Topic: Buy the DIP, and HODL! - page 385. (Read 123429 times)

Those who are new investors should follow your investment method. You have followed the best investment strategy here and I appreciate your investment strategy. Many new investors think that they need to gather a good amount of money first and then invest with the whole amount, but you have proven by investing in a different strategy that investing in Bitcoin does not require a lot of money.

I follow your path when it comes to catching up on my investments because I don't end my investments once I invest but rather I keep my investment streak going. 
When it comes to investing, sometimes we need to make decisions from different strategies and different schools of thought. It's not bad at all if you can succeed by doing something different instead of doing the same thing that everyone else is doing. You started investing when the price of Bitcoin was between $20,000 and $25,000 to catch up and you continued your investment until the current state of the market. 

Since you are planning to hold your investment for long term, I need not say anything new about holding investment for long term. You can share the investment strategy you are using with other new investors who come to you to learn about investing. I think buying bitcoin step by step and increasing your investment amount is not only followed by new investors but old investors may follow this strategy.

Yep.. very problematic mindset, and also we have a decently large history of those kinds of guys who end up bitter as fuck about bitcoin because they end up not getting as much DOWNity as they thought that they were going to get in order to buy back in, and then they end up waiting, waiting and waiting, and sure some of them might end up buying back in, instead of being bitter, but many times, they just don't have a proper kind of perspective to appreciate the power of the investment that they are in.

Accordingly, I frequently say people can do whatever they want, but at the same time, it is likely way better to not even thinking about playing around with selling until you get to a decently large (and perhaps even too much of a) BTC accumulation level..and even if many of us talk about various guidelines for when that might be or how much that might be, it is up to each of us to figure out those kinds of balances regarding how much is enough and how much is too much... and try NOT to get greedy in these kinds of calculations with the realization that any BTC that you sell may well end up never being able to be bought back, so keep in mind that any amount that you sell may well end up depleting your BTC portfolio size and be willing to accept that as a consequence of selling and taking the chances that the BTC price may well not go down from the point of the sale.

Actually investing in bitcoins should be done like you do. Maybe there are many people who bought Bitcoin when it was $25-30k, maybe they sold Bitcoin in this short bull market and maybe they hope to buy Bitcoin again when the market goes down. Those who think like this should keep in mind that Bitcoin prices may not go down any further.

I had a friend who bought bitcoin when it was 27k. But he came to me for advice to sell after seeing bitcoin price at $44k, I told him to hold for another 1-2 years. But he didn't listen to me and finally sold the bitcoins, he will wait again when the price of bitcoins goes down and buy again.

Those who couldn't handle the greed sold Bitcoin in this short bull market. Those who cannot control their greed in this small bull market will not be able to make much profit. At this time Bitcoin should be held patiently without selling. Bitcoin halving next year, we all know after bitcoin halving bitcoin price goes up a lot. So do not sell bitcoins and hold them at this time.

It all depends on experience. I would rather not sell now because I am not sure how long this growth will continue. But I know that after halving a new cycle will start, and if I sell now, I may lose the opportunity to buy cheaper later. And someone more experienced can buy and sell in time.

If you are fairly new to investing and you are focusing on having bitcoin as one of your early (or beginning) investments, then you likely need to continue to buy bitcoin at whatever price it is at until you build up to a certain amount of bitcoin that starts to cause you to feel that you have enough in order to let off and perhaps invest into other assets, and gosh even if you been investing into bitcoin for one or two years as a newbie investor (and you did not lump sum into it), it hardly could be the case that you are even close to having a whole year's salary and/or expenses into bitcoin, so it is difficult to say that you are overinvested if you do not have at least a year's investment into bitcoin, even if you do not have any other investments.

At the same time, each of us has to make these kinds of decisions for ourselves, including if someone had never spent any time building up savings/investments, then s/he might not really know how to deal with both the fact that their investment is starting to get large and that it amounts to way more money than they have ever had access to previously.... so in that regard, it becomes even more and more important to make sure that your investment is secure.. and surely privately held would be better than holding much of your investment with third parties.. Personally I don't have any problem with the idea of holding your investment with third parties when you are just getting started, but the longer that you are in bitcoin, maybe even 6 months or more, there is likely going to be some needs to make sure that you know how to hold a decent amount (maybe even 80% to 90% of your bitcoin stash within your own control.. yes that takes responsibility, but it seems to become more and more important as your BTC holdings grow in value both from your ongoing injection of cash into it and also from potential periods like our current one, in which the value of your BTC holdings may well be going up based on BTC price appreciation.

