Topic: Buy the DIP, and HODL! - page 379. (Read 123458 times)

The uniqueness of Bitcoin is the fact that price does not continue in one direction forever, it goes up and retraces sometimes in what is called correction. The term "buy the dip" comes from this corrections where it is expected that one can buy at lower prices. Those who are actually practicing buying the dip now have a golden opportunity before them to buy at prices lower than $44k which is about the short term high before the retracement.
The only weakness of buying the dip is because it will be difficult knowing the end of the dip. One can buy when price moved from $44k to $41k thinking you have bought the dip without knowing that price was headed for $38k and lower prices. This will however be a problem only to those who are buying so that they will sell immediately price start rising. For those holding for long term, such scenario will not be a problem because they are not eager to sell.

Interestingly,  those of us using the DCA method do not really pay much attention to the price because wether price dips or not, we already budgeted the amount to buy per week. This time that price dips only make us have more BTC for the same dollar amount we would have spent assuming price were at $44k.

They are too focused on the price of one bitcoin chip and feel that the money they have is not enough even to buy 0.1 bitcoin which causes them to think that the price is too high, and I also think the same thing, that there are still many people who do not realize that DCA is the most appropriate strategy for people with low, medium and sufficient income, even though with DCA we can manage it according to our abilities.

This thread is very helpful and I hope a lot of people continue to talk about this, because I think discussing in this thread even with the reviews piling up and repeating, but the usefulness will come to each new person who comes to this thread.

The price is coming down again so those who are interested to buy should do that and start the investment journey and I don't think Bitcoin price will still go down to $30k again. Because of the increment of price these days many people were learning trading because they could not afford to buy it and it an opportunity again. But one thing no am also thinking of it is that for now we can't buy from p2p because of the high transaction fee. Like if I want to buy Bitcoin from a friend who's using Electrum wallet to send me Bitcoin to my Electrum wallet, the fee will be unbearable so it will be difficult for people to buy the dip and hodle.

A person who spends thousands of hours learning something is much more likely to succeed if they study with focus. Most of the times we notice that people do everything just for entertainment, but they don't try to learn something that will change their life. If every person works with bitcoin or any other technology then it will be very easy for him to improve.

Now we cannot accept everyone's advice but we have to try. We must study so that we can use our time properly. If you don't study, you will never know how things actually happen. And studying for all these subjects is very important.

There is a lot of news out there that may be difficult to distinguish which news is trash and which news is genuine. For me the ratio is 1 to 100 or even more than that.
Now is the age of easy access to things and like it or not behind the convenience there are definitely negatives that are in it, we cannot separate the two words, positive and negative, because both will always walk side by side, that's how we can sort it out or not.
There is nothing wrong with listening to advice from other people or groups, but we should not swallow it raw or in other words, we immediately believe it. After all, we have to review what others say, until we find the real facts.

Yes indeed since suggestions given might not work to us since we have different level of patience and understandings on how things works that's why its never good to us to follow someones advice since we might just get disappointed with the result that will show to us. Much better if we just get an idea base on what people discussing about especially here since from that we can develop something important to use on taking decision especially for what we like to do on our acquired bitcoins.

Also not everyone is open for a lot of informations since some are just so lazy to check for another source so they could find good information that's why they always got stuck and get slow progress since they only follow those advices coming from single person they are following. That's why as you said critical thinking is really important so that we can figure out immediately if something is really working for us or not.

Surely, I am not suggesting to NOT follow the advice of others or even to be able to attempt to learn from people of differing perspectives, and some people are very smart in some ways that differ from our own, and sometimes we understand other people and sometimes we do don't.

There should be some lines of progression since when we are younger we are more likely needing more guidance and counseling but some folks advance more quickly than others in terms of their critical thinking skills....

It is also not always easy to know what we know and know what we do not know, and some times it can take thousands of hours to learn about a certain subject, and sometimes people need some very basic skills and experiences to even be able to relate to certain topics, and so there could be some topics in which we are either early in our learning or we are struggling to understand certain aspects of the topic, so we may well be more dependent upon the observations of others, than to form our own opinion.. and whether we have time to study that area or whether our time is well spent to study certain topics can be questions of judgement including that we might not be able to have strong opinions in areas in which we are struggling to understand that topic.


