Topic: Buy the DIP, and HODL! - page 28. (Read 138629 times)

Sometimes people do not understand that they have adopted DCA in the investments they make. But slowly they will realize that the comfort of the investment they have made so far is with the DCA strategy.

The advantage of DCA does not look at the price, when people are due to buy, they will do it.

There is also no pressure in DCA, for example you execute BTC with a budget of $20 and the next week it becomes $10, it is not a burden because we continue to follow up the accumulation for the next 10 years.

In addition, the convenience of DCA will not make you stressed with the price, because the determination of the average entry will be calculated when you are satisfied or have reached the last point such as reaching a milestone in 10 years of accumulation.

Apart from that, the advantage of DCA of course makes us consistent in buying because the routine we do runs once a week for a long time.

You both are correct in your point of argument, it's unwise and misinformation as I will also see whoever that think that only the DCA is the means of accumulating or buying Bitcoin , for instance taking a senerio like this a man is owning a debt and was advised to pay installmentally to easy the debt as he can't afford to pay all at once does not means that if the debt is paid once it will not be accepted  the condition is only to help him or relief him meet up paying the debt since it can't afford paying once. DCA in relation to method of buying Bitcoin is not far from this example, as it's a means that offer all kinds of investor opportunity to invest within their reach, for me it easy stress if one can't afford to buy the lumps sum just as one with huge debt without different sources of financial support can't pay once so is DCA relief to many investor and newbies while accumulating Bitcoin. Though some who have all it takes to make use of lumps sum and dip as best choice could be there but I see DCA strategy as elastic medium of accumulating Bitcoin as the opportunity to accommodate all kind of investor is there.

It's almost laughable to to see a person who thinks that Bitcoin will even drop to $50k let alone $35k .
No doubt that Bitcoin volatility is high but it rising rate is noting compared to it bears.

You are right but the reason why folks usually recommend DCAing is because is more reliable when it comes to purchasing bitcoin, the other strategies such as Buying the Dip and lump-summing are also good , but not as reliable as DCAing, like for instance buying the dip one have to wait and most time doing the waiting we may endup missing out, while in lump-summing is not everyone that have enough funds to execute a nice  lump-sum purchases.

Like for me using the three strategies if it's convenient for yer is nice , but using both buying the dip and DCAing is just the best , because you don't have to wait for the price to dip first while using DCAing method, so you can easily save some money as a reserve funds to buy the dip whenever there's any , without one waiting for the price to dip first .

It all depends on what you are comfortable that is why we are different and so have different preferences. Choosing to invest the total amount at once means that you have it as liquid cash at hand, in that case, I see nothing wrong with that because if you keep the money to be invested weekly, you might be tempted to use part of it for something else that is not Bitcoin, this being the major challenge of people especially in a festive period like this. To avoid such temptations, it is better to convert the funds to Bitcoin at ones and spend only the money budgeted for festivities without going beyond budget.

The DCA method of investing in Bitcoin is a great option for all but those who have predictive cashflow like salary will enjoy is so much because working out their discretionary income will be very easy and straightforward since they already know how much they will be getting at the end of the month or week as the case may be. Others with different kind of income sources can still use the DCA method but that will require some kind of calculations based on estimates which is still workable. Although, people that have such income source tend to go with lump some buying which is not also bad.

Surely i don't think if there is any place that was stated that buying bitcoin through DCA is the only recommended strategy in buying bitcoin or investing in bitcoin. although buying bitcoin through DCA is one of the most reliable way of buying bitcoin compared to other form of investment strategy, but doesnt mean others are not useful. or the two others are not recommended. i find the word "ONLY" to be problematic, in terms of your description.  we should not neglect buying the dip and of course lump sum, as all will make a good or better investment.

Apart from the fact that daily bitcoin buying is a waste of time, it's also good not to always send your small bitcoin purchase directly to your self custody wallet, to avoid small small UTXO to be too much in your wallet. This is why if you are buying $10 worth of bitcoin weekly, it's better that you leave it in the exchange and pile it up there till the amount gets to $500 before transferring it to your self custody wallet. This is to prevent you from spending almost all your profit in future on transaction fees, because nobody knows how high transaction fees will be in future. Also small output consume more fees.

This is very important for new investors to practice and invest in a healthy pattern.

