Topic: Buy the DIP, and HODL! - page 271. (Read 136443 times)

I believe if we have been talking here about things, approach to a safe investment has been often deliberated on, anyone who fails to proceed correctly having gone through this thread is left to face the outcome. Talking lamely about investment, It is frowned upon to invest what is very essential and vital for our survival even if it is something worth investing but the question should be, is it possible to face the repercussions when it calls for the demand of those vitals resources being invested. Same goes to Bitcoin, our funds are the vital assets that basically controls everything, our investment, our survival, emergency/reserve funds and when it is poorly shared or managed, we are bound to face the repercussions which can lead to tampering our investment, knowing this as a wrong approach we are to consider applying the right approach by investing in percentage of our income in a suitable and convenient approach that it doesn't affect us in any way, not doing more than our financial status all in the name of catching the DIP, It is extremely wrong just as you as well pointed out.

But i do have a problem with that. As a potential investor the length of time we hold our Bitcoin before selling, the more chance Bitcoins price has to increase in value aligning with the idea of long term investment. Investment maturity of 2 - 4 years in Bitcoin in my opinion is not comfortable for me to sell. If you have the privilege's of owning 1 Bitcoin or any amount of Bitcoin why choose to sell?. Anyone considering to sell there Bitcoin should think twice before selling. Because big companies are into Bitcoin investment after the ETF approval and the circulation supply of Bitcoin is low that it cannot be available four everyone, once an investor choose to sell, there big companies are waiting to steal it from such investor and it will be difficult as well as it will take a long time to get back that amount of Bitcoin again.

We all know how it wasn't easy when we started accumulating our Bitcoin, going through bumpy ride, no matter how high and how low the price goes we maintained consistency because of the reason why we originally decide to buy bitcoin and that same reason made us HODL. Selling to take 10% of profit is okay but selling off my bitcoin is something i would never do at least not today.

Infarct most of these investors sell their Bitcoin profit to fiat and start holding fiat which is quite not ideal to me.

That is more of the reasons why you as an investor, you definitely need a robust emergency fund, an emergency funds that can sustain you for the least three months, because aside emergency funds, you must have a monthly or weekly source of income to keep you afloat in your daily lives, without having to fall back to your emergency funds at any slit opportunity, because to me, emergency funds is meant for health or any other pressing issues that is out of your control that can't wait to be sorted out month ending.

But if your problem is still on the level of fending for your daily needs, then I am quite sure that, it's not the best time to invest, because since you can't even afford your daily needs properly, you will definitely eat your investment bit by bit till it finally collapse, when faced with a pressing financial needs, so the best way to have a stable investment is investing with a money with you can do away without for a very long time, not a money you need for survival in a short while.

This is why one must have an emergency funds available in other to take care of whatever emergency that arises during your bitcoin accumulation phase. A new investor that does not have his emergency funds ready, should not think of investing at all, until he have built up his emergency funds up to 3-6 months, that is when his investment in bitcoin will go smoothly, using DCA method regularly. What is the essence of you investing without an emergency funds, when you know that emergency funds is a back up plan to healthy bitcoin investment practice.

Why it is not good to sell your bitcoin for any emergency is because when the emergency arises, it might be that bitcoin price is at the dip, and because you didn't plan for unforseen circumstances in future, you will sell at lost. Only that can discourage that person from investing again, because he lacks financial management on his funds. We are not suppose to have only emergency funds, but we are to also have a reserve funds and float, to take care of any little expenses so that we don't start deeping hands in our emergency funds when it is not necessary. Like what @JJG said, investors who are close to their entry-level 'fuck you status' can use their bitcoin investment for their emergency funds, because they have reached the level that they take profit once a monthly to build up their emergency funds.

When you don't have an emergency funds, and a problem occur, you sell part of your bitcoin for that problem at loss due to the price of bitcoin at that moment, at as when the problem occurred. I am sorry, you might not succeed in your bitcoin investment if you continue like that, because you are always running at loss. This is why no emergency funds..no investment.

