Topic: Buy the DIP, and HODL! - page 471. (Read 123131 times)

If there is no emergency budget, it could be that the investment will fall apart, we humans are in need of the unexpected so understand this, don't ignore that emergency funds are important for your needs, including your family's health costs.
There is a theory that to start investing it must have a reserve fund for the next 6 months so that investment will not be disrupted, the next 6 months can be categorized as an emergency budget while there is still income every month, so investment will be much better when something starts with a mature plan.

Of course they have different views on how to invest in bitcoin, here we must be able to accumulate bitcoin and that many people want.
Surviving 5 years with bitcoin I think that is enough to take maximum advantage.

This is expected from experienced users especially if you have a manageable budget to invest consistently with a DCA strategy. I agree this is the best way to build your investment portfolio well, but I don't expect you to lie to yourself about what you say.

I'm sure some of them bought on dip and DCA prices, but I'm sure not everyone who says they are actually buying because of the budget constraints they have. Honestly, I really want to stop this nonsense, but let them think for themselves. red4slash, you know that you still need to have an emergency budget to deal with unexpected financial situations, so you don't need to emphasize your desire to invest consistently if you don't have an emergency budget.

I continue to accumulate bitcoin with the DCA strategy and to be honest I never thought of selling it in a hurry even though it already has profits in the portfolio alone, but does that invalidate the strategy that I use? I would say it does not invalidate the strategy that I use.
I understand that we will sell eventually, but not that fast, because for me personally it will take a very long time to hold it, yes at least if it reaches ATH again that is the time I think is right to sell it.
I'm thinking why sell quickly (even though we already have a profit) when we can maximize the profit we can get.

In a recent news I saw the exact procedure of DCA.

QUESTION: "Oliver, why don't you trade #Bitcoin   ?"

ANSWER: "Well, trading #BTC    has been proven to be a losing strategy over the long run. Do you know why? Because 80% of all BTC's gains happen over only 13 days per year.

If you miss just one or two of these days, you're finished as far as being able to beat a simple weekly DCA (dollar-cost-average) buy and hold plan throughout BTC's full four year cycle.

Additionally, once you add the cost of taxes in the form of short-term capital gains, trading fees, and slippage, you've further eroded the possibility of beating a simple DCA buy and hold plan.

I've been a trader for 43 years, 37 of which as a professional. I've done the numbers on this every which way but loose, and I'm telling you this:

I will beat you as a trader with ease every single cycle while puffing on Cuban cigars and sipping on the finest wines of Spain and sleeping like a freshly bathed baby every single night with my DCA buy and hold plan.

I don't trade #Bitcoin because I want to win, not lose. Got it?"

Shout out to Spain 🇪🇸.  I love you!"

THE END
#HODL

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Yeah but we are not talking about selling in this thread, so you are talking about the wrong kind of supposed DCA if you are suggesting that it involves selling or needs to consider selling.

Sure if you are trying to accumulate dollars, then you might sell whatever it is that you buy when it is at a certain point in dollar profits, but again, we are not talking about those kinds of strategies in this thread.

The amount of DCA assets depends on the individual investing. You can purchase Bitcoin in different steps to make long term DCA. The right way to trade in Bitcoin is to divide yourself into several parts. So that you can buy when the bitcoin market is low and sell it at high speed or hold long term. Following these methods is called DCA, there is very less chance of loss if you invest in DCA method. And if you invest directly the chances of loss are high. Hence following DCA is the main sign of an ideal investor.

DCA doesn't mean going all in at once and if anyone does that, that person is not DCA in the real sense but have just gambled, because when you talk about DCA approach, it has to do with a long term practice for small investors that want to DCA all the way up and down depending on the market conditions at that time, but more also if any one have big bag and want to buy all in at once, it then left for them but they may not be DCA in the real sense of it.
So the ideal DCA will be buying all the way at every market direction setting aside only 20%-39% of your total monthly income and holding bitcoin and a traded asset that allows you to take advantage of the market at any point, and This also applies to DCA on any coin.

The approach to proper DCA can not be single handly outlined since various market organs also have their own.

This discussion always repeats itself because every time I read this thread from the previous few months there is always discussion about the ideal DCA (for some people) and there are already several people who have given their views. You just have to look and read a few pages behind whether some people's views will be the same. suitable or not for you to adapt as a strategy that you carry out in your DCA.
Meanwhile, when you look at financial conditions (income) that are not very stable, actually that might be a reason, but I think when someone is aware of the economy and their income then it is not a problem because of course we already have financial management and we cannot possibly do DCA with the same percentage. bigger than the income we earn and save in one month.
That's why many people always discuss investing according to what we can afford because when we DCA it's not just about buying once and then it's done, but we need to take into account whether the money we spend (for the DCA portion) can make it consistent in the future because this is important. so that we know how much we have to budget for purchases in DCA in a day/week/month.

