Topic: Buy the DIP, and HODL! - page 36. (Read 121732 times)

even without reading the whole thread, a simple knowledge of what trading is and what DCA is would show that there's no point trying to create a comparison of any sort about Bitcoin investment with use of the DCA methord and gambling your funds through Trading.

Every two slide of this thread has given enough information as to why DCA is a great approach of investing in Bitcoin and anyone that's still following this thread and still thinks otherwise is either a full time traders that is still trying to come out from a believe system that he's stayed used to for a long time or is one that knows the truth but is not ready for long term investment and so creates reason to justify whatever believe system he's held in to. There can't be a better alternative than the power of compounding your Bitcoin through the DCA methord. Even when you're in a slight profit and after selling you earn above what you've invested, you still have to face the reality of two options which is iether to buy at a much expensive price when Bitcoin might have gone high or to keep on waiting for a DIP before eventually buying which might take too long to a point of spending off your capital. Which is now more safe to do? Put yourself in that kind of tight angle or overcome the urge of trading your investment and see yourself at a good profit in the future?

Hahaha, your right buddy! but its impossible to read the entire thread from the start to the end. One might just get into so many discussions and be confused. However, they should take a sneak pick of the DCA thread and see what they've been missing all along. DCA cannot be compared to Trading. Like the difference is obvious so anyone who would think of comparing them both has no knowledge of Bitcoin investment, and regret is what he should be expecting if he has already started his investment.

Emotional stress precisely.

We don't have to keep predicting and finding estimate of the price before accumulating. That is the main essence of DCA, we can choose to buy at any price as long as we keep buying. Keeping an estimate in mind may fails. As an investor who is excepting to buy only when your predictions kicks in place you may end up not buying at all if you don't get meet your actual prediction. Imagine a case where an investor wants to buy at 60k by next month, it looks realistic, yet the price may be above 60k by next month and he will end up not buying at all since its above his benchmark.

If eventually the market dips after buying aggressively it doesn't change a thing because it is expected that the investor is holding it for a long time. Its the same thing like buying through DCA and holding it for long. As long as buying aggressively does not affects the investor in anyway or his DCA then its not a problem at all. The market will retrace back with them and more profits would be made. One of the advantage of buying aggressively is that you will reach your goal a lot more quicker and gives an investor more space to set another goals or diversify.

I think those who compare DCA investing to trading and gambling may not have even the slightest understanding of this investment yet. I would instruct them to read this entire Buy the DIP, and HODL thread  thoroughly so that they can gain thorough knowledge about DCA investing (as it has been mentioned here hundreds of times that a newbie can start investing with little knowledge of Bitcoin and little money). But they are right on one point that trading can be compared to gambling as there is maximum risk and profit uncertainty in trading just like in gambling. Through DCA method to avoid risk and reduce stress, we commit to holding bitcoins for a long period of time by buying and accumulating bitcoins over a period of time using a fixed income source.

This is good
Been surprised is better than been dissapointed
I try to reduce expectations so I would feel more excited when my expectations are beaten.


What's the essence of DCAing in trading when you still going to Sell.
The aim of trading is taking quick profit not accumulating and really doesn't require implementing DCA.


That's why it was an hypothetical scenario.
We can make prediction of plan but there are many variables at play and to estimate some of these variables are kept constant.
Aggressive buying is a good approach I must say but what about the available disposable income isn't enough to cover for such aggressive buying
Or what happens when there's a strong dip after going aggressive?
Mindset comes in play, the weak sell some, some individuals continue DCA and others just go again more aggressive.
But I believe going aggressive always gives room in wanting to collect some profit early.
Just saying.

Surely the times when the cashflow are better, I think there is need to accumulate aggressively in regards to increase ones portfolio. because having an 8year plan of $50k investment required facilitating the accumulation process  since bitcoin is volatile, because if a person was not able to increase his accumulation in the 8years intervals, he might end up buying lesser amount of bitcoin. so sometimes the fuck you status could be arranged in somewhat a way that when there is an increase in cashflow, the DCA should be increased to buy more during its early stage when it's less than increasing the weekly DCA when the price of bitcoin is high. It is important to leverage on bitcoin during its early stage because 8 year ls certainly a long time for BTC to make huge changes.

What am trying to say in essence is that if there is an increase in cash flow maybe during the beginning of the fuck you status like the 2024 of $71 DCA. Surely the table maybe an inverse of maybe $152.19 DCA per week in the early days , which means the bigger investment in a weekly. And if the cashflow is has less then we can begin to invest in a way that it will balance with our current status of discretion.

