Topic: Buy the DIP, and HODL! - page 296. (Read 123781 times)

Yes, it is true that diversification is not done in DCA. While here I did not describe diversify in the sense of a diversify strategy, nor did I mean it. I said to explain the word Diversify. Here, diversify means to modify, which means to modify your investment over a certain time period in a target security on a regular basis like the individual distribution of their total investment, to reduce the price impact.

Not just that, if you look at this thread it is strictly on how one can accumulate bitcoin through DCA, lump sum, and buying at the dip. Which means this thread generalize on investing for the future and sound investment practice. This is why we need to be specific with the word "bitcoin" because it is only bitcoin investment that when you hodli for long it has the potential to generate good profit in the long run, that can turn your life around. Altcoins are not to be kept for long, and it is useless to DCA on altcoins, because you are wasting time and money, that you will regret later, when they end up valueless. Altcoins are not investment, but they are used for gambling because their prices can be manipulated at anytime, and you cannot be your own bank with altcoins because all their wallets are closed source, and the consequences for gambling is great loss, and frustration. Bitcoin is King Daddy.

I've never heard of DCA been used for diversification at any time, everyone who use woud surely enjoy its benefits and that why it's the most recommended for newbies. It's easy to learn and it's not stressful to carry out, since u started using DCA I've learnt how to plan and I've started to build a more long term mindset.

Early investor should be less bothered about losses on their portfolio as our major aim is to accumulate bitcoin, every price drop is to our advantage and with using DCA we can take advantage and buy at those intervals, DCA is newbie friendly and that why we use it very much.

I've taken some time to think of it and i totally agree and stand by what you advised in the past, to me I don't think gambling with even a small percentage of your holdings is a good practice and could even slow me down in my accumulation journey at the end of the day or I end up making no real progress in many years of such practice.

IMO if anyone must succeed especially newbies we must have clear understanding of what we should do in our early stages of accumulation and what not to do, I dont think a newbie should be concerned or engaged in such practices that would limit his accumulation of Bitcoin in any way that he has to limit his allocations to satisfy other needs, and moreover gambling can become a dangerous habit if not controlled and later leading to even us allocating more than planned to gamble more, just imagine a newbie starting with little capital which is already at a disadvantage of size now engaging in gambling he would end up stuck with a very small bitcoin if he doesn't take time.

What I think is newbies in particular should stay clear from gambling practices and if they must it should be after at least 4-5 years of accumulation before they think of such, earlier in this thread when @JayJuanGee explained it to me he was talking about more matured investors should be the once to allocate like 10% of their holdings to such practices not newbies who just want to start investing.

According to @Wind_FURY becoming a pleb literally means an average income earner, in this case trying to diversify one's investment as a pleb should not be recommended. An average income earner has little after much separation of funds for his survival then in what amount can he split up the money to invest. His solid interest should be to maximize his ROI dependetly on one investment that is worth the risk.

As a pleb, it will be much convenient to hold Bitcoin instead of any other substitute due to the motion of continuity and good amount of profit as long we continue to hold.

I disagree with you; the DCA strategy is never used in diversifying investments. The DCA is a strategy that is used to accumulate bitcoin at regular intervals, and it will also help to control the volatility of bitcoin in your bitcoin investment. Also, with the DCA strategy, an investor can use 10% or 20% of his salary, depending on the amount he or she receives weekly or monthly, to consistently accumulate bitcoin.

Absolutely right, man! 
I think the best strategy for accumulating Bitcoin is DCA (Dollar Cost Averaging). Personally, I would love to use the DCA because in fact, this made a lot of profit for me and from all the above it is the simplest strategy beginners can easily understand it. 
 
DCA is a strategy that people use to diversify their investments. I mean in DCS, investors do the same amount of investment targeted place at a daily basis interval in a certain time period regardless of price.
 
DCA's big advantage is that it reduces the impact of the price (volatility).
 
Also reduce the loss ratio; I mean if you lose some, DCA has the potential to make it return to another target. 
 
This is a reason which I personally experience under DCA strategy, and And for the reasons mentioned above, DCA has a prominent place in the eyes of investors, of which I am a witness myself, and in my opinion, investors will also have the position that these advantages are under the point.
 
 
For more inform >>> What is DCA?

Well everybody is here to learn from eachother. All this point given I'm pretty sure that @michellee as already gotten the gist, because you guys are right that crypto is a general term. So mentioning crypto Is you talking about bitcoin and other coin which others as already clarified that this thread is all about holding or bitcoin investment and all that. So next time just try and specify by mentioning bitcoin than using crypto or cryptocurrency so that those that are new in this space would easily get the gist.
I get what you trying to say. But still can't change the fact that bitcoin is not crypto itself, yeah we all know that bitcoin is the mother of all cryptocurrency. And other coins were built around bitcoin and all that, but bitcoin still under the  category of cryptocurrencies, So those people that have always have the thought that bitcoin is crypto itself. Is due to the half-size knowledge they have about and this space. So as have said before we all here to learn from eachother so if have said anything off! Please anyone can do so in correcting me. Because this is the aim of the forum forus to support eachother. Because anytime say something off there would always be users here to put you right on track.

