Topic: Buy the DIP, and HODL! - page 301. (Read 123747 times)

Most at times people that make mistakes fail to notice their mistakes, especially in bitcoin investment and I think the reason would be that they fail to have a record that would help them track themselves, it's good for us as investors especially early investors like me to have a  record of every bit of amount they have invested and every case senerio they are working towards, so if they make mistakes they could easily fall back to them and make adjustments. A friend of mine said if you can't retrace your steps then you can't direct someone else, In a similar vein, without documentation for your investment, it's impossible to identify where things are going wrong.


I think it's good I invest what I am more prepared to lose, I would have said since uts investment it's kind of a 50/50 ratio of giving profits or crashing, so I have prepared myself by choosing to diversify in other areas like business which I told you earlier about and also real estate seems to be a good idea that has been coming to my head, but I just wanted to focus on accumulating bitcoin to a point then I begin my diversification after my emergency fund is set. I do have all this in mind, we can't always use bitcoin past performance to lay claims to what might happen or can happen in the future so instead we use this facts to guide our steps also preparing if things go south which is a possibility.

I think you are misunderstanding him, what he is actually saying is that your profit in bitcoin is proportional to your risk level. That is to say your amount of money you invest in bitcoin will determine the level of profit you get from bitcoin at the end of your maturity date.  It's a very simple mathematics, someone doing a DCA of $50 weekly will not have the same level of profit as someone who is doing $200 DCA weekly if they are both having the same maturity date. Provided your financial situation can cater for you doing DCA with some bigger amount of money then go for it. DCA is not just for people who are doing $10 or $20 weekly or monthly. There are people who are also doing DCA with $500 and above weekly or monthly.

You have made mistakes and you are willing to make corrections do history wont repeat again. Yes, making mistakes is no inevitable when it comes to Bitcoin investment but repeating it is stupidity. Accumulating bitcoin is quite the most acceptable advise anyone could give to a freind or family members because of the economic crisis. So i get angry when i see investors pulling out profit from their investment because of ceremonial purpose. Holding long is something that will elevate someone from One financial level to another if patience is made priority.

From the point of the title of course buy on dips and hold.

In this case, of course there are various meanings in interpreting it. But the main point that I think is best is to continue making purchases and holding them for the long term. I wasn't too keen on trading as my biggest mistake was selling Btc holdings in the past. And that was the biggest mistake I ever made, so I am determined to correct past mistakes by re-accumulating Bitcoin which I prioritize for the long term and now I am in my second year of investing.

They can have whatever they want because the money is theirs and they decide it. Regardless the best advice is to buy on the dips and hold.

Obviously many seems to be battling with the potential difference between investing and trading of which some person's are still mistaking trading to be investing. The following gives certain comparison as to this regards.
                       Investing
1) investing is a long term and has a lower risk

2)investing requires fundamental knowledge

3)investing gives investors more time to make decisions that will yeild profit in the long run

4) investing means you are buying to hodl for a period of expecting a compounded value over time.
                        Trading
1)Trading is for a short term and has a higher risk

2) trading requires technically knowledge

3) in trading traders hurried in to make hasty and costly decisions based on market trends

4) trading means you are buying to sell for profit maximization within the shortest time frame.

Investment is been prioritize because it is more conservative and has  lesser risk and that is the core value of the thread but as an individual the choice is yours whether to invest or trade, What is shared here advice.

I understand that all investors have the goal of making a profit and indeed that is their goal of engaging in bitcoin accumulation but seeking or pursuing profits in an unbalanced way is an approach that I think is better avoided, I understand that anyone can get a large amount of profit when they dare to take a large amount of risk, but isn't that the same as completely ruling out the possibility of risk? of course, investing is not that easy and getting the profits they expect will not be as easy as turning the palm of the hand because the possibility of risk cannot always be avoided completely. This is what happens when one only looks at one side of investing, I'm not saying that you shouldn't prioritize profits because after all that's what we're here for but I hope that we don't get too careless when it comes to making decisions unless you've prepared everything thoroughly especially self-acceptance when the situation turns around where losses come your way.

