Topic: Buy the DIP, and HODL! - page 404. (Read 137310 times)

On the surface, that sounds dumb. It sounds as if you are gambling rather than investing.  It might work out, but on the face of it, such a plan sounds dumb.


Ok.  If you have a cashflow, and you have income versus expenses, then you would have some kind of idea how much your expenses are and how much your income is, right?  If after you account for your expenses, then you invest 100% into bitcoin, then that sounds like it could be possible to do, but how does anyone know for sure what all of his expenses are going to be between the time that you get paid. You have to have some kind of a float.  Otherwise if you are paid weekly every friday, then you would spend it all as soon as you are paid and you would not have any money between saturday and the next friday when you get paid again.

I think ultimately you already have some kind of a reserve or a float, and you are merely arguing about how much of a float or a reserve to keep.

Even if we go with an attempt at a more charitable and non-gambling interpretation of your cashflow situation, there could be some logic to build your BTC prior to building your reserve, even though you would still be gambling, but let's say that you have get paid $250 every week and you have $200 for your expenses, and so you decide to invest all of the remaining $50 into bitcoin (so that would be 20% of your income.  so maybe to some extent you would be considering your BTC holdings as your emergency fund... and so maybe that is all fine and dandy, but after a year of investing $50 per week (20% of your income), you have invested $2,600 into bitcoin (which is like 10x of your weekly income), and if BTC is still your emergency fund, and you still have not built an emergency fun, you are just asking for trouble... and maybe you get lucky and maybe you don't but seems a bit short-sighted to handle your finances in that kind of a way.. since all of your efforts to invest could end up blowing up on you due to your own lack of prudent risk management.


Good.. at least you are learning.  Usually it is best to have at least between 3-6 months of an emergency fund.. but of course, the greater the size of your BTC investment, the more likely that you would want to have a larger emergency fund to off-set any temptation to dip into your BTC investment... these kinds of risk management and cash versus investment balances are soley in the discretion of each of the investors.


Well 4-5 months of investing is not very long, and maybe you might need to just figure out what the right balance is so that you keep buying, especially during dips, and maybe after 3-4 years of investing you might be able to trace back the power of your having had continued to invest through the earlier years, and maybe in 3-4 years we might be going through another bear market, so maybe you might need to consider a cycle and a half of ongoing investing. and then see where you are at in 6 years or so.

Yeah it can be tough in the beginning, but probably you have to find a comfortable size, whether that is $100 per week, $10 per week or some other amount that is comfortable for you, your wife and your situation.

Regarding withdrawing every week, given the various recent fee spikes and the signal that we might have future fee problems, I personally don't consider that to be necessary or prudent to withdraw to a private wallet every week, unless your withdrawal amounts are at least $500 to $1k, and so personally I think that it is better to allow your UTXOs to at least reach a certain level prior to withdrawal.. and that is not merely about current fees, but it is also about future possible fee issues that could come about..


You could set up your buy the dip structure to have a lot of legs in the buying down, and surely it could take some time to build up those legs, especially if you were new to investing.

Let's say, for example, that you have been investing into bitcoin for a year and a half, and so your investment budget is $100 per week, and you had been buying half right away $50 and the other $50 you were saving for buying on dips.  So if the BTC price stays flat or it does not correct more than 8%, then you are not buying any extra BTC, but if there is an 8% or more correction, then you begin to buy additional $50 at 8%, 10%, 12%, 14%, 16%, etc etc etc... and sometimes you end up using some of your reserve funds and sometimes your reserve funds just continues to build up, so maybe between mid-October and mid-January, you had only a few occasions in which your buy on the dip funds were triggered, so you mostly had been building up your buying on the dip funds during that time.  so maybe recently, our dip got between 18% and 20%, so you might have had several buy on the dip orders execute, and maybe if the BTC price stays in high dip areas, your regular DCA might end up increasing to higher amounts than $50 per week because we are already in dip territory, and so you can structure those buying on the dips however you like in terms of how large are the buys, how many buys and what amount of price increments you want to have between your buy on the dip triggered price point.


Guys can also come to an investment such as BTC and consider that they are going to invest for 6 years, and then they will consider selling at around that time. 

They may or may not end up selling merely because they reached 6 years, because they could reassess the situation and figure out a better plan.  But you are correct, there could be a specific reason why they might choose to get in and out of BTC, which may or may not be a good idea if they  are still planning to live for a while and have needs for investments such as bitcoin that could serve as a hedge in regards to their other investments.

The person who invested into bitcoin for 6 years might even decide to consider beginning some kind of sustainable withdrawal rather than withdrawing immediately, as I describe in my sustainable withdrawal thread.   

