Topic: Buy the DIP, and HODL! - page 447. (Read 136454 times)

I agree with you that holding Bitcoin for years will not prevent the price of Bitcoin from not falling, but hodling Bitcoin for years will play an important role in your Bitcoin hodling because there will be a time when Bitcoin price will never fall below $50k, and if you are still hodling your Bitcoin till that time you will not have to buy Bitcoin on a high price. But if you sell your Bitcoin before that time and you want to buy it again, you will have to spend a good fortune before you can accumulate a reasonable quantity of Bitcoin because the price of Bitcoin will be excessively high.

You're right, I've heard stories like this, it happened to me too. Bitcoin is currently the most popular cryptocurrency. Those who get the first idea of ​​Bitcoin, become interested in investing in Bitcoin. I first heard about Bitcoin from a friend of mine. After gaining knowledge on Bitcoin, I became very interested in investing in Bitcoin. I didn't have any job then, I was doing tuition along with my studies. I was worried about how to invest in Bitcoin. But I saved money from tuition and invested in Bitcoin. I felt happy when I was able to invest in Bitcoin.

Many people become interested in investing in bitcoins without making an income. Before actually investing in Bitcoin, it is always better to find a source of income. Many say invest what you can afford to lose. So after family expenses from your income, if some amount of money is better to invest in bitcoins in DCA method. But it is best to invest in different sectors not only in Bitcoin. Which I am currently investing some amount of my income in bitcoins and also investing in different sectors. Even if my entire Bitcoin investment were to suffer a loss, I would not be financially broke.

There are many new members who are very interested in investing in Bitcoin but they don't have enough money to invest so they can't invest in Bitcoin. Even if there is no money to invest, many manage money to invest in different ways. I've heard stories of investors who sold their bicycles and invested in bitcoins, others saved tuition fees or semester money and invested in bitcoins instead of paying for tours.  
Those who invest in bitcoins, rather than saving money for their tuition fees, saving semester money, and fulfilling their hobby, have enough faith and trust in their investment.  

Now maybe a guy is investing in Bitcoin instead of buying a bike with money that he could have bought a bike with and plans to hold that investment deep. Now he may not be able to fulfill it all for a while but in the future when he will get a big profit from his investment but he will be able to buy a super bike instead of a bike.  

Patience is very important in investing, a small sacrifice should be accepted temporarily if the future is likely to be good. If an investor plans to hold the investment deep, I don't think he should wait for the market to go down, because deep investing will continue to do so.

Altcoins are always risky especially for long-term investments. Because in my opinion FTX, Luna Coin etc. have completely disappeared from the market, this is the biggest proof that AltCoin is definitely a risky investment.

Investing in Bitcoin allows you to invest freely because the investment depends on you. It is best to hold the amount of money you buy Bitcoin for a long time. Investing in Bitcoin will reduce your risk because it is a trusted coin, which has been in the market for a long time and its high momentum attracts investors the most.

I doubt that you are wrong about anything that you are saying, yet at the same time you are describing matters a bit strange in terms of possible rules that might apply regarding what any person might choose to do, when s/he is actually under full discretion to do whatever s/he wants to do including trying to follow strict forms of DCA or to tailor some kinds of DCA to his/her own circumstances, and or to bounce between Lump sum investing, buying on dips, DCA and HODL.

So some of us might suggest: Why don't you just stick with DCA until you get to a certain amount of BTC that represents a whole year of your salary/ yearly expenses, and then rethink the matter after that?  Others might say that is too strict, and maybe just follow DCA for a whole year and then rethink that matter after that.  Others might consider that they are not going to feel good  to employ DCA because they had injected a lump sums at four points of their BTC investment journey (1) right at the beginning of their getting into BTC, 2) 3 months after DCAing  3) 9 months into the investment and then 4) 15 months after starting the investment journey. 

