Topic: Buy the DIP, and HODL! - page 40. (Read 121766 times)

Dollar Cost Averaging method is a recommended investment strategy, through which the method to invest is to be ready to buy immediately without waiting for the upward and downward trends of the market, i.e. be ready to buy Bitcoin in any market situation. Depending on your income stream on a weekly or monthly basis, instead of investing huge sums, you can comfortably invest as much money as you can afford. Before investing financial management is necessary to help you continue investing without fear of regret.
Yes the DCA strategy is very simple even investing in this method does not require a lot of experience about Bitcoin if the person has a certain source of income to invest, proper planning, goals and his market analysis skills. It is important for any investor at the initial stage to have a little knowledge of market analysis.

We can observe these to invest in DCA method;
1. Gain a little experience with Bitcoin before investing.
2. Fixed source of income i.e. ensuring financial management.
3. Being ready to buy immediately (in any market situation)
4. Creating a mindset to hold investments for the long term with patience.

Simply put, DCA is an investment strategy by investing some money routinely without having to consider market conditions in detail, the investor focus will be on periodic purchases of the same amount without looking at the price. So, instead of investing a large amount at once, DCA allows investors to invest part of their funds in Bitcoin regularly over a period of time without requiring much consideration. This strategy is also very easy to do because it does not require a lot of market analysis, investors only need to determine the goals, targets and investment period.

Bitcoin is a volatile asset and so there's no guarantee that you will get 2x or above that amount from your investment at the end of the year. Realistically, thier might be years when we are not all that profitable with our investment and Bitcoin might remain at a certain range of price for a long time during some years before we tend to see anything close to 2×, 3× or so as you may have it.

That's basically the whole essence of long term investment and the application of the DCA methord in doing so because while you're investing for the long term, even when you don't see yourself in a good profit at certain time, you just take it as an opportunity of buying more Bitcoin and to continue doing your DCA till you reach your accumilation goal.

The experiences you get to encounter throughout your accumilation journey helps build you to become a better investor that's not just relying on investing and seeing profit too soon like some short term traders do. DCAing for the long term helps you to witness the bull, the bear, effect of government regulations on Bitcoin and also to witness times when you're tempted to sell because you're in profit or because others are selling and you have to deal with your emotion and keep on buying your Bitcoin.

I would like to add to your points that once they start investing in Bitcoin using the DCA strategy, they hold the investment for a long time and see huge benefits. Not only that, the process of investing using this DCA strategy is usually one of the methods of holding Bitcoin.

 If you notice, everyone will understand about this investment, because if you invest $100 every week, you can hold $400 worth of Bitcoins in a month. And that's $4800 a year you can invest, and this DCA strategy saves on the purchase price, so if you invest this bitcoin you'll get 1 x 2x growth at the end of the year. Because the price of Bitcoin is upward the more you invest the more you can see here and if you can hold your investment for a long time then you will accumulate the maximum amount of Bitcoins and you can be marked as a successful investor.

When a person is managing investments through DCA method, he should be given full freedom to decide whether to do weekly DCA or monthly DCA if he does not seek advice. He can take decisions based on his ability. If he is monthly salaried then he can choose monthly DCA or if he is weekly salaried then he can choose weekly DCA. Again he can decide the time of purchase depending on his decision ignoring the time of salary. He can manage his investment depending on his personal opinion keeping in mind the characteristics of DCA in investment. I urge you to give him full freedom as to how often he buys. But if one plans to make frequent purchases, he should be advised, as frequent purchases will increase the amount of fees. Although I use and love DCA monthly, a person should not buy more than 4 times a month. It is better to buy at most 4 times a month or less. Here you can take decision independently.

All your narratives seems to be directly describing the importance of an effective financial planning and allocation which prioritize or emphasize much on the vital roles and importance of an emergency and reserve funds with their unique functionalities towards achieving a smooth running investment. By definition, it is expected that one should work towards building an emergency fund somewhere between 3 to 6 months of their living expenses, it serves as a save heaven, an investment cushion and safety net for an unforseen contingency or unplanned expenses as not to disrupt investment plans  when an unplanned expenses arises.

Surely the DCA strategy really has brought hope to investors that doesn't have much to buy in a larger quantity at once by allowing them to invest with an amount that they can be comfortable with, whether weekly or monthly based on the income flow, of which consistency is the lead way as it can takes plenty drops of water to make an ocean.

There is always a need for money in people's life, so even if you invest for the purpose of long-term investment plan, many times it is seen that due to excess financial needs, you have to sell investments to meet your financial needs despite your own will. This is almost the case with most investors. Since we need money at any time, we need to make some changes in our investment strategy by thinking about our investments and considering our financial needs.  

For example, instead of investing all of your remaining money, the remaining money should be divided into two parts, one part should be kept in a savings account and the other part should be invested. If the investor adopts this strategy in the case of investment, it will be seen that when his financial needs appear, he can withdraw money from his savings account and spend that money on his needs, but he will not need to sell the investment. Many may question that the amount of money that is left at the end of the month is not much, how will he save money from that limited amount of money and maintain the consistency of investment. If anyone is thinking like this then I would tell you to divide your minimum amount of money left over after spending it into two parts. Because there is no obligation to invest in DCA investment strategy that requires you to commit huge amounts of money.  

