Topic: Buy the DIP, and HODL! - page 394. (Read 108351 times)

First of all bitcoin does not have gas fees.  That is a shitcoin (probably ethereum) term.   Nonetheless, there usually would be some kind of a transaction fee in order to move the coins, but usually individuals will not sell BTC at spot price - so there can be some variance depending on how you know the person and perhaps the extent to which there is competition and maybe Bitcoin's price dynamics at the time of the transaction.  Transaction fees are not necessarily going to be very high when doing a private transaction, but the person who is selling might choose to have anywhere between 2% and 20% fees.. again depending.

Fees will tend to be lower when going through exchanges but fees vary and the level of KYC requirements vary too. .just like those kinds of matters might vary in regards to bitcoin ATMs or other possible ways of transacting.  There is not necessarily a best way, because someone might be trying to optimize for low fees and someone else might be trying to optimize for privacy, and there could be some other considerations too. involving if there might be either security risk or even risks of having coins frozen (locked-up) through exchanges.

Yeah that's true, in most cases they tend to charge more higher because in every transactions there is always a gas fee so the seller will always make sure the buyers covers for the fees, perhaps even if the seller agrees to sell to him with any amount provided he pays for the gas fees the buyer will still lose because by the time some percent of gas fees will be deducted from each buys his accumulation targets will completely change, the best way is to buy from an exchange were as he could buy any amount he desires with a risk free instead of buying from someone which perhaps may have other criteria or minimum transaction amount before transacting.

You don't even need to talk specifically about yourself Dewi Aries... you can suggest the hypothetical parameters.. so if someone is feeling that s/he is paying too many fees to buy BTC every single week because he ONLY has $10 per week on average, then there could be questions about whether it is wise to let those amounts build up.. so sometimes people can buy every single week, but then just let the amount build up to several hundred dollars before they move it from an exchange to a private wallet. 

Sure, it could be a little problematic if you are buying directly from a person, and sometimes, they might have a minimum that is several hundred dollars before they will even transact with you because they do not want to be having to interact with you with small transactions, so maybe in those cases you would have to wait several weeks or even several months before the amount of money that you have is high enough to meet their minimum transaction threshold.

I have asked before, those who often say they buy in stages throughout the year, can I see a more efficient description of the strategy they use, do they only buy with an accumulation of $10 per week or accumulate every quarter. A good strategy is to buy at every dip that occurs consistently rather than buying $10 at every stage, because you have to pay petrol costs which are considered inappropriate at every stage they do. Well, I agree with you JJG, a fairly accurate description of the topic is to buy and hold and forget about trading because it can have a bad effect on the sustainability of the investment being made. True holders are those who do not see a sell button in a component they have planned. Depending on their strategy, the most important thing is to buy and continue to hold.

Maybe you should give an example from yourself? 

You have been a member of the forum since 2015, so perhaps you could have started out with one strategy and then changed to another and then changed to another. 

I hate to tell too much about myself because I have told about myself so many times that I am sure that members get worn out from hearing my story.

So go ahead Furious 7 - or anyone else.. tell us how you might have started out your BTC accumulation strategy and then how you might have changed it from time to time in order to try to make it better.  And another thing, I don't really think that we want to hear about trading, but more in lines with how you might have engaged in some kind of an accumulation strategy, and sure many members do get distracted into trading and distracted into shitcoins and then they realize that they should have had employed and maintained a more consistent and ongoing buying strategy, whether it was DCA or buying BTC on dips or some combination of those two.

But in this case we also need to discuss about some methods or strategies that are done. I don't really have a problem with discussions like this it's just that when talking about investing then I will be firm that bitcoin is something that is very feasible for me but when talking about the strategies carried out I have never considered myself perfect in investing so that with discussions like this we can know what we can adopt from others by looking at the shortcomings that we did before.
I think about the strategies and methods used for investment still have to be upgraded because even though being in bitcoin is something very good but if the way we do it is wrong then the results will definitely be less than optimal.

You are making a lot of the same points as me, but I am suggesting that if you feel compelled to sell some, then to sell the lower amounts at various increments and never all at once and even to be in a position that you are never selling more than your profits (so you are not selling principle), even if we have a lot of confidence that the top of the cycle might have been met, so surely I don't even recommend selling as much as I mentioned but I am trying to provide some kind of a compromise possibility that others might consider rather than selling 100% of their stash, and from my perspective, you surely are going quite high.. because you are thinking that the odds are going to be with you to be able to buy back more BTC with the proceeds of your sale... which surely is getting us further and further from the topic of this thread when you start to think about selling as an accumulation strategy rather than mere a kind of insurance or just a BTC portfolio maintenance strategy.

