Topic: Buy the DIP, and HODL! - page 317. (Read 123703 times)

For me I really don't think an investor can be able to buy a fixed quantity of Bitcoin within a stipulated time interval reason being that the price of Bitcoin might keep soaring higher thereby he can't afford buying same quantity of Bitcoin as the previous one he bought while the price was lesser and moreover, just like your illustration about if a investor wants to achieve 1BTC on his 20th birthday and let's assume that the birthday would be in three years time and his DCA every week is like $1000 and from his speculation of the price of Bitcoin in that three years is like $150,000 and let's say in that 3 years the price of Bitcoin now reached $200,000 so definitely his DCA in that three years will amount $156,000 so you can see that he didn't meet up his targets of owning that 1 BTC on his birthday after his speculation 3 years back.

However, any good Bitcoin investor should just keep accumulating bitcoin rather than making speculations and also make sure that they have a steady income that will aid their DCA and also make sure they have alternatives to their source of income so that they won't miss out the DCA, only then can they record huge amount of Bitcoins in their portfolios and make reasonable profits out from it.

Okay, I would completely agree on this, applying DCA doesn't account for a huge investment it works in fraction according to availability of funds. But, i used the term little stressful base on the effect of consistently purchasing Bitcoin at regular interval not how much or the amount to be used to accumulate Bitcoin. Investing base on DCA should always be such convenient in a way it won't affect our daily living, like you said emergency funds should have been planned already.

Lump sum investment strategy does not look at the current price if it's at the DIP or Bull, all that matters is getting a better portion of Bitcoin. A person who buys a lump sum when the price is at the bull practically tends to do more of a long term holding than a person who buys at the DIP. People who invested when the price of Bitcoin was at $16k are basically prone to sell when Bitcoin reaches a new ATH, but those who DCA will find it very difficult to sell so soon. This implies certain terms that may not just be personal reasons for holding but in order to maximize one's profit the strategy used in accumulating is also a factor to determine how long of holding.

All these you listed are certainly the disadvantages of trying to apply the DIP method but we should also reconsider it comes as well with advantages when it is properly and effectively implemented. This strategy is not to be practiced by Newbies and early beginners.

I disagree with you that DCA is stressful than the other two methods of accumulating bitcoin. DCA is the easiest of them, because it allows you buy bitcoin with low amount regularly, all you need is to be discipline, so that you can be consistent and persistent in accumulating, and growing you bitcoin portfolio. As long as you have sorted out the amount that you can use to buy weekly or monthly from you income, that wouldn't mount pressure on you, then you will invest in a comfortable way with rest of mind. It is when you fail to keep your emergency funds, reserve funds if possible, and the funds for your monthly expenses that it will become a stress, or when you over buy aggressively, without considering, if your emergency funds is big enough to withstand whatever emergency that occur. If you are use to saving money, then DCA accumulation strategy will be fun to you.

All the three strategy serves the same purpose, which is to hodli for long, so that you can benefit from the compounding profit of your investment and also lower the risk attached to bitcoin investment. It depends on the investor and the number of years that he plans hodling his investment maybe 4-10yrs and above. Lump sum is good if you have the money to lump sum, as long as you are still buying regular with DCA method weekly or monthly.

This is the most stressful of all and the most dangerous of all, for a newbie. This is because
1. Timing the dip id very difficult, and one might end up missing out when the dip comes, because he wants the price to be dipper than that. and night not know that is the bottom line of the dip.
2. During when you are holding your cash waiting for the dip, an unforeseen circumstance might occur that will make you spend that money or part of that money because you believe that you will be able make it up before the dip arrives, and the dip comes like a thief in the night.
3. Your cash will depreciate as you are waiting. However, buying at the dip is the best time to buy if you have the money to lump sum, when the market dips.


You can lump sum at the dip, because that is when you will get the highest profit, which is why many investors are buying large amount of bitcoin during the dip, and it shows from your statement that I quoted.

Technically, the DCA method may not be an automatic system but in reality it is supposed to be approached as automatic system if you have to be effective in it's implementation. In other words, effective DCA should be that you buy the planned amount of Bitcoin at the appointed time irrespective of the price or anything, this is somewhat automatic even though you may not be using bot or automated systems to achieve it. So, until the terms of the DCA is adjusted like increasing the DCA amount or shifting from monthly to weekly or bi-weekly, the DCA implementation should take an automatic approach.

