Topic: Buy the DIP, and HODL! - page 377. (Read 108404 times)

You've done a great job explaining things further to rachael9385 for better clarity. However, there's something I don't quite agree with in your explanation. If my weekly budget for Dollar-Cost Averaging (DCA) is $100, and I anticipate a price dip during the week, it's acceptable to wait until the week's end to make my purchase. But if, as a result of the expected dip, I decide to invest $500 instead of my usual $100, which you calculated to take only $50 per week for 10 weeks. It seems like a way different strategy to me. What's the point of DCA or the suggested strategy JJG talked about when you're putting all your funds in at once? The concern is that the price might dip even more than anticipated over time, and even though you're still buying at a lower price, you'll end up with less Bitcoin. In hindsight, you might wish you hadn't gone all-in on the market.

Buying at once seems more favorable for those who have bulk capital and have already made up their mind to invest same in Bitcoin. They don't see any need keeping those funds or employing DCA since the fund is readily available. This is not a bad strategy provided the intentions are to hold for long to be able to realize profits. Unlike this method, the DCA seems to be more of a continuous process that is suitable for those with a predictable cash flow system of which certain part will be set aside to invest in Bitcoin. Both approaches or a combination of both is not bad because the target is to build a Bitcoin portfolio that will be preserved for the future.


I am also using the DCA method as well and I can say I have not seen anything like it before. It is easy and convenient to apply, enabling me build a portfolio I never thought I could have because there is no way I can save such amount of money at once.


For weeks you could not buy due to constraints like traveling or work, you can use the following week to cover that by buying twice the size since the funds for the DCA has already been budgeted. You don't have to start all over again because of a little constraint. This is what I think unless there another way to it.

The issue with some folks is their lack of patience; they want immediate profits in a short time. However, we all know that Bitcoin doesn't guarantee that, given its unpredictability. We could endure a bear market for three years or even longer before the next bull run. Without patience, this approach might not work for these kinds of investors.

Additionally, there are those who seek fixed monthly returns. Instead of investing in Bitcoin, they opt for something like a Ponzi scheme because it promises consistent returns, ultimately falling victim to a scam. In the end, they blame Bitcoin for being a fraudulent investment. It's quite unfortunate that some people fail to grasp what they're getting into.



Playing around with figures can be pretty tough. I think my calculations might be a bit unrealistic. So, why not consider allocating a fixed percentage of your income, be it from your job or business? Let's say you set aside 5% of your income for Bitcoin investment, and you don't touch it until you're satisfied with its value.

I'm talking about a long-term investment, maybe 20 years or even more. Who knows, it might eventually pay off, and you could end up with a substantial Bitcoin fortune that you can pass on to your family. Life is full of uncertainties, so it's wise to prepare for the future. In case our economy takes a plunge, having Bitcoin in your portfolio can be a hedge since it's not tied to any one country's economy. It's likely to survive and its value should keep rising as long as demand continues to grow.



As I mentioned in my earlier reply, I believe it would be wise to base this on monthly income. I think a 5% allocation is reasonable. As your income increases, you can also increase the amount of your investment. It's important to ensure that, as long as we're living without financial problems, we allocate for our future. This isn't just for us but also for the people we care about.

In the future, we can't predict what might happen in the world, and with ongoing conflicts in some countries, it's a reminder that peace and order can't be maintained all the time. We've seen the economic impact of war. If we rely solely on fiat currency for our savings, we could end up like other countries that have experienced hyperinflation. Given these potential problems, Bitcoin can serve as a hedge because it's unlikely to depreciate as drastically as fiat.

Understanding what the bitcoin market is all about is one of the most important things to know about bitcoin before diving in. When comparing cryptocurrencies, bitcoin is always distinguished from the rest, and the rest are referred to as altcoins due to the consensus on which bitcoin differs significantly. They both have pros and cons, but when comparing them, if one does not want to be greedy or hungry to make it big quickly by taking an irreversible risk, one should choose bitcoin. As a first-time cryptocurrency investor, you don't need to be told that bitcoin will be the first cryptocurrency you'll be introduced to, even if the person specialises in other cryptocurrencies.