People who cannot meet up with their daily needs cannot invest in bitcoin, only if they look for other means of income to increase their overall income, so that they can have a discretionary income which can be put into bitcoin investment.

This is supposed to be what we aim for since it should be nice for us to do some good decision in regards on our holdings since once we reached on its maturity date or target date when to sell then we supposed to do some actions. If people are already fine with figures they see and they are ready to sell then for me its fine since that is the target we set and as long as we gain profit then everything is good out our end. But after those profit taking we should do our next plan since its good to repeat this investment since we already see a lot of good thing happen and its been tested for many years that bitcoin is really a good investment for long term that's why if we want to be happy and gaining for something in future then I guess its good to have good start again on bitcoin then do DCA again to gain profit for next 4 - 10 year cycle again.

Selling our bitcoins out of panic will never bring any positive result to us that's why its important for us to know certain changes that might happen on the market so that it can strengthen up our believes that this good cycle will continue to occur for more years of existence of bitcoin. So if they continue gain knowledge for sure they will never get affected by any fuds but rather they will focus to build up their portfolio and how to be more successful in future by help continuous accumulation and proper execution of their DCA strategy.

Emergencies can occur at any time so we are required to make every effort to overcome them, including sacrificing the investments we make.
For example, health or education problems are problems that cannot be tolerated when you need money immediately.
I don't think it's a problem or a fear for us not to start investing, problems that occur unexpectedly in life are a normal thing in my opinion, and I never thought it would be a reason for us not being able to succeed in investing.

This is different from people who are unable to meet their daily needs, such people certainly will not think about investing.
Investments are only made by people who have more money than they can use and the better option is to invest compared to saving.

Yeah of course you are right because one of the factors that courses such panicking is over investment which could sometimes caused by fear of losing out buying opportunities because this factor has propelled numerous investors especially the new ones who doesn't have a good knowledge of investment to get into trouble on the long run, actually being consistent on accumulating Bitcoin is very important but with the length at which most investors are going about it is actually wrong because whenever they see a buying opportunity they tend to invest everything they have at that moment and later they will start having some difficulties taking care of themselves and from their all they will be doing is monitoring the price of Bitcoin and of course it will surely result to a serious panicking which can even results that investor selling his investment.

So actually most of the failure of investment is caused by greed and poor planning because an investor who has a clear vision of holding will never be clouded by greed of taking advantage of any opportunity because his target is for a long term holding and to remain sustainable their most be some measures and limits so that his investment will never be affected on the process.

I don't have a problem when people who have gotten to their maturity date in bitcoin investment decide to sell part of their bitcoin, provided they are not going to sell off everything and have no bitcoin in their possession. But selling off your bitcoin possession due to panic and uncertainties is really a bad thing and there is no profitability in that. Know it fully well that there are those who specializes in spreading fud so that market will go down paving the way for institutional buyers to come in and buy bitcoin cheaply.

Those investors should not to be taken seriously considering that they will always run to sell of part of their holding to solve problems. This set of people cannot successfully hold bitcoin for a full circle. Don't make investment when you cannot feed yourself and take care of your basic needs without turning to their investment. When we do invest, turning to our investment to solve problems should totally be out of the equation.

That is the truth of this system, there is no way you can win the raise by combining your investment with your emergency fund because money has it spirit and human want is insatiable as problem keep rising you won't know when you have exceeded the limit of touching the main investment fund , which is very unwise for any investor to practice. Like I always argue over my last post no body run a raise looking back can win the raise with good results if you invested for long term holding through the DCA strategy and you keep on monitoring the market and withdrawing your profit before the time, based on the facts is your entitlement and your investment as well, it really show that your not ready to keep to the investment rules which will help you at the end because all the profit you withdraw is still meant to have some impact of increasing your accumulation, for those who are good in maths you believe me that if you invested $200k for 4years and you leave it without touching the profit the yearly profit will also add up to you capital to increase the investment for the next year which authentically increase the subsequent year profit. The best in all us to free any thing that will leads to touching your investment weather profit or not to mature it accumulate to the actual year of investment.