If you invest long term but avoid Bitcoin then I would say your investment is incomplete. Bitcoin must be preferred as an investment platform if you are thinking of long-term investment. Outside of Bitcoin I don't see any coin that can be invested in for a long time. Bitcoin has always been the best coin to invest in for as long as I have known about investing. 

I have been investing in long term plans for a long time and my investment platform is Bitcoin. I held my investment as well as purchased bitcoins in several steps. I bought some bitcoins when the price of bitcoin was $22K, then I bought some bitcoins when the price of bitcoins came to $25K, then I bought some bitcoins at $28K, and then I bought some at $35K. 

That is, even though the price of Bitcoin has changed in these few months, I have invested in Bitcoin regularly. The reason I invest in Bitcoin during these periods of Bitcoin price volatility is to hold my investment for the long term. The price of Bitcoin is now around $45K and I have not stopped my investment at all at this point but I will be buying several more Bitcoins in a few days. 
Many may dissuade me not to invest at this time but I will invest at this time because I have faith in the market and my investment is in long term plan.

This is what Bitcoin investment is about i.e. long term. If someone is looking for short term gain then he must look into Bitcoin. See the history of Bitcoin and we can see that there is good increase in price every 4 to 5 years. Long term investment doesn't only mean to avoid selling while price is down, it also include not selling even if you are getting few bucks over your investment. For instance, there are people who are getting excited on this bull run. They must HODL and should not sell in this small bull run. If they do so they will miss out the bigger piece of the cake.

Unfortunately,  many traders are trapped in this process. At the beginning, trading seems so easy as you will easily make profit for the method you have adopted. This initial ease of profit is what make many people to discard risk management and be overwhelmed by greed under the pretext "easy money". It is after a while it begins to get tougher for the trader as everything will magically begin to fail, the once efficient strategy will become a losing pathway. At this point, the trader will seek a new method and the cycle continues.

The challenge with trading is consistency. This is where many traders fail, hence, why trading is very risky. It is actually few traders that have achieved consistency in trading and are actually making profits. The rest are winning and losing and at the end, the capital is being depleted.

So it is safer to go with long term holding that requires minimal efforts and can yield greater returns with lesser risk exposure.

There are two important keys to investing if someone has set their intentions strong enough to invest in Bitcoin for the long term. The first thing that a Bitcoin investor must have is knowledge which includes the best ideas and also includes a strong mentality so that he will not easily panic and get down when he sees bad news regarding the crypto space. And the second is sufficient money, meaning that any money put into the investment is no longer related to other things in life because he has provided other money as a reserve for his own living needs.

I can quite understand what you are saying because everyone faces real life with various financial expenses. But to learn Bitcoin I don't think someone needs to have money first or income first and then calculate it unnecessarily. Because Bitcoin does not require everyone to have money first in order to learn and understand it well enough. And besides, nowadays there are many beginners who are studying Bitcoin quite hard and I am also quite sure that not all of them have money even though they have started studying Bitcoin.

For my own personal opinion, I think it's best not to even try and trade some of your Bitcoin for extra earning because I think that's where you are driving at because I doubt if you won't be carried away if actually you secured some little at trying one or two times, there is no guarantee that it will continue and that would be risking your Bitcoin because if the whole situation turns sideways and instead of profits you amount loses then for sure you if didn't plan well you will definitely end up touching your holding just as you mentioned to solve unexpected events as the money for such was not properly set for.

I feel their is no point at all starting up an investment if actually you are not ready because it will all be a big waste of time as you might end up touching your Bitcoin for other things that are vital that you didn't plan well for so before one should think of making any plans of investing , you should able to have more than one place of cash flow and also have a strong concept of wanting to hold for long because even without that the fear of the price going down can make you sell off your Bitcoin.

Yeah that's true, the bull market Normally triggers alot of things because of the high hopes of possible return in which investors feel they can gather during this period. But investing with huge money and not calculating for the rainy is actually a very bad idea as you would end up tempering with your coins as their was no proper planning or back up with your investment. In investment starting big isn't always the best idea but investing amount which you can afford to lose that won't affect you is probably the best way to go about it because that way your investment survive any emergency as you will also have other funds to tackle real life problem and not be tempted to touch your investment funds.

