Topic: Buy the DIP, and HODL! - page 438. (Read 123271 times)

Investing in Bitcoin will definitely involve risk, which you must remember at the beginning of the investment and have the ability to accept the risk. I would like to say that (many eggs should not be kept in one place) so if you invest Bitcoins in a few wallets (multiple wallets) then the risk will be very low. And you will save a lot by investing because investing in DCA method will definitely improve your investment strategy. It is better to hold for long term and invest in DCA method from right time. Because you can invest the extra money you save on your expenses. Keep your portfolio in a safe place when it is big after investing for a long time.

That sounds ideal, but when we say 'newbie,' we're referring to those who aren't very knowledgeable about the market. So, it's unlikely that they can make themselves profitable by taking advantage of market volatility. There may be a few who manage to be profitable, but I suggest that for newcomers, they should keep things simple, and that is to buy and hold.

That's the right thing to do. You can never trust people, even if they present themselves as experts. But when these individuals suggest investing in Bitcoin, I think it's a no-brainer because it's likely to provide long-term profits. The easiest investment strategy is to HODL; no more experts are needed this way. Whether we like it or not, Bitcoin will always have its bull seasons, although they are not so predictable. Just like the current situation, if we continue to hear bullish news and predictions, it could potentially drive the market into a bull season, and achieving an ATH is likely. It's just a simple cycle. To ensure a profit, buy during the bear market and sell during the bull run.

When it comes to a volatile asset like Bitcoin there is no certainty of event, so there cant be guarantee in it investments no matter what the value or it performance may be in the market,  alot need to be handled and at that we should not make the mistake of categorizing Bitcoin in the level of stable investment and if we should make such mistake then it means that there have not been proper understanding of the subject matters as regards to bitcoin and bitcoin investment,  and to a good extent, we should rely more on the long term instead of the short term Bitcoin price speculations, this is also very important in the area of Bitcoin market evaluation both for long term and short term positions.


So to that extent, we must have to design two principles in Bitcoin.

1:  the principle of long-term bitcoin investment perspective, this must have to do with a 5-year market cycle in perspectives.

2: is the short-term market speculation approach,  this mostly has to do with the use of the DCA tool to take advantage of the Bitcoin market conditions and the many advantages of the volatility innthe Bitcoin market.

The idea of the DCA is very vital to every bitcoin traders as they can easily have full access to their money. Like for instance if an investor makes $2000 then he now invest like like $1200 to purchase bitcoin at the end of day he's still gonna have some amount of money left with him to sort out other needs that he might require so that it will not affect the amount they invested to purchase bitcoins

Yeah one good thing about Bitcoin accumulation is that in as much as knowledge is concerned and very important it doesn't necessarily mean that a beginner most be very rooted in knowledge about Bitcoin before starting to accumulate but however what a beginner only needs is a basic knowledge about Bitcoin in other to start accumulation because I believe that since the focus is for holding we shouldn't dwell on having so much knowledge before accumulating because I don't think is too necessary.

And just like you said a beginner shouldn't focus too much on the profit making instead the target should just be on the accumulating process because having a profit making mindset at the beginning could affect you if realized the Bitcoin is not moving on the direction that favours you.

^^ Yes, in short don't overthink or over complicated things when we are a beginning. Sure there are learning curves here, but if you are a newbie and really just wanted to be a regular investor, or if you have some kind of experience prior other assets like stocks, then you might have a idea already. But initially though, we need to be technically incline, like setting up wallet, creating account on exchanges that for some, might be cumbersome in figuring it out. So we might as well just make it simple in ourselves, DCA might be the best user friendly strategy that can we used, or maybe do some twist to fit our budget. But the main goal is still to accumulate and buy equal amounts every time and in the long run, you can amass BTC. And maybe that's the time that you want to make your BTC more secure, like having hardware wallet, learn a thing or two on security hygiene etc. So again, just remember the design principle, - KISS (Keep it Simple Stupid).

It seems to me that DCA is the best in terms of practicality - especially since a considerably large number of folks (perhaps even an overwhelming majority) don't even have any kind of lump sum investment funds available to them to even have that option, and even if they did, they might be better off to figure out some kind of strategy to spread out their investment rather than putting it in all at once.


