Topic: Buy the DIP, and HODL! - page 383. (Read 137487 times)

True, rather than intending to hold Bitcoin for the long-term, a large number of Bitcoin investors do so in the hopes of generating a quick profit. When that's the case, it appears to be gambling rather than investing. I couldn't agree more when you say that having a form of reserve, float, and/or emergency fund are essential. Regardless of what one is investing in, it is important for everyone to have these things in place. In order for people to make wise financial decisions, I believe it's critical to enlighten them about the distinctions between gambling and investing. Taking a measured risk is perfectly acceptable, but you should always weigh the rewards and risks. The potential for instant profits is what attracts a lot of folks to Bitcoin, but they might not be aware of the risks. When you decide to make any investments, it's critical to know exactly what you're getting into.

Yes, what you have said is factual. Unlike other investment that are controlled by private organisation, government agencies e.tc. Bitcoin has no central system that decides what will be the price of bitcoin in the next few days, months or year. The price of bitcoin depends on the buyers and sellers. Some holders may choose to continuing holding their bitcoin or may choose to sell off. By so doing this affects the price of bitcoin, since it depends on demand and supply. If someone with a huge amount of bitcoin decides to sell off all he got definitely you will see a shift in the price of bitcoin.

Because many people are only concerned about getting rich quick after hearing about bitcoin investment. That is the first perception that comes to their mind which is not good at all. Having the ideology that bitcoin can make you rich if you invest in it is good but making you rich quickly will at higher probability wont be possible.

Investing in bitcoin does not need any technical knowledge or graph reading, all you need to do is to just get started with the little amount that you can use to buy bitcoin that will not affect your monthly expenses based on your income, and emergency funds to save your from any emergency that occurs so that you can continue building and growing your bitcoin portfolio as a newbie.

It is good  that you start using buying your bitcoin using DCA strategy, so that you can buy regularly, either weekly or monthly, and you also need to be discipline and persistent in your bitcoin accumulation so that your bitcoin portfolio will keep on increasing with timeline. You don't need to distract yourself with looking at the graph or trying to know the technical aspect of bitcoin before you can get started. If you are someone that knows how to save money for a long period of time, it will be of a good  advantage to you.

It had been observed that most successful investors don't know much on the technical aspect of bitcoin and they don't care about reading charts, as it will not contribute anything to the growth of your bitcoin portfolio if you don't invest regularly. However, whatever you want to learnalearnaybe the technical aspect can be done as you are on your bitcoin long term accumulation jouney. It is better to get started now than later because bitcoin price movement waits for no man.

It is better that you join the moving train, so that you can benefit from bitcoin great potentials and not admiring it alone. Buy bitcoin and hodli.

Truly there is no other better way of investing in bitcoin like DCA, it is truly exceptional in giving you the comfort you need and it doesn't consume our time, like if I relied only on buying dips as a method of investing I would have to be at the chart checking price at all time, but with DCA even a busy person can use it and be successful at doing it.

It is also easy to understand and practice, even newbies like me can use it without complications and with it accumulation without stress is guaranteed.

I don't think the rules and approach we have to give to long term holding would change based on strategy, although we can say DCA would continue to be the best as long as you want to make the best out of your investment and its not time consuming when you have to wait for dips or have to think the best time to buy bitcoin.
No matter the strategy used for accumulation as you have certain things in place like emergency funds, good reservations and a six months savings budget ahead of you even if necessary for every class of person casue we have established that buying bitcoin should be done at comfort although thigns like emergency fund is a constant if you dont want to end up selling your bitcoin holdings, we don't have to be in panic from the price changes in the Market we as long term holders are already at the advantage that bitcoin historically has done better and given holders profit from long term instead of short term.
IMO I think those that are in certain level of panic are ill informed about their stand as long term holders which is the fact that they stand at a better chance of making profits than a short term holder, just like real estate price increase over time, so is the same confidence I've decided to put in bitcoin.
If they continue to panic at price fluctuations it means they don't know what it means to be a bitcoin holder or they are still with very knowledge about what they are doing.
IMO long term holdings has already eliminated the place of fear and panic about the market.