Before learning about bitcoin, I felt cryptocurrency and bitcoin were two separate things due to the wave it has already created in my place, which other altcoins are not renowned for. If you're looking for a low-risk investment with a guaranteed profit over a certain period of time and resistance to market volatility, bitcoin is the way to go. If you're coming in for any other purpose than the aforementioned, bitcoin will not get you there quickly, and altcoin will cause you to lose your money and your belief in cryptocurrencies.


The news that caused bitcoin's price to rise in such a short amount of time is a solid indicator of how bitcoin will move in the market when the bullish season approaches. This is a strong indication that one should not put off accumulating bitcoin. There is never a better moment than now, and it is never too late to begin investing in bitcoin. Don't try to miss out while remembering that you'll just invest what you won't need for daily requirements for the time being. With patience and market knowledge, a long-term reward in bitcoin is certain.

You are not getting what JJG said, let me explain to you from what I understand about the strategy that JJG said is similar to DCA. You must not wait for the dip, by sitting down and relaxing. What is said is that since you have set an amount for weekly regular DCA which is $100. You will always buy every week with $100, but if it happens that you are expecting a dip during the week, you can relax and keep on observing the market to see if the dip will come.

Just like JJG said that, if you make an order to DCA $100 weekly, and bitcoin price is at $28500, you can wait till the last day of the week before buying. So that if bitcoin price did not dip below $28500 on the last day, you can simple use all your $100 to buy for that week and expect the dip the next week. OR because you feel that the dip will come but still not around,you can limit the $100 DCA to $50 and buy bitcoin on the last day of the week so that you can carry over the balance of $50 to the next week, when the dip might come so that you can now add the $50 left to the new week DCA budget to make it $150.

This shows that if the dip comes during the next week, you will buy more bitcoin with $150 than when you would have bought with only $100. On the other hand, because you are using this pattern to accumulate, when the dip comes because you know that, your DCA weekly funds is $100, during the dip, you can take advantage of the market and use like $500 to buy at once. Note that the $500 that you used to buy is not for just five weeks budget, but you are buying with $100 from the week budget which you are on, let me say today for instance is my buying day and I have assigned $100 for this week. I will now take $50 each from 8 weeks ahead which becomes $400 +$100 for this week.

I am to DCA with $500 this week because bitcoin price is at dip, and when the price increases again, I can now continue to DCA with the remaining $50 left from the 8 weeks which I took from, for another 8 weeks. It is still like DCA because, you are buying every week but with different amount sometimes, due to planing for the dip and to take advantage of the dip.

JJG, I love this strategy but I have never taught of it, the only time that I thought of something like this, was when bitcoin price was 25k+, that I met my boss to me 20% of my salary for three months in advance to enable me buy at that price 25k+, which he did. I am now using half of the money that I am suppose to use for weekly DCA to accumulate now because, I need to keep on accumulating and I have used some part of my DCA funds to buy then when the price was 25k+. This strategy wouldn't be good for beginners who just started because it might be hard to practice, compare to the regular DCA pattern that a specific amount is used always disregard of bitcoin price.

Others might have a certain target though, let's say 1 BTC as this is what everyone is aiming to be a member of 1 BTC club. And for starter this is going to be very hard to accomplished, but for those who have been doing it for years, thru DCA and whatever strategy suit them, they could have been saving more than that. If you are interested, you can see it here:


https://bitinfocharts.com/top-100-richest-bitcoin-addresses.html

So you can see where you at right now as far as accumulating BTC. And I will agree that it's a never ending quest to acquire it. We might be selling at some point, but for sure you will want to get it back as soon as you can. I wouldn't say it's an obsession though, you still have to look at it as an asset that you will have to make some profits later.