Even though I'm struggling to understand what you are saying, I think what you are doing is not DCA instead you are trading... buying low to sell high. Besides, how do you know with  certainty the peaks that you have to liquidate your assets? This method you posted may sound very convincing for your fellow traders and not long term investors. Like @JayJuanGee replied someone, you don't have to call trading investment.

In the past history I m very much inspire about bitcoin price again same reason some of fear work in my head.

When I see the pattern:

In late 2015 it was:  $252
In late 2017 it was:  $1,049
In late 2019 it was:  $4,908
In late 2021 it was:  $17,839
In late 2023 it was:  $29,049

How I can control myself. I ask myself how this is possible. Finally I came to a conclusion that this was possible only through involvement of many people and workable element is  'buy the dip and hold'.

We call them the waiting camp in this thread. They should keep waiting, perhaps they might get lucky. But who knows when? Maybe never. The wise ones will adjust to the current reality but the other has vowed to keep waiting and I wish them happy waiting.

The pre halving dump is already happening as we speak. Are you not seeing the signs already or do you think otherwise? You know each year comes with different pre halving pattern. Halving is happening in April and Btc dipped from $48k to $39k and still hasn't gone back to the 48k or above it. This might be the dump you are waiting for. If you have the cash available, why not go in and fully get set. You might be waiting for something that is already happening without knowing. Act swiftly before you become part of those in the waiting camp without knowing.

I don't really fancy this your selling of your Bitcoin idea at the peak, because if you are truly a long term investor, you will definitely know that $50000 or $55,000 is way below the actual potential of Bitcoin, and secondly, as an investors that have decided to buy Bitcoin through the DCA method, you won't be actually bothered by the current price or market sentiment because you are only thinking long term, so what is important now to me is to accumulate more Bitcoin as much as possible, and what should be your primary concern is what would be a barrier to you not holding firmly even in the face of challenges, that's why you need to think out of the box by putting down measure that would make you hold firmly, like having an emergency fund and another source of income, but this your selling off your Bitcoin at the peak is a complete no to me, because I only think long term as a Bitcoin holder

i doubt that buying using DCA method is an automated system that auto buys the Bitcoin on a fixed week, month or year regardless of the rise in the price of bitcoin. Even if I'm using the DCA method to buying my bitcoin and after the first purchase I notice an increase and then another increase that Is way higher that the first price I bought my first Bitcoin, from a personal point of view, I would rather sell my holdings at the peak of the price rather than buying at that price. Their are range of price that if you buy at such price, you are very certain to have a loss or to hold your bitcoin for a very long time if you want to gain anything you of your investment. So using the DCA method doesn't mean that you should close your eyes to the reality that their are certain price that bitcoin will climb to that you should be considering more of selling your holdings rather than buying or accumulating more bitcoin regardless of whether that was the time you set out for the purchase of your bitcoin.

One thing you should also understand is that the whole essence of investing into bitcoin is firstly to make profit and maybe in some context we might talk about saving your funds in a secured place that you're sure is void of government policies that will negatively affect and so the strategies you are going to use in accumulating your bitcoin and how you go about using the strategy is basically going to be centred around making profit at the end of the day.

DCA is perfect but a little more stressful than any other strategy, with the consistent purchasing of Bitcoin at designated periods of time. DCAing Is very much profitable not just alone base on a crafted illustration than using the lump sum method.

Sometimes we misinterpret the lump sum method and the term Buy the DIP and Hold. Lump sum pattern deals with accumulation of Bitcoin for future profits, basically a higher long term holding than any other strategy and without undermining the purchasing price because it is certain for the price to keep appreciating due to increase in demand over the approaching years. Meanwhile buying the DIP means holding funds and always monitoring the market till when the price drops far below the last ATH, just like when the price of Bitcoin dropped to $20k most investors who had enough money took the perfect opportunity and bought at that price, we can see even now they are actually on profits but considering we are expecting a new time high very soon it will be ridiculous to sell now instead we should aspire to continue holding.

According to your illustration, lumps sum involves a one time huge purchase, so considering if the price begins to DIP he is left with no funds to continue purchasing unlike when doing DCAing. If Mr A is DCAing and instead of price depreciating it keeps appreciating then the investor should be aware of a longer time holding but with no certainty the market often goes both ways, an uptrend and downtrend always creating the most perfect entry price.

