Topic: Buy the DIP, and HODL! - page 315. (Read 123703 times)

Actually we cant give specifics to the duration of years an investor can hold before he starts enjoying his benefits, but so far we have said that if your portfolio has reached at least 1-5 years of accumulation that is a matured investment, and yes every holder has a desired amount of bitcoin that they want to accumulate during a certain period of accumulation, but for us to start expecting profits from our holdings should be at least up to 4 years of holding and yet its still not guaranteed that this would happen under 4 years, some portfolio might stay up to 10 years before starting to see substantial profits and it also depends on the level of bitcoin accumulated, so instead of us to be thinking of profits in this early stages, I think it would be better we think about how to accumulate more bitcoin, maybe by increasing our income or chunking down more expense, building our emergency funds and reserves, I think our major focus should be on accumulation and holding before we start thinking of making profits, that should be on our mind from at least 4 years of holding and accumulation.

You're really off topic, @hewlet, when you compare holding to trading. Let me explain. Imagine that you buy a piece of land (I'm using land because it's the most relatable thing I can think of), you know its value, and you decide to stake it in the hopes of getting more land. Can you call that an investment or hodling? However, if you buy a piece of land and hold it until it increases in value, that is a good example of holding. They are not comparable and are two different entities. Anyone who trades or makes short-term investments is effectively betting on the likelihood that things will turn out well for him or not, and this is far riskier than actually owning bitcoin because, similar to land, bitcoin is more likely to yield profits over time rather than instantly unless something were to happen to the land or property. You don't go around betting on things like that; you have to realize that bitcoin is an asset and should be treated carefully.

And the reason we use the DCA strategy is that it allows us to accumulate Bitcoin over a longer period of time because it removes the anxiety and fear brought on by market volatility. Holding bitcoin simply refers to holding it for an extended period of time; in some cases, we even intend to hold it forever in the hopes of making even more profit. For example, if someone had been holding bitcoin for ten years or more and had been accumulating with DCA, he would have a sizable portfolio and his profits could even reach up to 20x for the much older coins he has purchased.

In this thread we are on the fact that holding Bitcoin profits more than any other practice you can engage in with bitcoin, be it trading or short term investment which are risky schemes and should not be indulged in.

It will really be difficult to set an acceptable level of bitcoin holding level for investors before they can see profitability in bitcoin for long term hold. The reason is simple, each individual investors has different level of greed and different level of risk tolerance. If it becomes that way, many people people will see it as a burden, and when an investment becomes a burden, then it is not a good investment. And one of the characteristics of investment is convince. People should be able to invest in bitcoin in a manner which is convenient to them. So every individual should buy and hold the amount of bitcoin they can afford.

Buying the dip is not bad, as the thread conveys buying the dip and hodl. But if an investor mistakenly missed the dip, then waiting for the next dip is not a good strategy; instead, he should dca. If he continues to wait for the dip, there are two things involved: he may end up missing the dip at the end or successfully target the dip and buy. Still, there is a high tendency that one may miss the dip. I think these people, always waiting for the dip, are underestimating the power of dcaeing consistently; if not, I don't see any reason why they will prefer to wait when they can buy some percentage regularly and risk-free. The good thing is that a wise investor can dca some percentage, and whenever he has more from his income, he can keep some percentage for buying if it eventually dips. By so doing, he won't complain if he misses the dip because his crypto is doing great, as he acquired much through dca.

you have a good point. Buying the dip ain't actually bad though, But always waiting for the dip before accumulating Any quantities of bitcon is not encouraging. You having such mindset would only lead you in accumulating lesser quantities of bitcoin and also missing out. because you're always waiting for the dip expecially  those who are new in investing in bitcoin. That why if you are planning on buying the dip always back it up with some DCAing, with that would be able to accumulate some good quantities of bitcoin and it would be more profitable expecially when it's long-term investment.
them calling that investing is way off-topics. When come to investing you know that you're talking about the future (holding). Though might be tempting. But still ask your does it worth it selling your investment in such premature state, nahhh ain't worth it because I know that if a hold for long I would yeild more profit than just buying and selling in a short time interval. Just imagine the moment you selling your investment that when the bullish market begins and BTC is going through a new breakthrough. I would that feel, it will feel awful so if don't wanna feel such well start accumulating with funds you can keep for long with being tempt or having the urge of withdrawing it when it's still premature.

