Topic: Buy the DIP, and HODL! - page 422. (Read 108284 times)

I agree with you completely. For a volatile market like Bitcoin, there are high chances that this method may not be as effective as it seem in theory. It might work for a market that is a little stable with dips here and there like we have now. But should there be any major surge in price, one might be left behind or forced to buy at a very high price. Let us not forget too soon that Bitcoin can jump thousands of dollars a day. If that happens, someone waiting to buy the dip might miss the major move.

DCA eliminates the chances of missing out even if there is a spike. DCA also make one have feasible expectations and not be emotionally perturbed when the dip is becoming deeper. In other words, imagine buying the dip only to realise that the supposed dip is not actually the dip as price continue going lower... the chances of panic buying as well as running out of cash (which you captured in your comment) is high.

Don't get me wrong, I'm not saying that it's bad because I know that DCA is something that is indeed one of the strategies that can be done and I still agree that it should be sustainable (consistent) with the previous but the point of adjusting what I mean is that when we do DCA in conditions like this then we also have to have a reserve fund that can be used as an optional to buy dips because this can also be done.

This might sound impulsive and a pretty barbaric strategy, but if we can afford to do something like that then why not.
It is not meant to change the DCA that was done before and the DCA still continues to be done, it's just that we can also take advantage of making some new purchases when a decline like this occurs because this would be a shame to miss.

You cannot really know if it too aggressive unless you know his total budget, but I do believe that the numbers are a bit unrealistic, and part of the reason that we talk about $10 per week or $100 per week is to attempt to be somewhat realistic in terms of what kind of budget that people might have.  There surely are some people with higher budgets, but it is probably better to attempt to be more relatable to more people.

I know that even I talk about fuck you status being around $2 million - even though I know that some forum members might well be able to consider something like $200k as fuck you status.  A $2 million investment portfolio should be able to fairly easily draw $6,666 of passive income per month, and so a $200k would ONLY be able to draw $666 per month, and surely there are forum members who consider that to be a totally acceptable amount for both their expectations of a current life style maintenance and even presuming that such amount be able to account for what they expect to be increases in their cost of living too.


For sure, to some extent, I don't have any problem with BTC accumulation approaches that attempt to time the BTC price in such a way to be able to get better BTC prices - however, I do consider that the very newest people in bitcoin should not be attempting to fuck around with trying to time their buys unless they really already have a pretty solid plan that also involves regularly buying no matter what the BTC price.  Sure, once they get to a certain BTC accumulation level then it will become more practical and reasonable for them to try to time the BTC price dips a bit because they already have BTC in the event that they are not able to buy as much as they would like to buy on the dip, if the BTC price ends up going up, they are likely already sufficiently prepared for the BTC price to go up.. and sure, maybe they will end up kicking themselves for failure/refusal to just buy rather than trying to strategize for the next BTC price dip that may or may not end up happening.


It's not guaranteed that the BTC price will dip every single month and even if the BTC prices does end up dipping, it is not guaranteed that the price will be anywhere even close to cheaper than it is now... we sometimes can get periods in which the BTC price might go up 50% or even more than 100%, but then it only dips like 10% or 20% and then goes on another upwards run.  Sure maybe there will be a BIGGER correction later that goes into the 25% to 50% arena, but there is no way to really rely on such a dip taking place, and we cannot know for sure when such dip is going to happen.

If we look at our November 2022 low of $15,479, then we will see that the BTC price had doubled when it reached $31,818 ion July 13, but then our current low correction has ONLY been around 20% down to the current amount of $25,601 - but even with that, there are no guarantees in regards to whether we are going to get further dips, and the BTC price could end up going up to $35k without much if any further dip.. so in any event there can be a decent number of advantages to attempt to prepare for a variety of scenarios that you would be willing to accept without causing you to panic if you ended up overly preparing for a situation that did not end up playing out. 

Also, I understand that it could be quite frustrating for anyone who might be relatively new to BTC and if they might ONLY have $10 per week that they are able to invest, so it could take a while for them to build up a side-pot that allows them to keep some money on the side for BTC price dips, and surely it is easier for the BTC investor (even if newbie) who has $100 per week that s/he is able to invest, but even someone with $100 per week might find that their investment amount is too small and it becomes even smaller if they choose to hold some of it on the side in order to wait for dips, so they still might have to decide from their real world budget regarding how much to buy in a regularly scheduled way, versus holding some aside for dips and then if the BTC price has already dipped whether the already dipped price causes them to tweak how much they are deciding to allocate towards DCA versus buying on dips.

