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Thank you sir. From this I believe that having all three strategies at hand would even be more favourable to me, just incase the price soares then if I had lump sum a specific amount I would be at more advantage, and if it the price has reduced I shoul also have a reserve for buying dips if necessary. From what your implying, all strategies are good when you have a proper plan behind your accumulation and dca is just safe cause I won't have to worry about the market conditions or Current price, since I'm just investing specific amounts on intervals.
And I think I would catch up pretty fast cause I do have multiple sources of income, I won't like to share my total income for a month cause its mostly irregular cause I do have some mini investments going on with a forex group,
There is no need to provide your specifics, and sometimes there are ways to present or to talk in terms of hypotheticals or even in terms of percentages or some other kind of criteria to help to attempt to sort through some troubling areas.
but from your first paragraph it think your also telling me to make sure I remove some money for my upkeep, I'm still with my parents for now tho, so I think that is covered, the emergency fund, should i also remove a part of my income to cover up emergency, what kind of emergency are we talking about here?.
It seems that I have already described some of this in earlier posts, so generally you want to hold 3-6 months of your expenses in some kind of way that would be mostly in the type of currency that you use to pay your bills, and sure some people even hold value in the dollar rather than their local currency because it tends to hold value better.. but none of that is guaranteed either... so when you invest into something that is as potentially volatile as bitcoin, you don't want to have to cash out at time that is not of your own choosing.. think of the March 2020 event.. if you had been forced to sell your bitcoin during that dip, you would have been screwed in terms of getting it back for even close to the sell price. There are a lot of ways that people can have emergency expenses, and yeah, you might not have as many if you are relying on your parents as your emergency fund... but maybe that would cause that you don't need as much of an emergency fund, and you might have to consider if something happens with your parents or your reliance on them as an emergency fund.. and I am not going to be the one to determine how adequate your emergency fund is.. or if your practices of thinking through your own situation is sound enough..
For a start I think I can use two strategies, lump sum and dca since I can manage that for now, is it also possible I lump sum on dips, since its buying with a huge percentage of your capital each month, can I use lump sum in a way that i set it to buy at any dip that occurs in the market while I use dca to be on a safe side since the market is unpredictable?
That sounds mostly reasonable to be combining your practices and then also monitoring how it goes which might allow you to learn from if you are balancing matters out well. None of us is going to feel comfortable if we run out of cash and the BTC price dips, and maybe we buy but then it keeps dipping, so then we might start to wonder if we structured our dip buys good enough or maybe we can just use DCA if the BTC price keeps dipping and we don't have any extra money at that time..
The longer that you are in bitcoin, then the more that you should be able to build up your reserves in various places, but even experienced investors might run out of cash or feel that they don't have enough cash to take advantage of dips and then they get concerned about if they might want to sell some and to buy back lower.. which I believe is one of the worst mistakes, even though quite a few people engage in that kind of behaviors, but if you have a regular cashflow coming in, then you can keep buying, but if you had been buying BTC for 4 years and then it dips a lot then you might feel that you are not getting as much advantage from the dip because you are buying lower, but your BTC holdings might have lost 50x or 100x or more than the amount that you ended up being able to buy.. because let's say you had been buying
$100 per week of BTC for the last 4 years, so you had invested around $21k and you have more than 1 BTC, and if you are still investing at the same rate, but the BTC price drops 20% from $49k to $39k, then at today's prices you lost around $10k, but you might have been able to buy $100 or maybe $200 worth of bitcoin at those prices, depending on how long the prices stay down at the 20% dip levels.
You may well feel screwed if the BTC price goes down after you had already invested all $200 and then you don't have anything left, and then you may well feel screwed if BTC prices go up and you still are sitting on some cash. In the beginning it is almost a no win situation and you just try to balance it out as best as you can, and maybe after a few years investing you start to feel that you have everything in place. You have figured out your budget and you have some reserves for buying on dips and you have built and established an emergency fund.. and maybe you have figured out some ways in increase your cash flows and to decrease your expenses... but you still are likely going to always have some tensions in terms of trying to figure out how many BTC you need and how long it is going to take to accumulate as many BTC as you believe that you need.. especially if your goals might be to reach some variation of fuck you status...
and if you think about it, there are a lot of people who work 30-40 years or more and they do not reach fuck you status, so if you are able to actually reach it or maybe even reach it in 15-20 years, then you end up both reaching it and cutting the time in half.. and none of that is guaranteed.. You just need to do your best under your own particular circumstances.