Are you suggesting daily investing? I think you should change this statement. Investing in small amounts can be a good choice, hence daily investing? Have you forgotten about deposit fees? If you are planning to invest daily, then it may be possible to build another portfolio with your deposit fees. Weekly, fortnightly or monthly DCA may be a good choice for you, but buying more than 4-5 times a month will not be economical or profitable for you at all. .

It would be wrong for us to focus only on buying, rather we should also focus on fees and waste prevention. Suppose you are planning to invest $10 daily. Now if the fee is $1 per day, then you will have to pay an additional $30 per month in fees or even less $20 which is equal to your two-day investment. If you buy $25 4 times a month and your fee is $1, then you will have to pay an additional $4 per month in fees or a maximum of $5-$6 in fees. Which is not a very big amount.

So: The advice to invest daily is completely wrong. Along with investing, you can save on deposit fees. In this case, it is better not to buy more than 4 times a month. Weekly or monthly DCA can be a better plan. You should revise the advice to invest daily.

Actually, it's not just about $100, An investor for investing, "excluding income and all expenses" then use a certain percentage of any investment, (which they can afford to lose). Amount is not a fact, the most important thing is consistency and longevity.
If an investor invest bitcoin in DCA regularly without waiting for DIP, that investor will have the very opportunity to benefit the most from it. because the biggest advantage of DCA is that if you invest in DCA consistently, it provides average value in the long term (completely ignoring market volatility), which is a great advantage for investors, as well as being much more profitable. However, it must be long-term. but Because Bitcoin never guarantees an investor a guaranteed profit, but in DCA investment in the long term has a much higher "probability" chance of being profitable. And this is why it is recommended to use most of the time DCA method for Bitcoin investment.

You are right, something I really don't understand why people can't look back to history there was a time when Bitcoin was not valuable, in 2010, programmer Laszlo Hanyecz famously bought two pizzas for 10,000 Bitcoins, now worth billions, if it was now I don't think he would have done that because of how big the value of Bitcoin is now, those people that are feeling Bitcoin is too expensive now will surely see Bitcoin more than what it is today.
I don't see Bitcoin being too expensive as an excuse that will prevent someone from starting his or her accumulation the reason why I said so is because Bitcoin is divided into small units so that means you can buy Bitcoin of $10 or $5, it those not mean since Bitcoin is $94k now that if you have $5 you can't buy you can still buy a Bitcoin worth $5.
Sometimes this thing some people post here about Bitcoin being too expensive can confuse a newbie who wants to start accumulating, a month ago a friend of my asked me how do I get $94k I use in buying Bitcoin every week, he believed that since Bitcoin $94k now you can only buy if you have such amount of money but after my explanation he understood and now have the interest to start accumulating.

Investing $100 per week is about $10,000 but if by any chance he received extra money and invested it in Bitcoin his portfolio might probably be more than $10k. But I think it would be a bit hard for him (including me) to weigh if he's going to invest them at ones on during the dip or DCA. However, I would prefer to invest them all at once while using the DCA strategy, the only thing there is that I will increase the amount I want to DCA with only when I have extra free funds. Although it wouldn't be a bad idea if I invest it during the dip, I just prefer the DCA method. The reason why I won't choose the dip is because I might not have the opportunity to experience the dip for a long time.

If we talk about timing, it means we have to wait for the Bitcoin price to fall first before we can buy it. If you mean that, then your point contradicts my assumptions. Because I said long-term investors in bitcoin don't need to look at the price, let alone wait for the price to fall first to buy it. Because that's basically what I understand from the DCA strategy that I do on bitcoin. Because if you use the right timing (cheaper price) to buy bitcoin, you are the same as a day trader. And of course this will slightly prevent us from continuing to accumulate money into bitcoin.

Because of course, when we use timing to buy bitcoin, we definitely have to wait and keep waiting to buy it. For me personally, this is very uncomfortable to do. That's why I feel more calm when investing in bitcoin using the DCA strategy. I don't think about this or that much, because the most important thing is that I just keep accumulating consistently. Because if we think too much about the price of Bitcoin, like what if the price drops to 35K, of course our minds will continue to be burdened. So I prefer to just relax, because I'm sure, even though Bitcoin fell to 35K, it will definitely rise even higher. And besides that I did DCA, so I personally don't worry too much about it.