Even with you, SamReomo, you have been registered on the forum for long enough (a little more than 7 year anniversary, congrats)  - maybe even similarly to our fearless OP (Wind_FURY).. and accordingly, even a fairly modest DCA approach of $13 per week over the past 7 years would have gotten you to more than 1 BTC by now with a mere investment of $4,748 - yet at the same time, if you figure out what kind of strategies that you have been employing over the past 7 years, have you been able to significantly/materially beat those kinds of returns  in terms of trying to strategize dips.

So yeah, more aggressive like $130 per week may well have ended up getting you to more than 10 BTC of accumulation, but if you were to have had attempted to employ a BTC accumulation strategy that was beyond your "free cashflow" then you may well have had ended up recking your self. . because you had over done it in terms of how much was available in your own budget.


Yeah, but it is still not necessary to play around with that - unless you have already been accumulating BTC for a while... so in that sense it is not "needed" to take advantage of dips..


Sure, that is called buying on dips, and surely there is nothing wrong with buying on dips, but you run the risk of both running out of money if you keep buying more and more and the BTC price keeps dipping, so as long as you have yourself covered to include preparations for dips that might not happen, then no problem, keep buying on dips and hope that your last reserve is not met too soon.  Another problem is that if you are waiting for dips and holding money in reserves that you want to use to buy BTC, but you are waiting for your price to hit, and if you have not already bought some and you are just waiting for more dip, then you might end up not buying BTC because you were trying to be more greedy than you needed to be in order to suffiicently profit by just making the BTC buy - even if the BTC price may well end up dipping more after you had already stocked up.

I also think that his description of DCA is correct and somewhat really usable at the same time. The DCA works week during the dips because in those events we get the chance to accumulate more amount of Bitcoin with same fiat value. I also think that his DCA is too aggressive because he's spending a lot of money to buy too many Bitcoin in a short period and which is not going to be a good thing for someone who wants to accumulate a lot of Bitcoin. I also think that DCA isn't always needed for accumulation of Bitcoin because sometimes we may buy Bitcoin at higher price value and that's why it's better to divide the amount you have and invest those divided values on times when the price of Bitcoins gets a dip. I know that sounds greedy, but that way you will be able to accumulate a lot more Bitcoin then with the traditional DCA techniques.

If you still want to go with DCA route then I think the best way to allocate the monthly budget for DCA would be to wait for a good dip in price of Bitcoin and continue DCA from the time of the first dip. If you see no dips for a certain amount of time which is unlikely to happen because we all know the volatility of the market and due to which dips can occur at least once in a month. A wise dip purchasing is always needed to accumulate more coins and we can't ignore that fact. The best DCA strategy would be to wait for the DIP and purchase some amount and then wait for another DIP with even more intensity then purchase more coins, I know that won't be called as a true DCA technique but that will help to acquire more Bitcoin for you as an investor. Continue in that way until the process is completed and you have allocated everything that you had kept for DCA purpose. 

I think that your initial description of DCA is correct, and of course, you seem to already recognize that your DCA modifier is not really DCA anymore, but getting into a kind of DCA supplement that may well end up involving a kind of formula for buying on dips.  Those are not bad ideas, but you have to be careful when you continue to add value in terms of making sure that you are not going to run out of money too soon because you were being overly ambitious in terms of buying too many BTC too soon.. but sure the idea is not bad.

Another thing might be to have a certain weekly or monthly budget that would be allocated for DCA, but if you are trying to employ the DCA to happen during the dip of any period that you choose, and if such dip does not happen, then you still end up employing the DCA for that period at the end of the period (after you had given it a chance to see if there might be a dip that allows you to buy a little bit more during the period with the amount of value that you had allocated for that particular DCA buying period).

Your explanation is very accurate and understandable, with the current Bitcoin price movement, nothing is sure for now but one could actually utilize the opportunity because it gives an advantage for people to structure their portfolio in a way that will help them make profit from the dip considering how btc movement is now buying to hold will take a bit time before getting or making profit, so while others waits for the right time to enter the market others sees it as an opportunity to boost their portfolio by scalping the market.

Just like what a friend told me, he said he invested a lot of money on Bitcoin that he plans holding for long and that he structured his portfolio in two ways of investing plan, first one is buy and hold while the other one was for buying and selling, so as Bitcoin price dipps he sees it as an opportunity to trade the market by scalping.

