Topic: Buy the DIP, and HODL! - page 46. (Read 121781 times)

If we don't have separate portfolios, it may be better to tend to mix in bitcoin holdings. Our main objective is to try to build a bitcoin stash and DCA is one of the ways to accumulate regardless of value. DCA method is very effective for a beginner investor as observed from my investment experience but a lump sum decision should be made immediately if an investor has enough money.

It is better not to tend to wait for dips as lump buying may be delayed and allocated funds may be spent for some reason. That is why an investor should make a buying decision regardless of the price based on the immediate decision. This can be very positive for increasing bitcoin holdings and holding more by circulating the accumulation cycle.

In fact, if an investor can apply the investment strategy correctly, he can get huge Bitcoin holdings in a short span of time. The right strategy tends to be patient and long-term accumulation.

If you already have a lump sum that is available to you for buying BTC, there is no need to DCA buy with that lump sum. You have complete discretion to determine to buy right away or not or to employ various kinds of deferral strategies to buy on dip or to DCA.. and of course, the DCA could be over a few weeks, which is almost like doing it right away, or the DCA could be drug out for several months or even a year.. depending on how the person felt about the current market situation and also about their own already existing BTC stash and process that they might already have in place.  So for example if the amount was something like $10k, and if the person had ONLY been buying $100 per week in BTC, then that $10k amount is two years worth of DCA... so if he wanted to delay over two years, that would be to double his current DCA from $100 to $200 per week.

Surely there can also be variations in regards to how quickly he might want to get the $10k into BTC and if he wants to keep some value for buying on  dips or not.  The answer is not obvious, even though there are options available for such a person that might not have had been available for a lot of folks who ONLY are able to invest from their regular monthly cashflows.  Don't get me wrong, there are probably a lot more people who get opportunities to lump sum invest, yet they might not even realize that they are having an opportunity to lump sum invest if they don't already have systems in place to buy BTC.  So surely one of the advantage that any regular DCA buyer of BTC will have relates to his already having systems in place for the buying of BTC, so if he ever comes across extra money, he may well consider that extra money as a lump sum BTC buying opportunity rather than just an opportunity to spend it right away on some consumptive good, which many people might not even know what to do when they receive extra money, and they might even subconsciously start considering certain things that they want and they are now able to buy.. even if the thing might not be a very good idea if they were to compare such current consumption with the possibility of buying BTC (which is a kind of deferred consumption that may or may not end up playing out to their advantage, yet if they have a 4-10 year investment time horizon or longer, they might not concern themselves too much with current payoffs as compared with future potential payoffs that might allow them to stop working 1-2 years (or even longer) than they would have had otherwise been able to do. and perhaps their ability to assure they are going to always be able to purchase high quality food, especially in their older years... or to be able to do maintenance on their house after they are no longer earning income from working without having to worry about how much it costs).

I think you should change your mindset, indeed Lump sum is also good but if we apply investment for the long term, isn't it better to buy gradually. If I think gradual purchases can be concluded that we can buy bitcoin at different prices throughout our investment period. You buy at $44k, $45k or depending on the bitcoin price on the day of maturity to buy, that way you have unknowingly bought at every dip that occurs because that is the advantage of DCA.

If you mean to forget about the wallet because you don't want to touch the wallet in the near future then you can buy $5k for a special wallet that you keep the key as well as possible and forget it for the time you want. Well the remaining $5k you can buy via DCA for other wallets so the point I can conclude is that we continue to follow up on bitcoin purchases and that is a great way to increase Bitcoin ownership.

Yeah you are right, your reserved funds should be used for something more important to you, if you use your reserved funds for something which is not on the priority list then it will affect you by leading you to dip hands into your Bitcoin investment, how's that now something that is not in the priority list or important to your life won't cause you any damage or affect you in anyway if you don't handle it, but something that is in your priority list or important to your life will cause you damage or affect you if you don't handle it, you can't abandon something that is of priority to you and have peace of mind but you can abandon something that is not of priority to you and have peace so when you abandon something that is not of priority to you it won't make you dip hands into your Bitcoin investment later on but if you abandon your priority and waste your income you will surely dip hands into your Bitcoin investment to settle the priority in your life one can't shy away from his or her priority in life and that is why we need to make list and know our priorities, reason being that some people don't know there priorities when they are faced with two things and they end up handling what is not a priority and regret later and making them hit a fuck up stage were they now dip hands into there Bitcoin investment.