I frequently tell people that it would be good to think of their BTC investment in terms of 4-10 years or longer, so in that regard, if someone starts a DCA strategy that s/he is intending to invest $100 per week (which would be $5,200 per year) for the next 4-10 years, then they are still building their investment with each time that they buy some more BTC... so there might be some point in which they either say that they invested enough or that they might start to think that the could increase their investment to $200 per week or reduce it to $50 per week.

And if they get a bonus payment from their work of another $5k, they might consider whether and how they are going to invest that into BTC, and their decision might well depend upon where they are at in their BTC accumulation journey.


Hopefully, it is ultimately a balance, and some people really enjoy certain kinds of activities, even nerdy ones, so it is not like it would necessarily be an all or nothing approach, yet at the same time, when someone is brand new to bitcoin, it may well be a lot better for them to attempt to employ a system that does not take up a lot of time.. because they likely would have already spent  some time just figuring out their bitcoin sourcing... maybe setting up accounts to buy bitcoin... and maybe they have one or two jobs that take a lot of their time and a family and maybe some other stuff that they either like or feel obligated to do... so then at some point they might be weighing how much time they are able to spend to study certain aspects or to try to determine if the BTC price is dipping, why it is dipping and if it is going to continue to dip.. which after they do the whole assessment, then they might still end up being wrong. .so then there could be some value to just being a lot more modest in their approach and so then something like DCA could end up building up a decent amount of BTC over 4-10 years without even giving too much thought to it.. and maybe just reading about some BIGGER areas, or listening to podcasts, but not really getting into particulars of trying to predict if the BTC price is going up or down in the short-term.. which surely can be time consuming and even adding some unnecessary stresses.

Actually in this case I don't really like using the DCA Calculator or any instrument to measure the possibility that happens if we invest because in my opinion this will only be an excuse in our limitations and expectations which sometimes backfire on ourselves.
It should be understood that other instruments such as DCA calculators are only a condition where we only roughly calculate what happens if we do DCA from the past but of course we also have to be realistic that calculating things that we certainly cannot grasp will only make your hopes come to naught.
Even though it is not wrong to do that but in the end I think when we want to do DCA with a reflection of the DCA calculator that reflects on the past, it could be a condition where you are only fixated on the past but do not want to welcome the future because there will definitely be a lot of differences that occur from what will be projected by the DCA calculator with the reality faced.

The first step and also the initial planning is always one that is very important, especially for those beginners who may still be confused about where to start and in what way they should start to accumulate bitcoin. And honestly here I get a lot of what I need related to my bitcoin accumulation and what steps I should do next, exchanging ideas by discussing to produce solutions or ways that can make it easier is my goal here, and of course there are really developments that I get and I'm sure some people who participate in discussions and see some suggestions here will definitely get new things that can help their bitcoin accumulation, of course it will be easier.

Well learning the basics will certainly be a support for your bitcoin accumulation at the beginning, looking for more effective and easy ways when you want to buy than you think about how you will sell. Sometimes if you are new to bitcoin you don't need to think too much about your profits later, or how big your profits will be, the time is still very long and bitcoin is still very promising for the next few years. So it's better to find or build the best plan for the first step, considering the various ways you can already assess which one is more effective to do. You don't have to worry about whether you will succeed in making a profit or not in the future, but look at how bitcoin has developed in recent years, I think it is enough to make you more confident that there is something very big that you can get in the future if your bitcoin accumulation goes well and also of course with a very good plan to buy and HODL. The point is not to worry because if you are serious about learning then you will be able to develop over time and you will not be confused when you want to make profitable sales in the future.

I do agree that DCA is the best way to gather Bitcoin. There is no doubt that its adopted by many people for accumulating Bitcoin over a period of time. Gathering Bitcoin at one price is not the best way to accumulate Bitcoin.
I will go back and see my mistake in inferring DCA. Thanks for correcting me.


Its not necessary that at the time you stop accumulating in DCA manner you are getting good profit on your total investment. In that case one may stop further accumulation and wait for price to go up. There is no way we can guarantee that what Bitcoin price will be about 6 months after. So we must keep all options open if you are investing in Bitcoin. 


