Topic: Buy the DIP, and HODL! - page 288. (Read 136783 times)

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

front loading would be a preferable option to choose from in a situation like this. If you get four time payment per year and you're not certain of the particular time of the year each of the payment will come, it's best not to stress yourself trying to keep a particular part of the money for regular DCA till the next pay comes. You can decide on the percentage of your pay that will go into buying Bitcoin once you receive the money and you just ensure you're strict with it to the latter. It's actually same as doing DCA only that this time you're not buying a small amount but investing huge so you just relax till your next pay comes in and you invest again.

One of the advantage you get from following such is that you wouldn't put yourself in a situation where there is delayed payment and you're not able to meet up with your DCA plan and doesn't require you to be too concerned about being discipled with at every week or months. You just buy only four times every year and those four times counts big. You might not be too lucky to buy at the best DIP price at all the four occasions but you will definitely accumulate a good quantity of Bitcoin using such methord. The usual DCA methord mosty works well in cases when you are receiving a weekly or monthly salary and then you can decide to buy on a weekly or monthly bases. Their are people that have probably front loarded a good amount of Bitcoin that they don't necessarily have to buy every week or month and it's not as if they are doinh the wrong thing but what's the case is that you've got to use the methord that helps you most and that doesn't put you in a situation where where you're faced with a mix of emotion that's going to deter you from buying more than you would normally do with the right plan in place.

Maybe yes since if you have funds to spend then you can decide to accumulate, but its more better if you have steady income since you can pursue all your plans and you would not worry about anything negative that might happen to the market since you are already financially secured and can afford to forget your balance then came back to it later when market recovers or it already hit the target year we set for our investment.

3 to 6 months accumulation intervals can make your investment profit generation so slow but if that set up can afford by person then its fine sine he still have some result to wait for future since he have bitcoins hodl for long time. But also if we have steady income then we can separate some funds for emergency funds and for sure once we make our funds budget properly according to our needs for sure we have higher success rate towards all our plans especially for our long term investment with bitcoin.

Your right, DCA must not be for those with steady income, although it would have been netter if you used some illustration like Jay does, let me try if I cam get this right.

Let's assume a guy might have received a government fund that comes 4 times a year on equal or irregular intervals and this amount is 3k, so he decides to invest 1k into bitcoin and yeah he should just go and buy Bitcoin right away with all the funds but instead of that he decides to divide that money into 12 parts which should be 83$ each approximately so that it would meet up till the next time that money comes, and one good advantage of this, is it that you don't have to worry about volatility or price changes, so for many reasons we mostly recommend it for beginners and I guess you should try it too. Hope your right now@ berry2d

It doesn't necessarily need to be a steady income, I could be a money that comes once in 3 months, 6 months or such intervals and you decide to divide that amount into parts and invest them on intervals instead of buying with all the amount at once, so yeah the idea of having a steady income leads to the fact that for DCA and accumulating bitcoin to give you the best results you have to be kind of steady and consistent in doing so, so some folks that haven't got a steady income can at times pause or stop due to their money getting exhausted and at times even us up their reserves if they have quite the appetite for buying bitcoin, and your emergency funds also has nothing in to do with steady income, its just like that savings we never touch and we build just to insure that we never sell our holdings based on misfortunes or emergencies and this should be up to 3 months of your expenses to be potent enough.

How DCA method attracts investors to hire B, because if you start investing you must prepare yourself to invest it for long term.  
For that I have mentioned from current price 70k dollar, 71k dollar, 72k dollar 75k dollar 80k dollar 90k dollar in this phase if you start investing bitcoin price from 70k then if bitcoin price increases up to 90k then you will get full investment dividend. and will control the average price.

And if you invest in bitcoin in deep market then of course 70k dollar, 69k dollar, 68k dollar 65k dollar, 60k dollar 50k dollar is like this market term but you will invest.  
Because here your average will control the price and you will realize the maximum of your investment when Bitcoin starts pumping again. This is how the average price is controlled, so keeping yourself calm is the best way to invest domestically.

The DCA is Not the first step to buy, it's the best strategy to buy for most people because it will save you from stress unlike the DIP and HODL.