We do not know.

You cannot presume that there is going to be another dump before the halvening, even though there could be.

You also cannot presume that there is going to be dump right after the halvening, even though there could be.

So whatever you need to try to be reasonable and measured with whatever quantity of fiat that you are holding back in order that you do not necessarily have regrets if the BTC price goes up and fails to dump as much and/or during times that you anticipate that it might dump.

Sometimes if guys hold back too much fiat, and then if the BTC price goes shooting up, they end up FOMOing in, even though they would have had been better to be regularly buying with some of the excess of the fiat that they had building up.


There are differences between older and younger folks, and we can presume that younger folks (let's say teens or early 20s) might not have had a whole hell of a lot of time to invest, even though there are exceptions in terms of some young folks start to earn and save money from the time that they start to work, and that might even be when they are barely teenagers, maybe from 12 years old to 19 years old they still might be living with their family, so they may or may not have to contribute to the family expenses with their income which could provide opportunities to save/invest).

And so then there is age in regards to how long a person may have had to invest, and the other part is how high the pay potential could be when earning an income in western locations versus some of the more poverty stricken places it might be a lot more difficult to scrape up enough income to thereby be able to save/invest.

By the time a person starts to work a regular job and maybe have to pay for his own living expenses, if he is earning $20k to $30k per year, then maybe we could presume $2k to $3k invested each year, so anyone investing/saving for just a few years could invest up to $6k, and then if there is appreciation on their investment, then they would have their appreciation, too.

I frequently like to use the idea of 10% per year, even though some times there can also be periods in which someone could invest more than 10% per year, and so then if 10% per year leads to 10 years in order to have 1 year of his income/expenses invested, then if we go up to 20% or 30% or even more (including cutting back on expenses), then we can get up to 1 years income in a lot shorter time, and if we are learning to live off of lower expenses, then we also know that we are able to support ourselves on lower income levels too,... if it ever comes time to measure how much we are going to need to live.. even though maybe some folks if they are expecting to reach fuck you status (which is 20-30 years of income), then in those cases, some of these guys might be wanting to increase their standard of income, which would likely mean that they need more cushion... and personally I also believe that just having bitcoin in your holdings is likely to give you a lot more cushion than any of the traditional asset classes... so there are extra advantages in terms of having bitcoin whether it is all of your investment portfolio or just part of the various components of your whole investment portfolio.

Now I know that there are a lot of guys talking about being able to live off of just a few hundred a month, and I am not sure if those are very realistic numbers for most guys, so we should likely be shooting to talk about a guy that at least has $1k to $2k worth of expenses, and even a guy with that level of expenses, if he has ONLY $6k saved, then that is ONLY 3-6 months of his expenses, so if you are saying that a guy coming to bitcoin with $6k is a lot, I am not sure if I buy that in terms of being considered a lot, if we are speaking generally even about poor people. so of course, anyone can round down numbers if they believe that rounding down would be more applicable to their situation.

Let me concede one other part, and that is that whether people are rich or poor, there are a lot of people who do not even invest/save 10% of their income, so those people are likely never really going to get ahead, and there are so many people in western locations that either ONLY have their house as their ONLY investment asset (and a house is surely not very liquid) and/or they may have something like a 401k, but it seems that less than half of those westerners who have access to a 401k are actually investing into it.. so that can be a bit problematic when it comes to how they are saving and if they are saving it is most likely in a house and in a 401k.. so then in that sense I can concede that there are going to even be a lot of westerners that cannot even scrounge together $6k because they have been employing poor practices in which they are not sufficiently/adequately saving and investing even prior to learning about bitcoin.

By the way, even if someone comes to bitcoin with an already existing $100k investment portfolio, I personally would not necessarily recommend cashing out of any preexisting investments, unless it seems logical to do so, like there is some kind of excuse to transition out of one investment and into another.. otherwise, even if the goal might be to get the BTC portion up to 10%, then it could take a year or two just to get the bitcoin portion up to 10% (which would be around 10% in this example).

With the US SEC approval of the BTC spot ETF, it is probably quite a bit less controversial regarding bitcoin's investment thesis, and maybe even anywhere within my 1% to 25% recommended area might be acceptable.. and not so controversial.. so maybe I should adjust it to 5% to 25% .. just to go with the times... yep.. that's what I am going to do.. any newbies to bitcoin, better get the fuck off zero, and consider 5% to 25% allocation in bitcoin.. it should not be that controversial.


