Topic: Buy the DIP, and HODL! - page 48. (Read 90563 times)

One of the way any investor can get or be on the advantage side when buying BTC is when actually they buy during the dip especially if you are into lum sum strategy. The major difference and also advantage that the DCA strategy has over the lum sum method is that when buying through DCA strategy you don't have to plan and strategies in order to get good rate of Bitcoin rather consistency is what will help you out and also again it's helps out if you don't have massive funds as you can set out a particular amount that's convenient with you and buy it on a steady without having issues just be rest assured that you keep buying although you can still raise up your figures if actually available and the price of Bitcoin calls for it @during any DIP.

DCA is the best for new beginners because it gives them the opportunity to buy bitcoin regularly weekly or monthly as long as they are doing it consistently and persistently their bitcoin portfolio will increase gradually based on their discretionary income. Why it is recommended for new beginners is because as long as you have an income coming in, you can use a certain amount of money from your discretionary to invest often as it will be part of your budget weekly or monthly. If you do that for straight four years, you will be surprised at the size of your bitcoin portfolio. Lump sum is good but it is not all the time that we can have money to buy in lump sum.

One disadvantage of lump sum is that when you have the bulk money to buy and you bought at a certain price level, after buying and bitcoin price dips, your portfolio will be in loss until Bitcoin price rise above your entry point. This is why the best method of buying for beginners is DCA, because it gives you the chance to buy bitcoin at different price level. Lump sum is good for those who have accumulated up 50% and above of their bitcoin target, and it is more beneficial when you lump sum at the dip, which I believe that is what most investors who are no longer on their accumulations stage but in a maintenance stage are doing.

JJG have given so many thesis with examples on how an investor using DCA strategy will accumulate more bitcoin than an investor using lump sum in a given period of time.

I think you’re mistaking both words holding and trading, selling in small profit is considered as risk from my understanding cause an investor who always want to sell in any little profit will definitely miss their plans along their journey and will end up not buying within the previous price range, trading is not even advisable so if you’re considering trading as quick earn and risk free you should change your impression. Holding bitcoin for long run is actually risk free because you’ll get the time you want without overdoing except such investor doesn’t know what bitcoin investment is all about that’s when an investor can go astray with planning but, no investor will want to risk their money investing in bitcoin without a proper planning so when your planning is in order the investment is safe. An investment is considered a long term investment within 4-10 or even beyond the cycle, people do invest and invest as long as they’re comfortable going further without stress. I find it difficult understanding the last paragraph because no one should invest with fear or being in a haste to meetup a set amount, all this can be classified as trading because they’re the ones who always look at bitcoin price movement when investing.

The concept is not like that buddy, regardless of what rank we are here, in the end we are free to argue and debate with anyone because there is no prohibition when we argue with people who are ranked higher and vice versa. This is a free forum where we can express ourselves towards the discussion that we are discussing even though it is legendary with a newbie I don't think it is a problem.

Back to the original topic.
JJG I don't really understand the sentence you said, actually I agree with the sentence “Being able to invest into something like bitcoin is called having disposable income” But on the other hand isn't it when looking on the one hand when we start investing and making purchases in bitcoin isn't what we put in can also be called initial capital for us to be in bitcoin because even though this is a long-term investment, still recording initial capital is important so that we can find out how much we spend to buy bitcoin and how much profit (surflus) we will have in the future as part of the capital plus the profit earned.
I'm a little confused, am I missing something here?

Long term or short term, it would really be just that depending on your risks appetite or management since not all would really be the same when it comes to this manner on where there are those who could be able to deal up with the market more extensively in compared into those who do want to go or deal up with much safer approach but in overall when it comes to risks then it would really be always present no matter on what are the decisions that you would be making on where it would really be that always be a part which you would really be needing to adjust accordingly if you do really like for you to survive with this unpredictable space.

