.


We are not talking about cryptocurrencies and/or shitcoins here. So hopefully you know that we are talking about bitcoin, so maybe you would like to use the correct term if that is what you meant to say.. otherwise some of us might consider you to be lost or in the wrong thread or talking about some other topic... so if you meant to say bitcoin then why didn't you use such term?  Perhaps you don't know what is bitcoin, or maybe you were trying to sound smart by suggesting that crypto is the same as bitcoin, which shows that you probably don't know what you are talking about if you cannot even bring yourself to use the word bitcoin in order to show that you recognize and appreciate that we are talking about bitcoin in this thread.

Also when getting started, a person does not need to know how to secure his own wallet.  There is no reason to overly complicate matters, even though learning about wallets is something that a person does need to work towards knowing about, especially once he starts to get value in the $500 to $1,000 or more stage, and if he might be investing smaller amounts, he still might need to learn about wallets early in his bitcoin journey but he does not necessarily need to know about bitcoin wallets before he gets started.


Yes.. that is an interesting point in regards to many reasons that we might not tell friends and family about some things that we are still investigating and/or in the earlier stages of building our knowledge, and surely it may well depend upon how much we might rely upon friends and family in our own investigation process versus if we might consider that they might not necessarily be helpful in terms of our coming up with a plan that is sufficiently well tailored to our own circumstances, that also might have to do with some personal matters (and balances) that they might not be able to help us in resolving. 

So, yeah, if we are in the earliest stages of figuring out our own position regarding the 9 factors, friends and family may or may not be helpful - depending on our own relationship with them in these kinds of somewhat tending to be personal and/or investigatory matters.

I am not completely opposed to the idea of starting out small and going BIG because it is likely that folks might start out too BIG, so how BIG is a matter of balance that might not be easy for anyone except for that person to figure out how BIG is too BIG.. or how small is too small.  For example, someone could already know that he has $6.6k that he could invest into bitcoin, which is $4k right now and $2,600 over the next 26 weeks  ($100 per week).. so then he might have some questions regarding how much to start with... and/or how much he might need to learn before really getting started. 

He could feel that he has enough information to choose to invest $1k right away and $20 per week, and then to reassess after a month of investigation, and so there can be variations regarding how to start and what kind of timeline he feels that he needs to investigate in the earliest days.. and even in the process of investigating so that he could start to invest the $1k lump sum and the $20 per week.  There could be situations in which it might take him a few weeks just to figure out his budget or maybe he might need to take one or two weeks just to figure out how to source his first BTC.. or maybe there is some kind of fundamental aspect of bitcoin that confuses him, and he feels that he has to study and to resolve that fundamental questions prior to starting.. and so maybe he has a 1-2 week timeline for that.. .and so there could be quite a few variations that might contribute towards NOT buying right at the earliest moment, even though frequently buying some might be something that is towards the more urgent of matters rather than overly complicating how much he believes that he needs to study before getting started.


The BIG question is how much bitcoin do you need to have before you start to feel that you might need to have some other assets besides merely having BTC and cash.  So if you are in fairly early BTC accumulation stages then you are not even close to having to consider those kinds of diversification questions.. beyond bitcoin and cash.. and so how are you holding your bitcoin and how are you holding your cash. .those are likely more important questions, and then if you start to get to having 1 year of expenses in bitcoin and 6 months in cash, there might come a point in which you might start to think that you need something else in your holdings, but there also might not be any need to rush the matter, and then when you start to get to 2 to 5 years of bitcoin and still ONLY 6-12 months of cash, at various points along the way, you might start to think that you might need more cash or other ways of holding value besides just in bitcoin and in cash.especially if you are already experiencing quite a few very volatile periods... and the other ways holding value might be like the ones that you mentioned..

When someone decides to invest, of course they want to get a profit from the investment they make and if we choose too many types of investment then this will bring in a lot of profits too, but we have to be able to manage it well and if we are not able to do it well it will be worse. It's good for us to choose a type of investment that we understand well so that we can generate good profits.

If we have a proper understanding of the investments we make then this will really guarantee the investments we make and also we will be able to resolve any challenges we will face in these investments and it is also important for us to be careful in making investment decisions so that do it in an unhurried condition so that we can make the right decision.

You are correct when you say that having too many methods might really confuse beginners when it comes to making investments. They may try to overallocate without proper preparation, attempting to apply every strategy, or they may even become bogged down in deciding which is the best for them. Because of this, it's recommended that beginners begin with the DCA method. This is not only because it's simple to use, but also because it allows us to gain more knowledge quickly because it doesn't require chart monitoring and is very flexible, allowing you to customize your DCA purchases to suit your needs and your income for our own comfort.

In order to make better decisions, young investors should also prioritize learning and seeking out new information. While it may not always be clear to us why we are investing in bitcoin until we reach a particular point or perhaps even earlier, I am aware that knowing why we are doing so is a great motivator and will keep you motivated to keep holding since the time has come.

Even though it's still in its early stages, Bitcoin still has a lot of potential because nobody can predict what the next few years will bring. However, in order to be safe, once we have a certain amount of bitcoin holdings, we should try to diversify our portfolio by adding other more tangible investments, such as real estate, stocks, or bonds, or even starting a business. We would also try to balance our portfolio to avoid risking our income.

IMO there is nothing really wrong with an aggressive investment, as long as the investor knows what he is doing, and by knk what he is doing I mean, a place of investing aggressively with comfort knowing that your emergency funds, reserves and floats are also been taken care of.

When an aggressive investment would be unwise is when you are investing too much that could affect t you and later cause you feel regret, maybe investing to the point that you have no extra for yourself to take care of basic needs and maybe you now have to borrow at this point I'll say that the investor is gambling with his money cause he would always be in a state of unrest and might even find himself selling his holdings.

But it's also good we have our income planned out and we invest with wisdom, not investing to much or too little but investing according to the risk we are able to bear, cause if things go side ways you would still be the one to take care of yourself, we only give advice here, it's left for you to make the choice.