Topic: Buy the DIP, and HODL! - page 372. (Read 137493 times)

I think you both actually got a point. At first what justybillywitt is trying to say is that most investors and not financially capable in purchasing a big quantities you of bitcoin (like 1 bitcoin and above) so inorder to meet up they would start practicing the DCA method to start accumulating the quantities they are capable of accumulating That period so as time goes on their portfolio will grow massively to that state of accumulating such large quantities of bitcoin without buying it ones. But another advantage sti attached to this DCA method during the process of using the DCA method in buying in different time or fixed time interval. You would end up accumulating bitcoin in different prices not like just buying ones in a fixed price at that moment. But in DCA method your buying prices varies either you buy when the price increase or dip. Most time when you buy at certain price and it's dip you won't be In much loss because of the different price you where accumulating. But in a scenario where market experience a dip and you buy the dip using DCA method and it dip again and you still  buy the dip with same method, so whenever market turn greens (rises) you would endup making huge profits than just buying ones that why still even though most people can afford more than one bitcoin they still exercise the DCA method to accumulate more in different prices.

Your making it sound  like DCA is a strategy that is used only by people without proper funds to buy bitcoin at once which is totally wrong, I can have enough funds to buy bitcoin and still decide to DCA because of the advantages it has over other strategies or preference, and we should not forget that we DCA to remove the panic and fear that comes with market volatility, not low budget, the only reason DCA has been said to be good for low income eaners is cause it allows them to split the total amount they should use to buy bitcoin at once into bits until they are able to aquire their desired bitcoin.

I can have up to 50k$ and I know I am fully able to purchase one whole bitcoin and decide to divide the money into 4 equal parts and buy Bitcoin, I can end up acquiring more bitcoin because of the volatility of the market and it becomes advantageous to me. And I also think another reason we prefer the DCA method is that, it supports holders more than any other strategy, cause if I had a dream to accumulate up to 10 bitcoins in 5 years and I had enough money to buy a whole bitcoin, i can chose to divide the money in parts and keep on buying in part so I could replenish the money and buy more, instead of just going for a lump sum at once.

You wouldn't really blame people who talks alot about Bitcoin investment strategy, because in all investment you have listed above,either commodity, Gold, stock, companies or crypto currency. Bitcoin is still more advantageous over all. Bitcoin is limited in supply an has a huge market cap and market dominance which makes it to be more valuable than others. Let take for example Gold, gold Is a physical asset. Which is not limited in supply because people continue mining Gold almost everyday and  that will drastically reduce the value of gold or keep it stagnant. But bitcoin is limited in supply and hence it becomes preferable over Gold. because Bitcoin can be baught at ease online and can be sold at any given time compeard to gold which requires physical p2p. Looking at this graph you will see while Bitcoin is more preferable than Gold and why people talks about DCA and HODL all the time because the volatility is top notch and grow increasingly over time.


Though it might not be a new version, but want to graphically show you how Bitcoin is important and why you need to invest and hold for long.

I don't agree with you, the dca strategy is a strategy that anyone can adopt regardless of their investment sizes, even individual with substantial capital benefits from it.
Putting it directly to you that the major aim of the dca method is to offer a structured and disciplined approach to navigating the unpredictable market condition for investors accumulating Bitcoin for long term purposes other enormous advantage of the dca are secondary . Therefore an investor can buy a fixed amount of Bitcoin weekly or monthly without disrupting his other needs depending on his financial capability and a well structured plan towards his investment, including making the availability of emergency and reserve funds and taking care of his personal needs.

Investors are those who have a budget to invest. The categories are different, what makes the difference is the size of the budget they have. Investors with large budgets can buy large amounts (e.g. 1 bitcoin) and they can fill their baskets easily, while investors with small budgets can buy fractions of bitcoins (e.g. 0.001 and so on).

The high value of bitcoin is not a definite reason why an investor does not choose bitcoin in his investment portfolio. They have not lost purchasing power, but perhaps there is less interest or perhaps they are waiting for a dip. Basically they don't have to wait for the dip, meaning any of them can buy at any time as long as they know how the strategy works. This thread discusses those strategies, so they can afford them regardless of budget strength.

I agree from a strategic perspective, it's definitely good. Maintaining consistency and regularly buying bitcoins is not mandatory, but if you are able to do it then you will definitely have more bitcoins in your bag. It doesn't matter how you do it, as long as you can balance your expenses and budget the rest, then you're free to invest.