DCA is a good strategy for regular people who aren't pros at investing. It saves a lot of trouble from trying to guess the best times to buy during market ups and downs. It's a way to invest slowly and steadily, which helps stop the urge to make big gains quickly. Professionals or more experienced investors often use DCA when they want to catch price changes. They can automatically make buy and sell orders based on how much the price changes and how much they want to invest. It's like a more advanced version of DCA. For instance, you could set it up so that if the price changes a certain amount, each new investment gets multiplied by 2 or 3 times.

DCA deviation multiplier
DCA #1 = Base Order - 1% = $29,700
DCA #2 = DCA #1 - 1% * 2 = $29,100 (Base order - 3%)
DCA #3 = DCA #2 - 1% * 2 * 2 = $27,900 (Base order - 7%)

DCA order size mulyiplier
DCA #1 = 1,000 USDT = 1,000 USDT
DCA #2 = 1,000 USDT * 2 = 2,000 USDT
DCA #3 = 1,000 USDT * 2 * 2 = 4,000 USDT

I read the whole article and it was super interesting and informative too. The result of that article which I concluded is: Anyone could make transactions, anyone could make blocks, anyone could do mining, blockchain does not care either those transactions or blocks have anything to do with good or bad purpose or use cases. All blockchain's nodes matters is of transactions is invalid then they will not send it to the next 8 peers and if one keep making invalid transactions then that address will be banned automatically to avoid spamming. And same mechanism goes for Blocks. Like people could make only heading or header name for a new block but to proof that either the work has been done or not the Proof of Work (POW) is confirmed by confirming the hash number with special numbers (special numbers that are used in the YT Video included in that article).

If the work is done, then the block is validated by nodes and the data is send to others for validation otherwise if it is invalid then it is not shared in the network. Overall, there is no single entity could judge why the transaction is being made but all that matters here is either the transaction or blocks are validated or following the rules or not if not then they will not be added if yes then they will be added. Please correct me if I took the conclusion wrong here.

I am not sure whether I understand what you are saying Furious 7 - especially since DCE involves ongoing buying at any price, so by definition there wouldn't be any needs to change behaviors merely because of a BTC price dip, and so whatever was the scheduled DCA amount to buy, then that should not change - even though surely anyone exercising consistent DCA by definition, would end up getting more sats for the same number of dollars.

Now if you are doing extra or changing your DCA, then that is not really strict DCA anymore but instead a kind of hybrid that takes advantage of the dip, in the employment of buying on dips practices.


Those sound like the kinds of mistakes that you should be able to learn your way out of, and for sure I understand that they happen because they used to happen with me, and I think that part of the way out of those kinds of mistakes is to create plans that go beyond expectations, and sure you might have to readjust the plans after the BTC price might end up moving close to your limits, so then your expectations would end up changing.

Let's say that you had $1,200 that you had set up for BTC buys, and you set them up as follows:

$27,500 = $400

$26,000 = $400

$23,500 = $200

$22,000 = $200

Those seem to be fairly reasonable placements of orders, even though I probably would spread them out more evenly, and maybe every $500 in equal increments down to $20k or so, and sure that might only leave me with less than $50 per buy order, and even if you go every $1,000, you still run out of money quickly if you ONLY have $1,200 that is available for buying on dips.  Of course, you are going to have cashflow coming in too, so you might be able to add to your buying on dips, but if the dip ends up coming in faster than you expected, then surely, you could end up not having additional money to add to the dip buys.

Maybe you really did not expect any orders below $26k to get filled, so you were not even very serious about those below $26k orders - however, when you saw the BTC price dropping so fast, you started to think that it might be better to pull your $26k buy order because the BTC price drop had been happening in such a ways that seems much more severe than you thought could even be possible... so surely part of your problem may well be that you do not have enough in reserve and you have not structured your buy orders well, and sure you even admit that you may well be trying to be too greedy, which is a kind of sign of gambling and/or being overly invested.. you are likely investing beyond your budget and trying to be overly strategic about your buy orders in such a way that is not even healthy for your own psychology.

You are the ONLY one that can really fix it, and I would suggest that the most logical fix is to either spread out your buy orders more and/or to make them smaller and stop trying to catch the exact bottom because the exact bottom does not likely matter as much as you think it does, even if other people are engaged in those same practices and have those same kinds of gambling style mentalities.


