Topic: Buy the DIP, and HODL! - page 405. (Read 123361 times)

In as much as is good trying to accumulate a huge amount of Bitcoin as soon as possible shouldn't make us to invest excessively because at first you will be enjoying and feeling very excited with how much Bitcoin you have accumulated but however when other physical needs will arise that's when you will realize the need to have a reserve funds.

Because one of the things I understand why most people invest on Bitcoin excessively is because of the fear of losing out, because whenever they see a very good buying opportunity presented by Bitcoin price they tends to invest all they have with the hope of managing to take care of there needs from other source while all there money are being invested on Bitcoin without knowing that if the other source could not satisfy there physical needs it could lead to a serious panic that would warrant them to sell some amounts of there Bitcoin.

That is it, having additional source of income makes one remain balance in terms of expenses or over expenditure within the period of investment, when having multiple stream of income it reduces tension and the fear to temper their investment without getting to the stage of maturity.
People fails to understand the fact that before they go into whatever investment or even savings they should have another means that would also increase their chances of not touching their money, just like bitcoin at this point when we are experiencing a bull trend isn't something one should temper due to lack and want it reduces profits .

Whenever thoughts comes up, it is better to re-access your investment plan and your cash inflow to know if what you are investing wouldn't be affecting your monthly expenses and emergency funds on reserve, and if it does, it is better that you choose a small amount that you can afford for a long term and be relieved from such thoughts so that you can be at ease your bitcoin accumulation regularly and increase your bitcoin portfolio. On the other hand after accessing your investment plan and you see that you are not over investing and the amount that you are using wouldn't affect other needs, you can continue but you have to check your monthly expenses again and then cut down your expenses so that you can have more reserve funds that will enable have that assurance that you can take care of any emergency that may occur.

When you can't increase your investment plan, there is no need to worry about it. You should just continue with the amount that you can afford to afford so that you don't go and invest aggressively which will make you not be able to take care of your monthly expenses or some emergency that will arise. Before you know it, you will go and sell your bitcoin when it is not yet the time of your will because you are short of cash. It is unethical to invest in this pattern because you will terminate your long term goal to reach your bitcoin target.

When you find yourself in such thoughts of thinking to increasing the amount that you are using for regular DCA, it is good that you look for another means of income to add to the present one. This will enable your increase the your income and the amount that you are using to buy weekly or monthly.

If we invest excessively, our portfolio increases but spending every month will be burdened because a lot of money goes out to bitcoin while other needs are cut because we want to increase investment every week or month, of course this will be heavy and unbalanced people will definitely find it difficult to do this.

One of them must balance between the two for bitcoin spending for 1 month - one month's expenses then the more increased then it is needed for the budget, there is also a desire for higher income it must find another source of income because if you only rely on a monthly salary it is clear that it will not be enough, and one other source will ease your burden for expenses every month while investment will continue.

Indeed, there is nothing wrong and I also said in my previous writing that it is a good thing but if in the end we are only busy with the goal of reaching the target of 1 bitcoin but without thinking about other conditions it is not something good of course so instead of pegging ourselves to have 1 bitcoin in the investment made it would be better to focus on the strategy we do when buying because in the end whether it ends up at 1 btc or even less than that we have still tried our best so that no regrets will occur. Having a benchmark that we must have at least 1 btc or more in the investment made will actually make us feel burdened by the amount we have to pursue (lack of the amount of btc to collect) rather than being like that it is better to minimize all possibilities by focusing on collecting btc consistently without thinking about how many btc we collect for the ultimate goal.

Now this is the situation that I mean when someone has a target to have 1 bitcoin for example within a certain period of time then it must definitely think about how much budget we have to travel to get to 1 btc within that period of time. If we use the example of $200 in a week then indeed we must be prepared with that nominal regardless of the economy we have while to invest $200 in a week consistently not everyone can which is precisely this will be an obstacle so instead of like that, it is better to focus on the investments that we can and do so as not to hamper our other needs for life as for the amount of btc collected (although not 1 btc) it will not be a problem because we will still be investors and get benefits if we do it the right way.

