Topic: Buy the DIP, and HODL! - page 289. (Read 136783 times)

You know you don't really have to have an extra money before you lump sum, let's say you've been into other traditional asset and just discovered bitcoin and you wanted to have up to 30% of your total investment in bitcoin, then you decide to move that amount into bitcoin right away that is what a lump sum investment would be, so I doesn't necessarily need to be from an extra cash, I could be from your savings or some unexpected money, all that matters is your buying right away without any thinking about the market trend at that time, the only perk of doing this is that you have to continue buying with DCA unless volatility would really have impact on your portfolio, so as @Troytech said its good we compensate each strategy for each other based on their strengths and weakness, you can think about those that buy only on dips while it's not a bad strategy, it has a weakness of having to wait for dips so you won't be buying at any other time apart from dips and what if the dip your waiting for never comes, so things like this is the down side of waiting on dips, so the best approach for us beginners would be to use the DCA strategy as our main strategy while we use other strategies buying the dip and lump sum as other strategies to get more bitcoin on our portfolio.

What I understand by the comment is not telling everyone they must adopt that method but just explaining the method and also making recommendations which is normal and up to whoever is interested to either use it or leave it. Personally I find substance in that recommendation of using DCA method combined with buying the dips. I remembered when Bitcoin was hovering around $26,000 for several weeks before it fell to $20,000 and even continued below $20,000. An investor with $10,000 to be invested in Bitcoin can decided to keep like $3,000 for buying the dips while the balance of $7,000 is divided into several equal parts to be invested using the DCA method. What this mean is that a good portion of the DCA amount would have been converted to Bitcoin during the $26,000 range whereas during the dip below $20,000 $2,000 was bought and when it dipped below $18,000 the balance $1,000 was bought, this will result in overall increase in the amount of Bitcoin gotten from this approach far more than the quantity the DCA method would have given. Like many people already stated, this method is simple to apply and seems reasonable for all types of investors. Glad to be back to this discussion, so much information to learn from.

Exactly, and troytech your point also nice . But the thing is that I made some mistake and I guessed the blame goes to my write-up. What I actually meant that the other strategy like buying the dip depends on market conditions. And imo I don't think that's there's any market conditions when it comes to DCA purchasing because we eventually buying at any price interval either when the price is high or low aslong we using it in accummulating bitcoin. But when it comes to lump-sum strategy, it depends on one cashflow. Like in a scenario when one have some extra money to spare he can use that money to run some lump-sum purchases, inorder to cover some lapses or give himself some boasts in his Bitcoin accumulating, adding some good quantities to his Bitcoin stashed while he kept on with his DCA strategy.

@tmoonz your very correct about the lump sum buying, it has nothing to do with any market condition, not to long ago Jay made some clarification on the concept of lump sum, and just as you said its buying irrespective of market condition, let's say that I've been DCAing 25% of my 300$ weekly income into bitcoin and I had an extra cash that came in about 6000$ and after I had done some calculations, I realised that I still had an extra 2000$ available that I could use to buy bitcoin, I cam just put that whole money into bitcoin and that would be a lump sum, and at times our lump sum buying should be higher than our normal DCA buying cause based on its original definition from the Internet they would call it a whole buying, meaning buying I'm whole, so this means that a lump sum buying is mostly associated with buying with huge amounts.

Talking about which strategy is the best doesn't really matter although each one of them has their strengths and weakness and also have a way that you can use them to cover for each other, like the DCA method helps to protect us from market volatility but buying too much with DCA at very high prices could make you have a higher buying average and at times you need to buy more at dip to be able to balance it out  although as long as you keep consistency with your DCA strategy it shouldn't matter much, buying on dips is a good strategy but if its yoir only strategy then you are bound to miss out on other buying times and timing the market is not a good idea when it comes to accumulating bitcoin cause every times is a good time to buy.

So a better idea would be to have a good mix and figure out how we can exploit all this strategy to be on top in our accumulation, an example would be keeping extra cash in your reserves to buy when the price dips, and using DCA strategy to continue your weekly buying routine and to have an edge over volatility if you buy in high prices, and using lump sum to front load our investment in times when we have an excess of extra disposable funds that we can still use to buy bitcoin.