Hopefully, none of us are claiming to know anything or trying to guess, especially short term BTC price movements, so if we generally have some ideas that bitcoin prices are likely to be higher 4-10 years or longer as compared to what they are today, and we also have a general expectation that the amount of the BTC price increases is likely to be at least better than the debasement of the dollar, then perhaps it would be better to have some allocation in bitcoin, including money that we don't mind tying up for 4-10 years or longer.

I doubt that we are really predicting, yet we can still try to figure out our position size in such a way that we realize that the most that we could lose is 100%, and so we just kind of hope it works out in our 4-10 year or longer investment timeline..and that we will be in better position for having had invested into bitcoin as compared to if we had not invested into bitcoin.


Of course we have a couple of changing variables, namely the amount of your disposable income and the expected change in the BTC price, and so I consider that I put a somewhat base case, and of course the table could be more granular such as twice a year or quarterly or even monthly, and surely there can be value in each of the cases, and you can get some general  ideas where you might be if your investment timeline might be 10 years but you can see if you are still on track after 2 years, 5 years, 8 years etc... .. so you have the amount that you put in and you have the uncertainties of how much BTC it is going to get you, too.

So if I put mmore of  base case, then you could have scenarios that are worse or way worse in terms of the BTC price, or higher or way higher in terms of BTC price, and your results are going to be different under each of the scenarios, and so surely once you create one table, then future tables become easier, and you could also create tables in which you link back to another field so that you change one or two things and then the whole table result change based on your one or two changes.


Sure your results are going to change if your disposable income gets worse, and so you want to try to be somewhat realistic in your projections, and if you really value building your BTC holdings, you may well may try to figure out how to have back up plans if you lose your main sources of income.  Of course, folks tend to want to make as much money as they can for as little effort as they can, but sometimes, opportunities are not very available in some areas or for some people.. so you should be attempting to be realistic in your projection, and if you have no ability to really expect to be able to increase your amount of contributions in accordance with the expectations of the table then you either need to make the table more conservative or to increase your employabiity and/or cashflow and/or decrease your expenses.

Some things are more feasible than other things, and if you are making an unrealistic table, then you are likely going to end up not meeting the expectations of the table, so probably you have to figure out what  you are going to put, and of course with the passage of time, the projection of the table can get further and further out, and you can adjust it both in terms of what has already happened but also if your expectations might change based on either positive or negative developments, and if you create tables with overly rosey scenarios without also considering conservative scenarios, then you are likely merely fooling yourself and so there is value in regards to not getting your expectations  up too much about things that might be outside of your control or your abilities to affect...and even if you have good abilities, you can sometimes still end up with some bad luck, too...so there is value in trying to account for those kinds of matters when you are projecting out scenarios, and perhaps starting with a base case projection and then perhaps creating alternative tables with better case scenarios and worse case scenarios.


My table gives the average for a whole year, so in some sense my table is not very representative of a lot of the ups and downs that might take place within any of the years, and so the more scenarios or the more granular that you try to be in your projections, then the more variations of tables that you might need to create in order to see how they might play out in relation to your own personal circumstances...while considering that some table projections will be more realistic than others, and also that there could well be periods that the BTC price shoots up 5x to 10x and then comes back down to close to where it was prior to shooting up, so the average for the whole year ends up being way less than 50% of the top prices for that period of time.

Yes, we know investing in DCA method is much less loss and less risk. However, if your friend makes such a comment, there are some similarities between trading and gambling. Because if gambling is played a few times then there is a possibility of becoming an addiction, and later on you will be interested in gambling, just like if you start in trading then you will be attracted to trading later, in that case you will lose money there. As we know, investing in Bitcoin is the most profitable compared to trading. If you start trading then start in bitcoin it will not let you face loss, but you will get profit from here especially use DCA it will help to reduce risk all the time. We know it's always better to use DCA as a smart investment.

The excitement that occurred in the US election was caused by both candidates Kamala Harris and Donald Trump openly declaring their commitment to supporting the growth of the Bitcoin industry in the 2024 presidential campaign. Regardless of who wins, Bitcoin price will benefit from the US election. Support for Bitcoin from regulatory changes and adoption at the government level and increasing interest among the public further strengthens the belief that Bitcoin can be a profitable crypto investment option. This can create an opportunity for Bitcoin to break through higher price levels and open up new opportunities for investors to continue growing.

