Topic: Buy the DIP, and HODL! - page 42. (Read 121766 times)

Exactly, that's what we're all aiming for Bitcoin. We want to have more BTCs during the bull run and have it sold, not all of it at a better price.
Selling all isn't a wise decision because in the next years to come, the price of it will be higher.

The fees are only becoming a problem when the network is being spammed. But so far, there's no signs of it and hopefully they won't appear anytime soon.

DCA strategy doesn't necessarily mean you most stick on weekly accumulation because even JayJuanGee has also mentioned that anyone can choose whether monthly or weekly depending on the one that's okay for them because even if is weekly or monthly what is more important is your persistent in Bitcoin accumulation by continue to always accumulate Bitcoin on your established timeframe.

Secondly don't think that those who normally accumulate Bitcoin on weekly basis are wasting there time because there are people who earn money on a daily or weekly basis so instead of  compiling the money till the end of the month they find it more convenient to use the weekly basis.


There is what they called discretionary fund, this is actually the funds that would be left after you must have done all your expenses and there are no more other things that will disturb you then you can use it for your accumulation of Bitcoin, so at this point I see no reason why you should use the funds you had budgeted on your DCA accumulation for another thing with the hope of returning it back because that shows that you are not discipline because an investors who have a goal to achieve on Bitcoin will enever allow anything to hamper there weekly accumulation.

Relying on one income is not a safe idea. No matter the amount that the source is able to make for us in a month or year, it is better to have another source because nothing lasts forever and not just last alone. From time to time there is competition from others, and there will be advancement and development in all niches, businesses, or industries. If that source gets closed or is experiencing difficulty, then that is when our other business or work will help us maintain balance until we are back in track.

Don't forget responsibilities increases with time. You might be single today and in the next few years you might be married with kids and still have extended families to watch out for some time. Imagine investing $200 of Bitcoin and expenses cost you $300 when you are single at a monthly income of $600. And you choose not to diversify or extend your source of income. When you get a family or a bigger responsibility your expensive might increase to $400 to $500 and now you will only have about $100 or less to investing Bitcoin. his is why diversification and sorting for other source  for more income is necessary.

Income and discretionary income can be very confusing to most people, especially to those who don't have a fixed salary coming at the end of the month. The concern is that if a person gets a monthly salary, it is easy to identify a discretionary income after removing the rest money for expenses in that month. But imagine a case where one has a skill and gets paid based on when he finishes his job, or the task given to him. This means at most it is difficult to completely manage and know what the overall income and the discretionary income are. Since his money can come anytime within the months and part by part based on the jobs and offers, he has that month. Such a person may find it hard to know the right percentage to use for the purchase of Bitcoin.

I see people in those positions when they calculate how much they made that month. For instance, it could be $2000 and what is left as discretionary income is $200. This is a huge issue for new or old investors. It is impulsive spending and improper records. For those persons who fall under this category, the need for becoming better should be put in place. Cutting down unnecessary spending and staying on a schedule will tend to harness the difficulties. I was concerned to talk about it because I have been in that position before and out of it, but many are still finding it hard to identify or differentiate possible income from discretionary income.

Actually in this case I don't even agree with saying the amount of income determines the amount of bitcoin they have because in the end even though this can be true when a billionaire will definitely be different in terms of portopolio with people whose economy is below average but on the other hand we must understand that in the end the amount of bitcoin collected is determined in terms of the accumulation they do with purchases every week or every month if it refers to DCA or maybe simultaneous purchases made when they use the buy on the dip method.

So that even though in the end a billionaire though it is not a benchmark that they can collect more bitcoin if in the end the accumulation they do is no better than ordinary people who collect from their monthly income.
Indeed, in this case the level of money and economic level can be a determinant but in the end the purchase of bitcoin is not determined by how rich they are but how much they can accumulate bitcoin according to their beliefs and according to their level of risk management.

I agree with you, everyone has a different lifestyle and has different thoughts. In the investments that are made, sometimes each other has differences where someone is more active in buying gradually every week, some prefer to buy every month or even in every Quarter.

There are also those who do not want to spend a purchase fee every week because if they routinely buy every week then they will spend a fee 4 times a month but if it is done once a month then they only pay one fee for each purchase made.

However, if his job is a farmer, of course he will make purchases every quarter because farming is harvested once in 3 months since it started. For that you are right, everyone has a different way of investing in bitcoin. I know a farmer on social media, he is so confident in Bitcoin that he has been buying bitcoin for almost 3 years with execution every Quarter. He continues to accumulate bitcoin every time he has money from farming.

