Topic: Buy the DIP, and HODL! - page 468. (Read 123166 times)

I am not even sure if I am just doing me because I am trying to suggest a kind of variance of bitcoin accumulation methods that would depend on the individual situation, and you seem to get so caught up on price predictions, that your technique seems to devolve into gambling if it were applied to everyone.. and yeah you have the luxury of having had been accumulating bitcoin since 2016, so you can wait and still be prepared for Up, while someone without any kind of meaningful BTC accumulation may well need to consider ongoing accumulating of bitcoin rather than waiting around for BTC prices that might not end up happening.. and that results in failure to invest as much as he should have had invested.

I cannot tell anyone when they start to have the luxury of being able to wait, and surely I have not really been employing any kind of strict DCA since early 2017, and maybe I even stopped in early 2016.. It sometimes can be difficult to figure out exactly what any  of us might be doing when we employ a variety of techniques and sometimes trying to figure out whether any new money is coming in or not... which surely I ended up feeling that I had to bring some new money in between about June 2022 and January 2023 based on the then BTC price dips that went way beyond expectations... so in that sense, I suppose that I am contradicting my own statements about not employing DCA since 2017, since I brought new money into my budget in between June 2022 and January 2023 and placed that value into buying on dip slots.. so that might not even be characterized as DCA since it was plugged into dip values even though it was new fiat coming in to support the then shortages of fiat in my bitcoin investment portfolio.


You would buy if you don't have any bitcoin and you would also buy if you have a lot of extra fiat, and there might be other reasons that you figure that you cannot gamble on the BTC price going down so you might choose to spend part of your budget now and save the other part just in case the BTC prices crash.


So you are saying that there is a chance that markets will not crash?  That would be another reason to buy some BTC now rather than waiting.


There is also nothing wrong with doing both.  DCA'ing and saving some dry powder for dips.

It will surprise you to know that many people joined Bitcoin for the hype of bull run and not because of their believe in Bitcoin. To them, they just want to make huge profits over little effort and short time and these are the people that bought at the peak and some of them end up in agony during time of dips; agony because they were not psychologically prepared to handle periods of dips and consolidations. It is usually a matter of time before they truly understand what they got into and from then forward some will take the time to study the trend, the tech behind Bitcoin and how best to approach the market while others will sell at loss and live to rue their actions. If you are active in social media, you would have seen some people narrating their ordeal with Bitcoin; how they lost money and all manner of fud.

Well, the longer one stays in Bitcoin, the calmer one gets because times somehow make us understand the possibilities, potential and the future in Bitcoin. So I always advice everyone to give it time.

TBH even a pleb who has been dollar cost averaging bitcoin is now in profit no matter when they first started DCA'ing as long as they maintain the frequency of purchase. I know the chart shows summary for daily DCA'ing but it still works well for weekly or monthly depending on plan. You should know what you can afford to invest in the next 12 months. Then divide that amount by the frequency you want to set (weekly, daily, whatever). Set automatic orders and that’s it.


As a bitcoin investor I believe you should be acquainted with the fact that the economic state of our country does not do us any good but rather make things difficult. Just take a look at current regulations and discussions in Europe regarding btc/internet. As long as people in power see bitcoin as a threat and deny progress, I don't think there will be major changes. Sure, they can't stop Bitcoin because there are lots of enthusiast like you and I, but they can make it a lot more uncomfortable for all of us. So, we should be focused and removed fear that might affect our strategies.

Agreed, DCA is best for those who have a regular income and it will be different for those who have no regular income. Because they have to keep track of the market movements which are difficult and challenging. Moreover, it cannot be said that our predictions will always be effective. Generally, financial markets are heavily influenced by systemic economic and geopolitical factors, there may be some potential but it is not easy to predict for everyone. Even the wisest people make mistakes in such assumptions. We know that any monetary policy by the Federal Reserve can affect market movement, but that does not mean that any monetary policy implementation will certainly trigger a market crash. So there is no substitute for DCA to keep secure investment accordance with the time.

DCA is good for those people who have enough disposable income that comes in regularly every week/month. But for a pleb like me, I need to pick good price levels where I could get the most of my limited capital. Plus read the news. Why would I buy now if I know there's some probability that some macro-economic and geo-political events will crash ALL markets all over the world?

