Topic: Buy the DIP, and HODL! - page 331. (Read 108583 times)

I don't disagree with anything that you are saying Justbillywitt, but in your last couple of sentences, you are fighting with the hypothetical.

If we say that you have decided to spend 50% of your income in bitcoin, and you agree that your income is $200, then that would be $100.  So yeah, it is up to you if that is manageable or not based on your situation, and hopefully you have an emergency fund too.

If you add $40 to your income, then your income went to $240.  It did not stay at $200, so if you are still investing $100 into bitcoin then that would no longer be 50%, it would be 41.67%.  If you want to continue with 50%, then you would have to invest $120.. based on that exact example.. if you add a side income, then you have added to your income, and lowered your percentage into bitcoin, unless you also put 50% of that into bitcoin, and sure a lot of different variations are possible, but you should at least present your hypothetical properly and not claim to be investing 50% of your income into bitcoin when the facts that you describe show that amount to be 41.67% when we account for all of the actual income.


The more pure idea of lump sum has nothing to do with whether the BTC price is high or low, and part of the idea is that if you receive some kind of extra money or cashflow (or after you go through your finances, you realize that you have an extra $1,200 that you did not previously realize that you had available for bitcoin)... So right at that time, you decide what you are going to do with the extra money that you suddenly have.   

So you could do what Justbillywitt decided to do:

1)  $600 (50%) into buying right away (that is lump sum).  Lump is based on the price right now.. .. right at the time that we know that we have the money in our bank account or whereever it is that we know that we have it... and we do not know if the price might happen to be high or if the price might happen to be low.. we are going to decide are we buying now or not... .. if so then we are lump summing and if not we are putting it into a different category... which might might be buying on dip or DCA.

2) $360 - 30% into DCA.   Thus, choose your time period.. maybe over a few months or maybe over a few weeks.. or maybe even over 6 months, even though over 6 months would end up being a pretty small amount per week ($360/26 = $13.85 per week), but if it is merely adding to a DCA that you already have, then it might be a practical option to just add that additional amount on for the next 26 weeks.

3) $240 - 20% for buying on dips.  Again, if you already have a buying on dip system in place, you could just add the $240 at various points.  Let's say that you already have a system in place that starts from $37k, and buys $60 of BTC every time the BTC price drops $1k, and so maybe you decide that you are going to add the $240 into 6 parts onto existing buy amounts, or maybe you decide that you want to add 4 additional buy on dips at the bottom of the amount that you have already have set and if your buy orders only go down to $30, you decide to add 4 more buy orders of $60 each from $26k to $29k.  Yes.  I understand that right now buying on dips seems a bit crazy... but these may well be some of the trade offs that go to show that buying on dips is not always a good idea for beginners still establishing their stash, but it might work better for someone who already has a larger BTC stash level, relative to his goals.


The mere fact that the BTC price went up in recent times does not hardly prove anything, except that the BTC price went up, so any BTC that you bought prior to it going up is in profits.

Big wooptie doo.

If you lump sum buy at $26k and then you sell at $42k, then you would have made 60% on your investment, and it would show you that "trading works."   

Still a BIG SO WHAT.

If we are talking about long term investing in this thread, sure no problem appreciating some of the short term signs that we are on the right track, but still does not resolve a variety of dilemmas that guys likely still have when the BTC price jumps around so violently, then they are faced with dilemmas about whether to buy BTC right away.. DCA'ing and/or whether to wait for dips... and especially newbies have dilemmas over these kinds of matters, and get tempted to sell so that they can buy back cheaper.. which frequently causes more stress than what it is worth..

Actually, I find the ones who had been investing with a DCA style for the last 2-3 years to be much more convincing, and they might even be saying that they had been building their BTC holdings for the last 2-3 years and finally getting into profits. .and that is much more convincing than the mere fact that any of us might have bought coins low in any particular dip (or prior to a recent rise in BTC prices).


Surely any of the folks (whether governments, institutions or individuals) would be starting to show quite a few payoffs for any consistent buying of BTC, even if they might have front loaded some of their investment at higher BTC prices... so the persistence will be part of the ways of getting payoffs... but since our dip was so severe, especially between about June 2022 until about January 2023, there were likely quite a few folks who were having trouble in terms of both having money and to have enough confidence to continue to buy BTC during those times.. .. but surely almost any amount of ongoing buying of BTC would have had contributed towards putting that government, institution and/or entity into a good position....