I believe in other to avoid that tension I would set a big goal, then start with smaller targets or milestone, this emotion strategy would be good for me to avoid the tension around the time frame for accumulation and how many I would accumulation within that time frame.
If you are still living with your parents, then I will assume that you are on the younger side maybe lower 20s or less, and so sometimes it can take a while to both build up your investment portfolio but also to figure out your targets (or how easy or difficult it might be to reach them), so surely you can plan out targets of 1 year, 3 years, 5 year, 10 year and 20 year and maybe even further out and some other variations of timelines, and your actions are going to be much more concrete in the shorter term, but your ability to meet shorter term targets or to adjust them would likely be more measurable in the short-term in order to potentially keep you on track for the longer term... sometimes it will seem that you are not making very much progress, even if you might be ongoingly making efforts and even reasonably adjusting from time to time...and sometimes large dips can feel as if you might have had been set back 1-3 years or more, but then those perceptions might end up being false perceptions or they could become realized perceptions in which you might make some mistakes that ends up causing losses to your progress and sometimes difficulties to make up at later dates.. which in the BTC world, some BTC hodlers make mistakes of selling too much BTC too early and then they become disgruntled or maybe they end up holding too much on exchanges that get hacked or go into bankrupcy or rug pulling them, so there are various measures that each of us should try to take in order to lessen the impact of our various mistakes along the way.. It is almost inevitable that we are going to make various mistakes along the way.
Cause I believe it all boils down to the amount I'm putting in or investing in bitcoin. My strategies would even work better with a higher income, which I should try to fix. I now have an idea 💡, I could start up a business in my school and deposit all my profit as a daily dca in bitcoin, then use my monthly income for lump sums, this way I'll have a chill and start saving up some emergency funds, even if I'm not clear on its purpose.
Nothing wrong with those plans. Some businesses are more capital intensive than others, and surely if you can figure out ways to increase your income then it could be likely that you would have more money to buy BTC.. and sure sometimes businesses will take time and money, but if they are increasing cashflow, then it could be a good option.
Let say I set aside another 200$, and Start up a snack business at my school, with the high traffic I'll could make daily profit of about 20$-50$ on average to very good days cause I'm targeting the hostel areas, then I'll dca about 80% or 70% of my profit daily into bitcoin and at the end of the month if I was invested a total of 20$ daily I would have total of 560$ already in bitcoin, not including my monthly lump sum.
I cannot disagree with any of that, but with any kind of work, you have to consider if that is a good use of your time compared with other ways to spend your time...and probably we would be deviating too much from the topic of this thread to get too much into the weighing of those kinds of choices that any of us might have.
The reason I would like to have this business first is because I think I would accumulate faster and reach my goals if I had a steadier source of income that I can plan with. Then reach my own fuck you status wouldn't be a problem. If I'm going with about 5 years and sure my investment amount would be increasing, I might be able to achieve at least 2 bitcoin if not more in this time frame. I'll start by setting my first milestone which should be getting a more steady source of income. Or I could even invest 15$ from my daily profit and save 5$ so at a weekly or 2 weeks interval I'll lump sum a bit, just in cases where the price might have little fluctuations which could be up or down
Well, if you are able to project how much income you need, then you can project how much value you need to have in order to reach your fuck you status levels.
Usually, in traditional systems, you would need to accumulate between 20-30 years of income in order to be able to live off of the passive income from that which would be 4% per year withdrawn, so many folks are only ready, willing and able to save/invest ONLY 10% of their income/expenses per year, so it takes them 10 years just to save 1 year's worth of income, so it makes it quite difficult to get to fuck you status with those kinds of savings/investings, even if their investments perform well.