Even though maybe we are arguing semantics, I would not consider there to be different perspectives of what is "long time" but instead there are people who are in different place in terms of their own circumstances that affect how they think about buying bitcoin.. and even though people can do whatever they want, frequently when i talk to people, whether in this thread, or in other places (or even in the real world), I suggest that bitcoin "is best" thought about as a long term investment.. so I am attempting to create a certain framework regarding how to think about bitcoin in a healthy way, and they are free to disagree or do whatever the fuck they like... but it still does not mean that their perspective is likely to be equally correct when they fuck around with trading and other kinds of gambling bullshit with a pristine asset like bitcoin in which it is quite likely that the long term lucrative approach to bitcoin is likely buy, accumulate and hold..rather than fucking around and proclaiming "my perspective is different" blah blah blah.

And, yeah, people are free to do what they like.

And, yeah, many people are not quite ready for bitcoin because they don't know shit about it, even if they might think that they know because they heard the name bitcoin or that they heard some disinformation that they believe to be true.

Part of the purpose of sharing information, perspective and framework for people is to help them to potentially benefit from someone who has spent thousands of hours studying bitcoin rather than their coming to their own nonsense without hardly even thinking about the matter beyond throwing a dart at the board.

Don't get me wrong.. sometimes shorter term perspectives an end up paying off quite stupendously and even allow someone to profit stupendously by some ways of luck or timing in terms of being new to bitcoin in early 2020, and then for example buying $50k worth of bitcoin around the 2020 covid dip (let's say 10 BTC for $5k each), and then maybe considering early 2021 as a bubble selling at $60k and then buying back at $30k and then maybe selling again at $60k and buying back at $18k.. but I have my doubts that anyone would really be able to time very many of those kinds of moves.. so those tend to be lucky rather than the right approaches, even though some times people might generally be able to get in and out at right around the right times but maybe not exactly for the right reasons beyond their saying that they have "intuitions."


I doubt it.

This is not a thread about "no matter what you do is good as long as "profits"".. so you may well be in the wrong thread.

There is a framework in this thread that has to do with long-term accumulation, so even if you say that the thread is motivated by profits, that does not mean that everything becomes fair merely because there are other ways to make profits.


Yeah, but it seems that I was motivated to respond to Patrol69 in the first place because he seemed to have been perverting and convoluting ideas since he was saying long term, but he is really aiming for $100k and he is willing to wait.. which does not really mean the same thing to me, even though sure, he can do whatever he wants... I just thought that it was confusing the way that he framed the matter of time versus seeming to have a price target.


Of course that is up to you in terms of how much priority to give towards learning, and sometimes just getting started with small amounts will give you some incentive to spend more time learning.  That is one of the advantages of DCA in terms of setting a small amount, and then perhaps learning along the way (including figuring out your own financial and psychological circumstances) prior to making tweaks to how you might later decide to approach the BTC investment that you had already started with some level of DCA, even if it might be starting with ONLY $10 per week rather than a more aggressive amount such as $100 per week...and yeah of course, some people could not even afford $100 per week so these kinds of number suggestions need to be adjusted for where someone might be at in the world and/or where they might be at with their own budget and/or psychological situation.

and you can also tell your friends that currently many mass media are also discussing this matter. Yes, the DCA method is one of the techniques for investing with Bitcoin and one of them is Forbes source: https://www.forbes.com/sites/digital-assets/2023/08/30/time-to-start-dollar-cost-averaging-bitcoin/?sh=19e97b853a90 and I think the explanation from @naira and other friends is very helpful in understanding how the technique works.

What I understand from experience is that someone who is new into bitcoin investment will say that he is holding for long term when he plans to hold for 1-2yrs. Another thing that I see about newbies is that because they are new in the market,they are eager to sell and make profits when bitcoin reaches their price target and they will think that it is the best way to make profit. Such people in this category because of this mindset of others,if bitcoin price didn't pump as they planned it but went in reverse direction,they would be able to continue holding for long and they will quick sell of because of panic and they didn't plan holding for a full circle. The fact remains that the longer you hodli and DCA on your bitcoin investment portfolio,the profit increases respectively with the number of circles.

On the other hand some new investors that just started their Bitcoin journey might tend to hold for two years due to their decisions on their target number of bitcoin but as time passes by and they have reached the given time,they might decide to further their accumulating time and number of bitcoin to a longer time. What I mean is that if one plans to accumulate 1BTC for 2yrs and getting to 2yrs,he decided to increase his BTC to 2BTC because his believe in Bitcoin have increased and also financial income,and continues with DCA for another two years and so on. But if you only accumulate for 2yrs and sell off and think that you have invested for a long term,you are wrong because you don't get it. You must complete a circle which is four years for you to have good experience of the market,so that you can take advantage of it in the next circle to accumulate more bitcoin. A time is coming that those investors that are use to a very long term investment,like 10-15yrs up will be the most wealthiest people because they took advantage of hodling alone.

Thank you for your input and I am now more confident in making decisions and the risks have also been carefully considered.