Not all investors can afford to buy large part of Bitcoin or a fraction of bitcoin. Due to the high value of Bitcoin, many investors lost their purchasing power. But even a small investor tries to figure out how to grow his Bitcoin portfolio. Many people try to buy bitcoin regularly with a certain portion of their income because they can predict the potential of bitcoin. We generally prefer to use the DCA method as it encourages us to invest stress-free. I can collect bitcoins at my own interest. Anytime there may be a problem where I can't collect bitcoins for a specific period of time, I may be able to re-use the opportunity later. DCA does not mean that I have to collect bitcoins compulsorily. However, for regular Bitcoin purchases, adopting this effective method would be significant for accumulating bitcoin or increasing bitcoin portfolio.

An investor should have his mind on a long term investment plan, before he venture into investing in bitcoin. He can achieve this by having a bitcoin target as his goal, so that this will keep him more focus and consistent on his bitcoin accumulation. Since he has that on his mind, he will not think of selling when he sees a little profit from the price of bitcoin, because he has not reached his bitcoin target.

But when an investor does not have a bitcoin target and he is just investing, he might be entice by the little profit that he has made in his bitcoin investment and forget that he has plans to go on a long term investment, and he will see the little profit as something big to him, which might make him sell his investment thinking that it will be easy for him to buy back, killing his long term investing goal. This is why we need to set a bitcoin target to help us achieve our long term goal, by hodling and accumulating bitcoin using DCA method, and also lump sum when we have the opportunity to buy at the dip.

During the downward trend you buy with the money set aside for buying the dip. It is not about being poor or being rich. It is about the strategy that will give the highest level of profit and reduce loss. Every investors want minimize profit and reduce loss. That you are rich doesn't mean you shouldn't follow investment principles. When it comes to investments, you think of ways that are more profitable.

You are missing something here, the  the idea behind the DCA method was designed to meet the need of those investors who wants to owe bitcoin but don't have the money to finance their desired level of bitcoin holding at once. These are the low or medium class level of income earners who receive their money on a weekly or monthly basis. The DCA gave such investors the flexibility to own bitcoin without disrupting their daily financial needs in their lives. So if they are to buy at a fixed amount of money as they can afford let's say $50 or more weekly or monthly that will be okay with them. But if the idea was to be buying at fixed fraction of bitcoin weekly or monthly it will be difficult for them to meet up, and also it disrupt their other financial obligations in their lives.
How often do we see the dip? Mind you there is no general acceptable price level that is considered as dip. Dip is on individual satisfaction level.

Well, you made your point  and it'sactuallya good one. Fine, it's  a strategy and we definitely have somepeople practicing this but it's  not a good one to be precise and thank God you know it's a gamble because volatile  market like Bitcoin  are not easily determined on a short term basis
You end it well  though!
 
....

I might not be right on this, but hear my opinion and what I've learnt so far l,  I dont think the problem here is selling our bitcoin to get more bitcoin, but it should not be on our list of strategies as eaely investors, cause when we are trying to be smart about thigns and trying to take advantage of volatility and this is just like trading or doing short term investment gambke with our holdings, we should know that we are taking a risk with our bitcoin and since our major objective is to hold bitcoin. But if someone has built a stash of at least up to 4 years, then using a little percentage of his holdings to sell and aquire more isnt that bad.

But in general taking risk like this is not guaranteed to give us positive outcomes and at times we could end up buying even more than we sold. So it's good that everyone should be careful and also accept responsibility for any risk taken with their Bitcoin holdings.


Your very right, the Temptation to sell is much higher with new investors than old investors, new investors can easily be swayed by little profits to sell their holdings, but I don't think this should stop anyone from continuing with their original plan even if they regret later, its normal for us to fail something in our journey, even many old investors would recall a time or two they messed around.

That's why the DCA method is good cause when you divide your allocations into bits and invest on intervals the pressure to sell would be lesser, and moreover I feel DCA also gives us a long term approach to investing, since our accumulation would only increase over time.

To you (smelody), your quote took forever to scroll pass, it's not useful to quote the whole post instead you should just quote only the few lines you wish to elaborate on.

Although you're a newbie so it's understandable but you should take note henceforth.

Additionally, I guess you didn't get what exactly JayJuanGee was trying to say or you are probably omitting the point. I will buttress in order for you to understand.

