Topic: Buy the DIP, and HODL! - page 400. (Read 137374 times)

While you may be right it's important to also know that the emergency funds and cash reserve can be built along the way , I think its better you start with a minimal amount like 10- 25$ for DCA then instead of been aggressive I would then advice you build up your emergency funds and start putting things in place, then when your emergency funds has been built to a certain level you would feel more secure about, you can now start using some other strategies that can put you in front of your game like lump sums and dip buys. And it's also good to know your numbers first before setting your DCA  plan so you don't put yourself on pressure. What I mean by this is getting to know your income and expenses calculated out, so you could either reduce your expense to DCA  and use the rest to build your emergency funds or what's left after your expenses. While one can never really know this numbers fully,  I think only you can do this part yourself. But start right away with DCA  you don't really have time to have everything in place before you begin your journey.

Not everyone who is accumulating bitcoin with the DCA strategy has the same financial power to save a reserved fund after saving the fund that will take care of their financial needs. So I agree with Odohu that someone used his bitcoin DCA fund to buy something else because there will be a situation where you will find yourself handling a project and your emergency fund will not be enough to finish up the project, and there is nowhere you can get money in the short term. You will have no choice but to skip buying bitcoin for some weeks so that you will be able to finish up the project.

IMO funding your emergency fund should come first. We should only invest once we have saved enough money for emergencies to cover future expenses for at least six months or a year. If you lose your job or the price of bitcoin goes down after you have invested, you won't have anything left with you. However, there might be adjustments to plans along the way. if you see any opportunity that you are certain will give you enough money if you invest in it, then it is worth taking the risk.

I guess most time on Tuesday market do undergo some certain corrections.  So setting your regular DCA at that ain't bad.
Raking method or strategies is actually nice. That would really help in accumulating profit in short period of time with minimize risk compare to that of leverage trading. Yah I don't think I would classify that as trading but in order to exercise raking you need to have accumulate alot of BTC that when you be able to gain profitably well. The profits would varies but when the coin is rising you would also accumulate good profit too. And that would good if you planning to withdraw from your investment you could withdraw the profits you made from the raking theory.

The back up plans you are refereeing to literally means emergency funds. Although i wouldn't prefer stacking emergency funds before thinking of starting an investment. To me it is better to do both simultaneously so as not to miss out on good opportunities to jump in the market. Imagine seeing Bitcoin so cheap that you can afford if you lump sum this week, do you rather prefer to keep your money fund this year and then use the next year money to buy when by then the price would have gone back up?

@Jayjuangee and everyone which do you prefer should be priority?

1. Building your emergency fund first before investing

2. Start investing immediately and leave emergency fund for later

3. Do both of them simultaneously

You could also have a DCA practice in which you buy a certain amount of BTC every time that you receive money into your bank account or cash in your hand (such as 25% automatically goes to BTC buying).... so it could be irregular in terms of the amount that you end up buying because sometimes you might get paid $100 or $25 and other times you might get $2,500...

but the mere fact that you authorize yourself to DCA 25% from any of you incoming cashflow whenever it comes in, that does not mean that you have to make the purchase right away, you could try to time the dip whether that is weekly or monthly or whatever time frame that you set for yourself.  If you identified that Tuesdays at 3am were the best time to buy, then you might be onto something.

I do believe that sometimes patterns will emerge, but bitcoin is becoming more and more mature, at least in terms of the arbitragers, so there are likely folks who are identifying those kinds of discrepancies and trying to take advantage of them, which ends up causing the discrepancies to become less great.. even though likely identifying the pattern early gives you the greatest advantage, but it could end up devolving into NOT making much of a difference and not being very good use of your time... but hey, I am not going to completely poo poo the matter, because there can be really good feelings if you have $1k and you are able to to identify a few percentage difference, and then you end up getting an extra $30 of bitcoin for free.

I have told this story several times, but it may well be worth repeating even though it might seem like trading, but I consider it to be a kind of maintenance, since I had already reached my earlier maintenance stage in 2015, and in 2015, when I first started to employ my practice of selling on the way up and buying on the way down, I was using such small amounts of BTC just to practice that sometimes the profits were less than a dollar to sell and then to buy back, but they were still profits and accounted for fees and other expenses, and my friend would laugh and laugh and laugh at me to suggest that I was being so petty. 