Sorry for the inconvenience I've caused for asking a question that has already been discussed many times. In the future I will try to read more. Thank you for the input you provided. Maybe there are many things that I can pick up plus points and have more confidence to invest in Bitcoin on a regular basis.

We have to identify some things clear from this discussion, some hold on many reasons which we can see part of them as for an investment asset to retain and maintain it value over a period of time, some to increase their holding capacity by making profits from it over time, lastly some prefer to hold in bitcoin because they realized the challenges with the fiat economy whereby inflation decrease the financial value of what they have and sees bitcoin as the perfect alternative, which means in whatsoever reason we decided to hold bitcoin over time, we should know the risk involved as JayJuanGee has highlighted, we are investing or holding base on our personal research and information we have about bitcoin investment and not because others are doing so, because along the way you could discover some challenges that may warrant you releasing anything you're holding onto, just as we have with this period on bear market.

Off cause nobody knows about Bitcoin price movement if will actually drops more than this but from the little I read about Bitcoin price movement when is a bit closer to the halving is that the price normally consolidate on some certain zone between A, B or C, so bringing it to the Bitcoin price movement now is just ranging within some certain price but not actually on a dip trend or uptrend, from my own view the market will not go dipper than the way it was.

So now is actually the right time to accumulate as many Bitcoin you can get because when it spike it moves massively heading to break the all-time high, so is good to have some amounts of Bitcoin on your portfolio before then.

Of course the fall usually happens when it's not expected. And it is good that you have the opportunity to buy bitcoins more often, it will definitely bring you profit in the future. But I think you should always have some money to be able to buy more coins because of a collapse. It doesn't happen often, but if you are able to take advantage of it, you will have better luck.

Investment less than 4 years is not a long time hold, not even up to a full circle which is 4 years, but people have different perspective of long time hold pending on there accumulating plans, for some persons there long time hold could just be 2 or 3 years holding while others believe long time hold is from 5 to 10 years but it all depends on the holders.

Jay, just like you said whatever thing anyone wish to do provided is working for them, because whatever interpretation they have on long time holding provided that they are meeting there target which is the most important even though the reason of this thread is for buying the dip and hold but at last everything boiled down to profit which is the major goal or the reason of accumulating.

It does not sound like me that you are basing your holding based on "long time."  You are holding based on a "target price" that you have which you happen to have disclosed as being something like $100k-ish.

And by the way, bitcoin went down to $15,479 last November, so you if you have been buying since then, you have not even been holding for a year.. that is hardly a long time and hardly even a whole cycle.  Maybe you won't even be able to hold for a whole cycle, which also does not seem to be a long time.  Remember a cycle is 4 years.. so are you holding more than a cycle?  It does not sound like your plan.

But hey do whatever you like, even though many of us here believe that 4-10 years is a kind of minimum for thinking about "long term investing" and really 4 years is not even long term, but sometimes it is difficult to recommend anyone get into bitcoin for less than a whole cycle without recognizing that anyone who invests in bitcoin for less than 4 years and they are looking to sell at some point as the BTC price goes up, they are employing a different investment style that is likely not really what the thrust of this thread is about.. because many folks are going to need a few cycles before they really are likely to start to get into a kind of level of confidence regarding how many BTC that they have and options that it may likely end up bringing to their lives.

I always believe in holding my investments for a long time. I have already reaped the benefits of holding my investments for a long period of time. I bought quite a bit of BTC when the price of Bitcoin was $16K and when the market went from $16K to $20K momentarily but I didn't sell my investments because I was waiting for better times. When the market dipped back down from $20K again I believed that if I held my investment for the long term and if I didn't sell my investment I would definitely get a lot better from this investment than I currently do. I planned to hold long term and till now I am holding my investment, after bitcoin price reached $30K many well wishers told me to sell my investments now but I am sticking to that decision till now and I am holding mine for longer time. Planning to hold the investment, initially I am waiting for Bitcoin to go to $100K, I will wait and hold my investment for however long it takes for Bitcoin to go to $100K.

If we don't drown in this bear and bull we can focus on holding bitcoin. Then we will be relatively safe in any case. An investor needs to hold Bitcoin because we know that there are more than a thousand people in the crypto market who invest heavily in crypto. We can consider them as whales. And all these whales together control about 40 percent of the world's bitcoins. Since a large portion of Bitcoin is under their control, the market can be manipulated at any time. And to be free from such situation, the importance of long term holding is immense. Crypto market we know is risky platform but for those who buy bitcoin and hold long term it can be said to be risk free profitable investment.

It's just a process and it's definitely for preparation so that it's safe and not affected by a lot of analysis which in the end gets confused due to most of the suggestions, it's better if we focus on accumulating BTC, currently many people already understand the methods also simple methods. If we read and browse on the internet, the DCA method is highly recommended, that's almost the average I found. Yes. DCA is a real suggestion and will work if implemented by accumulating BTC until today.