That where those days I was new to this crypto space, didn't have much knowledge on how things work back then all I thought was that one's it's low you buy and sell when it's high unknowingly to me was just spot trading. It's actually course me alot of losses.
Have to take my time to understand how things work In this space and this forum had also help with that. Now I'm now using DCA strategies and I'm now the long-term investment type

What you were doing was trading, buy low and sell high. Sometimes you will make money but most times you will lose. Buying the dips for short term trading is not much different from gambling, like you already said, you will surely miss out sometimes and the losses will never depart from you.

Buying the dip for long term investment is not a bad way of Bitcoin accumulation, it is definitely a nice way of getting decent amount of Bitcoin at discount price. The problem I only see in buying the dip is that it could be very tempting to sell when the price finally goes higher and seems to have stalled even if it is just for some moment. The investors might face the temptation of wanting to sell in order for the price not to dump and return to below the major entry points. It will really be painful for the investors to buy the supposed dips, see good profits and still allow the price to go back below the entry point, this might lead to some form of regrets.

When an investor is ready to overcome these thoughts and drive that is associated with buying the dips, then it could turn out to be a very good approach to Bitcoin investment.

The irony with Bitcoin is that we don't know when we are at the bottom or when we are at the peak. Take example of yesterday, Bitcoin went down to 40k and we have speculations that price may go down to 36k but very next day we have price up at 41.5k. The point is we have to create a strategy about when to buy or sell. Everyone of us have to create that strategy our self as there is no standard way defined about when to buy and sell. What suits you may or may suit me.
If I talk about myself, I prefer more buying on dips then when price is up and I follow DCA method to accumulate Bitcoins.

waiting for bitcoin to get to a fixed price before buying is not a realistic method but the best thing to do is to set out the range of amount the price of bitcoin will fall to before you start buying and also set the range of amount the price of bitcoin will get to before you can sell off your holdings. Except you want to be a greedy investor if not, knowing the most convenient range of value I buy the DIP shouldn't be a big deal and should be a fix stuff because the volatile nature of BTC itself suggest that the price of BTC isn't stable and that while you are waiting for the price I go down to the threshold you've set for yourself, others are waiting for the bull run which will counter your plans of buying at the DIP.

This is usually not a problem with buying the dips, from you perspective it seems difficult to dilute the whole concept but let's buttress; no matter the price fall of Bitcoin it's still an opportunity for you to accumulate more Bitcoin, If you bought the dips around 42k price and the continue falling to a 40k and then to 38k price it doesn't call for panic rather it's another opportunity to grab more bitcoin. instead of getting confused you should make use of all the dips whether a 40k dip or 38k dip you should buy more when it dips because sure the price will bounce back and when it does it now becomes a discount for you. instead of buying at a high price that's the essence of buying the dips. And this kind of issues are one of the major reasons why we are advised to aways be prepared for the two ways movement of the Bitcoin market, if it falls more because you're prepared you will seize the opportunity to buy more and when the price goes up you become more profitable.

From the concept of the thread which is buy the dip and hodl you should start understanding that the dips are not a problem rather an opportunity in the Bitcoin market.

you actually right, back then i focus on buying in dip most time end up missing out because all my target was when the price is low I will buy and sell when it's has risen to a certain profitable price but never do me any good because always miss out ever since I started using the DCA strategies I've seen my portfolio increasing even when sometimes market experience some corrections, I don't panic at all I just take as opportunity to buy more.

When practicing the DCA strategies the chances of you missing out pretty low

I'm happy to have passed this stage in my Bitcoin journey, at least I know what I am doing and what to look out for, I have develop a method of building my Bitcoin portfolio that helps me buy effortlessly without having to be confused. Those who are yet should do same, chose your method of buying and work with it to avoid distractions because building Bitcoin portfolio could turn emotional exercise if not followed with rules.

To be specific, I adopted the DCA method some time ago and I have been using same to build my portfolio. I'm happy with the result so far and I'm glad I was able to make the decision to use it. I could buy at the dip once in a while depending if I got excess of my projected income. When I do this, I buy when the market drops and become a little stable within a zone. I don't usually care if it goes further than that after all, the DCA method is in place to buy if it gets lower.

The early one develop a strategy in buying Bitcoin, the better because a strategy saves a lot of energies and time.

At the first stage of investment planning, a new investor only thinks that he has to invest in Bitcoin. Before investing in a new situation, he has no idea that he has to hold his investment for a long time, but after investing, he gradually learns more detailed information about the investment. Very few new investors know about DCA method of investing. An investor invested 100 dollars in the first stage and later he thought to invest in stages but many investors do not know that this staged investment is considered as DCA method.

