Topic: Buy the DIP, and HODL! - page 275. (Read 108839 times)

I don't quite get your point,DCA is a method for accumulation in order to achieve a lower average purchasing price as the name implies(dollar cost averaging) so by definition DCA is used for hodling,what you're promoting is trading

 
As an investor especially one implementing DCA strategy,your plan should be accumulating as much btc as you can with the funds that you've set aside for investment and not thinking about capitalizing on little gains and selling off a portion of your accumulated coins due to bullish price action overtime that will greatly harm your portfolio and accumulation potential and overall it is generally not a viable investment strategy

Generally the topic of discussion is strictly based on Bitcoin here and not shitcoins that is your use of the term cryptocurrency implies that you are including altcoins in the discussion whereas the topics is talking about long term bitcoin investment. Moreso talking about keeping close eye in the market movement isn't necessary for investors accumulating Bitcoin for long term, those who keep close eye to the market movement are known as the traders who's intention is to sell at any profit added to their investing for short term profit and that is not the topic of discussion because trading is considered to be gambling.
 Considering your DCA method serves you better because it reduces the risk tolerance of volatility and market fluctuations nature of Bitcoin.

I think you are going about this the wrong way, make like those who guy shitcoins and expect it to give them X10 or more with some time, probably few years. Here we do not know if the price of Bitcoin can increase multiple times next few years, that is not the main emphasis rather to build a Bitcoin portfolio over the course of some years while expecting it to worth something great in the future even though we still keep open mind to all possibilities. Our job is to accumulate Bitcoin with part of our money (not all), and hold it for long. We use part because we have to eat and do other important obligations while also setting aside some money for Bitcoin as a form of investment for the future. The price now is irrelevant because we are not looking to sell soon

If your plan is to have a Bitcoin portfolio say in the next ten years, I think you will not bother what the price is now because whatever the price is, you will always buy so you will be able to achieve your aim. If you have this relaxed mindset, you will be able to approach Bitcoin in the right way.

This is true, when I started, I remember how often I got tempted to try and sell when my portfolio entered good profit or when it goes deep into loss and refused to rise. It took me understanding of the DCA method and subsequent application of same to overcome this. Monitoring the price regularly is a bad practice for anyone that is investing in Bitcoin for longterm. I think more about getting more Bitcoin than what the price will be. This whole period of ETF pumps did not move me one beat because even though Bitcoin did X10 because of the ETF approval, I wouldn't have sold

I couldn't agree more with you, the main takeaway here is the mindset and approach,most people focus more on trading for the short term gains
This thread is meant to encourage investment mindset and to treat bitcoin as a tool for the future and not to be distracted by meagre price fluctuations for instance,if you were fortunate to have begun investing and holding bitcoin say 5 years ago,you'd have made ample profit by now,then imagine if you're still holding or if you invest now and hold for 5,7 or even 10 years think about the gains you'd have made by then

This is a very wrong approach to investment or accumulation and should be advised against
For instance,what if you never see a dip or one convincing enough especially since halfing is barely weeks away and the market is most likely to be bullish
What if you buy the dip and the dip dips even more,you'll then start contemplating selling in order to loose much

That's why this thread is very nice especially with encouraging use of DCA,if you understand the concept of DCA even partially then you'll find that just waiting for a dip is largely ineffective and time consuming since many factors affect the movement of the market

My advice to you just like this thread stresses on is to keep accumulating irrespective of price action(ie whether there is a dip or the market is bullish) the goal is to accumulate as much bitcoin as you can which overtime will increase your compound interest since bitcoin is projected to be bullish in the months and years to come

You need to stop looking at it from the perspective of trading and start thinking of btc more as an asset or more like fixed deposit and not just looking for ways to make small profit in the short term

I think you're missing the point,the purpose of this thread is for longterm investment, to encourage accumulation of bitcoin and as such you shouldn't consider the lowest price or the movement of the market

There are many methods for accumulation but DCA is greatly encouraged because it negates the effect of price action
We highly advice you buy as much btc as you can whenever you can and in the event of a dip buy even more because in the long term,it will reduce your average purchase price(ie using DCA) and increase your compound interest
So you should focus more on having funds available to accumulate bitcoin irrespective of price action or movement of the market in the short term

You are new to the forum so I understand when you have this mindset and your line of thought. I came from the same background too until I learnt from this forum and got better. With time, you will learn the right approach and even put such knowledge to good use in your Bitcoin buying and holding. Now to set the records straight, our target is to buy Bitcoin and hold, base on our own financial capacity, for long term running into years.

Before getting started, it is better you have a target and plans you are working towards. This target is what will help you in the buying process as well as how you manage your Bitcoin asset after buying or while you are at it. for instance, many of us choose Bitcoin as a means of saving for the future, at least it has proven to be a reliable option for saving than keeping it in the bank to face inflation. Those of us in this category do not necessarily look at the price always because we are working according to budget where certain part of our income are injected into Bitcoin as they come to save for the future. If the price rise so much, that is a huge plus to us and even if it does not rise that much, there is no problems but chances are high that the price will rise over some years as the historic data of Bitcoin has shown. So the objective should be known from the beginning. If you believe in Bitcoin, then you must develop a long term objective for it as that is the best way to maximize the opportunities that Bitcoin offers.

