Topic: Buy the DIP, and HODL! - page 483. (Read 136070 times)

Like some months ago, we were speculating that the price of Bitcoin would go high by the end of the year; as a matter of fact, I even speculated $40k to $50k, and by then no one was certain what the price would be today. Even if anyone was certain of what they strongly believed the price would be, it could still not be what they think it would be because they are not in control of the market.

Right now, no one can say for sure which direction the market is headed—if it will keep rising or dropping—but one approach investors should not set aside is the DCA. There are definitely some people who want to invest in Bitcoin, but they are scared that the price might fall again, so they feel they should hold on. The question is, what if the price continues to surge through this year until the halving period? I don't think anyone would prefer to sell now that the price has not even risen to any length, and the person selling now cannot even tell if the price will get to $50k before December, and if it does, they will begin to regret why they sold now.

My advise to beginners and long term investors with little resources is for them to begin with the DCA method rather than the lump sum. It gives them the ability to manage the crisis that are in the investment couple with they have smaller funds to invest. As a beginner, you have less control of emotions to things like this, and in the event that you are faced with bad timings of purchase.

Also, as a beginner, you have less resources at your disposal and more desperation in the Return of Investment, to be able to get it right, start with the DCA approach. But one will realize that as you invest in this, your expectations will be minimal.

The best part of this investment apart from its less funds to invest or lose, is that you do not necessarily need to have a very large amount of money to be able to invest before you can start benefiting from the market growth.

We still realize that ongoing BTC price performance to the upside is not guaranteed, but if we do not fuck around with the amount that we invest (by using leverage and other forms of extreme risk taking), then the most that we would end up losing in the worse case scenario is 100%.. while at the same time, there seem to be decent chances of BTC prices continuing to gravitate upwardly, there are a variety of upwards scenarios that support BTC price scenarios of 10s, if not 100s, if not 1,000s, of times higher than current BTC prices, so there seems to be some logic to putting value into BTC and taking chances on bets that have decently good upside asymetry, and surely it might be good to be aggressive in terms of investing in bitcoin, yet even if some of us might decide not to be very aggressive, some of the non-aggressive persons will also end up being quite a lot better off by investing into bitcoin as opposed to choosing not to invest in bitcoin.

Think of the guy who started investing in bitcoin with $10 per week at the top of the BTC price market at $1,163  in late 2013.  He would have had invested $5,170, and he would have accumulated right around 4.62 BTC.  Sure, he might not be rich, but he has more options and he also has a pretty decent amount of value from a pretty low commitment amount..  Of course, the guy who invested 10x that $100 per week would be 10x better off with having had invested nearly $52k and with 46.2 BTC, but the one who invested 10x more may also had to have had struggled more in order to be able to invest that amount of money as compared with the one who had merely invested $10 per week, and so my point is that sometimes even whimpy investing into something like BTC could end up paying off decently well if there is a long enough timeline, and at the same time there are still no guarantees of good or great performance even though the investment thesis for bitcoin does not seem to be getting any weaker.


I think that the earlier you are in your investment, the more difficult it can be to just keep plowing away at ongoing DCA buying, such as $10 per week or $100 per week, whatever might be the chosen amount, and surely it does not get completely easier, but with the passage of time, there likely can develop increasing confidence, such as 4-10 years of DCAing into BTC could have decent potentials to add up to a decent amount of value.

While you are ongoingly and continuing to invest into bitcoin, there are likely needs to get other aspects of your life in order too, and whether you are able to increase your cashflow or to decrease your expenses, you might need to figure out ways to be moderate and maybe even reward yourself from time to time with some levels of consumption, so long as you are not completely depleting your efforts, after several years of investing, you might choose to either shave off some of you investing into bitcoin or maybe just take from other sources of income or cash reserves that you had been building up and reward yourself for your good efforts... but at the same time, you might get yourself into a bad situation if you believe you constantly need to be rewarding yourself, and there are going to be various periods of investing that even in the middle of the investment you start to feel like you need to cash out some because the asset is too volatile for your own psychology. 

Whatever you decide to do, it is probably better to plan it out rather than being impulsive, and it seems that buying on the way down and selling on the way up are the better basic ideas to stay ahead of things and let the price come to you rather than reacting.. yet since this thread is about buying strategies, we are mostly trying to consider those kinds of matters rather than the various ways that each of us likely need to make sure that we are keeping our house in good enough order that we are coming to bitcoin with a stable psychology and stable finances, and likely if we create conditions to stabilize our finances, then psychology will likely go along with those kinds of preparations.