If a person buys into bitcoin and does not develop an emergency fund, float and/or reserve, then he is gambling.  Not investing. 

Yes, it might work out for him, but I would not call that either investing nor smart, especially if we are talking about bitcoin. 

If they can only gamble and they are unable to invest, then that sounds like a choice.. but sure, it is true that some people have not developed enough patience, self-discipline and/or organization to actually invest, so they end up gambling with various kinds of assets in life (perhaps including bitcoin), and sometimes they call it investing rather than admitting that they are gambling.


Emergency funds, reserve funds and float tend to need to be allocatedin the local currency or something close to the same as the local currency  (maybe some other fiat such as dollars).  Bitcoin is too volatile to serve as an emergency fund, but if you have already reached a high level of profits in bitcoin such as being 70x in profits, then maybe at that point it might not matter to you if you end up selling some at 15x profits or some other lower level of profits if the BTC price ends up correcting 50% or even 80%.

Bitcoin is not controlled by a single entity, that is why it is called a decentralized architecture. Rather Bitcoin is control by all Bitcoin users around the world.  Any individual who have the knowledge can support the Bitcoin Network by contributing some of their banwidth and by using Bitcoin Core as your main wallet. This article explain it better for you: https://bitcoin.org/en/bitcoin-core/features/network-support. If you go to the technical section of the forum, you will be able to learn more about Bitcoin and the underlying technology.

In my opinion, it depends on the person's current state after accumulating money or wealth while working. If he no longer has an income or job, then he must think about his needs while he does not have a job or income, if he is still working and earning an income. He can do DCA and also have to share some of his assets for savings, because the goal is for emergency funds without using funds for DCA.
And if you no longer work or have an income, my advice is to use the money or wealth from your work to start a business that you are good at. That way, you will have a steady income from your business that can meet your needs.
And if you still have money or wealth after creating the business, you can use it to invest in Bitcoin and still do DCA. And with this you can meet your needs, save for an emergency fund and also invest with the DCA method, all of which will give you peace of mind now and in the future.
And you can also increase purchases when you have additional or unexpected funds from your business or elsewhere to increase your holdings.

Investing all your entire wealth on bitcoin is a bad investment strategy, because for you to be successful in your bitcoin journey. you don't need to invest all your wealth on bitcoin without having an emerfency funds to back you up when an emergency arise and it will make you to go and sell your bitcoin to take care of your emergency, which has terminated the purpose of increasing your investment, and long term hodli, due to lack of preparation and understanding how to be successful in your bitcoin journey.

For an investor to be able to survive in his long term investment journey, he must consider three things, which are his monthly expenses, emergency funds that will last for 3-6 months,and the money that he will use to invest that wouldn't be stressful and mount pressure on him that will make him think of selling to sort out one or two emergencies that will arise. This is because there are some unforeseen circimstances that will play out during out investment journey.

Another thing is that instead of investing all your entire wealth on bitcoin, after you must have kept your emergency funds and your monthly expenses aside, you can divide the rest into three parts, you use the fisty part to limp sum, use the seconf part for yout regulat DCA weekly or monthly and you keep the third on for buying at the dip, instead of going using all to lump sum.

Actually I don't no what you meant by unwanted information but however if you are referring to DCA strategy I don't think there is any information required before starting using it, however in DCA all you need is just to keep your budget which you will use to accumulate Bitcoin either on weekly or monthly basis and also you don't need to have so much knowledge or experience because those are not the determining factor weather you can start DCA or not. Also DCA doesn't attract investors because is just a strategy established to help people minimize some of the risk and also give investors the guidelines on how they can follow during there investment so that they will not get into trouble on the process, so actually you shouldn't misunderstand DCA to be something that attract investors because that's not the work of DCA.

I have seen before graph about bitcoin that started 2009. The more I see, the more surprised I am. I've Seen About Just Now. How is it possible. It could not have come so far so fast if there was no strong management behind it. How Bitcoin Inventor managed such a huge project easily while keeping himself hidden. also excited about huge people are involvement and day by day people are interested in it. If anybody seen the graph their will no any confusion about investment in bitcoin. saving something dollar and after a period investment bring you more profitable. I don't think if you invest elsewhere you will get so much profit.

