Topic: Buy the DIP, and HODL! - page 433. (Read 123271 times)

As the market is showing signs of bullishness, the quick sellers are already in panic mode and preparing to sell. They will most likely miss the big moves that is likely coming if everything goes as in previous years where halving is close.

Unlike the short term sellers, those who buy and hold for long will be more aggressive now knowing that there is a possibility that the market will be shifting upwards and never to come back any time soon.

Those of us using the DCA method are not disturbed my the recent market rise, no panic whatsoever, just buying and following the plans.

You are right by saying buying at the dip and hodling for two circles and above is a good way to make profit. But you should also consider not buying at the dip alone, since you plan to hodli you should come up with a buying strategy that will enable you accumulate and increase your bitcoin portfolio with the three method, which are lump sum, buying at dip and the DCA strategy. These three strategies when well planned and prepared for, will make you increase your bitcoin rapidly compare to when you are using only the dip method to accumulate you bitcoin portfolio. If you are working, you can always use 10% of your income for regular DCA and when you have some bonuses and some extra funds from office, you can save them to buy at the dip because you don't know when the dip will come. Also if you have some allowances from your place of work, like travelling allowance when you are sent to represent your company, transportation allowances and some training allowance. You can put all your allowance together and use it to buy bitcoin once as lump sum. You will see how fast your bitcoin allowance will increase.

There is this funds that as workers in my place of work, 3% from your salary is being deducted to kept for each staffs, till the end of the year before it will be sum up and given to you with your Christmas bonus, so that the money will be of high amount, so that let it be that at the end of the year apart from your monthly pay, you still have a reasonable amount of money gotten from the company that will be more than enough to sustain you till after the festive period. Such money can be use for lump sum buying while you are still DCAing regularly. This is the plan that I have in mind, when I get my Christmas bous this year to buy bitcoin once, since it isn't part of my monthly income.

Riginac111, you can look at JJG's explanation below..
I will love to be the guy with hypothetical 3. Because it is very clear that he is far ahead of the other two who used only one method to accumulate bitcoin, and he increased his bitcoin portfolio significantly.

Buying shitcoin is not investing because an investment needs to take a very long time before you can get a good profit from it while the investment is still ongoing. Shitcoins is for people who because of greed and think they can get rich quick  but unknown to them that they are gambling with their funds, and it is not for investing or seen as an investment.

Those who panic to sell when you looked at it you will know that they basically belong  to short term investors and short-term investors they are only after to gain and they don't want to take chances of losing, sometimes they regret their actions base on they sell their coins without target. And I believe they sell under durance because they are not sure of the market also have short sight of the market.

That is why they do sell on pressure, if you don't know of bitcoin investment you will be scared of the market and you be panic to sell out your bitcoin so that bearish market will not take advantages of you, sometimes when you want to invest in bitcoin we should not be scared of getting loss of the investment, because we can't predict the features of bitcoin, but concentrate on how to learn and understand the features behind the market so that we will not buy dip and sell when the price go more deeper.

Panic sellers, in my view, are individuals who sell because they're afraid of potential price drops. This behavior can be quite negative, as some people sell simply to minimize their losses. On the other hand, when someone decides to sell a portion of their holdings, I consider it a reasonable decision, a way to reward themselves. However, it should align with their overall investment strategy, and not be an impulsive move.

From the very beginning, we should be well aware that Bitcoin experiences price surges during bull runs. Such situations are not new, and we should already have a strategy in place.

For me, investing for the long term and selling when I see some profit is acceptable. I have no trouble with that, as I have a portion of my investment earmarked for long-term purposes. This part of my investment could either yield significant returns or face losses, but the likelihood of Bitcoin failing is rather slim. While altcoins may be more volatile, Bitcoin generally tends to endure, making us feel like we're on the winning side, despite the inherent risks.

You have a unique way of mapping out the pattern of investment, you have really done well for yourself with the effort you put on your investment diversification and just like you said you have 20 years of investment, perhaps it will be very easy for an investor with such portfolio to meet any targeted amounts of Bitcoin you want to accumulate using lump sum, for example if the normal accumulation target was for 10 years to get some amounts of Bitcoin using DCA, perhaps you can lump sum to reduce the targeted years because of the price fluctuations so by buying at ones will be the best, so Having a diversified investment with a good portfolio is what every investors would wish for because you can easily meet your targeted amounts of Bitcoin needed in a space of time and could also help you to have an investment to fall back on if the other one fails.

