Topic: Buy the DIP, and HODL! - page 368. (Read 123490 times)

Yes, everyone earns more or less ‍and every person tries to save a minimum portion of his income. There are many who can deposit their money in a financial institution without investing it elsewhere. After they have done so for a long time, when they get their money, it loses value with inflation. Bitcoin is definitely a good alternative for them. Investing in Bitcoin will result in both investment and savings at the same time.

The amount that a person keeps into his savings every month, if he keeps it regularly in bitcoins, then that person can increase the investment several times over the money. However, the benefits of investing in Bitcoin are much greater than those institutions can provide for long-term investment. In this regard an investor will not only benefit in terms of money but also make his savings into a long-term asset.

Hopefully each of us consider keeping track how much we put in versus how much the holdings are worth, so of course, there are ways to do that with Excel spreadsheet, even though maybe some folks might not be accustomed to those kinds of programs, and I am not sure if we can presume everyone participating on this forum and in this thread has regular access to a computer.. even though more and more people do have some kind of computer access.. and some work with those kinds of programs on mobile devices...

But there are ways that you can keep track of how much you put into BTC and see the various price points about whether you were negative or positive at any given time and then how much your average cost per BTC is and how much your BTC is worth at various points relative to how much you had put in. 

Sometimes there can be dilemmas about what to do based on that kind of detailed information and seeing how it changes with the passage of time especially when profits might go up or down a lot, and then when it is going down or appears that it might go down, some guys start to erroneously believe that it would be good to sell some rather than continuing to accumulate.. but of course, what to do are personal choices that can end up having a lot of ramifications down the road for guys who might have continued to stay into bitcoin and also continue to buy on a regular, ongoing and persistent basis.... whether continuously, buying in a DCA way and/or buying on dips or a combination of those kinds of ongoing buying and accumulation of BTC practices.


I am glad that you are going through a lot of the calculations, considering your cushion and even projecting out.  Usually with an emergency fund, either you have one or you don't, and even if you do, it may or may not be enough to cover an emergency and/or various unexpected changes in your income and/or expenses.

Usually anyone who  is investing (which means moving some of your extra cash into a place that you are purposefully planning NOT to be able to draw from it in case of an emergency), then you have to make sure that you have other funds that serve that emergency fund purpose... so it is more important when investing.. rather than savings which is presumably in the same currency that your expenses are in and frequently savings will serve as an emergency fund that captures the up and down fluctuations of your income/expenses.

Having 3-6 months of expenses is a pretty good rule of thumb guide regarding how much you should have built up, and once you get to your target amount, then you no longer would need to build up your emergency fund, except maybe to the extent that you might be floating some of that value from month to month when your discretionary income might vary..

Some guys describe their emergency fund as one of their monthly expenses, which seems to be the wrong idea of what an emergency fund is, except if that money is going into building up the emergency fund in order to get the emergency fund to a certain size.... So let's say for example, your income is $180, and your expenses are between $80 and $120, so if you are saying that you are going to invest $45 into bitcoin no matter what, then you really only have a $15 cushion, and that could go into an emergency fund, but if your emergency fund needs to be between 3 and 6 months that would be $360 to $720 for your emergency fund, and if you don't have an emergency fund, then you would be building it with the $15 per month or maybe in months that your expenses were less, you would be able to put $55 into your emergency fund in order to get it to be between 3-6 months,

and I personally remain a kind of conservative person, so I would be shooting to have my emergency fund closer to the 6 months rather than the 3 months, yet of course, everyone has to decide these kinds of balances for themselves, and since so many folks are used to having only a month of less in their emergency fund, they could end up getting fucked if they end up investing into bitcoin for a couple of years and they have put $1,200 ($50 x 24) into bitcoin and they end up having an inadequate emergency fund and have to sell some or all of their BTC to deal with some kind of an emergency that they could have prevented from devolving into an emergency....

and if you had been investing into bitcoin for more than 4 years and the amount that you invested is $2,400 and maybe even the bitcoin may have gone up in value, too..  perhaps? it is not guaranteed, but if you still don't have at least 3-6 months of an emergency fund, and maybe even greater, then you may well be tempted to tap into your bitcoin and/or its profits, which may not completely be a bad idea, but tapping into your bitcoin does run the potential of diminishing both your accumulation of bitcoin but also the ability of your BTC profits to compound in value upon itself.