So in a different way but everyone has a big target in bitcoin, which is to save it and have a lot of Bitcoin in their wallet. Regardless of the accumulation method, it is still one direction, namely holding it for a long time.

As for fees, it's not a problem, but as you said, sometimes it's really annoying.

you are right, we should not wait for deep if you want to invest for long-term. if we do that then definitely will Miss the opportunity.

I have a story about this when I see the Bitcoin price at $16,000 then I make a plan for investment in Bitcoin that I will wait till The price at $12,000 for Bitcoin then I will buy full 1 Bitcoin by selling some of my physical assets. and then I am waiting for $12,000 as Bitcoin price but in this season Bitcoin price drop till $15,000. and again Bitcoin price increasing and now Bitcoin price is more than $60,000 so I fail that opportunity now I am regarding. so I think want to invest for a long time he/she should invest anytime he had money. and definitely it should be in a DCA method

 as a short-term trader that will be a nice strategy but not for long-term investors, because waiting for the dip is not a smart move at all as a long-term investor , rather you purchase at anytime you have some money to spare that you can hold for long either by DCAing or lump-summing.

Because waiting for the dip will only slow one down , and IMO the when it comes to accumulating, whenever I divide my funds, I usually use 40\50 , so the 40 percentage Is my emergency funds while the remaining, is for accumulating, in order to cover some space but is not fixed though, because sometimes I can choose to set some percentage as reserve funds but I mainly focus on emergency and accumulating funds .

That is some pretty presumptive speculation that you are making both in terms of DCA being more profitable than lump sum and also you are failing to really provide specifics.

Your presumptions are not even correct, either, or maybe you just framed them badly.

If we have two people with an equal budget, then most likely the person who front loads in a 10 year timeline or even front loads in a 4 year timeline is likely going to do better than the person who defers buying through  either DCA or buying dips, yet we cannot know, since we don't have enough details regarding when the guy bought.

We could have two or three people who might have something close to an initial starting budget, and A lump sums, yet B continues to invest into bitcoin, so that B ends up investing more and likely having a higher cost per  BTC, yet B ends up with more BTC even though they cost him more, so B would be better off than A. 

We also could have A with more money than B, so he is able to lump sum and B is not able t lump sum, and likely B is not going to catch up with A unless over the years he ends up investing more than A, and surely he would likely have higher costs per BTC too, yet we cannot even know that for sure because we cannot presume the direction of the BTC price, even though historically the BTC price has trended, up, yet we have had some extensive periods that can even last for several years that could end up allowing for BTC purchases at lower prices, which would cause the DCA'er to come out ahead of the lump summer so long as the lump summer did not also DCA but instead just invested one or two times and then if the BTC price ended up dipping from the lump sum buy amount, then the DCAer ends up buying BTC at cheaper prices. 

Not easy to know these kinds of things in advance, yet part of the reason that DCAers tend to have better outcomes than lump summers who stop investing is due the DCAers persistence that likely ends up in the DCAer investing more than the lump summer, yet with the passage of time since the BTC price tends to go up, especially if we are considering investment timelines of 4-10 years or more, then the DCAer ends up profiting from those historical BTC price dynamics that are not guaranteed to continue to occur, yet have decently good odds of continuing to occur, especially since the strength of bitcoin's investment thesis does not seem to be getting  weaker, but instead seems to be getting stronger, even if the steepness of the price slope seems to be getting less steep with the passage of time, yet even future steepness is not exactly clear, either.


There is a lot of truth that many folks do not have either an ability or a desire to lump sum invest into bitcoin or anything like that, so DCA allows for way better, reasonable and practical ways to manage cashflow in order to figure how much to invest into bitcoin each week, whether it is $100 per week, $10 per week or some other amount that they believe to be reasonably achievable and within their BTC investment aggressiveness levels.


That is true.  In order to really make progress and to take bitcoin investing seriously, it is important to keep investing regularly, which is part of the reason that I consider that buying every week would be a good thing, even though surely some folks might want to spread their investments out to be less frequent, so there is nothing wrong with their following their own preferences.


Personally, it seems to me that almost everyone has a float, whether he is a newbie investor, an experienced investor or even if he has not quite yet gotten into investing.