Now is it is quite possible that with bitcoin we might not need to quite reach 20-30 years of income and we might be able to have a higher per year withdrawal rate once we achieve the amounts, and also I personally prefer to value my BTC investment using the 200-week moving average rather than spot price, even though both spot price and 200-week moving average would be considered in managing your withdrawal rate once you achieve a stack size that you believe is sustainable (at or near what you consider to be your own entry-level fuck you status). I make many of these same points,
here.
Im definitely cool with dca cause from your examples I think dca is the best strategy for a newbie like me then I can learn more about buying dips and all that, and judging from my capital, how much would I be keeping out for dips, I just think its not enough, so I'll dca first, then I can add other plans later. Although I had already invested 10$ into bitcoin last week, I going now i can move a bit slowly, while getting more capital to fund other strategies.
Of course, past performance does not guarantee future results, so you just do your best.. and sometimes it can be o.k. to build up a separate fund that you would be able to use for buying on dips, even if you might ONLY be setting aside a few dollars every week for such potential purposes, and frequently I think that $10 per week is very small, yet I know that some members in some parts of the world feel that they can ONLY do $10 per month, and so doing $10 per week, you are investing 4 times more than they are.. and sometimes there could be some ways to both invest into bitcoin regularly and to build up a side fund that you would use for buying on dips.. and really my example 8 is stemming from the hypothetical income and expenses that I described to exist in example 1 .
Example 1: This person has not accumulated any bitcoin, and has an income that is between $300 and $2k per month and most months his income is around $1,200, and monthly expenses of between $600 and $1,000 per month and most months $800. This person has a debt of $1,400 that he services at $50 per month with a 6% interest rate that he services at $50 month with an expected payoff in 30 months (2.5 years), and he has an emergency fund of about one month's expenses $1k.
So in my hypothetical there is already some income and expenses presumptions that even seem to give quite a bit of a cushion for possible investing into BTC, and there is debt described and a pretty much inadequate emergency fund, so sometimes there can be enough income to be able to accomplish several things at once, but at the same time, there can be struggles in which a person might not have much if any cash left over to be able to invest into bitcoin, and so there would likely need to be some setting of priorities and if they actually have emergency expenses that end up occurring in any particular month, they can end up putting themselves into a pickle if they don't have enough in their emergency funds to cover their expenses during that period, and they feel that they have to dip into their BTC at a time that is not of their own complete and voluntary choosing.
A lot of poor people (or not so rich people who have tight cashflows) will fail in their investments (including their BTC investment) because they have not structured their investment properly and they are ONLY preparing for UP and/or they are not creating, building and maintaining an adequate/sufficiently sized emergency fund.. which should be 3-6 months of their expenses in cash (or the currency in which they are paying their expenses).
And that the reason I think setting up a business that could support my investment would be good, cause if I'm investing just 10$ weekly, how long do would it take to accumulate up to 1 bitcoin for me,
I think that many of us have already come to the conclusion that you would probably need to invest around $200 per week if you want to accumulate at least 1 BTC in the next 10 years, so in other words, $100 per week is not likely going to be enough.. but that does not mean that you should not try. You try to invest as much as you reasonable are able to do without overdoing your investment in such a way that you contribute towards recking yourself, such is if you were not to have an adequate emergency fund because you are investing too much in BTC and then you end up getting yourself in to a pickle if something unexpected ends up happening..
and the market would either favor me in this case by decrease which I can't bet on, or increasing which would most likely happen.
Of course there are no guarantees of what direction things might go, so we should be tempering our BTC investment in order to attempt to account for a variety of possible outcomes.
So i think to avoid a poor accumulation result I must have a plan that should help accelerate the process by giving more capital to strategies and invest properly. Even with a monthly earning that could go up to 300$ just assuming, alone would not give me a good time frame for accumulation since I might have some short comings that would make me dip my hand back in my investment and even my expense must be managed properly to for me to hive a higher chance to save up some emergency funds.