I've been trying to hold Bitcoin for a long time. I am specifically holding using the DCA method. I invest some of my income in Bitcoin every month, (though I can't hold too much money every month). I started holding Bitcoin a few days after I came to this forum. Currently I have some holdings too, and I want to increase my portfolio much more using the DCA method. I strongly believe that one day I will be able to own more wealth. I believe the price of Bitcoin will increase a lot in the next halving and it will go much further. I will always invest some of my earnings in the DCA system, and I will prolong my investment, and one day create a much larger asset. And I always believe that Bitcoin will skyrocket one day.

Mate your totally right about our need to build up an emergency funds, but I think your not clear on the reason why we are building this emergency funds, the reasons you described are not what emergency funds sre used for.


Your reasons here for building emergency funds are not very correct l, we are not supposed to use our emergency funds for or to support our investment in anyway, emergency funds are built in case of any emergency we would face that would cause us to tamper with our Bitcoin holdings and sell them before or even after maturity which I mean an investment that has been accumulated for over 4-10 years. Some times unforseen events can occur and cause us to tamper with our Bitcoin holdings, which we did not plan for so we use our emergency funds to solve such problems.
We build emergency funds to create a sate of comfort and protection for our investment, that would help us hold our Bitcoin better till our desired time.


Bro your seriously mixing what emergency funds and reserves are used for.
Emergency funds are there to help us in state of panics and in situations where by we have no choice than to touch our investment like in state of accidents or illness that we have to make heavy decisions, in cases like this we have no choice than to touch or sell our holdings.

Reserves are built to support our investment in cases where opportunities like dips happen and we want to take advantage of , its tags extra cash we keep for opportunities like this and in cases where we need some cash to support our weekly DCA strategies cause of lack or shortage of funds.

The first thing that seems to me is that if a person is to be financially self-sufficient or to manage economic affairs well, he should have enough knowledge about them. The important point here is that if one does not have the knowledge or ability to manage finances, he will fail to manage whatever money he has. Now you need to understand what percentage of money you will invest and how many weeks to keep the destruction money reserve, which is the best way to use it later if there is a problem. Many people face the problem that while investing they end up investing all the money they have and later when they need half of it, they end up with a loan which causes a lot of problems. You should always think that 70% percent of what you have going to invest and 30% percent you keep for yourself is wise and those who invest like this. But those who choose to take a lot of risks are different and viewed differently.

Investment Management: More Than Just Buying and Selling Stocks. if you can see it for idea.

It cannot be said that forming an emergency fund is absolutely unimportant when it comes to investment. People who are very serious about investing and who don't want to miss out on their investment in any way create an emergency fund. You say there is no need for emergency fund for investment, I am telling you the need for emergency fund.  

* Having an emergency fund in place will allow you to continue your investments from the emergency fund if you ever find it difficult to manage your money.  
* Having an emergency fund will make your investments stronger.  
*There is no chance of you missing out on your investment as a result of the emergency fund.  
* If you invest a portion of your salary every month and if you get salary late in any month but you can use money from your emergency fund to invest.  
But investment can be done without emergency fund but investment is stronger if emergency fund is there.

Emergency funds are only used by investors when they cannot manage enough money to invest regularly. If there is money to invest consistently every month, money from the emergency fund will not be spent, but when the money is not managed, we are forced to use the money from the emergency fund.  

Building an emergency fund is not at all a difficult task for an investor, the investor should keep three times the amount of money he invests in the reserve fund every month. If he keeps three times the money, if he is unable to manage the money in the next three months, then he can use the money from that reserve fund to continue his investment.

Investments should always be made with the plan that we will hold the amount of investment we are investing and if we can, we will increase the investment but we are not in favor of selling the investment. After investing, if the investment is sold due to urgent need, then there is no value in investing. If an investor thinks about the things he might need in addition to investing, he can save some extra money so that he can meet his needs from that saved money when needed. Invested with all the money but suddenly his financial need arose and at that time he sold his investment, in which case the investor may face loss. The investor will face losses because the market will not be positive all the time and the market will not always be the same, maybe it will be seen when he sells his investment, the market has gone down a bit in this case but he has to invest bitcoins with some loss from the purchase price. More importantly, he is not able to hold his investment for a certain period of time whereas before investing he invested for long term and invested for good amount of profit. This kind of planning should be done by the investor before investing because if the investment is not done properly then the investor has to go through many challenges to sustain his investment later on.