That part is true.. There can be some topics that we easily figure out and then other topics that take time, and I have had friends that said that they spent 10s if not hundreds of hours studying aspects of bitcoin, and they say that they still do not understand bitcoin very well, and there can be a lot of reason for confusion, and sometimes, some people have been in bitcoin  (and perhaps shitcoins too) for many years, but there still might be some basics that they do not understand very well, and a person brand new to bitcoin might not be able to notice if their mentor is kind of full of shit, and it could take a few years to figure out that they may have outgrown their teacher.. because there are some teachers who are able to teach ONLY so many things to the student, and then the student might know more than the teacher in certain areas due to studying and maybe other characteristics or limitations that any of us might have in terms of our ability to learn past certain kinds of ways that we might think about the world or about certain topics.

It totally depends on the holder to invest in Bitcoin. Because DCA method is the best method to invest I have not found a better method yet. Usually based on the income of those who work, he will invest with extra money based on household expenses.

But it depends on how long a holder invests. Usually those who invest in Bitcoin are investing for the long term. But one thing we can advise everyone is that you can invest in Bitcoin for at least 5 to 10 years, and even more. The longer the investment in Bitcoin, the more Bitcoin you can hold for the future.


I have invested in Bitcoin DCA method and I like this strategy very much. Because firstly I started investing in Bitcoin following DCA method with small amount of assets but now (13 months of my Bitcoin investment age) the portfolio has grown enormously during this period. I've put it away for the long term future. I will grow my portfolio. I hope to own more assets from here on out, and this is the best way for me to grow.

I have similar testimony as you, the only difference being the time of entry because you seem to have started earlier than me. I can say it for certain that the DCA method is the most powerful approach I have seen regarding investing.

I used to think that it was too late to invest in Bitcoin since the price has gone up so much.  But this few months of using the DCA method have proven me wrong. My mindset changed when I realised that my Bitcoin portfolio have grown into something significant when I do not even feel I'm putting money somewhere because I calculated my DCA amount in such a way that I will not feel any stress.

I feel a lot of people are still having this same challenge of thinking that Bitcoin price have gone too high for their investment consideration. Anyone in such a situation should just give the DCA method a try and see how it will pan out six months from now.

There is a famous saying "give a man a fish you feed him for a day. Teach a man to fish and you feed him for a lifetime.". Likewise, if we start thinking from our own brain then it might take some time to develop good critical thinking skills but once they are developed they will be with us for life. There is no use of following other advice or signalling group.
One need time and dedication to validate information that is at his disposal. Since there is lots of information floating around, we need to separate the real one from the garbage.
All this will help in developing skills that can judge whether the logic presented in the source (news) is valid or not. May be in start we get no good results but with time this approach will mature.

Exactly... (Dollar Cost Averaging) DCA is a good strategy for people who are unsure about how to invest in BTC. It works well for all people.
But I also think its important for people to keep learning about different strategies for investing in BTC. While DCA is good for beginners or those who have limited money but it is good to find other strategies too.
Quickly investing a lot of money or taking a big chunk out of the salary. In those cases... combining DCA with buy when the price is low be a good idea. It is important to think about the situation and decide when its a good time to change strategies.
It is important also to think about diversifying your investments in others strategy with the passage of time as your BTC investment will grow.
I think this is also important to change the strategy with time and should continue to learn about more strategies which will really help in future.
If we will continue learning and not stuck ourselves in one strategy so I think this is also a good strategy.
And for Bitcoin every strategy will work if this strategy ends at HODL.

Why are you continuing to pursue this dumb idea?  We are not talking about trading here, and probably for an overwhelming majority of normal people, they neither have skills or time for trading, so why employ a more advance technique when it is not necessary.. You are merely complicating matters by 1) suggesting trading is a good thing and 2) even suggesting that trading is something that is needed to know prior to getting into bitcoin...   You are suggesting the opposite of the truth, and I wonder why?  Do you even recognize and appreciate that trading is a more advance technique?  Why are you promoting trading as if it were a less advance technique?  I feel like I am repeating myself.