I responded that I was merely building good habits and putting in place a system, which was the earlier stages of a kind of raking, like I describe here, and it made me feel good to be able to get $0.60 worth of bitcoin for free on my buy backs, and so as the BTC price went up, my authorization of the amount that I was authorized to sell from my stash went up, both in terms of how much BTC I was able to fold into the practice and in terms of the BTC price going up.

So, since the BTC price was around $250 at that time, now the BTC price is more than $25k, so only using the same amounts, the profits would have gone from $0.60 to $60 (100x higher)  but also if the amount of the authorization would have increased by several times too.. because when the BTC price was ONLY $250, I was ONLY authorized to use about 1/5 of the total size of my BTC holdings for the rakes that I was making (because that was the ONLY portion in profits), but if the amount of the authorized stash also went up 5x, then the $60 became 5x higher too, so the $0.60 turned into $300 worth of bitcoin for free for similar kinds of BTC price movements...so sometimes the building of good practices can end up adding up to greater amounts at stake, whether we are talking about raking ideas or buying on the dip.. .. and I am not even trying to talk about trading here.. even though it might seem like trades because I was not trying to guess the price, I was just putting systems in place in which I sold BTC in such low quantities with no expectation to buy back, but if the price did drop then I had systems in place to buy back and my amounts and my spreads were quite small in the beginning to test out the raking theory.. or to put the raking theory into practice.. so maybe raking with a buy back option (which I do not consider to be trading. but something that can be exercised after you have already built up your accumulation and perhaps even over accumulated within your definition of such).

depends on the strategies of the particular investor though. Imo before taking action in doing any investment always ensure to have a back up cash than to just go all in, you going all in. Have already given you the mindset that yah hope is on your investment and that can of investing are not normally for long time because you would be in eager in withdrawing  your investment.

That why DCA strategies is nice help you to buy different quantities of bitcoin mostly with cash you know you can actually leave for a long period of time. Then you don't have to bother thinking of withdrawing investment in an premature state. At that you be able to leave as an long-term investment. Not bad to withdraw some profit in your investment though but know that you are just withdrawing some quantity of it not

What do you mean by senses of cycles, I'm not really clear on this. Or do you mean when a person has become so used to a pattern that it becomes hard to change or adapt to new strategies?

Based on this I understand as a person continue to mature in his investment, he would continue to become more strategic around his allocations and strategies in bitcoin either to get more bitcoin(or reach a certain level of accumulation) or to make more profit from it. Like you've said before if a newbie is more concerned about profit on his first years of investing, it could either cause him not to hold much or even he might diviate from his DCA, since he has become more profit minded. But a more mature investor can be more profit minded cause he can now align his allocations and strategies in a way that would be to make more profit form his investment and the level they call fuck you status could also determine their approach to buying. So like we have agreed before our senerios and strategies might continue to change based on different factors and the one we know for now is individuals, I was also thinking don't you think things like market trend could affect how a more mature investor and newbie would approach the market and plan out their senerios, cause it would be hard for me to say that if all mature investors would consider a bearish market as worse case. An investor could also be in his 8-10 years range and still looking to get more bitcoin, so he might seem to be aggressive towards a bear market than a bull market an at this point he could have even reach his fuck you status as planned by him but just wishes to get more bitcoin.

This individual here shows a totally different characteristics from the once you have used from your other examples. In his case he feels satisfied with how his short term investment has been even tho he hasn't reached his desired level of accumulation in his portfolio. But if the bitcoin price corrects and maybe goes back to 2x, he might also begin his journey again or is it possible that to avoid cases like this we set a limit for ourselves to not allocate more than a certain amount in a month or weeks or at any intervals we chose.
Now this is major case of individual preference, another person might be fired up to invest more into bitcoin and even decide to increase his allocations from 25% to maybe 30% and decide to be a little more aggressive.

Many people dive into Bitcoin investment without really grasping how it works. Some end up selling their Bitcoin without holding onto it for long because they lack a proper understanding of Bitcoin investment. These individuals don't often have a plan to hold their Bitcoin for an extended period, thinking it's a quick way to make money.

