Topic: Buy the DIP, and HODL! - page 358. (Read 124182 times)

It sounds like you are misreading what I said.. and that is on you,.  I stick by my original comments, which are largely responding to Wind_FURY's various somewhat seemingly ongoing and persistent (subtle and sometimes not) arguments against DCA and seeming attempts to suggest that there is some kind of objective best in regards to waiting and buying on dips or also dumbedly trying to suggest, as you seem to be doing Publictalk792 that whatever BTC accumulation choices are made are all relative and blah blah blah bullshit. 

We all know that the DCA is the best strategy. But Buying Bitcoin when its price is down can be a good strategy for both new and experienced investors. This means buy it when the market is not good and the price is down.By doing this people can get advantage of the up and down in the market and can get more Bitcoin for having money. But it is is also need some experience like which is the right dip to buy.
Basically different people have different minds of investing in Bitcoin. Some use DCA which is a simple and good way to invest.And some people have more money and have more ability to take risks. They can choose to make one big investment in once. The best strategy for someone will depend on their goals how much risk they can take.

Yes.  And some ways are better than other ways, and as you know we are not really talking about trading in this thread or even proposing it as a better way for anyone (absent those who build a specialty or who want to spend time in this kind of activity - maybe like a profession), so no need to confuse matters more by suggesting that we might be talking about those kinds of things trading things as if they were even comparable or something that most normal/regular guys should be considering in terms of the bitcoin accumulation journey.
 
The most basic thing that we are talking about in this thread are the various ways to accumulate bitcoin, and so we have some agreed-to presumptions that we are considering various ways to attempt to accumulate BTC in the ways that are best tailored for each person.  So if we are talking about DCA versus buying on dip versus lump sum buying, then I still am gong to suggest that DCA tends to be the best for the newbie until he gets to a certain stash size.  However, lump sum could be equally well, if someone has a lump sum to get started with a lump sum, and then if he is a newbie and has not reached his accumulation strategy, the he should supplement the lump sum with DCA and buying on dips. 

Where we likely disagree the most, is my assertion that buying on dips is likely ONLY going to become a superior strategy after the person had already accumulated BTC, whether he did that buy DCA and/or lump buying and/or by some other way.


It probably depends on what you are trying to achieve.   I am not arguing the attempt to achieve a strategy that is the most profitable, because that likely leads to gambling behaviors. I am mostly advocating that guys attempt to be as aggressive as they are able to be in their BTC accumulation approach without fucking up too much by engaging in gambling, and yeah, that is not easy to achieve because the devils of the details of the actual application can sometimes not be easy to apply, including the more importance that the emergency fund becomes the more aggressive that a guy ends up being, so sometimes guys will end up screwing up when they end up carrying out part of a best practice plan and not carrying out another part and they might claim they are doing one thing, but they might not be making sure that they are balancing out the various factors and end up causing themselves too many emotions or perhaps waiting for dips that don't end up happening, or other ways of either buying too many BTC or not buying enough.


I prefer action and getting started, and figuring out a strategy that works for you, and if you are new the best way to get started right away is to start DCAing and to figure out your various details in terms of the 9 factors that I frequently like to point out in terms of the areas of consideration that would be built during the time in which the earliest stages of BTC accumulation is followed, which would be DCA to start.


Yeah, but who gives any ratt's asses about you?

You have already had nearly 8 years to tailor and hone your BTC accumulation strategies, so I presume that during those nearly 8 years, you have already accumulated some BTC during that time..,. I am sure that I have already presented to you, several times, how a DCA strategy would look for you, so hopefully whatever you are doing is at least in the ballpark of the performance of a DCA strategy. 

I don't know why I have to keep repeating these kinds of points, which would be that once you have spent time accumulating BTC for a while (such as nearly 8 years) then you are going to be in a more free position to attempt to strategize your BTC accumulation in accordance with the BTC that you had already been accumulating.


Am I suggesting that there are not going to be corrections? It sounds like you are working on attributing arguments to me that I have not made.


Who gives any shits about various macro factors in trying to figure out what to do or what not to do? 

Hopefully, many of us are able to figure out our BTC accumulation strategies based on our own situations rather than getting worked up about some kind of macro factor influence on bitcoin that may or may not happen.

In other words, we know bitcoin is considerably volatile and we do not necessarily know in which direction especially for the short term, and hopefully we are attempting to prepare ourselves for either BTC price direction, including  extremes that might take place. 