Crypto is a general term and I think we need to understand this, bitcoin has a name and we should try to call it that way, saying crypto can confuse others to think that the rules and conditions that apply to bitcoin apply to other coins, and as we know other coins include shit coin which are mostly worthless and they all depend on bitcoin to have value. Using the word crypto is going off topic in this thread.

In the earlier part of this thread, if I'm not mistaken, I think @JayJuanGee stressed the need to avoid using the word "cryptocurrency" when generalizing Bitcoin and the other coins out there. The reason being that while many funny things have been done leveraging on cryptocurrency, Bitcoin have remained clean since inception and people tend to taint the image of Bitcoin whenever they unleash their clandestine plots. Therefore, such clarifications is important and we must make effort to make people understand that Bitcoin is different from whatever people promote under the guise of cryptocurrency with the intent to steal.

In addition, I don't think there is officially any word like "crypto" rather it was coined as an abbreviation for cryptocurrency. So instead of regarding Bitcoin as crypto, why not we just address it as Bitcoin which is by all standard more popular and acceptable to all!

@justbillywitt, Bitcoin is Bitcoin for the benefits of this thread making use of the word crypto in this thread can  actually make  understanding the concepts of this thread contradictory, if you want to make use of the word Bitcoin is better you say Bitcoin than crypto, I am beginning to feel that you want to contradict this thread, you can never convince me that altcoins is not included @michellee's expression of crypto , if anyone want to say Bitcoin let him say Bitcoin there is no reason referring Bitcoin to be crypto or crypto  to be Bitcoin so far this thread is concerned.

I think you are getting something wrong here. Bitcoin is the crypto itself. Every other coins you see today were built around bitcoin. Many people only know bitcoin when they hear the word crypto. There are people out there today who doesn't know that other coins exist, so when they hear about crypto the first thing that comes to their mind is bitcoin. Bitcoin is the crypto currency, if you are not aware of this know it today. If he had mentioned alt coins then you can say he is referring to other coins. So @Michelle is not talking out of point when he used the  word crypto. If you see a newbie that has no knowledge about bitcoin investment, ask him or her what is crypto, I bet you the person will mention bitcoin.

I agree with you that holding bitcoin is not as hard as what that image shows. Someone will only find it hard to hold bitcoin for the long term when he or she doesn't make the right preparations, such as having a source of income, an emergency fund to use and solve unforeseen financial problems, and a reserve fund to use and take care of your financial problems in case you lose your job. But anyone who has kept all these will find it easy to accumulate bitcoin with the DCA strategy anytime his weekly or monthly salary arrives.

Wallet security is not the topic of this thread but thanks for throwing light in that area, so many newbies like me who are still learning about our security, and self custody must be practiced but we also need to know how to do it best ourselves, it won't be a good experience to lose your bitcoin holdings because we failed to be knowledgeable in such areas, and many newbies continue to flood this thread daily to learn about investment, I guess they are motivated about the bull run, but I wished they had already stared buying in the bear market. They are other threads that teach about security and I think we should learn about security there.

The links are really helpful 🙂.

Now Bitcoin price corrections of normal size are still occurring in the market and this is not so bad for investors who are still happy to use the DCA method so far. I don't think about the reason for the decline too much this month and also in the next month because the potential for a price increase is still quite possible in Bitcoin if you look at the many people who are happy to buy Bitcoin at this time.

This also includes investors who are still not bored with the current market conditions so they are still happy enough to continue buying and the possibility of a decline in the price of Bitcoin in the market is less compared to the potential price increase that is still occurring in the last few days. And I also hope that this can continue until the end of this year.

@michelle, don't forget is a Bitcoin discussion thread, using the word crypto may implies including altcoins which is not included in the topic of discussion.
Apparently, in as much as investment diversification has enormous benefits it is optional must individual tend to concentrate in one investment, but considering investment diversification I will advise it should really be on different asset classes or commodities, just like you said you have made Bitcoin your main investment but trying to diversify your investment in other things that's if i gat you correct, I will  advice that your diversification should be on something that is not Bitcoin related since you have already chosen Bitcoin as your main investment, that's if you have accumulated your Bitcoin to the point of considering diversification.

No, we don't treat our capital like Warren Buffett's or other rich people. We try to arrange our capital to invest in Bitcoin. If we make a profit, we can give more portion to invest in Bitcoin while we can also think about adding more investment so we can increase our investment portfolio. That will give us more profit in the future because we can have many investment and not just in Bitcoin.