I have a friend who have to sell off a very big portion of his Bitcoin in this period just to fulfill his fantasy of actually securing four legs for his wedding plan of which I taught of advising not to as this is a very dire period as the price movement of Bitcoin is just starting to look bullish but he insisted that selling the BTC was all part of his big and it made me wonder why ? If only that he had the wrong investment plan and didn't save up elsewhere for his wedding plans and he is left with tempering with his precious Bitcoin just to make the activity possible.

This is for any long term investment - there is a need to have more than enough cashflow, so the invested amount is coming from extra money that is not needed..

Yet, on the other hand, as you mentioned, there are people who are using money that they need for future expenses, and they expect that the BTC price is going to go up, and so therefore, they can use that money that they are going to need in the future in order to buy bitcoin today at lower prices.

There is nothing wrong to do this (gambling) with small amounts of money, but there is also a need to have enough cashflow coming in to be able to pay for expenses.. and surely sometimes, someone might have a small portion of their investment (such as less than 10% or there might be various ways to measure how to put limits on oneself) that they put into a kind of bet that the price will go up and then they will have a plan to cash out at a certain price or within a certain timeframe that it taking chances, but maybe they are taking chances, but not so much chances that they are not able to cover their little gambling inclination.. yet part of the problem is getting carried away and doing too much.. which is not always clear about going too far until an emergency situation comes and there is a lack of preparation for the emergency situation because too many of the emergency funds were put at risk.

For someone who has a long-term investment plan in bitcoin, and doesn't have another side hustle that pays them daily or monthly will be the one to sell their bitcoin at a loss price because they need money to solve a problem. But for Someone who has a long-term investment plan in bitcoin and a side hustle that pays them, will not be forced to sell their bitcoin at a loss price, compared with the individual who doesn't have a job or side hustle.

It is appalling that some investors are no longer investing in bitcoin with the money they can't afford to lose. They are not investing money for their needs just because they heard of the bull run is coming and they forget to save up some for the rainy days when problems come 

Don't mean to say everything but I'm sure they must have sold a bit of their holdings and they did. But the most important thing is not to sell everything because that will make them frustrated when they see prices continue to rise.


So, for those who trade, of course they are not investors who implement long-term investments. And I have said before that they are daily profit seekers and they can do it several times every day.  they only focus on analyzing charts when it is time to buy and sell.
 

Of course 50/50 and I would not call this a form of gambling because if they are good at analyzing charts of course they are able to achieve a lot of profit because they can minimize losses with the patterns they have in buying and selling.

I really appreciate this piece of information, sir, @JayJuanGee. The funny thing is that I have severally use this picture as a public reference, not actually knowing that it is not very accurate. Now I have a more accurate chart. Thanks.

There is something wrong with the numbers in that chart.  It is like people make charts and they just guess

If it is merely referring to the BIG dips, then maybe we could look at the BIG dips like this:

2011   - From $32 to $2  = 93.75%   

2013a   - From $263 to $63  = 76%

2013b   - From $1,163 to $153  = 87%

2017   - From $19,666 to $3,124  = 84%  (this one looks right)

2020   - From July 2019 $13,880 to $3,850  = 72%  or alternatively  From February 2020 - $10,200 to $3,850  = 62%

2021   - From late 2021 $69,000 to $15,479  = 87.5% and probably the one they are referring to is from early 2021 $64.5k-ish to $28.8k-ish.  = 55%

But there have been various other BIG dips in the midst of those dips.  There were many that were greater than 25%.. Difficult to have confidence in a chart that is not very close to getting the numbers right when they are specifically pointing out numbers in their chart... .. 

As a new member who is very interested in bitcoin and want to know about bitcoin I think he should help all new members with various information about bitcoin. Many people want to know what I do, how I earn money or where I invest, but I don't tell everyone about my affairs. Among the people who try to learn about these things from me, I prefer those members who can learn how to invest on their own without worrying too much about what others have done. If I tell some people about my investment relationship they may cause me danger or at other times they may harm me so I will give maximum help to him who will only focus on his work and will be very curious to know.