With the strategy we are currently using, there is clearly no doubt that we will continue to enter and consistently carry out DCA every certain period. People who have long-term targets will clearly not hesitate to continue investing.
I am one of the very lucky people, because while doing this strategy I found this forum, and it was very pleasant when there were many people in it who really inspired me to make me fully believe in investing in bitcoin with this DCA strategy.

You might be right or not to say that it is because we are in the month of October that is why the price of bitcoin is at 34k+ but don't also forget that we have news that SEC will approve ETF bitcoin by January next year maybe this might also be the reason, and what if SEC fails to comply to the date, what next.

In regard of talking about next month is Bitcoin price will continue with its pump is what nobody can say because what if the price dumps. We shouldn't bother about the price and month that we are on as we haven't gotten to the halving yet, because there might still be a dump before December or by next year before the halving based on past records. What we should focus on is to make sure that we continue with our regular DCA method to keep on accumulating more bitcoin instead of being carried away by the present price or what will happen to the price, the next day or month. That can make one stop accumulating or reduce the amount that he is using for DCA.

I almost fell for this early this week when the price started to pump but I later realized that I don't have any other option than to continue with my regular 10% DCA, rather than getting confused with what price will bitcoin be and what step to take that will be the best strategy to increase my bitcoin portfolio. This is a lesson for me and is peradventure bitcoin price dips belown 30k, I might increase my DCA with additional 3%.

It is people that lacks patient and are very greedy that will be eager to make profit by selling now and they will be surprise and fustrated in the nearest future. And for those people that think that because the price has pump to this price, that they should stop investing due to the little amount of Satoshi that their regular DCA cash can buy. They are getting it all wrong, it is better that you keep buying, no matter how little it is. Before you will know it you would have bought some fractions that you will have never expected. Fear, Panic, inconsistency, lack of patient and greed is a barrier to long term holding and growth to your bitcoin portfolio because it these are all what can control our emotions to make a decision that we might finally regret.

This is not something easy because it deals with the emotion of the person and if they can’t first control that emotions, they will always sell at a panic hoping that they’ve escaped the market volatility into not losing all of their money. The reality of such action is that they will be at a loss already, since the market already gone in contrary to their expectations and loss some money already. At that time a BTC worth $100 for instance would have been less than $100, but the number of BTC holdings will not change; that is were the narrative of 1BTC will always be 1BTC as long as you don’t sell them out.

If you’ve started DCA by then, it was suppose to be the right time to accumulate more when the market was on downtrend and the value of a BTC would have reduced drastically. If you’d bought a $100 worth of BTC earlier, buying another $100 worth of it this time will give you more number of BTC to add to your holdings at the same price. With this action, you’ve now leveled your portfolio and brought a worth of BTC in the portfolio at a price less than $100 each when calculated. The conclusion of it is that you will earn more BTC in a year time than the one that doesn’t do DCA but only buy at high price and sell at low price due to panic.

By staying focused on the DCA method, someone will not be too influenced by what is happening in the market. They still invest a certain amount of money every week or month and buy bitcoin, whatever the price on the market. And that's good for them because they don't panic and have no desire to sell their bitcoins. After all, their target is long term.

Beginners who invest in bitcoin using the DCA method do not need to observe the price of bitcoin and they are different from beginners who trade in the market. Those who trade must always observe and pay attention to prices in the market and then analyze them to get time to enter and exit the market.

If Bitcoin is invested in the DCA method then no other concentration can ever be considered. Because you are depositing a small amount of weekly or monthly income to invest in DCA method. Because investing with DCA method you will never understand the market because even a small price increase will make you think to sell, and you may sell your assets due to greed. Investing in the DCA method is a long-term investment that will help you achieve success. Investing for a long time definitely does not face greed so DCA strategy method is the best.

You are right on this... checking price regularly is not a good habit. It could lead to taking unmeditated decision. Considering that Bitcoin is so volatile,  constant checking of the price can bring some form of psychological mirage that might actually damage one's plan.

The DCA method does not really consider price as a factor because the focus is to buy predetermined amount at certain times. Even though the temptation is high, it is necessary we resist the urge to continually look at the price.

Don't worry I am a New Person now and  Gambling is less my priority though still playing some time but just a little as i can afford to lose,  and thanks to my Wife that never leave me from my darkest days.

and also thanks to JJG for keep inspiring Bitcoin users/holders with unending advises and worth listening topics.

Well , with His years of experience and Knowledge like what said , there is no hurt in trusting the people you know stands for everyone's benefits, and besides we have nothing to lose because in the end of the day Bitcoin is still our currency to hold.

Yes.. a lot of people have this issue, and maybe they have to figure out some kind of a way to invest less and in an ongoing kind of way in order that they recognize and appreciate BTC price dips as opportunties to buy more rather than either lessening their position or stopping their DCA (or their regular buying) right during a time frame in which they should be attempting to remain consistent and persistent in their buys.