Am being inquisitive right now. So your saying that there might be a time when one feels he has accumulated enough bitcoin and would decide to only maintain the Bitcoin  he has accumulated. I am aware of people saying that accumulating Bitcoin has been an obsession to them irrespective of the amount of Bitcoin they have they still accumulate as much of it as possible since they have the money to put it in. Assuming someone is obsessed is it something that is wrong or it is good especially in this present time?
If only I could Pm so you teach me your ways  

If I remember correctly, the price of Bitcoin was $20,250 as of January this year, and to have such a substantial amount of money, I would have just invested in all of it. The reason is that Bitcoin will not go back below $20k this year or even next year. In my opinion, Bitcoin has given people the opportunity to buy when the price was $20k at the beginning of the year and even was below $19k last year, which means no investor will see the $20k price again till probably the next bear market.

Having been in the Bitcoin space for some years now, I think there are some low prices I will see Bitcoin drop to, and I might not consider using the DCA at the moment. The reason is because if I buy at the low prices, let's say $15k–$20k, I know that definitely the price will spike again and go above that, which will guarantee me a huge profit. All I have to do is hold my asset tight, sit back, and wait for the bull market.

- The method you're talking about is using small weekly savings to buy Bitcoin. But I'm wondering, what if you have a substantial amount you intend to invest in Crypto, let's say $100,000? How would you use DCA in that case?
- For me, my approach is to divide my capital into three parts. Every time Bitcoin corrects more than 20%, I put in one part of the capital. From the beginning of the year until now, I've only executed one of these parts. The other two parts are still waiting for the next correction cycles.

You might be right, but seriously, I don't think that waiting for the dip is a good idea. Why? Because it might be that while you are waiting for Bitcoin to dip, it must have been on peak mode, so it is good that when you have the money you should not hesitate to tap the buy button. If an investor is using the DCA method to accumulate Bitcoin, he/she shouldn't wait for the dip, it is just for the person to take advantage of every little opportunity that Bitcoin has provided. That's all.

Sometimes, I do believe that it is only Bitcoin traders that have the time and the whole day to keep on watching the price chart of Bitcoin so that they will know when to buy and when to sell, but for investment, I don't think it's a good idea for an investor to be watching at the price of Bitcoin without buying just because he/she is waiting for the dip.

With the help of the DCA method, I believe that 1btc is still 1btc, so if you are waiting for the dip to dip or get dipper, I think you are wasting time. It is just a waste of time. Buying when you have the money is a good one than waiting for the dip.

Okay I understand @Jay the method is pretty cool because is substitute to DCA strategy, that if your plans of accumulating some certain amount by buying some dip and however if a dip those not occur within the week you are accumulating, you go back to your normal DCA method.

Actually is a cool strategy, I love it, one of the good things about this strategy is that the possibility of accumulating a higher amount of Bitcoin on weekly basis using that method will be higher because just like you said if the current Bitcoin price is $28,500 and we set our order on $27,820, with this it increases the chances of getting a higher amount of Bitcoin using the weekly accumulating budget because considering how volatile the market is there is always a chance of going ups and downs making the method effective and if it doesn't workout DCA is there to back it up, that's a very smart method @Jay.

I haven't actually tried such method before that requires me to actually watch or set a buy order for the week because I know how volatile the market can be and I think if the investor is not a principled one, you might end up using the actual funds for other stuff that's if the target isn't reach for that week, no offense but I think the DCA method of just having a specific target to reach regardless of how the market moves is more preferable especially if you are someone who is always occupied with other schedule just like you explained but also their is the fact about sacrifices, that's taking out time to watch the market or should say I say study it but I think this can be done through many simple ways too am currently using a price alert notification app on the Bitcoin price and this would be very helpful in terms of following up with this strategy.

Ohh, now I see your point, the strategy you employed is actually DCA, the only difference is the fact that you wait for the dip before accumulating more, its not a bad one but its time consuming as it requires constant watching of the market, so assuming your targeted price is not meet for the week, do you add the amount to that of next week or you'll abandon that weeks accumulation?.
Reason I asked that question I believe there are times where the market just goes sideways without adding or removing any large significant amount to the market for up to  a week, and in such cases I don't think your strategy would be able to accumulate for that week. I am a very busy person, not sure if I would be able to adopt the system, but I'll love to make a trial for a month and see how it goes, but my modified strategy would be, if my buy target wasn't meet for the week, at the end of that week I'll just buy irrespective of the price, so I will not be tempted to skip accumulation for that week.