What you said is true, but telling everyone to adopt the strategy is not the best thing to do. This strategy is mainly for rich investors who have enough money to take care of their unforeseen problems without thinking of selling their bitcoin portfolio. But if investors who are not rich are more concerned about buying the bitcoin dip and still accumulating bitcoin with the DCA strategy, they might not have enough money left to take care of their unforeseen problems, and they will have no choice but to sell their bitcoin portfolio to solve them and survive. This is where the DCA strategy will play a major role for those who do not have enough money to buy the bitcoin dip. If you are accumulating bitcoin with the DCA strategy, it will allow you to buy bitcoin even when bitcoin is at a dip.

But its crucial for some people to do that since some of the investors doesn't have good patience for wait since usually they are preceded by their doubts and turns out miss the dip they are waiting for then get afraid about next movement and totally didn't take a good position for the time they seek for better position.

That's why DCA is perfect strategy for people especially for busy individual since they just plan their accumulation and can able to set their orders at whatever price they like then didn't worried about possible market movement since what they aim is for long term.

But if you have plenty of time then maybe its good to experiment what strategy might work for you since at the end of the day what's important is we fully achieve our goal is to hold and we can't be bothered by anything then we continue to accumulate.

thier is a huge difference between setting out special money for the purpose of buying Bitcoin during the DIP and setting out some money to investing in shitcoins and even think on holding it in the long run for a possible bull like what @kupacrypto is emphasizing. No doubt, apart from the DCA methord, if you have the chance to buy Bitcoin during th DIP it's going to be to your advantage but what's the issue is attempting to equate buying Bitcoin during the DIP and buying shitcoin for long term holding.

Apart from the fact that it's actually an off topic discussion to talk about buying and holding a shitcoin or altcoins on this thread, I haven't seen any shitcoin that has any close futuristic investible prospect anywhere close to bitcoin both in the past and presently and so I think it's very improper to attempt equating Bitcoin and any shitcoin.  But then, as much as DCA methord is good, a combination of the DCA methord and buying during the dip is better. The reason why most persons still emphasis to buy using the DCA methord is because an average person that's participating in this discussion doesn't have enough resources to be able to combine both DCA methord and buying during the dip or even think about doing from loading. The issue with buying during the dip expecially for most beginners that arent financially strong is that In an attempt to wait for a convininece dip price to buy, it will make them wait almost for a long time and youre almost not certain when tye market will dip to the levek you are looking for and you know that fiat at hand doesn't just sit in your hands and wait forever, before you know needs will come up and you will shift it into sorting those needs and that's the main reason why it's best to set out a DCA plan that will help you buy a fraction of Bitcoin at an interval that's convenient for you and with an amount you're able to work with so if you probably have an increase in your pay, you can decide to increae your accumulation routine or set out an amount that's going into buying during the dip.

The DCA method has no threats at all, it is just a way of buying Bitcoin in a manner that it is doing in little fractions but done continuously and regularly. It can be done weekly or month but the key point is it being done regularly with such amount that will not have much financial burden on the investor. The DCA method allows the investor to build a good Bitcoin portfolio over a long period of time and by the way the way it is designed, the investors will not have to sell because the buying was not under any financial pressure.

Saving the portfolio is just one part... the full discussion is how to buy, and how to HODL. Everybody can easily buy but not everyone can save and the method and approach to the buying will influence the HODLing to a large extent that is why there should be a balance in both the buying and the plans for the HODLing.


You are very right on this, we have learnt a lot from the nuggets JJG usually drop here. I am a better investor in Bitcoin coutesy of those useful information that are usually shared free of charge. Many people have also benefitted from those information and are controlling nice stash of Bitcoin already.

Both methods are good in their respective areas but Dর্C is the best because I think it gives the investor the most advantage in buying bitcoins. This is a golden opportunity for an investor if he expresses interest in investing according to his specific capacity. DCA is applicable in any situation but if I consider the case of dip it doesn't always work positively. There is no guarantee when the dip will be found. Moreover, not everyone will get the opportunity to purchase from Dip. DCA strategy for Bitcoin accumulation is very effective for all types of investors which is relatively easy to implement for accumulating bitcoin.

As long as you are still consistent with your DCA strategy weekly or monthly, you can lump sum anytime you ha e the money regardless of bitcoin price. However, the best time to lump sum is during the dip, because will we keep waiting for the dip before we lump sum, when we can NO. Since one gets bitcoin in discount during the dip, it is better if you have the money to lump sum, you divide it into two, since you are already DCAing, use one part to lump sum immediately, and keep the order part to buy at the dip. Or better still, you can share the money into three one part will be added to your regular DCA funds, one part to lump sum immediately and the last part to buy at the dip.