IMO I take it that you said it's better for us to practice hodl than to engage in any riskier type of practice with our Bitcoin because, even though short-term plans like trading or selling bitcoin to gain additional bitcoin might be profitable, we should be aware that we are betting our cryptocurrency on speculative outcomes and have strayed from our original plan, which was to invest and hodl for long term.
And so while we are holding, we are merely investing a portion of our fortune or earnings, so even though we are unsure if things will turn out as intended for ourselves as holders in the future.

Additionally, we have the DCA approach, which allows us to conveniently divide the allocated amount for investment into segments and then make periodic investments, relieving us of the anxiety of volatility and fluctuations. And we need to make informed, prudent investment decisions by always remaining informed about bitcoin.

@bitzizzix, you are right on what you said about DCA method of acquiring bitcoin, but what I want to let you know is your definition of hodli, which is wrong. Hodli simply means keeping your bitcoin to yourself without thinking of selling for a long period of time. An investor can buy $1000 worth of bitcoin and hodli over a long period of time, the unit of his bitcoin remains the same but the value will increase.

The DCA method is used to increase your bitcoin portfolio gradually, while you are hodli because it allows you to buy bitcoin at any given price, as long as you are buying regularly, so that after a long period of time, your bitcoin portfolio size will be large. So DCA and hodli goes together for newbies. You don't say that Hodli is a buying strategy.

Any of the method that we use to buy bitcoin, doesn't matter, but the what matters is hodli your bitcoin investment for a very long time and keep on buying to increase your bitcoin portfolio size, so that, you can have a good profit over time.

I think that you are referring to buying at the DIP, as Holding from your statement

I can hopefully say that you guys are amazing, the discussion here are interesting as it tells about how to deal with Bitcoin accumulating process through the help of DCA method.
Moreover everyday I make sure to read some important quotes by @@JayJuanGee because his words are absolutely getting more interesting every day.
However, without this discussion many of us including my self will not know how to accumulate Bitcoin and truth be told that before me joining this forum I don't know what DCAing was all about, so I get lost visiting this thread back then but now I am enjoying the discussion because I have known more about Bitcoin accumulating and what's DCA method is about.
@Makus, you get it right, any investment without a proper plan is nothing but a crab as the investment will end up folding at end. Emergency funds separate you from selling your coins to sort emergency cases, when you have saved 3 to 6 months salaries for emergencies you can start buying Bitcoin with DCAing method and you will not be affected by and money issues as you already have some money that are separate from your investment that you can use anytime to settle things.
With DCA you can buy any amount you want to buy that's why DCA method is easier to use for accumulating Bitcoin.

Absolutely correct sir, after using your emergency fund, there is a need to refill it as soon as possible before a other emergency need arises. And that is why we must in the first place secure an emergency fund upto 3-6 months worth our salary or monthly expenses. So that, should in case we run into any problem like, having a delay in salary payment or sacked from work, within that time frame we'll be able to look for another source of income to keep the investment going. And this is the more reason why we need to take our emergency fund seriously, since we can't actually predict every outcome of our decision and life activities. We should prepare to handle tough situations by securing emergency funds.


I can proudly say that, I'm also a beneficiary of Mr JayJuanGee's teachings and that is why, i keep track of his posts to learn from his wisdom any time he makes a post. He has been a blessing to me and I believe other forum member have also learnt a lot from his teachings. The confidence I have today on Bitcoin was built by my engagement with Mr JJG's posts.

