Topic: Buy the DIP, and HODL! - page 318. (Read 123703 times)

And there is no reason that any of the newbies could not do both.. ..

so if you are a newbie, buy regularly and often, but you can also have some fiat that is available for buying on dips, if such dips end up happening.

But just looking for a dip without already buying and preparing for UP, is not being prepared.. because there should be nothing valid in preparing for only one direction (down) and not the other (up).


You (Hewlet) are bordering upon giving exactly the opposite of what would be correct advice.  DCA takes less knowledge than buying the dip, and trying to figure out what is a dip is way more difficult.. especially for a bitcoin newbie.. .and maybe we should not even assume that newbies are lacking knowledge of the world, personal finances, markets, but still their level of knowledge is going to likely vary, even sometimes based on their personality..

Surely, we could come into DCA with absolutely no knowledge, except knowledge about whether we have an extra $10 per week that we are able to use to buy bitcoin.

Yeah, of course, we should try to figure out from where we are going to buy our BTC, and the more that we know about our own particular finances and psychology, the better we can tailor how much BTC (or maybe better said, how much of our fiat we are going to want to use to buy BTC) we are going to want to buy and when.

So one of the problems with buying the dip, especially for newbies, is trying to figure out how much of a dip is enough, yet at the said time, it has potential to cause way too much waiting and not enough action, especially faulting in regards to being prepared for up.. so if you are waiting for a dip and trying to figure it out, you are ONLY preparing for down, you are neither preparing for up and by definition you are not prepared for up... so you likely are being more greedy (and calculating) than you need to be, especially when it comes to an asset like bitcoin.

Regarding knowledge, I personally am not saying that anyone should purposefully be trying to avoid having knowledge of bitcoin, but instead, you start with whatever knowledge you have and you work on building it along the way, yet more importantly, you are likely going to be able to pay attention more after you have bought a little bit and also got started with investing into bitcoin, even if it is a very small amount, you have at least had to go through some process of figuring out how you are going to source your first purchase.    


Again.. you are emphasizing "the right time to buy" which is truly dumb... how is anyone going to know?  Experienced traders frequently don't know these matters, and part of the reason that some of us emphasize to buy right away no matter what is the price, especially for your first purchase.. and it likely does not even need to be very much.. .. and yeah, maybe after you spend a bit of time buying, then at a certain point, you might have spent so much buying and the BTC price is moving against you or dipping at various points, so then maybe at some later point you might start to consider various ways to structure your budget to buy certain amounts at various dip amounts, while at the same time realizing that the BTC price may or may not dip further, so there will be some need to account for those kinds of considerations, and for the newbie, the main thing is getting some bitcoin rather than figuring out what might be the best (or better) price to get it.

Think about it.  Action is more important than thinking about it, and waiting is not really a very tangible form of action, even if you might be able to later get some bragging rights about having bought your bitcoin cheaper than the person who just jumped right in.. however, it may also be the case that the person who jumped right into bitcoin ends up being way more persistent through years and years of buying BTC, and in the end the person who was more persistent about buying BTC may well end up being in a much better financial and psychological position as compared to the person who spent a lot of time waiting around.


There is nothing wrong with ongoingly learning about bitcoin, yet it can be difficult to know how much is enough too.. because there is so much to learn about bitcoin, and learning could end up being a full time occupation (or hobby).


Likely your security needs to be in line with the size of your holdings (and maybe 10x better, just to prepare for possible price rises), so we can consider that any coins that we are holding could appreciate rapidly in price, but still if we are ONLY buying $10 per week, it is going to take us a whole year to have had boughten $520 worth of bitcoin, so we might not be in a position to really buttress our security if our stash is not really very large.  

Security is changing too, so we likely could learn more and more advanced security techniques the longer that we are in bitcoin and in the event that our bitcoin holdings are growing too.. and frequently there is a balance too, since some guys had created sophisticated (or should I say complicated) ways of holding their BTC, and then sometimes later down the road, they end up losing their coins because they made their security set up overly complicated and so then they end up losing one part or not knowing what they are doing and then losing some of their coins due to some of their set up choices.


The forum is interactive, and there are some threads that are better than others, but even threads and users are changing on a regular basis.. and so in the end, we surely should be attempting to learn as we go, and maybe even we end up sharing our knowledge and/or learning from our various interactions on the forum and through various sources that we discover on our own or that we might find through this forum.


You may have come across a decently good way of framing the matter @Barikui1, which is not very much knowledge is needed to invest into bitcoin or to get started investing in bitcoin, but more and more knowledge is going to be needed if you either want to continue to hold your bitcoin investment or to attempt to be aggressive in regards to increasing the size of your bitcoin investment and/or creating strategies to maintain (reasonably going from accumulation stage to maintenance stage to liquidation stage) your BTC investment.