If we dwell so much in trading, we might make the discussion here appear like trading is an option for discussion here. I think we leave trading for the right section of the forum or the topics that addresses them and approach this thread with the caption it carries which is buying and HODLing. People already know how risky trading is so anyone going into it should be prepared to bear the risk.

Even people who have mastered trading still lose money while trading, which is why trading is not something a newbie should practice because he or she will lose his money. Of course, traders are high-risk takers because they will be making little profit from bitcoin by buying at a low price and selling at a high price in the short term. Which I think is not a good strategy towards owning a bitcoin because you might miss out on bitcoin when you buy bitcoin at a low price and sell it at a high price and still wait for bitcoin to dip so that you can buy it again, but the bitcoin price refuses to dip and keeps making an upward trend to the point where you cannot buy it again. It is not just for beginners to accumulate bitcoin, but they should make sure before they start accumulating bitcoin they have a source of income that they will use, like 10% of their income to accumulate bitcoin every week or month, and they should also keep an emergency fund to take care of their financial needs after they start their bitcoin accumulation journey with the DCA strategy, so they will not sell their bitcoins at a loss because there is no more money to take care of their financial needs.

monitoring the market movement on a regular, won't be encouraging ones yah seeing your portfolio going down due to a certain dip the mindset of you selling would be initiated. Like when bitcoin dip to the price range of $38k I didn't bother checking my portfolio I just keep on accumulating more bitcoin, because you monitoring it always yah just testing your emotions. And beside not even thinking of withdrawing this year I may start atlest around the year of 2025 that why I'm actually focusing on learning more about this [ANN] JJG Sustainable Bitcoin Withdrawal Strategy. so that when I'm ready I would make use of this strategy

The question is how can you determine or assume that which is the lowest price or dip considering the volatility nature of Bitcoin, the conception should be buying at every dip because waiting for the lowest price or dip can be a wrong approach in your Bitcoin accumulation and can be time consuming. However you can keep accumulating your Bitcoin through the DCA method and take advantage of every dip rather waiting for the lowest price or dip.

On the contrary holding Bitcoin for long does not require you to keep a close eye on the market. There are certain conditions that will enable you hold Bitcoin for long and monitoring the price is never one of them. As a matter of fact, if you have your eyes glued to the market, monitoring the price, you are setting yourself up for emotional torture and the temptation of selling quick.

To be able to hold Bitcoin for long, first calculate your basic expenses check if your income is enough to cover it and still keep some balance, part of which you will invest in Bitcoin and keep the other part for any emergency expenditure that will come up any time within the period you are buying the Bitcoin.

To achieve this, how you buy the Bitcoin is very important. I mean, you can chose a method of buying Bitcoin which is call DCA, it require you to be investing a certain amount you have calculated to be fine for you to put in Bitcoin without putting your self under pressure. This amount can be invested weekly or monthly into Bitcoin as the case may be. If you are not comfortable with this method, you can just buy Bitcoin anytime you have the finances but the most important thing is that you must invest only what you can afford to leave in Bitcoin for a long time without being affected in any way.

Those who want to hold Bitcoin for the long term must keep a close eye on the crypto market. Whenever you see a dip in Bitcoin price in the crypto market, you will try to buy and hold Bitcoin. But I know that Bitcoin will pump multiple times in the next few years.  .Now bin our time and expect to earn multiple times in a few years from now.

Depends on their plans towards their accumulation since there are people intend to split their balance into half so that they can use it for hodling and the other half for DCA then I find it good strategy to use after all since a person doing that may have balance to use in future if good thing happened which I expect since there's huge potential for bitcoin to grow more also they can ride up the current short term happening with bitcoin because they also have balance to use intended for it.

That's why its important for a person to know their priorities or set goals towards their trades and accumulation so that they would know what they really like to happen on their investments. I know its hard for some people to figure out what they like but constant experience towards the market events will help them gain knowledge and possibly they can create their own plan that can possibly generate them some good results.

I was actually thinking about what you posted, and you may be right. Perhaps it shouldn't be how much a person could purchase now, and chase life-changing gains. Bitcoin is more about self-sovereign ownership of our own assets, freedom, and censorship-resistance, NOT entirely to get rich. Although getting rich and doing that with Bitcoin would be nice.

Remembering the ethos upon which the foundation of Bitcoin was built on, then DCA, buy at any price NOW if you can is probably what people should do.

Not only that, this factor alone requires reading the direction of the market. For example, if the market keeps going up and up in a day, slowly and normally, in general, the lowest price is what we are most looking for to buy, especially if we have set a schedule beforehand in a week, at least we can buy and BTC installments at least 3 times.

Traders are not hodlers anymore because as they are into buying and selling at any little profit they see in the market. It's not about sticking to what what works for you . The thread is named buy the Dip and Hodl for a reason. Anyone who see those who are buying the dip and hodl as inexperienced ones don't know what what they are talking about. Is Microstrategy inexperienced? Hodlers has been the people who has recorded massive profit in bitcoin. So for me I don't see anything like inexperienced in buying the dip and hodl.