Investing is a proven strategy to build long-term wealth for a secure future through systematic planning and smart decisions, and we should think about this before doing it so that we can do it consistently and regularly.
However, most people don't care about this important strategy. Because most people will be tempted when they get double or triple profits that occur in the short and medium term, and in the end get off track in long-term investments because they are tempted by profits that are only double or triple.
But I understand because this is the beginning for them to know and learn about real long-term investment and valuation, and if they really do it in the long term without an indefinite time limit then the profits will be much greater and many times greater.
And the best long term investments are Hodl and DCA, but both have different methods. And when it comes to investing, different strategies will work for different people due to familiarity and mastery of the strategy.
And in my opinion, one of the investment strategies that many people consider the easiest is DCA because the concept behind DCA is quite simple but very effective if done consistently and regularly. And the advantage of the DCA strategy is that it eliminates stress and panic about fluctuations.
And by periodically investing a certain amount of money within our means, we profit by buying more Bitcoin or a coin we trust when the price is low and less when the price is high. And as time goes by there is potential for profit as the market moves and if it is Bitcoin then it is guaranteed that in the long term the price will continue to rise, and will increase profits. However, all of this must be supported by a fixed income or existing salary so that all interests can be met. And Hodl is only intended for large investors by buying at a very cheap price and reselling it at a very high price over a long period of time, up to years, to get very large profits.

Yes, one of the main concentrations in this thread is about holding our investment for long term. It's cool to think about long term what i feel should be more focused on should be accumulation. If we stop to accumulate bitcoin now not everyone will be proud of what will be the outcome of their investment if they hold it for at least 5 years. The reason is that some persons have not been able to accumulate substantial amount of bitcoin before thinking about holding it for long. I feel there should be a specific amount and upward that is enough for an investor to really depend on the long-term benefit of bitcoin. Every investor should have what i call a comfort level of accumulation that is required to make their long-term goal come true. For some having one bitcoin is enough while some having some fractions is satisfactory. However, i feel it depends on the financial desire of each investor. My financial vision might be totally different from another investor.

Yeah I agree with you Sir because I realized that most of the investors doesn't even have the intention to hold for a long term but instead they are more focus on the possible way to make some profits instead of focusing on Bitcoin holding because just like you mentioned there is no way they can compare the little profit they will make through trading to what Bitcoin will give them in the future because with the potential of Bitcoin the only way for people to see what Bitcoin is truly worth is by holding it for a very long term and however it will be very wise for them to change there narrative and start planning for holding instead of there flipping practice they are mistaken for investment.

It's obvious you are emphasizing too much on waiting for a dip before starting to accumulate but I put it to you that if you have that mindset of always waiting for a dip then you might keep waiting and may end up not accumulating again because you will feel that the price has gotten to a level where you can't afford it and you will still be feeling that you might buy and afterwards it starts dipping so in a nutshell, there is no perfect time to wait for a dip before starting to acquire bitcoins and people who actually expect a dip before they can start buying are the short term investors that all they want is to buy at a dip price and immediately the price increases they sell off their coin. These set of investors are more or less impatient and interested in short term profits rather than making long term investments that would be more profitable and risk free and gives more comfortability to ones assets.

And of course, guys can do whatever they like, yet if we are talking about various accumulation strategies in this thread, it can be a bit irritating when we see guys talking about strategies that seem to gravitate towards trading or even selling to accumulate more BTC, but then at the same time, they do not present the idea very well, and surely it seem to be off topic since even the topic of the thread does not say anything about selling and the idea of HODL in the context of this thread largely is suggesting the opposite... don't sell.  So then there is nothing wrong with having different opinions, even though the concept of trading or selling to accumulate seems to be off topic.. at least for guys who may admit that they are in the earliest of stages of their BTC accumulation journey..

so sometimes we do likely have to try to figure out whether guys really have long term intentions or if they are merely engaged in some kind of flipping practice or pursuing dollars, which seems to then result in trading rather than investing, even though there still might be profits involved, but not the kinds of profits that would come from both longer term holding or investing over a long period of time, and then the earliest purchased bitcoins will likely have higher levels of profits than the more recent purchased coins, yet it also seems that the longer and longer that we stay invested then we will be building and building the size of our BTC stash and the longer that we are in, then probably the more likely that we are going to have older coins that have gone up a lot in value.. perhaps both exponentially and having several compounding events.. and at least those are goals, even though they surely are not guaranteed and even along our bitcoin journey we are also likely going to experience a lot of volatility along the way and have strategies in place to deal with the likely to be near inevitable volatility without panicking.

