Topic: Buy the DIP, and HODL! - page 283. (Read 123809 times)

 I like the explanation, and it is not a compulsory thing to do, if you don't understand how to go about it, so that you don't end up messing around with your bitcoin by selling it in a way that it will affect your bitcoin hodling compounding profit. I am still in my accumulation stage, and I will like to continue with using DCA strategy, and any other additional method of accumulation to enable me focus on my bitcoin target, because I think that I don't want to sell any yet using that method explained by JJG.

It is our choice to use whatever way that we think will work for us based on our own cash inflow.

I know that it is not advisable to keep your bitcoin in an exchange, but I don't see how an investor from Nigeria who has his bitcoin currently in an exchange, because he is buying with little amount for as low as $50-$100 a week so that it can be saved till it gets up to $500 and above before sending it to your private wallet, so that in future, when transaction fee is high it will not affect your output, will be affected by Naira being removed from Binance and no more p2p for Nigerians.

The reason why I said that it is not a problem is because, you are not selling but you are piling it up, and Binance did not restrict anyone from Nigeria from transferring their coins to other wallet. So the person that has his coins in Binance will simply transfer his coins to his self custody wallet, without a problem. You cannot make use of p2p in Binance does not mean that if you are having your bitcoin there, it is stuck. However, the investor from Nigeria can still use other exchanges like Kucoin, and OKX to buy bitcoin because the law on Binance did not affect them. I bought bitcoin recently from Kucoin, is just that their transaction fee for transfer is 10% of the amount that you want to transfer.

yeah you get the gist, having patient (holding) in your bitcoin investment and same time accumulating more quantity of bitcoin would help you alot. In securing an healthy investment, that would yield you good!! Profits.
Just imagine those that quickly sold their bitcoin when the price hit $50k , Now bitcoin as surpassed $66k they would be regretting their actions now , wishing and same time saying had I known I wouldn't have sold my bitcoin. So don't be such that are always fonds of missing great opportunities if you know have missing some life changing opportunity in investing in bitcoin, because you didn't understand how bitcoin work which cause you to not start investing on time. But now still good, because I don't think we are bullish enough well for me is hodl

$3k more as Bitcoin gets $66k just now. 

Many have been always attracted to Bitcoin but we don't know how many of them really are putting their money on their mouths. It's because the attraction and desire is there but if they don't do anything with that, they're just watching the market to go up as they watch us to enjoy this run that Bitcoin is having.

Only 5k more is needed, then Bitcoin is successful to break her previous ATH. Bitcoin price is currently above 65k, it has increased by 28.8% in seven days, which is amazing. Bitcoin is bringing good times to every holder. Since Bitcoin only needs 5k more to break ATH, I expect it to happen very soon, as the value of Bitcoin is increasing at a much faster rate now. And now seeing the success of this bitcoin, many people will be attracted to bitcoin, who were previously turned away from bitcoin.

Knowledge and capital works hand in hand for an investor. Recently we saw some little misunderstanding about the Nigerian government with the Binance centralized exchange where P2P trading and other functionalities for the Nigerian crypto enthusiast was halt. What am saying is essence is that imagine a situation where deposit and access to investment asset in the exchange was closed and no one can be able to access them from Nigerian a lot of investors will loss because they failed to have the knowledge that they are not supposed to keep their investment in a CEX rather in a private wallet.

What is the point of investing when you lack knowledge to manage your investment. Obviously, you will lose all your investment with time. The only thing is that some beginners feel you have to have 1- or 2-years knowledge and experience before you can begin investment. No, a week or two is enough to gain knowledge at most the basic knowledge an investment need to know. Like secuirty, strategy, management e.tc.

you know, if not  for constantly going through the thread that constantly reshapes my mentality and thought process on how much BTC is enough before ever thinking of selling, 0.04BTC which is around $2.5k looked like a big  deal for me cause my current weekly DCA accumulation amount is at $40 and I haven't done all that long for my ten year projection and the urge to sell part during this bullish period had once come in.

I guess the best thing to do is to remove any thought of selling our holding  out of our mind untill we reach our set out goal during which we can consider using the taking strategy which I feel if followed properly will keep us in good profit but the only issue is that after selling part of your holding holding when the market is bullish, chances are that Bitcoin price might not necessarily go bearish to a price you will be comfortable to buy within a short period of time which like you've pointed out will almost look as though you're gambling with your holding.