Actually this thread always talk about the measures on how everyone including the beginers who doesn't have much idea on Bitcoin to navigate to other accumulation pattern that would be best suitable for them using DCA method and with plans of holding it for long.  perhaps one of the reasons why we are emphasizing on holding for long is that considering how volatile the Bitcoin market is a good profit is likely to only be seen in the future if you hold instead of chasing the price which could result you of lost of funds

But however it depends on every individual to do what they feel is right for them in times of accumulation and holding, of course just like you said even after hearing all the strategies and possibility of what the Bitcoin price will become in the future most persons will still panic if seeing the price peak up and could be tempted to sell.

But however those people that sees every slightest price peak of Bitcoin and decided to sell some of there holdings are perhaps not a holdlers but could be reffer as panic sellers who is uncertain about the Bitcoin future and decided to take some profits.

You can invest in bitcoin with parts of your receivable income when you have the confidence with bitcoin and invest and forget about the investment to run for long-term,  their is something we tell people, investment of Bitcoin is something of do and die affairs but something of plan and budget, that is why old investors do says that we should invest what we can afford to lose and also not being desperate and greedy in bitcoin investment.

To accumulate your bitcoin  does not necessarily mean that you will have timing like buying in dip, actually its nice to buy in dip, but let us know too well that theirs a risk involve in investment generally not being specific in one particular investment schedule, but in bitcoin  don't expect that in any of your investment you definitely make profit, I no that necessity of investment is to make a profit...but we have microscope  the investment knowing that  when we invest we should know that we need to have a patients during the investment and especially when our investment is of long-term, but some people invest without having such interior mindset.

When we already know and also understand the cycle of bitcoin, then the next step we have to do is buy and be patient. Because there are some people who know the potential of bitcoin, but they don't have enough patience in holding it, and what happens then they will regret it when they see the increase in bitcoin in the next few years. We must have a mentality like that, because it's not funny to regret something when we know what will happen next. It can be said to be a regret that has been predicted before.
Now I only demand of myself not to be the one who regrets later on caused by something that we already know what the end will be like.

A small amount of money from your source of income can be invested in the DCA method of Bitcoin. Because the DCA technique can be used as one of the strategies to consolidate resources. Because according to this strategy your wealth will accumulate and your wealth will grow and if the price of Bitcoin increases in the future, the more wealth you accumulate, the more you will grow. So you can get guidance from here as per DCA method chart from any direction. Using unique methods you may face losses, but using DCA method is much less risky and gives better results. This approach is certainly reasonable.

Do you really think others think of what you do or what you think maybe your general overview about bitcoin progression? This why most people doesn't care about their investment plans but rather what they think of is their profits as they want to utilize and maximized the profiting aspect of it rather than keep holding for a long term, even though most people here keeps yelling about the hodl hold we know that at the back when the price became much eyes appealing they might got tempteyand push out some of the fractions they felt is worth disposing at the cost of profit booking or profits utilizations.

Yet we can't questions their choice of action and options since that is the real reason and motives they got associated with bitcoin, but yet are lacking the vision to know that holding for decades is where they would derived extremely joyous or profits but are subjected to have it coming slow as present of gift or kind of patients to watch while their increase and profits are being numerating as a subject of change in their capacity to hold for decades because that is their oversight overview of the future without having the long time projections towards their investments.

Even if you decides to present a whole lot of btc to such people or person they can be still tempted to disposal it at the cost of little changes to the difference in dollars while still are holding same values in btc, since 1.1btc still remains 1.1btc but has been subjected to change in dollars value which at present could worth $33k plus but can not bear the watching while draining gradually in dollars, that is why most people do not care how much units of bitcoin they are holding rather dollars equivalent are being driven to forcefully disposed their bitcoin at cheaper rate at the cost of profit booking or maximisation.

I fully agree with you. The more you accumulate the better it gets. If you see historical DCA chart for Bitcoin then best results are generated if you accumulate for 4 years or more. We can say that the more you HODL then better the results will be. Of course we don't know whats lies in the future but the historical price chart gives us an idea about what strategy we can adopt. As a beginner your first job is to understand the market and start your accumulation cycle.    

It is normal for a long-term investment portfolio to have a large amount of Bitcoin investments, but it is unusual for a deep investment portfolio to have a low Bitcoin investment. When long-term investments are mentioned, the name Bitcoin comes up naturally. Now we understand Bitcoin as a long term investment. No one would prefer any coin other than Bitcoin for long-term investment. I have a long term investment plan of my own portfolio where I invest 90% in Bitcoin and the remaining 10% in some other coin in the market. Honestly I am trusting only Bitcoin and rest 10% invested in other coins I don't trust that investment but I have bought some coins to build portfolio. I believe the portfolio I have built around Bitcoin in the long term is the right decision for me and I will get a lot out of the investment because I believe the longer the investment is held in Bitcoin the more likely it is to succeed.