You are describing exactly the reason to have an emergency fund or even some cushions in your cashflow so that you never have to dip into your investment except for if you might have preplanned some kind of a way to shave off small amounts as the BTC price goes up - and even I do not necessarily recommend that people shave off small amounts of their investment, even when profitable until they have accumulated a certain decently sized stash, and maybe it is even better to reach some state of overaccumulation, then maybe at that point, you might feel some justification to sell small quantities of your BTC on the way up without any expectation of being able to buy back... otherwise if you are still in the more base part of your accumulation stage, then you may well be selling from one hand and buying from another, and really not serving much purpose at all if you might be incurring fees and also potential tax consequences.
For now I think I would start with dca with my little allowance and then use my monthly income to set up a system that can generate a substantial amount for investment. Cause if poor income and management could be a deficiency in accumulation where I might have to dip my hand back in my portfolio then I guess my first real move here should be to fix that and get my finance in order. What do you think about this.
You are describing the creation and building of an emergency fund, which surely could be life saving (and save your investment) .. and having an emergency fund will tend to give a lot of peace of mind when the BTC price starts to move against you.. which it will do from time to time.. especially the longer that you are involved in investing in it and building the size of your BTC stash.
By the way, you mentioned at least 2 bitcoin, but then you are also talking about investment numbers that would likely be quite lower than the amounts needed to reach 2 bitcoin, and I am not even necessarily suggesting that you need to get to 2 bitcoin, but if you consider that $100 per week would be $5,200 over 1 year and $52k over 10 years, you would almost need to be crazy to believe that there are very high chances that you would be able to accumulate BTC for less than $52k by averaging out your buys over the next 10 years, and that is why I had been saying that even $200 per week would be optimistic for reaching 1 BTC even with $104k invested over 10 years, so if you expect to reach 2 bitcoin or more in 10 years, then you would likely need to average around $400 per week over 10 years, and there is a bit of a presumption that you would be able to do that from the start since it is more likely that $400 per week now is going to get you more BTC than it is going to get you 10 years from now... and surely you are not even hinting at being able to have that kind of money to be able to invest now or to consistently be able to do it without putting yourself into a pickle in which you end up not having an emergency fund. ...
Surely, I am not going to tell you to NOT have high goals because sometimes goals can be reached and/or exceeded, and surely even with my getting involved in bitcoin in 2013, I had created goals for myself to be able to achieve in the next 6 months and then maybe to extend beyond the 6 months, and I was able to exceed my goals, but that was mainly because the cost per BTC was going down during that time, rather than up... so then my expectation of my average cost per BTC ended up going down because I was mostly anticipating how many bitcoins (or satoshis) I would be able to get for a certain amount of cashflow that I expected to spend over the first 6 months and then extending into the second 6 months, and each time adjusting some of my expectations based on expected dollar cashflows and also considering best case and worse case scenarios, and even though falling prices did cause worse case scenarios in terms of how the value of my BTC holdings was then going, but it created best case scenarios for being able to accumulate more BTC (as perverted as that kind of perspective seems).. because people can really call you names when you keep investing into something that is continuously loosing value (or at least its spot price continued to go down throughout 2014 and even into 2015, even though the very end of 2015 did end up being an UP year)..
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Plus people in the topic who are convinced that there will be "NO MORE MAJOR DIPS" should stop thinking binarily and start thinking in probabilities. Because with the macro-economics looking bad in major economies like China and the United States, it could start a systemic event that might take the economies in different regions around the world with them.
The unemployment data in the United States will be a leading indicator in knowing if there will be a sudden crash, and if Jerome Powell starts to pivot - For the wrong reasons. The "soft-landing" might not happen. It will be "higher for longer" until something will break.
It sounds like you keep praying for a dip that might not happen.
Haha of course, with my strategy I'm always praying for a DIP!
But don't make it sound that the hypothesis about a possible recession caused my a macro-economic failure is not supported by factual basis. It isn't based on "prayers", ser. Simply data.
At least you admit that you are doing a lot of praying, and perhaps too much praying and not enough buying of BTC.