Yes and in my opinion Volatility will likely remain high in the next few days. Even if the delay returns, of course it won't be a disaster for Bitcoin and remember, ETFs don't change Bitcoin at all.



However, it should be noted that Bitcoin prices can experience unexpected price fluctuations in a short time. So, take advantage of this moment, don't be provoked and continue and don't change our original plan to save our BTC.


It's true that there are many things that make our investment temper sometimes rise and sometimes be held back by something and exactly as you said, just adjust it to our respective financial conditions and start again if we feel it's time to enter the market again because of the DCA method according to my assumptions is a relaxed and unhurried but serious investment technique.

The strategy that I am describing is pretty damned close to DCA, especially since I was doing it on a weekly basis.  Let's say, for example, I had a budget to buy bitcoin of $100 per week, and it was for 26 weeks (which would be $2,600 for 6 months).  And if the beginning of the week is Monday and the end of the week is Sunday, maybe I might identify a couple of the dips through the week or maybe I would be waiting for dips that did not end up happening, so by the end of the week (Sunday) I would use either the whole $100 or whatever parts were left to buy at that time.. of course, the beginning of the week could be chosen as any day.  and each week there was a new $100 authorized, and let's say that  I felt that I did not have time to watch the market, so maybe I would just buy or maybe the price opens at $28,500, and I would set my buy order at $27,820, and if the order did not fill by Saturday, then I would just market buy or maybe set the buy order within $50 of the current price so that I have more confidence that it is going to fill before the end of the week.

It will really work, you can have to find the grind to do it every week or even every month. But for those who doesn't have that patience, they might as well implore the strategy of buying in just one lump sum, and just leave it in their wallet, forget about it and just comeback when we are in the bull run. So it really depends on each individual. But relatively, I will also used the DCA method, I mean I have been using ever since and it has work perfectly, at least in my case and most likely those old timers here (as opposed to JayJuanGee term of normies).


True, but once you get over it (my secret is that I look for the long term goal), it's going to be easy and smooth ride and then after a year or two it will be just like regular, clockwork for you to invest and do DCA without you feeling as if it is being force on you. Of course, there will be weeks that you might not able to buy because of some contraints, but still you can go back and start all over again and continue where you left behind.

Your insightful experience with Bitcoin is indeed valuable, and learned lessons along the way serve as guide not only for you but also for those who follow you and seek to navigate the Bitcoin market. Your ability to remain patient and resilient during the unfavorable times and taking advantage of significant price dips and resist the temptation to sell premature to book modest gains during the market surges is commendable.

Investing in Bitcoin is like contributing regularly to a retirement account, that can potentially grow overtime and ultimately providing a financial cushion in retirement life to enjoy golden years of life.

Actually this was the same kind of buying strategy or rather method by brother normally use for accumulation of Bitcoin, what he does was that he will have a targeted amount of Bitcoin to be accumulated within a month and with the strategy of watching the market all the time to buy from any little dip he sees so that's the kind of strategy he normally use, according to him he said the method allows him to minimize the amount of money used in accumulating Bitcoin.

What I understand from this method is that it has to do with a lot of patient and consistently watching the market in other to have a good entry,  so is very stressful method and I can't imagine myself using that strategy but however irrespective of the little advantage it may have but it can never be compared with DCA method, because it allows you to set a target and hit it without considering the price movement.

Of course discretionary spending is a product of how much cashflow that you have coming in minus your expenses.  So you can increase your cashflow or decrease your expenses or both.


I agree with you that once someone has identified how great of an investment is bitcoin, then the BTC accumulator might well need to figure out ways to become more passionate about ways in which they can increase their discretionary income and therefore that the amount that they are able to spend on bitcoin every week, month or whatever happens to be their investment period.  And, like you said, sometimes they might be a bit too whimpy in terms of their considering that they are doing enough..

However, at the same time, one of the benefits of DCA and even a modest DCA approach, it can still end up adding up to a lot invested, even for someone who is not very convicted and/or convinced about the value of bitcoin and/or bitcoins asymmetric upside bet..