Yes.. they get burned by trading, but not by investing.

if they invest, they just pick a position size, such as investing $100 per week or some other amount.  And sure they could also lump sum invest (such as front-load into bitcoin) or buy on dips, but it is likely best to start out with the most basic and build their way up to more complicated techniques after they first get used to getting into bitcoin.  Some people have more knowledge and experiences in regards to investing and managing their cashlfow so that they are able to invest, so if they are new to investing, then they might have to learn some of the basics of just managing their cashflows, but they can learn those kinds of basic things as they regularly continue to build a bitcoin position.. and they might be building a bitcoin position for 4-10 years or longer.. so does not hurt to try to study aspects of bitcoin and to get used to bitcoin as they are buying it and even learning where and how to store their BTC...and so in the very beginning they might not need to know as much about where and how to store their BTC, but if they invest a lot or they continue to build their bitcoin investment portfolio, then they may well need to learn more about the various ways to securely store their coins, including figuring out ways to manage their own BTC private keys rather than having their BTC held with third parties. 

Those learnings of how to store and secure your coins are likely more important skills than learning about trading.... and no one should want to trade something as potentially valuable as bitcoin.. best thing is to build it up, and surely if they get to a large enough BTC stash in the future, then maybe they might choose to fuck around (and trade) with some small portion of their BTC, such as less than 10% of their BTC holdings.


Sure, the more that people buy into BTC, then they may well become concerned over changes in value, but they also can look at past charts and see that bitcoin has a history that includes a lot of price volatility that is likely not going to stop any time soon.


Ultimately a person has to figure out his own investing style and how much to invest into bitcoin without it causing him to become overly emotional about it, and surely there can be some benefits towards investing somewhat aggressively and maybe being able to deal with negative BTC price performance by having some kinds of buying plans.. whether it is buying on dips or just continuing to buy BTC for several years while building a BTC investment portfolio, and depending upon how much they are investing, such as if they are investing 10% to 25% of their income into BTC, then they may well establish a decently-sized bitcoin position faster than if he might be investing only 1% t0 5%, then it will take a lot longer to build a decently sized BTC investment position.


DCA tends to be a good strategy for someone building a position and if they are not sure what to do or how to get exposure to BTC, and they might not even be sure how long they are going to keep investing into BTC or to continue to hold their position.

Even though DCA tends to be amongst the best BTC accumulation strategy for an overwhelming majority of people, anyone can adapt their BTC accumulation approach based on spending time to learn more about ways to employ other strategies, but if they are somewhat new to building a BTC position, and maybe even if they do not have money that they can transfer to bitcoin from other places, they may well be better off to employ strict forms of DCA or mild variations of DCA that is largely just adapting to their cashflow situation.

If someone builds up his bitcoin position fast by either lump summing into bitcoin or maybe just drawing a high percentage of their salary to buy bitcoin, they might put themselves into a position in which they might want to combine DCA with buying on dips or maybe even convert into buying on dips, and it can be difficult to know when someone might be better off to convert to some other strategy, because if someone ONLY invests into bitcoin, there may be some needs to diversify into other investments, especially once their bitcoin investment starts to reach a year or even several years of their annual salary, and there could likely be circumstances in which it makes sense to start to diversify into other investments even before having had accumulated a whole years salary into bitcoin.


Of course, it is good to develop good critical thinking skills, which largely would mean that we need to be able to sort better kinds of information from worse kinds of information, so many statements will have facts, logic (analysis) and conclusions (opinions), so we can question the sources of information in regards to any of those whether they are providing good facts, logic and/or conclusions.. and so when we are new to a topic, we might have more difficulties figuring out if the facts are being described correctly, sometimes, we will have to learn skills to be able to determine if the logic is sound and if they logic leads to the conclusions that are reached.