For the limited capital I have, I have enough. Don't worry about me, ser.
Nobody, including yours truly, is worried about uie-pooie.. except maybe your mom.
hahahahahahaha
Think about it. We are posting ideas in a public thread, so if you are making certain kinds of proclamations, then there likely is some value in terms of getting into the details and/or the ramifications of some of your proclamations, especially some of your more recent failures/refusals to buy (for example in the $25k to $27k price arena, and also some of your attempts to justify and/or argue that a dip is coming or likely to come, and most likely you are failing and refusing to sufficiently acknowledge that we have likely transitioned into a BTC bull market, which also further justifies why there should be sufficient and adequate preparations for up and perhaps even a presumption that UP has become more likely than down.. sorry to break the news to you... but there have been quite a few signs of this for quite a long time.. including when we first broke back above the 200-week moving average in early 2023. .and a kind of ongoing trickling up of the BTC price with really only one revisit below $20k in March 2023.. and even that proved to be short-lived.. so those people continuing to pray for down even though the BTC price has been trickling and trickling uppity through out that whole period of time.
Additional purchases will be small and only if there's a good discount, which I believe will be coming.
That's a bit vague.. but o.k.. maybe such supposed "good discount" will come and maybe it won't. Maybe you will be able to identify when such "good discount" happens and maybe you will not.. just like the "good discount" that we had in August, September, October, were you able to identify that "good discount?" at the time? or do you even realize that it was already a "good discount" in August, September and the beginning of October,
The Federal Reserve has two mandates,
- Maximum employment
- Price stability
Jerome Powell must accept that to serve one, he must disable the other. In most of history inflation was never truly curbed until unemployment rate surges, causing a recession.
I know that you have been ongoingly and persistently distracted by such
Macro nonsense... and since when should we have gotten distracted into giving very many shits about what the Fed is doing? Sure liquidity is a factor, but we still have bitcoin the three main factors that have ongoingly influenced BTC prices which is 1) stock to flow, 2) 4-year fractal and 3) exponential s-curve adoption based on Metcalfe principles and networking effects (
as outlined by Trace Mayer).
OK, I respect the opinion, but let's wait for the "Macro Nonsense" if something does break.
No need to wait, except for people who have enough coins. Most newbies should be buying regularly rather than waiting.
I'm not going to say "I told you so", but what I'm going to say is just save some of that DCA money and allocate it to Buy the DIP.
Last time I checked, it is possible to do both, and the more important of the two is to be buying regularly rather than waiting... unless you have reached some kind of a high level of BTC accumulation that you feel that you are more than adequately prepared for up, and in that case you can afford to wait because you are already overly allocated into BTC... .
Hopefully you are adequately prepared for UP, and you are not regretting too much that you had ended up holding way too much cash in August, September and October waiting for dips that did not end up happening then, either... but hey, whatever, you do you.
My biggest purchases was during the year when I made this topic. Most of my savings until that time went into Bitcoin.
O.k. I will create an example 8 from this information...
--Snip--
You hoped that I'm adequately prepared for "UP", I merely replied to you that yes, I'm very confident that I'm ready. Your 8-point example will be wasted on someone who is in the left side of the I.Q. Bell Curve like me.
Part of my point is that even if I do not have the numbers correct; hopefully, whatever you are doing is equal to or greater than (or at least in the ballpark) of performing similar to example 8... and the other point of example 8 is to share with other forum members another possible example for someone who may well accumulate in a lump sum and then be ready, willing and/or able to continue to accumulate, even if their average cost per BTC ends up going up, they are likely going to be much better off by continuing to invest rather than lump summing into BTC and then just sitting on their investment waiting for dips that might or might not end up happening.
Of course, past performance does not guarantee future results, so you just do your best.. and sometimes it can be o.k. to build up a separate fund that you would be able to use for buying on dips, even if you might ONLY be setting aside a few dollars every week for such potential purposes, and frequently I think that $10 per week is very small, yet I know that some members in some parts of the world feel that they can ONLY do $10 per month, and so doing $10 per week, you are investing 4 times more than they are.. and sometimes there could be some ways to both invest into bitcoin regularly and to build up a side fund that you would use for buying on dips.. and really my example 8 is stemming from the hypothetical income and expenses that I described to exist in example 1 .