Secondly I think you are a little bit confuse about the emergency and reserved fund how it works, the emergency fund works as a fund to settle any emergency in the future like a life saving issues or a critical situation and can not be used as a meceleneous expenses, the reserve fund seam a little bit confused to you. Reserved fund works as a seperate fund, like an amount that helps you settled any other expenses aside Bitcoin and emergency fund. because saying emergency and reserved fund can be use for miscellaneous and emergency is like you dont put them in a specific other for someone to understand properly how each of them works.

You are right though but you should know that this thread has been long now and many people have learnt alot from it. Sometimes repetition is a kind of quick reminder for somany people who might be misled along the line. This thread is not the only thread that a particular thing has been discussed often times. Here is like a school where people come to learn and go while the teachers and school remains or moreover a soldier barracks where soldiers come and go but barracks remain thesame. So you shouldn't feel bayased about it. Accumulating process are of different types so you can chose the best strategy for you. Most people might come here and pretend they know about the thread but don't know. Until they have the reason to know. When you pay attention you learn but if you claim you have already know all, you have mised out. Because of this singular reason, most newbies are becoming Smarter about Investment strategies and buckling up there shoes to start while some old members here might be postponing. So if you ask me the reason for repetition is for those who don't know to learn not only the newbies and some old members who may not be familiar with this thread. You know they said " whenever a man wakes up is jis morning" some old members came to this thread od recent where as they have been in this forum for long yet they know nothing about here. The thread can only be stopped maybe if the op decides to lock it. And am even afraid that if the op locks it now a new version will be open. Lolz

the reason for much repetition is as the results of newbies coming in the forum and the thread on regular basis and those old users that are not much informed about the knowledge that is shared here, yes a lot has been discussed in this thread  and so many pages has been flipped but  the honest truth is that even after going through the previous pages to gain knowledge and  concepts, many will understand why other may  not and probably misinterprete what they have read at the point of making contributions of course corrections will be made in order not go home with the wrong information which i see as one of the reasons for repetitions.


I see you are kind of indirectly making comparison between dca and lump sum which might not be necessary because they both have their prons and cons and their unique functionalities such that one may outperform the other in different situations. However, irrespective of your choice of strategies, whether you lump sum or you use the DCA strategy or even combining the both, it will all boils down to your financial/psychological situations, your investment goals and objectives inclusive, and owing to the fact that different situations may arise at different time. Hence, you can be consistence in your dca and receive a huge sum of money and decides to invest that money as a lump sum and probably sees it as an advantage of balancing or rebalancing your investment. It is also good for you to know, that you bought at once doesn't mean you are leaving your investment rather your will be thinking of how best you can make a balancing or rebalancing of your overall investment if and when necessary. Hence what is most important is the size of your Bitcoin investment and how long can you be able to hodl.



Bitcoin investment shouldn't be done in any form of pressure in terms of our expenses if not you be prone to selling in order to settle your expenses , the reason why every investor must make that informed decisions as regards to how much of his or her discretional/disposable income after taken care of his or her  basic needs and making proper arrangements for  emergency, reserved and float funds, before making an investment.

The DCA strategy is important when it comes to bitcoin accumulation because many investors couldn't have invested in bitcoin if not for the DCA strategy. The DCA strategy allows investors to control their emotions and buy bitcoin at any time their DCA money is ready, and they can buy bitcoin even if the price is increasing or decreasing because they know they will be buying at different intervals. Sometimes the DCA strategy allows investors to accumulate bitcoin when bitcoin is in a dip, which would make investors not to be concerned about buying the bitcoin dip.

I see that DCA is for anybody that has a steady source of income that can be able to accumulate as little as $5 to $10 per week because if you want to be rich I don think you would be able to accumulate. When you are talking about little income, you should be able to clarify the type of income. Each an everyone has its own source of income generation and the capacity it can carry . Provided that the amount he receives can be able to help him accumulate btc and emergency fund just like everyone has been saying in this thread, I believe he has to go. Everyone has the amount dey revieve it ranges from $50 $100 $200 $250 $300 and so on. In a situation where you receive any of this amount, you can schedule or program your self on how to arrange the DCA, emergency and reserved fund . So if you think you need to be rich before you invest in bitcoin then am afraid you are delaying your HODLing journey.