This is one of the sensitive part that many has tend to argue with but however I have considered @jjG's suggestion of having the basics knowledge and considering factors such as:

1) stable source of income

2) methods of buying ( lump sump or dca)

3) provisional emergency, reserved and float funds and as well as taking care of your basic needs.

It is best to get started with the fundamental knowledge and learn more on your way up because wanting to know much before entering the market might probably leads to procrastination of not having Bitcoin in your portfolio because Bitcoin is still a growing world class asset.

I agree with what you said. It's very important for investors  to have a good plan and stick to it. Wanting to make money fast and being scared of missing out on profits can make people make quick decisions that don't match their original plan.
To be successful in investing it's important to think longterm and be patient when the market goes up and down. It's normal to feel different emotions, like excitement when prices are high and worry when they're low. But it's crucial to believe in the research and plans you made before and not make quick decisions based on shortterm changes in the market.

If you have started investing in Bitcoin since 2022 and until now have used the DCA method, of course you have a very good understanding of how Bitcoin works. We can see that when there is an increase like a few days ago, you can still restrain yourself from taking action. which will indeed make you miss out on the bigger profits you can get in the coming year, but if you still choose to hold on until 2030 and keep adding to your investment, of course you will be able to easily achieve what you want from the investment profits you get.

You are referring to my post that relates to my raking tool that is based on rpietla's SSS plan.  And, rpietla has a thread on that too that is linked within that post.

The foundation of the raking tool is that there is a presumption that you have already accumulated more than enough BTC, so there is a certain presumption that whenever you sell any BTC, you are selling with an expectation that you might never be able to buy back, so in that regard you would not sell for small profits, even though you may well only sell a small portion of your BTC holdings.  For example, no more than 10% of your BTC stash for every time that it doubles in price.

The tool that I created does have a section in which you can calculate a probability that you would be able to buy back the BTC that you sold in up to three possible levels, so it is not exactly intended to be used for trading, even though you could sell some small parts of your BTC holdings and then just keep the money (proceeds available) in case the BTC price drops to a certain percentage amount and then you would buy back using some or all of your proceeds from what  you had sold earlier.  I tend to describe these kinds of tactics in terms of insurance for downside rather than trading or necessarily wanting to get more BTC buy buying back lower, but if the BTC price happens to go down to a great enough extent to trigger the buy back of some or all of the BTC, then that would be a kind of side benefit.. even though the overall presumption from my perspective is to sell such a small amount that you are not intending to buy back.. but if the BTC price goes down you would end up buying back.

You can set those buy back levels wherever you like and you can also attempt to use all proceeds to try to buy back lower or you can remove the proceeds so that you are not using proceeds from whatever you sell to buy back in the event that the BTC price goes lower.

There is also a link within that post in which you can go to fillippone's Google spreadsheet and you can input your own numbers in order to play around with the various possibilities to see how the numbers might vary.

Of course, in your example, if you bought $1k worth of bitcoin at $25k and you ended up getting 0.04 BTC, then you could sell half of that amount at $50k to get your $1k back, and potentially try to buy back cheaper.  I surely don't play around with my BTC in those kinds of BIG ways (you would be gambling rather than investing), but instead if you might start to withdraw some BTC starting at $50k and you ONLY have 0.04 BTC, then maybe I might consider potentially selling up to 10% of the BTC stash the first time that the BTC doubles, and then if I wanted to stay consistent, but I did not want to wait for the BTC to double each time, then instead I might sell up to 2.5% of the BTC stash every time that the BTC price went up an additional 25%.  So if we did not calculate buying back, and we strictly consider selling without buying back, then formula for the selling rakes that I described would look like this: 



You see that the total value of the BTC holdings in terms of dollars keeps going up and you are not raking off more than just a portion of the profits, so that you still are able to enjoy compounding effects, which you run the risk of not enjoying compounding effects if you sell off too much of your principle.  Of course you can play around with the numbers, and you may well prefer to shave off higher portions, but I think that you are nutso if you shave off half the profits merely because the BTC price doubled, then you have absolutely no compounding effect and you end up losing a lot of bitcoin's potential Upward price power. 

For sure, in the end, you can do what you want.

Now let's say that you want to use 100% of the proceeds to try to buy back lower, so you try to figure out your chances of buying back upon certain price drops, which surely is going to have lower probabilities the lower that you expect to be able to buy back, so you can plug those into your expectations and it might look something like this.





You set three buy back orders with a 10% drop, a 20% drop and a 30% drop, and you assign probabilities of 30%, 15% and 8% respectively.  With the buy back you end up with more BTC with the passage of time and you also end up having had raked more BTC into dollars (meaning a higher dollar value raked). 