One thing we always take record at time of maturity (lasted period of investment) we might think we are over investing due to how other needs that surrounds us at the initial stage of investment might think we can't manage the situation at hand, what I also understand during investment is that we may finds it very difficult to increase our investment plan just as you said either by weekly or monthly but it should be in a way that we don't over stressed ourselves knowing too well that we can't go above our capacity or income we received. Maybe thinking how I wish their works allows them to earn higher they would have increased their investment plan maybe to make huge return or to increase profits before their expected date of harvest.

It seems to me that there is nothing wrong with having goals, and maybe considering how realistic the goals are and/or what is the reason for something like a 1 BTC goal.. it is a bit of a unit bias kind of a setting, and like I mentioned earlier, if someone were either brand new to bitcoin or just recently beginning to accumulate bitcoin, then having a goal to get to one bitcoin in 10 years, would likely require around $200 per week invested into bitcoin... for those persons who do not have the cash to front load their investment into bitcoin.

So if we attempt to be realistic with our goals, then we may welll also like to have short and medium term goals too that might involve what are we attempting to achieve this year and maybe what are we attempting to achieve in the next 5 years... so in the end we could have several different kinds of short and medium term goals that could be working towards the achievement of the longer term goal that might seem quite far off.. something like 10 years or even having goals of 20 to 30 years is also not unrealistic, even though they might have a lot of complicated steps along the way that might end up causing them to need to be adjusted later down the road if it might appear that we are not on the right track.

Let's get back to the 1 bitcoin in 10 years goal, and even if a person realizes that there likely needs to be around $200 per week invested into bitcoin in order to make such goal realistic, such person could still maintain such goal for a while even if the first year, s/he had only been able to invest $20 per week, but there may be some visions regarding how the income might be able to be raised and/or how the expenses might be able to be cut in order to bring the weekly amount up to $200 per week.  At the same time, if after about 5 years, the average bought per week had only been around $100 per week, then there would be a lot of short fall, and maybe even a need to get the weekly amount up to $400 to $800 in order to be able to still be able to reach the 1 BTC in 10 years goal, and maybe by the time we start to get to 7 or 8 years, there could be some acknowledgement that it might end up taking somewhere between 12 years and 15 years to reach such 1 BTC goal.. so there could be a lot of ways that the aspirational goals end up playing out in terms of perhaps being a bit high.. or even in some other cases, the goal ends up getting reached much sooner than seemed possible, and so adjustments could be made in regards to reaching the goal sooner than expected, and maybe even considering that some of the goals that were created were NOT hard (and/or high) enough.


Frequently, I tell people that bitcoin is an assymetric bet to the upside, which largely means that several of the very bullish scenarios have the potential for very stupendous returns that are not limited to the upside, but as long as the person is not fucking around with their finances and using leverage or other forms of gambling, then the most that they would be able to lose would be 100%.. but there are a lot of variations in what they could potentially gain that is not limited to 100%.. but it is not even guaranteed to be 100% or to be anything, so they could gain or they could lose, but there are surely are a lot of strong bitcoin fundamentals that help to establish that if they have a genuinely longer term investment timeline of 4-10 years or longer, then they could choose a variety of ways to invest by DCA, lump sum and/or buying on the dip that could help them to establish a stake/position and to have potentials to be able to profit, but then again if they are dragging out their investment through slow measures, then their earlier investments are going to reach the 4-10 year time horizon faster than their later investments,  so for example, if they are still investing 4 years from now, then the investments that they make 4 years down the road should also have a 4-10 year investment time horizon from the time that the money is injected into the system.

The creation of longer term investment time horizons does not absolutely limit someone from being able to do whatever they like in terms of pulling out their investment, even though it is likely better to choose to invest smaller amounts and to maintain a longer time horizon rather than investing larger amounts and not being able to stick with the investment because the money is needed down the road because sufficient cash and/or other liquid short-term investments were not sufficiently maintained.
 