Lets put up some example condition into that recent drop of 57k. Whom had thought that it would be going down even more? For sure majority of people on the market had made out those assumptions that it would be going something low below 50k price level because they've been anticipating for that significant correction on where most people had been that waiting because after halving there would be
something like this or condition where it would really be making out that huge correction.

On the moment that you've seen that 57k then you would be having doubts that it isnt the bottom. So you've waited then it did make out some bounceback. You would be telling into yourself that well this might be a dead cat bounce but eventually the price did continue to rise and this would really be leading up that another batch of regret that you should had made some entry earlier. 

When investing we must invest in long term plans. Maybe trading can be sold with small profit but those who invest always risk more money and they hold their investment for longer period of time for more profit. So far those who have held onto their investments for a long period of time have not had much of an investment failure. Especially if you consider the latest investment case where Bitcoin broke all of its past records and reached record highs at which time at least no investor was out of profit. Bitcoin price has touched a high this year and so far the Bitcoin price has been hovering near record highs, but those who invested in it are definitely seeing substantial profits this time around. 
After the market touched the highs, it went lower for a few days and the market settled around $55K at this time many thought of investing but those who invested from within are definitely seeing substantial profits now. 

Those of us who invest if we think too much about investing and what will happen or not why we invest so much if we don't invest then we won't invest. Because overthinking the investment will only lag behind, but if you can invest with risk, then if you are patient, you can definitely get a substantial amount of profit from that investment.

You're right about that someone's accumulation doesn't really matter whether you'd be doing it on a lumpsum or through DCA. Whichever you prefer but the most important thing here is, you can apply both any time you wish to and you are saving BTC for yourself and not for everyone else.

That is because you know what's waiting ahead when you get to hold BTC.

Someone's definition of success is subjective.

Those that have been holding for so long and yet, haven't sold yet can be classified as successful because they've bought at a very low price.

Now, those that will purchase whether it's a lumpsum or through DCA, in the future, you'll also be considered by the new investors as successful because you've bought it earlier than them. So yes, it's very subjective.

I believe in terms of methodology to accumulate Bitcoin we can't really tell wether one using DCA will be more aggressive in accumulation than another using lump sum. DCA opens room to buy at every market situation but having a good stash of it depends on how each individual accumulate wether aggressively or conservatively.

Yeah we all need to hold for a long term and also view Bitcoin investment in long run but that doesn't certify wether anyone is gonna be successful. Some might take time to be in good profit or even reach maturity stage, so if you wanna be successful then accumulate more with a target and not allowing room for exhaustion.

Buying the dip is not trading; even though you are accumulating bitcoin for the long term, there is nothing wrong with buying bitcoin in a dip because it will help you accumulate bitcoin at a low price. But since you are a newbie, it is not advisable for you to adopt buying the dip so you will not try to time the market and get delayed in your bitcoin accumulation journey. You can stick with the DCA strategy so that you can accumulate bitcoin either weekly or monthly, even though bitcoin is increasing or decreasing. The DCA strategy will also help you control your emotions.

I don't actually think it's proper to be mentioning trading in this thread, because I believe that this thread is meant for Bitcoin investment only, so I suggest you take your trading discussion to the right place.

And as for Bitcoin investment and accumulating process, I believe that the DCA accumulating strategy is the best among them all, because you will buy in your own convenient, either weekly, monthly, and what makes it very special is that you can also buy the deepest part of the deep, which the person relying on lump sum method might miss out due to the fact that he thought the price of Bitcoin will go deeper, and as long as you are a long term holder, which have accumulated a very good stash of Bitcoin, you are definitely going to be successful in your investment.