Maybe we can all feel bad that this thread is focusing so much on accumulation of BTC through DCA and regularly buying of BTC, and really buying the dip and HODL seem to be taking an inferior position.. . .and so be it.. we should be putting buy  the dip and HODL within its context in which it is ONLY part of an accumulation strategy, including that many of us have concluded that buy the dip and HODL is likely more of a luxury for those BTC HODLers who have already accumulated a decent amount of BTC - since if you have not already accumulated a decent amount of BTC, then you really are not in a position to either buy the dip or to HODL... especially since a pure buy the dip strategy is a waiting strategy in which you are not really prepared for UP. .and I think no matter the BTC price, it is better to be prepared for UP rather than not being prepared for UP...and the only way to prepare for UP is to buy BTC.


It is likely bad advice, and perhaps bordering on retarded to go to a investment professional about BTC, since they would likely either try to talk you out of it, talk you into some whimpy position, talk you into their various products that relate to bitcoin exposure but probably do not result in actually owning real BTC.

Actually, am not ok with the statement because going into investment without having adequate knowledge  is like starting a journey without a direction and can also be liking to  someone that intend to start a business without   business ideas. As a new investor I think  having adequate and the right  knowledge  before you invest is a wise approach.
Waiting to go to the market and learn everything yourself is like a woman that is trying to go to the market to buy different items  without making list of things to buy in order of their importance and check  if her  money  is enough to buy everything in the list which may lead to mistake and not being organized. An investor that has the adequate knowledge before investing will be more organized and confidence compared to someone without adequate knowledge.

IMO your right about DCA beign the best strategy for accumulating bitcoin, but for you to stay it is clearly more profitable than lump sum or any other strategy in terms of accumulation might not be totally right, cause I also believe that other strategies if we'll practiced can give good results too, just that DCA has better advantages for beginners than others.

In terms of DCA you might end up buying bitcoin for a higher price if the price continues to soar as you buy and accumulating less than someone who buys only on dips or lump sum, I'm not saying that any strategy is better than another here.

Lest assume this senerio that, Mr A uses DCA uses DCA to accumulate bitcoin as his only strategy and he has an income of 2500$ and decides to allocate 10% to buying bitcoin weekly, so he buys at the first week at a price of 45,000$ and second week at 50,000, third week at 55,000$ and finally at 50,00$, he ends up buying at an average price of 50,000$ and accumulates a total of 0.05 bitcoin for his first month for an uptrend market.

Let say the same allocation with an down trend market of 49,000$, 45,000$, 40,000$ and 39,000$ price at each buying interval, he ends up accumulating a total 0.0578 bitcoin at an average price of 43,250.

What I'm saying is that the DCA strategy does not always favour you in all market trends, but you have to worry less about fluctuations and market volatility since you are buying for the long term hold.

I don't know if the DCA method can be calculated in terms of the Bitcoin quantity because what I do know is that it is based on dollar amount that is why it is called dollar-cost averaging. If an investor decides to buy a fixed quantity of Bitcoin per time irrespective of price fluctuations, that is possible and achievable as it may be that he would have set a target to achieve in terms of Bitcoin quantity. For instance, someone can set a target of owning 1BTC before his 20th birthday and may decide to be accumulating 0.01BTC weekly or monthly as the case may be. As expected, he would have made adequate financial preparations for this, bearing in mind that while following his plans he will also pay his bills and also set up some reserve funds. I do not see anything wrong with setting such personal targets neither does it mean that he would not have factored in price fluctuations in his planning.

I look forward to seeing what others will have to say about such plans, if it qualifies as DCA or something similar to it. I'm with my pen and my note, time to learn something new.

You are talking about trading and not investment. When you are investing in a long term investment, you can only learn how to buy and transfer bitcoin from the exchange and transfer to your self custody wallet. This is why you are to go into a long term investment to lower the risk attached to the volatile nature of bitcoin. At the same time you can be investing and also learn more on bitcoin based on your area of interest.

This is why the DCA method is more recommendable for beginners because they can start with little amount for the first one year and when they have learnt more and understand how bitcoin works, they can increase the amount that they were using for their regular DCA. You keep on learning about bitcoin even though you are an old G because there are always new development time to time for proper security of the network. So as long as you own a bitcoin investment learning is a continuous process. This why newbies don't need to learn much but get started as soon as they are can.

