Topic: Buy the DIP, and HODL! - page 488. (Read 136036 times)

Do you really think others think of what you do or what you think maybe your general overview about bitcoin progression? This why most people doesn't care about their investment plans but rather what they think of is their profits as they want to utilize and maximized the profiting aspect of it rather than keep holding for a long term, even though most people here keeps yelling about the hodl hold we know that at the back when the price became much eyes appealing they might got tempteyand push out some of the fractions they felt is worth disposing at the cost of profit booking or profits utilizations.

Yet we can't questions their choice of action and options since that is the real reason and motives they got associated with bitcoin, but yet are lacking the vision to know that holding for decades is where they would derived extremely joyous or profits but are subjected to have it coming slow as present of gift or kind of patients to watch while their increase and profits are being numerating as a subject of change in their capacity to hold for decades because that is their oversight overview of the future without having the long time projections towards their investments.

Even if you decides to present a whole lot of btc to such people or person they can be still tempted to disposal it at the cost of little changes to the difference in dollars while still are holding same values in btc, since 1.1btc still remains 1.1btc but has been subjected to change in dollars value which at present could worth $33k plus but can not bear the watching while draining gradually in dollars, that is why most people do not care how much units of bitcoin they are holding rather dollars equivalent are being driven to forcefully disposed their bitcoin at cheaper rate at the cost of profit booking or maximisation.

I fully agree with you. The more you accumulate the better it gets. If you see historical DCA chart for Bitcoin then best results are generated if you accumulate for 4 years or more. We can say that the more you HODL then better the results will be. Of course we don't know whats lies in the future but the historical price chart gives us an idea about what strategy we can adopt. As a beginner your first job is to understand the market and start your accumulation cycle.    

It is normal for a long-term investment portfolio to have a large amount of Bitcoin investments, but it is unusual for a deep investment portfolio to have a low Bitcoin investment. When long-term investments are mentioned, the name Bitcoin comes up naturally. Now we understand Bitcoin as a long term investment. No one would prefer any coin other than Bitcoin for long-term investment. I have a long term investment plan of my own portfolio where I invest 90% in Bitcoin and the remaining 10% in some other coin in the market. Honestly I am trusting only Bitcoin and rest 10% invested in other coins I don't trust that investment but I have bought some coins to build portfolio. I believe the portfolio I have built around Bitcoin in the long term is the right decision for me and I will get a lot out of the investment because I believe the longer the investment is held in Bitcoin the more likely it is to succeed.

Another thing that I would like to suggest, just to supplement my earlier point, is that I was not a brand new investor when I came to bitcoin since when I got into bitcoin, I already had more than 20 years investing and building my investment portfolio, so likely the ONLY reason that I could pretty much establish my BTC position in a few years is because I already had a pretty well established and diversified investment portfolio.

And, it can still be confusing regarding what to do or whether and/or how to tweak one's approach, even when a person has already build up his/her overall investment portfolio to add something as volatile as bitcoin into the mix... so any person needs to attempt to best account for where s/he is at in his/her investment journey and then presumptively if we are in this thread, we are building the bitcoin portion of our investment portfolio, and sure some people do not have other assets when the come to bitcoin, so their approach may well be a bit different from someone who has other assets, yet there may well still be some similar principles including trying to determine how aggressively to accumulate bitcoin without putting one's self into a position that s/he is at a lot of risk of getting reckt, because then that is no longer investing, but instead gambling.


We are not talking about those short-term strategies of buying low and selling high here, even though surely if you accumulate BTC for long enough, you likely will end up getting into a position in which you have options to sell some or all of your bitcoin, and if bitcoin is a life journey then there would be no need to completely sell your bitcoin, until maybe when you believe that you are at end of life and you don't really have much if any inheritance plan.


Even if you reframed it as "profit booking" we are still not talking about that here in this thread.  If you have a long term plan of buying BTC, then it likely is not going to matter if you continuously bought even at tops, because maybe some of the shorter term folks might have 4-10 years, but some of the longer term folks might have 15, 20, 30 or 40 years in which they are either accumulating and/or maybe getting int maintenance stage that either leads to liquidation or maybe when in maintenance stage for a while, then shaving off bitcoin here and there becomes one of the options and the person is not getting distracted by dollar nonsense of "booking profits" because all of his coins are profitable..

and yeah some of the BTC are more profitable than others, but why would it matter if s/he is shaving off 0.000001 BTC at a time when BTC prices might be in the 7 to 8 digit territory and most of his coins were gotten in the 4 digits and the lower 5 digits territory....and so maybe even some might end up getting sold in 6 digits rather than 7 or 8 digits, but still when we are looking at potential for magnitudes of BTC price moves within the timelines of some of the current BTC accumulators, why would s/he want to screw up his/her whole BTC accumulation by fucking around with taking profits in dollars when the whole weight of value may well end up hinging upon accumulating BTC and not running out of them too soon.