I think that initially, you need to think in terms of at least having some ability to cover your living expenses for a short period of time if you have loss of income and/or increases in your expenses.  A brand new investor may or may not have had a practice of keeping any kind of cash cushion, yet having the cash cushion becomes more important when investing in a volatile asset, such as bitcoin, since the volatility of bitcoin would likely justify that you would not want to be using it as your emergency and/or back up funds until perhaps it is quite well in profits.. or at least the concept of not using any of your BTC at a time that is not completely of your own choosing, and surely it seems that with some discipline guys should be excluding themselves from using any of their BTC for 4-10 years or longer after any time/amount that they invest into bitcoin.

Surely back up funds have various categories, including emergency funds, reserve funds and float, and so emergency funds seems to be a category that does not have a lot of discretion, at least for someone who might be trying to retain a certain level of preparedness for downfalls of cash and/or increases in expenses that he might have.  The more likely the unsteady income/expenses, then the larger amount of emergency funds will be required.  Reserve funds can still be used in emergencies, yet reserve funds could end up having a variety of purposes that they might be held, so there surely could be a certain level of empowerment in terms of having those kinds of funds available, yet the general idea is that reserve funds would tend to not be working funds and would likely end up suffering from ongoing debasement since being held in fiat, so there is no real high level of logic to want to keep a lot of funds in reserve funds rather than building an investment in bitcoin, except surely there can be some perceived negativity when guys might be concluding that any investment in bitcoin requires a 4-10year or longer lockup, so then there is more short term empowerment with reserve funds, even though the reserve funds are losing value.

So even if there is no real correct answer, I would still consider that there would be importance and priority in regards to wanting to build up the bitcoin stash in order to get to a point of having time in the market, since the money in reserve funds might be preparing you for down in BTC prices, it is not preparing you for UP... which is a quite common phenomena of having a lot of folks who are not really very prepared for UP.. which is part of the rationale behind our currently ongoing wealth redistribution from no coiners to coiners, and the ONLY way to be on the receiving end of our ongoing wealth redistribution is to be in bitcoin rather than being in fiat or whatever other asset you might be into besides bitcoin.


Usually your emergency fund is built up and should never be touched, except for an actual emergency, and so if you otherwise have strong cashflow management, you should rarely, if ever, have any actual  emergency since you have already prepared to use various other funds before even touching your emergency funds. So if your income is $1.7k to $3.2k per month with an average of $2,400 and your expenses are $1,500 to $2,200 per month with an average of $1,800, then you could predict your expenses based on your worse case scenario and attempt to have $6,600 in your emergency fund.. Once you build up your emergency fund then you are not fucking around with it any more unless your expenses might go up or down and then you conclude that you should change the size of it based on changes in your monthly expenses.  Also, if you know in advance that there are certain months that you make more than others or you are expecting that you are going to have to change jobs in 6 months, then with that kind of notice, you already know that you are going to have potential disruptions to your income, so if you lose your income it is not an emergency because you already knew it was coming. Sure there are things that are known and things that are unknown, so you try to attempt to prepare for both, which is part of the rationale for the emergency funds.  

Yeah sure reserve funds can be ear marked for buying BTC on dips, but they also can be ear marked to save for: 1) buying a new car or motorcycle, 2) taking your spouse on a vacation, 3) saving to buy a bicycle (or some other gift for a kid), 3) updating your computer and/or your phone, 4) repair to your kitchen sink and/or plumbing 5) the purchase of some kind of a self-improvement course (which takes both time and money) and/or 6) some various other reasons, and so you know that the money has various different priorities in terms of timeline and/or quantities which are really ONLY going to be known by you..