I think if through me someone can get a good idea about bitcoin and investing and they can use that idea to invest in bitcoin and keep that investment for a long time then that is a big achievement for me. Maybe I will not take the share of his profit if he invests but when he invests for a long time and remembers me when he profits, there is my value.

A person made a profit by investing in Bitcoin and after hearing his profit we got encouraged to invest in Bitcoin but after investing in Bitcoin I saw some loss in the initial stage so we are completely wrong to think that we can never make a profit. Market is now showing loss on your investment, after few days you will see profit. Profits and losses are a very normal thing when investing. If an investor gets too excited due to either a small gain or a small loss, it is difficult for him to hold the investment. I don't think an investor investing in Bitcoin needs to check the market repeatedly or check his wallet. The more we check the wallet or watch the market after investing, the more difficult it is for us to hold the investment, the better way is to invest in Bitcoin and forget about our investment for a long time.

Today I have one thing to check for those who have sold their bitcoins instead of holding them. Those of you who regularly sell bitcoins will check your wallet to see how much the amount you transferred is now showing in btc. If you transfer 100 dollars during 25 thousand dollars then at this time that transfer will show like 170 to 180 dollars then your profit from selling bitcoin is loss. That is, those who sold only their own Bitcoins at that time realized that they had received relatively little local currency by selling a large amount of BTC. Not only has it happened in the past, but it will happen in the future as well, maybe even without investing in Bitcoin. We will sell and in future we will see that we were stupid so it is better to practice investing now rather than being stupid. If you have the habit of investing, the profit will be yours.

You are absolutely right sir, @JayJuanGee, although I have had several teachings, learn people's idea, and principles that make me so optimistic about Bitcoin and jealously protect my portfolio as I continually add more fractions of Bitcoin to it. When I see a very big dip In the market that has dropped my investment value so badly, I go over to look at the six major price crashes of Bitcoin. In the image below, you can see it, and as a Bitcoin maximalist, you are more aware of what I am trying to say. I assure myself with the formal price crash because I know that even if it drops by -80%, it will surely bounce back.

I am not sure if it gives joy in and of itself, but it seems to give options - ways to store value and to potentially be able to spend value in a way that no one can stop me (or any other BTC HODLer) from being able to send it to anyone else, and surely there still needs to be ways in which we are able to communicate, whether it is face to face, and you show me a barcode and I can just send it or receive it... but also there can be places around the world or even sending to yourself from point A to point B.

Of course, there are times in which BTC's price is fluctuating a lot, including several periods in which it dropped in price by more than 50%, and even in the ballpark of 70% to 80%, but we can still zoom out and see that the increase in value (price) has been continuously in the upwards direction, even if we have several extended periods in which it had been dropping in price or not really going up in price.

There is no real reason to believe that bitcoin is not going to continue to increase in both value and price, even though it is not guaranteed to do so... there is plenty of evidence that shows that several aspects of bitcoin's fundamentals have strong foundations... --even if we are looking at the various network effects of bitcoin's ongoing adoption (as outlined by Trace Mayer)  .. which surely are building from sound money principles and solid technical aspects and in-place free-market incentives to reinforce the sound money fundamentals.


These can be tough decisions to try to figure out various alternative means to deal with tougher times, and sometimes it can take a bit of time to dig ourselves out of a hole or even to get ourselves back to a position in which we have our emergency fund in place and it is sufficient and we can continue to build our BTC holdings at the same time as we might be buttressing other aspects of our lives... whether it is relationships, work matters, housing, food and health.

It is based on your mindset that made you to start your bitcoin journey and the love you have for bitcoin as an investment that is worth hodli for a long term. Some people are into bitcoin investment to sell and take profit, while some long term hodlers believes in bitcoin as an investment that is worth having till old age, just the way people that have gold as an investment prefer to keep it till old age as long as they don't depend on it to survive. 

I guess that is why people like JJG who are among the early investors in bitcoin has the same feelings because holding bitcoin as his investment gives him joy. But most bitcoin investors are only after profit taking and not loving it as an investment. I ran into some financial challenge recently and I need to take care of it, I almost sold some fraction of my bitcoin because my emergency funds is not able to handle it, I sat down and thought over it and I never liked the idea of selling because I feel that I have not reached 50% of my bitcoin target.

What I did after much thought was to go to my Boss and get a salary advance which I used to solve that emergency and I got a big relief and happiness that I didn't sell a dime from my bitcoin, even though I was on profit.