Exactly and I personally think this is where experience and understanding will function in navigating the market well and knowing about the market. If we can combine all the elements that are considered important, even though there are also friends here who still use other different strategies.

Sleeping well is necessary. With the DCA technique users can also minimize the impact of drastic changes in the market without worrying too much about sudden price changes. BTC is a valuable asset.     

Hmm, there's a point that is mostly overlooked by the newbies / beginners while accumulating Bitcoins, after doing basic research when they prepare their DCA plan and start accumulating after spending a portion of time in the market they realize the profit booking and re-entering (Buying) the market on a particular price range, most likely they can get trapped by the market whales and such action leads in capitulation, I had suffered it on my initial time.


I think everyone considers the fact that the market structure can't be predicted but still, we can speculate some price range using the On-chain activity & market sentiments with that being said as I've said be a multiple strategy adopter if you can understand the market, You're already doing DCA and you've already targeted your goal and timeline of accumulation. Now as a smarter one prepare some backup as well, if you're doing DCA with X amount at least a small % of additional funds in stable currency to make entries in the Volatile dumping market. No one is recommending anything here we just discussing all possible ways.

DCA fits perfectly for everyone but now from start to end you don't need to just be dependent on the DCA only, customize your strategy of accumulation with your market understandings and experiences in the market like Hybrid DCA.

I agree with you @Jay people are easily distracted when it comes to shitcoins, they don't even consider the risk associated on shitcoins and in most cases shitcoins are being manipulated by social media influencers because they uses some strategies of bringing a false rumors about a particular shitcoins and before you no the price will skyrocket and they made there profit and in few hours or days it drops way more than the previous low and leaving the investors hanging with there investment.

So understanding all these things I don't no why most people will still choose to invest on shitcoins, or maybe perhaps just like you said @Jay maybe they see shitcoins as a get rich quick that's why most persons chose it.

Most of the investors both new and old always targets buying DIP and most in bitcoin and hold to make profit when they arises to sell, and what is the target of someone who buy dip is to sell when their is a bullrun and this has being the method of people right from time, but recently some people don't think of such strategies of buying DIP and hold for long-term, what they are interested is making profits whereas they have no applications  to make a profit during their investment.

The thing is that buying when the price is low and sell when the price is high has being possible tactics for most of the investors why their is every possibility that you can buy in dip and expect it to increase and it happens to be going more DIP, so let us not only hope for one strategies of accumulating our bitcoin, let us device other means of accumulating our bitcoins because sometimes predictions do fail and we don't have anyone to be blame when it happens.

I agree with your opinion that long-term investment requires patience and a level of foresight for those in accumulating Bitcoin. like the current situation where we have to adjust a larger budget to be able to collect 1 Bitcoin and that is of course very different from the history of those of your who bought it in 2014, 2015 and 2016 because at that time the price of Bitcoin was quite cheap and lucky for those who bought in large quantities big at that time.

Even so, we still stick to our respective positions because if we want to have some BTC in our portfolio, maybe we have to be diligent in buying every dip that occurs. DCA is one of the best strategies for long-term investment and can be applied in various situations. I mean if we miss one or two stages, we can cover the gap by buying aggressively in the next stage.

Sure there is a bit of a problem with a lump sum investor who fails to take further action, even if making lump sum investment at a relatively good price and not doing anything because his her BTC are mostly in profits after the time that she he bought.

For example, take the Hypothetical 1, lump sum buyer who bought 21 BTC in 2015 for $6,300  (average cost of $300 per BTC)

Right now he would have right around $603k .. not bad, right?