So its better to go for DCA since its reliable or less risky compared to other available strategies. You are right that it will take considerable time to read charts or follow other things. Time is most precious thing and we must spend it in most enjoyable way.
Spend time on things that give you good return. Its useless to run after things that take too much of our time.

Yes, the concept of selling at first I also thought about it even before I bought bitcoin, but after a long time I explored bitcoin investment, it gave me a lot of knowledge. If you think about it now, it's funny, how do I think about when to sell when I haven't even bought yet. But it was a very valuable experience for me and made me a better investor.
Different from what I thought at the beginning, now I think more about how I can make a bigger allocation than usual. That is, I started to think about a side job to make my income bigger than the fixed income I get.
Honestly, when I started to recognize bitcoin and invest in it, it made me more diligent than before. I don't know what, but I feel that there are different things, and the good thing is that the different things that come to me are positive things.

Bitcoin is in global demand and currently the price of Bitcoin is almost too low due to which the number of investors on this coin is increasing.But there are many big investors who are investing in Bitcoin.But there are many greedy individuals who are investing in this coin as the price of Bitcoin is currently low.But what will they do when the price of these coins falls further.

sourec

Large Bitcoin investors are storing Bitcoins in wallets to make their Bitcoin long-term holdings. More than 76 percent of bitcoins are held by large holders and they have increased security, including preparing wallets to store bitcoins. A report dated October 14, 2023 revealed that Bitcoin whales(16 new whales account joined the bitcoin crowded) are increasing activity among themselves to hold Bitcoins. According to reports, the number of Bitcoin whales who have 100 Bitcoins to 1000 Bitcoins in their wallets has increased relatively this year compared to other years. So from the long-term holding thinking of Bitcoin whales and small holders, it follows that there is no alternative to holding.

I think that it bears repeating that even if someone were to invest $10 per week for 4-10 years and then feel that s/he had reached his/her accumulation goal, at that time the transition would not be to just cash out and say "I made it; I have more options, now."  Instead the transition would more likely go into some kind of a maintenance stage that might involve less investing and then maybe even cashing out some from time to time.. so the maintenance stage could last a decently long time, depending on a person's age, and once the person reaches such maintenance stage, s/he can devise strategies around spending bitcoin from time to time and perhaps strategies that might involve regularly cashing out 1-4% of his her BTC stash per year at various times, and the amount cashed out may well depend on BTC price performance. 

Once a person reaches such stage, the size of the stash and various other personal particulars will help to dictate various ways to deal with the stash and to enjoy the fruits of having more options.. and surely maybe even spending 4-10 years building the BTC stash might start to already show that options are increasing along the way, and changes to the amount invested could be tailored in order to account for how the changes in options are playing out.


You make a lot of good points in your post Riginac111 - however there were several points in which you seemed to have had messed up the quotes, and there were at least two places that I was reading my own words, even though they appeared as if they were your words... so that is a mistake that comes from messing up the quotes.

Sometimes with quotes, we want to try to quote smaller portions of the earlier post in order that we make sure that the quotes come out correctly, and I know that I will sometimes also quote long sections of someone else's post - especially if I might be commenting on the whole thing... but in any case, my point is that sometimes it gets confusing if the quotes get mixed up, then it can become unclear which part you said and which part someone else said.. and even who said what?


Whoaza MusaPk...   You should be careful in the way that you describe that DCA calculator.

It is not showing you results that you can expect to get, but instead it is showing you results that you would have had gotten if you had DCA'ed in the way that you input into the various fields that are contained therein.

So surely past results are likely not going to be the greatest in terms of projecting what might happen in the future.. so we need to be careful in terms of describing past results in that kind of a way.

Don't get me wrong.. DCA is likely amongst the best, if not the best method to accumulate BTC for an overwhelmingly large number of normies, and BTC is likely among the best, if not the best, asset to be investing into, especially if you have a 4-10 year time horizon or longer and you tailor your BTC investment approach and level of aggressiveness in accumulating it to your personal and/or psychological circumstances.


