Topic: Buy the DIP, and HODL! - page 270. (Read 123847 times)

Sure, emergency funds play a vital role in our investment, but we all know that emergency funds doesn't comes free. That why someone that is interested in Bitcoin investment should have some sources and some good planning, though we may say one does not need more knowledge (just the basic)  to start investing, but as time goes on you will know that to secure a good and healthy investment requires good knowledge.  Like someone who use lump-sum strategy to buy bitcoin during the dip, without any proper plans. On how he can manage his funds mostly when is an average Man, always going all at once without having enough emergency funds or reserve funds , which will initiate a urge of always depending on his investment for survival due to poor planning, if such continues he may endup not able to lady long with his investing. That why as one is investing he or she should also focus in accumulating more knowledge as they accumulating bitcoin, in order to exercise good planning and this thread has been helpful. But one also need something like this 9 principle individual factors

Maybe if they could manage their financial flows better, I don't think there would be an obstacle for them to miss a single purchase at each stage. Yes, I mean if they directly manage their money from the start, for example they have $20k and they have divided several stages of purchases every week or month up to a period of 1 year in their initial planning. But sometimes they don't set a strategy like that, instead they set aside their salary every month to buy BTC, even that's also a good choice.

Yes, even though it's like that, I think every target in the first year should not have any obstacles or go through several stages because that can make us not consistent in our one main target. However, what is certain is that everything may not be perfect, and of course we can fix any gaps we have missed at the next stage by increasing purchasing more aggressively.

The importance of emergency funds can not be overemphasize because it is very much important even in  our daily life that is why it is always advisable that we should have 3 to 6 months of our living expenses save as your emergency funds, and at the event of making use of it provisions should be made in order to replenish it as soon as possible and by so doing you have over come one of the factor that has lead so many into sell off their investment at when it is not  time to do so.

I agree with everything you said Winterfrost, and so it can be difficult to suggest that someone is doing it wrong because he employs some slightly different method of accumulating BTC, and so within the three methods of DCA, lump sum investing and buying on dips, they each have their place, yet they are also coupled by various uncertainties.  A person who has no savings and no other investments would not be in a position to lump sum invest.. so that guy would ONLY be able to DCA and/or buy on dips.  There is also nothing wrong with attempting to strategies your buys, which might also include waiting, but waiting does not make as much sense for someone who does not already have some BTC, so then we get into situations in which the amount of BTC that a guy has already accumulated and at what prices could also affect if he is in a position to wait or if he should just be buying regularly.

I am not opposed to your idea of a guy skipping DCA because he has to roll with his life circumstances, yet if someone plans ahead and he gets his shit in order, then he would also be in a position to prioritize his DCA so that his life circumstances would not cause him to stop his DCA.. now that is assuming that DCA is a good thing for him to do based on his own stack size and his building of his stack size.  Some of the better ways to make sure that you don't miss DCA (if that is a priority for you) is to make sure that your emergency fund and your reserves are in a good position, and you also have good systems in place in terms of managing your cash float... and yeah, sure life circumstances could get so unexpectedly bad that a DCA would have to be stopped, but it would not necessarily be the first thing that is stopped, so there might need to be a exhaustion of other funds prior to discontinuing the DCA (depending on if the DCA is a priority for that particular person).. ..

Again, with all of this that I am outlining, just like you seem to suggest Winterfrost, each person is in charge of his own circumstances, priorities and figuring out how many funds that he has available and whether he is in a position to employ certain strategies that he authorizes himself to do and can discontinue or change those circumstances at any time, including that he can tell himself that no matter what, every week he is going to buy $10 of BTC and he could structure the other parts of his life around that so that no matter what he buys $10 of BTC, even if he might be having other negative financial issues that he is having to deal with.

By the way, don't get me wrong, even though I suggest DCA as the best default system to get started in BTC investing, I also consider that it is not the best for anyone who is able to put together some combination of other systems that also might include DCA as a supplement or as a kind of hybrid DCA, so in that regard, I appreciate any front load lump summing and even front load DCAing, that also includes attempts to buy on dips during the weekly DCA, especially in the earliest stages of building a BTC portfolio, but surely if someone is brand new to investing and/or BTC, they likely are not even able to do any of those other fancy strategies, so they are likely going to be in a way better position to strictly DCA an amount of money that is reasonably doable for them,  and it likely would not even be beneficial to for them to be spending time on various other strategies if they might barely be able to just get some kind of system set up to buy BTC regularly and then they have a lot of other things going on in their lives, since maybe the brand new investor might need to try to figure out ways to increase his disposable income so that he is able to invest more into BTC, and yeah if someone is in college (or some low income earning situation) they might not even have much income, so they might have difficulties increasing their disposable income until they finish their college and/or vocational training... DCA might still work for a person like that, if they don't have much income, they just would be setting a small portion aside while they are doing their studies.