Trusted sources do help, especially when we are new to a topic, but sometimes trusted sources are not correct on all topics... sometime we can also compare various trusted sources, and even compare them with untrusted sources (to the extent that we are willing to get distracted by spending time reading and/or analyzing untrusted sources who sometimes do present accurate information on some topics)... and sometimes we also have to forum our own conclusions based on various opinions, and sometimes we cannot find anyone who might speak to exact topics or issues that we personally need to resolve, and we may well need to take a position (or take some kind of action and come to our own conclusions, and sometimes if we are not sure, then we might moderate the position/action that we take).


We are ONLY talking about bitcoin, so fuck shitcoins.

DCA does not necessarily work on shitcoins, especially since there may well not be any shitcoins that have an investment thesis that is strong enough in order to invest into them.  You have to have a strong investment thesis in order for DCA to be justifiable... which works iwth Bitcoin.. and yes, bitcoin is the topic of this thread.. not shitcoins or crypto.. whatever the fuck that is.


We are not trading here either... so long term might not be 2024 unless maybe you have been investing since 2020 or earlier, and maybe if you have a 4-10 year or longer investment time horizon, you still might not be necessarily looking at selling in 2024 or 2025 or whenever the ATH comes, but it is surely nice to be getting BTC prior to the next ATH, so I will agree with you about the benefits of buying BTC prior to the next ATH, to the extent that you were potentially talking about BTC rather than shitcoin or crypto, whatever that might be.. we could give less than two shits about other coins.. so we are ONLY talking about bitcoin here, in this thread.


You should always try to create enough of an emergency fund that accounts for your variation in your cashflow or even emergencies that might happen so that you should never have to sell any of your BTC, except at a time that is completely of your own choosing, such as the BTC prices are going up or even that you have been holding BTC for a long enough time that you have transitioned from your accumulation stage to your maintenance stage.

So, the more that you know in advance that you might have emergencies, the more you should know that you should not be investing into bitcoin in such a way that bitcoin is going to have to be a source of emergency funds for you.  These kinds of emergency fund matters are more important to beginner investors, and very beginner investors might not have even thought about having an emergency fund, and frequently the lack of an emergency fund is a sign that the person has failed/refused to plan and probably has overinvested into bitcoin, which is not a good position to be.

I personally believe that the lack of an emergency fund should not serve as a reason to NOT invest into bitcoin, but a person who is beginning to invest into bitcoin, might have to keep his investment into bitcoin at a smaller level while he is building up the size of his emergency fund, and an emergency fund should be between 3 months to 6 months salary/expenses, and the more solid a person's emergency fund, the more aggressive that he can afford to be in his bitcoin investment  and/or any other investment that he chooses to make.

By the way, if a person has reached entry-level fuck you status, or even higher than that (such as multiple levels of fuck you status), his emergency fund becomes less important.  Reaching fuck you status just means that the person does not have to work, and maybe he chooses to work, but he does not have to.  Anyhow, if a person has considerable amount of wealth that he is able to draw from the wealth on a regular basis to pay for his monthly expenses, then if an emergency comes, maybe he has money that is set aside for an emergency fund, but it might not matter very much if his wealth is excessive, so his emergency fund is less critical to maintain (in terms of getting reckt financially/psychologically) as compared with a newer investor who is earlier in his building up of his investment portfolio.  The earlier you are, the more important it is to have an emergency fund, and not to get reckt because you were to greedy to be investing money that you actually needed for your expenses and for your failure/refusal to establish an emergency fund.

It doesn't matter how you do DCA either weekly or bi-weekly. The important thing is; You do it consistently as long as you have an income. The problem experienced by most people is the inconsistency of income which makes them unable to determine the investment period regularly. If you manage to set aside a budget of $50 a week, it's best to do DCA every week rather than doing it every two weeks. But of course you can do it based on your own wishes and which one is best in your opinion.

But sometimes you also need to consider a lump sum, it is a good option to get more bitcoin at a low price; for example when the correction is more than 5%. I've done it a few times this year, but DCA is the one I prioritize.

What you say is quite correct, in fact I have been doing it for the last 1 year by stacking with DCA. First of all, we have to be consistent in continuing to buy at maturity and don't worry about short-term price movements because that can doubt the decision. After we go through 10 stages of purchasing with dca, you will be more confident in continuing to buy because our confidence will grow in continuing to buy at each stage. I make purchases every 2 weeks and I only make two purchases a month.