People are not going to come to the same conclusions regarding how to go about saving for certain kinds of purchases that you might make and if you might choose to spend certain of that potentially discretionary money within the same month or you might have timelines for different expenses that are for certain months in the future that might even be several months down the road, but if you had promised your spouse a trip to some location in February, and you know that it will cost about $1,200, and so you had been saving about $100 per month and you have the amount saved up to $800, right now, you seem to be on track to have enough money saved up by February, but if you fuck up and you end up spending all or most of that saved up money, then you might be forced into a situation in which something like that vacation that was a low and/or medium priority ends up getting pushed up to a higher priority status.  ..and perhaps you have to take money from some other area, and hopefully you do not have to tap into your bitcoin based on you poor planning.

Also it could be the case that a car, motorcycle, computer,  phone self-improvement course might end up improving your productivity and/or your income, so you might have a list of items that you want to purchase, yet you focus on one of them at a time in the order of their priority rather than holding reserve funds for all of them at the same time.

That's very wrong because there is no way you will be able to accumulate the total amount of Bitcoin you have planned on having in the future at a time, though I can see that you don't understand so much about Lum sum strategy because you sre thinking that those who make use of Lum sum will no longer use the DCA because they have acquired all the amount of Bitcoin they had on there goal, actually that's totally false because what Lump sum stands for on your investment is that if at the process you are DCAing and you were privileged to have more extra funds you can use it to fasting up your investment by accumulating it at ones without allowing to intrude on your weekly DCA.

However I think is from the way you must have been going through your investment that makes you feel that there a mental stress on accumulating Bitcoin on a regular basis because the only thing that involves is having or setting a weekly amount to be accumulating on weekly and there nothing hard about it, perhaps you are just being too lazy on your Bitcoin investment that makes you want to be looking for a means to stop using DCA.

Usually I use such strategy as an investment method. I don't know how everyone else views this approach. But I always plan something new and try to implement it. I always try to keep reserve fund stronger than investment fund, you can say reserve fund is more important to me than investment fund. The reason I can say is that I am giving more security to my investment by giving more importance to reserve fund.

I usually divide my income by 3 to the amount left over after meeting the needs. I keep 1 part of 3 to investment fund and remaining 2 part to reserve fund. I am aggressive in investing while keeping the reserve fund in 2 again with 1 part reserved for emergency fund and the remaining 1 part bitcoin dip. That is, if I invest $100 a month in normal times (not including my investment amount for safety), I invest more than that when bitcoin dips. This amount is determined on my reserve fund. It is almost impossible to predict when Bitcoin will take a dive. So when Bitcoin takes a dive I watch my reserve fund and keep the money in the emergency fund and divide the remaining money by 5 and invest it with DCA. That is, my monthly DCA is $100, if I have $1,000 in the sinking fund, then $500 in emergency funds and $500 in aggressive investment. So 500 divided by 5 is $100. So for the next 5 months at the time of dip, I DCA $100+$100=$200. In this way, 1 out of 3 is investment and 2 is reserve fund. But one thing is to be noted, the money deposited for the emergency fund at the time of sinking is not added to the reserve fund again. That is, the first time when we divide the reserve fund into 2 parts and save 1 part for the emergency moment, later we form the reserve fund again. For example, in the first year the reserve fund is $1,000 to $500 for emergencies and $500 for being aggressive. Next year, keep the same reserve fund, $1000 to $500 for emergencies, $500 to be aggressive in investing. That means after 2 years the emergency fund will be $1000 and I used $1000 to be aggressive in investing. Such an approach may not be acceptable to many, but personally I have had success with this strategy so far.

There is no need to study bitcoin in any kind of depth prior to getting started investing into it, perhaps beyond just considering that bitcoin has decently good chances to go up in the next 4-10 years or more.  The other thing for the investor to study is a mere conclusion about whether he has any disposable income or not, which he should already be able to assess whether he has an extra $10 or $100 or $1k or whatever might be his initial investment amount, and so from there on out if he starts to buy bitcoin on a weekly basis, he can get his cashflow management in order, which sometimes can take a while to get into a solid and strong place, and he can study various aspects of bitcoin at the same time.