Invest according to your ability and try to maintain the consistency of your investment for a long time, then you will see that the amount of money that you think is minimal amount of money becomes a huge amount at the end of time.

What is the worry of transaction fees because it will not change anything in the view of DCA because looking at the current situation we can even see that even though the transaction fees after halving there were some uncontrollable moments but in the end now the transaction fees are back to normal and even look very comfortable to use anything.

Things like this will not be a reason for someone not to do DCA because after all, many of the excuses used are only one of the reasons for those who are not serious about investing so they look for their own reasons not to do it such as transaction fees that are too expensive or the classic reason where they say the price of bitcoin is too high and it's too late to be in it.

Whereas if they are serious about doing it regardless of the price when the goal is for the long term then everything will look as planned especially since the current btc progress is still very good and the future prospects still look bright. although we cannot know the future but of course reflecting on the historic past then there is nothing wrong with staying in btc to support the future.

Of course, we believe more in the long-term potential of Bitcoin than other Shitcoins. The DCA method is superior to many other strategies, that's why here we recommend this method more especially for Investors who are just starting to invest in Bitcoin. The convenience offered by DCA is unlimited, anyone can use this method without having to consider how much capital they have and it does not require a certain amount of time. In addition, it can help investors control their emotions and avoid impulsive decisions that can be detrimental.
By investing small amounts of money at regular intervals, investors will avoid decisions driven by greed or fear, such as buying when prices are rising or selling when prices are falling.

That is exactly what the DCA strategy you have been hearing is all about, there is still need to divide the money especially if you are investing through the DCA strategy. There are 4 weeks in a month, and if the investor divide the money and invest it on weekly basis, he is doing that because he wants to buy at the different market trends of the month. The market won't be stable all 4 weeks of the month and he wants to make sure that he takes advantage of all different markets trends that will occur during the month, that's why the investor has to divide the money and invest it weekly. Unless the investor is not utilizing the DCA strategy to make his investment, that's when he won't need to divide the money and invest weekly. But so long as he is utilizing the DCA strategy to invest weekly, there is every need to divide the money.

This is very wrong and it is misleading. People who receive their wages on monthly basis can invest on weekly basis and there is nothing wrong with that. Even people who receive their money on weekly basis can also decide to invest on monthly basis too. There is no law anywhere that said only people who receive salary weekly  should invest on bitcoin weekly.

 
That is why you should have your emergency funds and reserve funds in place before thinking of investing in bitcoin. When these funds are properly in place before you invest, you won't tamper with the money you've kept aside for your weekly investment.

It all depends on the ability when we are ready to do it weekly then it will certainly be very worth it to do but in some cases, especially for those who invest with the income funds that are owned from the salary every month then I don't think it's too imposing also when they don't make efforts to buy weekly and divert to monthly it is also still very worth it.

But when talking about the context of beginners in this case, sometimes the enthusiasm is still very big to try to collect bitcoin as much as they can so that per week it will not be a problem for them because after all they are excited to do it so they don't think too much the most important thing is to buy. This condition is normal especially since we must have felt the same thing where we never thought several times about buying when we were beginners so this kind of enthusiasm is quite good even though in some cases the intensity of purchases has decreased slightly for several reasons, especially as an evaluation but I think when we become a beginner, the excitement and enthusiasm in purchasing is very large indeed.

After reading more replies in this thread I realized that the discussion here goes beyond just buying Bitcoin, and the main accumulation method is DCA. Thanks for your clarification and patience in explaining, it's a pity that not everyone can treat newcomers in this thread so well. Well, as far as I understand, the DCA method has an interesting aspect regarding the fact that if you buy Bitcoin every month, then all such investors will still have different results, because there are thirty days in a month and, for example, two HODLers will have different results due to prices.

I was also thinking that when you have many small UTXO that consolidation is good when TX fees get low, but I have come to realize that consolidation of transaction will only be helpful to those investors who are being paid in bitcoin direct to their private wallet.

A new investor who is using DCA to purchase small unit of bitcoin weekly will not be able to consolidate his UTXO because if he is buying fro an exchange which will be very discouraging for him to send immediately after buying when TX fees are high and that is why whoever is buying weekly from an exchange just need to relax for a while but keep on buying regularly and keeping it in an exchange till transaction fees are low again before he can send it to his private wallet.

Well, it's  quite true  and just like i said there's isn't anything actually wrong in buying monthly so far the input is consistent just that I also prefer the weekly compared to the monthly besides I'm also in my accumulation stage and the weekly buying method could improve the efficiency of price entry (though not always but most times it proves it worth) and about the fee I think that could also be put into consideration  but taking 4 inputs/per month shouldn't be to much to pull when the need for consolidation arises... though if compared to single input/address its quite preferrable over 4inputs/month but still there will still be  a need to consolidate  so I think the fee difference shouldn't be too much so far the inputs isn't much.
Noted!