That's what I feel now but not in the past because back then I was still always focussing on price which if you think about it rationally now I'm actually like a lost person with the way I was running before.
But the mistake I made back then was actually very good because if I didn't do that and didn't realise that what I was doing was wrong then I probably would have continued to look at price as a benchmark until now and this has definitely been a good experience for myself.

Actually, I think for some problems that occur and some mistakes are something natural, especially when we are in different conditions like when we started doing DCA. Making some mistakes is a natural thing but if we really want to be better then whether we are able to admit and correct the mistakes that have been made or not because in the end it is also a good experience for ourselves. as long as we do not dare to admit that we have been wrong then forever we will be trapped in standard thinking which in the end makes everything we do always considered right even though it is proven wrong.

He should carefully read your previous post and he should not be hypothetical with the accumulated annual profits from bitcoin investments, although they argue that bitcoin assets are for investment purposes but many investors have placed orders at the point of $100k to sell 10-20% of bitcoin assets , but if I have 2 bitcoins. I will plan a different strategy to sell 50-70% at $100k price point and start DCA strategy again when the price corrects below 85k, but the feasibility of the strategy depends on market review because when the market is bullish maybe the price can exceed +110k and we just need to review the prediction of the highest price that is likely to be reached and at that time we will use this strategy for the purpose of increasing the value of bitcoin investment by buying bitcoin during market corrections.

You are taking this to a whole different place when you change the example from yearly to monthly.  I was referring to an annual salary that increased from $10k to $30k over 7 years in order to allow for my point to be made through such hypothetical regarding how such BTC accumulation might affect a person if the BTC price were to go shooting up and maybe certain points in which some BTC might be shaved off at various price points along the way in order to not necessarily devolve into all or nothing thinking when it comes to BTC portfolio management - which from my perspective starts to seem more like gambling rather than investing, when guys seem to be considering price points in which they are selling all or even a vast majority of their BTC holdings..


Again.. your hypothetical seems to be misreading what I had said, even though I don't really disagree with some of your points, but the numbers that I had been trying to use don't work anymore if you are changing that $30k from annually and into monthly.

You are correct, and I believe that a DCA method for an investment is not guaranteed. That is, every investor will use the DCA method to accumulate coins with their small amount of cash. Some investors are using the other methods, using High-Frequency Trading (HFT) but the DCA method is one of the best methods to use interns for accumulating and long holdings and it's profitable for investors who already know what they are doing.

For people who think that the DCA method is safe for them when they use borrowed money to invest, it is not safe and can lead to harassment. The DCA is just a way to accumulate a small amount of money you can, either weekly or monthly, and if Bitcoin drops you still accumulate, hoping maybe one day you can accumulate up to 1 btc or more.

For an average person, it is safer for him to invest only a small amount of money from their salary and save the rest after every expense so as to be used for an emergency. Investing every part of one's salary is not a good idea because if any emergency arrives, the sell button is not a distant drive to reach before clicking.

Everyone lives the perfect time to buy bitcoins, no matter how they invest their money. But there are many discussions based on which people are attracted to their investments, most of us invest when the price of Bitcoin falls. Also, when the price of Bitcoin continues to fall, many people advise against buying, which I think is a wrong decision for those people. A short-term investor should buy and hold when the price of Bitcoin falls, and sell when it rises. Moreover, when a person buys bitcoins for investment purposes, if his investment is long-term, he can definitely earn good income from it in the future. Moreover, when Bitcoin increases, many people are afraid to buy and there comes a time when it is not possible to buy Bitcoin when it goes to high levels. That's why investing in Bitcoins is the smartest thing to do right now, as there are plenty of times to buy them. Also, I would recommend buying more fractions when the price of Bitcoin falls, and holding on to the current position of the Bitcoin market. As our halving year is approaching, this opportunity should never be missed, and a bright future awaits for Bitcoin.

Perhaps you can Also get into a trouble while using DCA method, one of things we most understand is that DCA doesn't guarantee a completely safety and minimize risk but is totally depends on the psychology or mindset of the investors because DCA is only but a strategy while the method of the utility depends on the investors however DCA strategy only work when the investors obey the rules were accumulating with a small funds which you no cannot affect your financial state and at the same time having a back up funds.

Also a DCA strategy tend to fail in your investment plan were as you over invest thinking you are using DCA strategy or investing with a strategy of selling off your investment to attend for some needs that arise.

Personally I think a little knowledge in candlestick patterns would help in the long run if a trader or investor adopt DCA method in a buying low and accumulating Bitcoin from my own observation and knowledge whenever I look at my BTCUSD daily chart and observe an exhausted candlestick which initially intended to go up (Bullish) but reverses and trended bearishly leaving behind a long tail or wick meaning sellers had dominated the market that is green light for me to start a DCA approach of course having taken into consideration the high volatility of the price of Bitcoin which means price drop would be massive thus buying and accumulating bit by bit will be triggered, of course the unpredictable nature of the price needed to be considered when adopting DCA method because at times the dump might end abruptly and bullish market sentiment is triggered in another scenario the dumping might linger on.