Position size can help with these kinds of concerns too.. so if the person is overly worried about being able to take out his/her investment, then maybe s/he needs to lower his/her position size in order to be able to continue to invest without getting overly preoccupied about shorter term price movements... so maybe instead of investing $100 per week, he might invest somewhere between $25 and $50 per week so that s/he is not overly pre-occupied about how much is being invested and/or the short-term growth of such investment.. and so maybe after 8-10 years, there might be some changes in perspective and at least by then the investment has been allowed to grow and maybe even to compound by its having had gone through cycles.. and surely sometimes later down the road, there could be some regrets about not having had invested more, but the balance likely also does have to do with being able to stick with the investment. 

You are now the person confusing others, the guy never made mention of anyone, he just replied to the OP directly and what I read makes so much sense, only for the error made that DCA have a guarantee against loss which is not so because if the asset you are DCAing on is bad, there is nothing you can do about it and you might lose the investment, DCA or not. That is the only correction I could make on his reply and I'm certain that the advice given is a very good one that would save anyone from investing irrationally, this is particularly if such is not the type that is good with the market speculation.

As for yours against what you believe others said, if one sees the price of Bitcoin increasing and due to that makes an aggressive buy, it's such a foolish act. It would be so dumb if the person didn't have any speculative idea about Bitcoin, what if it was bought at the peak where the coin is getting ready to fall? I'm glad you considered this yourself, but for the second part that it could continue to rise, that is the dilemma that is happening to investors as no one knows for sure what the market would do. But for the DCA's advice, all the problem is solved and there is no investor that regrets DCA as long as the investment itself is good.

Take, for instance, someone who wants to invest when the price is high. Let's say the Bitcoin price is at $37,000, instead of letting FOMO (emotion) rule you into regretting your actions as Bitcoin price might be at 34,000 and lower a week after or regretting not buying if it reached about $45,000 a week after, you might want to DCA. This means that you won't miss out entirely but would first start with a small fraction of the DCA investment. This is so wise as far as I'm concerned and it's being done by dividing the intended money into equal parts, and most prefer 10 parts. You now invest each part periodically, it might be daily, weekly, or more, just as you prefer it. By this approach, you've outsmarted the market as you can't miss out if it is sold or bought.

If your friend is interested in investing only because of the profit aspect of the investment, you should give him a complete understanding of the investment. This is very normal for newbies. Newbies are always in a hurry in any work. From the friend you mentioned, it sounds like your friend is more interested in investing only on the profit side of the investment, you should tell him that the amount he has the potential to gain from the investment is the same as the amount he has the potential to lose from the investment hence the profit and loss. After accepting, he should express his interest to invest. 

First of all your friend needs to know enough about investing, he will never be able to hold an investment with the same understanding that your friend has about investing. When your friend's investment shows some loss due to a small change in the market, your friend will get very excited and sell all his investment because he cannot bear the small loss. Instead of doing so after investing, he should have adequate understanding of the investment before investing. You must tell your friend the advantages of holding investments for a long time and also directly discuss with him that he needs to be patient and take risks.

There are a few things that I want to correct in this case because however when talking about bitcoin then right now there is no wrong time to buy when we have found what methods or strategies are suitable to do. Many feel that the price is always a benchmark in buying but when we have determined the strategy that is done especially for almost everyone who is here who says DCA actually the price is not always a benchmark because in the end we have to realize that thinking further about the price when we do DCA is just a waste of time because in the end we know that regardless of the price that is going up or down when DCA is done things like that are not the main reference because the point is in DCA not in the price.
In addition, having 1 bitcoin or more is indeed very good but that does not mean we have to have 1 bitcoin as our benchmark as an investor because that kind of thinking makes us too focused on one thing but not thinking about other conditions.
We just have to focus on doing what we can do, no need to peg that we have to collect 1 bitcoin or more as a condition that we are an investor because we are not here to burden ourselves.