The main thing is that you should be consistent in depositing Bitcoin so that there is no gap in any month because of your determination and financial ability to hold and increase your holding. Considering the weekly income, the part of the discretionary income that you will continue to deposit Bitcoin is the amount that you have decided to continue depositing at the end of the month, regardless of the price. As an investment process, DCA is for investors of any level and recommends depositing Bitcoin daily or weekly or monthly, as per your ability. After receiving the weekly salary a investor should make up their mind to deposit Bitcoin at that time and not waste time so that the allocated money does not end up with additional expenses.

There are different recommendations for depositors expecting dips during investment, for which you should be prepared, such as additional backup funds. As @ginsan tried to say, those who are already satisfied with their holdings and if they do not have financial problems, they should keep holding for a longer period. And this can be after any period of weekly or monthly and with long-term journeys.

Some people get weekly salary and some people get monthly salary so if someone wants to invest consistently with job money then his investment will depend on his salary. If a person regularly invests four times that amount at the end of the month, the same thing will happen. Investors prefer the DCA investment method to simplify the investment process. Now if a person can invest daily and if someone can invest weekly and if someone can invest monthly then he should invest accordingly.  
In short, this method allows the investor to consistently invest for a long period of time.

This is not the case of not being able to afford 1 Bitcoin here based on what I read and understood from @sotelorene; it's a case of seeing Bitcoin as being overpriced and expensive based on the low local currency factor and other factors, which could also include comparing Bitcoin with shitcoin prices out there, which they believe is still on the low side. @sotelorene needs to understand that if you don't get Bitcoin today with the current price with the belief that it's too expensive, tomorrow might even be more expensive.
 
Happy New Year to all contributors of "Buy the DIP, and HODL!" and all Hodlers... it's another year to stack up the bag with more bitcoin.

Surely, it can be quite difficult for newbies to figure out some kind of a way to balance the level of their desires to be aggressive with their bitcoin investment and at the same time to make sure that they do not overdo it and end up in a pickle.. so frequently newbies get worked up about their emergency funds "not working for them," yet a more solid bitcoin investment approach (and strong cashflow management practices) would end up probably having 10-20 years or more of never ever having had touched their emergency funds...

Frequently if we are having to dip into our emergency funds, then that likely would be sign that we are doing something wrong... since it should really be rare that we would ever have to dip into our emergency funds.. .and surely it can take a lot of practice to ensure that our systems of back up funds are strong enough to endure UPs and DOWNs in the BTC price and other happenings in our life that are related to our income and/or our expenses.

The more uncertainties we have with our income and/or our expenses, the more emergency funds (and other forms of back up funds) we are going to need to deal with ongoing variance that we may well already know that we have, and surely there could be ways to buttress up our back up cashflows by increasing our income and/or cutting our expenses, yet there also is likely some balance that we need to attempt to reach and some kind of a learning that comes from several years of practice, and it could surely take us 1-2 whole bitcoin cycles in which we really are able to gain meaningful confidence that our various back-up fund systems have been put through the ringer and put through the test so that we start to gain more and more confidence in regards to even being able to increase our bitcoin investing (buying) aggressiveness based on increased confidence that we are better aware (through our own experiences) of knowing where the boundaries are at, and even I have been investing more than 30 years (more than 20 years prior to getting into bitcoin),

....and from time to time, I even find myself making mistakes, yet surely the longer that we invest and build good habits that are investing rather than trading or gambling, it likely becomes much more likely that any errors that we make are not going to end up taking us out of the game, like the errors of newbies will sometimes cause a lot of damage to their making progress if they cannot figure out ways to be as aggressive as they can, yet without over doing it, since in the beginning they likely are going to need to temper any of their BTC accumulation with making sure that they have sufficiently good systems of back up funds in place and that they are not putting their prior accomplishments in too much jeopardy based on their own desires to want to get rich as quickly as they can.. but then end up getting too greedy and not realizing that sometimes a more prudent and conservative approach will end up having better long term payouts both in terms of developing better habits but also to be able to see ongoing growth in the BTC stash, which ultimately is likely going to be the part that ends up paying off, even if some weeks the addition to the BTC stash might be relatively smaller compared with other weeks.
 

It sounds good that you are figuring out ways to improve yourself and to make sure that you are lessening the odds that you are going to make the same levels and kinds of mistakes in the future... sometimes we might fix some previous mistakes, but then  we end up making other mistakes, yet if we are continuing to progress, we  likely become better at even identifying areas that are risky that we might not have had identified without ongoing practicing.