Proper planning must have been put in place because Long term investment is not something to jump into without adequate preparation or planing, I see why people always focus the profit gain in there investment before the actual time of maturity is as a result of lack of preparation and planning which don't work well in this kind of investment, like my people always said that rabbit of one hole is easily killed by hunter, it means your investment won't survive the heat since your not prepared because your meant to zero your mind in anything withdrawal and use other means of income as those things is already in place before venturing into long term investment.

you know that the uncertainty regarding the gravity of emergency situation that might arise during the time we are still holding our Bitcoin is one major factor that might affect some people's budget on which amount should be kept out for emergency situation and that mentality that keeping up to 4 to 6 months of your earning as emergency funds is too much could sometimes put you in a situation where you would want to reduce the allocated amount for your emergency fund thereby exposing your Bitcoin holding to a possible touch in times of real emergency. real life emergency situations like health challenges and impromptu events doesn't really come with little demands and so  it's damn necessary we allocate a good amount of funds into our emergency funds wish will in turn serve as a sure shield that will protect our holding from being tampered with when the real shit plays out

You've forefited the purpose of having an emergency funds the moment your holding starts doing the job of your emergency funds and that's going to only end up stagnating your portfolio and if you consistently take out a part of your holding to solve a supposed emergency that you should have earlier made adequate plans for, you will likely spend years and years accumulating your BTC but will never be able to stack up a good chunk of it. Part of what might help our BTC holdings is to treat it as an independent asset that's outside our control  and by doing so, our plans and expense doesn't in any way brings it to the equation as a possible option to be considered when looking at a means to getting funds to sort out real life shit should there be a challenge that's more heavier than our emergency funds. And the truth is that if you've decided nothing goes out of your BTC holding untill you're able to stack up to certain amount and you're serious about it, even when a supposed emergency comes up to tempt you to touching your holdings, there will always be an alternative option that you have to take outside of your BTC holding and so I feel there is a lot that your mindset and mentality plays towards your holding.

This is a weird way of talking about an emergency fund, and sure you may well be including the idea of emergency fund with the idea of reserve funds and cash floats, yet one of the things about an emergency fund, it is generally not a part of something that you take from your income as a percentage, because once you have established it, you don't need to keep adding to it... .. so yeah, whatever you are doing might be working for you, but it might not be workable if a true emergency were to come, then usually you would need 3-6 months of income/expenses within such a fund in order to be able to get through the emergency situation (such as loss of cashflow and/or some high expenses that had not been anticipated). 

I surely don't have any problem with the idea of replenishing your emergency fund, even though emergency funds should almost never be used absent a true emergency, so usually you would be using your float and/or your reserves prior to even needing to dip into your emergency fund.

By the way, the management and maintenance of emergency funds, reserves, and floats tend to be way more important for poor people even though it likely is difficult for poor people to establish such funds and such good personal financial management practices.  Rich people may well have a variety of investments and they can actually use one of them for their emergency funds, and also if someone is at or near fuck you status, then they can actually use their investments as emergency funds, since maybe they are already able to draw from their investment at a monthly rate, so they are able to draw an extra 3-6 months from their investment without much of any problem, presuming entry-level fuck you status could be anywhere between 12-25 years of income already in your investment (and with BTC I am valuing the BTC holdings at the 200-WMA rather than at BTC spot price).


If you been in bitcoin since your forum registration date of August 2016, then surely it is possible that you have accumulated enough BTC, yet to me, you sound like you are looking at bitcoin like a trader, and you are ultimately likely to be ending up selling too many BTC too soon, because you do not recognize and appreciate that long term investing and building wealth takes time, and when you get there, you are likely able to recognize an ability to start to make withdrawals... but yeah, if you are fucking around and trying to figure out when to sell in order to buy back cheaper, then you are playing a different game, and you are likely going to have fun staying poor because you are selling too many BTC too soon instead of having a plan that ultimately results in being able to either engage in sustainable withdrawal practices or raking practices. Raking practices can usually be started quite a bit before sustainable withdrawal practices, but guys can come to differing conclusions in regards to employing such practices.


