Topic: Buy the DIP, and HODL! - page 287. (Read 136771 times)

Yes investing in DCA method must continue for long term, if you don't invest in DCA method for long term you will not be successful. Currently the price of bitcoin is going up and down so it is better to invest in DCA method at this time, because you can buy bitcoins at average price if you invest in DCA method. If you can continue with DCA method for 8-10 years in long term then you can definitely be a successful investor. If you invest small amount in DCA method then at some point your investment amount will increase a lot. So keep investing with DCA method.

I also buy the same sentiment as you bro, most newbies don't know that as long as the crypto industry is concerned, their is nothing to diversify, their is no substitute to Bitcoin, because all this alt and shit coin that are popping out every day are just things most of this people are creating to milk investors of their hard earned money.

All my time in the crypto industry, I have come to understand that aside Bitcoin, you will eventually get burn at some point, and one thing they normally use in enticing newbies is their crazy returns, but someone that have gotten a good knowledge of Bitcoin will never think of investing in anything other than Bitcoin,  because it's the real deal.

Sometimes I do wonder how some persons just come up with archaic expression, "HODL for life" some people doesn't know the essence of Bitcoin investment or the reasons for accumulating Bitcoins. Every investment have the possibility of profits or losses then in an investment where you have recorded a reasonable amount of profits, is it not for you to make withdrawal?. This are some of the expressions that chases people away from investing in Bitcoin because on a normal sense, if you hodl for life then of what value is the Bitcoins you have stored? It really sounds ridiculous though.

Diversification is good for an investor but a Bitcoin investor needs not to invest in shit coins even at the lowest quantity because these are basically coins that may not be sustainable in the future so of what need to invest on them? Instead making investments on some real life assets will be more preferable to investing on shit coins, f*ck shit coins!

The only people that gets worried using the DCA are the short term investors because they always have this buying at a dip and the price skyrockets, they sell off. Using the DCA is for long term hodlers because that is when the desired profit would be met even if you don't have money to lump sum at an extreme dip but it helps you accumulate to a certain level within the long run. Obviously, a lot of investors await the dip before they accumulate because they want excessive profits but Bitcoin investment doesn't work that way as every price is a buying time so far as it is within the long interval. If an investor continues waiting for a dip they may end up not accumulating at all.


Technically Bitcoin investment requires some good insight of the strategy you can apply at every stage of your investment reason being that Bitcoin accumulation is a process, depending on it's activity in the market. It's so unfortunate that some people more especially the ones with low income earnings mostly depends on the DCA alone even when there is a drastic dip because they don't have enough money to do the lump sum in that particular period of time. Every investor, even if your in-flow is very little, should be able to maximize your source of income so that in a case of immense dip your can basically lump sum a heavy dump so that even if you don't continue DCA you have already accumulated a whole lot of stash through lump summing.

DCA method means regular investment method. All investors can be successful by investing in this way. Because it is a successful method of investing for a long time, I definitely invested in it and I have continued this investment for the last two months. However, this Bitcoin DCA method will remain active for two more halvings.

The point is, do you the assumption that investing in Bitcoin is only appropriate in bearish times?

In my opinion DCA does not look at the market angle between Bearish or Bullish where if someone buys with DCA they will continue to buy every week without any pressure for them.

That's what I like with the DCA technique, we don't need to worry about price changes because we always buy it every week.
It is certainly very appropriate for beginners to use DCA rather than using other techniques in the investments they make.

Where most newbies mostly have issues, is thinking that bear market is the only best time to accumulate Bitcoin. To accumulate Bitcoin during bear market is also pretty nice . But we should know that there's no best time to accumulate bitcoin, because every time is the best time to accumulate Bitcoin. That's is always advisable for newbie to focus more in using DCA to accumulate Bitcoin, and not to wait for the dip before purchasing. IMO the only set of people that can only have such mindset of purchasing only during the dip are those that are gotten their accumulation goal . Because they have already gotten themselves some good quantities of Bitcoin already, so maybe if they encounter any dips in market they can purchase that dip with lump-summing style . While keep holding....

Exactly. Delaying their bitcoin journey, not knowing that if they miss this bull run, the next time they will find it will be 4 years after the next halving.

So many people are not aware of this, that the crypto market is divided into the bull run and the bearish market. The best time to invest in bitcoin is during the bearish market, and of bull run, have a selected price tag to sell some part of your bitcoin and hodl the rest because no one knows what the price of bitcoin will be in the future

Of course,  if you are going to attempt to describe some kind of an unsteady or irregular income, you would attempt to describe what it is, and there might be some certain aspects and there may well be some uncertain aspects, so it usually is not going to be exactly known, especially if it is an income that happens so infrequently.