Maybe I think he is talking about your ability to purchase in the little way you can Which the DCA method allows you to, because you might not have the financial strength to purchase in lump sum.

In as much as investors should go for strategy that best suits them especially on their financial status, the DCA method has a way of strategizing your purchasing plan for long period, it has been a lay down procedure that a lot of people have been using because of its advantageous side. Don't forget that this is a volatile market, so you need strategy to survive it, so knowing when to buy and how to buy plays a big role. I understand your point about managing your assets, but I believe we should count one before two. You can only manage assets that you r acquired, however the process of acquisition for a lot of investors should be taking into cognizance.

I don't think there is any method of buying bitcoin that is best for everyone, what may be the best for you may not be suitable for another person. So you see, the method any individual uses to make his bitcoin purchase does not really matter and depend on his/her preferences and what really matter is what the investors do with the bitcoin in terms of preserving and protecting it to derive the best value from it. I can decided to use the DCA method to buy while another person use lump sum, in the end we both have bitcoin in our possession and as long as we plan to hold our portfolio and not sell under pressure or when we do not plan to sell, then we both will be achieving equivalent results.

The DCA method seems to be favorable to many investors simply because it is easy to apply and can make one easily develop the right discipline needed to hold bitcoin for long term. By this I mean, those applying the DCA method seems to think more of long term plan rather than just buying low to sell high. The DCA method is a process of its own that requires patience to follow, this is why many people using it tend to achieve good results.

I do not know what you mean by the best because everyone uses method that is convenient and suits their purpose. If you say that the DCA method is the best, are you saying that investors like MicroStrategy and other whales that do not use the DCA method are not doing it correctly? Many of us are aspiring to be like them, buying bitcoin when others are afraid and being skeptical, and holding for long term. That is the ultimate goal. The method of buying should not be the borne of contention rather how best we can manage the assets so acquired to be able to be proud of our decisions and actions in the future without any form of regrets.

I don't think this is an excuse, definitely we are humans and humans are bound to face challenges especially when it comes to money, challenges should not be an obstacle when investing if you plan properly. That's why it's advisable to set aside some funds for emergency (Emergency funds), if having an emergency fund during such time it can be of help rather than stopping your accumulation process. When I first started it was difficult cause I had no planing idea and no emergency fund, I just buy and buy without a plan and it was difficult honestly but when I started this learning process I knew it's best to include emergency fund when planning.

Shortest possibly time with bitcoin investment is not advisable except the person what to gamble with his/her investment. Bitcoin investment should be a long term investment plan, I will buy using the DCA strategy cause it suit my income, I don't think if it's the best or not but I think beginners should not get involve with the lump sum strategy but rather the DCA strategy.

I do agree with you that the DCA method is a wonderful method of investing in Bitcoin that is suitable for both beginners and older investors. It is also a wonderful method for those with regular cashflow such as salaries even though those with other forms of cashflows can make projects and work out a way of also using the DCA method. These possibilities make the DCA method unique and great for all to use, allowing them the peace and comfort of not bothering about price movement, hypes and FOMO. So, I give it to the DCA method and will also encourage everyone struggling with being consistency to use it.

However, we should endeavor to remain within the confines of what DCA method is so we don't derail. For example, I do not think it is ideal to posit that the DCA method control the average price ratio, I don't even know what you mean by that statement. But I do know that the DCA method does not control the price of Bitcoin as it can be applied at any price printed by Bitcoin as at when the purchase is to be made. Although, at lower prices, the investors have more BTC and at higher prices, he gets less BTC and in the end the average price can be calculated for personal record keeping. If this is what you are referring to as average price ratio, then fine the investor can actually work it out to be able to know the profit factor of his entire Bitcoin portfolio.

Emergency funds doesn't only apply during investment as it cut across all ramifications of life because whatever thing one is doing in life and you don't have an alternative, is likely you won't prosper much because at some point even for those of us that are earning very little and we are making some savings to start up our investments, you will find out that while saving if you don't remove some money that you would use to solve some immediate problems, then you will keep on tampering with you savings of which you may not be able to achieve your goal of meeting up your target of owning an investment.

We should know that emergency funds Plays an important role in our investments journey because certainly, unforseen challenges will erupt of which if you don't have an immediate source of handling such situations then you will repeatedly tamper with your holdings and may not really be able to meet up your desired goal of accumulating more in other to reap in full.