Of course, frequently risk can be compensated by position size, and of course, if you end up being too whimpy in your BTC investment because you are afraid of downside risk, then you still will end up profiting, just not as much if you had been more aggressive in your investment, so you can choose your level of whimpy versus aggressive and have to live with the consequences either way.. which still ends up being better for the whimpy investor rather than the no coiner.. .. even while there are no guarantees of such.


That is part of the lack of clarity in regards to AirtelBuzz's description of the insurance in regards to whether it was a savings plan or if it was something that actually was a way of maintaining coverage for accidents, injuries and such... and sometimes insurances have both aspects to them, some part of the monthly payment is for coverage of injuries and health and other part is for savings. and maybe there are ways to just have the more basic form of the insurance and then to put that savings portion into bitcoin.

Investing in DCA method has become a very effective investment method for every investor now. Those who have enough money to invest now are also following the DCA method for investing. 

I have been investing in bitcoins for a long time and when I started investing in bitcoins my idea of investing was that first I need to accumulate enough money to invest. Since there was no concept of DCA method outside of that, at that time I used to deposit enough money and then invest that money in Bitcoin. If I could have invested in the DC method instead of the method I used to invest then, maybe investing would have been easier for me. If I could have invested in Bitcoin step by step as I was able to, without having to accumulate a lot of money, I might have invested more. Anyway don't worry too much about the past because now I am holding investments in the right way and investing myself in the right way. You have weekly or monthly calculations here but when I have money I randomly withdraw bitcoins from the balance. 

I don't need to calculate how much I invested at the end of the week or at the end of the month because the amount I invest will be added to my total investment. I have been holding my investments for a long time and investing regularly but I only invest enough money in bitcoins. If I think that I may need this amount of money in future then I leave that amount and invest the remaining amount in Bitcoin because after investing I don't want to sell my investment.

Your claim is right and accurate but by doing so, you are already leaving something that is important to your family also. The benefits of insurance cannot be overstated and it serves its purpose for what it has been designed for. It is good to see that you’ve saved a lot in the insurance company for the past ten years, it will be better if you minimize your savings in the insurance and have more bitcoin savings plus the amount you are originally setting aside and investing into bitcoin monthly. Bringing the insurance savings to a stop is not a nice idea, you can continue with the insurance savings, while taking some percentage of the insurance savings and add to that of bitcoin savings. It will serve like balancing your investments by prioritizing one over the other but not necessarily halting any of the investments.


DCA still remains the best method/strategy to accumulate bitcoin, it doesn’t work for only one class of people but for all persons that wants to invest in bitcoin. The best way to enjoy DCA is through consistency every week, bi-weekly or monthly, that is the only way you’ll see your investment grows and your portfolio keeps balancing through buying low and buying high within those intervals. DCA method just requires you to have set aside money for emergency expenses because when you come back and touch from the investment accumulated through DCA, it will just scatter the investment and makes it hard for you to reach that target again especially as the price is rising as we approach the bitcoin halving and the anticipated bull run that comes after it.


It is also good to know which investments you will put your money into that will have the potential to give you more money because if you fail to know the correct investment to do, you will regret not saving your money and just simply watching it in your savings. Bitcoin is worthwhile and has been proven to be a good investment for long term investors. If you’re looking to be a long term investor and understands how bitcoin works, investing in bitcoin will be the best for you. With the way you explained and understood how bitcoin works, you won’t have a problem after investing in bitcoin since you know what you stand to achieve in the future through the investment.

