Topic: Buy the DIP, and HODL! - page 480. (Read 136095 times)

Invest only that you can afford easily. Don't made yourself uneasy with your investment capital and go for things like borrowing money. Investment must be for larger duration and you can afford that only if you make things easy for your self. You can reduce or increase investing money based on your income.
I do agree that we must have two type of savings one is for bitcoin that is for long term and second one is for daily life necessities. For second one you can  spare cash or invest in things like buying a health insurance for the family and more. Saving money won't be of any use but investing them for a long duration will definitely increase them.

You should not send all your money to buy Bitcoin, you need to start with a comfortable amount so that it does not create any inconvenience for you. And even if you wanted to increase the amount you set aside for a purchase, this should not be the last one you have, you should think about the fact that for some reason your investments may become inaccessible to you. What will you do in this case?

Make sure that you always have savings that you can use if necessary, I prefer it to be cash that you will always have access to. Even if you always have access to your investments, this money will be useful to you if some kind of collapse occurs in the market, you will be able to buy more if you want.

This is great advice and thanks for sharing from your personal experiences. It really shows a healthy perspective, and your ability to be pivot/be flexible. I think that’s key to any investment. When people talk about investing they even go a level deeper and ratio out the split of investments from that 10% of your income.

My deduction from income ranges between 5-25%. Sometimes have richer months and sometimes more expensive so the amount has variance. Recommend ya use excel or google sheets to work it all out for you. I also don’t do the allocation all at once and spread out the “investing” over a month. Sometimes things come up and I don’t like to be over extended, but certainly by month end they are done.

Then out of the amount I split my investments like this.

%56 BTC
%5 add to emergency fund
%17 dca stock
%12 cash savings
%10 into my business

If you see someone say they are high allocated into something this is probably what they mean.

Every year I re-asess this ratio normally near year end. I do feel like I have over allocated into btc this year but maybe that worked out, we shall see.

Keep calm, hodl and dca on

The percentage depends entirely on the income level of the individual as there cannot be a general rule for determine the percentage of income to set aside for investment. For those gainfully employed using my country as a case study, living expenses is not more than 20% of the total income so someone can even allocate up to 50% of their income to Bitcoin and will not be affected in any way. unfortunately, not everyone have this kind of job or business. On the other hand, there are people that their total income do not even meet their basic needs, this makes it practically difficult making investment when basic needs have not been met. Finally, the average people can allocate as much as 10% of their income and still do well with other needs.

Different people with different appetite as far as investment is concern and what governs the general approach is the target. If you target to accumulate a certain quantity of Bitcoin in like five years, it becomes easy to calculate your income and how much you can set aside to buy through the DCA method or any other method that seems convenient for you. So, the target, conviction and faith in Bitcoin are some of the things that determine the percentage of income to be allocated to Bitcoin provided basic needs as well as provision for emergencies have been made.

It is said than done. I see 30% as something too big for newbies to start with, 10% is very cool and if the person has little income, he can start with 5%. what matters is the investors regular buying without skipping any week or month and before you know it in 10yrs time, you will be surprise to see the quantity of bitcoin that you have accumulated. Take note that there are some kind of emergency that one will be faced with, that might take up to 50% of your monthly income sometimes. I have so many needs that arise and emergencies from here and there, if you accumulate aggressively, it will become a problem in your bitcoin journey because, you might go back and sell from your bitcoin investment portfolio when you are short of funds, and this might chatter your bitcoin target goal.

It is good to use the money that you can use for regular DCA, no matter the challenges that you are facing and whatever emergency that comes your way, you can still continue with your DCA strategy because you have a bitcoin target. That is why I see 10% as the best option because you will have enough reserve funds to handle any expenses that comes your way. And if it happens that your reserve funds is piling up and you still have more cashm you can keep it and use to to buy at the dip or better still use it to add to your DCA funds. If you use 30%, there will be no way that you will be able to have excess reserve funds for other purposes.