That's true.  You can see how effective that DCA has been in the past, and hypothesize how effective it can be in the future, including how effective it is likely to be in the future, but you cannot guarantee that it will be effective.  One of the greatest of underlying presumptions in regards to DCA working out is that the BTC price needs to ultimately go up to prices that are higher than your average price per BTC by the time you sell them, but it is not guaranteed to go up, even though many of us recognize bitcoin as a very strong and/or solid bet based on a variety of factors, including its ongoing building of network effects due to its strengths as the most sound of money that the world has ever witnessed, and to have been accomplished in a digital manner which brings many additional features of portability, divisibility, ongoing verifiability, etc.


Sure.  It is possible to customize DCA in a variety of ways that may well help to cause the BTC investment to be less risky from a personal approach because it is tailored to the circumstances of the individual to account for each of the individual factors.. but merely attempting to make a strategy less risky will not always result in less risk because sometimes people make mistakes in regards to either their attempts at timing and also in terms of their position size.. so mostly when we are attempting to consider the trade-offs of less risk we also are likely attempting to account for a variety of other factors that may well also include considering how much time that we are spending to employ such strategies, is our information better as compared to just employing a more blind and regular strategy.. .might we be spending our time in other useful and enjoyable ways and maybe even increasing our cashflow so that we might merely be able to buy more bitcoin on a regular basis rather than fucking around with studying charts and maybe not even getting our calculations correctly when we could have used our 1 month worth of time to earn an extra $1k or $2k and then use most if not all of that extra money to buy bitcoin directly on a regular basis without spending so much time trying to figure out short term moves and getting them wrong 30-60% of time time.


Sure.  But I doubt that you and I are saying the same thing when referring to what are the "basics" that a person might need to know when first starting to invest into bitcoin.

I mostly suggest to people to get the fuck started buying bitcoin and start as soon as possible, even if you might only start with a small amount such as $10 per week when you could easily afford $100 per week... so in that regard, I am saying getting started is more important than trying to figure everything out and then learn along the way.. and so the basics are getting your finances in order in terms of your cashflow and figuring out how much extra that you can have in terms of buying bitcoin. 

Sure, it is likely to at least have enough confidence that buying bitcoin is going to be good for the long run, but you likely do not need to know a lot about bitcoin in the beginning in order to get the fuck started investing into it, and probably the less that you know, then the smaller position size that you are going to take in the very beginning while you are hopefully learning about it, and if you are able to study and learn quickly maybe you will take 1-2 months to move your position size up from $10 per week and up to $100 per week, but if you don't have a lot of time to study bitcoin, it could take you one or two years to get your shit together in order to increase your investment size up from $10 per week to $100 per week.

So each person is responsible for themselves in terms of how much time they are able to put into studying and figuring out bitcoin, and surely I understand that there are a large number of people in the world who are ongoingly struggling to keep their daily lives going so they do not have a lot of extra time in order to study and figure out bitcoin, so it is more difficult to suggest what they might consider doing to try to improve their knowledge and/or their cashflow so that they are able to buy a bit of bitcoin and to maybe be able to spend time learning about bitcoin in their free time to the extent to which they might have any free time.

I am still not suggesting delaying in getting started in bitcoin, but there still are likely circumstances in which normies have to juggle a variety of their issues in their daily life to dedicate some time to learning and/or scrambling to get a bit of extra cash that they can put into it... and do these things simultaneously while getting started and adjusting their position size and approach to their level of understanding of various basics related to themselves (most important) and basics related to bitcoin.. such as how to get it and how to store it ..even though in the very beginning they might use a third party.. while they are figuring out various other storage options that might be available to them and even later down the road to get into more and more self-custody.. presumptively the longer that they are in the more value that they would presumptively accumulate in bitcoin.


That sounds like a lot and maybe even unrealistic.  Most people are not able to save/invest/set aside 40% of their income.


We are not really talking about selling in this thread.  We are mostly talking about various ways to accumulate bitcoin by buying and HODLing rather than selling.  Better to start with the basics first, which is figuring out ways to buy, and surely if you might have had run out of money, from time to time, then maybe in those cases you might HODL through the situation.  Otherwise, it is probably best for the newest of BTC investors to constantly be considering ways to buy bitcoin. and don't even be worrying about selling.. especially in the beginning.  Now if you have been into bitcoin for a while and you learn about bitcoin then maybe you can develop more advance techniques that involve selling, but that surely is not the basic thrust (and topical discussion) of this thread.