None of what you are saying is true, and perhaps even moreso for an investor rather than a trader.. gosh, I am not even sure if what you are saying is true for a trader.. but really who cares, I think that in this thread we are mostly focusing on ideas of investing, which means longer term ideas of bitcoin  and perhaps even building our knowledge along the way..

Surely hardly anyone knows the nitty-gritty of bitcoin, and you don't need to know the nitty-gritty prior to investing into bitcoin.

Also, prior to investing into bitcoin, you don't need to know about what points to sell bitcoin... so maybe you have some general ideas of your goals and/or you might consider your timeline to be 4-10 years or longer, and also you might want to make sure that you have one or two ways to exit your investment if you have to (even though you do not plan to, but having a way to exit is likely important to maintain, even if you are not likely to exercise such option).


Stop losses relate to trading, and not to investing.  So you are talking about trading ideas but you are framing it in  investing terms.. so you are mixing up language and likely confusing people.

Fuck stop losses.  

if you are mostly longing bitcoin, you don't need any stop losses... especially since you should be ready, willing and able to ride your investment down to zero.. and yeah, hopefully we are not going down to zero, but still the size of your investment should reflect in terms that you realize that the investment could go to zero and you are not selling.. and if anything there are likely various points that you would buy more.. which truly is dangerous if the investment really did end up going to zero.

A lot of people get screwed when the put in stop-losses, especially there are BIGGER traders who sometimes will be hunting the stop losses, so your stop loss gets triggered and then the BTC price reverses, and then you are fucked.  You had an investment into one of the best, if not the best asset in existence, and you fucked it up and lost it by screwing around with stop losses.


This last part does not sound incorrect, but I lost confidence in you when you have already shown that you do not know the difference between trading and investing... and we are not talking about trading in this thread, so it does not help if you come here and you talk about trading but you call it investing.. you are just contributing to more confusion than necessary...even if you might not have bad trading ideas, we are not talking about trading in this thread... and don't even continue to argue (like you already have) that stop losses need to be used in investing.. .because they don't.

I'm finding it hard to understand your points because it seems you are mistaken buying and holding for trading because is only traders that uses the concept you are talking about because actually I don't see the need why an investor whom intend to buy and hold should be concerned on selling there investment if the Bitcoin price is up, so perhaps if your intention is for holding you shouldn't be monitoring the Bitcoin price direction but instead you should always focus on accumulating Bitcoin because that's the only way you could be free from emotional trauma of possibly losing your investment for trading because of greed

Building an investment portfolio with the DCA strategy sounds easy and very easy to understand. You only need to have a budget and set aside some for DCA, then you can buy at any price (real time price) without hesitation. However, in practice, not everyone has the same courage to act. Look at how many of them don't dare to buy when Bitcoin experiences a correction, they seem afraid that the price will fall even further, causing them to suffer losses.

Maybe, they don't understand the strategy and understand how the strategy works. Accumulating assets with the DCA strategy is a better way based on my personal experience, it is clearly profitable because it is likely that the amount of assets you accumulate will be more than a lump sum. For long-term goals, an accumulation strategy with DCA is the recommended one. Not only for bitcoin, even if you want to invest in real assets (for example gold) this strategy also works.

Talking about the uptrend or the downtrend of the crypto market or what we call the Bull and bear season of bitcoin generally. So what I would advise anyone out there especially the newbie investors on this platform to understand what it means to invest in Bitcoin.

Whether you're starting up with a small amount of capital or you have huge amount of money (i.e your life savings) to invest in Bitcoin. It is key critical for you to understand the nitty-gritty of Bitcoin and to know at what point in time you should invest and at what point you should withdraw is very vital.


As an investor you need to learn the stop loss habit to learn how to stop an investment when there is an uptrend or downtrend in the market not just being over ambitious or greedy in the investment.

As an investor, It is all about knowledge and discipline when you are investing in any aspects of life whether it is Bitcoin or any other financial institution. Knowledge in the sense that you should understand what the Investment plans are and how you can benefit in the process whilst discipline is to learn when to take out the money that you invest in the business and when to leave it for it to grow.

IMO I don't think buying the dip should be the first thing a newbie should be learning, cause it does involve him or her having more knowledge about bitcoin to monitor the market and all that, and even apart from knowledge I Don't think he has developed the emotional intelligence incase the market continues to dip after he feels he has bought the right dip, and he ends up being in a state of panic and sells at a lower price than he bought, buying the dip is a good strategy to accumulate bitcoin, but for someone new to the market I think he has to start with something way simpler like the DCA method and if he is interested in dip buys, he can but after he has taken some time to understand the working if the chart and prepared himself in 3-6 months of emergency funds and reserves to back up himself in case the market continues to down trend after he has bought.

