Topic: Buy the DIP, and HODL! - page 347. (Read 123598 times)

My personal experience has been that if the BTC price has gone up a lot, then I end up accumulating a lot of cash, and I am not saying that would necessarily be the case for someone who is newer to bitcoin because you probably would mostly be accumulating BTC so you might not accumulate as much cash.  Yet, if some reason you have been building a reserve in order to buy BTC when the price dips, my experience has been that I have tended to be someone aggressive towards the beginning of the dip (even if I might try to wait for a 10% or more dip before I start buying), but then if the dip continues, I tend to be running out of money because I am buying mostly from my reserves and as the dip keeps happening my reserves become more and more depleted.  So at some point, I can see that I will run out of money if the BTC price dips below a certain price, so I end up having to lower the amount of my buys rather than increase them becuase of the running out of money problem and that running out of money problem can exist in a lot of circumstances that are even less than 50% price dips, but even something like June 2022 when the BTC price went below the 200-week moving average, I had already been reestablishing my budget so my buy amounts were already becoming smaller and smaller, and even when we had the later in the year dip from $20k-ish and down to $15,479, sure i bought some BTC, but I still felt that I could not completely exhaust whatever reserves I had at that time, because late 2022 or even early 2023, none of us could really know if that BTC price bottom was in yet or not.. and maybe we did not really start to feel like the bottom was in until much later into 2023, even though there still could have had been questions about the bottom or even how much to prepare ourselves with keeping some reserves in terms of how much the BTC price might still continue to drop, so even if the BTC price might start going back up, we are still likely going to continue to have some reserves that do not end up getting used, which seems to be a good thing, even though it is not putting that money to work.


These are all good points regarding potential ways to deal with possible cash shortfalls and uncertainties regarding how far the BTC price will drop and how long such drop is going to last.


What trend?  You are talking about some kind of bullshit short-term trend that may or may not exist?  I doubt that there is very many questions to doubt the trend that we are already in even if we are currently experiencing a correction that is so far only slightly more than 20%.

The most major trend is that between late 2021 and late 2022 we went from $69k to $15,479, and then from late 2022 to now we have largely been going up (even though we might not have realized that we were going up until around mid-2023 or even not until late 2023 might we started to feel more comfortable that we are most likely in an uptrend that started from late 2022), and so it would be hard to believe that we are stopping from going up, even if we may well have various degrees of correction along the way, and even if we were to go back down to $25k.. seems like a BIG so what?  The trend is up, and don't get me wrong, I have my doubts that $25k is likely, even though it is not impossible to happen... but if we are largely longer term BTC holders and even BTC accumulators, we should always be attempting to prepare ourselves (Financially and psychologically) for both directions at the same time, including potential extremes that could end up happening.

It is your complete misconception that we don't care about short term investments. You don't know every investor's plan or what every investor is planning with his investment or what is in his mind but you don't know. You can say whatever is on your mind or what you have planned. It is an investor's sole decision to hold that investment.  
Here we only express our opinion and discuss the things which are right and the method of investing which will make investment easy and long term investment or what can be done by long term investment. We are only discussing here but someone's personal matter but we cannot decide. I think investing in DCA method is reliable for you, many may not like this method, it's a personal matter.

We cannot prohibit anyone from investing like this. You are directly telling us to never invest in short term plans. With your words like this, if an investor refrains from investing according to his wishes and invests according to your words, and if he is not satisfied by investing according to your words, will you take responsibility for that investment? It is not necessary for you that an investor must invest in you for a long period of time. If you are not in favor of short term investment then you can discuss long term investment.

You placed an order at $38,000 which means you will start investing when the Bitcoin price is at $38,000. You have placed an order at $38,000, now the price of Bitcoin is slightly above $40,000, that is, the price of Bitcoin is not far from your order, but the main thing is whether Bitcoin will break the support of $40,000. If there is a strong support at $40,000, Bitcoin will keep going up again after hitting $40,000 and your investment will never be complete. You confirm with us how you are investing, if you want to invest a lot of money at once you can wait up to 38 thousand dollars or if you think you can hire a small amount without investing a lot of money at once.  In that case you can start your investment even from this market condition. It is often said that there is no point in stressing over small price differences when investing in a long-term plan.  
In the long run, your purchase price will never have that much difference in future value.

