Topic: Buy the DIP, and HODL! - page 284. (Read 108807 times)

There are several valid reasons why someone will withdrawal part of their investment (not all at one) from Bitcoin. I think before investing in Bitcoin, there should already be future plans in place and such plans should include when to withdraw some of your portfolio and the manner of withdrawal. This is because every wealth built, there should be a time to enjoy the wealth, at least small before passing it to the next generation. @JayJuanGee that have been with us in this thread with his valuable inputs and guidance have also understood the importance of withdrawing some of those assets, hence the reason for the creation of JJG Sustainable Bitcoin Withdrawal Strategy accessible through this website.

So selling part of your Bitcoin should not just be seen from the bad side, rather it should be seen as part of the process and the earlier one plans it all out the better. Personally I have adopted Bitcoin with the mindset that I will building during my active years so I will have something to fall back to when I'm retired. The good thing about the DCA method is that it enable me to enjoy my life as I should while still building and saving for the future without even knowing that I am saving.

No thats still not correct, my post is about potentially changing when a regular DCA buy executes. In DCA you set a buy at certain frequency and timing of your choosing. The timing could be automatic like 3am every Tuesday. Im wondering has anyone done an analysis as to the most advantageous times to set your regular DCA buy. Recently now that ETF's are in play there seems to be pattern emerging that post market close the BTC spot prices seems to be lower than the open. I dont even know why you would liken this to forex trading, has absolutley nothing to do with it. How is setting a time and frequency a deviation from DCA method, it just isn't its acutally the definition of DCA method to set a regular buy amount, time and frequency.

Please help me undestand how changing the time of on definitive dca buy is somehow linked to forex trading, I just dont understand.
 

It seems you misunderstood my points, no offense I was actually trying to explain your curiosity because you were a bit confused on when to use DCA, however from your question above you ask if it will be advisable setting your DCA after US market close, so perhaps you are actually getting the whole DCA narrative wrong because when you mentioned waiting for the US market to close before starting DCA, you are automatically deviating from DCA to forex trading because DCA has nothing to do with any US section but however it is only design for investors who are rich or poor to minimize there risk and also by having other back up planning incase there is any unforseen circumstances, so actually in as much as Bitcoin price is a determining factor but it doesn't affect DCA accumulation.

First... You should try to set yourself up in such a way that you are never tempted to tap into your investment.. yes emergencies happen all of the time, but they happen more often when you do not prepare yourself and they happen less often when you prepare.. and yeah, maybe you are in a kind of shitty situation in which you barely have enough to invest into anything, and maybe in those kinds of circumstances, you might not be ready to invest into bitcoin.

Surely, I try to suggest to everyone to get started investing in bitcoin right away, but people have to take responsibilities in terms of making sure that they are not over investing during periods in which their emergency fund is either underdeveloped or has been depleted, and these are judgement calls regarding how to deal with matters.. and whether still buying $10 of BTC is good for that week or maybe that $10 needs to be kept so that there is enough of a cushion in the finances... and yeah, if you have $500 in expenses every month, and you ONLY have $300 income, you are not in a very good position to be investing into anything, unless you happen to have some kind of reserve of more than 6 months that you could justify continuing to invest.. so if your reserve is more than $3k, then maybe you could invest some of that excess into bitcoin, and make sure you get your cashflow up to $500 per month or reduce your expenses so that you are taking from your discretionary/disposable income rather than dipping into your reserves.

Second..  there is nothing wrong with using some bitcoin in order to invest into other projects, but there still might need to be some weighings regarding if it might not be better to just keep the value into bitcoin and to grow bitcoin or to get money from somewhere else or to decide that you don't have enough money in order to invest into that other project.  It is not automatically going to  be a good money to draw from your bitcoin, even if there might be "supposed" "opportunities" coming available, because there are always going to be "opportunities" for people who have grown their wealth as compared with people who have not, but the mere presentation of an opportunity does not mean it is a good idea to draw from your bitcoin, even if bitcoin might be seeming to be at a price peek. 