Sure.. so what.. there are people who overinvest, and they don't know how to treat bitcoin like a long term investment rather than worrying about playing the price waves.  Those are temptations that each of us have to overcome in terms of putting practices into place in which we make sure that we have long term accumulation plans that don't necessarily involve selling until after we might have already created a decently sized BTC stash.


It is not understandable to use part of your BTC as your emergency fund, unless you have already reached near or close to your fuck you status... but yeah, people use a lot of things for their emergency fund when they have not established a good practice in regards to their emergency fund, their reserves and their float... which should be part of any sound investment in which you want to choose which assets to sell instead of being forced into selling your BTC at a time that is not completely of your own choosing.


We are not talking about trading in this thread.  Don't let the "buy the dip" throw you off.

The trader who want to make profit should try to buy the bitcoin at the low price in the market.Because the market will not the stable one,based on the demand the price of the bitcoin will increase and decrease.The dump in the price will help the trader to make huge profit in the trading by buying at the low prices compared to the price at the bull run or pump in the price of the bitcoin.The trader should understand the process need of time,the panic buying or selling will not help the traders to make the big profits.Their was huge difference between making the profit or making the huge profit from the same trading.

The trader should allow the market to react for his trading,because trading at the hurry or panic will leads to a loss in the trading.The early investor of the bitcoin are making the money in the bitcoin now.Because the price of the bitcoin had crossed the 70k mark in the recent days,but many of us know we wait huge time for the price of bitcoin to reach the 10k dollars.The trader should analysis of market for atleast one month before investing the money in the bitcoin.

I'd say that I am one of those fortunate folks that have been holding til' then and got them before. I'm not bothered but it's always interesting to look at that point of view of each and everyone of us here about the pricing of Bitcoin.

And with what I have observed, every time there's a dip and flash crash. You'd see people asking if the price will remain at that low dipped price but they don't analyze that it's a normal scenario whether we're in bulls or bears.

Agree.

Those that hold for different situations and don't panic during flash crashes, those that have diamond hands as they say will always make the profit and advantage of holding Bitcoin.

I don't think it's wise to even compromise as a well mature investor, our emergency funds should not be use to invest in bitcoin cause that is actually the insure that we don't sell of our bitcoin holdings, but yeah I can acknowledge that at times we might get into situations that we might want to invest with our emergency funds maybe due to lack of funds but its not worth it unless we are very sure that we can replace that money in no time.


Your quoting the wrong person, correct your quote.

Most individuals are just in for short-term profit only by trading with their bitcoin and stuff which ain't encouraging, such people are just wastiht some valuable resources , due to the aim of wanting short-term profit. And most time they usually forget the risk in it . Like fot instance whenever a longer-term investor experience any dip in market, instead of being in the state of panicky he or she will to it as their advantage to purchase more. While a short-term holder will quickly sell to avoid dips, with the mindset of cutting losses . And you can't compare the profit of  those that are holding a better or huge  quantities in their portfolio to those that normally trade with their Bitcoin .

Taken your investment as your emergency funds, shows that one ain't ready to hodl for long . Because in order to secure a better Bitcoin investment one should have some discretion funds, that he or she won't need for long time, to hodl Bitcoin.


Exactly, you on track mate . But don't forget even those that have enough, selling all your holding ain't still a smart move but rather taken some profit would be pretty good ( for those that have enough Bitcoin stashed ).

Edited: thanks Troytech for bringing it to my notice ( concerning the quote).