I agree with you here.  There are so many folks who are overly excited about $100k.  Sure, it is a nice round number, yet at the same time, it remains quite overrated as some kind of a stopping point or some target that is really meaningful in the whole scheme of things.


That is not true.   Lump sum does not have to be employed on the dip.  If you believe that lump sum has to be employed on the dip, then you don't seem to know what lump buying is or how it differs from buying on the dip.

Sure, you can choose to allocate some lump sum for buying on the dip, yet there are disadvantages to any waiting strategy in terms of how much of a dip you are wanting to get and/or how long you might want to wait for such possible dip that may or may not end up coming.

Whether you employ buying on the dip or not with the lump sum that you have available may also depend upon how much BTC you have already been accumulating.  If you are brand new to bitcoin and you have no bitcoin, then you would likely consider the matter differently as compared with someone who might have had been involved in buying bitcoin for more than 3 years.

And even with you, laijsica, potentially you have been involved buying bitcoin for 7-8 months (based on your forum registration date), you might not be advantaged by waiting for a dip versus just buying right away if you wre to have a lump sum amount of fiat come available to you.

Let's say that either a brand new person to bitcoin or you, suddenly came across $6k that he could completely authorize to invest into bitcoin.  What is that newbie bitcoin going to do with that money in terms of how to accumulate bitcoin?  What are you going to do?  You have three categories to consider, which is DCA, lump sum and buying on dip.  Sure, you can combine them, yet they are still three separate categories to consider, and the answer is not obvious since there are advantages and disadvantages to each of the three BTC buying methods. Maybe if someone is confused, then as a default starting point, he might consider to divide the money into three equal amounts $2k to each of the methods... yet surely his own particular circumstances may well make a difference, such as if either he had already been buying $100 per week in BTC in a DCA way and/or if he plans to continue such already existing $100 per week DCA strategy, the considerations of how to treat the extra $6k should be considered within such context, but also within the context of considering all of the guy's 9 factors.


At least it seems that you understand the three methods, even though you seems to be conceptually mixing them up at the same time.


That is a fair assessment if you already are within a dip and you receive the extra money.. yet if you are not in a dip, then lump sum buying would include deciding whether to buy right away or if it is worth it to wait for the dip with such money, and of course, you do not necessarily need to allocate the full amount to whatever decision you end up making.


I would say that you are correct in the sense that if a guy has strong cashflow management systems in place, which would include having sufficient levels of back up funds, then he is in a stronger position to invest more aggressively into bitcoin with any potential extra income that he gets currently or in the future.  If his cashflow management and backup funds are not in a good position, then it well could be a good idea to use some of any current or future discretionary income (whether regular salary or some lump sum amounts that he might receive) to put his back up funds into a better position, and sure, since money is divisible, he can build his back up funds and his bitcoin holdings at the same time... so then once his back up funds are built to a sufficiently stronger place, then he would be able to invest into bitcoin more aggressively from thereafter with his future income or any income he has coming in... of course, the discretionary portion of the income (the part that is beyond what is needed for his expenses).


By definition, lump sum allows buying right away, so whether that is held in order to buy on dips, then that would cause it to be buying on dip deferral, or it could be deferred to buy in a DCA kind of way.. but yeah, if it is used to buy right away, then that becomes an option too, whenever anyone might receive a large quantity of cash that might not have had otherwise been available.

In terms of investment, lump sum investments may be useful for an investor when the market is down and he has excess money supply at that time. Waiting for a dip in the market to make a lump sum investment seems nothing but foolish to me. Because we can't say anything accurate about the market as cryptomarkets are associated with volatility. If we have cash, why should we wait for dips and stop investing regularly? If we have a guaranteed source of income for investment, we will be ready to buy immediately, and even focus on buying bitcoins in any market situation.