Therefore, it must be adjusted to individual needs, don't follow other people's percentages, why do I say 30% because the salary earned during a month of work is quite large, so I allocate to bitcoin to be spent with that percentage as long as they are heavy then they can be lowered but with an aggressive level, isn't that better as long as it doesn't become a burden during our month?

For beginners it still makes sense if you start from 5% -10% it is still quite normal but over time beginners can adapt to the finances they have and by spending 10% if they have been able to master management well then it could be that it can be increased depending on their abilities, I never force anyone.

There is always a saying before investing make a reserve fund of at least 3 months or more so that your investment is safer because it will not be interrupted in the middle of the road.
Of course I think about the reserve fund, because if I don't think about this, it is certain that when there is an urgent situation that requires fiat, the reserve fund can be used, no need for investment funds to be pulled out.

The signature campaign can be an additional percentage man if you don't cash out directly with fiat I just try the income from the signature campaign to HODL and accumulate in addition, even though it doesn't consistently earn here but it can be considered as additional funds for your investment.

As for whether or not I'm getting kicked out of the campaign now, I won't tell you because I already have the answer to that announcement so I'll tell you the truth.
Never know how long I'll last but I'm trying to make extra money in the campaign.

Of course is the right time to buy and the earlier people realize themselves the better for them because just like what happened before when the Bitcoin price was still a bit dip of $25 so many people were still expecting it to dip more before they could utilize the opportunity and invest and however the next thing they saw was Bitcoin moving straight up and considering the price of Bitcoin now they are wishing for the price to go back to the previous state so that they could buy.

And perhaps the price has still present a great opportunity for them to still utilize the opportunity and invest but are still waiting for more dip, so however if people should continue expecting dip before they could buy perhaps they will miss out all the buying chance they have and end up not buying at all.

First, I like reading the posts in this thread. There are many things I can take from the conversation about investment methods and techniques in the DCA pattern which are currently hot in this space. So, in my opinion, what has been discussed at length about DCA seems to have proven successful.

Yes. The observed price of $37,278 is currently running and from what you said it also seems reasonable to do so immediately, because BTC is also rising slowly and steadily.

That's right, when we wait for a dip to buy, sometimes the market keeps moving up, and that makes us miss our chance to buy and we end up having to buy at a higher price.
I don't think this is the time for us to procrastinate anymore, especially now that prices continue to move up. As I said before, waiting will make us miss opportunities and I think that's something that is not good, especially we already have and prepare for us to allocate to buy bitcoin.
Because if we talk about our desire to buy at the lowest price, everyone will say the same thing.

I am pretty much saying that I don't know where there is going to be resistance, but there are certain points where I suspect that there could end up being resistance before $55k (and potentially a decent-sized correction before surpassing such resistance at $55k), yet I am still don't have much certainty about whether such resistance will end up playing out and I don't really play around with changing the system that I already employ based on possible increased or decreases in my beliefs that there might be support and/or resistance at various short-term price points.  I personally believe that my own system is largely price neutral, even though just like many other forum members I like to spout out in regards to various resistance and/or support points that may or may not exist or if I might believe that there is 60% chance of something rather than a 50% chance, which largely is not even necessarily saying much in terms of maybe it will happen and maybe not.. and at this moment, in regards to what I believe might happen, I am slightly leaning in this direction rather than in that direction.


Well it seems that many of us who are in bitcoin believe that overall it remains quite likely that BTC prices are going to continue to go up whether we are talking about 1-2 years from now or 5 years from now or 10 years from now or whatever date into the future, but even the fact that mostly many of us believe that the BTC price is more likely than not to be going up, it still should not mean that we are completely unprepared for various kinds of scenarios in which our base case does not end up coming true. .The amount that you are prepared for UP versus DOWN likely has to do with your various factors, and surely if you are relatively early in your BTC accumulation journey then it may well take 4-10 years just for you to get to a position in which you feel that you have accumulated enough BTC and that you can transition into some other kind of a strategy.. such as BTC maintenance...l or maybe you have other ideas regarding what you would like to do with your BTC and/or whether you are going to want to continue to hold BTC or to sell it.. which I cannot imagine selling all of your BTC to be a good plan if you took 4-10 years to establish a position...