Bitcoin investment cycle should be aimed at long term investment because that os the only way to fully accumulate all the variables that usher in good profits, and yes indeed our focus in this topic is based on that fact, but most time, young upcoming investors who may not have the cashflow to hold they Bitcoin for that 4-10 year long term bitcoin investment cycle,  because they are forced at some point to sell their Bitcoin to solve one problem or the other, or even applying the DCA approach so as to increase their capital with the thought that buying low and selling high based on short-term speculation could help the to achieve a more financially stable position,  those set of Bitcoin investors will always speak based of their mindset and position,  even though that, on the long run, the maximize profits in that practice cant match up with the one that comes along with just holding your Bitcoin for that space of time without doing any action either to sell with the intention to buy back at low which is what most call DCA approach.

People who invest and want to hold investments deeply are actually more focused on buying investments than selling investments. Selling investments is not a feature of long-term investment at all, rather holding the same amount invested by an investor as well as adding new investments is the main feature of long-term investment. Buying and selling is normal but for those who want to hold Bitcoin deeply, selling is not normal but buying is normal. After investing there is no need to think that we have to sell the investment but our full focus should be on holding the investment deeply. It happens in the market that the price of any coin fluctuates and due to fluctuations, investment sometimes shows profit and sometimes loss. Considering these gains and losses one should not sell the investment but considering the ups and downs of the market one should think of increasing the investment amount.

If an order is set with the target price fixed after investing and if one's investment is sold at that order then it must be considered a trade.  That is why it will be considered a business because the investor bought but could not hold it, he sold it at some profit and it definitely falls into the business. In case of holding the investment deep, the investment cannot be sold at some profit but an investor can increase his investment if he wants to by DCA method.

Long-term investments are generally made with a specific time frame in mind. For example, if an investor invests himself in a five-year plan and the market price changes significantly during these five years, and despite this change, the investor holds the investment for a certain period of time without selling the investment, this is long-term investment. If the investor thinks that he buys Bitcoin for $1000 and he sells it when he gets $200 on his investment, but here he has a business objective of making a certain amount of profit. Since his investment in this case depends on a certain amount of profit, if we consider his method as a businessman, then we may not be wrong. If the investment is made with the intention of holding the investment in depth, one must try to hold the investment for a certain period of time.

It is normal that I invest and after waiting for some time the market goes up a bit due to which I see some profit from my capital at which time my mind wants me to take this profit. If we invest with the intention of receiving profit, but we could not hold the investment for a long time, then we have to be patient and hold the investment without selling it in the hope of something better. Just as we get excited to sell when the price goes up a bit, when we dump a bit we feel like we may have invested at the wrong time, but in both cases we need to be patient enough. Because we have invested to hold our investment for a certain period of time, what happens in the middle periods will continue even if we do not give much importance and the more we give importance, the more we will be hindered in holding our investment deeply.

I totally agree with you that while buying we should buy thinking that the amount of money we are investing is not for sale at all. After investing and every time we increase the investment we have to think that we will focus only on holding the investment deeply and increasing the investment by understanding the opportunities. Whenever our full focus is on holding the investment deep as well as growing the investment, we will not want to sell the investment even if we see enough profit because then our expectations will be high.

the decision to go for either what you call long term investment which is HODLing or short term investment which I feel you're referring to TRADING depends totally on the individuals choice and experience.

For people that have mastered the art of trading, they might look at buying the DIP end HODLing it as a strategy for the inexperience ones while those that only buy the DIP and HODL might think that traders are high risk takers but the thing is more of focusing on what works well with you and sticking with it. The only issue is that because of the complexity involved with trading and the chances of a new person just starting his Bitcoin journey to experience looses more in trading than he will do in just Buying the DIP and HODLing is the main reason why it is more advisable for a beginner to start his Bitcoin investment journey by just accumulating it and Hodl.

The topic of this thread is built upon a presumption of long term investing, and we are not trading here or even selling for short term profits and/or expectations to buy back lower. 

if your investment plan is 4-10 years or longer, you are likely going to have better chances of experience compounding of your invested amount and also you will likely increase your options regarding what you might want to do with your bitcoin investment later down the road, especially if you both hold and invest more than one whole cycle... notice the thread topic also says nothing about selling, and that is on purpose (rather than an accident).


You guys seem to be getting all hot and bothered about keeping coins on exchanges, but also you should not be ignoring that if guys are making a lot of small purchases of BTC, they might need to consider allowing their BTC stash to build up to a certain amount prior to withdrawing them, and personally I recommend to not purposefully create UTXOs that are less than $500 to $1k, even if you might be able to currently transfer for reasonable fees, we also need to give ourselves more options in the future, so part of that is holding our own keys but another part is to make sure that we do not have UTXOs that might be too uneconomical to spend under certain high fee market conditions that might happen in the future that might even be worse than the fee situation in the last nearly 3 months.