So that Bitcoins are constantly accumulating and growing in our investment portfolio. Investors simply waiting for dips to invest can hinder their investment. As we have seen the top bitcoin holders in the world never wait for a dip in the market they do not hesitate to buy bitcoins whenever they have cash flow. Their only goal is to buy bitcoins at any price and increase their bitcoin investment or bitcoin holdings.

When it comes to buying Bitcoin using the lump sum strategy there's no right time those that use lump sum strategy don't wait for any dip or time if you are waiting for a dip or any right time then what you are doing at that time is not lump sum anymore, in lump sum strategy when you decide to buy using lump sum strategy you don't care if there's a dip or good market condition you just accumulate and hold and that is what lump sum is all about.
All strategy is good, it all depends on a person I know of a big business man he said he does not have time to be accumulate Bitcoin week or monthly because he has other business his run and may even forget to accumulate some weeks or month if he uses DCA strategy because of his busy schedules that lump sum strategy is better for him, So everyone should do what works for him or her.
And you saying lump sum strategy is boring is not correct anyone who has other business he or she is running won't see it as being boring don't generalize something base on your own perspective.

You are misunderstanding lump sum buying with buying at the dip. You don't need to wait for bitcoin price to dip before you can lump sum. Lump sum means buying right away no matter the price of bitcoin at that moment. For example, if I am DCAing with $100 every week and it happens that I got extra cash like $500 that I am not expecting and will not be needing at all for my expenses since I don't expect to it or work for it. Maybe, it was given to me by my Boss for motivation at work, if I buy bitcoin right away with $400 or all the $500 is what is called lump sum.

If you keep the money till bitcoin price dips before buying, you are buying at the dip. What if the dip did not come, it means that you will still be keeping the $500 waiting for the dip. I hope that you can see the difference now. Lump sum is good for you to mix it with your ongoing DCA buying in order for your bitcoin investment to grow faster.

The method of buying in large quantities at once requires the right time such as market conditions in a Bearish phase and a large amount of money. For me, this method is very boring because it takes a long time to wait for the market to correct. However, DCA offers a solution without causing problems, investors can invest at any time with any amount without having to be tied to market value. This method allows investors to accumulate Bitcoin at an average price over the long term, while also avoiding the stress of trying to predict volatile market price movements.

Yes in terms of investment lump sum investment can be very useful for an investor if he has excess money supply but he has to choose the right time to do it like dips price trend. If you don't get suitable bearish then you can start depositing bitcoins with DCA method and if you get low price of bitcoins during deposits regularly then lump sum buy may be more useful for you to get more holding in less time.

I think a typical Bitcoin investor would tend to buy in bulk when the price dips while staying with the DCA method. Although it totally depends on his financial capability. By having a backup fund for invested assets and managing it for the long term you can get a lot of bitcoin holdings. Lump sum buy for assets such as Bitcoin allow an investor to acquire larger holdings over a short period of time.

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No need? But there is! We can't be uneducated fools who merely HODLing Bitcoin. Although, it's true that Bitcoin to six digits is "programmed", but we need to research, READ, be informed.

Plus to those doubters who believe that $100,000 will be front-run by "traders" is laughable. Bitcoin has been accumulating between $50,000 and $75,000 and the doubters expect a surge of merely under 30%?

¯\_(ツ)_/¯

Well lump summing is or can be one of the fastest way to accumulate more Bitcoin but if you must lump sum you must be financially stable to an extent else one will tamper or disturb his investment when it's not yet mature. No one is imposing any strategy to anyone rather they are discussing the safest way a newbie should follow if at all they want to invest in Bitcoin and people who are discussing these are people who has experience and have seen how it works and remember information is power, if you are not informed  you may choose the wrong path and at the end one start panicking so why not save yourself that... By utilizing the information that is been shared.