Waiting for some kind of a macro-crash seems dumb, because there is a need to be prepared for up, and if you are not prepared for up, then you are ONLY preparing for one direction.  There are ways to prepare for either (or both) directions, believe it or not.  DCA allows us to prepare for either direction and not overly prepare for one, and to not neglect making sure we are buying regularly.

How is your waiting for $20k going from September/October?  Yeah, you are still waiting, and maybe this time you are waiting for $30k instead of $20k.

Maybe I should give an example, so guys do not conclude that I am unfairly picking on you? 

If you have been into bitcoin for nearly 8 years, then you may well have been accumulating ONLY $10 per week, which would be $520 per year and less than $4k invested into bitcoin.

So besides investing $10 per week in bitcoin, then maybe you have been accumulating cash since August 2023 since you were so busy waiting for further down, so since August maybe you have accumulated nearly $200, so you can use that to buy on the dip, rather than having had bought all along.


For sure, there are going to be times in which we are going to get stuck with smaller sized UTXOs; however, I believe that the most recent unexpected and persistent increase in BTC transaction fees should have had taught us that we need to b attempting to prepare ourselves in such ways that we do not end up overly complicating our own situation by creating a bunch of small UTXOs on private wallets that might become unspendable at certain periods of time in the future if we end up experiencing some of these persistently periods of high transaction fees.  There are certain folks who consider that our recently high transaction fee period was a kind of an attack, but it is still not really clear about how durable such attacks are, and or if there are going to be actors in the future who are going to be ready, willing and/or able to persist with such practices that contribute to long periods of persistently high BTC transaction fees.

The examples and suggestions that you say do look good and make sense, but on the other hand I don't think that Bitcoin investors are so stupid in using their money for several things. Including buying for long-term investment or buying to achieve short-term profits and the like, because from several well-known investors who have invested in Bitcoin very often, we can also take the example that they also often use their money very wisely in any case. So those who sometimes forget to make their Bitcoin accumulation comfortable are novice investors who are so excited to invest in Bitcoin that there are one or two things they accidentally forget.

You need to correct me then maybe if I'm wrong, Bitcoin DIP happens in every 4 years cycle? If so, then why wait to catch the DIP instead of also making use of the DCA approach. You still don't know the break point of the DIP before Bitcoin surge, you might miss out. Consider the option firstly by starting the Dcaing then during the DIP any point you consider fit you buy wholesomely to hold.
We are always left on our own free will to choose the strategy but in the process we get to choose one which will put us in a better profit despite not being a fan of it.

I'm surprised, expecting a DIP in this 2024, I do no think so. The market is currently recovering and I don't think we should expect anymore DIP. The DIP which we have been anticipating is now at this price for those who earlier missed buy at the $15k+, $20k+ and $30k+ as long we are still below the last ATH, I consider it a good DIP for many investors to come in.

I taught this thread is about buying the Dip and Hodl? So why would they regret it if their intentions were to buy bitcoin and hold it for so long? Only those who went in for the quick gains would be disappointed. Any investor who is reasonable enough knows he is buying more Bitcoin because of what the price will be at the end of the year or in the next five years. I believe so many people were smart enough to understand that Bitcoin will not follow the hype of the approval of the bitcoin ETF to move high. In a logical sense, we were expected to see an increase in the price of bitcoin to about $50,000 after the announcement. But bitcoin is not a shitcoin it maintains its pattern and would surpass that price at the right time. I am expecting that before the week ends, it will go up to $50,000.

I see this as something that will make an investor not accumulate his Bitcoin comfortably because the investor will be saving the fund that He/she is supposed to use and settle his financial challenges and use it to buy the Bitcoin dip. Instead, an investor can reduce the amount of money he/she wants to use in accumulating Bitcoin through the DCA strategy and save the remainder to use and buy the Bitcoin dip. For instance, if Johnson is supposed to invest $50 every week in Bitcoin, he can invest $40 and save the remaining $10 to use and buy the Bitcoin dip.

The market at this point require some level of flexibility to be able to navigate through because the uncertainty are just too much. Take for instance, many people jumped into the market with the hope that the ETF approval will make price to skyrocket. Unfortunately, those who did this are probably in tears because some of them will sell and take their losses while some will still be holding hoping things will turn around.

Because of things such as we have seen in the market lately, using the DCA method is surely the best practice because those using it might not be caught up in the funny market behavior. They would have already entered some of their positions when the price was still very low and will not panic when the ETF minor pump and huge dump happened.

Anyone still doubting the effectiveness of the DCA method is not helping himself. Buying the dip is good provided the intention is to hold for long. Some people who bought around $45,800 thinking that was the dip are already seeing price go lower and continue to go lower. That means what seemed like the dip is not actually the dip.