And compare that person to hypothetical 2 who bought $100 per week starting in June 2015, and he would have spent nearly $44k and accumulated 26.2471 BTC (worth about $753k and an average cost of $1,676).

or compare him to hypothetical 3 who might have lump summed into bitcoin and continued to buy $100 per week
and he would have spent right around $50,300 ($44k + $6,300) and accumulated 47.26471 BTC (21 + 26.2471) (worth about $1.36 million and an average cost of $1,064).
 
Which one would you rather be?

I think that the person who ongoingly invests into bitcoin is not ongly going to be better off financially and psychologically, s/he is going to be more actively paying attention to his/her BTC investment, but of course, people are free to do whatever they like.


Agreed, and part of the reason that it can be good to employ multiple strategies and have contingency plans.  It does not make buying in lump sums bad, but it seems that supplementing with either buying on dips and/or DCAing can cause the lump sum buying to become even more profitable than what it would have been, including that maybe the lump sum investing had also allowed a decent amount of front-loading of the investment that would not have been accomplished through either a DCA and/or a buying on dip approach.


You are correct Agbamoni that sometimes members are calling what they are doing by the wrong labels, so it might be a bit unclear regarding what they mean exactly, and I am not even suggesting that a person needs to strictly follow any particular strategy, but it still is good to know the difference between each of them in order to attempt to better understand what you are doing and if you might want to change your strategy, or supplement it with other methods... but sometimes you might think that you are buying on dip, but you keep buying regularly which is a form of DCA, and then you think that since you are using your bonus money, then it is kind of like lump sum because it is not part of your regular cashflow, and surely all of that makes sense, but it can be confusing when people categorize their behavior as if it was purely falling into one of the categories when it really is a kind of hybrid.


You had me all the way, until I got to your last sentence.... and selling is not a necessary basic technique.. especially for beginners and maybe even folks who have been in bitcoin for less than 2 full cycles.

Buying once is also a very good method but the strategy is bias in the sense that it only favours those that are rich and have big capital to invest into bitcoin at a go. This method has a lot of advantages and a few disadvantages which are negligible. In its advantage; you’ll get to buy bitcoin as much as you can with that much capital you wish to invest into it, if the price goes up soon in the future and doesn’t come down again till bull run, you have accumulated a lot and the person using DCA won’t have such amount as you’ve earned with the same amount you invested in it initially. Unless they continue their DCA method to beat your total number of bitcoin held in the portfolio which will cost them more.

And the only disadvantage of it is that, when the price goes down and a person using DCA was able to accumulate more at that price, they would be able to buy more bitcoin than you in the long run since they’ll still continue employing the DCA strategy until they reach their target. They would spend lesser than you to get the amount of bitcoin you hold or even more than the one you hold in your portfolio. Buying once and the DCA method are all good but you just have to employ the one that works for you more, without having to touch the savings because 1BTC will still remain 1BTC until you take out of it.


This is a very wrong mindset to have when you want to invest in bitcoin. No one can predict the market structure, so it’s not advisable to keep hoping for a particular price before you can start your investment in bitcoin. While waiting for that price, you might have missed the opportunity to buy at the lowest price you’ll get it. This was why the DCA method was introduced and it has been a good way to accumulate a lot of bitcoin for investors in the market. If you check this strategy, it works for all class of people and not limitless to people that can use it. So, instead of waiting for the DIP, take the first step and start your investment now.

I totally agree with what you have said so far, and I do say that it is very difficult to find out the right time that Bitcoin will be at the bottom. Today I can say that Bitcoin was about $28,900k but within some little moments it started going down to $28,600 and lower, but didn't go below the range of $28k and, so far, the past few months, I can tell how bitcoin was in the range of $25k, and I do say that the $25k was the bottom for these months.
We can not tell the actual bottom unless Bitcoin has increased in a skyrocketing way and that is the reason why I have said that the $25k from the previous month we have experienced, and that is the bottom of it, and now, while looking at the price, it's $28k.
It's good to hear how you have applied the DCA strategy to your anthology, as this is the time to use the strategy to accumulate.

I can tell you for a fact that the DCA method is always a good strategy irrespective of the market condition. The advantages far outweighs any disadvantage you might envisage. Just know why you are buying Bitcoin and allow DCA help you achieve your target with less worries.
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With what you have said so far and with the little knowledge I have, I do say that the DCA method is one of the best that an investor should use to accumulate more Bitcoin, because it can still help them in one way to learn how to reduce their expenses so that they can accumulate more coin without any worries about how badly the investment is going.