Of course, the more that you get your bitcoin investment figured out, and the more BTC you accumulate, then there might be some justifications for you to take 10% or more from it, yet the more you take from your  bitcoin stash the more you have to consider the possible trade-offs that you are making when you do that and if you are still in BTC accumulation stage (or even fairly early BTC accumulation stages), then you might have to have a pretty decently strong plan to replace the BTC that you had taken within a reasonable or an expedited timeline.

Same with this one, did you read what i posted or did you just take it as an oppurtunity to rant about DCA method. Seriously the echo chamber in this thread has gone to the dogs

FFS did you actually read what I posted, i specifically asked a question about the TIMING of a dca buy, and should we consider changing the TIMING of the regular buy. Not sure why you went on a big rant about doing DCA, the pros and cons and all that.

I see nothing wrong with hybrid system because I feel it's a way of maximizing the buying process.  Those of us that started Building our Bitcoin asset just recently might find the hybrid system more appealing because of the need to get a sizeable portion before the price from the current regime. This does not mean stretching our finances but simply prioritising investment in BItcoin because of the realities on ground. So to effectively achieve this, the normal DCA can be running smoothly while one can do spot buying at dips depending on when there is surplus in cashflow.  I do this and it does not affect the DCA in any way.

The hybrid system does not mean buying the dips with the DCA funds, I think you are getting it wrong. The DCA will be running normally but additional funds will be used for buying the dips.

With what happened recently, or to be precise in the last two days, Bitcoin corrected to a price of $39k from a price of 48k at the beginning of this year. I concluded from what happened that I described in an initial purchase discussion for a beginner that they should not move aggressively if they were new to Bitcoin. If they bought at $48k with large funds or instantly of course the recent decline would have a bad impact on their mentality. So in this case I would suggest that beginners buy less aggressively in their initial purchase and over time they can increase their purchasing allocation to a greater extent compared to their first purchase.

Investing in the long term will not influence them to act stupidly when prices suddenly fall because they are not racing in a situation for the near future but for the next 10 years. But I still bought with the DCA strategy and accumulated regularly and was able to increase my fund allocation to a greater amount per purchase stage, so that was a better solution than buying more aggressively in the initial purchase.

The correction that is going on in Bitcoin price was as a result of the massive selling of Bitcoin after spot Bitcoin ETFs were approved by United States SEC, so the sellers outnumbered investors hence the demand and supply of Bitcoin was lower thereby causing a dip in the price of Bitcoin but however, the dip also stands as an added advantage for investors to buy the dip and hodl and by so doing the demand and supply of bitcoin would be high thereby it's gonna awoken the price to skyrocket again.


The only problem is that we have a lot of short term investors that are actually waiting for the price to skyrocket so that they can sell their coins but however, even if the price skyrockets and the sellers surpasses the investors then their might actually be a dip again so as a good investor, this is a time to acquire more Bitcoin in your portfolio and hodl till after the bull market. This correction however is necessary in other to sustain Bitcoin price movement because if Bitcoin continues to rise then so many Bitcoiners would rush to sell off their coins thereby the demand and supply of Bitcoin will minimize. As a bitcoiner, hodling for a long term should be the goal rather than expecting a rise and sell off. If Bitcoiners continue to sell their coins, am afraid the price might even go dipper unless we hold our coins and even accumulate more.

I won't suggest a hybrid strategy because it interferes with the DCA and if once we skip the investment period then it will become a habit and humans always get distracted I will say anyone who follows DCA is just preparing for a very long-term journey so they better keep investing the certain amount weekly or monthly no matter what the market condition is.

And if they are tempted too much by the DIP then they should buy from other source of capital not by skipping and accumulating their DCAing capital.