So in that case, the person may have been DCAing the whole time, but also influenced by the DCA choices, and was motivated to set up some funds for buying on dips... or maybe to modify the amounts that the were DCA'ing in order to save 1/3 of their available cash to hold aside for buying on dips and the other 2/3 would be put towards DCA.  Maybe I would just suggest that if you had used some word choices about best practices in regards to certain kinds of ways of combining different strategies, then you might have been better off than saying that there were rules, but even the idea of best practices kind of suggests that deviating from the supposed best practices would be deviating from rules. .

...and so maybe changing the language would really save you from the better ways of not really suggesting that anyone has to follow rules in order to do things right, but surely we might criticize anyone's approach if they call something DCA that really is not DCA because it is buying on dip or maybe structuring buys in ways that are within a kind of price prediction framework which might still kind of be DCA but seems to be a kind of buying on dip framework, which is not necessarily a bad thing.. including the slippery slopes that guys might end up getting into in terms of reducing their DCA by more and more and more as the BTC price goes up and then maybe they start to think about selling instead of buying, which may or may not be a good idea, but surely we would suggest that is both deviating from DCA but also taking buying on dip to another level that devolves into trading and maybe some other less preferable practices, even though again people can do whatever they like in the end, even though maybe some of us here are might be suggesting that they are not really even following better accumulation strategies, even though they might end up getting lucky and timing their sell and their buy back in such a way that does not end up screwing up their system.. so there are degrees, and probably many of us would still lecture those people for setting a bad example.. even though they can do what they want..


That would be a good example of choosing not to overly prepare for buying on dips, since holding some money aside might be considered as a means to prepare for buying on dips, and surely sometimes, we might be considering how much do we want to hold for buying on dips, and so at some point, for example, we might tell our selves that based on our own particulars, it is o.k. to have $600 set aside for buying on dips because "I already have it set for certain price points", but then maybe if the buying on the dip fund ends up getting up to $1k, then that is too much to be holding in reserves, so I am not going to wait for a dip for all of that, and I am going to spend $300 of it within the next two week to buy BTC and the other $100 I will just let that amount float in a kind of in-between (or a flexible) status.

It's wise counsel for anyone considering selling all of their bitcoin to hold off on doing so by keeping some. However consider this, someone might decide to sell all of their bitcoin at a high price at once and wait for a bear market to occur when the price of bitcoin drops, at which point they could buy some bitcoin to hodl until the next bull run starts.

All of us, however, have our own strategies for accumulating and selling our bitcoin holdings whenever it is appropriate for us. It's not a guarantee that hodling bitcoin for years will prevent its price from falling to a point where it's affordable to purchase during a bear market since the bear market serves as an opportunity to buy bitcoin at a low price.

Sometimes people don't understand what Bitcoin is and they don't learn to understand it. If they are truly involved in Bitcoin, of course they will invest in Bitcoin. Op has provided an overview of continuing to accumulate Bitcoin and hold them. And that's why we have to look at the long-term prospects of Bitcoin investment. Over the last few years Bitcoin has grown quite strongly with mass adoption and with a limited supply it will provide a fact that when buyers increase and holders increase then the price will rise significantly. So for that moment we have to prepare ourselves by buying on dips and holding in the long term.

Many people regret delaying purchases because sometimes they think prices will fall again but in reality prices continue to rise when compared with prices at the end of last year and today prices. Bitcoin in June or July was under $30k and stayed there for quite a long time and that's why we have to take advantage of the situation to buy regularly. And at today price Bitcoin is trading at $37k that's a quick profit if you have to measure quickly.

Only few traders make profit from trading and moreover this thread is a bitcoin accumulation thread and not trading because trading can't be taken as a full-time job. Beginners and low coiners don't need to think about trading but how to increase their bitcoin portfolio to their bitcoin target through regular DCA.

You might be right, but I see them as similar thing because no one can predict bitcoin price movement accurately and trading is very complex. Most people hump into trading without understanding a dime of it as same with gambling because they fill that they can make quick profit from them. They both have high risks.

This is the reason why you are only to invest with only the amount that you can afford to lose to eliminate the fear in you. Also using DCA strategy will lower the risk of investing.