Your statement is not correct.  Lump sum and buying on dip are two different concepts.  Sure, they can be combined, but it is not accurate to proclaim that either they have to be combined or that we should strive to combine them.. In other words, sometimes it might be better to just buy rather than waiting for a dip, and if someone has a lump sum of fiat that is available to be invested into bitcoin, then there there are options regarding how to divide such money into the three main categories, which is 1) DCA, 2) buying on dip and 3) buying right away.. and even within the three categories there are likely various options regarding how to structure. including amounts, spreads, increments.


I doubt it.  You can weigh for yourself the advantages and disadvantages of any of the buying methods, whether DCA, buying on dips or right away, and advantage/disadvantages might depend upon what you might be attempting to achieve.  Sure if you are wanting to attempt some kind of maximizing the potential for you to get as rich as possible and as fast as possible, that might not be a clear enough wish because we cannot know exactly how the BTC price is going to perform, so we cannot really set our strategy in a way that will assure to reach our goal, but instead we likely need to balance our strategy with various scenarios in order to prepare us financially and psychologically for a variety of possible scenarios, even if ONLY one scenario is going to end up playing out, but we don't know which of the scenarios it will be even if we likely attempt to structure our practice in terms of what is most likely to play out, but it would still result in poor risk management to completely structure our approach as if what we consider to be the most likely scenario as if it were 100% guaranteed to play out, even though we might have had assigned such scenario to have the highest probability of playing out.


I doubt it.

You first have to presume someone has the ability to do lump sum, and then you are looking at a smaller group of people as compared to just saying "most people"  Most people don't do lump sum is because they don't even have the possibility to do it.  So if we then presume that they have the option, we still might recognize a variety of reasons that absent some peculiar circumstances, many of them might not want to lump sum with everything that they have available, even though they might choose to lump sum with a portion of it.  Someone who has $10k that s/he is able to invest, might choose to lump sum with 1/3rd of it $3,333.33  .. or perhaps some other amount, and may well divide other parts into DCA and buying on dip reserves.. But sure some of them might choose a different percentage and might choose to not do DCA. and may choose to wait for dips, and sure they might end up screwing themselves if they wait for dips that do not end up happening, but yeah people do dumb things because sometimes they are either greedy or scared and don't know enough about their investment, but merely because people do dumb things, we shouldn't necessarily presume that everyone is doing it .. or most are doing it?


ok.. we are not really saying anything differently, here.


No problem.  When you have a lump sum amount, then you have discretion regarding how you want to structure your buys.


You are not exactly wrong, but I would suggest that one of the most crucial aspects is to attempt to tailor your plan to your own particular circumstances, and perhaps from time to time, you need to review the extent to which your personal circumstance might have changed enough to change what you are doing.  So it is good to have goals and targets and to tweak from time to time, but sometimes you could end up having long periods of time in which you are not really making any changes and just sticking with your same purchase amount.


I am not in the same phase of my investment journey as the overwhelming majority of the population, including members participating in this thread.  An overwhelming number of the world including members of this thread is either in accumulation phase or pre-accumulation phase.  Even though I accumulate from time to time, I mostly went through my BTC accumulation in 2014, 2015 and 2016, and sure sometimes it can be difficult for any of us to know where we are at in our bitcoin journey, but I doubt that it is going to be very helpful to attempt to do what I am doing when it does not really apply to what you likely should be doing. which is accumulating bitcoin and tailoring your bitcoin accumualtion to your own circmstances.


I personally believe it is best to get your shit in order in regards to bitcoin first.  Why fuck around with shitcoins, except maybe up to 10% of your bitcoin size, but even then if you invest in shitcoins, you are distracting yourself and you are diluting your bitcoin financials.

Yes, I know people are easily distracted into shitcoins and believe that there are ways to "get rich" quicker by fucking around with shitcoins, but the mere fact that a lot of folks are distracted into shitcoins does not mean that you should allow yourself to get lured into such overwhelming nonsense and gobble-dee-gook.. especially if you don't seem to know what bitcoin is, and you seem to have had not established a decent bitcoin position, yet..


Yeah, but the odds are not exactly equal that the price might go to $20k or not, so even if you consider that the BTC price might go to $20k, sure there is no problem in terms of preparing for such possibility with some amount of your available resources, but if you don't have any BTC or you have ONLY a little, you should probably be buying rather than fucking around with waiting for something that has decent odds of not happening..