Those who have enough money and who have prior experience in investing can invest large amount of money at once as well as they can invest continuously but for those who do not have additional financial support DCA method of investment is a very effective method.  

By the time we are discussing long-term investments, many investors may be selling their investments. For example, if I plan now that I will hold my investment for the next six years, then in 2030 it will be time to sell my investment. Similarly, those who held their investment for six years in 2018 will sell their investment in 2024.  

I also have a solution to the issue you mentioned about waiting. If the investor has enough money, he will keep some money aside for the period when the market will come down a lot, but he will invest the remaining money consistently. If the investor plans in this way then I believe he will be able to make use of the opportunities that come along with investing consistently.

We should plan and decide on investments in such a way that we can definitely hold the investment for a long time. Investments should be planned in such a way that they can be retained rather than planning with the possibility of retention. It can be seen that this week I invested an extra amount of money, next week my demand for some money fell and I sold the investment and managed it like this but the investment did not happen. Invest a relatively small amount but be sure to keep an eye on your investment so that you can hold on to it and not sell your investment due to any danger.

If you buy a dip in the Bitcoin market you can basically buy once. But investing time should not be wasted hoping to buy this dip as we have started investing here with DCA method. From JJG discussion we learn about long term investment, so we will mainly invest regularly in DCA method. So if we invest for the long term as a simple solution then our next holding portfolio will turn out.

Initially, I was using only the DCA strategy in accumulating my Bitcoin, but since I started following this Buy the DIP and HODL, with the knowledge JayJuanGee has shared here, I have been able to adopt another strategy that allows me to buy the Bitcoin dip with the money I set aside to use in buying the Bitcoin dip and I also continue with my DCA strategy after I have bought the Bitcoin dip.

It matter on how they capable of and what price they like to enter since at the end of the day they are the one can decide regarding if they want to enter on certain level or not. We can also see the level of understanding what people show since it became obvious to us especially if they are showy on strategy show to us.

I also often became aggressive for acquiring especially right now that there are good drops happening since I always believe that there will be more for bitcoin this year especially ETF and halving is there so for sure we can get good profits by third quarter or fourth quarter of this year if there's good hype will be build up after that events to occur.

For this year I am more doing DCA and only spend a little bit for long term since current possible hype for this year is good for that strategy and for sure there's a lot of people will get rewarded just like other halving year where big pumps happens.

One of the things you most understand is that the possible factors that crumble investment is actually caused by poor investment planning so perhaps I will suggest that in other for you to last longer on your Bitcoin investment is never to invest all the money you have because if you do there is every possibility that you may not last long because there is no way you will not ran out of funds and you will be left with no option but to sell off the Bitcoin you already accumulated.

Since you are still new on investment I would advise you not to be too aggressive on investing on Bitcoin because if I understand you correctly it seem your strategy of investment is to invest all the money you have without a reserve funds and with the believe that sometime in the future you will have some money and then you will keep it as a reserve funds, actually that's a bad investment planning because if I may ask what are the chances that other serious need will not arise before the time you had in mind for the reserve funds? So actually the earlier you change your investment narrative the better for you, so perhaps instead of putting all the funds on the investment you could just cut it down by investing half of it using DCA method and keeping the other one as an emergency fund then if other funds comes up you could still cut it again and invest half because with this method your chances of tampering your investment because of other needs will be reduced.

It always coincides with my current personal situation. Where this morning my wife kept raving Bitcoin went down right after she bought it. btw he's been doing DCA once a week, now it's been going on for about 4 or 5 months, I need to be his mentor in dealing with unexpected situations like you said with extreme potential. There are many things that can be done including cultivating a strong mentality, avoiding negative media a little, and making sure not to look at Bitcoin prices too often. He just tries to buy, withdraw it into his wallet then forgets about it until next week when he goes in to buy.

Talking about trends definitely refers to longterm trends, we are still quite at the point of improvement, but if we are referring to shortterm trends then we don't have any targets in the near future, other than waiting for the halving which is around 100 days from now.

https://coinmarketcap.com/events/bitcoin-halving/

Please don't invest all your money in Bitcoin, that is not how to go about Bitcoin investment else you will be forced to sell your Bitcoin when something that you need money for comes up in the future. The topic of this discussion is how to buy and HODL, that is keep your asset for as long as it is necessary. Many things are required to be able to hodl Bitcoin and part of them is that you do not put all your money in Bitcoin but some of them.

If you have some money now and you want to start investing in Bitcoin, first calculate (you can estimate if you do not have the exact figure) how much you need for your basic needs up to when you expect to have another money, keep that aside and check how much will be remaining. From the balance, remove some money again for any emergency that can come up between now to when you expect another money and also keep that one aside. Then you can invest the remaining money in Bitcoin and you will have peace of mind.