But yeah, if he knows for sure it is going to be right around $3k every 3 months, then that does allow him to figure out how much he has left after expenses, yet even expenses, may well have some aspects that are certain and other aspects that vary.  Some aspects of the expenses are discretionary and some aspects are somewhat fixed.  Housing costs, utilities and transportation might be somewhat fixed (within a small range of variability)  Food expenses might have some upper and lower boundaries, and surely there might be choices to spend a bit more on good quality food, and to cut back on eating in restaurants.. yet there still could be some variability that helps to dictate how much funds need to be held in reserves or as a float.. and surely the emergency fund would ONLY end up being their in an actual emergency rather than being used as a float or as reserves.

When the income is so irregular, there may also be some preference to hold back on any investing that it made, so maybe the person knows his expenses are somewhere between $500 and $700 per month, so that is going to leave him with between $300 and $500 of discretionary income per month, but he is afraid to spend his discretionary income until towards the end of the investment period or maybe even after he gets his next payment.. so he kind of holds all or most of his discretionary income in reserves until his next paycheck comes in.. .. Another thing that he could do is to spend $30 per week no matter what on bitcoin, so then that would largely mean that he is already making a choice, and he would have to subtract $120-ish each month from the remaining part of his discretionary income, and he would decide what to do with any of the extra when either it comes close to his receiving his next check or maybe not until the next check is actually in his hands.. since we cannot really know that we are going to have the money until we actually have it. .so we might have to keep some extra spare money, especially if our payments are so infrequent. .and even worse if they are irregular too... .since sometimes the date of payment and the amount might be uncertain.. but maybe worse case scenarios it is ONLY $1,200 every 3 months and best case scenarios it is $4,800, but most of the time, it is right around $3k every 3 months, and plans should be made around any of those kinds of particular irregularities, including that sometimes guys are able to add extra sources of income in order to help to lessen some of the pressures of the extent of the irregularities that they are experiencing.


I just recommended the opposite of front-loading.. since the pay is irregular.. Front-loading is good when you have extra cash that you know you don't need and you either have a sense that you don't have enough BTC or that the price might go up without a correction (does not mean that you are going to be correct, but you want to prepare for up and you feel that you don't have enough BTC).


That is some variation of what I said.. and that is not front loading... although I did recommend a way that a small amount could still be put into BTC but that there would be some holding back based on the irregularity of the income.


You would not have to ONLY pay 4 times every year, but I don't really disagree with you about the possibility that it might be more practical to wait until your next check comes in before you spend all of your earlier check. so then you are ONLY investing into BTC what you have left at the end of the period rather than at the beginning when you might end up needing that money.


You cannot assume that people in this situation are going to be able to accumulate more.  The main thing to assume is that the person is trying to not put themselves into an emergency situation, and they are ONLY investing into bitcoin from discretionary income rather than investing with money that they end up needing for their monthly expenses.


You can still DCA with those kinds of irregular income situations, you just have to figure out ways to budget for it.. .. so which way you end up going is up to you.  I personally like the idea of weekly DCA, especially for someone in his/her first bitcoin cycle. and surely there could be circumstances in which weekly DCA does not make as much sense, even though I do still like the idea of trying to work out budgets so that you are able to weekly DCA, especially if you are fairly new in your DCA accumulation journey.


These are the correct ideas.. You are just using the term front-loading in a weird way, but it is possible that at the end of every 3 month period, the guy sees how much income that he has left  at the time that he gets his next pay check, so if he uses up  whatever is left at that time, then maybe that could be kind of considered as front-loading, even though it is not exactly the right way to use the term.. since it has more to do with already having extra money and then buying extra BTC because of a perception of not having enough BTC and a perception that the BTC price might not dip so there is a desire to use that extra money to prepare for up.


"Hold for dear life" is a stupid expression, and it was made up by some mainstream pundits who are trying to suggest that it is risky to hold bitcoin.

Even though they are correct that it is important to hold bitcoin, I think that going along with that meaning "hold for dear life" is short-sighted and tries to spread negative messages about bitcoin.. even though the term is used with shitcoins too.. even though no one should be HODLing shitcoins, even though surely some shitcoins are going to perform better than holding dollars, but I still would not recommend them beyond 10% of the value of your BTC holdings.. and even 10% might be too much..


Exactly..