And you said we have to find out that right time to buy, I don't really think there is a right time to buy, cause we can predict the final dip, that's why we have to know that we should not invest all our money at a particular dip incase the market continues to dip, we can continue to buy, maybe until we are satisfied with the amount we have invested at that time.

The best way a newbie should start is buy using DCA method it helps reduce the tension from market fluctuations and volatility. Its also cost effective since with dip buys you might want to invest huge amounts to better take advantage of the dips or even lump sums, with DCA he can use a smaller amount to start investing first.

Yes that's right. Experience in controlling emotions and using the right psychology is very important in investment. Soundness of funds is also an important factor that makes an investment plan safe.
But we should never trade on call and tips because the risk it causes are out of control risk.

You don't need to have thousands of dollars before you can start bitcoin investment, that's why we have the DCA. Good a thing that bitcoin can be bought at any fraction, depending on the money available. Yes you are right about nobody knows when the price of bitcoin will be low. But that's why it's always advisable to make plans ahead of time, by keeping a certain percentage of your investment funds for buying the dip, should in case the dip happens, so you won't be caught off guard. When bitcoin is high we don't save money and wait for it to low before buying, we buy through DCA when you think that bitcoin price is high. This is why we have the DCA. Nobody knows when it will low. Saving the money is not advisable as you might miss out buying. When it's low buy the dip, when it's high buy with DCA.

Although it is easy to invest in bitcoins with the dollar cost method, not everyone can keep their investment for a long time.Whenever you start investing in your Bitcoins with the Dollar Cost Averaging method, you won't get the benefit if you don't hold it for a long time. The advantage of investing in Bitcoins with Dollar Cost Averaging method is that you can start with any amount you want and gradually increase it to become a large amount or a large amount of Bitcoins.

One thing is that no matter the method you invest in, you have to be very patient. Without patience, your investment will not be successful. Similarly, when investing in Dollar Cost Averaging method, we have to be patient and continue to invest for a long time so that we can achieve our desired results.

I disagree to what you said that you don't need much knowledge before you invest, how can you know the DIP  when you don't have the required knowledge? see you have to know that havng knowledge and having the right knowledge are two different thing, because buying might be easy but holding can be very difficult if you don't have the right knowledge on all that is required of you, so that you can weather the storm and hold without touching it even when you are seriously in need, In all we do in this life, knowledge is very important, because if you have the right knowledge, you will definitely know that you need another source of income and an emergency fund that would sustain you, not to touch your Bitcoin holdings.

Hello mate, seems your new here, firstly  DCA is not a method of holding but rather its a method of accumulating bitcoin. Let me explain what the DCA is,  it is a method that involves a consistent investment of a fixed amount of money into bitcoin at a regular interval despite the price of the asset. This method is good for newbies because it reduces the impact of market volatility and fluctuations on our portfolio.

And another reason why we prefer the dca method is cause its doesn't require much investment knowledge to start, so all you have to do is to plan the amount you are willing to allocate to buying bitcoin on a weekly or monthly basis and set your buys automatically or even manually, its so easy that even someone who is uneducated can use this strategy and still accumulate bitcoin, and you would be under any tension of having to watch you portfolio all the time, so as a newbie it's good since it eliminates pressure that comes with volatility.

There is not fixed allocation you can give to bitcoin, it all depends on you and which you feel comfortable doing based on your income, let's say you are earning 300$ every week and you decide to allocate only 10% of your income into bitcoin, that means every week you would be buying 30$ worth of bitcoin, and for a whole month you would be buying 120$ worth of bitcoin, you can chose to increase you allocation if you wish, but this I the basis if what DCA strategy is all about.

as someone that is new to the system, the first thing you should know is that you need to Buy the DIP. You might not necessarily understand how the DCA method works but after buying you can now work on best ways to accumulate more holding and that's where using the DCA method comes in.

And like you rightly pointed out, Buying of bitcoin doesn't require a complex knowledge, the most important thing you need to know before buying as a new person is the right time to buy. Once you know the right time to buy, then you've successfully launched yourself into an amazing Bitcoin journey.

With regards to getting knowledge a long your Bitcoin holding journey, it's necessary you know what's happening in the industry and follow up discussions to know when to expect a possible bull run which will guide you on selling at the right time. Knowledge related to your security is also something very important for a new person that has bunch of holdings because if your security is compromised, your holdings is in serious risk and all your accumulation could go overnight so the right thing to do is to get the basic knowledge on the right time to buy, then you buy the quantity that you're comfortable with and then ensure you put out the best security measures in place that will prevent your holdings from being taken from you.