There was so much hype in the market that ETFs are coming and we will see new ATH in 2024. The ETFs till now fail to have any major impact on Bitcoin price. I am one of those who were not much interested in ETFs because they are not part of the decentralisation concept proposed by Satoshi.
This thread is about buy the DIP and HODL. So its best time to buy as we have a dip. What we have seen so far in this thread is that price will go up and down, we have to define a strategy by which we will be accumulating our bitcoins. The best is to go with DCA manner and keep accumulating. If you are accumulating for long term then such pumps and dumps wont affect you.

The 40k price level has been tested for several times, and the more often the price kisses or visits a support or resistance level, the weaker the level becomes, so I think we have right now another great opportunity to buy more Bitcoin, So, I have set some market orders way down to $38k should the price continues to dip down because $38k is another important level of support for the Bulls to fight, to try to push the price back up to continue the trend.

Buying at the dip is a good way to buy bitcoin in discount and you will get more profit, the moment bitcoin price surges high. This is why an investor needs to make a proper plan and prepare himself to buy at the dip and even when the price is up. This is done by placing a buy order for you to follow when bitcoin price goes up or down. For instance, you can say that if bitcoin price is $41k, you buy $150 and if it falls to $40k-$39k, you buy $200 worth of bitcoin. In this way you can also reduce your buy order when the price is increasing as so on. However everybody can sort out how to go about this based on their own situation.

Buying at the dip can also be done by saving any extra money that you have unexpectedly, like bonuses from work or traveling allowance e.t.c, so that when the dip comes, you can take advantage of it. Another way is that if you are DCAing $100 weekly, you can cut it to $70, and save $30 for buying at the dip. As a newbie in your early stage of accumulation, it is better to continue with DCA, and as time goes on when you have the strong believe on bitcoin, you can set a strategy that will enable to have the opportunity to buy at the dip, lump sum along side with your regular weekly or monthly DCA.

This is the opportunity to buy bitcoin aggressively, if you have the money but don't overdo it so that it doesn't affect you later when you go and tamper with your emergency funds.

That is an interesting point about building legacy and/or wanting to pass down wealth versus figuring out ways to use the wealth by the end of our life times.  Surely there are some people who have clear targets, such as heirs or even a legacy in which wealth is passed down, but sometimes even rich people might have limits in terms of how much wealth they would like to pass down to their children, because they are concerned about their children's ability to build character and not to take their wealth for granted.

There are also surely some people who want to try to consume all of their wealth, but they want to also live a good life while they are still alive, so a goal may well be to NOT outlive your wealth and/or to try to use it all but still have plenty until the end.  Those seem to be difficult to achieve balances, so many folks who actually become somewhat wealthy who fear outliving their wealth end up erroring on the side of maintaining a decently -sized financial cushion so that they never have to live in poverty - yet since death cannot exactly be timed, they may frequently end up kicking the bucket prior to being able to use the wealth... but I am not going to suggest all cases end up in that kind of way because any of us likely would have to have a lot of wealth in order to be able to pay for some of the health care expenses that exist in places like the USA .. so I would imagine that those who do not end up with those kinds of medical expenses towards the end of their lives end up having a greater financial cushion when they end  up dying because part of the reason that they keep the extra financial cushion is to prepare for some of that unknown end of life medical expenses situation.

Which then also might bring us back to BTC, and wouldn't it seem crazy to have large portions of your wealth in BTC if you are potentially needing a lot of liquidity within less than a 4-year period, and bitcoin has not been around long enough to really reach a lot of the cases in which already old people have been investing into it, so anyone who might initially be investing into bitcoin might not want to completely eliminate bitcoin from their investment portfolio, even if they might not be able to guarantee less than a 4-year investment timeline, but they should be reducing rather than increasing their BTC exposure amount if they are not sure about how liquid that they might need to be within less than a 4-year timeline..... so anyone who might be in his late 60s, 70s, or later, or someone who has health conditions that leave uncertain his ability to live without great expenses, he might have to be more modest in his BTC investment, even though he might get lucky and not end up needing his BTC investment within the next 4 years or longer.