Another thing that I would like to suggest, just to supplement my earlier point, is that I was not a brand new investor when I came to bitcoin since when I got into bitcoin, I already had more than 20 years investing and building my investment portfolio, so likely the ONLY reason that I could pretty much establish my BTC position in a few years is because I already had a pretty well established and diversified investment portfolio.

And, it can still be confusing regarding what to do or whether and/or how to tweak one's approach, even when a person has already build up his/her overall investment portfolio to add something as volatile as bitcoin into the mix... so any person needs to attempt to best account for where s/he is at in his/her investment journey and then presumptively if we are in this thread, we are building the bitcoin portion of our investment portfolio, and sure some people do not have other assets when the come to bitcoin, so their approach may well be a bit different from someone who has other assets, yet there may well still be some similar principles including trying to determine how aggressively to accumulate bitcoin without putting one's self into a position that s/he is at a lot of risk of getting reckt, because then that is no longer investing, but instead gambling.


We are not talking about those short-term strategies of buying low and selling high here, even though surely if you accumulate BTC for long enough, you likely will end up getting into a position in which you have options to sell some or all of your bitcoin, and if bitcoin is a life journey then there would be no need to completely sell your bitcoin, until maybe when you believe that you are at end of life and you don't really have much if any inheritance plan.


Even if you reframed it as "profit booking" we are still not talking about that here in this thread.  If you have a long term plan of buying BTC, then it likely is not going to matter if you continuously bought even at tops, because maybe some of the shorter term folks might have 4-10 years, but some of the longer term folks might have 15, 20, 30 or 40 years in which they are either accumulating and/or maybe getting int maintenance stage that either leads to liquidation or maybe when in maintenance stage for a while, then shaving off bitcoin here and there becomes one of the options and the person is not getting distracted by dollar nonsense of "booking profits" because all of his coins are profitable..

and yeah some of the BTC are more profitable than others, but why would it matter if s/he is shaving off 0.000001 BTC at a time when BTC prices might be in the 7 to 8 digit territory and most of his coins were gotten in the 4 digits and the lower 5 digits territory....and so maybe even some might end up getting sold in 6 digits rather than 7 or 8 digits, but still when we are looking at potential for magnitudes of BTC price moves within the timelines of some of the current BTC accumulators, why would s/he want to screw up his/her whole BTC accumulation by fucking around with taking profits in dollars when the whole weight of value may well end up hinging upon accumulating BTC and not running out of them too soon.

Exactly and I personally think this is where experience and understanding will function in navigating the market well and knowing about the market. If we can combine all the elements that are considered important, even though there are also friends here who still use other different strategies.

Sleeping well is necessary. With the DCA technique users can also minimize the impact of drastic changes in the market without worrying too much about sudden price changes. BTC is a valuable asset.     

Hmm, there's a point that is mostly overlooked by the newbies / beginners while accumulating Bitcoins, after doing basic research when they prepare their DCA plan and start accumulating after spending a portion of time in the market they realize the profit booking and re-entering (Buying) the market on a particular price range, most likely they can get trapped by the market whales and such action leads in capitulation, I had suffered it on my initial time.


I think everyone considers the fact that the market structure can't be predicted but still, we can speculate some price range using the On-chain activity & market sentiments with that being said as I've said be a multiple strategy adopter if you can understand the market, You're already doing DCA and you've already targeted your goal and timeline of accumulation. Now as a smarter one prepare some backup as well, if you're doing DCA with X amount at least a small % of additional funds in stable currency to make entries in the Volatile dumping market. No one is recommending anything here we just discussing all possible ways.

DCA fits perfectly for everyone but now from start to end you don't need to just be dependent on the DCA only, customize your strategy of accumulation with your market understandings and experiences in the market like Hybrid DCA.

I agree with you @Jay people are easily distracted when it comes to shitcoins, they don't even consider the risk associated on shitcoins and in most cases shitcoins are being manipulated by social media influencers because they uses some strategies of bringing a false rumors about a particular shitcoins and before you no the price will skyrocket and they made there profit and in few hours or days it drops way more than the previous low and leaving the investors hanging with there investment.

So understanding all these things I don't no why most people will still choose to invest on shitcoins, or maybe perhaps just like you said @Jay maybe they see shitcoins as a get rich quick that's why most persons chose it.

Most of the investors both new and old always targets buying DIP and most in bitcoin and hold to make profit when they arises to sell, and what is the target of someone who buy dip is to sell when their is a bullrun and this has being the method of people right from time, but recently some people don't think of such strategies of buying DIP and hold for long-term, what they are interested is making profits whereas they have no applications  to make a profit during their investment.