Thank you @Greyhats for sharing your personal experience on this and I want to tell you that I agree with you on the negative part of the 'hybrid system' like you called it. Reading through your comment I realized how stressful it can actually be to monitor the price regularly with the intent of looking for the dip in which the perfect is never easy to locate because what might appear as dip now might just happen to be the beginning of the dip few hours or few days later. I have been there and I can confirm that it is a strenuous process that often messes with my head (psychology).

On a second thought and in agreement with your comment, instead of the stress, one can simply use the DCA method and achieve the same result or something close to it. Due to the fact that I got a lot of BTC at very good prices when I applied the method, I have suddenly forgotten the stress that came with it like how many times I had to stay glued to the charts, how often I regret buying when I bought instead of waiting a little further and also why I didn't buy when I would have gotten lower prices. The process is never without challenges and some form of luck. This is why I have come to now understand that the DCA method is just enough.

You are not wrong justinlamode in that there are going to be certain times in which we might purposefully hold back buying BTC right away and try to buy on dips, yet we are not going to necessarily know if that is a good idea, since sometimes there can be several false senses that they BTC price is going to drop, and it ends up doing the opposite - which surely ended up being the case for those guys who might have had been holding back too much value in September/October 2023 - even though it may have worked out for guys who held back in around April/May 2022, there is no real strong information that BTC's bottom might have reversed a lot earlier snd a lot higher than it ended up reversing in that late 2022 time period in which largely the BTC price kept dropping - and maybe there were also a lot of guys who largely ran out of money during that time since the BTC price was dropping more than what had been thought to be reasonable and/or feasible - so any of the guys who ended up doing better during that time, might have been largely lucky, and at the same time there were quite a few of those guys who were sitting on decent amounts of cash in the lower $20ks and even through out the late 2022 dip down $15,479 who were waiting for the BTC price to drop a lot lower, such as under $10k or $12k or even sub $14k- and some of those guys ended up being too greedy for their own good... 

At the same time, anyone still able to DCA throughout that whole time, might not have had a lot of cashflow, but still could have ended up profiting by largely staying consistent during that time when market signals were not exactly straight forward, and even the DCA-er would still have been o.ik. even if he had been DCAing at either of the tops in 2021 - (either the April one or the November one) and just continued to engage in ongoing DCAing during that whole time... especially if he was planning to be in BTC for the long run and he was not claiming to know much of anything what was going on with BTC's short term price happenings, but just having confidence that in the next 4-10 years or longer (or whatever his particular longer term investment timeline), he figured that the odds were pretty decent that BTC's prices would end up being higher rather than lower.. (not 100% confident, but at least confident enough to just stay persistent, consistent and ongoing with his accumulation of BTC).

So, I don't really have any problem with anything that you had posted justinlamode - except for any kind of implication that an overwhelming majority of guys are really going to have hardly any clue about which way the BTC price is going to go in the short-to-medium term... so yeah, they can hold back some of their dollars just in case, yet they still likely are going to be careful in regards to holding back more than what would be in their best interest, especially if the BTC price would have ended up not having the dip that ended up happening... so frequently, any guys serious about BTC accumulation (and attempting to do it as prudently aggressively as they can), they are going to have to end up entering compromises with themselves in terms of just sucking up the fact that the BTC price might drop and just ongoingly buy at whatever is the then price because it remains the most reasonable thing to do, even if sometimes their cost per BTC ends up higher (also the quantity of BTC that they end up accumulating ended up being less for those particular purchases - even though if they consistently are buying BTC, they still likely have good chances to end up with more BTC rather than the guy who is ongoingly waiting for dips and trying to outsmart the market)


You do not have to DCA, and surely the fact that you have a lump sum that you want to invest into bitcoin, even if you are transferring from some other asset, that provides you options that some guys who have no extra sources of cash might not have.. and one of the powers of DCA is for those who do not have lump sum.

So there can be quite a few various strategies that a lump summing guy might employ, including that he might decide to lump sum and then  to NOT invest any more into bitcoin, unless the BTC price moves against him (meaning if it moves down rather than up), so then he could have various extra funds on the side (or just a DCA amount) that he would start to employ if the BTC price moves down a certain amount.. and whether that is called DCA or buying on dip or some variations, those could be ways that guys could plan ahead in such ways that do not necessarily involve ongoing DCA.