That is the thing about the dip and the length of time of the dip, we cannot know how far it will go or how long it will last.


You have already addressed your own dilemma that you set forth in terms of people do not tend to buy 1 BTC at a time, even though so many people commit the error or thinking in terms of whole bitcoin units...so maybe it is difficult to blame you for an error that so many folks make, especially bitcoin newbies.  Maybe the longer that any of us are in bitcoin, the more that we get used to some of the ideas of thinking in terms of a fraction of a bitcoin, and of course another solution is to talk in terms of satoshis, but even in bitcoin-related circles like this here particular thread, there are not very many instance in which we are even talking in terms of satoshis.. even though satoshis might be easier in terms of it being at least positive numbers rather than various numbers of decimal places... so maybe even if we were talking about bitcoin, we might refer to a real large investment into bitcoin being 0.25 BTC or more at a time (which is right around $10k), or more realistically maybe we would move the decimal place to be talking about 0.025 BTC or 0.0025 BTC, which would be right around $1,000 and $100 respectively.
 

These are good points about the potential of having a reserve fund that ideally should be separate from your emergency fund, and so in times like these, we can see why there is some power in having a reserve fund - whether it is used for buying BTC dips or if it is used merely to have some psychological comfort that you have some extra money available, even if the BTC price has so far dropped in the ballpark of greater than 20% from its latest local top of $49,048 on January 11th.   

Again, how much of dip are we going to get, and how long it will last is still to be determined, and so it is way better to have a problem in regards to how to use the reserve fund that we have already created rather than either not having one, or having a deficiently-sized one, so for example if we have a $1.6k per month income, a weekly DCA of $100 per week, an emergency fund that is $6k (6 months assuming $1k per month of expenses), and we have another $1.6k in a reserve fund, we might already have some ideas about how we are going to spend our reserve fund or how much of it we are going to use at certain BTC price dips, but we still might play it by ear in terms of if we might not have any exact plan for how to spend the reserve fund yet our emergency fund is also robust... and maybe if we are still thinking about the matter, then we just continue with our weekly DCA.and maybe we throw in a bit extra from our reserve fund to double or weekly DCA so that we are not necessarily using it all at once while we are contemplating whether we might want to lump sum some additional purchases or if we just maybe act more incrementally in terms of the changes that we make.. including considering that what we do may well have to do with our already preparations with our own place in regards to the 9 individualized factors.


Let's go back to the person who had already created both an emergency fund of 6 months and a reserve fund of $1.6k.  He may already have an agenda because in the process of building an emergency fund and a reserve fund, he might have had some ideas about how he might use the reserve fund, so it is quite possible, that he already started buying BTC with his reserve fund at $45k or something like that, so maybe every $1,500 the BTC price drops, he buys another $100, so if he had $1.6k, then he would have 16 possible buy orders at $100 per buy order, and of course, there are a variety of other kinds of ways to divide the reserve fund, including considering that using it at various triggering points might take time to play out, and maybe he is earning money at the same time, so some of the money of the reserve fund might get replenished depending on how long it might take for a dip to play out, whether he gets paid weekly, twice a month, monthly or some other intervals.

Any new investor to Bitcoin who would like to invest right now while the price is at $40,000 and above, and the person is financially capable will have to show extra commitment by dedicating a higher amount of money to DCA so they can catch up with the number of people that have already invested. Waiting for a dip means wasting more time when you are already not early, and that is not wise. With the consistent strategy of DCA, you will not need to care so much about the price of bitcoins before you invest.

actually with the Bitcoin ranging between $40, 854 and $45k is actually the right moment to take advantage of this great opportunity by starting accumulating immediate because if you can remember sometime ago when the Bitcoin was moving similarly as what is doing now such as ranging between $22k to $26k and most investors refuses to take advantage of the price thinking it will drop more before they could start buying and before they realizes themselves Bitcoin has moved to $30k and they were still thinking it will fall until they saw Bitcoin at $45k+ that's when they no that they actually missed a good buying opportunity, however is not actually late for them to start accumulating Bitcoin because it has presented another buying opportunity for them because it has falling from $45k down to $40,854 now so perhaps they should stop expecting more dip and start buying because there is every chances that the next move of Bitcoin will actually be positive one and also considering the upcoming halving there is a great possibility of Bitcoin surpasses the All-time high and creating another one, so let's stop waiting for dip before accumulating.