There are some of us here in the process of accumulating Bitcoin we tend to see opportunities of selling out our bitcoins in order to accumulate more but this narrative of some is quite wrong. what JJG is trying to say is the idea is not all wrong but for most of us at this stage it's very inappropriate to practice such because we may not still be in the position to sell in order to accumulate more. At this very earliest stage of accumulation we shouldn't be thinking of selling to buy more except we have acquired some certain level of knowledge in the accumulation practice or even gotten a good stash of Bitcoin which might take some years to get to such level.

At the end what his saying is its best to practice buying the dips and hold which is the context of this thread, DCA which is buying bit by bit with some designated amount from your income that would probably never affect your daily cost of living, and Lump Sum buying than go into some strategy of buying to accumulate more that is more risky for this very early stage of accumulation of ours.

I did not actually said that buying a fixed amount of Bitcoin at regular interval us the same thing as the DCA method. It was a pattern I imagined to be possible, hence the reason I took my stand on it and still left room for more contribution. I have stated before that we should not only view Bitcoin investment as something reserved for the poor because Bitcoin was not just created as a means of escape from poverty even though it has the potential of changing the financial status of investors.

We must understand that there are rich people who are heavily invested in Bitcoin. They can set their target on the amount of Bitcoin they want to achieve at a certain time or age and will continue buying certain amount weekly or monthly or even yearly to get to their target. They don't necessarily need to check the price because they can purchase it at any price as money was never the factor when they even started it.

As a matter of fact, I have even seen story of someone who targeted getting 0.5BTC to achieve before his graduation from the university. Although he did not buy fixed quantity of Bitcoin per time, rather he was buying with 20% of any money that enters his hands from the parents as a student. The price of Bitcoin was cheaper then so it was easy for him to achieve.

The point I'm making is that the method of buying might vary but the ultimate goal is to buy Bitcoin and hold.

Let's understand this DCA stuff, when you are DCAing it doesn't mean that you are stagnated or forced to continue investing the particular amount you have been investing, you can decide or be flexible enough to adjust or increase your investment as you desire it to be, so don't misunderstand this process, I must say that your perception about this strategy is wrong, as far as Bitcoin investment is still in existence DCA is one of the best strategy rolledout for everyone no matter your income to be involved in Bitcoin investment, no one is going to do any opportunity cost stuff to meet up for anything as you said, what everyone that's is involved in DCAing needs to do is, keep investing the amount that will be comfortable for you so that you wont go about trying to borrow or thinking about spending your emergency fund in other to satisfy your investment plan.

We should not be confused on this, before the beginning of every Bitcoin accumulation journey, one should first consider setting a budget planned on the bases of dollars amount or Bitcoin.

Secondly, determining at what regular interval that becomes appropriate for the accumulation due to availability of funds, it can be weekly, bi weekly or monthly.

After all this, the amount to be invested according to it's availability should be on a dollar value in a way It won't affect one's cost of living and not in a specific amount of Bitcoin due to it's volatility, purchasing in amount of Bitcoin will not be sufficient enough to get what has been budgeted if the price decides to keep depreciating because it will be bought on a lesser value.

Experience could be one factor to facilitate one's decision to continue holding their investment, some people are easily moved with a slight increase in the price of Bitcoin and can as well be tempted not just new investors even those who had long stayed in the system and have not yet understand the power of long term holding, so it goes more with the mindset, we are clearly expected to open our mind and accept the fact that during our Bitcoin accumulation it is expected of us to generate the mindset of long term holding and abstain from unnecessary sell pressure.

Yes ! One shouldn't sell BTC to buy more BTC, fine  it might seem like a strategy but not a good one because we are dealing with future event and you might end up losing out of your BTC  which is opposite of what you are expecting .
However, there are good strategies out there and it has been listed by JayJuanGee and  what fits  the analogy of accumulating more btc without selling  most is buying  the dips as you don't have worry about the sell limit , you should just keep on buying the sell.

Thus, trying DCA  gives room to no worries  either the market is experiencing a dip or not, just keep on buying the fixed amount and you will start seeing some nice average results of your buying.

It actually depends on your investment capital because if you think or believe that your portfolio is big enough to adjust to accumulating a certain amount weather the price of Bitcoin drops or increase fine you can do that but otherwise if your investment portfolio is not sufficient enough then stick to what your portfolio can afford because if you go more than that it will be considered as an aggressive investment and if you are not mindful you can get into trouble, perhaps that's one of the reasons why they advise investors of investing only with what they can afford and not what will affect them on the process.