This way, you will be living your life normally while also making your Bitcoin investment and trust me, you will not be under pressure to sell your Bitcoin when problem come up in the future. Chose the best way to buy that is suitable to you, as have been explained in this topic and you are good to go.

Of course having money reserves is important in investing but I am a new investor and I want to invest all the money I have in Bitcoin. It's not that I won't have money in the future, I definitely will have money in the future and I can definitely keep some money in reserve for investments if I want to. I made an investment and made this sudden decision without much prior planning in holding that investment. Since now thinking about investment again, it will definitely be in my plan to have a reserve fund so that the investment is not irregular.

How is that possible?  Bitcoin price does not go up and down all the time.  Is the dip you suggested to purchase correct at all?

Since the Bitcoin market is unregulated, what decisions can be made when buying a dip is if the Bitcoin market is bullish. The bitcoin market will not be so low that when buying bitcoins at $10, secondly if buying dips then how is it possible to get $15 equivalent bitcoin digits. Ever wondered how much the bitcoin market would have to be to get a $5 profit if you bought $10 worth of bitcoin?

The current bitcoin market is up to 41.3k, here if you buy a bitcoin for $10 you will get 0.00024 bitcoins. If you want to collect 15 dollars worth of bitcoins with 10 dollars then the price of bitcoins should come to 31000 dollars then you will get 0.00049 digits of bitcoins.

@Tmoonz You judge how the price of Bitcoin can be so high, why are you misleading people with wrong advice. Is it possible for such a big Bitcoin market dumping, never.

Investing in the DCA method is a method in which you will continue to buy bitcoins regularly and hold them for a long time. Bitcoin should be invested in weekly or monthly DCA method. And once you start investing bitcoins with DCA method you will be attracted to investing yourself. DCA method is popular among all investors.

I'm not a fan of victimizing an obvious advantage over an anticipated one, in real sense, I would not advice someone to tamper with their already DCA accumulation journey because they're optimistic the there'll be a dip some day, and they buy with the money they've been cutting out from their DCA accumulation strategy, NO. In  financial intelligence, you don't alter your already  existing investment, to entertain another one, , instead you make new plans to contain a new Idea without hurting the previous one. Tampering with your investment routine before maturity is a very bad financial advice.

For and effective DCA accumulation, consistency and dedication is key, if you'll cut your routine purchase from $100 to $70 for buying the DIP,  you're no longer consistent. Now convince me that you'll not cut it further down to $50 if there's another interesting accumulation idea that comes to your mind?.

I'm a big fan of a win win formula and I believe from the time you feel that there's going to be the possibility of a dip and you're interested in buying it, you've to sort out another means of accumulating money for it, you can take up a new job solely for that very purpose, and create a different account to hold funds for buying the dip, you can also cut down  your spendings to be able to save more. Its better you find a way to make more money to buy the DIP whenever it presents itself than tampering with your already running investments. That way your DCA accumulation journey isn't tempered and your buying the DIP plan is effectively serviced.

Well, comprehensive writing, and now you understand why it is best to patiently buy Bitcoin and hold it for a long time instead of aggressively buying it with the intention of taking quick profits. You know, I started my Bitcoin investment journey just the way you did until I became acquainted with it. All thanks to Jayjuangee for helping me through this period. My candid advice to you is to maintain consistency since you have chosen a refined investment strategy that has worked for you. I am focusing on consistency here because if you started buying your Bitcoin with a specific target in mind, then you stopped at the way, maybe because of other expenses that you did not put into consideration, which will hinder your accumulation target, thereby increasing the time to reach your target.

If you have been following this thread for some time, you would have come across the part where Jayjunagee mentioned that Bitcoin is best invested in percentages and DCA is the right strategy to invest in using percentages. All you have to do is divide your income based on percentages into an emergency fund, monthly expenses, and investments. If you follow this method, you will not encounter any difficulties in your bitcoin accumulation. This is a risk-free and stress-free investment strategy that will increase your accumulation without worrying about the price movement of Bitcoin.

Lesson well learnt, many will definitely take advantage of the knowledge being shared here while others will miss out, the individual cash flow is what i consider very vital follow by the investment strategies and getting started because procrastination could possibly lay off the target.

Waiting for the expected dip could be very risky because their is no guarantee that you can even be satisfied with the dip you are expecting, you may probably be waiting for more dip, take advantage of every dip by increasing your DCA is another smart approach, if your DCA allocation is usually $10 monthly it can be increased to $15 when in dip instead of waiting for the perfect dip that may not happen.