DCA method of accumulating bitcoin does not have any threats, but gives you more strength to be able to accumulate bitcoin without stress, since you are using like 10% of your income to accumulate bitcoin regularly weekly or monthly. When it is properly done, it will give you the opportunity to reach your bitcoin target overtime as long as your are consistent and persistent with it. DCA does not teach anyone how to hodli bitcoin for long, but it only take you to believe in bitcoin, self determination, discipline, sacrifice and staying focus to become a long term holder.

Discussion here is mainly for correcting mistakes, because correct decisions can be taken from each other's discussion. That's why we will discuss the main threats of the DCA method, only then can we all openly hold Bitcoin for a long time. So this discussion is about how to save your hold.
Best Teacher JayjuanGee....

Well shiltcoin like you said is full of risk, it's not a matter of  speculation about it danger to investor but has been proven through several instance that occurs as that can't withstand the market after listed to an exchange as their strength to push falls every day by day. For me one need not use the shiltcoin as alternative to accumulate Bitcoin because it's very dangerous as it could disapoint when your heart is already on it to position your in btc accumulation through it. One should just made up it's mind on focusing directly on Bitcoin using the DCA as the method is very easy to access the purchase of BTC.

But if I may say of anything shiltcoin for those who's heart still believe that they can be if better in future and always want to invest on it, the best way is to use your spare money that won't affect you when you loss it because is like taken a risk of gambling with odd you know is not reliable.

From what JayjuanGee thought me, that there are meaningful concepts and functionalities of various strategies hence, the idea of having a lump sum buying completely has nothing to do with market conditions. However, the idea of lump sum buying is having some amount of money that you are holding right now and you decided how much of that money that you are going to invest right now with that amount that is made available to you to use and buy right now whether there is a dip or not but rather it is much connected to your own personal decision regarding how much of that amount that is available right now that you would want to use and buy Bitcoin right now.
I don't think if the lump sum buying is subjected to any market conditions or buying when there is a dip or which ever way you may have but a sole decision of an investor irrespective of any forms of market conditions,  I think it is just  a misconception of concepts, and
am  also open for corrections if any.

Mate, accumulating bitcoin when there is a price drop is not a good idea, and it will delay your bitcoin accumulation plan or make you lose out on owning a bitcoin. You will be waiting for a particular price at which you will want to buy your bitcoin, and if bitcoin does not drop to that price, you will not buy it. The longer you wait for that price, the more time will be against you, and bitcoin will become more expensive to buy. The best thing is to just accumulate bitcoin with the DCA strategy, which will allow you to also buy bitcoin when the price has dropped or dipped. 

Why are you advising people to invest in shitcoin, whose future cannot be predicted? With shitcoin, you will lose your money because after investing in shitcoin, the shitcoin can easily be dead, such as at -90% in price, which will make you lose all your money in it. There are threads for shitcoin; go there and talk about shitcoin if you are interested in shitcoin. 

I'm pretty much aware that they are other nice strategy out There for accumulating bitcoin. But they all have their time ( depending on market conditions)  . For instance you can't just keep waiting for the dip always before one should consider accumulating, So is better for to continue with his DCA purchasing , having some funds set aside (which known as reserved funds) to purchase the dip whenever any occurs. The other way of accumulating are also helpful when it comes to bitcoint accummulation, but being consistent with your DCA is just the best too, and also making use of the other strategy for instance, spreading out your reserved to purchase the dips ( or you can all in at once but still prefer spreading it), have some nice amount of money to spare as a normies you can go all in at once with the use of lump-summing strategy, depending on the market condition, So if  you look at it we are clearly on same page here.

I can only talk from personal experience, I used to take this hybrid approach dca and bftd, but when I went back thru my data and calculated the difference from pure dca and this hybrid approach I found it didn’t quite pan out the way you are saying. The main problem encountered and not all the time but most of the time you don’t get the dip properly. It’s very hard to hit the dip without a lot of eyes on glass ie time. Yes you can set orders but then you have to divide up your dip money to guess where it lands and sometimes you have leftovers. Instead of bftd I increase my dca amount for a set period of time and then bring it back to normal levels. For example for the next 4 months I increased my dca amount. In July it will go back to normal levels.