I am talking from experience, there was a time that I decided to invest above my regular 10% DCA and I increase it to 20%, for the first three weeks, I was fine but later, I observe that the cash left after buying bitcoin for the week, is not always enough for me to use to take care of other needs and there must be an emergency that will occurs and I will have to take care of it. I got angry on the 6th week towards myself because, the cash on me couldn't take care of my family needs and other emergency. I got broke three days after I got paid because the moment I get paid, I just buy bitcoin instantly with the budgeted amount. This made me to think of selling some fraction from my bitcoi. But because I know where I went wrong and immediately, I asked my colleague at work to lend me some money to take care of major responsibility for that month. The moment I get paid, immefiately I went back to my normal 10% budget, and I was able to clear my sebt and could still balance other expenses. Since then I have never come up with the thought of goin above 10% with my present income. It is better to use 10% because this will not have effect on your income when you use it for DCA. Remember, slow and steady win the race.

If you don’t want to go into trading, that is the best for you since you already know the risk involved in it. It is better you don’t lose any funds to trading than taking a risk that is unbearable for you. Shitcoins are even worst, whether you trade or invest in shitcoins, you’ll just have it at the back of your mind that you’re in for a very big gambling and will leave you regretting every of your actions when the market crashes not in your favor which will happen sooner than imagined. Leave shitcoin out of your investment, if you want a good savings for the future, only invest in bitcoin.


30% is a big percentage of your total income to be invested in Bitcoin. But in some cases, it will be like a very good price to be invested also. You just have to check and balance on the advantage and disadvantage of what you’re going to face. If I earn $1000 per month and all of my total expenses for the month, including emergency funds does not worth more than $600 or less than $600, I will confidently put in the 30% ($300) of my income into bitcoin investment.

If for another example, I earn $2000 per month and my total expenses including emergency funds is upto $1500, then investing 30% ($600) of my total income will just make me dependent on my investment again, which is not a good way to accumulate bitcoin. Rather if I put in 20% ($400) of my total earnings I will have a lot of bitcoin accumulated than the one that invests 30% monthly. 30% and 10% of monthly income invested depends on your income and monthly expenditures.

Well it is indeed quite large, but I think it is good enough to invest 30% in bitcoin because other expenses and needs have been covered by the remaining 70%, I think this is very reasonable, especially if they make both, the wife and husband are still working of course it will fulfill all of them including in the reserve fund plan.

Therefore by increasing the allocation so that bitcoin ownership is greater over the next 5 years and that is my plan for the future how to keep allocating to bitcoin, of course I myself do not think of investment there are other things that need to be considered when there is a sudden urge then the reserve fund must have been prepared in advance.

Plans / strategies must be thought of far away, I have found the conclusion, as for unexpected needs there are funds that are ready for use, in this case we must be able to manage monthly financial funds and minimize excessive lifestyles.

That would probably be very difficult if you have an "OK" salary, but with a family/with mouths to feed. Finding another shift and a side job to add more income to save and invest in Bitcoin. It's also probably best to have a little urgency to get find more money. Because with the current surge and renewed optimism, we might not get another opportunity to buy the DIPs below $25,000 anymore. Probably something below $30,000? Perhaps. But the actual point is get the most of the opportunities you currently have, especially if you're young and single.

I disagree with you. 30% is a good amount to start investing in Bitcoin. Its not large at all its accurately a good start in investing and should not be considered as aggressive investing. For instance elf you earn 100$ a month and you use 50% for upkeep and sorting of that month expenses. 20% can be kept for savings or emergency fund and you can invest the 30%. If the economic situation is favorable there persons who would prefer to invest up to 40%. But i would not advice this bold step to family owners because need for other things may arise within the month that could take up some money. Bitcoins price is on the range of $34k it will take a long time to get 1 Bitcoin if you invest less than 30% when your earnings is low. But if you make good money like a $1000 a month even investing 10% a month can give you a good amount of Bitcoin at the end of the year. One thing for sure is that within this period of accumulation the price of Bitcoin might go increase or dip and it will affect the amount of Bitcoin you can buy with that 30%.

30% is a fairly large allocation because for me it is a very aggressive step in investing. However, as JJG said, those who do not have large expenses for their living are certainly a better choice to save themselves in their investment plans. Well, if they are able to survive by allocating 30% for up to 3 years, of course the achievements in BTC ownership will be quite large.