As long as the Federal Reserve is not turning on the money printer, economies and markets will eventually crash back down again.

Broadly speaking, someone who invests in bitcoin is certainly based on their belief in bitcoin itself, and I see things that don't make sense when they invest in bitcoin while they don't believe in it, I can say they depend on luck and roughly they can be said to be someone who is gambling.
I was the same, when I entered and invested in bitcoin based on my trust in bitcoin with all the benefits offered. And I believe in it.
DCA is one of the strategies that is widely recommended, and I personally apply this strategy, yes even with a small amount but it is based on my ability in finances that I have planned as well as possible to prevent and anticipate something that I don't want to feel in the future / DCA.

If you place a bid area on $20,000 I understand very well, you must be very careful of the global economic situation which will impact on a further decline for BTC itself but, I think it is still very far towards that decline and in the investment world a buying strategy with Low prices and selling at high prices are the general keys and the installment strategy with DCA is one of the most comfortable without having to worry about every moment we will buy.

OK, I respect your opinion, but you do you. Personally, I won't be buying ANY Bitcoin at the current price levels because due to the current macro-economic situation around the world, we could get another opportunity to buy Bitcoin with a big discount again and front-run everyone. Give it until March next year, but it could happen again before that. Probably by the end of this year?

My bids are on $20,000.
         ¯\_(ツ)_/¯

To invest in Bitcoin you must depend on DCA. You can invest monthly and weekly.
Buy Bitcoin at DCA ratio when Bitcoin price is low and save for long term. You save bitcoins monthly or weekly which will later be earned in a whale.
As long as you need to hold Bitcoin carefully because long-term successful journey will get the most performance according to DCA.
DCA is the best way to buy Bitcoin.

Aggressive buying is mostly during an overly discounted Bitcoin market period,  and do so should be done with funds that have no need for for as long as the time can take to make adequate profits in the long term,  I agree with what JayJuanGee said that you shouldn  be over aggressive with your Bitcoin buying but doing so on a calculated risk and buying with spare cash that you don't have need for,  as against some greedy investors who because they want to take advantage of market gall going all in with money that they can't afford to do without for a while and putting themselves in a position that make them to be in a rush to sell off at any given chances or even selling of the btc at lose when they can't continue to hold since the bought the Bitcoin at a time financial conditions.

Buying the dip for the long term is best done when you have put all the possibility of any future pressure to sell have been settled,  DCA approach is best when you are buying all the way down,  leaving the Bitcoin for a long period and getting back to check whahasve become of the bitcoin investment on the long run.

I think many people invest in bitcoin because they believe in the potential for long-term growth in value. Bitcoin has been used as a store of value by several large investors, whales and even some institutions, so it is only natural that the interest of people coming to bitcoin for the same purpose is growing day by day.

To be honest, a lot of people weren't happy about the plunging price of bitcoin after they invested. On average, you don't want to lose money as a result of falling prices, but of course there are several solutions that can still be done, including by simply buying and holding. It is the most strategic solution for the long term if they believe in bitcoin performance, but if you have a stable monthly income that exceeds your budget requirements then accumulation is also a good thing to consider.

Inasmuch as I understand the good feeling of realizing that one is in net profit in his portfolio when compared to the fiat injected, there is no doubt that it is really a form of distraction/temptation for those with long term perspective. Some cases, when the profit is like  lets say x3, there is thought of breaking even that normally creep in and if not properly managed, there is a chance one might sell some of his holding unplanned and sometimes when one should rather be buying. So, to avoid a situation like this, it could e best one avoid looking at the price regularly... it can be twice or thrice per year or when there is a major event like ETF approval or so... then checking the market response is not out of place.


This is somehow similar to what happened to me. The only difference being that my passion is just to own Bitcoin irrespective of the price. In other words, price do not really matter to me because I just want to own Bitcoin. To be frank, it will take a great deal of experience to resist the urge of looking at the price always. For someone who is relatively new to buying Bitcoin, there are high chances they might be frequently checking the price, calculating total investment and net investment to check which is higher. I think this is normal as only experience can remedy this. The journey of accumulating Bitcoin is truly a marathon and not a spring. It entail a lot of wonderful processes of growth and maturity.