For those of you who have a fairly large monthly salary, you can divide it into several aspects that can benefit you and your own life. But for those who don't have a monthly salary, of course they still have to collect a certain amount of money manually so they can distribute it into several aspects, including the investment aspect. Because money that doesn't move can't produce anything other than a constant amount, so it's very appropriate to place it in several important parts of your life. For example, like what you did.

Investing money in Bitcoin is actually not difficult if we have a basic income that we can rely on for several things. However, for some people the difficulty in doing this is when they still don't really believe in Bitcoin even though they are able to Buy the DIP, and HODL gradually. Because for those who don't have the basic capital to do this, of course they can try as long as they have the intention to do it very consistently without looking for any reasons for the things that can arise in investing.

Risk is part of investment and bitcoin is very well known with this that's why for people want to try to invest on this must conduct a lot of researching so that they would not came to the point that they realize that their expectation about fast to earn money here is not actually true. So they need to know that there's certain timeframe of everything if they want to see the real result if planning to invest in bitcoin. Maybe some people same as you might consider it farming since there is some similarities but the only difference here is the time span we need to consider since bitcoin could potentially give us the result on its 10th or even above with this number of years.

Although as being said that we should asses later on the possible result then for that we can figure out if its really worth it for waiting at that time or not, but base on history bitcoin really show that its good for long term since it brings a lot of profit for its holder if they just do the right thing upon holding their coins for long years or decade.

Everything we do in life has risk associated with it and Bitcoin is no exception. Bitcoin is exposed to the general risk that is common to all digital businesses such as losses due to hacks and theft, risk as a result of mistakes in keeping the wallet information safe where it can be accessed and remembered, risk as a result of incidents such as natural disaster and fire outbreaks and so on. Apart from these general risks, most of the risks people link to Bitcoin are man made and avoidable. They are mostly caused by fear and greed which can easily be eliminated or greatly reduced by adopting the right approach and developing the right mindset.

When Bitcoin investment is treated like every other form of investment, most of the risk will naturally go away. For instance, when we start a farming business, we following the necessary process of planting and waiting till period of harvesting before we expect some return on investment. No one start farming business today and is expecting to make multiple of his investment the following month or two. The same can be said of fashion business, real estate and virtually every other business. Unfortunately, when it comes to investment in Bitcoin, people want the huge return within a very short time. They are not ready to give it time and nurture the portfolio to maturity and when the expected fast return is not forthcoming, the FOMO and most times sell even at loss and retire to amplifying the risk of Bitcoin.

I'm yet to see a single person who bought Bitcoin properly and held for at least 5 years that is regretting today. Therefore, I feel the risk associated with Bitcoin is not fairly presented and most times exaggerated.

There is no doubt that the DCA method has given many people the opportunity to start investing in Bitcoin. They can start investing with even just $5 weekly, which will become $20 monthly. The amount of Bitcoin they collect will increase as they regularly buy Bitcoin.

I also suggest the same thing to friends who want to start investing in Bitcoin. I also showed how my friends who don't have a large salary or income but really want to invest in Bitcoin. Yes, it has helped them in starting to invest in Bitcoin.

Most people out there have difficulty having their first investment. I also had difficulties starting because my salary at that time was small and was only enough to meet my daily needs. It never occurred to me to have an investment. But I found something that finally allowed me to invest in Bitcoin. Even though I also didn't think or imagine that Bitcoin would become what it is now. It never crossed my mind but it's a reality now.

I started investing with a lot of thought before investing in Bitcoin. I also know that investing in bitcoins is not only profitable, it can also lead to losses. I said in my previous post that I could have borrowed from my family and invested in Bitcoin but I didn't, I wanted to invest in Bitcoin with my earned money.
In addition, I have made another arrangement so that I do not have to sell the invested bitcoins if I need money during my investment. My house has a some land and even a cow farm with six cows.