Of course, Microstrategies has been the most transparent in this direction, even though their average cost per BTC is still quite high.. around $30k, but seemingly quite solid in terms of overall financial position.    Bukele has been a bit more obscure about the investments and also the last time that they were showing averages was in the $40ks.. but if he/the country had been buying 1 BTC per day of the last year, that would have brought down their average costs a bit.. but still no real reporting on the matter.. especially as compared with MSTR.

I may not prefer using DCA as a strategy for buying Bitcoin, but obviously El Salvador's DCA under the policy of Nayib Bukele is starting to produce dividends. Does anyome know what the average cost of ther investment is? I believe surging to a new all time high would make that about 2.5x, no?

If Bitcoin surges more to a six digit valuation, then some of the other Latin American countries would probably start proposals to DCA Bitcoin. Bukele front-ran all of them.

A little personal appraisal

Bitcoin have once again shown its hands by breaking $40k price point. Now let's be more practical about it. I joined this thread around early August this year and met the DCA method of Bitcoin accumulation as the dominant discussion. I jumped into it and decided to apply it weekly starting from when Bitcoin was around $26k. As of today, I have confirmed that I have recorded over 25% gain in my entire portfolio without feeling any financial pressure as I was living my normal life, meeting my financial obligations yet setting aside some portion for Bitcoin, this has grown tremendously. The DCA method is a wonderful approach that those who have steady income can adopt, the advantages are just so many.

Anyone still doubting Bitcoin as of now should have a rethink. We might see something so significant in the next bull run because it is obvious there is a growing interest in Bitcoin. Those waiting for the bull run after halving might be wrong this time.

All what you have said is true,  I really do understand what salamuh is trying to say, that you shouldn't invest angressively. Investment should be base on how you invest without having second thoughts of selling your coin when there is problem. You have narrated everything that you dont have kid or family. For that reason you can do it fine. What if there is no $40 weekly payments business how would you also cope? Because you talk base on absumption and you are not really sure. For me if you are reacieving payment like $200 according to salamuh absumption, what I will advice is to reduce it from the %50  to %25  Eg salary $200 ÷ 2 = $100 the first $100 is for taking care of your responsibility or reserved fund. while the other $100 ÷2 = $50 each, you can use $50 for DCA $25 for lump some and the other $25 for buying dip. I think this will reduce the stress of depriving yourself of some certain things all because you want to meet up target. Even as we are trying to accumulate, we should know that all our efforts is to survive and puts food to our table. If you deprive yourself of something's thought it wouldn't hurt you that moment but later you will realize that some things need to be fixed at the write time. In other not to affect your bitcoin. For example somebody who starved himself because he want to accumulate btc and later have a stomach ulcer, you will still need to sell your accumulated btc to treat your predicament.

Mate, you misunderstood me; I didn't specify a single-amount purchase. In some circumstances, lump-sum buying is advantageous because it will accelerate your Bitcoin accumulation. And you will not have to wait for the Bitcoin price to reduce before you can buy. Let's say, for instance, that you want to begin accumulating Bitcoin using the DCA strategy and that the price of Bitcoin is $50,000. However, you are well aware that before you can accumulate the quantity of Bitcoin you desire, Bitcoin may set a new ATH, putting you far behind in your accumulation. However, if you use the three strategies, you will be fast and among those who hold Bitcoin. If Bitcoin reaches $100k, you can sell the one you bought with a lump sum if you intend to sell; if Bitcoin dips, you can still buy the dip and continue DCAing until you reach the desired quantity of Bitcoin.

Fuck hype In shitcoins as no shitcoins can be commensurate with Bitcoin, those that gave hype to shitcoins hope they are seeing the rapid increase in the price of Bitcoin on daily basis, what other proof do they want to see before they can imagine the incredible boom that Bitcoin is gonna experience after the halving in the bull market, any wise investor will actually know what the future of Bitcoin holds is massive and should be able to hodl some more Bitcoins untill it surpasses the speculated ATH.

It seems you have another way of buying in Lump Sum because from your quote you are trying to say that Lump sum is good when the Bitcoin price is high but however on the contrary I don't think is the best way to Lump sum because the quantity of Bitcoin you could get if you Lump sum when the price is higher will be a bit small compare to dip, so however is mostly preferable to Lump sum when the Bitcoin price is a bit dip because that's the only way you can get a good amount of Bitcoin.