Sure mate your perspective about holding Bitcoin is actually nice, as a young man full of strength to work, it will be very wise having a strategy or rather a plan about how to channel your daily or monthly income on investment, lets take for instance your earning $300 weekly from your job, you could actually give yourself a target of accumulating $100 of Bitcoin on weekly basis focusing on this target before you reallealize, you have accumulated a good amount of Bitcoin, you can call it a lifetime investment because there would come a time when you cannot longer have the strength to work, the investment will then help you to take care of yourself.

Even though nobody knows what the future holds for Bitcoin weather is will drop to zero or skyrocket, one thing that always kept me smiling all the time is Bitcoin, the name alone gives me joy and in next life if there is something like that I will always choose Bitcoin because I have a strong believe on Bitcoin, just like I always said, in the time of myths and potential the growth of Cryptocurrencies depends on Bitcoin.

There is nothing wrong with being aggressive and even over aggessive in terms of your buying bitcoin, but you should not be so aggressive and/or overly aggressive that at any time you would be forced to sell bitcoin at a loss or even when bitcoin is at down prices.  Your having to sell bitcoin at a loss is likely a sign that you had not properly planned and prepared, and the default, prior to even getting to selling would be to stop buying, and then the fall back on that would be to HODL. .until your cashflow sufficiently returns, which means funding whatever expenses that you had from other funding sources, and the fact that you are saying that you had to sell, means that you likely were not even in a position to buy as many BTC as you had bought and you did not have an adequate and sufficient emergency fund and other adequate and sufficient funds to draw from (including varying cashflows and/or debt).


taking risks should not mean engaging in gambling tactics that involve potentially putting you in a position in which you are going to have to sell your bitcoin if the price drops lower than you had expected... that is not called risk management, but instead it is called dumb.


Even a DCA strategy requires appropriate sizing in terms of being aggressive and even being overly aggressive, but not so aggressive that we end up having to sell at a loss rather than just holding to zero, if need be.

When we aggressively buy bitcoins, we may have various concerns about the price of bitcoins. If Bitcoin falls during that time we may lose our spiritual speed we had. Not only the speed even if I need the money which I invested in bitcoin if the price reduce drastically at that moment definitely I have to loss. I would  be forced to sell the bitcoins and have to share the loss. So why do we walk on that road if we have directions to reach our desired goal without taking risks? Hence the DCA strategy is a golden opportunity for Bitcoin holders. Especially those who want to gift a secure financial environment to their next generation.

Bitcoin will always be like the special money for the internet. I'm impressed by how people are investing in it, but it's important not to buy it just because everyone's talking about it or because some die-hard Bitcoin Maxist say it's the only way to go without a well thought plan. The truth is, Bitcoin's value could keep going up forever, or it could crash to nothing. So, I've spread out my Bitcoin investments across different wallets to make sure I won't lose everything if it goes downhill. I'm thinking long-term, like decades.


Here's the idea buddy, You hold onto your Bitcoin for as long as you can work and support yourself with your body. When you can't do that anymore, you use your Bitcoin savings to take care of yourself. That's why they say money is like energy. it's supposed to replace the energy your body can't give you when you're old. In the end, you'll have this digital asset that can't be taken away from you, and it won't lose its value because of one person.

What you choose to do with your Bitcoin is up to you. You can give it to your kids or spend it when you're older.

Yes. very simple your statement above with the intent and purpose to continue to collect BTC at a very discounted price as it is today and in line with the philosophy of holding (HODL) and being in it for the long term of course and certainly not a practice of buying when prices fall when corrections occur but with the DCA method it can be a win-win solution for buyers.

I've said this many times that planning is something that should be thought of early on so as not to disrupt our investments later. And that planning must be done carefully and thoroughly including to fulfill our daily needs. We should not sacrifice something for our daily needs, because it is not wise to do so.
However, if we have thought about investing for the long term, we also have to think about everything in the long term as well, including something unexpected in our lives in the future that is financially difficult or other things that make us have to try hard to maintain our investment not to stop in the middle of the road.

Yeah.. your head is like a concrete block that is not penetrable.