I understand what you are saying and I agree with you that not everybody who is in this from is here because they invested in bitcoin. Many come for different reasons and of which all of us know that the forum is very vast, and have almost every threads that talk about the issues of life. Some people who are legendary and other senior ranking members are more knowledgeable in the field and threads they often visit and discuss on. Some people who are good in politics and society will be knowledgeable in those areas. But there are exceptional people who has knowledge in almost every issues of life, sometimes I wonder how they do it, and one of those people I know is @JJG. I saw him in almost all the threads that discuss issues from Economics, politics and society, bitcoin and many more, and when you see him talk he makes valid and vital points which when applied you will see results. So people like that don't just get Legendary because of forum ranking, they got there because they have been contributing what they know is the best way to go about things. How did they know, the answer is this "They have been practicing it and teaching it for years and have seen it work all the time" So when they are teaching us what they know, we might be thinking we know it all and tend to argue because we are ignorant.

By long term planning we must mean a long period of time. In this concern 6 months period can never be long term even if 1-2 years it is not long term either. In my opinion, we can consider the period from 5 to 10 years or more as long term. Moreover, Bitcoin holders are encouraged to invest for the long term as they will be there for a long time. They will have the opportunity to accumulate bitcoins for a long time by doing DCA. This will help the Bitcoin price increase as well as strengthen Bitcoin holdings. Not only this, a trader will get an opportunity to grow their investment in both bearish and bullish conditions during this period which is not possible for short term traders.

Well, from the beginning of your first comments, I understood the whole thing that you were saying, and I understand your points clearly. If a trader is buying at the dip, he's hoping to sell at a high price because everyone into Bitcoin (trading or not) wants to make a profit. In Bitcoin trading, everyone who's doing it must always keep their eyes on the market to make sure what is happening so that they will be able to know if they will sell or not. Buying a dip is another method of investing in Bitcoin and both traders and investors can use that method to buy Bitcoin. Traders are not different from short-term investors because those people can not hold for a long term.
The difference with the DCA method of buying dips is because, with DCA, you can buy at every given opportunity (whether Bitcoin is high or not), ones you have the money. But as you are using the DCAing strategy to invest in Bitcoin, then you eventually meet Bitcoin at dip time you should be able to grab that opportunity and buy as much as you can.

A trader can start trading during the dip but won't have the patience to hold the Bitcoin he bought because he's not an investor of Bitcoin but a trader. I advise anyone that's ready to make an investment in Bitcoin to use the DCAing strategy, because regardless of the price of Bitcoin, one can still invest any amount they want and can achieve what they want if they always DCA as planned from their portfolio (just like I have said earlier). When you are buying Bitcoin at the dip, you won't be given the opportunity to buy it always because, as Bitcoin's price is fluctuating, sometimes it goes up, and sometimes it comes down, but using the DCAing strategy allows you to buy even when Bitcoin is up or down in price.

I consider your mentioning of 6 months or one year investment plan in your narrative problematic and off as the thread only lay emphasis on a longer term investment plan of about 4 to 10 years or more of accumulating and holding Bitcoin with various strategies that suits such an investor in order to have a reasonable amount of Bitcoin.

DIP searches can be relatively difficult for new investors in BTC because of the paucity of considerations in their investment. Continual purchases can be supported if he considers the DCA method. The best strategy for them may be to keep BTC deposits as a long-term strategy regardless of monthly income. Before investing he should be prepared first about his capital growth strategy and to acquire the title of long term holder so that he does not have to take the risk of withdrawal of investment which is floating money. Adequate knowledge of DCA for new investors can make them smart investors.

DCA is a universal strategy for eliminating ability differences in investing that is applicable to people at all levels. Keeping in mind the ongoing consistent strategy and the habit of taking care of the BTC stack can make him a high quality holder in the future. You rightly say that the train waits for no one so I would say that the price that currently creates an opportunity to buy BTC will probably be a DIP for the foreseeable future. So regardless everyone should focus on BTC accumulation.