As a newbie.. stick with DCA one or two or maybe even more cycles.  After you get up to a certain quantity of BTC, you might be in a position to attempt to tailor your DCA to timing dips, but even then it can be problematic to screw around too much with timing.. until you are sure that you are getting to a point of accumulating enough or more than enough BTC.. .which you have to determine when you get to such point of having had overaccumulated BTC.

Once again, we have the opportunity to buy the dip for accumulation purposes today. Have you done that when bitcoin dropped to $68k today?

I'm still waiting to buy on a deeper dip, I mean it's reasonable to expect the price to drop to $65k leading up to the bitcoin halving day. The selling pressure from panicked traders gave me a good opportunity to hopefully buy low again before the price headed for the moon, but well, I didn't want to let the day pass without any purchases.

One can use any amount he or she can afford to start accumulating Bitcoin with the use of DCA strategy. As long you are being persistent with it , beside ones earning can't be stagnant. So as your sources increases same goes with your cashflow, so as your Bitcoin accumulation should also what increase. For instance, Mr. A earnings was around $50 and Mr. A is an investor who's interested in , investing in Bitcoin Mr. A may decide to allocate 30% of his earning into his Bitcoin accumulation using DCAing, which means he will be purchasing $15 worth of Bitcoin every weeks . So if by any chances Mr. A earnings undergo an increment to $100 . He may choose to increase his allocation percentage to 50% while he use the other percentage for his emergency funds. His DCAing rate would increase, because he would then be purchasing $50 worth Bitcoin weekly . And it may also decide to use other strategy to accumulate more quantities of bitcoin depends on his situation at then .


that's a nice points,  Briankimp1 if you continue with such mindset you won't be able to go far with your Bitcoin accumulation, in other words you won't able to hit your Bitcoin accumulation. Because you have developed the mindset of waiting for the dip before accumulating bitcoin, which is not how things works when it comes to holding Bitcoin for long-term. Because as a long-term investor , we  should focus on how to stash more bitcoin in our portfolio. And waiting for the dip always won't help with that . Though you may set aside a reserve funds to purchase the dip whenever there's any or if any occurs. So focus on your DCAing and be persistent with it and with time you will see howfar your portfolio has grown.

Mate, what you explained is not the DCA strategy, but buying the bitcoin dip. The DCA strategy is when you invest in a fixed amount of money like $30 at a regular interval regardless of the market condition. As a newbie just stick with the DCA strategy so that you will not mess up your bitcoin accumulation plan. The DCA strategy will help to control the volatility part of bitcoin in your bitcoin portfolio and also control your emotions.

I don't think it's necessary for him to mention any amount as little income, reason being that what's little to you might be big for others and vice versa. It's is now left for the investor to determine which amount is to be considered little or that's appropriate for them to invest. Believe me if he mention any amount here as a base for little amount, there are people here who will quote him and say they disagree that such amount is too big to be considered as little. From the amount of money you listed above, there are people who are earning less than that, yet they are still making their DCA regularly. We shouldn't use the condition of things around and judge as the basic, there are people who live in countries where there minimum wage is less than the $50 you listed above. So when he said little amount, your condition of living will now determine what will be little to you.

You can combine the DCA method with buying the dips, people do it and it is a wonderful method but not always easy for a beginner because of how difficult it is to determine what an actual dip is and what it is not. For a beginner like you, I will suggest you focus on using the DCA method that is straightforward and easy to use. The DCA method will save you the stress of worrying where the dip is and also the screen time of watching for the dips. Furthermore, the DCA method will make it possible for you to invest in little amount relative to your financial capacity so that it will not be a big burden on your finances. This way, you are living your life normally which investing part of your money in Bitcoin for the future.

The DCA method can be applied in all market conditions and not only suitable for bear market. It is a continuous process that is not expected to be use only during bear market else it will become buying the dip. In other words, the bear market is already the dip and any buying activities that is specifically reserved for those times is just the same as buying the dip.

Yes, both strategies can be combined to get the most perfect investment, but not with your level of understanding and explanation, it literally becomes not a good practice from what you just responded. The DCA pattern is a strategy on its own not dependent on any other strategy but only be positively compromised by purchasing massively during Dips.

The best way to go about combining both is by focusing mainly on  DCAing as a strategy, since the DIPs are bound to happen during the cycle we can now apply catching the very DIP by investing massively in same DCA kind of approach and same intervals. It's not really necessary nor advisable to hold funds in regards to waiting the bear market, during the holding process unforseen circumstances may happen which means altering the investment plan.