And similar things surely may well be happening currently, when guys start to think too much in terms of the dollars that they could get by selling now, and it is really hard to know if the BTC price isn't going to keep going up and make them regret their decision.. so it is difficult to hand-hold all of the people and each person has to kind of figure out these matters for themselves, and sometimes, we can see really seemingly smart people doing dumb things when it comes to their finances, and part of the reason is because they have never really been able to live with a kind of deferred gratification mentality that they can cause to last for years and years.


I doubt that the price dynamics of bitcoin gives too many fucks about what month it happens to be. .and yeah sometimes there are various macro-factor forces that are working on pushing bitcoin's prices during certain months, but there is a lot more going on in bitcoin besides trying to figure out what it may or may not do based on what month of the year we might be in.

The position that the bitcoin price is heading to, is what many of us don't know whether it will keep rising above $33k or fall below $33k. Historically, the month of October always has bitcoin rise in price, which it finally did, after seeing it fluctuate around $27k - $28k for weeks.

The month of November will be in a week and we don't know what bitcoin price would be by then. But I believe that the price of bitcoin will fluctuate at a higher price of $35k - $38k in November

Maybe it's quite difficult to explain because those who sell Bitcoin at low prices definitely have problems in the investment they make, such as fear that the price will fall further and there is also no confidence for them to hold it for the long term. If we look at the period last year where the price of BTC fell quite significantly to the $15k price level. Of course we see many people selling their BTC at that time and of course we don't know the reason they sold BTC at such a low price.

However, we as holder, we think they made a mistake by selling at a low price because if they waited a little longer, maybe they could get a better profit from the decision they made. Apart from that, if they play in the waves, the risk they take may be greater if the plans they have made end in failure.

One of the factors that affect most investors is always consistently watching the Bitcoin price movement, however in most cases no matter your intentions of holding watching the price all the time could affect your psychology or emotions that could make you to panic and if not careful it could lead you by selling of your accumulated Bitcoin.

For beginners who just started accumulating Bitcoin using the DCA strategy should be aware of Bitcoin price movement so that they will not be influence to start trading the market because with the potential of Bitcoin this few days price movement will be nothing compared to what is coming.

So let's get started and keep on accumulating with our DCA strategy.

Sure there is a problem with people who sold on the way down, but that does not seem to be the crux of the main kinds of problems that are likely to afflict people who are fucking around with either selling too much bitcoin too soon as BTC prices are going up and even sometimes either failing to continue to DCA, stopping their DCA or cutting back on their DCA because they are trying to play UP and down waves that may well not end up taking place in such amounts that allow them to get a sufficient amount of advantage from those kinds of plays to make them worth their efforts when maybe they just need to continue accumulating BTC without trying to play the waves.

If they learn, better. If they not then they will still learn at the end of it. We all panicked before and the lesson was there for everybody.
If you're not that strong in heart, you'll get out of this market too early and you'll lose your optimism on it.
Learning when to sell and if you're decided to do so, you're the only one to dictate yourself to do such and if they listen to us, good for them and if they don't, not our loss.

You have great empathy for people who have problems with strategies for holding bitcoin, which is a good job in my opinion, because people don't have the same sense of responsibility that you do.

But I need to underline your statement about "it is mandatory to give advice to those who are still in doubt", you need to know that every person is different and many bitcoin holders keep it a secret that they invest in bitcoin, but that is possible in real life with your environment , but in an anonymous forum like this, talking about investment strategies in bitcoin, strengthening each other's minds sharing buying strategy thoughts, I think that we need to do it.

Yes, that's how it should be, we as one of the people who strongly believe in the potential of bitcoin must give advice to those who still have doubts about this bitcoin investment. Because I also became what I am today at first also full of doubts, but over time the doubts slowly disappeared and created me as I am today.
I also had a moment where I was very panicked and ended up doing something I shouldn't have done, namely selling bitcoin. I did that at the beginning of my introduction to bitcoin, and of course it became a regret.
Now I don't want to see other people regret what I experienced, and one of them is always giving good news about bitcoin (not forgetting to educate about the risks too). If I have done that then for the next they determine, I only give advice without coercion.

But for some people, even though they have a very good understanding of Bitcoin, its value proposition, how it works technically, its incentive structure, its ETHOS, they STILL sell in panic. Why? Human Emotions. To tell everyone the truth, I almost sold in panic a few times too. But my cold-storage set up stops me everytime.

 

I literally have an offline computer storing all of my Bitcoins purchased from 2018 and 2019, and moving them them gets very, complicated. It stops me from making an impulsive decision. Plus if you want real cold-storage don't use a hardware wallet.