As long as you have an income, you have capital to invest in bitcoin. Your problem is, you see capital as a special fund that is either outsourced or saved for a long time. Capital is simply money you can use to invest and with bitcoin you can invest with whatever you have.
If yo have an income. The smaller your income, the smaller your investment might be.
Imagine having savings and saying you're waiting for capital to invest in bitcoin. It doesn't make sense because that savings can be your investment. It can be $20, but as long as that $20 can grow to $25 or drop to $15, that's an investment and that's how it is with bitcoin.
As long as you have an income, you have capital to invest in bitcoin in my opinion.

For me I think emphasis should be laid on having the money, because the DCA method can work only if you have the capital to follow through it, whether it's 6 months or one year or how long you plan to invest.
For those that risk it all Just like you said, are people that are not factual about their analysis, the DCA method was not created for you to risk it all, is an avenue to buy Bitcoin little by little no matter the price, so if you say you want to risk it all, and you have the capacity for huge investment then why not use the lung-sum method instead. but mind you, Bitcoin investment is not that sort of investment you wake up one morning and you've lost all your investment, it's even rewards you even for your huge investment and your long time wait.

You are very correct, individual capability differs in terms capital to invest in Bitcoin but the area of concentration should not only be having the money itself but the ability to keep the ground running by accumulating continuous which should be an investors priority, although Bitcoin investment is not meant for everyone but it is an opportunity thatt has avail itself for every interested person be it poor or rich, although DCA strategy has help everyone so there shouldn't be excuse for anyone to be ababdone by the train, note investing in bitcoin should be depndent on the amount of money you can afford to lose not necessarily the amount you have because if anything happens no one will be blamed for it, the loss incurred will be a personal problem of the investor, thats why is not advisable to risk it all. Invest with what you have and accumulate more as your income increases, this an investment, don't risk what you can't tolerate in other to avoid emotional upset.

Buying the dip would always be a good strategy with regards to bitcoin, but it better works as a backup strategy since it only involves buying at one market trend, since we have already said that using DCA is better since it involves ongoing consistent buying of bitcoin weekly or monthly or which ever way that the user chooses to, i think the misunderstanding here is with the usage of the buying on the dip, preferably like I said before, buying the dip is good cause it can help to accumulate bitcoin at lower prices but one of its flaws when used independently is you would always have to wait for dips and at times we could end up having indecision with regards to when is the dip or how to identify the dip and this could lead to underaccumulating of bitcoin making it a good strategy as a backup, buying on dip isn't trading unless a person decides to use it for short term accumulation to get profits of market waves.


Your right buying on dips isn't the best strategy for beginners considering that fact that it doesn't support ongoing and consistent buying of bitcoin which i think I'd what most beginners should be most bothered about since they are just starting out, but that doesn't mean they also can't practice it, yeah it's could be quite difficult for someone who doesn't know much to identify a dip and most newbies could tend to want to be smart and end up waiting to long or trying to caught the lowest point of the price and might missout on the whole thing, but yeah if the strategy is understood I think anyone can use it especially as a backup strategy to accumulate more bitcoin in times of low prices.

I can't agree with what you are saying cause I hate to see ranking as a measure to know who is more knowledgeable than others in this forum, you also have to understand that this thread is a little complex than other threads cause we are talking about investment and money management here and you know that everyone has to bear the risk himself for which ever decision that he makes, anyone that shows interest has the right to argue with whoever opinion that he finds contradictory to what he knows and thats the only way to really learn by disproving each others facts.

I can remember when I started off in the thread it took me a while to start understand what everyone was saying and even till this moment i still have my own opinion concerning some matters we argue or discuss here, and just for clarity someone could have Been on this forum for longer doesn't have anything do with his experience concerning investment, I had already started investing or rather bought Bitcoin once before this forum, everyone is something outside here and irrespective of rank we must understand than everyone's opinion is valid and should be correct if wrong or respected if correct.

Moreover what margin do we use to know who is correct or wrong everyone here speaks as he knows, not like there is a textbook to investing in bitcoin, we all learn and tell others what works for us, newbie or legendry alike, we are here to learn.