I don't see taking advice from an investment professional as a good step toward accumulating your bitcoin because you can be misled. What if the investment professional told you it is only whales that can accumulate bitcoin because of how difficult it is to own a bitcoin and the investment professional can teach you a strategy that will not be favorable for you to accumulate your bitcoin? For me, there is no need to meet an investment professional before starting your bitcoin accumulation journey. If you have bitcoin knowledge and know how to buy bitcoin from the Cex exchange and withdraw it to your noncustodial wallet, I think you are good to accumulate your bitcoin with the DCA strategy whenever you want to accumulate it and hold it for the long term.

Yeah you are right sir, I really don't no were he got the idea from because he is totally missing up holding and trading together, I wonder the kind of strategy he normally use for accumulation of Bitcoin because he would not sound this way if truly he is accumulating through DCA for a long time holding because there is every chance that if he doesn't change his investment strategy he may likely get into trouble on his investment. Perhaps this is the right time he changes his narrative on investment because investment doesn't work the way he sees it be, however just like you mentioned the reason of this thread is not for trading so is best we focus on the reason of this thread which is the best ways of buying the dip and hold.

I've gotten two different pieces of advice about risky financial ideas especially regarding friends and family:

• No one really wants you to succeed, don't discuss big ideas with them and don't tell them your big financial plans.
• Family is everything, but when making risky decisions, it is best not to involve family, especially regarding ideas that may not be in line with one's desires and knowledge.

From these two pieces of advice I can learn that there are things we cannot talk about with friends and family. Not everyone likes and supports our big plan, conflicts of interest, lack of knowledge and several other things might make us fail with this big plan. I certainly experienced it myself and this is really real, in fact so far my long-term investment plans in bitcoin do not involve my family at all even though I have to tell them that I have valuable assets.

You may have noticed that most of the bitcointalk users who use paid signatures are not those who have a large budget to invest in any asset including bitcoin in the early days. They come for various reasons, and the most stated reason is because they want to make money with it. This is why it is possible for some of them to start with a small budget and grow big over time while enriching their knowledge and developing strategies on investments.

Unless, they are people with big budgets who already had money in their bank accounts or any asset before they got to know bitcoin. They can start with a large budget ($6000 I think is quite large) and just need to learn how to practice good investment strategies. The ideas and advice are certainly no different, if it is a long term investment, then buy dip and dca remains good advice to consider, whoever they are.

So how those people been waiting for that 34k-35k dip or even into those 20k below bear boys out here? Seems like that 42k is the floor now.  

Well, we do still have that pre-halving dump, we cant really just that be able to know on when it would happen but it seems that we are in between within these months.
It is really just that hard to point out on when. For those who do able to accumulate or able to buy on 38k then we are profiting as of this moment.
Honestly, im waiting for that last dump before halving happens or even with that post-halving dump too.

My cash is ready for having that DCA but well, we dont know if it would really be just that the same pattern that do happen trying to reflect
out on what happened into those previous runs.

Because of how big the crypto market is, and the way it is built, you need the basic knowledge of it to succeed because nobody learns everything by themselves as a newbie without the directions of others. And not every new investor in crypto knows that if they hodl bitcoin for long, they will be at profits, by using a DCA method. Therefore, some new investors had sold their bitcoin holdings out of fear because the bitcoin they tend to hodl for a long, decline in price. Making them to be at a loss price without even knowing there is a chance for them to be a profit back, just a matter of time.

I agree with you that buying a fixed amount of bitcoin will ruin his bitcoin accumulation plan because if he sticks with buying a fixed amount of bitcoin weekly or monthly, he will end up not making a provision for emergency funds. For instance, If he bought his first bitcoin of 0.003 BTC at $42700 and wants to buy another bitcoin with a fixed amount of 0.003 BTC and the bitcoin price is at $50k, he will have to pay more money to accumulate the 0.003 BTC, which will make him use most of his weekly or monthly salary to accumulate the fixed amount of bitcoin, and he will depend on his bitcoin investment to settle his financial needs because the strategy he adopted to accumulate bitcoin did not allow him to keep an emergence fund. I see this as gambling because he might miss out on owning a bitcoin.