To me, it seems that float is the amount of money that anyone keeps on hand when they might not be sure about how all of their income and expenses are going to work out for the month, so if the person projects out his income and expenses for month in advance, he will see that there are likely certain times of the month that he has smaller amounts of extra cash and other times of the month where he just has larger amounts of cash, yet those larger amounts of cash are already somewhat dedicated for expenses when the expenses come in or come due, yet the exact amount of the expense might not exactly be known until it arrives.  The same is true for cash flows.  A person might have some regular monthly pay amounts, yet there is even variance in the pay amounts of the regular monthly pay, and there could also be some other kinds of irregular pay that a guy gets for work or for things that he might sell, so maybe there are some months that some extra pay comes in or some months that the pay is less than expected, and so the float should be enough to cover those kinds of irregularities whether the guy is an investor or not. 

Surely if a guy has more complications in his finances, he might have greater levels of float, and so he might purposefully choose to maintain higher levels of float if he already anticipates either intra-month shortages of pay and/or extra expenses.

I otherwise agree with your description of the emergency funds and reserves, and it seems that the emergency fund would be built first up to at least 3 months, but it can be simultaneously being built while still investing into bitcoin, yet once it is built at least to the minimal amount, then there can be continued building of it larger and/or building of various kinds of reserve funds, and surely the particular kinds of circumstances of an individual might affect how he might prioritize the building of various kinds of reserve funds and the extent to which he might maintain different categories within the reserve fund or just keep them all as a general category with the same priority, which seems less planned if a person is not figuring out how to prioritize his various kinds of reserve funds, yet surely not everyone is the same in regards to how much planning that they might do or how particular they might want to be when they are saving up cash for certain of their purposes.. or how long they might allow certain categories to build up and to stay in cash.. which generally tends to be a non-working category, yet folks sometimes will want their cash to be put into shorter term working categories, especially if they might be considering they they will need it 2-3 years down the road but they don't completely want to keep the value in cash for that long while they might be building it up.


I doubt that investing weekly does much to achieve any of the stuff that you are saying, except it just demonstrates a more active focus on buying bitcoin every week rather than spreading out such purchases to longer periods, and it does not even assure that you are going to get lower prices... it just allows for more activism in the BTC purchases, and some people might not want that... and so we choose our level of aggressiveness, including that some people might have a lot of other things going on in their lives and they may or may not be able to dedicate to buying bitcoin every week, so they might want to spread it out. 

Personally, I think that setting up systems to try to buy BTC every week is important, since I believe that buying BTC should be considered as an important thing - yet I can see that other people might not feel that bitcoin is at that level of importance for them and they might even be spending money for various self-improvement systems and ways to earn more money in the future and other reasons that might improve their lives better than merely buying bitcoin, so they choose a more spread out BTC investment schedule.  There are balances with these kinds of matters for sure.


Income and discretionary income are not the same thing, even though you might be describing something similar, but the concept of discretionary income is the amount of money that you have left after you account for your expenses.  It is more accurate to say that we are ONLY investing from our discretionary income rather than just presuming that two people with the same income are the same or presuming that merely if someone makes more money or less money that he is able to invest in bitcoin or not.  Sometimes people have discretionary expenses too, so if they cut some of their discretionary expenses, then they end up having greater discretionary income (more money available to buy bitcoin).  Of course a person who chooses to spend 100% of his discretionary income on buying bitcoin is likely going to end up getting himself into trouble due to miscalculation of his expenses or even sometimes realizing that he needs or wants thing, so sometimes even within discretionary income there could be things that a guy wants to be able to buy from time to time or to prepare for some extra discretionary expenses through the month like going out to eat, drink or go to a movie. and so if he has spent all of his discretionary income on bitcoin, he might create some worse existence and stress for himself and perhaps even get into a position that he ends up having to draw from his bitcoin because he did not lessen his level of BTC buying aggressiveness.
 

Yeah but still.  A more experienced investor is more likely to get used to buying BTC regularly, and also have certain systems in place in terms of how he is prioritizing various kinds of funds that he has.  New investors might still be building various systems, and so for example, a brand new investor might already have systems in place in which he tends to have 2-4 weeks of extra cash, but when he gets involved investing into bitcoin, he should come to realize that it is going to be to his own advantage to build up his back up funds to be a minimum of 3 months (which would be emergency funds), and so it could take him 6 months to a year just to get his various kinds of back up funds into a good position, so for example, if the guy earns around $2k per month, but his expenses are around $1,500 per month, then he ONLY has $500 to work with, and if he ONLY built up his emergency funds with that extra $500 per month, it would take him 9 months just to get up to $4,500 (which is 3 months expenses), and if he chooses to invest half into bitcoin and the other half into his emergency funds, it will take him 18 months to build up such emergency funds.. .that is if everything goes well and as planned.. and if there are set backs, then it could take longer to build up strong finances and cashflow management and to figure out some kind of a way to balance how funds are being used and how much funds are being kept on the side for back up funds, whether emergency funds or other kinds of reserve funds.