Crypto venture funds eye recovery in 2024, but capital remains tight
https://cointelegraph.com/news/venture-funds-eye-recovery-2024-capital-remains-tight

Most strong point is recovery  time, If you are talking about investment then I would say that there can be no better time than this, if the market starts going up then there is no possibility of going down, now a lucky time is passing for everyone, I think everyone should do as much as possible according to their ability. Buy Bitcoin and wait.

The portfolio is really important think but if you don't have Bitcoin then you can't build portfolio.

Have always thought of this idea and why will anyone want to withdraw their money from bitcoin investment cause it sounds strange and at the same time it's likely that the money used for their investment was met for something else, with this kind of strategy and mindset how will the investment stand for long. People usually make this mistake when investing. I believe they see bitcoin investment as gambling where you stake your money and it's either you win or lose cause why will anyone want to invest in bitcoin for short term when they fully know bitcoin investment is for long term.


I believe everyone can partake in bitcoin investment like low salary earners and the ones that cannot control their emotions can also invest, when dealing with emotions in bitcoin investment there's a way to control such and using the DCA strategy for low salary earners is the best whereby after receiving your salary you outlist a budget monthly for your investment. The only common reason why people sell each time they want to hold is lack of finance or rather they lack management when it comes to their investment. Such situation can be taken care of especially if the person is willing, this is where the proper planning can come in and the person should be adviced to invest with what they have and never to pass their limit but as time goes on whereby the person have gotten a good job that pays well then the person can always rewrite another budget.

For us not to fall into the temptation of trying to withdraw our investment, we have to have other source of earnings because it normal for a person to be in need, but you decide to invest in bitcoin you should have it in mind that it is unusual for you as a person to tamper the funds for a particular period of time and this will be for your own good, don't be premature decision take when it come to Bitcoin investment.

When you are out for bitcoin investment there things to avoid, like making fast decision in terms withdrawing funds, no doubt situation may call for such but they only way to overcome this inevitable situation is to make sure that your income can sustain and caution whatever may arise so that nothing will warrant you to think about withdrawing your asset to solve problems.
As the case may be, even though the money grows to a tempting stage, if you must withdraw for anything, let it be for another lucrative investment not for lavishing purposes.

Of course you are right but however the reason why most investors normally ran into trouble in times of there Bitcoin investment is that they always think in one direction instead of evaluating what could possibly happen if taking some certain decision while investmenting because for every investment or business to be successful there most be some proper planning such as having a back up strategy that if something should happen along the line it could be easily taking care without interrupting your investment.

However one of the things i understand from most investors is that they have this feeling that by using DCA strategy they are completely saved from any unforseen circumstances, actually it doesn't work that way and perhaps even if you are using DCA you could still ran into trouble if there is no proper planning because there is no way you will not ran into trouble if you invest all your money using DCA strategy without any emergency funds that will take care of other needs if arises.

yeah! Apart from wondering what one can do with our accumulation when our portfolio becomes too big, the security of our holdings could Also become a measure factor that could make us sell off our holdings. With the increase numbers oh hackers looking for ways to get access to our holding, accumulating much of bitcoin could be a bit tough because when you begin to reason the trauma you might go through if for any reason your holding is lost to scammers can just make you sell off part of your holding so you wouldn't loose all your accumulation.  

apart from cases of serious emergency, it's unreasonable to sell of your investment just for the purchase of things that can be pushed forward and later bought in the future. The only thing that is worth selling your investment for should associated to the health, safety and security of yourselves or your love ones and apart from this, a good investor would learn or make it an habit to control how he react to his wants.

The thing we have to understand is that wants must always come and it gets even worse when we know that we have the means of satisfying those desires. It will seems as though you are starving yourself of certain privileges but in the real sense, you should always remind yourself that you have a target to meet and that those spending can always come later after you've met your target.

For you to get the best of your holding, you need to be strict enough to deal with your holding as if it is not your own and that the owner wouldn't want you to sell it out for any reason if not, you will only be able to HODL for a small period of time before something will come up to make you sell of your holdings.