The rest of the knowledge that you will need all available on the forum and by following and inquiring from discussions in the forum, you will do just fine as you climb the ladder of your Bitcoin investment journey.

I think you are getting it wrong that DCA strategy is not for holding because on the contrary is intertwined with buying and holding because is only those who intend to hold Bitcoin for a long time that intend using DCA strategy as there method of buying Bitcoin. However I agree with you on the aspect you mentioned that it may likely be very difficult buying the exact amount of Bitcoin on a weekly basis, yeah of a truth it could be challenging buying the same exact amount of Bitcoin every week considering the price movement of Bitcoin, perhaps let's take for example your last buy was when the price was at $40k  and maybe before your next buy the price gets to $46k however considering your weekly budget it will be very difficult getting the exact amount of Bitcoin of your last buy unless you have enough funds to be able to adjust your accumulation budget as the Bitcoin price increases.

In any field you want to get into for you to thrive as a newbie you have to brush yourself with as much knowledge as possible about such field before diving all in, especially in the basics of such field which bitcoin investment is not an exception. Before start you have to be knowledgeable about things like  the investment strategy of your interest, risk management, market sentiments/psychology and with an investment plan (mainly a long term duration holding plan).

It is best to learn (equip yourself) before going into the market, instead of hoping to learning everything or the most important things about the market while in the market.

Yes, you're correct DCA is a good investment strategy for mostly to the benefit of low income earners who can't afford to big bitcoin in large quantity within a short time if they can maximize it under a well constructed plan in relation to their weekly or monthly income flow by devoting a certain percentage they are comfortable with  for DCAing.

Some of us today that are enjoying the benefits of bitcoin today never bought it the day before yesterday but because of the knowledge we later grew about bitcoin that got us to cease from further procrastinating and started investing in BTC without minding or considering  the current price of that very time and today profits has been made from that decision of yesterday.

For it is same opportunity today as it were for those of us that bought and started investing from yesterday, and if they can stop from procrastinating further and start investing today not waiting for price to fall dipper before taking action to invest they will have themself to thank for taking action today.

What I think that makes some persons to continually procrastinate in their decision to invest in bitcoin is due to the lack of the right knowledge because just looking at the historical events of bitcoin price right from day one till date you can see from it that we're still in the right position to come into the market to invest. You can have the knowledge but if it's not the right knowledge you can't know how and when to make the right decisions. it's as simple as that.

Assume what !! newbie??  Apart from influencers(which we all know that they are no  noobs)  i don't think investors announces their investment  status, probably you mean  they bluff publicly to make people think they are newbie, no one cares if you are a newbie or not  they only care about what you have  to offer.

Yes they might miss a lot of chances because it's pretty hard to know when things will spike, instead, in Btc investors sees a down trend in market as an opportunity to buy more Btcs,as you can see from the title Buy the DIP  and HOLD , it means  buying the down trend and keep on holding.
However from your statement

it not necessary to bring enough fund  at ounce probably you mean accumulating enough funds into investing in Btc, if an investor wants to invest and he/she dosn't have enough funds, then he/she could try the DCA method of investing into Btc as it has  been said across this particular thread

notice: avoid pyramid post

Though I used the word full knowledge, I strongly know that what every bitcoiner need is just the little understanding about how to safeguard their bitcoin unless such person want to be a vendor or universally trader, sure you reminded me of something which is very paramount for a newbie in the system and that's is trading, am not trying to discourage anyone on this, newbies that has a good long term investment plan should beware of trading, I have heard people say am a good trader to me I see those word as fiction because in trading I don't think the market is mastered and this aspect is not good for a newbie, a newbie should concentrate of buy and make sure that his bitcoin with a good wallet as you said.

Then provably they would miss a lot of chances for continue waiting for certain things that didn't come on their side. Since they are doubting to buy then I guess they are not really ready face any consequences and maybe afraid to lose their money since that's everything they have. That's why its important to settle thing needed especially bring enough funds so there's no one can bother them for deciding to buy and they can execute their orders at any price they want and for sure with that they can see a more better result that doubting on current situation which provably can make them regret on not doing any action while the price of bitcoin is quiet reachable for them.

To many people do that so we can assume that they are newbie in the scene but once they learn on how to deal with any technicalities then for sure that there would be more potential profit especially if you or they are eager to learn a lot from bitcoin.