The dip is not going to affect the bitcoin in your wallet, but it will only affect the value of bitcoin because 1btc = 1btc.
This is why you should take advantage of the dip and buy in discount price so that when the value of bitcoin increases, it will favor you.

Have you ever thought that no matter how high the price of bitcoin is there are always people that are ready to buy bitcoin, if not nobody will buy bitcoin at ATH and how will those people that love selling will sell, if there is no buy. Apart from profit you should also see that bitcoin is an hedge to inflation and a store of value. Maybe this is also worth buying bitcoin at any price level instead of leaving your funds in fiat for it to depreciate.

Because you don't like it doesn't mean that it is not effective. As a matter of fact, any investor using these three strategies will be able to accumulate more bitcoin than someone using only one accumulation strategy. It will also give you a better experience on how to tweak with the market base on your present cash inflow and your bitcoin portfolio size. A beginner can start with DCA method of accumulation but after 2yrs he can change to other methods, it is good to change tactics of buying.

Yep, I like hearing that and I agree that you understand very well how much loss someone will have who chooses to keep their budget in the bank. I haven't kept fiat in the bank for too long, it was a bad idea for me.

Buying dip and dca is an option, that's because you can buy a lump sum on the dip. No matter how disciplined you are in your investment strategy, the point is to buy and hold until your target is achieved. I buy dip and dca on many occasions, but I also buy lump sums in certain circumstances such as when bitcoin gets a dump of more than 10%. It's just a rare opportunity that you need to take advantage of in investing.

What I noticed is that some people don't invest in Bitcoin at all, either because they don't have the money to invest at that moment when the price is still low or because they don't fully have knowledge about investing in Bitcoin. Whoever is experienced in the Bitcoin space would know that even with the current price of Bitcoin, it's a low price compared to the previous ATH of Bitcoin in the last bull market, and now is the time that we are again matching close to the Bitcoin halving season, which will likely give rise to a bull market. No one can accurately be sure if the price of Bitcoin will dip below the current price, and that's why when you hear, "Buy the dip," you should buy the very dip you are seeing at that moment. Even if you are hoping to see a very low price, you can still use DCA to buy some fractions, so that if the price doesn't drop further, you will not get disappointed.

You are very correct on this. The DCA method can be combined with buying the dip to give fantastic results. There is no harm in trying something new as long as it is aimed at accumulating more Bitcoin in a more efficient way. I am not ignoring the discipline that the DCA method requires. Buying the dip while still doing the DCA method does not violate any of the rules or requirements of each of them.

Base on your comment, I will also device means of adding to my holding before the end of the year because the prices is not showing any sign of slowing down soon. Like you said, when the fund is there, what is the essence of keeping it in the bank!

At the end, this boils down to what one is comfortable with and this makes the argument not a big deal. But truth be told, the comparison and arguments has enable many people to see beyond what they knew before by using points raised by others and their experiences to compare the advantages and disadvantages of the various methods.

When I learnt about the DCA method, I fell in love with it and started applying it until I realised I have not gotten the quantity of Bitcoin I planned getting before the end of this year. The DCA method may help but I feel as we move towards the end of the year, prices might begin to rise and this will reduce the quantity of Bitcoin I could get. By asking myself what will be the essence of holding the money when I could just put it in when I see a decent price. So I made some adjustment which is buying more using instant buy while still maintaining my DCA amount even up to this moment. This change of style was inspired by a discussion here where some people confirm that they were combining the DCA method and buying the dip. So I tried it and it worked for me.

There is a situation where you will find yourself, the need to divide your money into three equal parts in other to accumulate Bitcoin will be needed. For instance, if you want to buy Bitcoin at $36k, and the current price of Bitcoin is $40k, and all of a sudden the price of Bitcoin moves to $46k, instead of you waiting for the price to dip to $36k so that you can buy it. If you have enough money you can divide it into three equal parts so that you can use it for a lump sum buy, buy when there is a dip in Bitcoin price, and buy with the DCA strategy. Buying Bitcoin with these three strategies will help you not to miss out on Bitcoin because you are waiting to buy Bitcoin at a lower price.