The second problem is outside the blockchain, you got a little nest egg for dips but then things come up trying to nibble on the egg from rl. Yes there lots of strategies to insulate and segment your money but the majority of people don’t have these in place. If you don’t have an emergency fund in place I would not recommend trying to bftd strategy.

I’m absolutely not saying your wrong but in my own experience I keep coming back to the old adage; “Time in the market instead of timing the market” Pure DCA let’s you accumulate methodically and increase your time in the market without any timing requirements.

You seem too committed to the DCA method that you tend to have forgotten that there is another method of buying called buying the dips. There is nothing wrong with setting aside some funds to buy when price dips and when waiting,  using the DCA method to continue buying without stop and waiting for the dips to buy lump sum. This is a kind of combined method which is very effective. I think most experienced investors apply this method and I recommend the method for anyone who want to fully take advantage of different market conditions. 

Most things you are just saying Is off mate. FYI we don't have to wait For any drop in price before thinking of accumulating, this bitcoin we taking about, well I guess the reason you have such mentality is due to the fact that you have been In to shitcoins for so long which is bad ( and your post says it all). There's reason why DCA strategy is there for us to make use of. It gives us the chances to purchase bitcoin at any price interval. And I won't advice to use such strategy in shitcoins so that you won't endup getting self reckt so badly , because the risk in shitcoins are just so much , so please try to reduce such urge in investing in and focus mainly on your bitcoin accummulation to be in more safer side . I hope in that part that I bold when you mentioned coins , hope you talking about bitcoin so that you won't endup misleading newbies in investing in some shitty shitcoins.

Bro your stuck with a wrong mentality and perspective here and you need to fix it, how would you find it as a safe idea to hold shitcoins that doesn't even have any possibilities of staying long and can fall even lower than the price you bought them, wait a little I think your confusing what investing is and gambling.

Although you are right that we can't predict future outcomes of anything, but we can sure make the right decisions based on facts.

Investing can be seen as putting your money in an asset that has a more likelihood of giving returns or doing well than others, its just beign smart, can you buy a car and keep it in your garage and expect to see it higher than you bought it ? No, and this is because it is a liability and can not produce any dividend or gain value over time.
Gambling on the other hand is just placing bets on the uncertain outcome of anything, you know its risky and has a very little chance of occurring or higher and then you choose to put some money in it with hopes of a good outcome.
Now you feel that investing in shitcoins and bitcoin are the same thign because we can't predict their future which is  wrong cause you can't even compare shitcoins and bitcoin in any way and we don't make decisions based on such, bitcoin has a more likelihood of doing well than any shitcoin and for the past 14 years it has been doing well and yeah we can make decisions based on this fact, but shitcoins has a history of beign scam and crashing.

And moreover we are investing with money we won't miss and what ever outcome that comes out of it we won't be in a lose, but yeah we have more chance of getting profits than any other person that invests in shitcoins.


People tend to want a faster way of making money and would love any scheme that would offer them such possibilities( which would be trading/gambling, or investing in shitcoins ), and they don't even realise that trading is even more risky in terms of giving you success than building up your bitcoin portfolio, and why I also disregard the idea of trading/gaming with shitcoins is that folks end up losing much capital to such practices and at the end of the day they would end up with regrets.

We might not always know about how to attempt to make reasonable transaction fees without some amount of practice and getting to know whatever wallets that we might be using, including attempting to understand differences between exchanges (and/or third parties) in which we might hold some coins.

Of course, many of us wish for greater user-friendliness through the years and perhaps more tools that might either help us to figure out these matters or maybe the wallets themselves might have built in protections - and frequently it can end up being frustrated if a transaction is stuck for a long time, and maybe more frustrating if we figure out that it was stuck due to some kind of a simple error that we might have had made.. or on the other hand, maybe we get frustrated if we pay multiple times the fees that we could have otherwise spent due to our own errors.

I am not completely sure about the solutions, but it does seem to be the case that some folks are going to end up being surprised if they have a whole bunch of small UTXOs and they end up being expensive to spend in the future, so they end up having less value in bitcoin than they had previously thought, which might be partly due to their own ignorance regarding how fees are currently calculated or how they might be calculated in the future.

There also might be solutions in the future, but I would be careful about potentially being sloppy now, and expecting solutions in the future that might not end up coming.