We cannot expect everyone to become passionate about bitcoin investing.. especially newbies and people who don't really feel too inclined to study and/or to research.


When I first got into bitcoin, I was actually buying every week with my set budget and also trying to find dips within the week in order to maximize my BTC buys for each of the weeks within my set budget for each of the weeks, but most people are not that passionate, and they might well be better off by not being passionate, and just exercising "set it and forget it" so after a year or two, they look at their investment rather than watching it every week like I had been doing and maybe many of the active forum members are willing to do... but normies do not necessarily want to be very active in terms of their BTC investment and that is one of the reasons why DCA can be so powerful for normies who do not want to study or watch their investment with any kind of particularity.


It seems to me that ongoing and persistent buying does help to create more conviction in bitcoin as an investment, even if sometimes the price that any of us might end up paying might not be as low as we wished that it would have had been, but even if we make a bunch of mistakes and consistently buy without selling and sometimes buy at the top and run out of money and we keep going down that ongoing buying path, there are pretty good chances (in bitcoin) that our persistency and consistency will end up paying off...

In other words, from time to time we will analyze our position and our assets and we might even start to determine that we can change our strategy because we have accumulated enough BTC... whether that happens in 1-2 years or maybe it takes 15 years to 20 years, this will vary from person to person regarding how long it might take for the person to start to consider that s/he has enough and s/he can transition from accumulation stage to maintenance stage. and sure maybe the transition will not be 100% clear because even if someone is in maintenance stage they still might accumulate BTC from time to time, but not be so concerned about accumulation because overall such person has determined that s/he has gotten enough bitcoin.


Even though you are correct that some of forum members continue to use such ambiguous language, I see no reason to give them any kind of free passes or even to fail/refuse to correct such nonsense when they employ it and even worse if they want to argue about it rather than just continuing to use it and act like they don't know any better.

I think that the problem would be much worse if no one said anything.  

Even though I might be a bit more of a stickler in regards to needing clarity of that kind of a term than many other members, there are members in a variety of forum threads who repeat such message and attacking the use of such a vague term, and there are even quite a few people in mainstream that continue to make such correction to the folks who are speaking in vagaries and potentially misleading language by using the term crypto without clarifying what they mean.

Sometimes it takes a while for these kinds of ongoing corrections to sink in.

I have had some members telling me:  "well everyone else does it" blah blah blah.. And that is not even close to an acceptable excusable to use vague, amorphous and misleading language.

Now anyone who uses the term crypto and they are sufficiently describing what they mean by such term, then I am not going to be attacking those kinds of uses of the term.  

There are ways to use the term crypto but also to make it clear what you are talking about.  I, myself, use the term crypto from time to time.. and I believe that the overwhelming majority of the time that I use the term crypto, I am not using such a term in vague, misleading and/or amorphous kind of ways.  There are ways to do it, or at least try or at least make it seem that you are making an attempt to be clear.. especially when it comes to how you are talking about bitcoin and when you might be trying to make it seem as if everything is the same.. which surely is an attack-vector on king daddy..

By the way there are smart people and even legislators who use such a term in vague ways, and usually law makers are tasked with making things clear, so when they purposefully introduce vagueness, and/or they define the term in ways that are misleading, then they are also worthy of attack for their use of vague, misleading and/or amorphous language.

I think this message you have been trying to pass since is still not well understood by most people who actually post here because I was once a partaker of such error of relating Bitcoin to other crypto and ever since I got corrected I have careful when it comes to the usage of this two words Bitcoin and crypto . Pardon me sir, but I think many of the users here don't actually mean to relate their discussion to the vast inclusion that the word crypto actually carries as most people just actually feel Bitcoin can be called crypto but I have noticed everytime this word is used in this thread their is always a correction to by you but still yet most of this same users are ignorant to your corrections.

@to all users involved in the discussion here, please the discussion is all about Bitcoin and the possible means of how one can buy and actually hold their Bitcoin for long period without selling of which DCA has come to be a iconic method to achieving this goal so every other altcoins or crypto bullshit is actually not for this thread, please staying on track with the discussion can be of great help to members that are on course to becoming a successful Bitcoin holder some day.