Yeah, that's very simple. Do not proceed with the transaction if the fee is higher than the amount you'll send or when it's simply quite expensive.
I won't do it if that's the case but when I've got more funds to be sent and the fees are tolerable, I'd simply continue on that skip on thinking that the fees are expensive.
This happens when we need to withdraw and to sell for some important things that we need to deal with in our real lives. The fluctuation of the fees are there too, so being patient is also worth it if it's about the fees.

I think you are quite right, Transaction fees are not something that someone should take into account when they have implemented DCA. One reason I like DCA because we are consistent in routinely buying Bitcoin, regarding expensive withdrawal fees, of course there is an option to withdraw it once a month from the Exchange used.

DCA practice is very easy, only people find reasons for all ideas because they are inconsistent. If it has exceeded the 50th purchase, I think investors will not turn to other strategies. In the initial process, it is indeed very difficult, but if it is focused properly, our approach to Bitcoin cannot be separated anymore.

We are increasingly confident to continue buying even though the price is going up because the main principle of course to have Bitcoin is not in terms of its price. While there is time and while you still have a permanent job and while you have passive income, use the money to invest because at some point we don't know what will happen, but with our steps to invest in bitcoin, we have better savings that can be used someday or when we have reached retirement age.

I tend to try to project my cashflow 12-20 months into the future, yet of course, the months that are closer are going to be more important to make sure that they are in order, yet sometimes we might be able to see cashflow crunch periods that go out into the future, and more so if we might have various kinds of debt obligations or we might employ debt in our financial strategies (cashflow management) or even if we have family type cost that come up down the road or even business type costs that might go quite a ways out into the future.

What is being discussed here is beyond more than just buying dip. You can choose to learn new things here and get ideas that will benefit you in your investment. The choice is all yours whether you choose to wait for the dip or not. However, the thread did not focus on waiting for the dip because it is a bad idea. You can buy the dip even when you using DCA or any of your preferred strategies to invest. If you have been in this thread for quite some time. You will notice that many do emphasize not waiting for the dip before you start investing because if you do so you may never see the dip for you to buy and that will leave you no choice but to procrastinate in starting your investment.

You may be thinking that buying Bitcoin now is too costly for you and you could buy it lower. But there is something you should know about the market. The price now can be considered to be a dip in weeks from now, months, or years. And you start regretting that you could've bought now when you can. All Bitcoin prices in the past, all of them are not considered to be a fair price for buying so it is now. The best time to start buying Bitcoin is now as long as you can afford some fractions and gradually you will see what you will have in a a year or two. And that is the purpose of this thread. Bitcoin has gone through these prices, $100, 10k, 20k, 30k, 40k, 50k, and so on. All of those prices were considered so high then while people were buying without looking at the price some like you waited for the price to go down more. Now look at it it's better than what it was then. The same thing is possible to happen. So either you start investing now or you live to regret it later. It's your choice to make, dont be forced.

Primarily focus should be on buying and holding Bitcoin and it is better if it is DCA. These are general discussions and important for investment. But we have to adopt different strategies to invest and retain. I think we should talk about how we should be able to buy advisedly and how to hold the investment for a long time. Although these are old words, they are the first thing a new investor should know.

For investing, we should focus on buying first. One thing to note, you must have a reliable source of income. A source of income from which you can meet your full needs and earn a living, a source of income that has security you can call a reliable source of income. Or you may have an alternative source of income for investment. You can consider sources of income outside of the value income source as an alternative income source for investing. Having a reliable source of income/alternative source of income is a prerequisite to start investing. Then decide on the method by which you will manage the investment. Of course here you can decide the investment method independently. My preference and advice would be to adopt the DCA method.

After starting the investment we should focus on prolonging the investment. Remember there are two types of investments. Short term and long term. We compare short term investment with trading, everyone will discourage you if you are interested in short term investment. Because short-term investments have a higher risk of losing money. Long term investment has very low probability of loss and high probability of success. You will use your excess money to prolong the investment. Never invest with money you need, invest with money you are prepared to lose. Choose an amount for investment that will not affect your quality of life and keep a reserve fund which should be around 2x the investment fund. This reserve fund will be reserved for emergencies in your life. There are several other methods to successfully lengthen investments. Of course your investment should be 4 years-12 years or more.

And my question is, what do you do when you get to your f*ck you status? Isn't it to sell a fraction?. Because after reading what terrific (the first reply) had to say, it wasn't different from what you are saying. From what I understood, terrific is saying that, for you to be able to sell certain fractions during a bull run, you must have accumulated alot, and I believe accumulating to a reasonable amount (f*ck you status) does not just take 1-2 years for someone who is using DCA. But I feel that terrific should have probably constructed the statement in such a way that it won't sound as if he is planning on selling some fractions on occasional bull run events. Or assuming I actually understood wrongly, and terrific was actually supporting the idea of selling some fractions in a bull run, then that's is not a good practice from my opinion, though I feel he isn't doing that.


Though, it is important to show some concerns for the blockchain and high tx fees, but I don't really have that time to start observing the mempool to know if there is a high tx fee or not. In most cases when the tx is taking longer than it should, I will just use the bump fee option.