Yeah you are right past performance doesn't guarantee future results but it only serve as a roadmap that will guide him through his investment decisions and the negative or positive things that could happen if taking a certain decisions and how he can avert it.
Probably past performance does give us some ideas to attempt to study and to attempt to better understand why the asset (in this case bitcoin) has performed in ways that it has (similar to saying coming up with theories and investment theses), especially if we look at its whole history, but also we could look at some sub-periods too. And sometimes we might not be able to come up with clear and/or understandable reasons why BTC's price did what it did during any specific period of time, but we can still come up with some theories in order to attempt to better understand what makes bitcoin tick.
Actually having a separate funds is a very nice idea because if our intention is to target both the DCA accumulation and buying when the price is dip, so perhaps we could structure two ways of accumulation first keeping or budgeting a particular fund for regularly DCA accumulation and secondly by keeping a fund to accumulate Bitcoin when it dips.
Yeah but if we were to have a monthly salary that was usually $1,200 per month, and we were investing between $50 and$100 per week into bitcoin, and then all of a sudden we were to get an extra paycheck or an unexpected bonus that amounts to $1,200 or even $2,400, then it is possible that most if not all of that money could be used to go towards bitcoin purchases, and even if we ONLY chose to allocate towards DCA and buying on dips, we should at least consider lump sum also, which is not an all or nothing proposition, but we could decide how much to allocate towards each of the three categories, and sure it could be 0% or 100% or it could by some amount in between, such as 33% into each.
Perhaps just like your explanation on the example 8, there is every need to have a lum sum method if we are using DCA strategy because it will always enable us to utilize every opportunity given to us when the price is dip but although it all depends on the financial strength of the investor.
I am not sure if example 8 shows that exactly, but if a person had already decided to lump sum, then it is likely better to follow up with DCA and maybe also including buying on dips, and there can be choices that are made at certain points in time, yet once the choice is made, to do the lump sum, then it might not be comfortable to reverse that choice, unless maybe the price goes up and then some or all is sold.. but enough to cover the fees and the taxes, and then there could be a choice to try to reposition the lump sum, but it can be difficult to decide those things without really relapsing into trading by selling and then running the chance that the BTC price might not correct in such a way to reestablish the position, because a decision might have been an error, but sometimes our attempts to correct the decision could end up making it worse rather than actually fixing the problem, so many times, it is better to attempt to fix those kinds of problems in incremental ways rather than taking drastic measures.
I recall one time in about early 2019, I had a friend who wanted to buy some bitcoin from me, and it would have been around March, so I sold a certain amount of bitcoin and I was planning on buying it back cheaper (or at least at around the same price to recover the fees so the BTC price would have ONLY needed to go down a little bit in order to cover the transaction costs), and so between April 1, 2019 and the end of June 2019, BTC prices went from $4,200 to $13,880, and so they did not end up coming down in order that I could buy back... so there was a little bit of regret, but then I had done similar things in the past, and it worked out, yet likely one of the main redemptions regarding my loss was that I had not sold a lot of BTC, so it was ONLY a fraction of my BTC stash, but it still was a part of my stash that I would not have had sold, if it had not been for the request from my friend to buy some BTC, so maybe I just end up feeling good for my friend rather than feeling bad for myself.
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If you want to DCA and not look for discounts or a Bitcoin fire-sale, then good luck to you. But because I'm a mere pleb with limited capital, I need to be more efficient and careful with my money, plus accept that there are some price levels that I should avoid because they are simply not a good deal.