There is no how you would have emergency fund and something occurred suddenly and you start looking for other alternatives why you have emergency at stake. Earlier before now emergency was clearly stated to be something that is associated with life savings like maybe accident occurrences, funeral services or any other emergency needed. If it is not a life saving issues you can stick to your plan and look for other ways. But if it is a life saving matter you can use your emergency fund.

Like i said in the first paragraph emergency is a life saving issues that happens so sudden that may include accident or funeral issues, if you notice very well you will you will understand that it is rear for emergency to occur. And you ma have accumulated enough emergency fund just like the way you are accumulating btc HODLing, that is why emergency fund may not be a little fund. Because emergency differs, it might be an Emergency of $100 $500 or maybe $5000 that why we must be setting aside each week or month a certain amount just as you DCA in BTC. So that sothat when emergency need arises it becomes easy for you. Sothat we will no longer be looking for alternatives else where. The only problem people face is the in ability to accumulate enough emergency fund such as they do in btc. The way we keep on btc should also be don equally on emergency  because it is only someone that don't have enough emergency fund that will use some portion to solve other people's emergency proble and becomes difficult to solve his own emergency to the extent of selling his btc holding to solve such situation.

What I will advice us is that we should try as much as possible to always accumulate enough emergency fund, in other not to affect our bitcoin holding when we solve other people's emergency problem because emergency might not only be from your family but also to your close relatives who needed your help.

I agree with you mate and like I mentioned on most of my post, this thread has been a game changer in advancing my understanding on Bitcoin investment because just like you before I came here I had no idea on most of the things that was discussed here such as the DCA, and the importance of having an emergency funds because all I knew then was just how to invest on Bitcoin without knowing there are things that should be put in place so that I cannot ran into trouble during the holding process, so I most say that coming here has totally change my investment narrative because right now I no longer invest the way I used to invest, so I believe that I'm not the only person who has been inculcate on our investment journey through this thread, however all thanks to @JayJuanGee for always making out his time to inculcating us about the ways to go about Bitcoin investment.

I couldn't agree with you... DCA is the best method for the Bitcoin. If you have a lot of money you can invest a lump sum  by buying bitcoins....this investment will help you a lot in times of crisis.It can be helpful for your child's future if you want.And thinking that you can raise the wave of satisfaction.. But you didn't care about DAC, you kept yourself away from more profitable business. Because whether you are working or have a job, you are in daily income and set aside a certain amount for DCA. Apart from meeting your basic needs, the account is heavy and after 5 or 10 years you will see more profit.So don't get stuck in lump sum, you'll need follow DCA method. DCA could be a universal method it applies to everyone... rich, middle class and poor. Everyone can invest in Bitcoin by following this method. And lump sum only for rich.

I disagree with you here, the DCA method is the best when it comes to acquiring Bitcoin and the rewards you get long term, because the lumps sum method you mentioned is only waiting for the market to deep before he thinks of buying, and most times you might miss and opportunity to buy at a lower price, because you thought it's going to go deeper.

But someone using the DCA method will keeps on buying regardless of the price and he might even buy the deeper most part, the lumps sum  investor might fail to buy because he thought the price will go deeper,  and at the end of the day, he will have much more accumulation and profit than person using the lumps sum method on the long run.

just so we don't sound like robots and mere perfect people, The DCA method is obviously good and being consistent with your strategy will get you to your goal within the fastest possible time but let's not forget the reality that as human, there might be weeks or month issues can come up and maybe you might miss out on your accumulation routine for the month. As long as it's an unavoidable situation, you've got to be realistic enough and fix your issues and continue with your accumulation routine. The DCA strategy is not to enslave you to your investment and close you out of life reality. You've got to strike a balance between your investment and your real life issues.

 Also, the assumption that the DCA methord is the best isn't all that correct. The decision to buy using the DCA methord or to do lump sum starch is totally based on your financial strength. as long as the methord you're using is working well for you and will help you meet your goal within the shortest possible time, that's the best strategy for you but that's not to suggest that it's better than buying in lump or that its more profitable than bulk buying. Buying in bulk during the bearish season could put you in a better profit and would normally save you from whatever issue that might spring up with time by using the DCA methord.
Just stick to what works best for you based on your financial prowess.

But if you are not consistent in you DCA method you not making good use of the strategy and you won't see much impact in your holding. One thing that makes the DCA method interesting is your ability to consistently do it within the specified period you have set for yourself. When you are not consistent in buying either weekly or monthly it like it's not DCA method you are following. It has now turned to lump sum or other methods and when you are not effectively following the DCA method, you don't expect to get the benefits that comes with the method. No matter how small the budget is DCA method, consistency is what matters, before you know it you have accumulated enough.