Plus I don't feel like I have to spend the invested bitcoins that I'm investing in bitcoins every month.If I need family expenses then I can afford to go with money from my family or my elder brother.Because my elder brother is still working abroad he is giving us almost a lot of money every month.

To give a small example of my income I am earning around $180 per month from there I decided to invest $45 per month now in bitcoins. That means I have another $135 left. This amount of 135 dollars will cover my family's expenses and some more money that I can use in case of any emergency.

I calculated these thoroughly and then started investing in bitcoins in this way so that I don't have to spend my invested bitcoins even if I need them. Even I decided to continue investing in Bitcoin like this for 10 years maybe I'll be able to continue investing in Bitcoin this way.

The truth has always remain that money invested has more potential to produce more money than money saved in the bank or in another place. I don't really believe in saving money while the money can be put into use through Bitcoin. Once I get my paycheck and remove my feeding money and the percentage for emergency funds I put the remaining balance into Bitcoin investment and since I have a business that also produce little money that I can always rely on my daily financial life has not been negatively impacted.

Just like me you have started investing by following DCA method. Since you are depositing in bitcoins with your daily work remuneration. If you deposit five dollars a week, that's $20 a month. So your annual amount of wealth is 180 dollars, the amount is 240 dollars annually, so if you can accumulate for a few years, then you can definitely accumulate a large number of bitcoins. I also just completed one year of Bitcoin accumulation and I have approximately $385+ worth of Bitcoin accumulation. I started investing in Bitcoin when the coin touched 15.5k in early 2023, and now I am so focused that I am not able to invest in any other way than the DCA method. DCA method is best for me. I am impressed by the improvement in my wallet which I can confidently say leads people to a bright future of success.

Of course there are no guarantees, but it seems that with the level of your current income, your expected income (perhaps questioning if you are going to be able to increase your income), and your timeline, you are hoping that your BTC investment will end up outperforming other possible places that you could put the money, including the insurance plan. 

And, yeah, as Odohu mentioned, insurance is like an emergency fund, and you may well not be in a good position to self-insure, if that were to happen to make up for the amount that you contribute versus any kind of need to use the insurance for an unforseen event.

Of course, many of us who are active in this thread and who have some convictions about bitcoin believe that we should try to be as aggressive as we are able to be in regards to our bitcoin investment, but not so aggressive that we end up not being able to cover our monthly expenses and/or to have an emergency fund (whether your insurance fits into what should be your emergency fund might well be the case so your not investing into insurance may well end on the side of being overly aggressive and even reckless) so that we do not have to sell any BTC during our investment period.. and so after 10 years of investing you can reassess, but you also may be able to reassess if any of your conditions significantly/materially change within the 9 investment factors that I describe in another one of my posts.


I surely am not arguing against lump sum investing, and it works pretty damned well when you can do it and if the price does not end up moving against you (meaning down), but if you do lump sum invest and the price moves against you, it is good to be able to continue to be able to buy on the dips, whether that is DCA or just amounts that you have held back to be able to buy if the BTC price were to buy against you when you lump sum bought.

A lot of people use lump sum methods and it can be very effective, when you are able to do it.. but sometimes you are not really able to do it without incurring costs and/or risks that might not be worth enduring.. so the extent to which anyone employs lump sum investing is going to partly depend on his having the money and what are the costs of that capital (if any) but the other part would be about ability to service the debt if the BTC price moved against him, such as cashflow or other places to draw capital, if needed and warranted... and part of the reason that the wealthy might be able to set themselves up to be successful no matter what is because they can employ even risky bets and lump sum investing, but also to have ways to service the debt or to keep buying BTC, even if the price goes down and poor people might not have those options when they employ lump sum, so the poor people end up gambling when they employ the same techniques as the rich person, even if they might believe they are doing the same thing, when they are not... but it still does not mean that lump sum is worse, even though some people should not apply it.  I made a similar comment in a recent post that I made.. which suggests that if a person lump sum invest, he should have funds ready to deploy if the BTC price moves against him, down rather than up.