We can take more risks but we should not break our limit on handling the risks and only take the risk that we can afford. That is one thing that we must remember in investing. If they don't want to confuse handling many investment, yes he can use one investment that he can HODL long term. That means, he can focus on buy and HODL Bitcoin.

We always suggest to HODL Bitcoin to all people because we know that Bitcoin can give a big profit in the future.

That is just an example because we are in crypto. Investing in other commodities is good, I prefer to invest in gold as starts. I consider that having investment in real estate or land needs more money but we can have an investment in gold. No problem if you don't want to invest in altcoins because that is a personal choice. I make Bitcoin as my main investment but I am trying to build my investment in other things.

@avp2306 On the contrary that sounds more like saying Bitcoin investment or hodl Bitcoin is only for the rich or only possible for macro transaction, key note it doesn't take thousands of dollars to invest in Bitcoin, perhaps you are not buying the entire Bitcoin you can buy a fraction of it and hodl, having made provisions for emergency and reserve funds to take care of any unplanned expenses and also have made arrangements for your daily upkeep, micro transaction is one of the main feature of Bitcoin investment, the dca gives investors that opportunity of entry the market even with there small capital either weekly or monthly so far it is long term perspective to hodl longer of about 5 to 10 years or more.

You sound either retarded or like a degenerate gambler.  You don't build wealth by fucking around, but hey people can do what they want.

I would suggest that anyone investing into bitcoin to limit his degenerate gambling tendencies to no more than 10% of his bitcoin holdings, and if such degenerate gambler might have only a low amount that he is able to invest, it likely would still end up adding up over the years, even if you are merely investing $10 per week, and maybe even adding to your investment with the passage of time (as I attempted to outline in my above examples) as you make progress in building up your investment size.  

If you are fucking around with half of your available cash as avp2306 suggests, you may never make any progress and you may well end up staying poor forever, which surely would not be a good position to be in when you are 10, 20 or even 30 years down the road and have been gambling rather than investing all your life when you could have spent time and discipline developing and employing sound investment practices.


There are likely circumstances in which guys can go into trading and make money off of that, but trading, shitcoins and leverage surely is not the topic of this thread, and you are correct Wind_FURY, there are specialized skills that likely need to be learned, and even learning the specialized skills does not necessarily even result in better performance results than someone who just invests regularly into bitcoin from his disposable/discretionary income.  

I few days ago, I outline various hypothetical persons, and put them into 15 different examples in order to show how investment strategies that involve DCA (and lump sum too) could end up playing out..


For sure, threads like this (and the forum) is an interactive process, and for some reason, guys had become quite engaging on this thread in regards to several of the various ideas and ways to accumulate BTC and including that it seems that a good number of guys have been practicing some of their own variations of BTC accumulation, so the active participation and the employment of the ideas, makes it more likely that the ideas are going to sink in and make more sense...  

.. even though surely some guys still seem to be looking for quick results, yet other guys seem to realize that it can take many years to build up a bitcoin portfolio, and we even have some members who have been in bitcoin at various lengths of time, and several of them are able to bring their own level of experience.. and even some of them might be saying that they have to start over because they either got caught up too much into shitcoins or that they had not been employing very consistent BTC accumulation practices.. .. and really, there should be no reason to get worried, even if you are just getting started in bitcoin accumulation in recent times.. and so in those kinds of cases, it might still take a while to learn that it is better to just get started rather than continuing to regret about earlier periods of either inaction or whimpy levels of BTC accumulation.

We likely learn from some of our mistakes, and there are even some very senior forum members with similar stories of relatively whimpy BTC accumulation, so even being involved in the forum for a long time does not necessarily teach guys to accumulate BTC if they are not going to put ideas of BTC bullishness into a kind of accumulation practice.


What makes a wallet good is that it is "open source".. and I am not sure how much we should go into wallet security in this thread.... but you can compare hardware and software wallets.

Another priority would be the idea of self-custodial rather third party custodial.. .. but at the same time we know about transaction fees too.. so we might want to make sure that our UTXOs are $500 to $1k (1 million to 2million satoshis) or more rather than having a bunch of small UTXOs.

https://www.athena-alpha.com/crypto-wallets/

https://www.athena-alpha.com/crypto-wallets/rating-methodology/

https://thebitcoinhole.com/hardware-wallets

https://walletscrutiny.com/hardware/trezorT/

This diagram is just an outline of how to invest in the DCA method. Because regular weekly and monthly investment will be DCA method of investment. The more you invest using the DCA method, the more benefits you will reap in the future. Investing in the DCA method lowers the average level of Bitcoin price and helps increase the wealth from this investment. And this investment plays a significant role in attracting investor's mind. The more frequently you can invest weekly or monthly, the bigger your portfolio will be.