Bitcoin has become an important issue that cannot be ignored in the context of the upcoming election, the positive attitude shown by the government towards Bitcoin and supported by various other important events such as the halving that occurred last April will pump the emergence of a bullish pattern in the fourth quarter. Optimism should always arise in Bitcoin investors regarding the long-term prospects because the potential for price increases is very high in the future.

This is what I really like. because I find it difficult to organize in detail if our planning is for the next 10 years. In your explanation it is quite good especially when our cash flow improves we can increase the budget in the following year compared to the year we have gone through. It seems like this is a pretty good example with a budget that can be invested in bitcoin either $50k routinely with a target of 8 years or with a lower $25k with a target of 5 years.

I also agree that sometimes a person's income can increase every year and cash flow can also be bad. But if cash flow is bad or we lose our permanent job because we are fired from our company, what is the right step to take at that time.

Regarding pricing, it might be different because we also cannot predict the price of bitcoin for the next 8 years. It could possibly go up to $500k because supply is limited.

Absolutely right, and DCA investing solves the problem of trying to guess the bottom of the price.
Related story: recently a friend of mine started saying that gambling and trading are very similar, and he claimed that they are unpredictable. I just opened my mouth to object, and suddenly realized that the price of Bitcoin is really impossible to predict. It is easy to tie events after the price has moved, but no one knows the course of the price in advance. This is the difference between guessing (trading) and smart DCA investing.

Investing $50k into bitcoin over 8 years should totally be within reach of some one who currently might be able to invest around $71 per week with perhaps some anticipation that over the coming 8 years his disposable income will increase and he would be able to invest 10% more into bitcoin each year.   It would look something like this.



Of course over an 8 year period of time, a person could have a regular DCA amount, but also there might be times in which cashflow is better and/or times when cashflow is worse.

We also cannot really be sure how many bitcoin that might be accumulated through such a strategy, and perhaps we could attempt to project that out too by adding columns in regards to the anticipated bitcoin price in order to get some ideas regarding how many BTC that we might be able to accumulate of the situation, yet we can ONLY approximate, and it might look something like this:



I understand that some folks might consider these numbers to be overly pessimistic (bearish), and so you can create your own chart and put your own estimated numbers in there.  You can also attempt to be more granular about it too, if you like, yet from my own experience, there can be some value in regards to attempting to be somewhat general in future projections and then just tweak them from time to time as time passes (such as where the future becomes the past and then the numbers become known).

I will say to those who are late to enter from now on is ZOOM OUT this link https://bitcoin.zorinaq.com/price/.

Even though I understand your point, I think your choice of words are too harsh. Remember that we have many players in the Bitcoin market and weather you chose to believe it or not, there will always be people with various interest and expectations from the market and by extension, their action will shows that and it all depends on the level of information at their disposal. You are buying through the DCA method or any other method and holding for long simply because you are aware of the benefits and you decided to act accordingly. There are people that are yet to learn about the DCA method or any of the methods that makes buying Bitcoin easier and are doing something different, that does not mean that they are idiot.

Looking at the price always is indeed a bad practice that should be avoided because it has a way of stealing the peace of mind of mind of the investor and shows that the investor is not much confident in Bitcoin or is not thinking long term. However, some persons using buying the dip method can also check price one in a while to know where price has reached if they do not want to use limit orders. We cannot condemn them for using this method provided their plan is to get the best market price and HODL.

A person vouching for Bitcoin price prediction is not wise. I can say nothing but idiot to anyone who waits for Bitcoin to fall and sets a certain time. The reason for this is very simple, it is impossible for an individual to predict the Bitcoin price. If anyone predicts for sure then he is a hypocrite, we can expect from Bitcoin but not the future.

If a person has the mindset of being an investor then he should not pay attention to price forecasts and prices. Because an investment goal should always be towards investing. They never look at the price. That's the mindset we get from a trader, a trader's job is always based on price. You cannot be a good trader if you do not understand price movements. You may say, because they understand the price movement, it is easy for them to predict, but you have to understand that an experienced trader also faces losses many times. That is, it is not possible to predict for them. So if you want to become an investor, you need to change your mind-set like a trader and focus more on investing. Always be interested in buying instead of waiting for the price to fall.