So there can be advantages to buying back, as long as you attempt to set some realistic expectations and don't overly expect to be able to buy back, which would include not selling a lot on the way up so that you can profit on the upside. 

Now if your goal is to accumulate BTC and you feel that you have not accumulated enough BTC, yet, then you probably should not be employing any kind of tools to sell BTC with expectations of being able to buy back, since it seems that you need to first get to a certain high enough level of BTC so that you generally have the sense that you have accumulated enough BTC to be able to feel comfortable shaving some BTC off along the way as the BTC price likely goes up with the passage of time.  I hardly would consider 0.04  BTC to be even close to enough BTC to start such a selling on the way up technique since you are likely still accumulating BTC.. so you would be selling with one hand and buying with the other, yet at the same time, I am not opposed to those who might continue to buy BTC with a DCA method and then try to supplement with some kind of raking strategy, even though it seems a bit contradictory and you may well end up either confusing yourself and/or realizing that instead of buying and selling, maybe you should just focus on buying until you have enough (or more than enough) first before prematurely fucking around with selling.

That's right, I also agree with that, maybe there are or even many investors who plan too early about the long-term accumulation they want to do on bitcoin without thinking first from various angles about whether they will be able to be patient for that long or not, it's very clear that definitely there will always be or even many temptations that look very tempting, such as the condition of Bitcoin which has experienced quite a good increase which indirectly interferes with their confidence and patience to maintain accumulation for longer according to the initial planning, and usually in terms of worries it can also be very disturbing, especially when Bitcoin experienced a fairly significant bearish phase which ultimately made them feel worried. But actually, this is a normal thing because investment is always about profits and losses, where feelings of happiness will arise when your assets experience rapid growth in terms of profits and there will also always be worries that we will feel in several situations. Therefore, of course, maybe I would also agree with your idea above that it is better for us to focus more on consistently maintaining the plans we have made before rather than taking profits too early just because you are too "tempted" by what you see, which means Patience can sometimes be more profitable, but on the other hand we also need to be careful and vigilant in the journey.

Are you letting us know that so far it's about buying Bitcoin that it isn't necessary for the investor to gain proper knowledge about Bitcoin? I doubt if you said so, according to you if you know “which wallet to store your Bitcoin and which exchange to buy that's fine”......well, from your point you only thought of owing Bitcoin and without thinking about its security measures to safeguard your Bitcoin which is crucial.

For me, anyone who wants to own/buy Bitcoin should study Bitcoin better and do not be in a rush to invest because it's not a get-rich-quick scheme business or something that pumps and dumps that someone miss the pumps, it's better to first understand why and what you are investing your money in, Because Bitcoin is here to stay and besides we have DCA strategy which you can use to buy Bitcoin overtime and no need to be in a hurry, I believe in having the proper knowledge about Bitcoin first before investment so you take your investment responsibilities and have no one to blame.
 

You are right if the target is 10 years, of course it requires a lot of patience and there are many obstacles that we have to overcome. Perhaps one of the most crucial things is the existing profits which can trigger a wrong decision if we are influenced by the desire to take short-term profits. For this reason, I agree with you that we should never calculate how much profit there is and it is better for us to continue accumulating bitcoin throughout our investment journey.

Well of course many people don't want to repeat the mistakes of the past so it's not surprising that currently holders are holding onto their bitcoins for longer periods. The ATH target is quite close but that is no longer our benchmark as we want to see BTC price reach $500k. we have to see the big difference that is happening now because if I remember maybe in the past it was very rare for companies to have bitcoin as a reserve in their treasury but now we have seen many large companies continue to buy bitcoin in large amounts. For this reason, I predict that the price of Bitcoin will continue to increase and we must take advantage of every opportunity to continue buying.

When you earn Bitcoin and use it for your living expenses, that is different from investment which we are discussion here and also different from the long time hodl as well. Assuming such person have a fraction of the earned Bitcoin he is saving regularly, similar to what the DCA method, then it could fit into this discussion. So instead of opening another long chapter in this discussion which will serve as a deviation, we can just focus on how to buy and how to hodl.


His comment is just filled with unnecessary wordings that will end up getting him confused. If I say I know what he is actually driving at, it means I am being economical with the truth. It is good you gave that clarification so that people will not get confused further by his placement of DCA method with trading investing.

That hasn't happened yet because 2030 is still a long time away. He has only lasted 2 years until now while holding on until 2030 is not easy especially if you can't manage your cash flow well.