That means you have held your investment for a long time and you are a consistent investor. Currently the price of Bitcoin is falling then you are not excited but you are happy that you will get an opportunity to invest more amount of money at a comparatively lower price. You can consider such investment method as DCA investment method. Where other investors get excited after investing why their investment is losing, you are not worried about the loss but you are trying to take advantage of this period as well. If you have enough financial support, you must take advantage of these opportunities. If your investment does not have a fixed target, you can set a fixed target for your investment. A specific target is how consistently you will invest and how long you will hold your investment. If the target is fixed in advance, it will be easier for you to invest regularly and it will be easier to hold your investment for a long time. Actions without a plan are usually haphazard, so if you don't have a plan for your investments, make a proper plan.  

As construction of any big architecture requires planning in advance and long term investment is not less than any big architecture so here we should have proper and permanent planning.

The investor is asked to take risk in investing as the price cannot be determined in advance. It is difficult to tell whether the price will be positive or negative throughout the week. But I agree with what you said first that one shouldn't get excited over small price changes. If there is a positive change in the value of the coin after investing, then it is good, but even if there is a negative change, it is not bad at all, but should we take that negative change as an opportunity. For example, when the price of Bitcoin was 40 thousand dollars, I invested in one step and later the market fell to 38 thousand dollars and if it is possible to invest at that time, then it is investing in some difference in price. As a result of investing in this way, if the market goes to 42 thousand dollars, but the amount of profit will be relatively high.

Here we will hold Bitcoin for the long term, here we will determine the price by following the DCA method of investing for the long term. If we buy bitcoin at current price of 41k, again if bitcoin price is 44k we will buy here as usual. We will average between these two prices and thus save our investment. We never think of short term investment, more long term investment the more we can grow wealth. Evolve your thinking, ditch short-term investments, and embrace long-term investments.

The market is now at $41000 but there are many investors who are waiting for the market to come below $40K. If investors pledge to come below 40k then they might miss out on investing now. The market broke out of the barrier of $41K and went down, but the market did not last long, and soon the market went back above $41K. There isn't much difference between $40K and $41K when it comes to long-term investing. If a person invests one bitcoin the dollar difference will be one thousand dollars but most investors will not invest one btc at the same time. If under $40k is a good time to invest then I would say $41k is not a bad time to invest either.  Investors invested $30K $40K and a maximum of $48K.  

Investors have invested step by step but no one has done wrong by investing. Those who bought bitcoins during relatively high prices will probably sell bitcoins at relatively high prices, there will be demand to sell as much as to buy. Those who are waiting for the investment of forty thousand dollars can invest according to the current market if they want. I hope that your investment opportunity will not be missed.

Reserve money means not spending that money all the time and spending that money for extra needs. Amount of money for investment is different and reserve currency is different. The investor will use the reserve currency when he is unable to invest regularly. For example, an investor is regularly investing $50 or $100 every week or every month, but due to excessive demand for money, it is not possible for that investor to invest that amount of money at that time every month or week, then that investor will get the benefit of investing by using money from his reserve. Thus, after investing from the reserve currency, when the additional financial needs of the investor are met, he can make up the amount that he used for investment from his reserve currency later.  

Although most investors do not keep reserves in their investments, it is definitely necessary in their investments. If you suddenly stop investing after investing for a few days, then you no longer have the same mindset to invest later. That is why it is very important to keep money in reserve so that the investment mindset is maintained properly and if you keep a reserve, the investment will definitely be much stronger.

The recent price drop is indeed very important to take advantage of, especially for those who are trying to collect more Bitcoin at $41K. Because I think the current decline will not last too long in Bitcoin because there are still some good influences for the next price increase this month even though it happens more slowly. However, I believe that the price decline will not be that long in Bitcoin, because the influence of the large number of buyers can also be a real factor in the next price increase which will make the market turn green again this month.