I am not going to deny that sometimes luck does sometimes rescue us from sloppy practices, so for sure, it likely goes without saying that we are both likely to end up making mistakes from time to time and also that the better that we prepare not make mistakes, then we will have systems in place that we are more than willing to live with and to accept.. and also if we have good systems and practices in place, then we are likely in a better position to play around with some other part of our portfolio (and to be sloppy and to even gamble a bit).. and so I would not even proclaim to want to remove anyone from their desires to gamble and to have fun. .but at the same time, we should be attempting to be somewhat purposeful about how large of a position size that we might be putting into any games that we play.

Let's take that same case of the guy with a $1,200 budget for buying on dips, that I described above, and if we already have our system in place, and we think that it is a quite sound system, then if we get an extra $200 that comes into our budget, then we might decide to just fuck around with that $200 because we are already comfortable with our other allocations, but if we realize that our set up is not very good in the first place, we might want to rethink what we have set up, and then to fold the extra $200 into whatever relatively conservative system that we have set up, and not to be playing any games with the new money coming in because we sense that we are not quite in a "game playing" state of affairs until maybe we make sure that we get our buy orders set and situated in better locations and at amounts that are comfortable for us to feel sufficiently prepared.

Yah, you are right though; it really made no much difference buying at $26k to $25.5k, owing to the fact that speculation was even high this month as most people believed that BTC was going to hit $32-$35k this month. I also felt convinced that we could see $32k this month. Like you said, $26k is also a good buy at the dip; perhaps it's a long-term investment and not just a chase for a short-term profit. I bet you are close to having one bitcoin already because 30% is just less than what you already had.


You are right, and I really do agree with you. Although my actions that day were just some kind of reflex action, where I never really gave any deep thought, my mind just said, "Place the order below $26k, and indeed it did work out; perhaps I was just lucky.

This condition can make someone a dilemma in buying bitcoin because they have tried at a certain price such as the example you mentioned at $25k but seeing a possible decline to maish far down sometimes we can have another assumption by being able to buy at a lower price such as $23k which makes the purchase order at $25k doubtful to do.
Things like this can make us actually lose both because there are still some possibilities to go up for example.
I often do stupid things like this because it is precisely with the greed that I have in my brain that I lose momentum and bitcoin has increased after the decline has occurred so for anticipation like this when I set to buy at a certain price for example for $25k when it has happened then I will stay at that number because we cannot determine with certainty the price that will be touched rather than I lose momentum to buy I prefer to buy at the destination I want to buy and re-plan for several other purchases at another time or day by looking back at the possibilities that will occur.

IMO in this case I think we also have to look at the conditions where anything can happen.
DCA is indeed one of the good strategies but when looking at the conditions of the decline that occurred then apart from DCA, We also have to see some momentum from the decline so that it can be used to buy more, for example, we are still consistent every week by buying $10 or $20 when there is a decline, it can also adjust because we will also certainly follow developments and see whether the progress of btc will go back up or down (even though it is only speculative) so in this case while we can do DCA, we will definitely DCA according to the consistency we did before but on the other hand we also have to prepare to catch if possible btc drops lower so that we can get something more.
Because DCA also we have to see the conditions whether something like this can still do DCA or not because if indeed the condition of bitcoin still does not change and even tends to be lower we will certainly have several options in buying dips.

I will not stop but I also have to be able to adjust to other needs, I am not too focused on Bitcoin I have a family and also bills that must be paid this is what must be fulfilled every month but somehow you have to be able to manage well by dividing finances to make it more stable.

This decline may have been bought at yesterday's price of $26K so now I have to raise money again waiting for the next bearish, if nothing then it will go into the weekly DCA category, of course who is not happy with their first 1 BTC? Stay persistent in the investment you believe in especially in the risk but I remain optimistic.

Now in this case, good planning will be seen, I mean for those who have prepared everything they will be ready and immediately buy when the correction occurs, like now. They don't have to think about what to do during the decline, because they will definitely buy back to take advantage of this downward momentum.
For people who are not prepared, they will definitely have a hard time when they want to add to their portfolio. I personally always prepare myself to buy during a downturn like this. And the results can be felt by myself, I just have to determine at what price I want to buy.

This is a comprehensive explanation that I appreciate so much. To be frank, my recent buy is my first time applying DCA and I can feel the advantages already. First, there is this calmness that comes with it, as much of the capital is not committed to the market per time.  Secondly, it enable me to be open minded and see the market from two perspectives either of which is to my advantage. This is a huge relief unlike buying at one level and begin to hope that price does not go deep beyond that level... DCA actually handles the psychological burden of this.