On the other hand I agree with your statement @JJG where you are more directing someone's mindset to look at the long term which is actually more profitable than doing something they think is "right" like cashing out quickly, this is an investment where the future is what we see and we make the main goal in planning the accumulation of bitcoin that we do, I don't blame them but certainly with an approach like that it is clear that there will be a slight delay in profits when they withdraw too often while others maintain and they will see a significant difference in the amount of profit in the next 5 - 10 years and you can see which one is more profitable.

I explained the trade offs, so in the end it is up to you to figure out the trade offs and how you want to play it.

In other words, Make your choice.  It's up to you.


You can do whatever you like when it comes to how to manage your investment, including whether you pull out amounts at various points or if you cash it all out.



Yes, taking out all your profits is problematic, and like I also mentioned taking out most of your profits can be problematic too, especially in terms of causing the compounding to count for less.. and so you can figure out your own calculations based on your own circumstances in terms of how much of your BTC you want to continue to let ride.. and wether you might have had been better to NOT take profits rather than always being concerned about taking profits, which means selling too much too soon.
 

Sometimes people do come to the end of their lives where they might start to dip into principle, which also could be a problem if they miscalculate. 

Another thing is that they could experience some unexpected emergency(ies) that they believe to justify them in terms of taking from their bitcoin rather than any other sources (in the event that they might have other sources in which they could draw upon).  We should try to design our investment into BTC so that these kinds of situation would not come up, but designing around it may or may not be possible.

Is a very wrong strategy as an investor by thinking that you
will not have much profit on investing on Bitcoin with a smaller amounts on a regular basis, however I disagree with you because there is no way you can compare the risk involved on chasing profits to holding because there is no risk involved on holding but however the only interpretation or reason why most people always like to take advantage of the price is actually because of greed and also I would advise you that if your strategy is by risking big to get big profit it will be wise for you to change that narrative because so many investors has end up destroying there investment portfolio because of greed, so perhaps just like @JayJuanGee mention earlier there is no way you can compare the profit you would make if you hold to the little profit you would have by chasing profit.

Whats really wrong in taking profit? If you have hodl your investment for a decade or more and you choose to take profit there is nothing bad as long as you are willing to continue your investment. The only stupidity investors do is taking all of their profit along with their investment capital which is totally wrong. You only take a capital of your investment  if your done with the investment. However, i dont see bitcoin investment ending soon so why will a so-called investor take his capital after he takes his profit?

You are wrong.

There can be great harm from taking profits and continuing to pull out value and failing refusing to continue to invest and/or to let your investment ride, especially something like bitcoin...  and so you think that you are doing great because you keep pulling out your profits, and then when some guys might be receiving 10x to 50x or more in profits after 5-10 years, you might have ended up pulling out relatively low levels of profits and you are still struggling to build up a sufficient nest egg (or investment portfolio).


You might be suggesting that you are being greedy by taking profits, when instead you are short-sighted and scared and unwilling /unable to let your investment ride, and too busy gambling rather than investing.

You call what  you are doing investing, but you are not.. you are gambling. .because you have little to no ability to stay in, and probably you have lack of discipline and/or a lack of a long term plan. .and you end up getting scared at every little profit so then when you get scared, you pull out the measly profits... and yeah, maybe you made some money.. such as 50%. but when you really want to start to live 4-10 years or later down the road, you still are doing the same things and finding the hustle and you have not built up a nest egg.. so you might feel like you are the smartest guy in the room when you are living it up, but if you have to keep working until you are 70 versus the guy who might either be able to stop working early or at least be able to choose the quantity of his work, then you might feel that you either had not been stocking away enough profits and./or you were holding your profits in the wrong assets, currencies and/or properties.

Who prioritise quick profits at the beginning of an investment will suffer in any investment. The investor must acquire awareness about his investment. Bitcoin is not a get-rich-quick scheme. Here only those who hold their investment for a long period of time can be profitable from Bitcoin. Despite the fact that many were early investors in Bitcoin, they did not gain much from Bitcoin. The main reason for this is that they invested there and sold their bitcoins for a small profit. Those who are long-term holders of Bitcoin will definitely get their desired results from Bitcoin.