You again seem to be assuming too much Wind_FURY, and you do not even attempt to grapple with my example 8. If we are going with example 8 and we say that your budget is possibly $10 per week, but you do not want to use all of it to buy right away, you could instead buy $20 per month(or $5 per week) and save the other $20 per month ($5 per week) for buying on dips. Going with DCA is neither an all or nothing proposition and it also does not preclude poor people. DCA works with poor people too, and it likely works better with poor people because poor people might not have as many opportunities to lump sum invest, and so maybe a poor person might not get a yearly or twice a year bonus... or maybe if the yearly bonus comes it is merely $100, so the amount is not really very great, but it still does not preclude from allocating parts of it for DCA or buying on dips, even though it might be less justifiable to lump sum buy. And surely, even if a guy had been waiting through most of 2023 for another dip below $15k, and the dip does not come, and if the guy is poor then maybe he ends up saving half of his $10 per week in order to buy on dips, and the other half he DCAs, and so after more than a year of saving $5 per week, he may well have more than $300 in his fund in which he might be able to buy on the dip (which could also be a lump sum, depending on how it is framed).
It's probably the same as when you're shopping for nice clothes. Some of them will simply be too expensive, but if you wait and be patient, you'll be given an opportunity to by them on sale.
There are similarities, but with bitcoin there are differences too. We have already seen how continuous BTC buying has been very helpful to people, even poor people.. but these days they do need to figure out how to manage their UTXOs, because some poor people may have gotten themselves screwed if they created 100s of UTXOs that were $5 to $50 each., and so they might not have as much BTC as they thought that they had. There are frequently reasons to be scared, and many times there are disadvantages to poor people, which still contributes to my thinking that some of this ordinal/inscription blocking up of the transaction fees is being done on purpose and is perhaps an attack on poor people and also an attack on persons who have a lot of small UTXOs, even if they might not be poor people but they might be a merchant who had been accepting bTC for payments and retaining small UTXOs..
Overall 2023 was a good year for bitcoin and bitcoiners.
Yes, it's relatable to those who took the very opportunity of starting up their Bitcoin journey and also those who kept consistent in their Bitcoin accumulation. The market was open to everyone but not everyone seized the opportunity, so putting into consideration the way the market is moving it will also accept more investors, likely few months after the halving then we expect to experience an ATH, which may not be the perfect spot to hop in.
2023 was a good year for Bitcoin and Bitcoiners. I had the opportunity to join this forum in 2023 to learn about Bitcoin, and it has helped me to understand Bitcoin and also start accumulating Bitcoin with the DCA strategy at regular intervals. The DCA strategy has always been helpful to me when I'm accumulating Bitcoin because it helps me to take care of my financial needs. We are expecting 2024 to be better than 2023 for Bitcoin and Bitcoiners, because the spot Bitcoin ETF was approved last week, and the Bitcoin halving will also happen this year.
Yes I agree with you. I am new to Bitcoin. According to your information, the year 2023 was very good for Bitcoin and Bitcoin users. But for the last 7 days, Bitcoin has been going down, that is, the beginning of 2024 has not been good at all.
https://www.coingecko.com/en/coins/bitcoinBitcoin Price Review Expect Bitcoin to increase in value and halve within this year. I think 2024 will be a memorable year for those who use the DCA method.
We are only 2 weeks into 2024, and so far 2024 has been very good for bitcoin too, even if price performance has been a bit volatile, but who cares, especially if you may well be new to bitcoin, then you better be buying regularly and not getting too worked up about short-term BTC price moves. But hey, in the end you can do what you like, including getting distracted by short-term price moves.
Yes, I am new to bitcoin and have deposited some bitcoins for long term with DCA method and am trying to gain more knowledge about bitcoins by reviewing the market so that I can profit from short term investments. Not to mention one more thing, I am going to open a shop very soon, my shop is about 80% done. Hopefully in a few days I will be able to open my store and buy and sell products with Bitcoin.
First: Your quoting sucks.. since you did not even attribute the above quote to me.. so if fixed it for you.,. since I recognized that to be something that I had posted earlier.
Second: If you are planning to have a lot of small transactions with bitcoin then you likely will be better off to set up with lightning network or some other way of dealing with the high transaction fees. If your transactions are $500 or more, then maybe it won't matter so much if you are doing them onchain.. It would depend on how much your ticket items are and then if there is a need to deliver upon payment or if they are shipped or if there might be a bit of a delay between payment and delivery of the goods/services sold.