Of course, there is no guarantee that DCA will outperform lump sum, but a person who has spent a lot of time investing into bitcoin has historically had pretty good results and the longer he has been investing (even relatively small amounts), it will take a whole hell of a lot of capital to catch up to him, and many of his peers will not be able to catch up to him, so the ONLY ones who are able to catch up to him are the ones who, in the past, were not his peers but maybe way richer than he was, but he has likely caught up to a lot of folks who were way better off than him historically.  We have witnessed these kinds of matters a lot in bitcoin, even though they are not necessarily guaranteed to continue to occur, even though bitcoin's investment thesis seems to be stronger these days than it was 7-10 years ago - especially if we go back before the resolution of the 2017 blocksize wars, and so even though the upside does not seem to be as great, but the investment thesis does seem to be be pretty strong these days.. including that lump summing prior to the launch of the ETFs may well be better than DCA'ing (front running a lot of the folks who are disinclined to directly own BTC - and sure there are a lot of folks who also don't directly own BTC, since they hold their coins on exchanges).. but no one really knows for sure..

That's a valid argument that aggressively investment (putting huge money as Lump Sum) might not be a good idea. Rather the best option is to invest in continuous manner no matter how much money you have.  
As you said investing million dollar as Lump sum right now will give you around 23 bitcoin and that is still far from person in Hypo-3. In hypo-3, we are investing 60$ into Bitcoin every week for ten years and now the total bitcoins are 27 and there net worth is 1 million USD.
What we can deduce is that even if you dont have million or 100k dollars funds then you can still take better osition provided you are willing to invest small amount in periodic manner (DCA).



And a Happy New Year to everyone on this thread.

Perhaps you have figured out your finances to know that setting aside a day pay to invest in Bitcoin will not put you under financial pressures. I say this because it is one thing to buy Bitcoin and another to hold because holding require that basic needs are met and plans also put in place for little reserve funds in case of unforeseen events that may arise. If you get distracted by the excitement of being a Bitcoin investor and holder without making adequate preparations, a little change of events may force you to sell some or all your Bitcoin and this will discourage or demoralize you a lot. Therefore, inasmuch as it feels good knowing that you are saving for the future via Bitcoin investment


I feel there is a little challenge with this. Insurance serve its purpose which mitigates risk to your physical assets; have you thought about how it will be when you stop paying for the insurance and accident happens? Don't you think if this happens you will be forced to sell the Bitcoin you accumulated? We are not praying for accidents but we must always prepare for things that are not within our control.

Insurance is very important that is why many companies have even been studying how to insure digital assets such as Bitcoin even though they have not made much progress. I was fortunate to read about some of those companies that tried venturing into insurance of digital assets and I feel it is still an ongoing project.

I think insurance qualify as basic needs that should be prioritized therefore the money should not be channeled into Bitcoin.

Closing 2023 and into a new year, I'd like to appreciate this forum for its contribution to our lives. I've learnt a lot this 2023 from this forum that I can now add to my new year resolutions as a beginner. This thread BUY THE DIP AND HOLD has really given me a better mindset on how to approach investment in Bitcoin, before now I was very careless in investing, but now I can say I'm quite matured and I would love to really thank everyone that has contributed to this thread being alive and has shared important information to me and everyone.

I've known  about DCA and lump sum strategy in accumulating bitcoin before now . But this this thread has opened my eyes to their strengths and weakness, I'm more confident about my bitcoin goals and I know I would make it there with all of your help.

A big thank you to everyone. And happy new year

You've proven that investing can be done if you have the mindset to invest, and that you don't have to have a big job or a big business to invest.  

You are a mason and you say your monthly income is $180. By earning $180 every month, you are investing some amount of money regularly, besides taking care of your family. Many people can't take care of their family by earning 500 to 600 dollars every month, where you are taking care of your family and investing well with only 180 dollars income. This type of investment looks like you don't have enough money to invest but your own willpower is enough.