Also you don't necessarily need to use all the three strategies or rather method before you can start your investment because as an investor having too much strategy can affect your accumulation process either negative or positively so perhaps you could just focus on the DCA and Lump sum if you have the funds instead of three strategies.

There is a situation where you will find yourself, with these three strategies you can be able to start accumulating your Bitcoin. For instance, if you want to buy Bitcoin now, you will be afraid to buy because your mind will tell you, you are buying it at a high price, and you would not want to do that. But if you divide your money into three parts, and immediately buy with a lump sum as the Bitcoin price keeps on an upward trend, keep the second part to buy Bitcoin when there is a dip in Bitcoin price, and the third part is to buy Bitcoin through DCA that will help to control the volatile part of Bitcoin in your holding. These three strategies will help people not to miss out on Bitcoin when the Bitcoin price is too high because if you want to use only the DCA strategy you might not be able to accumulate the quantity of Bitcoin you want on time.

I will appreciate your decision that you did not choose the wrong coin at the beginning of your investment. A new investor's main problem is to choose the right coin. In the beginning an investor does not understand that which coin will be right for him or which coin to invest in will keep his money safe as well as give him a chance to profit. I learned about cryptocurrency through Bitcoin so I had no chance of choosing any other coin to invest in. At the time when I first started investing, I understood Bitcoin as an investment and I have always been very interested in investing in Bitcoin. 

In the beginning I started my investment journey with a relatively small amount of money and gradually as the idea about investment grew and when I got different ideas about holding the investment I planned to hold my investment for a long time. I got enough benefit by holding my investment for long time and now I believe in always holding my investment for long term. 

Those who are new investors should choose a good coin first at the beginning. When an investor is able to select a good coin early on, he will make a 50% correct investment decision.

I think everything depends on what is your plan and the target you have set for yourself. Let's say I set a target of having of having a particular amount of Bitcoin before the next halving and I have calculated that investing 10% of my salary won't allow me achieve that, but spending 50% of my salary will help me achieve my set goals. All I have to do is cut down some of the things I spend money on which are not really necessary to achieve my set goals. Also there is a possibility that I don't have a family yet and I don't have any kids yet. So instead of spending on women, alcohol, parties and eating in restaurants etc. I can reduce these things and make my own food at home. If I do these things $100 will take care of me for a month if we are using the $200 you talked about as monthly salary. And mind you as a man it's not advisable to only have one source of income. So let's also assume I have another business that gives me like $40 weekly I will be fine with investing 50% of my basic salary from my other job.

The fact that you clarified the situation of shitcoins investment has taught me alot, to buttress if anyone wishes to invest in shitcoins s/he should invest only least less than 10% which means if someone can actually afford to involve in shitcoins it shouldn't be an amount that is greater than nor half neither quarter of his/her investment in Bitcoin. Moreso, s/he must be well accountable for his or her action. I also observed that the example was meant for those who would constantly refuse advise not to get involved with shitcoins but since they maybe not be able to harken to advises its better to devices a means to reduce the out come of regret in their action. at the end it all boils down to say that one should try as much as possible to avoid shitcoins.

I couldn't comprehend the point you're trying to foster well enough @red4slash but to digress the whole point you might be trying to say.
@Queentoshi you do not need a perfect time to invest in Bitcoin based on what I have learnt here in this thread, every time is always the time to buy, you might be waiting to a bearish market when you have the capital to invest but it may not come. So that is why the DCA method of accumulation was introduced in order for anyone not to miss out the opportunity while waiting for the perfect time to buy.
Even outside the forum time waits for nobody, most people do say opportunities don't come you create opportunities by investing when you have, you stand to chance of not missing out but when you wait for a time to come which may not come you can eventually miss what is important to you. So do not wait for the right time to come before you invest, start where you can, start now, today hence you don't miss your chances because emergencies can take up the said capital you wish to invest in Bitcoin do it now not later.

It's true people hardly listen to good advise of this nature hence I believe every one has the right to make decisions but after making such decision they shouldn't cry out to anyone that they lots their money in shitcoins because not even me nor you will be ready to listen to such trash.

Bitcoin is the ultimate of cryptocurrency and that is why you will see that those investors who invested in altcoins due to greed because they want to get rich quick, after they have been disappointed and regret their actions, will come back to invest in bitcoin because they have realized their mistake and want to make things right.  The time that they were suppose to use to build up their portfolio to a good level, they must have wasted it on buying and keeping those garbage.