The thing is that buying when the price is low and sell when the price is high has being possible tactics for most of the investors why their is every possibility that you can buy in dip and expect it to increase and it happens to be going more DIP, so let us not only hope for one strategies of accumulating our bitcoin, let us device other means of accumulating our bitcoins because sometimes predictions do fail and we don't have anyone to be blame when it happens.

I agree with your opinion that long-term investment requires patience and a level of foresight for those in accumulating Bitcoin. like the current situation where we have to adjust a larger budget to be able to collect 1 Bitcoin and that is of course very different from the history of those of your who bought it in 2014, 2015 and 2016 because at that time the price of Bitcoin was quite cheap and lucky for those who bought in large quantities big at that time.

Even so, we still stick to our respective positions because if we want to have some BTC in our portfolio, maybe we have to be diligent in buying every dip that occurs. DCA is one of the best strategies for long-term investment and can be applied in various situations. I mean if we miss one or two stages, we can cover the gap by buying aggressively in the next stage.

Sure there is a bit of a problem with a lump sum investor who fails to take further action, even if making lump sum investment at a relatively good price and not doing anything because his her BTC are mostly in profits after the time that she he bought.

For example, take the Hypothetical 1, lump sum buyer who bought 21 BTC in 2015 for $6,300  (average cost of $300 per BTC)

Right now he would have right around $603k .. not bad, right?

And compare that person to hypothetical 2 who bought $100 per week starting in June 2015, and he would have spent nearly $44k and accumulated 26.2471 BTC (worth about $753k and an average cost of $1,676).

or compare him to hypothetical 3 who might have lump summed into bitcoin and continued to buy $100 per week
and he would have spent right around $50,300 ($44k + $6,300) and accumulated 47.26471 BTC (21 + 26.2471) (worth about $1.36 million and an average cost of $1,064).
 
Which one would you rather be?

I think that the person who ongoingly invests into bitcoin is not ongly going to be better off financially and psychologically, s/he is going to be more actively paying attention to his/her BTC investment, but of course, people are free to do whatever they like.


Agreed, and part of the reason that it can be good to employ multiple strategies and have contingency plans.  It does not make buying in lump sums bad, but it seems that supplementing with either buying on dips and/or DCAing can cause the lump sum buying to become even more profitable than what it would have been, including that maybe the lump sum investing had also allowed a decent amount of front-loading of the investment that would not have been accomplished through either a DCA and/or a buying on dip approach.


You are correct Agbamoni that sometimes members are calling what they are doing by the wrong labels, so it might be a bit unclear regarding what they mean exactly, and I am not even suggesting that a person needs to strictly follow any particular strategy, but it still is good to know the difference between each of them in order to attempt to better understand what you are doing and if you might want to change your strategy, or supplement it with other methods... but sometimes you might think that you are buying on dip, but you keep buying regularly which is a form of DCA, and then you think that since you are using your bonus money, then it is kind of like lump sum because it is not part of your regular cashflow, and surely all of that makes sense, but it can be confusing when people categorize their behavior as if it was purely falling into one of the categories when it really is a kind of hybrid.


You had me all the way, until I got to your last sentence.... and selling is not a necessary basic technique.. especially for beginners and maybe even folks who have been in bitcoin for less than 2 full cycles.

Buying once is also a very good method but the strategy is bias in the sense that it only favours those that are rich and have big capital to invest into bitcoin at a go. This method has a lot of advantages and a few disadvantages which are negligible. In its advantage; you’ll get to buy bitcoin as much as you can with that much capital you wish to invest into it, if the price goes up soon in the future and doesn’t come down again till bull run, you have accumulated a lot and the person using DCA won’t have such amount as you’ve earned with the same amount you invested in it initially. Unless they continue their DCA method to beat your total number of bitcoin held in the portfolio which will cost them more.

And the only disadvantage of it is that, when the price goes down and a person using DCA was able to accumulate more at that price, they would be able to buy more bitcoin than you in the long run since they’ll still continue employing the DCA strategy until they reach their target. They would spend lesser than you to get the amount of bitcoin you hold or even more than the one you hold in your portfolio. Buying once and the DCA method are all good but you just have to employ the one that works for you more, without having to touch the savings because 1BTC will still remain 1BTC until you take out of it.


This is a very wrong mindset to have when you want to invest in bitcoin. No one can predict the market structure, so it’s not advisable to keep hoping for a particular price before you can start your investment in bitcoin. While waiting for that price, you might have missed the opportunity to buy at the lowest price you’ll get it. This was why the DCA method was introduced and it has been a good way to accumulate a lot of bitcoin for investors in the market. If you check this strategy, it works for all class of people and not limitless to people that can use it. So, instead of waiting for the DIP, take the first step and start your investment now.