When you lack understanding about Bitcoin investment, they wouldn't make good plans for their Bitcoin investment. This is why many newbies invest any amount they have with them, even if it's money they might need in the near future they don't always care. They like taking risks, and when they need the money, they go ahead and sell bitcoin and withdraw their money even at a loss when the price is down.

However, those who understand Bitcoin investment are more likely to have emergency savings, ensuring they don't need to sell their Bitcoin investments hastily. Having a good knowledge of Bitcoin helps in making informed decisions and holding onto investments for a longer period without succumbing to the temptation of quick gains or immediate financial needs.

There are several valid reasons why someone will withdrawal part of their investment (not all at one) from Bitcoin. I think before investing in Bitcoin, there should already be future plans in place and such plans should include when to withdraw some of your portfolio and the manner of withdrawal. This is because every wealth built, there should be a time to enjoy the wealth, at least small before passing it to the next generation. @JayJuanGee that have been with us in this thread with his valuable inputs and guidance have also understood the importance of withdrawing some of those assets, hence the reason for the creation of JJG Sustainable Bitcoin Withdrawal Strategy accessible through this website.

So selling part of your Bitcoin should not just be seen from the bad side, rather it should be seen as part of the process and the earlier one plans it all out the better. Personally I have adopted Bitcoin with the mindset that I will building during my active years so I will have something to fall back to when I'm retired. The good thing about the DCA method is that it enable me to enjoy my life as I should while still building and saving for the future without even knowing that I am saving.

No thats still not correct, my post is about potentially changing when a regular DCA buy executes. In DCA you set a buy at certain frequency and timing of your choosing. The timing could be automatic like 3am every Tuesday. Im wondering has anyone done an analysis as to the most advantageous times to set your regular DCA buy. Recently now that ETF's are in play there seems to be pattern emerging that post market close the BTC spot prices seems to be lower than the open. I dont even know why you would liken this to forex trading, has absolutley nothing to do with it. How is setting a time and frequency a deviation from DCA method, it just isn't its acutally the definition of DCA method to set a regular buy amount, time and frequency.

Please help me undestand how changing the time of on definitive dca buy is somehow linked to forex trading, I just dont understand.
 

It seems you misunderstood my points, no offense I was actually trying to explain your curiosity because you were a bit confused on when to use DCA, however from your question above you ask if it will be advisable setting your DCA after US market close, so perhaps you are actually getting the whole DCA narrative wrong because when you mentioned waiting for the US market to close before starting DCA, you are automatically deviating from DCA to forex trading because DCA has nothing to do with any US section but however it is only design for investors who are rich or poor to minimize there risk and also by having other back up planning incase there is any unforseen circumstances, so actually in as much as Bitcoin price is a determining factor but it doesn't affect DCA accumulation.

First... You should try to set yourself up in such a way that you are never tempted to tap into your investment.. yes emergencies happen all of the time, but they happen more often when you do not prepare yourself and they happen less often when you prepare.. and yeah, maybe you are in a kind of shitty situation in which you barely have enough to invest into anything, and maybe in those kinds of circumstances, you might not be ready to invest into bitcoin.

Surely, I try to suggest to everyone to get started investing in bitcoin right away, but people have to take responsibilities in terms of making sure that they are not over investing during periods in which their emergency fund is either underdeveloped or has been depleted, and these are judgement calls regarding how to deal with matters.. and whether still buying $10 of BTC is good for that week or maybe that $10 needs to be kept so that there is enough of a cushion in the finances... and yeah, if you have $500 in expenses every month, and you ONLY have $300 income, you are not in a very good position to be investing into anything, unless you happen to have some kind of reserve of more than 6 months that you could justify continuing to invest.. so if your reserve is more than $3k, then maybe you could invest some of that excess into bitcoin, and make sure you get your cashflow up to $500 per month or reduce your expenses so that you are taking from your discretionary/disposable income rather than dipping into your reserves.

Second..  there is nothing wrong with using some bitcoin in order to invest into other projects, but there still might need to be some weighings regarding if it might not be better to just keep the value into bitcoin and to grow bitcoin or to get money from somewhere else or to decide that you don't have enough money in order to invest into that other project.  It is not automatically going to  be a good money to draw from your bitcoin, even if there might be "supposed" "opportunities" coming available, because there are always going to be "opportunities" for people who have grown their wealth as compared with people who have not, but the mere presentation of an opportunity does not mean it is a good idea to draw from your bitcoin, even if bitcoin might be seeming to be at a price peek. 