It is great that you are actually concretely witnessing that you have improved upon your earlier less good practices, and surely one of the BIGGER tests seems to be getting through a whole bitcoin cycle, and surely based on your forum registration date, you are not quite one year registered on the forum, so it can take time to build up and also to make sure that you have actually improved upon your past mistakes.  It is so frequently that so many folks will feel like geniuses during a bull market (including that we have been in a bull market for two years), yet there can be a lot of challenges to get through a whole cycle without getting distracted into trading, gambling or the premature employment of selling tactics to try to increase your bitcoin stash size.. and so there are plenty of forum members who proclaim that they are investing into bitcoin, yet they cannot even make it through a whole cycle without selling BTC, even when they may well had not even accumulated any kind of meaningful BTC stash.. so yeah, individual circumstances vary, which seems to be part of the justification that we should not be proclaiming ourselves to be BTC "investment" geniuses prior to getting through a whole cycle and potentially having actual past practices in our history to see how we might have had dealt with the whole cycle or even a couple of cycles if we are not really in any position to front-load our BTC investment in any kind of meaningful and/or materially significant way.

We do not necessarily need to disclose specifics of our own personal finances or our OpSec kinds of matters in order to be able to analyze some of the meaningful practices (and progress) of 1- 2 whole bitcoin cycles.

When you say bitcoin is expensive, I believe you are trying to outline that not every investor can actually accumulate one bitcoin at a time because of the current price, but if that is the case, I want you to understand that you can accumulate bitcoin with the DCA strategy irrespective of the price, and if you are consistent in accumulating bitcoin with the DCA for a long period of time, you will still be able to accumulate a reasonable amount of bitcoin. Do not allow the current price of bitcoin to discourage you from accumulating it because bitcoin is not yet expensive. Even with the current price of bitcoin, you can still accumulate bitcoin if you have discretionary income that will allow you to freely accumulate it without finding it difficult to sort out your daily expenses.

This is actually very correct, at my first swipe at DCA, i thought I never needed these various backup funds as proclaimed in this thread and only concentrated on my accumulation and spent the rest discretionary income on other things(Both important and frivolities). It was easy to say that I was careless with funds and hardly saved a dime. I hit a rock that made me sell almost all my holdings back then, only then did my eye open to the fact that those backup funds were actually worth implementing. I tried implementing them again for almost three months without success as I fell back to my emergency funds for survival most times and even to my holdings at extreme situations, but overtime I began reaching some kind of maturity in my cashflow management and was able to carve out emergency funds and separate various variances of discretionary income into several bank accounts as against keeping all of them in a single account as I previously practiced.

It really took time to reach some kind of maturity of good cashflow management practice and I had to change lots of tactics on the way including splitting my discretionary income into various backup funds after removing the portion for my DCA and depositing them to the appropriate bank accounts even before I spent a dime from the whole income. It prevented wastage since I know what I have left after separating the funds with respect to the variances of backup funds and I made do with what I had left. I got better at managing my cashflow and for the first time, I had good savings and could even save for Christmas spending classifying it as a variance along the way. It was a joyful thing to me and I know I wouldn't have been this responsible if I had not learnt to manage my cashflow very well. It was a challenging learning process, but it is surely beneficial and I remain a student of it.

So I can comfortably say that having a good cashflow management ability is very instrumental to being a consistent and committed bitcoin investor.

Let's say that a person similar to you (Sim_card) had been investing into bitcoin for nearly 2 years as aggressively as he is able to do, whether that is $100 per week or some other amount, and eve from time to time, such person might come across extra money that he is able to invest into bitcoin, yet he might have to weigh whether he wants to invest all of the extra money right away or if he might want to split some of the extra money into buying on the dip and/or DCA.

Sometimes, these might not be easy choices to attempt to apply for all circumstances, so each guy is going to have to attempt to weigh trade-offs, including considering his own circumstances as best as he can to figure out a reasonable balance (and there are probably a few ways to reasonably balance the situation), and my point is that DCA and/or buying right away might not be the ONLY ways of looking at the matter, so there could be a place for including buying on the dip in such a situation.