However, there are also those who make purchases every week, but it all depends on the strategy they apply. Those who implemented DCA purchases in the last year were lucky enough to be able to buy BTC at a cheaper price of $20k at that time. The best thing is to buy and keep holding and don't sell all your BTC holdings if you are in an economic crisis, sell just a little and when your economy recovers you can budget back funds to continue buying BTC.

I come back to this thread and want to say that the discussion brought in this thread about bitcoin buying strategies and such that Jayjuangee and other colleagues always talk about the importance of DCA in investing in bitcoin, without market pressure due to declines, having buying opportunities at the lowest price in the trend, this allows you to get both short-term and long-term profits.

I previously discussed DCA when the price of bitcoin moved between $20k-$30k in this thread, and while I accumulated little by little, because I was just a worker, so DCA was the right strategy that I had to do in investing in bitcoin, so far precisely in December the profit could be calculated at 60%-70% from 6-7 months ago.

and HOLD BTC is the action you should choose

Why to do day trading when we know that success is in long term investment not the other way. Bitcoin doesn't move in a pattern that we can predict his future price accurately. Like in current bull run everyone was saying that Bitcoin will very soon be touching 50k but we see there is some resistance at 43k and price is yet to cross 43k. We know price will surely reach 50k in the long run but in short run there is no way we can say on which day we see price crossing 43k or making its way to 50k.
If you follow such small signals only then one can figure out why long term hodling is better then short term trading. From distance it looks like day trading is very much profitable but in reality ts not. 

Every information you get from any source must be identified as the initial source of information, so don't trust the source of information without checking the truth of the information on other information sources, don't even completely trust bitcoin information on website sources, some negative news on the crypto market without a clear source and their media often publish news based on assumptions to influence panic during market corrections. In my opinion, the only trusted sources of information are the Bitcointalk, Telegram and X forums, but it must come from a trusted account.

The DCA method is very effective for realizing the crypto investment that you have planned according to your individual finances. I think if they choose another method it is very risky for the unpredictable crypto market, so we don't need to look at other methods but we can combine the DCA method with Another investment method to be able to handle the risk of loss, according to the topic title "Buy the Dip, and Hold!" is an important part of the DCA method, so investors or traders who apply the DCA method have planned to save reserve funds to increase investment at the DIP price, and they will hold for the long term until they reach ATH 2024.

I understand what you meant about people being greedy and not knowing much about Bitcoin... when they start investing. Its a good idea to start with a small amount of money when learning about it. It is also ok... to change the mind as learn more.
By the way you are also right it can hard to know  the information about Bitcoin is trusted or not. Some sources give wrong information... but there is good sources too that teach us important things. It might take time to figure out... which sources is good but it is important to stay inform and look for trusted sources.
Listening to podcasts... and reading articles from people who know better about Bitcoin... could help us understanding it better. Its important to be careful about other cryptocurrencies that may distract... With always learning and stay informed can tell us to make better decisions about our Bitcoin investments. But if anyone using the DCA method so I think this is the best strategy which should not be changed. If anyone want to change strategy so this is better he/s should make a new plan of investment.

Maybe it can help if they do good trades and earn some profit from their daily trading activities but its really hard to achieve this since we provably face a lot of stress due to unpredictability of the market that's why beginners should never play with this if they are new especially if they are eager to get profit since for sure they will just get burned for their wrong expecting and executing some wrong actions.

But since we all see how bitcoin grows and show this is for long term much really better for anyone to invest for this coin for long term since it can save them from stress and time for always there monitoring the market movements. Newbie should learn to acquire some skills and patience since this could give them real profit if they learn to hold for long term since if they always there for short term for sure there's nothing gonna happen on their investment as they remain eating chunks.

We can only see that pumping dumping scheme on shitcoins so maybe people usually go there for short term only especially those what so called skilled trader but for newbie they should know the risk for trading and following someone investing since for sure they would provably get drought and lose their money which they think before to use for investment in bitcoin.

source
More nearer than ever.