I don't agree with you guys, your most emphasis on price fluctuations are made upon upward trend whereas there can also be a downward trend of price fluctuations which will become more advantage to the investor who has decided to accumulate a certain quantity within a specific period of time. There is a prvoverb that says before a blind man says he is going to stone you he already had a stone in his possession. It shouldn't be seen that anyone venturing in to Bitcoin investment is poor there is still investors that can afford to buy Bitcoin even if the price makes x3 or more the current price that is an assumption based on if their is an upward trend in price fluctuation what about when there is a downward trend?

In my own opinion I dont see any difficulty using the dca method in terms of accumulating Bitcoin on a particular quantity either weekly or monthly, before an investor will have this decision definitely he must have got all his plan worked out by making provisions for his personal needs emergency and reserve fund and also have factored in the price fluctuations as a principle factor of Bitcoin functionality. I think this whole thing is apparently and typically based on individual financial capability.

Indeed, anyone looking forward to build an emergency fund should build it alongside his Bitcoin investment. Lets say the person is using DCA strategy for investment, from a monthly income of $2k. based on the fact that he is still a single youth, he can minimize his expenses to 1k a month then, such person could possibly invest 30% of his income into Bitcoin for a month, which  would be $600 while he can keep 20% for his emergency fund which is a $400. Based on the fact that his monthly expenses can be dealt with $1k, after doing this for 15 months, he must have built a 6 months expenses worth of emergency fund. And thereafter, we can become more aggressive with his Bitcoin investment untill he feel he'll be needing a break or if he has accumulated enough.


I doubt that any of your advise could lead to such scenario of making a failed investment planning. Anyone thinking normally can understand the benefits of your teachings and apply them to make a successful life investment  except, the person is dumb enough not to understand. Though mistake can aren't something we all are immune from, but from experts like yourself, they are minimal.


Trading is like a term used in shitcoins, and Bitcoin primarily is not a short term investment. Those who started their investment early and still holds their coin can attest to the fact that Bitcoin is not a coin for trading. I saw a post some couple of months ago were an investor was bitterly expressing his experiencing how he sold some of his Bitcoin when the price pumped, and he thought that was all, unknown to him that the price just started then. And his advice was, don't sell your coin hold and if possible you could pass some to your next generation. There are many others who had such experience with selling your coin at the peak of a bull run and later came to understand that, it was a dumb discussion they took. Trading Bitcoin will only result to missed opportunities compared to what you could achieve with just holding.

This is right and sometimes experience can determine the faith of an investor, I can relate with what you're trying to say even if I haven't gotten to such level in terms of holding. We can't compare an experienced investor to some newbies who just started their early journey and each time the price keeps increasing or decreasing there's this urge to sell cause they're new to the market. Aside from bitcoin investment, the example you set out is common and I can agree that a lot of newbies could not reach their target due to the excitement or fear of the price meanwhile investors who started earlier could decide to hold regardless of an increase or decrease in Price.


We can all agree not all investors have this faith of holding bitcoin for long term or rather some are just here to hold till they get an increase in the price and decide to sell.
In situations like this It doesn't necessary matter cause it seems they buy for just profit and nothing else. Newly investors who really want to buy and hold will not get over excited with an increase in price, I believe every one has a target for their long term holding and if working towards the line rightly you will definitely exhibit the habit of self control, like some newbies will ask how can I develop such characteristics of an experienced investor, this is just simple and all you need to do is learning from experienced investors who love sharing different ideas on their early holding for example JJG, as a newly investor it's advisable to always follow and read threads like this "dip and hold". I don't know why most people find it difficult to hold or maybe they lack finance for investing but in summary it's advisable never use the money met for something else to accumulate bitcoin.

Of course there is a basis, the only difference between the old holders than the recent new holders is just in the price at which they met bitcoin and nothing more. The spirit of thought to be drawn from the old holders by the recent new holders as a motivation to hold steadfast for long long should be that if the old holders could hold that long and had made this amount of profit assuming as at a time when bitcoin was 7k to now it's rally around $43k, this thought should be something for recent holders to go on with as new investors in the market believing that they too can become lifetime holders just like the earliest bitcoin holders till date. In any business a person engages in if he/she doesn't have a motivating factor it's very easy for the person to crash at the hit of any challenge, which is why in this case the old holders should be seen as a motivating factor to the recent new holders for them to be able to hold too for long because the huge profit from bitcoin is embedded in a long time holding.

Old holders are like heroes the new holders should aspire to be like in the next few years in their holding.