Many investors have missed such opportunities as Bitcoin prices have gone from very low to very high levels without having enough money to manage. But now there is no risk of missing the opportunity for the investor as the investor will get the opportunity to invest in different positions of value step by step with DCA strategy.
There is always risk. Certain kinds of risks are eliminated by DCA because you are deciding how much to invest based on your cash flow, so you would likely ONLY invest with your discretionary/disposable income (the difference between your income and your expenses), while a lump sum might constitute several months or several years of discretionary income or taking money from another investment, but it is usually thought to be an amount that is larger than your usual discretionary income.
This strategy may not have been discussed much when I first started investing but ever since I came to know about this strategy new investments have been made in this strategy but keeping the previous investments intact.
Even if you had not noticed DCA, it is not new, and it does not mean that it was not being discussed, merely because you are beginning to notice it being discussed more and more.
It is also quite likely that there were various DCA strategies being followed prior to even calling it DCA... but yeah, if we have a lot of peer to peer circles from all around the world, there are are a lot of things in which "we" are able to discuss, that would have been discussed in different ways or maybe it had been more difficult to find niche circles of people to talk about niche topics, but the interwebs allow such niche discussions between people from all parts of the world rather than just talking with your grandparents, parents, siblings, kids and neighbors. .we can go into further circles of discussion..
As I have invested in Bitcoin in the past by following the DCA method from there I keep investing for longer and accumulate more Bitcoins. By adopting this DCA strategy alone, adopting DCA strategy definitely increases investment interest.
Good luck with your investment, invested in the old way now investing in the new way hope you keep the investment for long time. Finally one thing you said that investing in DCA method increases the interest of investment which is applicable for new investors at that time new investors get some money profit as they invest. That is, a small amount of profit encourages them and increases the demand for investment.
It is kind of funny how people will sometimes buy more on the way up rather than more on the way down, which is referred to as the wealth effect... and we cannot really blame anyone for feeling richer and spending more when their asset goes up, even if it is ONLY going up "on paper" since no cashing out is necessarily being done and yet there is still a wealth effect that contributes towards the more spending of money, which also might include investing.
Buying regularly and buying with DCA are different. I mean, regular buying can be done at any price, whereas buying DCA takes advantage of another dip to buy once you see a correction.
That is not true. DCA is buying at any price based on your budget.
Buying on the dip is buying on the dip, and it is different from DCA, even though buying on the dip can be combined with DCA, which may or may not end up in better results than more strict DCA buying.
I doubt that there is any need to really quibble about definitions as long as we are attempting to describe what we are doing or to understand what we are doing, so if we are communicating with terms but meaning different things then that could be problematic, even though we should attempt to be clear about what we are talking about so that others mostly understand what we mean and are better able to consider whether and how to respond.. but yeah we do frequently get into semantical discussions in this thread.
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I guess this is mostly applicable to traders with relatively large capital base,for a small time trader with minimal capital I don't think this is quite plausible or sustainable even
I'll suggest scalp trading especially for committed traders with little capital,yes there are risks associated with it but with proper and in depth technical analysis,one can circumvent those risks and grow capital even to the point of engaging in long-term trading
We are not talking about trading here. There is nothing wrong with trading, even though it takes more skills and or experiences to put it into practice, and even though it is also a way that people could end up losing a lot of money, including losing all of their money, even if the BTC price is generally going up... so frequently in bitcoin, there is no need to trade it in order to potentially receive stupendous gains, especially if you have an investment timeline that is 4-10 years or longer. If you want to talk about trading and to promote those kinds of behaviors, then you should do it in some other thread because trying to talk about those kinds of skills here would likely bring quite a bit of confusion and distraction from our main topic, which seems confusing enough in itself, and perhaps part of the reason why this thread already has 260 pages.. .even while we are trying to either avoid or minimize any needs to refer to trading.. even though trading frequently comes up... yet mostly from members who are deviating rather than first trying to stay within this thread's topic..