I actually felt good seeing that some portion of my last buys went into profits just within some hours of being filled and even if the market dips further, I still have pending orders to fill. Even though one cannot completely predict the market, I have come to the conclusion that we will not see so much surge in price just now... the market will have to throw some surprises so that there will be people who will miss out om the big move and regret. I'm glad I will not be among them.

I really cannot begrudge anyone who gets excited from being able to stack more sats upon BTC price dips, and you likely are able to imagine how the longer that you might be in bitcoin, then your stack of BTC starts to grow in such a way that you are mostly biased towards up in such ways that you do not really get very many benefits from the BTC price dipping. but you can still structure your BTC portfolio in such a way that you attempt to take some kind of advantages of the price dips in order that you don't completely miss out from such BTC price moves.

Your portfolio could also be on the margins of setting you up for life, but not really setting yourself up for life.

Let me try to illustrate with an example of someone who might be somewhere between where you and I are - in terms of how long that they had been in BTC, so we might imagine a kind of progress that takes place with the more time that you are in bitcoin and the more coins that you likely have been able to accumulate based on arguably having had employed a somewhat aggressive approach to BTC accumulation.

So let's use an example of someone who came into bitcoin right around the top of the 2017 price run-up, so such person first started buying BTC at $17k, and then the BTC price ended up correcting into the sub $10ks, and even spending quite a bit of time in the sub $10ks... so maybe over the past nearly 6 years, such person might have invested around $60k into bitcoin, and maybe acquired around 6 bitcoin..so averaging around $10k per BTC... so maybe this person had come to bitcoin with about $15k already saved up and able to invest into bitcoin, and had a cashflow in which s/he could dedicate around $150 per week towards ongoing BTC purchasing, and if such person has a similar kind of budget now, as what s/he had over the past 6 years, then maybe s/he is still putting somewhere in the ballpark of 1/2 of the available income into DCA (which would be $75 per week), and then letting the other $75 per week build up in such a way to be able to buy more BTC on dips.

At some point there are going to be feelings from such a BTC stacker that the marginal benefits of the dips are not as great as if the BTC price would just go up, so there are feelings that there is not as much benefits from dips - in part because such person had already been stacking sats for nearly 6 years... sure, each time the price dips, s/he could get more BTC, and perhaps at some point, s/he might decide to completely stop with the DCA (or to reduce the DCA to very small amounts) and then to mostly stick with allowing his/her fiat to build up and to use that built up money to buy BTC on dips - and maybe even the dips have to become sufficiently great to even inspire BTC purchases. 

In other words, the larger the BTC stash grows, the harder and harder it becomes to inject large amounts of value into it and even to cause the stack to grow more than a few percentage points... but when the stack is smaller, then surely it is likely easier to cause the BTC stack to grow to higher percentages with lower levels of capital injection.

DCA is profitable and one of the ways this can be proven is what we are seing in this current market, the dip is an investment opportunity for some potential investors while those that have already invested should hold and maintain that because this will soon pass by in a very short time from now.


Both individuals and institutions have seen bitcoin investment as an opportunity they can always take for an investment as long as they can have the required time frame for their investment to mature.

The price at which bitcoin is right now is opportunity to buy more and also for who missed the opportunity to buy when bitcoin was around this amount.  Honestly this is a good time to buy again to hodl because this opportunity can take a while to turn around again. Whenever opportunity comes like this people who can afford to buy should not look down at it because even if bitcoin goes down this period it won't be something too serious because it is not gonna stay down for a longtime.

Bitcoin is currently over 26k$ today, and most of us now buy it for sure, especially those who do DCA in Bitcoin because it's a big deal and opportunity and then just hold it again.

Having extra money in an industry like Bitcoin business is really a winner. But this is the only good way that bitcoin investors should do nothing else and wait only for the arrival of the bull run that those who have holdings of Bitcoin in their wallet addresses are looking forward to.

I understand you very well. My excitement is primarily because the adjustment made me to gain more Bitcoin than I would have had if I had bought at the market price then. Initially I was planning to market execut when price lingered so much around $29400. But adjusting the orders lower in anticipation of a little dip following that discussion made me gain as much as 11% of Bitcoin. This is the reason for my excitement.
Anyways, what matter most at this point is buying Bitcoin within the levels it is as that to me is a wise decision. Bitcoin is heavily under-priced at the moment so any entry point within the zone is fine.