Maybe you should go pick up the internet and do some uncovering, dividing our income into separate phases in order to accumulate differently has nothing to do with trading. Who among does not like to accumulate Bitcoin when it is cheap, everyone does including the traders and those who tend to hold for a long period. Nothing is wrong with dividing our investment funds, during those weeks it is no doubt that we can never buy at same prices, one has to be lower and some higher but that gives the investor a better chances of accumulating quite the amount of Bitcoin.

For your instance given, what if it goes the other way around and the price drops below the initial you should have bought all at once, the market is 50/50 and you just have to go with it, either high or low.

This is not the definition of trading. The post is simply addressing different ways one can go about accumulating Bitcoin and hodl and not necessarily how to sell. As much as it does not involve buying to sell in a short time, then trading is out of the picture. Traders mostly do not use the DCA method but prefer other technical analysis method that will make them think they can catch the bottom in a bid to buy low and sell high. This is different from when an investor adopt any method of buying Bitcoin to hold for several years.

It is also important to note that the method of buying Bitcoin have little effect on the success of the investment, rather how the investment is managed is the key. Despite the entry method, as long as the investment is held across several years, there are good chances that the investment will be more successful and someone that buy to sell in a short time and probably at the sight of profits.

So let us not argue too much about what might be the best approach of buying Bitcoin rather let the focus be on what should be the best way to hold and also resist the urge to sell in a hurry.

Not debating whether a person should do monthly DCA or weekly DCA. It totally depends on the individual's preference. Sometimes the person decides how to DCA depending on his salary, if monthly salary, then monthly DCA or if weekly salary, then weekly DCA. Many times the individual calculates DCA monthly or weekly, ignoring his pay period. I think this matter should be allowed to proceed independently. But if a person asks for advice you can give him advice, in this case your advice can be to determine DCA depending on salary. Do monthly DCA for monthly salary and weekly DCA for weekly salary.

When it comes to investing I take a few different approaches to my advantage. Most people decide where to spend their salary/earnings after receiving their salary. But I take a different approach here, in this case I don't make any plans after getting paid, instead I keep spending to meet my needs. I don't have a plan from my salary, but rather let the expenses flow freely. The next month when I get paid again, I put the money left over from the previous month's salary after expenses into savings. One thing to note in this case, the salary amount should be more than your demand, otherwise you may be deprived of investment. After I receive the next month's salary, I divide the previous month's balance by 3. Add 1 out of 3 to bitcoin investment and 2 to reserve funds. I can save around 20%-30% of my earnings per month out of necessity. That way I don't have to make any sacrifices to fulfill my needs and can invest properly. Not everyone's situation is the same, so the salary must be higher than your needs to take this approach. My position is currently in very low demand and the pay is average. So for me such an approach brings relief.

If you receive salary monthly and you think by dividing the money you have set aside for your Bitcoin accumulation into weeks will earn you more Bitcoin through the hope that there will be a dip within the week were you can buy at low price then you are just a trader.
Have you thought of you dividing it and in the course of you buying weekly with the money met for the month and Bitcoin price goes up will you wait for it to come down before you buy or you will still go ahead and buy, there's no need dividing it if you receives your salary monthly because there's no difference in the monthly and weekly accumulation except you are a trader who is waiting for a dip to happen.

There are several reason someone might want to spread the investment over several weeks or months as the case may be and it is usually a case of personal preference. One notable reason I can come up with is to get filled at different price point which may result in collecting more Bitcoin with the same dollar amount. For instance, in a market that is generally in down trend, dividing the funds and spreading the investment will make you get some coins at lower prices which will result in more Bitcoins. The reverse might be the case for a market that is generally in uptrend and this comes back to personal preference even though the overall goal is to be optimally invested in Bitcoin.

I don't see much difference between monthly and weekly DCA, and the choice for which to use depends on the cashflow. For those earning monthly income like salary, going for monthly DCA is best so that as soon as the funds are received, the part for investment are immediately converted to Bitcoin and transferred to a safe wallet. On the other hand those running business and seeing money daily can go with the weekly DCA as this may resonate more with them such that at the end of the week when they balance their books, they can easily set aside the funds for their Bitcoin investment. So the cashflow play important role but there could be other factors too that may inform the choice and investor will use.