Investing in DCA method is a method of maximum savings, it is proven that the person who invests in this method has achieved great success. Because if the price of Bitcoin increases even if he invests regularly, the method controls the average price ratio. And while the price of Bitcoin is low, the average price controls two. So in whatever way you think this DCA method is the best, the more long-term Bitcoin holders there are, the more nearly everyone has had success using this method.

IMO for us not to be discouraged in hard times when the price of bitcoin is getting low, I think it's better we focus on the size of bitcoin stash and how much we are going to accumulating than beign bothered about the price of what we have compared to when we bought it, cause if we Continue buying even in hard times we would end up getting more bitcoin and eventually balance our total average buying price and it would not even seem that high anymore.

But the problem is that most people love to monitor their investment or are emotionally attached to the price of their holdings and they don't feel good when the bitcoin price is getting low, so instead of taking such low price to their advantage, they might end up in a stage of frustration and delay on buying or would not be very motivated to buy much during that time and end up missing out on good opportunities, that's why as early investors we should not be bothered or moved by market conditions and focus more on accumulating cause that is our only goal.

Bitcoin is expensive to alot of users , but it has made it easy for those who can't afford to buy one or more than ,  to purchase little quantities according to their financial capability, using any method or strategy convenient for them. Like one who's new in accumulating bitcoint may decide to use DCA method to keep accumulating like 4-10 yrs . Being frequent and all that he or she would see how well their portfolio as grown. That why when it comes to investing in Bitcoin patients is one of the key to greatness (hodl) . Though it may not be easy but with proper planning or doing the needful you will save yourself a nice smooth investment.

why trade with your Bitcoin in the name of short-term profit when you could just hold and let it grow as you keep accumulating more quantity in your portfolio, now look at Bitcoin recent performance how Bitcoin was around $40k months back . But look now bitcoin is now around $71k . You can see the great growth and more yet to come . And you can see that those that even started their accumulation when the price was around $40k would be in good profit too. And many have missed it due to selling their bitcoin for short-term profit ( trading) , long-term may take some time but still with frequent accumulation, you will see that it worth it when you endup building a good portfolio. To do that you have to fight that huge of wasting or risky funds on shitcoins, and make the funds useful in investing in bitcoin.

I think this is the main reason why many people get distracted and into shitcoins in the process of looking for an alternative that they think that would be a good investment like bitcoin but the lesson they would learn later is that no alternative could out perform bitcoin and there is no other choice than to claim a stake in bitcoin no matter how small the start may be, and what is worse is that investing in shitcoins can be a very long and overwhelming process especially when they are decived with the idea that they are looking for an alternative to bitcoin they could search and search and end up involving in too many shit project and may even  develop high gambling tendencies especially when they make some profits out of holding some shit coins and when or if they ever realise that bitcoin is a better investment and worth holding more than any other alternative they may not be able to invest wholly in bitcoin to rather replenish lost times but might also approach bitcoin with those short term mindset of making 100x gains from bitcoin as tho its a ponzi scheme and wanting to get this results in such short time and would not be able to stay in bitcoin long enough to build a good portfolio.

Even advising that those that can't well control themselves should allocate 10% can get them in trouble cause I know first hand how that shit can go from searching or trying to pick the beat shitcoin to trade or gamble with along side bitcoin they could end up over allocating much time to it failing to grow in knowledge concerning bitcoin investment or over allocate to gambling with shitcoins and slow their accumulate stage of buying bitcoin,I think it's best they leave all trace to shitcoins at least for the beginning stage and focus wholly on bitcoin while they grow their stash, then maybe after a few years of accumulation they can now gamble if they wish, but very few persons would agree to this especially if they are quite far gone into believing and earning some profits from shitcoins.

Many persons feel bitcoin is too far gone and they fail to realise that bitcoin is still an early asset and it not even up to 20 decades or as old as a other asset like properties,  gold , stock and bonds but it has quite proven to be a good asset even this early, Its possible to say bitcoin has not reached its prime and still has a lot of good potential.

Ignorant of the fact that they don't know the worth of Bitcoin just that it is expensive and they couldn't afford to invest in it and make huge profits because of that.

Many people believe that investing in bitcoin requires huge money to see profits in their investment, they don't know that the little it is(money) the bigger it is in the future than those shitcoin that will reign within a short time in the crypto space and fade out. Nevertheless, the crypto market is an open place for everyone not to think of buying the exact thing at the same time. Some can buy late, buy later or even not to buy at all from the market based on reasons best known to them.