Your life is regular and you spend your money regularly which is why you are thinking about your future and investing for it. My advice for you is that since you have started investing, you should continue this investment and also try to work a little harder so that more money will be your income at the end of the month. The rest of the money you earn can be invested in Bitcoin if you want. If you can continue this investment consistently for a long time, your investment amount should not be less than that of a large investment. Investing every month will complete your step by step investment and it is positive for your investment.

Actually I'm not disputing the fact that is of a great importance for investors to enjoy there investment while they are still young and healthy but however the points I'm trying to make is that in as much as most investors believe that they can easily make huge return from there Bitcoin investment within a certain period of time shouldn't give them the mindset that they should channel all there aspirations, goals through there Bitcoin investment because is not a get rich quick and the possibility of getting to your expected points may not be certain and perhaps it could also get to your expected points but nothing is certain because we cannot predict the price of Bitcoin and perhaps just like those that invested on Bitcoin when the price was still $3k they never put all there aspirations through there Bitcoin investment but however the potential they saw on Bitcoin was there propelling factor that motivates them to invest on Bitcoin with the believe that some day Bitcoin Will be worth so much, and however within number of years Bitcoin price was able to hit $50k. So perhaps the points I'm trying to make is that seeing how Bitcoin price skyrocketed in years ago shouldn't give most investors the mindset that immediately they invest on Bitcoin is going to make same move again, so is better to keep investing and leave the rest for Bitcoin price.

We never magnify the small things that cause us to get frustrated before we slow down. We think that if we invest 20 dollars or 50 dollars every week or every month, what will happen to us with this investment and we will not get any profit from this investment, but whenever we calculate this small amount to a much bigger one, but we see that. By investing little by little, the amount of investment at one time has become a lot. 

Crops on the farmer's land but not so easily. To grow crops on the land, the farmer has to work hard, take care and be patient. The farmer first plants the seeds in the land and then starts the farmer maintenance by giving regular watering and various spraying to protect the crop from harmful insects. In addition to spraying, the land should be monitored regularly so that the crop grows slowly and after a long period of growth, the farmer can harvest the crop from his land. 

In addition to the cultivation of crops on the farmer's land, here we can draw another example where many bees gather together to collect a small amount of honey from a flower and at a time they fill the bucket with honey. We can follow the honey bee collecting bit by bit in investing. By investing little by little like a bee, one time your investment will fill up like a bee hive, only we need to be patient and invest consistently.

It is a good idea to include Bitcoin in your investment list. You've done a good thing by putting $25 into insurance, which should continue as usual.

Meanwhile, you can put other free money into Bitcoin investments. As for the amount, it can be adjusted to your financial management.
That is called DCA, where you invest regularly in Bitcoin every week or month.

With $25 for insurance and $20 monthly to invest in Bitcoin, it can start whenever you are ready. But if you intend to allocate $45 monthly into Bitcoin, it's also worth doing. The important thing is that you can allocate the money well and not interfere with your daily needs. And don't forget to have savings in preparation if you encounter sudden needs that those savings can cover.

Actually I earn about 180 dollars per month doing masonry work. I put aside a day's worth of my paycheck at the end of this work week to invest in Bitcoin and my wife puts about $25 of my monthly income into insurance. We have done this insurance for about 10 years.Where we have to deposit 25 dollars amount money every month.

JayJuanGee After reading the post you quoted me I explained to my wife that if we invest the money in the insurance we are collecting into bitcoins our bitcoins will increase. We will even get more money if we invest in bitcoins than if we put money in insurance.

My wife is literate which didn't take me long to convince her but she already had a little idea about cryptocurrencies and even Bitcoin. But he didn't understand well about bitcoin investment after I explained him well he asked me to invest that amount in bitcoin instead of saving the money in insurance. We have decided to start our new bitcoin investment journey from next month i.e. January and invest $45 per month in bitcoins and its duration will be ten years. In future we have decided to increase the amount of investment but we will try to increase it according to the cost of our family.