For other sources of income, it is very important to help in your investment process without obstacles, even if the monthly salary is not large, other sources of income can cover your investment, whichever way your strategy is in investing BTC, other sources of income can help a lot.

If I myself rely on a monthly salary, there may be many obstacles in accumulating bitcoin, of course, the needs of each month are sometimes different, there are always unexpected urgent needs.

What I do:
Source of income always goes into BTC purchases
Some of the remaining salary will be added to BTC accumulation so this is a little aggressive that I do to continue to be able to multiply BTC.

I see no reason dividing your your money to invest weekly since it will still amount to same figure, for example if you want to invest $100 monthly when you receive your salary you can just use it at once than dividing it and still use it to accumulate weekly, the only time you should invest weekly is if you are receiving your salary on a weekly basis and from your analysis you did talk like someone who remembers that when ever we receives our salary the first thing we should do is to remove money for the running of the house like paying of taxes, electricity, water, stocking the house with food, paying rent etc, then Discretionary income being the one lift should be used to invest in Bitcoin.
When you receive your salary monthly and you decide to remove the one for Bitcoin and then divide it so you can then be using it to invest weekly there's a high tendency that you may even use it for another thing with the hope of returning it which may never happen there by reducing your accumulation percentage for the month.

The DCA kind of investment is suitable, low income earners, middle class and the large income earners, all classes mostly prefer to DCA because of extreme convenience, it allows the investor to make proper management of funds deciding how much to allocate into purchasing Bitcoin and the percentage to allocate into a separate alternatives, maybe business or something that is likely to give back profits in a short time which will enable the investor to add up to his accumulation style.

Living on a single source of income is not bad, but not totally valid, it also depends on how much income the person gets by the end of the month or week, if the income is very high enough to sustain every vital needs and still to invest then nothing much to worry about. But, owning a second part of earning is also a good move for anyone who would love to control more funds.

Yeah I know where you are driving at, the aspect of the amount of income one earns will determine the amount of bitcoin to accumulate. Actually I was not the one that made the statement but I replied to what @Felicity_Tide said, and there is no much difference from what you are saying from mine. Discretion fund and or amount we earn from salary are not a seperate thing because without the amount someone earn from his place of work or anywhere he gets his fund from, he can't be able to have a discretion fund because there must be a place you earn money to invest in bitcoin and also have a discretion fund so both are thesame thing.

I am not explaining about old investor. I am taking an instance of a new investor who is struggling with strategy to help in managing his fund properly in other not to spend agresively. Because surely a person may be an old investors but hasn't figure out a better strategy to help him in his accumulation journey. No body wether old or new is perfect in bitcoin accumulation process. Surely a person who is interested to invest in bitcoin will be willing to learn other strategy or be able to Tweak new strategies from time to time.

That's the biggest advantage of this DCA method, anyone is capable to succeed on it as long as you know how to allocate sustainable funds so you can continue to DCA without being tempted to sell at the middle of your investment process due to financial crisis.

And for you to successfully do that, do not rely on a single source of income but find side hustles that will cover up your funds for investment. That way, you will keep buying and hodling potential coins without being pressured if you can gain quick profits or not.

Depends on the volume you can accumulate since somehow lump sum strategy may work that way especially if you could able to acquire huge volume. But if you can only spend few bucks for acquiring for monthly basis then maybe you will not get the best result what you wanted. But if this is what those people could afford and just think about they are doing a savings with bitcoin then plan to make an action in span of 4 - 10 years then maybe this is still better than nothing. For sure there would be some changes will happen on financial side and there's a chance that people could earn big then for that situation they could just adjust their purchasing power then accumulate more bigger volume. Maybe just set aside thinking about other things and focus first on building up your bitcoin portfolio. Later on once you are already gaining decent volume then by that time you can take care of other things which is important to make your life became more sustainable.

I agree successful bitcoin investing depends on how much you earn and hold. Investing only once month is not best way. Instead of this split your investments weekly to reduce risks. Divide your salary into parts. Bitcoin investment and emergency savings and family expenses. This helps you invest steadily buy bitcoin at lower prices and control spending and make wise decisions. By doing this you will maximize gains stay financially stable and accumulate bitcoin more effectively.