Yeah truly his statement was actually contradicting because I find it very hard to understand the method of investment he was trying to state because he seem to have been missing so many things together because I don't really understand his concept of classifying holding and trading to be the same thing because is obviously not, however just like you mentioned if he was talking about ways to start accumulation of Bitcoin perhaps he should have go through most of the previous post because you have stated on how to accumulate Bitcoin through DCA strategy and Lump Sum.

This was my method of going about Bitcoin before I learnt about the DCA method. I had this pattern of putting most of my money in Bitcoins at once or within a short interval of time and to be honest, I do sell my Bitcoin when I have needs, most times I sell at lower prices than I bought. This did not really go well with me because it gave me a lot of bad feelings and low self esteem whenever I sell my Bitcoin and realise that prices has gone up few days from the day I sold.

If you noticed, I'm one of the most excited user of the DCA method. I'm forever grateful to @JayJuanGee for his input and guide in his posts and replies, it was a whole new learning experience for me.

The aspect of setting aside emergency funds was the game changer for me, it completely eliminated the pressure to sell my Bitcoin for simple things that small money could solve. This forum is about the best thing that has happened to me!

@makus you made a very good point here, extra income is a very good one because no matter how steadfast and strong you are in your decisions hard times can force you to change some certain decision of yours, though we shouldn't be extremely comfortable with funds before we can invest, at least we should have extra funds that can savage some situation when it comes, then we can go ahead to do the needful, bitcoin investment is not meant to be tampered within a short period of time, this investment has a long term benefit that's why it is advisable for a potential investment to have the long term investment mindset so that they can benefit from it, think bitcoin, think long-term, they way to achieve this, is by doing extra work that earns you money, this will help you to buy, hodl and forget.

I agree with you that you need to have an income source in order to continue to invest in bitcoin, but you might not need to have an income source to start investing in bitcoin, but if you are depleting some kind of funds that you have in reserves or some other asset, you have to be able to realize that you are going to need to have an income source at some point in the event that you are depleting funds, including that you should not be touching emergency funds if you have a way of resolving the matter, and you likely should not be using emergency funds to invest into anything, including bitcoin, unless you have some decently strong confidence that you are going to be able to replenish those funds in a fairly soon timeframe.

@moreno you are in fact in the right direction as both holding and DCA holds shares same similarities. Holding has to do with when an investor buys bitcoin and decides to hold on to it for a long period irrespective of price fluctuations while DCAing patterns to a regular investment of a particular amount of money (fixed) for a period of time , still irrespective of the fluctuations of bitcoin price. The two strategies are directed towards investment for a ROI after a predetermined period of time, so I don't understand why  @hewlet is seriously confusing the two in this discussion.

you can just simply use the term emergency fund to describe having a separate fund reserved for any emergency. it is always advised that we should invest and reserve some that we'll be using before our next salary comes up. failure to do so will result in selling your coin after investment. and that is why we must have an emergency fund so that, in case we get too aggressive along the way due to buying the dip.... we'll have spare cash to settle our other monetary activities. it is always important we make calculations and plan carefully before using any strategy of our choice. for example, when buying the dip, we should make sure not to get too tempted to accumulate above our preplanned so we won't be obstructing any other financial activity   


though I have seen some persons who hold without having a good source of income. They operate on discipline because of the trust they've built in Bitcoin but that won't last, when hard times strike he'll be forced to sell his coins. having a good source of income is the first stage to fuel the idea of planning before engaging in bitcoin holding, aside that all trials would be a failure.