It doesn't truly matter if you bought the DIP and the DIP goes lower. What matters is bidding Bitcoin at $41,000 is better than bidding it at $45,000. You get a discount, you are a little more efficient with your capital, and you'll probably  HODL more units of Bitcoin through looking for discounts. HODLing more units = Definitely MORE value in your wallet when the asset surges.

Buy the DIP, and HODL because there's an increasing number of HODLers who have HODLed Bitcoin for more than one year. They are front-running you and it's in an all time high.

https://www.lookintobitcoin.com/charts/1-year-hodl-wave/

Your statement is in the right direction, short-term investors always shivers when there is dip in price, but the fall to understand that it is a good opportunity to also buy at this time, bitcoin was meant to be like this, that's why the long-term investor or holldlers as they are called always try as much as possible not to discouraged because of price fall because they have already stationed their mind the long run, so they are not distraction with either speculation or price fall.

Individuals should understand bitcoin before investing in it because bitcoin is not get rich fast stuff, the price is been determine by market force, influx of people that have chosen to be part of the it, many investment plan has been rolled out for everyone to be among, I don't think anyone have any excuse to be exempted but we most not come in with pressure because if we do we will be disappointed, the best action to take is to continue accumulating gradually so that you won't be tempted to withdraw your investment, this method will allow someone to divide his or her funds, use part of it to settle some needs and the other one for continuous accumulation with this pattern you won't have an issue.

It is good idea  to have a longterm plan and not let small changes in the price affect your decisions. By doing this you can take advantage of the market and maybe get more Bitcoin. But it is important to know that it is hard to predict how long the price will stay low. It would be great if it stayed low for a week but the cryptocurrency market is always changing. It is good that you are optimistic and taking action to get more Bitcoin.

Since I've been accumulating my Bitcoin for a long term, I'm not worried about the recent dip in Bitcoin price. I'm happy because I will seize this opportunity to continue accumulating more Bitcoin at a low price. I hope this dip will last for a week so that I can use the money I kept to buy Bitcoin when there is a dip to accumulate more Bitcoin.

you know, I find this actually funny.

The mindset of a matured investor is quite different from that of average person out their and I guess that this is one of the big difference between the rich and the poor.

Do you know that their are people that would not want to invest into bitcoin at the moment because they might feel that bitcoin price is going down? But real investor knows that this is the perfect time to buy the DIP as the next thing that will certainly happen is a rise in the value of Bitcoin.  Talking about the if it is necessary to wait for the price of bitcoin to go down the more before buying, I guess it's the procrastination tendency that is at work here, how are you certain that the price of bitcoin would go down past this level? As long as it is certain that the value of bitcoin will go up past it current value now, then this is the perfect time to buy the DIP.

And it just shows how JayJuanGee is knowledgeable as far as Bitcoin investing is. This guy literally help us on how to manage our funds, like accumulating and building generational wealth. And it's not just for us though, sure we can be rich through our Bitcoin investments and it will make us feel great. But if we can built wealth today and then passed it on from generations to generations, then we can make their lives, the lives of our kids or even grandkids be better by doing some actions today, requires intentional financial planning, investment strategies, and a focus on creating a legacy that extends beyond the current generation. And with JJG helps and others well informed members here, asking for their guidance and sharing it and even correcting us from time to time so that we won't waste time, it's already a blessing being here in the community with this great mentor, in my opinion.

Exactly! You are right I also read his posts carefully and he give more and more knowledge. I like his style of typing most precious thing is that he gives examples. With these examples we Understand that what is the point and what is he want to say.
He writes a point briefly which shows everything. I mostly see when anyone has a point or he/she is on wrong side JJG try to his best to teach him/her. I mostly visit his post history and chech what is he saying and why is he saying to get more knowledge from him.

Honestly JJG, I'm overwhelmed with your response. Your influence and guidance in my Bitcoin accumulation journey can be greatly felt. Just like a naivete I was thinking in every investment there is to be an exist from it but then I was wrong. You are more of an eye opener in this forum.

Do we assume that stuff like this would ever happen, what becomes the possibility and cause if it might happen?