If you do not have funds to start investing in Bitcoin, the first thing is to get a source of funds. It is from the funds that you will set aside some part for emergency after meeting your immediate needs. It is when this emergency funds have been set aside you are expected to invest from the remaining funds. I think this is the right sequence. If setting up emergency fund is stressful like you said, what such person need is not investment but a source of funds. It is as simple as this else the whole essence of investment will be defeated.


You might be mistaking emergency funds for something else. Before becoming an investor, you are expected to have already built an emergency fund before considering investment because it is the emergency fund that will enable you hold the investment for a long time. I think a proper understanding of the sequence is important at this point to avoid making a mistake.

If you read above this post, you will see some replies regarding securing of emergency funds before entering into any investment. Emergency which happens accidentally are not what planned for but can happen in diverse means, it is either a good or bad scenario which will definitely require expenses that you can't just put aside. If our target is to buy and accumulate Bitcoin without falling out of our style of living, then we sucom to the fact of first holding up our emergency funds before entering into Bitcoin accumulation. A decline in this strategy will definitely end a person halfway from him investing and also make him tamper with his portfolio due to facing unforseen circumstances that should have been dealt with by just having extra funds aside.

The reason I so much cherish the DCA method of investing in Bitcoin is because it eliminates most of the concerns you have just raised in your comment. The DCA method helps stop you from worries and continual worries about your investment because you are putting just a little part of your income in a regular basis, in such a way that it will not impact negatively on your living condition. You can practically start investing in Bitcoin through the DCA method provided the basic requirements are met.

Secondly, you don't have to be a pro to invest in Bitcoin through the DCA method, you just have to discipline to follow the principles. It is not like day trading where you need to have expert technical knowledge of the market neither did it require you to be an investor for several years, even a newbie can apply it just like most of us started using it when we have just little knowledge of Bitcoin. This is how simple and cool the DCA method can be and why it is the preferred method for little fries like us who are aspiring to build something significant for the future.

I don't think investing all your money into bitcoin would be the best idea no matter how you desire to own bitcoin because to properly hold your assets they must be a place of comfort and stability in what you are doing. It's been discussed several time here that comfort is one basic things we need to consider in order not to sell our assets, cause it would be unwise to later sell those assets because an emergency came up or you enter a state of panic because of lack of funds. I'll rather advice if the money he want to invest is huge, he can split it into two parts, like let's say he has a total of 5000$ worth of cash that he wants to invest, its preferable he splits the money into two parts and invests 2500$ with DCA while he divides the rest as emergency funds and to build up his reserves. This would  enable him have space to plan things out as he acquires more knowledge on bitcoin investment and also know how to set up more of his income into DCA. And if he does this rightly he is already at an advantage of having huge capital that can cover up for emergency funds and good reservations while he invests with comfort.

I agree with you because bitcoin is something that will have to hold for a long term before we can see the profit that can change our lives. It is important for anyone who has completed his bitcoin accumulation plan to diversify into other businesses that are not bitcoin-related, like selling commodities or real estate, so that as you are holding your bitcoin until the year you intend to sell it, you have a business that will give you money to solve your daily needs and also have the strength to hold your bitcoin for the long term because you have a business that is given your money and you will not be thinking of selling your bitcoin to sort yourself out.

No one should ever go all in into any investment whether bitcoin investment or any other type of investment unless it is an investment that was developed by yourself. Just like a business or company. Yes, some persons may consider  it as taking risk. But it is not unwise because if along the line some life challenges start occuring the investor will look back to his investment since he that is the only option he have money in. Solving the problem with some part of his investment would be the only choice and it will cost to jeopardizing his investment, prone to risk. Infact, if the market begin to dip that will put him in a state of pressure and loses. This is why i consider dca approach as the best approach to bitcoin investment. It limits unnecessary pressure and give you opportunities to keep some money for yourself while you accumulate your bitcoin.