If you have an investment plan in the next 10 years then now never look at the profits that are in your mind because it's still too far away, it's better how the accumulation can last for a long time because of course the obstacles will be even harder if you can't handle it well, so I think now maintain good cash flow then everything will be smooth in the accumulation.

Almost most investors have now been able to survive until the ATH now, because they see the benefits are close, but if there is someone from the ordinary people who can withstand the current cycle then he is great for excluding profits in the bullish now.

well I went through the post but I think I would go through with it again for more solid understanding, this part quoted you actually said something that caught my interest, concerning the selling of some profit in your bitcoin and replacing it. We all know that whenever bitcoin dip your coin don't reduce in quantity but the value does. But when you selling from it you are actually reducing the quantity of your bitcoin right.  And we know buying low price would give more advantage's buying in high price , like when Bitcoin was $25k those if you purchase $1k worth of bitcoin at that time you would endup with 0.04 BTC , but if you purchase that same amount which is $1k worth of bitcon when the price was $50k you would endup with 0.02 worth of Bitcoin, which is lesser than when you purchase at $25k.

So In a scenario where I purchased $1k dollar worth of bitcoin at the price of $25k, having 0.04 bitcoin and lateron the price rose to $50k and I sold out 0.02 from my bitcoin that am holding, having the mindset of replacing it back, and lateron price experience a surge to the price range of $69k and kept increasing. If I want to replace it then what step should I take should I wait or the  or should I increase the money want to I wanna use to purchase to coverup 0.02 bitcoin at that price range of $69k and above.

Please hope this wasn't confusing, and if I had made any mistake please do so in correcting me .

In as much as you are right that every investment requires the right knowledge before venturing into it. Bitcoin doesn't require much from you in terms of knowledge. The more you are wasting time to know have more knowledge about bitcoin before investing the more you are wasting your time and if you don't have a portfolio in bitcoin you are not a holder. Provided you know which wallet to store your bitcoin and how to buy from cex or dex I think you are fine. After all you are buying for the long term, and you can know other things you wish to know along your holding period. Bitcoin doesn't require any professional knowledge before you can buy and hold.

DCA strategy is is a method of buying bitcoin at a certain intervals on a regular basis and not for trading investing. Don't confuse yourself with this thing. I don't know what you are referring to as fixed asset, but for the purpose of this thread DCA is a method of buying bitcoin. We are not discussing other investment assets here.

Since you are talking about taking profits, you are likely not really engaging in long term investing, unless we are just quibbling over semantics.

So in your case, you are less than 2 years registered on the forum, so we might presume that you have around less than 2 years investing into bitcoin.  It could be possible that you are at a state that you have accumulated enough or more than enough bitcoin to take risks to take profits at various price points that may well end up not being tops... so if we are still in the stage of our bitcoin investment journey, we have to be careful regarding selling too much too soon with expectations to buy back cheaper.. and unless you have over accumulated, it would be difficult to describe that as long-term investing rather than either trading and/or gambling. 

In the end, it is up to you to assess the extent to which you might have had overaccumulated BTC in such a way that you are justified to sell some, especially if you might still be trying to get more, which would seem to be harder to reach the conclusion that you have overaccumulated if you feel that you still do not have enough coin.


You don't have to be in bitcoin for more than 10 years to be able to reach a conclusion that you are able to shave off some profits without any expectation of buying back.

If you have reached a conclusion that you have enough BTC, then you could shave off some BTC at various points in time as the BTC price is going up and you can figure that you would have fewer and fewer BTC if the BTC price were to keep going up.. but part of the BIG question would be determining that you largely have enough (or more than enough) BTC in order to start to employ such a raking strategy, which I outline in this post.

holding such time would definitely be epic though. Just imagine the growth bitcoin may have undergo during such time. Bitcoin price would be more than $100k because the potential bitcoin has is more than that. By such time we would be expecting something nice from our holding. You selling your bitcoin now when you haven't hit your accumulation goal. That is a sign of no principle in  your investment , though I know we are in good profit due to the recent risen in price bitcoin undergo but this profit would be lesser than the one you would yield in a long run.
 
Like those that start their hodling from the year 2013 till now when bitcoin price was still low,  during that time they may have stash alot of good quantity of bitcoin, so those set of people can decide to take some profit from their investment without selling all their investment, because they know clearly that they won't have that same privileged to accumulate bitcoin in such low price again. And aslong bitcoin keep growing (which it would) their Bitcoin value in their portfolio would keep increasing massively.