We are in a public thread, so I am just responding to what I perceived to have had been important points in relation to your various posts... and yeah, I find it problematic for any member to be rationalizing away behaviors in which s/he may have had been hanging onto way too much cash during the couple of months between mid-August and mid-october that BTC prices were largely bouncing between the upper $24ks and the lower $27ks, and sure many of us likely make mistakes along the way, and I would think that you are not the ONLY member here who had likely hung onto way too much cash during those two months, and might even have some regrets regarding those choices, but surely each of us has to live with the choices that we made...

..and maybe I should be asking Wind_FURY to chime in to let us know how he feels about how vocal that he was being during that mid-august to mid-october period about waiting for BTC price dips that did not end up happening, and does he feel o.k. with his own position and BTC accumulation situation since the BTC price did not end up dipping lower at that point.. and our price moves and UPpity break out of more than 40% UPpity, it is seeming even more problematic to even be hoping for sub $30k BTC prices at this time.. .I am not saying that they won't happen, but sometimes each of us surely has to attempt to make sure that we really are sufficiently prepared for UP and not overly weighted for DOWN that now might be appearing a bit more ridiculous since those whole two months we were quite a bit below the 200-week moving average which should have had been more of enough of a bottom to have had been buying the dip during that time.

Am not really sure if that is what dey are referring to. I think what they are talking about is that the more bitcoin price increases the more people becomes more agressive to buy. Consedring the prices growth because you might get into trouble by investing when bitcoin price is very high. And morover who know if the price will keep on soaring higher that we should expect also lower. So the DCA method you are emphasising might be good but in this context I don't really think that what@onyeze is talking about.

But that not withstanding, buying bitcoin should not be something one should be afraid of. price increase is always an advantage to accumulators because many fact has proven bitcoin to be a store of value.

This DCA method is not only suitable for one person, but is very suitable for everyone so that the application of this method will never be stale for anyone at any time because it has been proven to be able to accumulate every week, month and year. I also still really like this method because it can help me to get an average price and an average profit when price increases start to occur like now, besides that there is never any loss as long as I don't release Bitcoin at a low price. So I still consider this method to be very good for me to continue applying to my investments so far.

No matter how much the price of Bitcoin increases, if Bitcoin is deposited regularly, one should always continue to invest in the DCA method. Because if we invest every week then we will calculate monthly average. And if I invest monthly DCA method then I will calculate annual average. By calculating the average price that will come, of course, we should continue our investment in this way. Investing as an average is less likely to result in a loss, because if the price of Bitcoin goes up, we will have a price chart with the median as the price from the lowest to the highest. Because if we have invested 10-15 dollars per week then we will average the average price list.

Bitcoin price can't be predicted,  the more you wait to buy at a lower price the more chances of missing the opportunity to buy when it is even cheap.  Buying bitcoin low shouldn't be a problem from stopping one not to invest in bitcoin, buying bitcoin anytime one is able to afford is not a bad idea, their is still profit for every bitcoin bought as far as one is able to hodl for sometime. It is good to buy bitcoin at the bottom of the dip but waiting to buy at the bottom of the dip is something that may not happen because of volatility can be predicted. Everytime at which bitcoin is bought their always a profit for it in the future, always waiting for dip to buy bitcoin I consider it to be greed which can be an opportunity that can be missed. 

Let's learn to value every price we can afford to buy bitcoin,  if we meet up with the dip to buy bitcoin then let's go fall it, but waiting for a speculated low price to buy is something that may not happen as predicted at the moment.