There is nothing greater than seeing bitcoin as a life time investment, and legacy of which wealth is passed down to our children, if you have this initiative, you will hardly want to sell all your bitcoin to buy some kind of achievement that you think is better than your bitcoin achievement, which I don't think that there will be any achievement which will be able to generate good profit compare to the profit that your bitcoin portfolio will generate for you over time.

I will say he didn't have proper plan and that is why he ended up using his DCA money and also exhausted his emergency funds. This is why as you are growing your bitcoin investment, you need to also be growing your emergency funds to a certain level that no matter what the circumstance maybe, your emergency funds will be able to take care of it. Another thing that I learnt is that, it is good to also have reserve funds available and prepare for the worst case scenario playing out, when you are on your accumulation stage, so that whatever way you find the suituation, you can overcome it without selling your bitcoin investment. In such situation, you can stop DCAing and wiat till when you have overcome the financial crisis that you are facing.

That's very VERY true no matter what path you're following, whether it's DCA, Buy the DIP, or a hybrid of both. For us plebs with limited capital, it's much better to be more efficient with our money and take advantage of the opportunities during discounts.

But many individuals always say, "But the DIP always goes lower". That's true, but you'll definitely get more units of Bitcoin by purchasing it at $39,000 than at $45,000.

Plus if you're the emotional sort of person, HODL your Bitcoin in cold-storage in an offline computer. That would a few extra steps for you to sell your Bitcoin in case you panic and it will stop you from selling.

 

This is because they don't understand how to go about their bitcoin investment journey, by not making proper preparation and plan on how much that they will invest into bitcoin that will not affect their monthly expenses, and they used the money for their basic needs to invest in bitcoin. I will not call that investing, but I will call it a waste of time and that person is also gambling. This is because bitcoin price is volatile, and if he uses 90% of his monthly income to buy bitcoin and the other 10% is exhausted, and he wants to sell part or all the bitcoin he just bought last week because of an emergency, and bitcoin price dips, just like we have being experiencing the dip recently. He will end up selling at loss, which means, that investor in question might finally give up in buying bitcoin because of the volatile nature of bitcoin.

The best way to invest on long term investment and hodli without thinking of selling is to find out that amount that when you use to buy bitcoin weekly, or monthly using DCA that wouldn't affect your monthly expenses. You will also need an emergency funds for up to 3-6 months, so that whatever emergency that occurs, you will take care of it, and not using your bitcoin investment as your emergency funds. It is good to have reserve funds, also help you take advantage of the market in any case scenario that plays out. Investing and growing your bitcoin portfolio is what should be your focus, and not scattering what you are building.

The DCA method may seem simple to follow but I reality, it require a lot of discipline. Just like every other thing that involves money, emotions will always be engaged in the DCA method so care must be taking to avoid yielding to pressures even while applying the DCA method.

Some of the temptations that can come up include but not limited to the pressure of trying to sell when the portfolio becomes too big. There is a way the money will grow and we begin to imagine what we could achieve with it, this is where the temptation of selling come from.

Furthermore, I have seen a case of someone using the funds for DCA in buying something else. His emergency fund got exhausted and he needed more money for his needs. This is one of those things that can come up even when you think you have got everything planned out.

The DCA method is primarily used by the low or average income earners who gets the interest of participating in Bitcoin accumulation, seeing the possibility of Bitcoin ahead of time and become willing to purchase Bitcoin. In as much it is a strategy, also Implies to those who are financially boyount seeing it as a much profiting strategy and technique to accumulate any amount of Bitcoin.

You can briefly expatiate on this statement?


These can be relatable by the common traders, they are not likely called investors because their aim is just to keep getting the earnings to solve their problems at that moment. A person who calls himself a Bitcoin investor is already equipped with the knowledge of holding and for the long run. Every investors should always keep aside emergency funds, investing not what will affect the cost of living later on then giving options of tampering investment portfolio just so can solve a problem or as a means of feeding the family, it is considered a misconduct by any investor.