Bitcoin investment needs patience, and it is worth waiting a very long time for it to mature to that target that we want, and this can be achieved by regular DCA weekly or monthly because it a a real life investment. This is why it is better to start investing now than think of other altcoins because they can never be like bitcoin.

Because our focus is long-term with a slightly longer duration so that when the temporary increase that is happening now does not really have any impact on the confidence we have but on the other hand when other people are selling now I don't think it can be said to be wrong either (although this is not really in accordance with the criteria for long-term investment) but because they already feel profitable with what they have then it is indeed back to themselves whether they sell or not because if they do sell it means that their target is indeed here for sales.
It's just advice when you sell at the current price and when you release the bitcoin you have sometimes you can't buy it back because of the price so this needs to be thought out more carefully for those who are selling at this time unless they want to wait longer to get bitcoin back at a cheaper price which in my opinion that way is not worth it when you have to wait for bitcoin to have problems again because now it doesn't seem like the time for that because bitcoin is still bullish.
This is the problem of investors because what needs to be realised is not buying and selling but our strength in holding which sometimes in this phase we always fail.

It's true that some people got into the crypto space through some of those altcoins, but along the line, I think that most of them fell out of love with altcoins and embraced Bitcoin because of how consistent and dominant it has been. For example, in the past 5 years, there were some of those altcoins that were in the top 2 to 10 rankings, but if you look in the space today, you cannot find those coins again ranking in the top 10.


Yeah, that's right, but not all of them will take the advice of only investing in Bitcoin. Some will still end up putting their money into some altcoins, and it's after they have been disappointed and their money has been lost that they will begin to feel regretful.

I agree with you Salahmu that it makes more sense to be able to stick with it and not to overdo it, but if a person has his/her emergency fund in strong standings, then it might not hurt to have some periods of increasingly buying BTC.. but also when someone is being so aggressive with his/her monthly BTC buying there may be some needs to have some funds to be available on the side for buying on dips. 

It can be difficult to really determine if someone might be overdoing it or not, until some kind of a negative event or an emergency comes and then if s/he is saying that he does not have any money and blah blah blah, there might have been some mistakes earlier in the process that ended up putting him/her into that position of not being able to sustainably invest in BTC and especially not be able to buy when the BTC price ends up going down... that is if it does end up going down, because there is no guarantee, either way, so that is part of the difficulties in trying to strike some kind of a balance to prepare for either price direction and to be aggressive at the same time.

Using 50% of your salary seem too high for me because is more like aggressive investment because let say your monthly basic salary is $200 and when we remove 50% you will be left with $100 so however is obvious that within the month there is every possibility that you will spend it all, and perhaps if you have a family you will have to take care of your kids needs as well as your own needs so there is every tendency that $100 will not be okay to solve those needs before you could receive another salary.

So in as much as you are eager to accumulate as many Bitcoin as possible doing it in a wrong way will result to tempering your accumulated Bitcoin, so I would suggest that instead of using 50% of your salary you could cut it down a bit to may be 10% instead because it will allow you to have a breathing space such as having a good reserve funds that could possibly take care of any needs while you keep accumulating consistently on a weekly basis.

This is what I actually doing now and I think using 30% to 50% of my salary for accumulating is best choice to do especially right now we are really seeing a great changes happen to bitcoin. $40k is almost knocking on our doors now and I'm thinking to use my Christmas bonus to buy bitcoin to increase my holdings. I really do believe that in year 2024 we can see more great pumps.

That's why as title of this thread I also believe as what it say buy and HODL!.

The truth is that a lot of people started their digital journey through the hype of shitcoins. Few that are fortunate to dump on the others and make some money have the feeling that they will be successful all the time. Unfortunately, there is no consistency in shitcoins and the rate of failure is over 95%, in my opinion, this is a risk to high to consider.

We should never be tired of educating people on the need to remain focused on Bitcoin which is safer and have been around before these numerous coins that are mostly built on nothing.

Mate, this thread is to buy the Bitcoin dip, and Hodl and not for shitcoin discussion. If you are telling people to invest in shitcoin it means you are against us and your post is spam because it goes against our discussion, we only mentioned shitcoin on this thread when we want to advise newbies not to invest in shitcoin. What is the need to tell people to invest money in something that will possibly scam them off their money? Mate, Bitcoin has been around for 14 years now and it gives you self-control over your money, you don't need any third party before you can make a transaction with Bitcoin, there is nothing like Bitcoin and there will never be.