Your right because irrespective of our normal discussion about buying the Dip and Holding plus the DCA strategy what matters is the ability to buy Bitcoin because dip, holding and DCA are all intertwine, they all work together, so however those method and strategies are just stated as a guideline that give us the benefits of of seeing the method of investment in diverse ways that could help us adapt to any ways of accumulation of bitcoin in any particular situation or circumstances without being affected on the process.

So just like what you said, the most important is what you feel is okay for you in times of accumulation of Bitcoin through the use of the above strategies as guidelines on our investment journey.

It's obviously because Bitcoin has clearly achieved what central bankers struggle to do with fiat money. They discourage Bitcoin ownership to conceal their inability to safeguard people's funds. Bitcoin's perceived threat lies in its operation outside traditional financial systems, challenging established authorities and raising concerns about financial stability and regulatory control.

Certainly, if your approach to acquiring Bitcoin involves Dollar-Cost Averaging (DCA) or any other method, the crucial aspect is the ability to withstand market dynamics for the long term. It's not merely about the method of acquisition but, more importantly, about the commitment to hodl through market fluctuations. Deviating from this commitment may lead one to transition from the realm of a long-term hodler, with a steadfast vision, into the category of a short-term hodler or trader. Success in the realm of a Bitcoiner often hinges on the resilience to adhere to a long-term perspective despite the continuous volatility of the market.

The topic has become a debate of buy the DIP vs. DCA, but it won't truly matter what you "must do". You just do what you want to do or what you're comfortable doing. Plus how you buy will never be as important as what you do after it, which is HODL. If you can't HODL and have a low time preference for Bitcoin, then you have already failed.

Ask yourself, why are central bankers offended by the existence of Bitcoin like it's a declaration of war against them? I honestly don't know why, but if they really hate it and discourage people from owning it, then it's probably doing something right.

If you understand correctly what I have explained, maybe you can take the right points. I mean if someone divides their funds into three categories Lump sum, Buy on dips and DCA of course they will not have difficulty under any circumstances because they can make purchases in accumulating Bitcoin. Buying regularly by applying DCA is a good choice when the market is sideway and when it turns bullish we can take advantage of the decline by increasing purchases a little more aggressively.

In the long term process of course we have many opportunities to buy on dips and do DCA and what we need to do is maintain our financial balance and accumulate purchases consistently. For that reason, I also agree with you that delaying purchases is not a very good thing because someone who delays purchases usually has deep doubts that prices will change faster than what he expected.

For me, I don't think there is any need to divide the money for investment into 3, because if you want to invest in an investment, you should put in mind that you are about to risk what you can afford to lose. But if, by any means, you know that you don't want to lose anything in an investment, then there is no need for you to invest.

Also, it is not a must to buy the dip, so I don't think there should be any need to wait for the dip before you can buy Bitcoin. As I don't really think that Bitcoin will drop back below $34k or more, so for me, I would say it is good to buy now (most people will say buy now or never) as Bitcoin is an opportunity that investors should take good advantage of, I don't see any reasons why they should wait for the dip before they buy.

Talking about the DCA, yeah, it's good to apply the DCAing strategy to Bitcoin investment by investing the little money you can after your all of your expenses and all the rest weekly, even if it's $10 per week and constantly do so for 4 to 10 years, as you have said (so, as we have 52 weeks in a year, let's multiply 52×10 (which is 10 years)=520, so it is still not UpTo $1000k).

However, as time goes on, within 4 to 10 years, the investor my get more money, so he might try to increase his investment rate (maybe $50 or $100 weekly).

From what I have read so far from historical data available on bitcoin performance each cycle, I observed that bitcoin keeps setting a new ATH. And mind you these previous ATH where once speculations, there will always be speculation about new ATH of bitcoin. Like the last ATH that was achieved during the last circle does not stop people from buying and holding bitcoin. People will continually buy bitcoin as there is always anticipation of a new ATH. No one can confidently say this is the Maximum ATH that bitcoin will attain.