Real estate investment and bitcoin investment are two different forms of investments. I'm still struggling to find the reason why you are asking someone who what invest in real estate to first in bitcoin. Your case is a different case given the fact that you don't understand real estate back then. Not everyone will be as lucky as you are. And it's possible you have known little about bitcoin, and you believe in it. So those who are not knowledgeable as you are, shouldn't be advised to forget about their plans of investing in real estate and jump into bitcoin investment which they never planned to to. If they do as you are advising, they are definitely going to sell it off along the line, one there is a fluctuation in bitcoin price towards the downtrend.

They could buy whenever they like if they use DCA method and they don't need to think about other risky things compare if you do those daily trades. Maybe some other think about its the same as daily trades since they only look for potential profits but execution is different and the level of risk taking is not quiet much if you do this method well. People just need to understand the conditions and prepare some funds intended to us for DCA so that they became successful and not just good at start.

I know its easy to tell this when writing but if they could able to research to know more information about this for sure they understand this and maybe they can see if this one good for them or they stick around adopting the risk since they like to trade and earn in short period of time.

exactly yah on the right track, as they say "rome wasn't built in a day" alot  of new investors always have that mindset that investment is one kind of getting rich quick scheme. That only when you wanna gamble with money and endup losing it. As implied long-term investment. Only when yah investment is long-term and you keep accumulating more bitcoin. Doing so you would endup with good profits, so as you using DCA strategies or any suitable strategy in investing in bitcoin (you already understand that investing in bitcoin is more safer) so you won't have any fear in investing in it. You just got to play your role by buying or accumulating with any suitable strategy. And then you would see the tremendous growth in your portfolio

I think the DCA method is not as complicated as you say, because any investor can easily set their time when they want to buy every week or every month when they want to invest using the DCA method. Because if investors have to continue to monitor the market every day just to buy Bitcoin when there is a price correction, I think that is no different between investors and traders who basically always monitor the market to buy when the price starts to be corrected.

Meanwhile, what I have experienced and seen for myself is that people who use the DCA method are actually quite easy to manage their time to buy and also quite easy to manage the capital that will be used for investment. So you also shouldn't equate investors with traders who often monitor the market to buy something they want when price conditions start to turn lower.

Understandable for people to doubt on something they don't know, but its a mistake if they don't want to figure out what are those new information introduce to them since if they always caught up with fear without verifying the technology or the currencies they have seen for sure they would missed out the opportunity that can change their life. That's why we can say that those old folks in crypto are so lucky to deal with bitcoin when price is so cheap since most of them are earning the fruit of their efforts made for long time especially when holding their bitcoins since they have strong belief on it.

Also if people would think about getting big profit for small amount they deposit on short time span then most likely they would fail, since they might go on some promising offer that can turn into scam in short while that's why people should not became so greedy and have realistic approach on their investment on bitcoin.

Everyone has their own thoughts.
Investing in Bitcoin is indeed quite promising for the future and there are those who doubt that, but what must be understood is that the profits that will be obtained are quite commensurate with the risk, meaning that if we invest in Bitcoin with a small amount of funds, we will not get large profits.
I don't mean to be greedy in taking profits, indeed we have to be realistic but there is no harm in taking big risks for big profits, especially if we only use a small amount of funds to invest.

Recommendations about investing of bitcoin is absolutely right.In my experience I have been invited in locally share market in my country but a huge loose in my portfolio.If I know before about bitcoin investment could not investment elsewhere.

For those who are trying to invest in new real estate, it can be good to start investing with Bitcoin. When I first invested it was very difficult for me because I didn't understand about real estate investment at first so I invested all my money in Bitcoin. Slowly.  When I learned about investing, I started investing using DAC method without investing full money and gradually gained a lot of money.

Yes if a person has a small amount of funds to invest in the initial stage then it will be better and safer to invest in Bitcoin than investing in other coins. Bitcoin has a method that anyone can start investing in Bitcoin from any amount of money we can call that method as DCA. Many are already enjoying the benefits of investing in this method.
Those who cannot afford to buy large amounts of Bitcoins invest their Bitcoins using the Dollar Cost Averaging method. Not only do we benefit from investing in the dollar cost averaging approach, but investing in this approach must continue and hold for the future. If you start investing your bitcoins with the DCA method and are not able to hold it for a long time then there is no value in investing in this method.