Then I think we should separate those mindset from each other, anyone that is thinking in terms of wanting to buy low and sell high is a trader and doesn't value bitcoin or understand bitcoin or even investment, there should be a process to everything and not just any news that pops up and you are in a state of panic to see of your holdings or even worse watching to know when to sell, and mind you no one is saying that selling is a bad thing but the issue is that selling too early is not the best approach to bitcoin cause you are inevitably missing out on the best part which is to own Bitcoin.

The other mindset here is those that are thinking in terms of accumulating bitcoin and not been bothered about the price of bitcoin, if you are still so early in bitcoin you should be less bothered about the price or news surrounding bitcoin and focus more on buying bitcoin, cause at the end of the day its only those that have enough bitcoin that can really make profits from selling bitcoin.

This shouldn't have to do with those that are still early or a low coiner in their accumulation journey except those who already far gone or probably in their maintenance level else it will be considered that they are using the money that is meant for their personal needs to invest in Bitcoin. However, irrespective of the fact that our emergency funds will varies from one individual to another based on financial situation and personal expenses, the Idea of the emergency funds is to set aside 3 to 6 months worths of our expenses such that  selling part of your investment when you still early in your accumulation journey can be very bad and retarding because it will be senseless to be selling part of your Bitcoin investment in order to meet up your emergency when you are supposed to be making buying your hubby and possibly being aggressive without over doing it in order for you to have a sizeable worth of Bitcoin.




This attributes doesn't and shouldn't be applied by those in their early stage of accumulation or a low coiner, there is no certainty of whether the market is going to be bearish or bullish after the halving and how much of it's extension perhaps past events doesn't give a guarantee of the future don't forget it is Bitcoin we are talking about, a low coiner shouldn't be on standby to look at the the direction of the market after the halving to see if it will be bearish or bullish before making their next move and that doesn't seem to be normal it is abnormal, maximizing every opportunities that shows it's self in the market in other to have a sizeable worth of Bitcoin should be there priority. The Idea should be to keep buying and making other arrangements for ups and downs that may or may not happen which is better than being on standby before making the next move. While those that are already in their maintenance level can be on standby because they may not be necessarily buying all the time.

Yes agree with with this. Lack of planning cam cause a lot of things on the Bitcoin journey, when an investor doesn't a good planning towards his investment, the pressure of investment will make him feel depressed because he's not well set for the investment. An unexpected expenses is also called emergency expenses, and if you are not having a good money on the savings account it means you are not ready to achieve big on the long term investment because any emergency can happen that will need money before it can be resolved, so if one do not have a quality amount of money the person can't hold Bitcoin long.
IMO investment without emergency funds is not advisable because there might be no reward in it, emergency funds can help build your Bitcoin investment higher because to me, its just like a back up asset that can help an investor achieve the amount of Bitcoin he/she wants if they keep on accumulate. Saving funds from 1 to 3, and 3 to 6 months. Rebuilding an emergency funds is very important when it concerns investment Bitcoin investment plans. Let's maintain $1000 for emergency funds, if you spend half of it based on excessive emergencies, rebuilding it might take 3 months again but it's based on how much you earn monthly.
Anyone who's interested in Bitcoin and has already learned about Bitcoin investment should know that he/she can not go further without having an emergency funds, and it won't be better if an investor takes bitcoin investment to be an emergency funds.

I think the Basic principles and first knowledge when it comes to investing in Bitcoin is that the person must have a reliable source of income and to note that Saving of Bitcoin isn't something that needs to temper with always that's if you are not the short term trader's that tempers with their coins always because as a true investor setting out boundaries and principle that will help you evade unnecessary  or sometimes needed expenses. If the  funds are well set up then urgency to temper with your holdings wouldn't be a problem at all

It is their mindset you cannot stop an investor from thinking the way he wants to, because in investing you must look at the pros and cons before making your investment, so speculation is also part of the market because people can choice to believe the immediate information they are having at a certain time because you cannot just throw away rumours, so what you do as an investor is you try to pick vital information. as we speak at the moment some investors are on standby to look at the direction of the market after the halving to see if it will bearish or bullish for them to make their next move, and that is very normal.