I believe that if an investor see bitcoin as what he should have and make it part of his life that he has bitcoin investment even in old age, it will be more easy for that investor to forget about selling all his bitcoin portfolio when he has reached his bitcoin target. Instead he will only be taking little profit time to time as the price of bitcoin increases over time, to diversify into other asset, just like what you use to call the maintenance level. It is investors that don't have the foresight of value that bitcoin can add to their lives in future, that thinks that bitcoin investment is only to accumulate to an extend and sell majority of their bitcoin portfolio for fiat.

Yea, you are right. We don't need to be discouraged in accumulating bitcoin and increasing our portfolio size because of the current high transaction fee or high transaction fee in future. This is anyone buying bitcoin in little amount using DCA weekly, should pile up his bitcoin in an exchange until it has reached from $500-$1000 before he makes transfer to his private wallet so that UTXOs will not be smaller.

High price shouldn't be what will discourage any newbie who is still in his accumulation phase, as long as he is using DCA method. The only thing that should make a newbie not to buy for that week should be because he doesn't have the money to buy at that time and if he has the money next week, he can double his DCA amount to two weeks purchase.

This is why it is good that an investor should have prepared himself on how he can accumulate bitcoin at the dip, when he is using DCA method to buy regularly, by saving some money aside from his bonus or unexpected funds that come his way, so that he takes advantage of the dip when it comes and use such funds to buy bitcoin at discount price.

Now just to wait for a dip to hodl, and I right?

Feels like we've been starved of dips since March 2023, when price corrected from $25K to $20K, which was an incredibly tasty dip. Since then, we've had $30K to $25K that barely reached -20%.

All I can say is that I'm looking forward to more dip buying in the near future. Hopefully 2024 will be better dip buying experience than 2023 was!

For newbies, it is better that they get started by buying bitcoin at the current price using DCA method to increase the bitcoin portfolio size and shouldn't wait for the dip, especially those investors that have little amount of bitcoin in their portfolio. JJG is someone that he giving the best way and method that a newbie can start his bitcoin journey to a greater height, even though he has reached his bitcoin target and is even in the right position to wait and buy at the dip.

@OP, I believe that your bitcoin portfolio size has reached a certain height that you believe that waiting and buying at the dip is the best strategy for you, but this is not the best strategy for most of us that are still new in our bitcoin accumulation journey and this is why you see that JJG is emphasizing on DCA method to guide us and reduce the risk of tension in the market, because bitcoin price is unpredictable and nobody knows when the dip will come. The rules is that new investors should keep on accumulating with DCA method not to distract themselves with the volatile nature of bitcoin.

Yes, it is true, and on average this strategy is more widely used and recommended for those who do not have large capital at one time so it is clear that the existence of DCA really helps all circles, with this strategy now not only people who have a lot of money can be involved in the accumulation of bitcoin but people who have medium to low finances can also be involved because of the system of putting the amount periodically and also with a low level of risk.

On the other hand although this is very good but I think it will not always be that easy to be able to realize dreams at the end of the engagement, you must really have very good planning and management of your bitcoin accumulation, even though you use DCA which as we know this strategy is easier but on the other hand if you don't have good management of the following finances by still not being able to be consistent in doing it I think you will not be able to get the maximum results, The key is to consistently put money on bitcoin periodically, it can be once a week or once a month, it's all up to you if you have been able to plan everything including by preparing a budget for your DCA allocation at any time then I think everything can go well. What must be considered and prepared is, in terms of dividing money, first separating the money for living needs and another thing is that you must also have personal savings outside of your bitcoin investment, the reason is that you will never know what will happen in the future, it is very possible that you experience something unwanted that forces you to spend money, not infrequently people who fail in their DCA method because they do not have good planning and preparation.  So if you have a personal savings account, if something unexpected (that requires money urgently) happens, you will not disturb the money for your bitcoin accumulation budget because you have prepared a personal savings account to handle it.

DCA is an effective investment strategy in reducing the risk of loss. To maximize profits from the investment you make, you need to implement the DCA strategy more effectively by doing it in a disciplined manner and determining the right investment time. The increasing price of BTC will certainly test your courage to apply the DCA strategy consistently, but who can predict market movements, your worries about the Bitcoin price are still gray, maybe BTC will continue to increase and you have lost your opportunity in that period.

Timing in the DCA strategy is very important to maximize profits, apart from investing at the same time periodically, you can apply flexibility in this strategy. If you feel that price changes will occur, you need to change the time of investment. If you usually invest every week, now try to do it every month. If no correction occurs while you are waiting, you can immediately increase the investment amount because it is likely that the BTC price will increase again.