One of the risks of lump summing what is thought to be a large amount is that a guy who fails/refuses to continue to invest into BTC, he might later come to regret that his invested amount is way lower than what it should have been or could have been, so even though DCA and buying on dips can supplement any BTC buying approach that started out with a lump sum, it is not necessarily the case that every guy will employ such practices, and it is not even necessarily going to be a good use of the guy's capital if he might be motivated by other kinds of balances, and he is not limited in his discretionary income or perhaps he might choose that he has other priorities in life and he is not trying to be as aggressively as he can in bitcoin but that if he had invested 5% to 25% or whatever he ends up investing into bitcoin, he might consider that to be a sufficient enough stake and he is not necessarily going to feel pressured to revisit his investment until several years later.. ..

and so whether the guy is wrong or not in his approach, and even if he might be advantaged by DCAing and buying on dips, he might have already decided how he is going to approach bitcoin in a more modest way that still ends up allowing him to take a fairly decent stake in it, even if some of us might conclude that he is being too whimpy in the way he had chosen to invest in bitcoin.  In this regard, there are some folks who ONLY lump sum in the ways that they invest, yet if they keep doing it over a period of time, it might become a bit ambiguous regarding if they are actually DCAing, even if it might appear to be lump sum investments that are once a quarter, twice a year or some other longer kind of increment that might not be as practical for some one of more modest means and who only has limited cashflow in which something like weekly DCA would more likely be the better way to go for guys of more modest means and who are reliant on sometimes variable cashflows.


You could have a guy who gets lump sum incomes on a regular basis, and every time that he receives it he invests 80% of it into bitcoin.  Even though it seems like a lump sum, it also seems like DCA because he is largely investing into bitcoin based on how much income he has  coming in and also his decision to invest into bitcoin likely means that he is considering that extra amount to be discretionary/disposable income because his expenses are largely already covered by other money that he has coming in on a regular basis.

You seem to have a misunderstanding of the DCA strategy in total.

The DCA strategy is not for poor people or for those with little income, it has nothing to do with how much you are earning, the DCA strategy is simply dividing your capital into parts and investing or buying at intervals and this is done for some reason which is to.reduce the impact of volatility on yoir portfolio, you know that bitcoin is still a very volatile asset and to avoid situations where by you buy at a price and then the price dips and you portfolio would be at lose, but with the DCA method you get to buy at every intervals and price points so those fluctuations in price would not affect you, and why it is recommended here is beach it sis more beginners friendly and you don't need much knowledge other than to know how to buy and hold to get started with the DCA unlike the buying the dip strategy that involves some level of timing the market and more knowledge to be very successful at it. So yeah there is no barrier in using the DCA strategy.

Actually it depends what you prefer since maybe there are people are not contended with DCA methods since as he said he can able to wit for the dips then accumulate which is still fine. But for sure he has another plan when those dips didn't came and he can go back to do DCA method so that they can make sure that their holding size will increase.

I know waiting for dip is not applicable to anyone since there are people will doubt seeing some dips will happen. But for people who's emotion has been strengthen by years of experience and exposure on the market for sure they know how they can handle their selves on any situations that may occur.
But actually what's important at the end is they have holdings and their decision is solid to hold their bitcoin for long term then think about they are doing a good investment with this coin.

It has been discussed often times on this thread that there a various strategies to use in accumulating Bitcoin and of which as a beginner we all learnt that using the DCA strategy is the first step to buy and HODL and again we also learnt about the lump sum and the need for a reserved funds (emergency funds) while using the DCA because it is what will guide you not to miss your DCA at some point because that is literally an amount set out for miscellaneous and sudden expenses in the future, so instead of this future challenges to affect the DCA, emergency funds will sort those things out.

Let it not look like we are making a repetition of our discussions here so some times we should spend quality time going through this thread then you will understand some basic concepts that is required as a bitcoin investor to accelerate your accumulating process however, every body has there various pattern of investment as some will choose to buy at once and HODL for a long term pending when they will record some reasonable amount of profits then he can decide to sell some of his Bitcoins. But to me since I started following up this thread I have been able to understand the need for DCA because it will make you not to stress yourself all the time because you literally gonna accumulate at regular basis and might end up accumulating more than someone that just made a single deposit and stopped accumulating and moreover, accumulating at regular intervals keeps your investment alive and also makes your wallet active.