Apart from that, all the dependencies and unexpected expenses in life can also affect the level of allocation in investing each month. However, every plan has to be thought out properly beforehand to prevent chaos in their investment journey. Well, in my opinion, most of them are probably only able to allocate 10% to 15% of their income to invest.

That is the point of the problem, sometimes we are not unwilling to allocate our income every monht in a large percentage amount, but with the economic situation that still has to divide on other things that ultimately make us as minimal as possible to allocate it. That is not something wrong either, because there should be no compulsion that makes us ignore other needs, because if we do that it is something that is not wise either.
The most important thing when we do this is consistency, for me it doesn't matter when the percentage is more flexible, especially when our financial situation is up and down.

You are right with the implication that 30% is a lot to be investing into bitcoin and/or otherwise saving, jossiel..

Most people have trouble saving any income and frequently, 10% of their income can be a reasonable and even a somewhat aggressive target for a lot of people (even though surely some people have more discretionary income than others and if they make a lot of money, sometimes they can live a kind of minimalist lifestyle and end up getting up to decently high savings/investing levels).  Many of the normies can make quite a bit of progress just by going from near or at 0% to 10%, and surely if they can invest/save more than 10%, then the is o.k. as long as their other financial matters are in order.

Nice to see that you've got the status to put 30% of your monthly income to BTC and you're firm in holding that.

You're right.

Trading is riskier than holding and as you accumulate, you just do the sequence and the practice that you've been doing monthly or whenever you've got more spare money to do so.

The pressure is real when you're needing to get that losses you have just made and when you can't, the mental effect to you is greater because it's going to give you mix feelings.

HODLING is the best, no pressure, no need to think of what you have to trade but just to accumulate and sell in profit whenever it's needed.

Of course trading is very complicated especially when the trader is a novice that doesn't understand what trading is all about, in most cases people seem to forget the risk associated on trading because they are overwhelmed by the profit they believe they will make if venturing into trading forgetting the risk.

For an investor to have rest of mind is to avoid trading because in as much as trading may look so interesting in times of profits returns that's how the chances of losing is also there so the best is just to stick on investing on Bitcoin and hold instead of chasing Bitcoin price movement.

It doesn't seem to me that you are saying anything different from me... even though you are saying it differently from how I said it, but our conclusion still seems to be the same, which is to emphasize investing rather than trading... even though I am accepting that some folks might trade  so I suggest a limit of no more than 10% for the very beginners and 30% for those who have been trading longer, even though surely I would not even want to go as high as 30%, but we know that degenerate gamblers (traders) will want to go up to 30% and they will even want to go higher than 30%, just like the original post stated with 50% 50% as if that were even close to reasonable.

I don't!, no stash for trading all that just for BTC investment and HODLing so on, how to accumulate using DCA strategy.... 30% of monthly income for BTC investment and the rest for living and other needs.
For me trading is too complicated and there is more risk of greater loss than profit, here we have to understand all the patterns that are needed and the pressure of the mind because we have to choose the shitcoin that is traded, so I don't do any trading except BTC investment.

Bitcoin is the only cryptocurrency that when you invest in for a long period of time, you will get profit from it and not those other shitcoins. I can see that you hardly talk about bitcoinm and the only time that you mentioned bitcoin was to use it for purchase of stuffs. I guess that you don't know the potential of bitcoin when you hodli and this is why you are talking about trade and spending your bitcoin. Anyone that don't get paid with bitcoin and he is spending his little bitcoin that he has to buy goods, night end up regretting his actions later.

 Bitcoin is seen as a good investment that gives profit when you hodli and continue accumulating to increase your bitcoin investment potfolio frequently, through DCA. I will advice you to forget about trafing of butcoin in your mind and think of going into a long term investment and hodli to your bitcoin, and at the same time you can continue to buy weekly or monthly to increase it. The earlier the better for you if you want to also benefit from bitcoin,but you must hodli for like 4-10yrs. This is because your profit will increase base on the timeline of your investment. Also make sure that you have enough fiat with you to take care of your needs and for any emergency that occurs during this period so that you don't end up going to sell your bitcoin, because this will kill the long term investment plan. Shitcoins are worthless and a waste of time because it is not an investment.