I don't think we will head to a massive dump at this very critical stage of bitcoin price movement because i don't see anything that will lead to it experiencing massive dump now since many investors are better hodling more than selling because what i see now is that most investors are taking advantage of every single DIPs that comes up that is why the price is not experiencing extreme DIPs or pumps. Even as we are waiting for the price to get a new ATH before the year ends but as we are hoping for the best in our investment, let us also prepare for any aftermath of it. The US elections will have impact in the price but we should not listen too much on any news that will come after the elections because it will just hover for sometimes and disappears.

These are the thoughts and words of a trader, not a bitcoin investor. It is appalling that some people that pose as investors still possess trader's mentality to a great extent. waiting for the price to dip before accumulating bitcoin is a trader's instincts, else how do we explain trading apart from waiting for the best opportunity to enter the market in the right price position and possibly exiting when short-term gains are achieved. You can see the correlation between such mindset and trading mindset. It is high time people give up on the trading mindset and pickup investor's mindset which is aimed at accumulating more stashes of bitcoin and targeting at accumulating a definite quantity of bitcoin instead of just focusing on the pricing as determinant factor for accumulation.

Dips are rare opportunities to accumulate more bitcoin at low prices when it presents itself. Waiting for it entirely is a bad investment practice and you can miss out on accumulating good stashes of bitcoin and increasing your portfolio regularly. One funny thing with hoarding fiat and waiting only for the dip is that you might end up spending the money on frivolities and not finally actually buying bitcoin with it.

If you gamble, money can be lost at any time or there is no security at all, similarly if you invest in these coins that are in the market, but these coins can be lost from the market at any time, so investors are usually made aware of this to keep their money safe. Where you invest your money is of course up to you, but those who are experienced investors always give the right advice from their own experience and think of others and those who take this right advice have a good investment future and those who ignore it regret in the future. When it comes to long-term investing, I always tell investors to take Bitcoin and trust Bitcoin. Just as other coins in the market cannot be trusted, Bitcoin can be trusted very easily and at least have faith that Bitcoin will not disappear from the market.

What usually people look forward with these event is possible price pump to come especially if the declared winner is a pro bitcoin candidate. There's provably a hype will be created due to that matter since somehow it can trigger interest to hold because people is speculating about positive effect that might happen with those winning events made by the politician they like.

People need to understand that the hype created by this event would fade out especially that the politician is not true to the words they are campaigning and they move in different path like they don't want deal with it to discuss anymore.

But investors should not give any damn to stress out their selves since its better to continue their accumulation rather than wasting their time to look forward on things or events that cannot bring any good to them.

I keep asking myself what is so special about US election that's making so many people put so much hope on it to make bitcoin price surge high? Bitcoin was already predestined to keep making new highs on its own. So I don't really understand the logic behind why some people still believe that US election is going to do bitcoin great favour. Fuck the US election, bitcoin is gonna break new boundaries and set new ATH. With or without US election. Bitcoin is a great innovation on it's own and it will do wonders even if US election wasn't there. So let's free our minds from this fucking idea that bitcoin is depending on US election to reach a new height that hasn't been witnessed before.

Bitcoin is for the people, and it wasn't created with the ideology of making some people feel important and others less important no. Many countries have had elections, but I didn't see or hear much hype about them and bitcoin as the way I'm hearing about US election and bitcoin prices. With or without US election bitcoin will do very well, so let's accumulate bitcoin because it's bitcoin and not because US election is closer.

If you see JayJuanGee as someone who doesn't encourage bitcoin investors to be smart investors when they are accumulating bitcoin, you are wrong, and I disagree with you. JayJuanGee has severally encouraged that newbies can lump sum in bitcoin so that they can increase the size of their bitcoin and also maintain their DCA strategy to allow them to take advantage of the market. JayJuanGee has also encouraged old and new investors they can lump sum in bitcoin if they get an extra payment or bounce from their place of work so that any investors that have a shitty source of income will not mess up their bitcoin accumulation plan. I see all these as a way of being a smart investor, so I don't know where you are getting the impression that JayJuanGee doesn't agree with someone becoming a smart investor. JayJuanGee has been accumulating bitcoin for so many years before some of us started accumulating bitcoin. His experience and advice, and what we are learning from this forum and this thread particularly, is helping us get better with our bitcoin accumulation journey.

That is the more reason why JayJuanGee always advises old and new bitcoin investors to stick with investing only in bitcoin. It will be very hard before you lose your money in a bitcoin investment as long as you don't sell your bitcoin at a loss.