The problem is that many people are trying to be too smart with Bitcoin thereby complicating what is supposed to be an easy thing. I know it is in human nature to seek for better alternatives but when that which you want to be the better alternatives turn out to be too complicated than what you are modifying, wisdom demands that you recede and take a second look, perhaps you will see the right thing to do. Anyone that go through at least two pages of this thread will already see that the target here is the buy and hold for long time and not using some complex technical analysis for immediate profit. This is why the DCA method have been supported by majority of us as it removes the need to worry about the price.

From the response of Smelody, one can easily conclude that his approach is not different from scalping strategy which is deployed in day trading of forex and other asset classes. That is really at variance with the method required for long term hold of Bitcoin

The provision for emergency funds will readily take care of the urge for selling. Some investors fail to setup emergency funds and that is one sure of of accumulating pressure that can lead to quick sell. I have noticed that most people who display high zeal to sell are probably over invested in Bitcoin and will easily sell at the site of profit to avoid selling at loss when they are in dare need of cash for their needs.

Those who understand the important of emergency funds will make provisions for it because it is actually a way of protecting the main investement.

It took me few days to understand this method called dip and hold when I started new, I found out something special about the dip and hold method, even if it's considered to be one of the best strategy when buying bitcoin it also have something so special and I believe a lot of investors have benefited from this method, investors like students, workers, low income earners, newbies etc. I'm yet to benefit like other investors but to reap this benefit needs the sacrifice of patience.
For example investors who bought earlier when bitcoin started using this strategy "dip and hold" are very Lucky, this strategy talks about the price and when to buy but surprising anyone can buy using this method at anytime and hold, that's what makes it risky but with the mindset of a long term investment you'll definitely not regret. I believe investors who never made profit using this strategy earlier never wanted a long term investment but rather a short term investment. Let's be realistic no one can actually use this method for short term and no one should actually use this method if they're looking for quick profit cause this strategy doesn't work that way.

When discussing long-term investments, the name of Bitcoin will definitely come up and the DCA investment method is another important investment strategy for an investor to use for long-term investments. DCA investment strategy is now the most acceptable and most accurate investment strategy for investors. In this investment strategy, the investors can easily invest as well as hold the investment according to the specific plan as they wish. People from students to professionals are currently investing in DCA investment method.  

If an investor thinks that he has to manage money to invest and if he doesn't have enough then he will never invest. After making that investment, if he changes his mind and thinks that since there is no obstacle to invest later, when I have money later, I will invest again, but start investing with the amount of money I have now. The second thought the investor has is the correct one and that is the DCA investment method.  

Many people are stuck investing in other investment strategies simply because they don't have much money to invest. However, DCA investment method gives investors the opportunity to invest with a minimum amount of money. Due to this investment strategy, an investor is no longer waiting to manage his money but is investing and can continue investing as he wishes.

DCA investment method is very simple equation and a common investor can easily understand the investment equation in this method. This investment method mainly works on making price compromises. I have enough money to invest and I invested all the money together at a certain price my entire money invest in one step profit and loss but i will come depending on that price. But if I invest the same amount in several steps, even if the market goes down, the loss will not be much.  

For example, if I make a table like this, I list the price of Bitcoin from $38,000 to $45,000. Between $38,000 and $45,000, we invest five or six times, but we have to buy bitcoins at different prices each time.  
That is, in the first step of such an investment method, I may be able to purchase an investment of $38,000, in the second step, I may be investing in $42,000, and in the third step, I may be investing in $40,000. In this case, if the price falls below $38,000, there will not be much loss. Rather, when the market goes up, there will be a compromise between these steps, but then we will make a profit, and we see that the financial risk in this type of investment is very low. So all in all DCA investment method is always best for long term investment.

But if we just wait for opportunities without investing, it will be difficult to seize our opportunities like this. If we are a consistent investor, we can grab all kinds of opportunities in our field. I think those who wait too long don't get investment opportunities because they can't target when they will invest. They cannot set their target because if the price goes down then they expect the market to go down further and if they go down further they expect the market to go down further thus they do not become invested. However, if that investor is in regular investment, then when the market continues to go down relatively, he will be able to use the opportunities due to continuous investment.

You are actually correct about your analysis .Bitcoin should not be bought on a specific fraction, like saying you will be buying 0.000756BTC every week. because Btc price changes overtime because that same fraction of bitcoin might change in price maybe from 0.000756 of $32 to $37 next week, which your salary remain constant. your budget for emergency will be tampered by $5, making it difficult for you to achieve your goal.

For me I think CEX is more preferable to buy coin than Dex because of the transaction fee. Like now if you want to buy bitcoin, you buy on vex and send to Dex like a place of store and it will save you the cost.