Admittedly, the DCA strategy helps investors accumulate bitcoins. If you invest in the DCA method you are accumulating bitcoins regularly. Just take the risk to accumulate bitcoins first and then invest in regular DCA method and your dream will come true. Investing in the DCA method only saves a lot of investment according to the average of the previous purchase and the current purchase of Bitcoin. This is why the DCA method is so popular with investors that thousands of investors have found their success.

But in trading and investments, there's always more than one way of doing things, no? It can't be just YOUR strategy that's profitable, but a multitude of other different strategies. You prefer to DCA, and that's OK. I prefer to save, and wait for a discount, knowing that Bitcoin cannot surge up forever. Always there are corrections and crashes, and it would be laughable to believe that macro-economics will never have any effect on Bitcoin. Because as Bitcoin matures, it has become more and more entwined with legacy markets. March 2020's crash was proof of that.

One thing we must know about the DCA strategy is that it doesn't mean we are going to buy Bitcoin at a low price all the time. Since we have a fixed amount to invest in Bitcoin at regular intervals it does not matter whether the price of Bitcoin is high or low. As a result, the investor will be buying less of Bitcoin as the price is relatively high, and buy more of Bitcoin as the price goes lower. For instance, an investor can decide to invest in Bitcoin with the DCA strategy. His first buy can be 0.0373 BTC, and his second buy 0.0333. The DCA strategy can make investors pay less to accumulate Bitcoin.

I think using a DCA strategy is a good way to invest in Bitcoin or other risky assets. With DCA you set a schedule to buy regularly. This helps reduce the risk of buying when prices are high and lets you buy when prices are lower.It is a more balanced and discipline way to invest instead of trying to guess the best time to buy.
And matching the investment plan with paycheck can offer a practical and easy way to put money into Bitcoin. This guarantees that people are investing an amount that they can afford and not putting their everyday financial requirements at risk.
And by continuously purchasing Bitcoin at different prices the average purchasing price will likely decrease. This will be good and the entry point will change.And keep in mind
that the past performance is not indicating of future results and we know that cryptocurrency market is highly unpredictable.

When you use DCA method to buy bitcoin, no price will indeed be too big for you because that’s the reason behind the DCAing. For many times if you’ve started DCAing for long, let’s say maybe when the price was less than $20K and you’ve been consistent with it maybe weekly, monthly or every quarter year, you would have gathered a lot of bitcoin that when you still buy at the current price, the average price it would have been that you bought each of the bitcoin will still be less than $30K. With this, you would have accumulated more bitcoin than the person that is still waiting for the price to drop to $40K to buy the dip. If the price dips or doesn’t dips, you would have reached your target or still look to buy more to lower the average price of each bitcoin in your portfolio more.

If anyone has been in this space for a very long time, they should by now know the relevance of DCAing over other methods that you can use to accumulate bitcoin. You don’t need to fear or panic using this strategy to accumulate bitcoin, just be focus on what you want. The market is very volatile and no one can tell the direction of the market. The market dippings but no one can tell when it will, just a news can cause that which no one knows when such news will break into the market. When a market dips while accumulating using DCA, it is still a good time to buy more if you can because such opportunities come unaware and can help you increase your savings more two times better than the times you do buy using the DCA approach. DCA still remains the best approach to accumulating bitcoin as it works for all kinds of people.

No one knows when the price will fall, stay at that price, or even rise. Using DCA means there is a schedule that we make for buying Bitcoin. There are many ways to determine this schedule, such as he can use the time to buy once a week, once every two weeks, or even once a month. The important thing is that he regularly buys Bitcoin on his schedule and saves it.

Many people spend once a month investing in Bitcoin to fit their salary. This method works well for those who work in offices because they can adjust their salaries and allocate their salaries according to their location. They can determine how much money to use to invest in Bitcoin. The important thing is to stay within the amount of money you can afford because you must still meet your daily needs.

The price this week can often be lower or higher or only slightly different from last week when we bought. And with many purchases at many prices, our average purchasing price will decrease. That is our advantage.

When buying through DCA, you do that at different price of level, both price increase and price decrease. No price of BTC is too high for investors who are buying through DCA. When you say that now price is over $40k and it's too high and you will wait for price to drop, do you know how long it will take for this happen or if it will drop to your range of expectation? Those who are waiting for the price of Bitcoin to drop below $40k are still waiting and no one knows how long they will keep waiting. It might take them forever or it might not, who knows? In summary no price is too high for DCA method, you just keep buying at different prices.