You (Taskford) still seem to be talking about techniques involving position size and psychology... and frequently psychology can be managed through position size ... which surely starts from learning about yourself rather than getting caught up upon the various particulars about bitcoin.

Don't get me wrong, I have no objections towards normie newbies spending time learning about what they are investing into in order to develop more and more conviction.. but at the same time, some of the earliest things that they likely need to know merely has to do with how much extra money that they might have to be able to buy bitcoin, so they may well spend a lot of time, just setting up accounts and/or finding connections regarding where to buy bitcoin.. which is also going to vary quite a bit based on geographical location.

Some greedy people only think about making huge profits from bitcoin. But they won't be ready for what happens to bitcoin before its price rises. Even when the price falls further, they will not be ready because they do not have a strong hand in holding bitcoin. And when they have lost, they will turn away from bitcoin, hate it, and leave it. After all, it is their own fault for not wanting to learn more about investing in bitcoin.

Even when I share in your enthusiasm of Bitcoin soaring above the ATH by 2024 to 2025, I still think it is safer to keep our expectations in check to avoid taking greed-motivated irrational decisions. Another danger of putting a timeline when you expect the price to peak is that you might end up selling all your asset in the time period when the price would have hit your projected peak. Even though this is a logical plan but it could harm the portfolio for those who plan to hold for long.

So, always keep open mind as nothing is guaranteed in the market. The price can soar like you said and there are possibilities of price not experiencing an explosive move like many of us are expecting. If you out this into consideration, you will not be pressured to take take rash decision now or in the future... you manage your Bitcoin portfolio calmly while also living the life you so desire for yourself.

Since you already know about how good the DCA method is, I will encourage you to continue to apply it while allowing the market and time unveil what the future holds for all of us who believe in and trust Bitcoin.

If they are greedy enough to think about big profits without even learning on what they are entering then their investment to bitcoin will be their worse experience since imagine if bearish run comes unto them and they don't know on what next action they need to do so once they lose in terms of losing its value for sure they will end up hating bitcoin for that reasons. That's the main reason that we should really need to learn more bitcoin and its usage or purpose they called so that we are fully ready to deal with the risk involve.

I'm also sure with doing all necessary measure we can make sure that we are ready to hodl since we already know how to settle up on our investment then start to aim for long term bullish trend that will possibly happen in future.

I agree on the fact that there are significant reasons why you need to learn some basics of investment before investing in Bitcoin. Because it is important to holding on during the dips when everyone else is panicking.

Yes your right, its good to hear everyone's opinion, but listen to no one. In some articles i read its best you always draw your own conclusion especially when their opinions contradict yours. For me I choose to allocate 20% weekly to emergency fund and 20% to my investment just by Dcaing, I know its not such of a good amount though but its has helped me accumulate some amount of Bitcoin.

Not every time I do agree with strangers or so-called bitcoin investment experts. At the end of the day the only person who understands your investing decisions either to hold, sell during the two sides of the market level is yours especially when you see others panicking. But if you decide to listen to other opinion its not a bad idea but it should be for the best.

@bitterguy28, I think the input Jay gave will be very important for you. So that in the future you will be able to differentiate between the terms Crypto and Bitcoin because this mistake will put you in doubt about the true meaning. Crypto has a million different types of contrasts with the purpose of Bitcoin, therefore it is important to note that word placement plays an important role in describing what you want to convey in this thread.

In this context, it needs to be looked at more deeply considering that many beginners who fall in love with Bitcoin investment no longer see the risks. Even though this is considered normal, I have also experienced conditions like that so that I put all my funds into it without having any calculations in investing. In essence, even though Bitcoin has indeed become quite promising and proven, as an investment asset, those of us who see it as an opportunity must still uphold investment principles and remain realistic. Investing in Bitcoin will not have a positive impact if the person does not learn the basics such as the main purpose of Bitcoin. For me personally, the most important foundation is to fully understand what we have for the long term. Because if funds are involved, it means you can't just follow trends.