This is the worst of all strategy to use DCA only during bear market, and after the dip is over, you stop and wait for another circle to see another bear market. Poor investment idea on bitcoin compounding profit power, and poor bitcoin accumulation strategy. As a newbie like you who just want to start his/her bitcoin journey, all you need to do is to figure out the amount of money that you can set aside to buy bitcoin that will not affect your monthly needs. Maybe 10% shoukd be cool, so that you can also have your emergency funds ready, so that whatever emergency that arises would not be a problem to you on your continuous bitcoin accumulation.

After that, the next is to use Dollar Cost Average DCA, to enable you use that 10% of your income to buy bitcoin regularly either monthly or weekly, so that your bitcoin portfolio will keep on growing gradually as you keep on buying. You should understand that people that have no bitcoin or little bitcoin in their portfolio don't need to wait for a week without buying since they focus is to build your bitcoin investment to reach your bitcoin target. You should also know that the lowest price that you will buy bitcoin this bear market will not be the same price in the next bear market, because bitcoin price keeps increasing overtime.

This is why DCA is the best approach so that during the whole of one circle, you are busy accumulating regularly with DCA, and before you know it, you would have acquired a good fraction of bitcoin than when you are waiting to buy only during the bear market. That is why it is dangerous to wait because, time waits for no man, and your futire is drawing nearer. As long as you are on consistent DCA, you will buy bit2both during the bear market, when the market is sideways and in the bull market.

While going through you all comments on this thread, I had a thought may be one of a genius not to hype myself about it but what do you all think about Incorporating both the Dip and hold with the DCA strategies.

To further elaborate further, what if you only apply the DCA strategy when it’s a bear market that way you’re constantly buying BITCOIN at a low rate you can simply set a stop price in your head of when to stop buying more BITCOIN and simply hold till it’s next bear market, This would aid you in accumulating a lot more through this what do you guys think is it all craziness

Yes, people don't need to be rich before they can start investing in bitcoin, but they need a good income source that can cover their expenses so they can accumulate bitcoin without finding it hard to solve their unforeseen financial problems. This will allow them to hold their bitcoin for the expected year they want to sell it. 

At this point, no need of beating about the bush with grammar, we have to face reality. A lot of us in this thread are not whales, we buy with little amounts so the DCA method still remain the best method. The DCA method allow us the discipline to buy in a well defined fashion and that is good for retail investors like us. I am thinking that if we focus on working with the the DCA method, many of us will make outstanding progress in our Bitcoin investing rather than confusing ourselves with other complex methods. If someone start investing in Bitcoin today using the DCA method, in few years to come his collection would have surpass his expectations if he is able to work it in a way that he will not be pressured to sell. This is one thing that make the DCA method to stand out among other methods. What more does a newbie investor need than this organized and systematic method?

Actually there are people in this category but they are in minority with respect to this discussion because majority of the participants seems to love the DCA method more as it is easier to implement and look more like a process with added advantage of not having a serious burden on our finances.

This set should not be thinking about investment but how to fix their finances first. Investment is safe when basic needs have been met and not the other way round. If basic needs are not met, then the invest is at the risk of being liquidated anytime and that is not right.

Firstly, we can not generalize that the dca strategy is the first step or the best but yes it a good strategy that has numerous benefits to buy and hodl Bitcoin, every investor must make that inform decision on the choice of strategy or strategies that will suits him or her in terms of psychology/ financial situation plus investment goals and objectives, reason being that there are investors that doesn't care much about market volatility with a higher risk tolerance level such that they may  even make there first buy a lump sum buy on receiving a huge amount of money and buy right away, undoubtedly there are those that has acquire the basic and fundamental knowledge in Bitcoin and has built lots of confidence and conviction in what Bitcoin has to offer but are very limited in terms of finance may be even struggling to meet up with there basic expenses let alone making any form of investment, but while on receiving a huge amount can decide to make his first buy a lump sum after making arrangements for his basic needs and provisional emergency, reserved and float funds, with a side business that will assist in other of his or her daily expenses while he or she make other plans for the up and down that may or may not happen which includes, a weekly or monthly dca, or buying the dip, in other to balance up the overall investment portfolio in terms of investment goals and objectives (quantity of Bitcoin and time horizon). Example a man can win a lottery, selling of inheritance or an assets or probably get a well paid permanent job and probably mortgage a laon that he or she will be paying by instalments at the end of the months.


@samlucky o (HODL)  hodl for dear life is not a method or strategy of Buying or accumulating Bitcoin unlike the dca and buying the dip rather is an acronym
That is meant to encourage investors not to sell their investment but to hodl when there is a price downward trends or upward trends until the certain investment goals and objectives are achieved