Definitely, we're not advising people to lose money but even we don't advise that. The reality is happening that many sells at low and buys at high because of them being impatient.

You have to think of any valid reason why you should sell and you need to convince yourself that you have to sell and there's no regret in the future.

Because it's gonna be a huge mistake if you'll keep looking back in the past being like that because of how you've done it even if you've made a profit out of it.

You are absolutely correct, it is good to make a point, but I would like to ask investors who sell their coins for no reason what is the essence of selling the coins when they know they still buy letters. Is it not better to leave the coins and to save the stress of selling and buying decisions again? I think sometimes they even run at a loss for making such a decision, that's why it is good to have a separate funds so we can not be selling our hodings when ever we like.

From a $10k salary per month, if the investor invests $2k per month for 3 years, it is a total of $72k. For now, about 2 points something BTC, the investor might decide to sell some specific amount that he can use for important something like starting another investment because that is also a good idea.
When a salary increases to $30k, the investor can decide to increase his investment to a good amount like $5k or above, so he can have multiple folds for the 4 years and investing $5k for 4 years will give you a good amount of BTC at the end.

If we continue to invest as per the DCA strategy then we will not face any problem. Because DCA techniques must be known. Bitcoin is known to everyone because of its popularity through volatility and the use of DCA strategy is only appropriate in such situations. Because in this current situation DCA strategy does not show any risk of Bitcoin profit but it reduces the risk of investing in Bitcoin and makes it easier for the investor to invest for long term. So ultimately the number of long-term investments in Bitcoin is only waiting for DC and strategy followers.

I feel as if I am repeating myself, and I know that we are not talking about selling in this thread, but sometimes there seems to be some need to make a point, which you keep talking about selling all your bitcoin which  and then you talk about holding after that which largely seems to mean that you would sell and then try to buy back later.

Let's say that a hypothetical person got into BTC in early 2016, and such person had a salary that when from $10k to $30k in the past 7 years, so if such person had not made too many other investments, maybe such person had made some mistakes along the way, but maybe ended up accumulating 2 bitcoin.... so it could be possible that such person never sells all of his/her bitcoin but instead maybe shaves off 10% of his/her then holdings at various points in time.. at $100k, at $150k, at $250k.. .. so even if there might be questions of BTC price direction, the amount of BTC that is sold is less than the profits that had been made in the integers.. and surely you could look at 2 BTC and you could say that from $30k to $100k the profits had gone up $70k per coin, so a total of $140k for that price move, so if there is a decision to sell 50% or less than the profits, you will never run out of bitcoin and you will still be able to skim off pretty decent profits to either be able to buy back if the BTC price goes down or just use such value for consumption purposes.. .

yet, I still would suggest that if you are still in accumulation stages, then it is problematic to be selling too many BTC on the way up and expecting to be able to buy back lower.. but if you think you got it all figured out regarding when to sell and when to buy back that is up to you.. and I think that I probably have already deviated enough from the topic in terms of talking about selling ideas, since this thread is not about it and I still think that conservative selling on the way up if any is still somewhat potentially somewhat still aligned with ideas and accumulation focused theme of this thread.

I see people setting a sell goal of $100k for the next bull season, but I have a higher target because I believe the upcoming bull season will be a super cycle. Furthermore, I will only sell when the price reaches the target, I will not rush and excitedly sell the majority of my bitcoin just because it surpassed $69k, which was the old ATH. It may be high compared to many, but I believe bitcoin will be able to reach $150k-180k in the upcoming bull run and that is when I will sell my bitcoin.

In case bitcoin fails to achieve that target, I will continue to be a long-term holder for next season. That's why I decided to choose DCA monthly and not worry too much about the price in the short term.

All the things we think are easy sometimes don't match our expectations, which is if you sell all your BTC holdings to make a profit in the near future it could be that you are making the worst decision. Because if the price falls back to the first entry level it could be that we  can accumulate more BTC because it is supported by the profits we get. But if the price of BTC continues to rise then you have to wait longer, which is even worse to imagine. This means that it is better to continue holding in the long term rather than selling at a fairly small level of profit. Even though it is contrary to what was discussed, of course it is an option based on their respective positions. I think there is always quite a high level of depression that occurs in us if after we sell, the price of Bitcoin continues to rise, even reaching 10% that day. (of course that is a regret that you will remember in the next few days/or months). On the other hand, it is better to buy at dips and hold in the long term for the next 1 year. That is more realistic in all the planning you make in the investments you have made.