The guy who had invested around $100 per week might have invested right around $10k into bitcoin over two years, and if he comes across a bonus or even extra money that is one year's worth of his anticipated yearly investment amounts (such as an extra $5k that he can dedicate into bitcoin), maybe a default starting point might be to divide it into 3 parts and invest 1) $1,666 right away, 2) $1,666 in a DCA kind of way that adds $166 to the regular DCA amounts over the next 10 weeks) and 3) to set up the last $1,666 for buying on dips (if they come), such as 5 BTC buy orders of $333 at every $5k that the BTC price drops from here.  Surely we know that if we are too aggressive in regards to setting up our buy on dip amounts (and increments), we may well end up getting stuck not having had invested that money, so someone with ONLY two years investing in bitcoin, might not really be in a great position to be holding back too much money for buying on dips that may or may not end up coming... so it surely can be difficult to balance. 

On the other hand, if the same person had been able to largely front load his BTC investment in 2023, and maybe he invested $10k into bitcoin during 2023 and then he went to investing $100 per week into bitcoin in 2024 (which would about another $5k invested into bitcoin for 2024), he might start to feel that he has more flexibility to hold back some of the $5k bonus value for buying on dips based on his already practiced level of aggressiveness (and frontloading) his investment in 2023... so even if he had not been in bitcoin for very long, his past BTC stacking practices could end up influencing how he might end up apportioning any of a bonus amount that he ends up receiving at the end of 2024 with ONLY two years investing into bitcoin.


It is not the same to be waiting for a friend at home when he did not call as compared with waiting for BTC prices to dip prior to buying, but sure, similar... parallels can be drawn with your example.


If a bitcoin newbie is persistently, consistently and ongoingly buying bitcoin with his income as it comes in (on a weekly basis or whatever), he is not necessarily going to have any extra money to buy the dip beyond his regular income or how he might have had chosen to spread out his BTC buys, whether weekly or otherwise.

So if guys are saying that they are doing both, then they may well be engaging in trade-offs that they are failing/refusing to acknowledge.


This seems to be correct for sure, except for some guys who might have had been in a position to front-load their BTC investment, yet an overwhelming majority of folks are likely going to be way better off to just keep buying at least for a whole cycle or even a couple of cycles if they really have no abilities to meaningfully frontload their BTC investment... which tends to be the case for an overwhelming majority of normies.


Huh?  You seem to be misremembering history or living in an alternative reality.

Prices went up in 2023 and in 2024.. and most people would have had been way better off to be in bitcoin rather than not during each or both years and probably even better off to accumulate as much bitcoin as they were able to accumulate during such years on a regular, consistent, persistent and perhaps even an aggressive way, to the extent that they were able to accumulate  BTC without spending on buying bitcoin beyond their discretionary income.

I am not sure if we should give you any kind of pass since you registered on the forum in late 2023, yet you still should be able to look at BTC historical price charts to see what happened in 2023 and 2024 instead of misdescribing BTC price history, which then makes it appear as if you are just making shit up.


The longer that we are in bitcoin, the more important it becomes to be able to have strong cashflow management practices, so there are plenty of times, even within the first 4-ish years of accumulating bitcoin that any newbie might be forced to sell some or all of his bitcoin based on his failure/refusal to manage his cashflows in such a way that he is not using his actual bitcoin as his emergency funds rather than having emergency funds in some form of cash that is not going to end up cause him to run out of places in which to draw prior to needing to tap into his bitcoins.

You are correct that newbies might be more prone to employ cashflow management practices that are insufficiently forward looking and/or sloppy and to end up contributing to their getting into a pickle in regards to not having enough funds to deal with various life circumstances that could come their way with potential variance in income and/or expenses and just that shit happens in life. and those persons who consider having various kinds of cushions in their cashflows (even if they feel that the cash "is not working for them") will end up being way better off by their creating and maintaining such buffers that allow them to make sure that they are not forced to sell some or all of their BTC at a time that is not completely of their own choosing.

Well, on the one hand, don't compare other people's strategies too much with the strategy we are currently implementing. The reason is quite simple because they are already satisfied with their BTC ownership where they have been investing routinely since 2015 so that in the current situation they only buy at dips because they are already satisfied with what they have focused on since 2015.

So the difference with us is that we are still in the accumulation stage so the part that we have to focus on is of course buying routinely every week. We can also buy at dips in other words DCA runs routinely every week.

I assume those who are already satisfied are old investors but sometimes they also continue to add BTC ownership when the price drops because they have consecrated all their investments for the long term and do not intend to sell them if they do not need the money.

So the last point, we can only take an important point, namely the holder is winner and that is the right word for Bitcoin holders, so we want to be like them, so routine accumulation is the first step to achieving victory at some point in the future.