You don't need to think of trading as traders can never be patient because they will always want to outsmart the market and it is very difficult to know the price movement of bitcoin, this is why when the see a little pump or dip, they panic and sell to regret their actions. It is not compulsory for an investor to wait for the dip before he can build his bitcoin porfolio, because any investor that want to time the dip, night end up missing out since nobody can know the bottom line of the dip. This is why the DCA method is the best because it is the fastest way to build up yout bitcoin portfolio, since you always buy disregarding the price of bitcoin at that moment. Buying at the dip is very good and that is why this as you are DCAing, you should also keep dome funds in reserve for buying at the dip.

I agree with you that there are some people who do happen to maintain both a trading stash and an investing stash, and how much is allocated in each would be a personal decision... Personally, I believe that any more than 30% allocated to trading is going to put a person in the wrong mindset, and there might need to be some other guidelines in place for the trader, so that s/he does not continue to deplete the HODLing (investing) stash if the trades are happening to not go very well... no more than 10% in shitcoins and no more than 30% in trading, and perhaps if someone puts 10% into shitcoins, then s/he would ONLY be able to put up to 20% into trading because there is almost no way to justify being into shitcoins as anything other than a form of trading..

And, yeah in this thread, we are not talking about trading, so in that sense, any kind of acknowledgement of trading should probably be aimed at deemphasizing it and/or giving it way less than anything close to 50/50 as if it were something that any regular people should be considering, even if we know many of them are lured and propagandized into believing that there is some kind of benefits to including a trading strategy, when that surely is not the case for an overwhelming majority of people and probably an overwhelming majority of people should start out small if they do want to dabble in trading and maybe even limit that to less than 10% of their BTC stash, and if they engage in those kinds of practices, then they will be prioritizing the right thing, which is investing rather than trading and/or gambling, but on the other hand if they feel that they learn the trading skills, then maybe they could increase their allocation to no more than 30%.. not 50%.. 50% is just crazy and probably even professional traders should not be doing that... but hey, they can figure that out for themselves, even though here, we are neither addressing the concerns of professional traders and likely we should even be de-emphasizing trading so much as to only acknowledge its potential usefulness as being a very small portion of our BTC allocation in the event we were to want to attempt to dabble in such likely to be stressful, time intensive, and even likely to be losing our money practices.

I believe investment can change people's destiny. Crypto investment platform is one of the most promising investment platform out there.  By investing in crypto platforms we usually mean investing in Bitcoins. Many people have changed their careers by investing in Bitcoin.  There are many differences between a common man and an investor. A common man will pass his life normally but an investor has the possibility that he will get something very good from his investment at some point and in that expectation an investor invests. Those who have investment can dream and have hope but those who have no investment have nothing to dream and have no great hope for the future.  
Investing in a crypto platform is not just about buying a coin, but an investor's high expectations around that coin.  

One thing I have noticed well is that those who believe in long-term investment are right. Many invested while the market was under $20,000 and from there we saw the Bitcoin market turn upside down, but after going down, the market turned positive again to $25,000 to $26,000. When the Bitcoin market was between $20,000 and $26,000, an investor could have sold his investment and made a small profit, but those who didn't sell their investment at that time now see double the profit. If you look at their profits at this time, you will see that their profits have increased several times in the future, so from this point of view, it seems to me that those who believe in holding the investment for a long time, have got better from the investment.

The main option is also not wrong because some people may divide their fund allocation in half in investing. I mean they apply 50% for the long term and another 50% for daily trading or they buy when prices are low and sell when prices are high. So of course they can allocate the profits they get for long-term investment. And it's also not wrong because they take advantage of dips to buy and sell when prices are high and also they have long-term investments in the 50% of the funds they own.

Every strategy that is best for gaining profits is definitely of great interest to traders and they will apply the best to collect BTC for long-term investment. Apart from that, the moment of decline is always the best choice to buy more aggressively with what they have done before. So I also agree with you if you buy at a low price and hold it for the long term.