Of course, the more that you get your bitcoin investment figured out, and the more BTC you accumulate, then there might be some justifications for you to take 10% or more from it, yet the more you take from your  bitcoin stash the more you have to consider the possible trade-offs that you are making when you do that and if you are still in BTC accumulation stage (or even fairly early BTC accumulation stages), then you might have to have a pretty decently strong plan to replace the BTC that you had taken within a reasonable or an expedited timeline.

Same with this one, did you read what i posted or did you just take it as an oppurtunity to rant about DCA method. Seriously the echo chamber in this thread has gone to the dogs

FFS did you actually read what I posted, i specifically asked a question about the TIMING of a dca buy, and should we consider changing the TIMING of the regular buy. Not sure why you went on a big rant about doing DCA, the pros and cons and all that.

I see nothing wrong with hybrid system because I feel it's a way of maximizing the buying process.  Those of us that started Building our Bitcoin asset just recently might find the hybrid system more appealing because of the need to get a sizeable portion before the price from the current regime. This does not mean stretching our finances but simply prioritising investment in BItcoin because of the realities on ground. So to effectively achieve this, the normal DCA can be running smoothly while one can do spot buying at dips depending on when there is surplus in cashflow.  I do this and it does not affect the DCA in any way.

The hybrid system does not mean buying the dips with the DCA funds, I think you are getting it wrong. The DCA will be running normally but additional funds will be used for buying the dips.

With what happened recently, or to be precise in the last two days, Bitcoin corrected to a price of $39k from a price of 48k at the beginning of this year. I concluded from what happened that I described in an initial purchase discussion for a beginner that they should not move aggressively if they were new to Bitcoin. If they bought at $48k with large funds or instantly of course the recent decline would have a bad impact on their mentality. So in this case I would suggest that beginners buy less aggressively in their initial purchase and over time they can increase their purchasing allocation to a greater extent compared to their first purchase.

Investing in the long term will not influence them to act stupidly when prices suddenly fall because they are not racing in a situation for the near future but for the next 10 years. But I still bought with the DCA strategy and accumulated regularly and was able to increase my fund allocation to a greater amount per purchase stage, so that was a better solution than buying more aggressively in the initial purchase.

The correction that is going on in Bitcoin price was as a result of the massive selling of Bitcoin after spot Bitcoin ETFs were approved by United States SEC, so the sellers outnumbered investors hence the demand and supply of Bitcoin was lower thereby causing a dip in the price of Bitcoin but however, the dip also stands as an added advantage for investors to buy the dip and hodl and by so doing the demand and supply of bitcoin would be high thereby it's gonna awoken the price to skyrocket again.


The only problem is that we have a lot of short term investors that are actually waiting for the price to skyrocket so that they can sell their coins but however, even if the price skyrockets and the sellers surpasses the investors then their might actually be a dip again so as a good investor, this is a time to acquire more Bitcoin in your portfolio and hodl till after the bull market. This correction however is necessary in other to sustain Bitcoin price movement because if Bitcoin continues to rise then so many Bitcoiners would rush to sell off their coins thereby the demand and supply of Bitcoin will minimize. As a bitcoiner, hodling for a long term should be the goal rather than expecting a rise and sell off. If Bitcoiners continue to sell their coins, am afraid the price might even go dipper unless we hold our coins and even accumulate more.

I won't suggest a hybrid strategy because it interferes with the DCA and if once we skip the investment period then it will become a habit and humans always get distracted I will say anyone who follows DCA is just preparing for a very long-term journey so they better keep investing the certain amount weekly or monthly no matter what the market condition is.

And if they are tempted too much by the DIP then they should buy from other source of capital not by skipping and accumulating their DCAing capital.

Crypto venture funds eye recovery in 2024, but capital remains tight
https://cointelegraph.com/news/venture-funds-eye-recovery-2024-capital-remains-tight

Most strong point is recovery  time, If you are talking about investment then I would say that there can be no better time than this, if the market starts going up then there is no possibility of going down, now a lucky time is passing for everyone, I think everyone should do as much as possible according to their ability. Buy Bitcoin and wait.

The portfolio is really important think but if you don't have Bitcoin then you can't build portfolio.