Though everyone is entitled to it's opinion if it goes in line with the direction to which a good lesson or purpose of this thread is been created "Promocodeudo" I some much agree with you towards this correction because for me even if other method of accumulating Bitcoin exist I don't think it can helpful as compare to the DCA method mostly in terms of newbies having great access to. Accumulate as the DCA method gives Bitcoin is not just a cent token or coin that one can easily accumulate you really one really need method like this DCA with allowed any category of person to access the investment as it create opportunity to any level, else it's not easy to because many fear towards the investment on Bitcoin is not on the volatility but they are not financially competent but this method of DCA help the investor with Small income to rationalize it income and still have access to invest as the small  fraction and accumulating on regular basis can still usher the investor opportunity of making it huge with time. Anything contrary to this method is completely shading away newbie which can't afford huge amount to invest on Bitcoin DCA is through definition of the saying slow steady win the raise I don't think there is any method that favor newbies more that this very method of DCA mean while is not just newbies the DCA is for all classes of investor.

If no one is comparing strategies here what are we actually doing here, @JayJuanGee has never frowned at any other Bitcoin investment strategy but he continuously mention DCA method because he knows that this strayegy allows everyone to buy at anytime conveniently with what the can afford and maintain instead of waiting for the dip as you have always said, lets put the the record straight since we are all learning, if there is any other strategy that every bitcoiner can use to acummulate Bitcoin thats better than DCA method i think is time for you to tell us, you said we have a lot of them, I think it will be better for you to mention them so that we can learn from you, sometimes I don't even understand your points, I believe bitcoin is a long-term asset, are you advising people to buy only when the price dips, if that's the case what's they need for DCA itself, i think you are the one misrepresenting this undeniable facts, yea whatsoever strategy you chose to work with I think is your choce but say things the way it should be to avoid passing the wrong information to newbies.

Am very happy you acknowledge the fact that Bitcoin is a good asset, don't you think that's the reason why @JayJuanGee like to lay more emphasis on DCA method as a good strategy to use in accumulating Bitcoin at all time irrespective of the price knowing fully well that having a bulky portfolio and hodling for a long-term is the goal, investing might be more detailed than we read online as you said but does DCA method have different meaning than the one we know, was DCA method introduced for investors to apply it only on a better price as you mentioned,I think your are passing a wrong idea to newbies here although I understand that everyone has there mathod of investment and no one can change that because is their choice but it will be better for us to give investment advise that's worth emulating by intending and existing investors.

No need to divide it, if you have $10k which you want to use to invest in Bitcoin using lump sum strategy you just buy with it at once that is what lump sum is all about and then you hold, some people after accumulating Bitcoin using the lump sum strategy at a point they even forget they have a Bitcoin investment and they usually hold there Bitcoin for a very long term.
I'm not saying DCA is not a good strategy is a very good strategy and that is what I'm using now because I don't have the capital for a lump sum strategy, however no body should try impose any strategy on anyone especially the newbies we should learn to discuss all strategy and let people make there choice.
Lump sum or DCA is a nice strategy and anyone we use let's make sure we are holding.

I think it's better to divide it into several stages if you have $10k. Buy $3k with Lump sum and another $3k you can put at a low price and $4k you can apply with the DCA strategy.
Especially if you plan to invest for the long term, of course DCA is better to apply.
I think you don't understand how DCA works because if you have applied it, you probably won't turn to other strategies.
I have been running routine investments for almost 2 years, DCA has always been my mainstay and in fact it is quite comfortable for me.

If you are still in the early stages of Bitcoin accumulation, I suggest buying normally, I mean you don't need to move aggressively before you are really ready to do it. Buying aggressively is also supported by strong finances at that time and if you don't have an increase in income at that time, of course it is better to buy as usual like the previous stage accumulation, for example $20, of course you just continue each stage with $20.

Exactly, We can`t actually tell the price bitcoin going to end with in this bullrun, and this bullrun kinda unique compare to the previous , And  base on how things is going this bullish market will be one of the best so far because each day bitcoin is getting more adoption.

And the painful part is that alot of people that are going to miss such wonderful opportunity in bitcoin , Due to doubting and procrastinating. hope at the end we will be among those that is going to endup smiling after seeing bitcoin price surging