It seems that I have explained a million different ways, and nothing seems to sink in because you already have your mind made up regarding what strategy you are going to employ and your inability to understand and appreciate that a newbie coming into bitcoin is likely going to be way the fuck better off just getting started rather than trying to figure out if a BTC price dip is coming or not... and once s/he has accumulated a certain amount of BTC and learned about BTC for a while, then maybe s/he will be in a better position to either change his/her strategy to supplement with buying on dips, rather than DCA or to completely replace the DCA strategy with some buying on dips kind of a practice.. that still may or may not be a form of DCA, depending upon how it is deployed..


It might matter in the context of someone waiting around for a Dip might end up fucking himself (or psyching himself) out of buying bitcoin on a regular basis and perhaps employing more aggressive ongoing BTC buying habits.. so maybe the whimpy guy ends up strategizing and not really buying as much as the guy who just buys regularly and perhaps supplements a bit more from time to time with extra purchases on dips.  Do you need some examples, or do you just want to act like the ONLY way to go is to buy on dips based on your retroactively looking at the BTC price moves and the figuring out the points at which some hypothetical person would have bought his/her BTC?


That seems to be true... and there are likely still at least another 10 years of front-running billionaires, even though some of them are seeming to start to "get it."... even though it is hard to know which ones of them are actually getting it rather than seeming to get it but not really getting it.   


Even though I agree that there is a considerable amount of freedom that comes from having greater levels of discretionary income, I do not really agree with the dichotomy that you seem to be creating (and Wind_FURY seems to frequently make a similar kind of dichotomy), and even though poor people do not have much to work with (when it comes to their discretionary income), they still may well have reasons to be more motivated to buy bitcoin because they may well not have very many other options, as compared with the options that are available to rich people and may end up distracting rich people from being able to see, recognize and appreciate the value of bitcoin.


You continue to sound a bit lost, HONDACD125... and unable to appreciate the value of holding bitcoin for the long term rather than contemplating when to sell.


I agree with everything that you said in your post bitzizzix except this part that seems to be emphasizing selling.

Sure there are likely going to be points in time that we are going to be selling portions of our BTC, but you seem to be implying that we are going to want to sell BTC and to hold something else or that we are really going to need or want to sell large portions of our BTC, absent just living off of the stack and largely just mostly continuing to hold the vast majority of what we have.

Maybe an example might be helpful? 

Let's say for example, a person got into bitcoin in 2015, and had a target of retiring in 2025, but not really sure how much BTC he was going to need.  so in mid 2015, he bought 100 BTC for around $30k, and then after that he just DCA'd $10 per week into BTC, and so he has an additional 2.5 BTC that he paid $4,280 over the past 8.5 years.

In 2025, he could just create a budget in which he just cashes out around 4% of his BTC stash every single year (or maybe 1% per quarter), and likely, he will be able to either live off of that forever or to use it to supplement whatever other income that he might have coming in, and maybe he might adjust how he sells his BTC based on the BTC price, but he would not necessarily have to tailor his cashing out (or living off of his stash) based on the price, he just cashes out 1% of his stash every quarter or whatever other kind of time frame that largely fits his formula (and maybe he will tweak his formula over time based on BTC potentially growing faster than he expected, but he might just decide to be strict about following the formula that he already established and just let the chips fall wherever they will)... which largely I am arguing that there may well not be any kind of need to cash out large portions of his BTC, unless maybe he might decide to cash out 10% and consider that to be 2.5 years worth of cashing out all in one go.

Of course dollar cost averaging (DCA) is an ideal financial strategy for investing in highly volatile assets like Bitcoin. And with this we are not trying to guess the direction of the market in the short term, because this aims for the long term so that we can sell at the right time with maximum profit.
And the DCA strategy is great for anyone regardless of whether it's a big investor or a small investor and whatever, and small investors can do within their means even a small amount to buy Bitcoins periodically. And if you do it regularly then your Bitcoin holding will be large and don't forget to always increase your purchases when the price is down. Because this is a good opportunity to buy Bitcoin in large quantities, and also return to normal when the price of Bitcoin starts to rise.
We cannot fight or equate large investors with small investors, the important thing is that we can apply the DCA strategy with full discipline to achieve satisfactory profits in the future and the only difference is the amount. And small investors can also become big investors if they make big profits and continue to implement DCA habits by increasing their purchasing levels periodically.