Well... There's that. But then, regarding the most favorable strategy, whether it's DCA or lump sum or whatever, it all comes down to a personal decision of what works for you, and what level of risk you're willing to accommodate.
With lump-sum investing, you invest a lump sum all at once rather than gradually at regular intervals. Lump-sum investing can generate higher returns as the initial larger sum of money has more time to grow. With dca, you are hopefully, growing the initial amount into a larger amount over time. However, there are also benefits to DCA. It provides a means for people who don't have a lump sum but have regular excess cash to invest immediately, removing the daunting prospect of getting the timing right.
If one is not bothered by any portfolio fluctuations and has a long enough investment horizon, lump-sum would have been optimal most of the time. But being caught off-guard by huge price drops can have massive repercussions if one is forced to exit a position before the market turns in their favour.
What I'm trying to say is that every strategy has its own highd and lows. For example
Due to the single, larger investment, lumpsum investors often face higher initial risk. The value of the investment can experience immediate fluctuations, which could lead to substantial gains or losses.
A 2021 Northwestern Mutual Life study showed that investing a lump sum generally outperforms dcaing over various periods of time. Just keep in mind that this is based on past historical performance, so it doesn't necessarily mean this will remain the case in the future.
When it comes to buying only at dips there are a few set backs that I'm aware of:
Accurately timing market lows can be difficult, causing to missed opportunities or premature purchases.

 Not all price drops indicate a true buying on opportunity; some might precede larger market declines.

I think the major reason why the DCA strategy is more advisable, it's because when it comes to financial ability almost everyone can actually afford to partake so far as the necessary requirements are met. The DCA strategy is a well effective method for those of us that don't have the financial strength to buy big like a whale and also it's enhances the discipline of the investor because it's something that must be done consistently and it's also saves the investors from any unnecessary needs to selloff their coins to settle bills because that and everything concerning the investment is well settled in the way that the money used or set aside for the consistent buying of Bitcoin is one that really don't much effect in terms of our other expenses.

When something is working for you, there is every possibility that you will be committed to it. Besides DCA method is something everyone should be committed to. There hasn't really been a reasonable dip in the market for sometime now, and in situation like this it's not wise to keep your money in the bank and waiting for dip to happen, where as this money can be effectively utilize in accumulating through DCA. Even if the dip eventually happens, someone who is committed to the DCA method will still benefit from it, because his continuous buying is in all market conditions. So getting committed to the DCA method really get you covered. Instead of being confused and worrying unnecessary in calculating when there is a reasonable dip, why not just focus on DCA method and save yourself from all the unnecessary stress.

Why should you be bothered about timing the market, the DCA strategy already allows you to have an idea of the bitcoin price at all times, and the best way to buy the dip is to just fucking buy when the price has reduced a bit and a better way would be to buy down if you are not sure if that's the dip, let's say you split the money that you wanted to use to buy on the dip into parts and just buy on intervals that way you woudl take the most advantage of the dip and at times they are situation where by you exhaust the money you used to buy the dip and the price continues to dip, but one thign you should have in mind is that you can never always get it right,  so yeah at times you would be most favoured by your strategy and other times you won't get it right, but since you said you were using the DCA strategy too then you shoudl be all right cause with the DCA you but at every market intervals.

Yeah life happens at times and we find ourselves in some uncomfortable situations where we have to use the money in our reserves to solve other problems other that what we kept them for which is buying the dip in this case.

Any one who doesn't have an emergency funds is literally gambling and should know that his investment isn't safe at any time, what if life happens and your house gets burnt down or hospital situation and all you have is yoir bitcoin holdings, you would surely sell them off, without the insurance of our emergency funds we are sure gambling rather than investing and your very right about this. In fact it's necessary we build our emergency funds as we accumulate bitcoin or even before we start our accumulation journey.

Anticipating for the dip before buying is wrong, what if the dip never come as the expected price or what might happen holding fiat for so long, buying using the lump sum strategy is totally different from dca strategy. An investor can be expecting a huge amount of money maybe from an oil company or organisation etc and decide to dedicate everything into bitcoin without thinking twice is the lump sum strategy, buying with a huge amount at once. Using the lump sum to accumulate when the price is dip is a good idea. Lump sum strategy doesn't necessary need planning that's why newbies are adviced to use the dca strategy first cause of the planning process and learning. From my view in order to partake using the lump sum strategy one must be set to handle every needs without touching their investment likewise the dca strategy too.