So, how you prepare for up while simultaneously preparing for down partially will depend on how many BTC that you have but it depends on alot of your circumstances regarding your cashflow and your other assets and even your goals, so if you have $100k in your overall investment portfolio and you have $10k in bitcoin (that's 10%) and then you have some cash and some cashflow (maybe $100 per week extra for bitcoin and maybe $5k saved up for buying on dips), then you have to figure it out. How much of that saved up amount are you going to allocate to bitcoin buying as the money comes in, saving to buy on dips,  and how are you going to allocate to each of those categories... it is not obvious to not buy now or to wait or even to divide it 50/50, but some people are more inclined towards gambling than others.

Another thing is that BTC prices are not very much above the 200-week moving average (which is now about $28,200), so it is not exactly as if the BTC price is in a historically high price range.. and yeah the 200-week moving average does not exactly tell us that we are in a bottom, because further dips can end up happening, but still sounds like gambling to me when you are seeming to assign such high expectations as if $20k were equally as likely as $35k or whatever it is that you are wanting to proclaim.

Rightfully said, buying the DIP and holding is another effective strategy most persons apply to accumulate there Bitcoin. But no skills can be 100 percent accurate in predicting the price, so why not buy at specific intervals at that price instead of just hoping on the dip alone

This is the concern  , Stictions don't own reliability and DCA works with only potential/reliable assets here in the crypto market this supremacy is only dominated by Bitcoin. Here is a point to be considered these shitcoins are worth with hype only and they don't possess any long-term potential and narrative. Intentionally what I want to say is Yes! Fuck Shitcoins.


The accumulation journey in Bitcoin can face many ups and downs here, the efficiency depends on the accumulator and how he executes his strategy throughout the journey. DCA is a most recognized and effective accumulation strategy, moreover, you can say that this is one of the most discussed topics here in this thread and particularly all over the forum. Buying the Dips can be another effective strategy but it requires some analysis skills and proper risk management. At the same time with respect to market volatility strong holding power is required which is rare.


Navigating the unpredictable waters of the market, especially for newcomers, can feel like riding a rollercoaster. The ups and downs, the sudden shifts—it's enough to trigger fear, uncertainty, and even the notorious FOMO (Fear of Missing Out). These fluctuations, natural as they are, can sometimes make you question your decisions, sow seeds of doubt, and give birth to the infamous FUD (Fear, Uncertainty, Doubt).

Hmm, Yes buddy your consideration is more efficient, This is what aformentioned by me, with DCA you can integrate other strategies and keep enforcing your  DCA regularly. Timing the Dips is a significant concern but if you can identify the timeframe and zone you can really time the dips as beginner still its not recommended at all.

If you can save money and invest in some reliable sector (which you can handle yourself) then there are bright chances that you will get success over a period of time.
I know a person story who has just a small job in Bank and he is accumulating cement shares for last 20 years for 10% of his monthly savings. His net worth of cement shares is now quite high and he has now achieved his Fuck You status.
With time we learn new things and that gives us idea whether we are moving in right directions or not that's the main reason why people who invest for long term are more likely to achieve there fuck you status.


For accumulating Bitcoin, the best way is to do it in DCA manner or investing small amount as and when available. You were talking about 200$ per week, this is quite a money for many people like me. Whatever one can invest easily and for long term is best way to accumulate Bitcoin. The reward is high on high amount but for that don't push yourself to things like taking loans for investment. Just be consistent in buying and don't forget to cash out some portion when you are getting some good profit.    

you just talked about bottom line of the dip, how do you know when it gets to such point. Bitcoin price could be stable at 23k for months and there you think the bull has started unfortunately enough there will be another dip, so this is where DCA heads the system of accumulating Bitcoin

There is no time at which it is said to be unfavorable in buying Bitcoin, even buying bitcoin at 23k and it dips down to 19k, i should already know Bitcoin is volatile and that should have been on my A list, my 1 Bitcoin remains my 1 Bitcoin and its a must i see my profits as long it is for the long term

Your response seem more like buying the dips than applying DCA. Buying 1 BTC now and expecting or waiting for further dips to buy more is not actually DCA but buying the dips.

If you are following DCA strictly in that case you can just decide to use the three months remaining to exhaust that money. One-third of the fund per month is not a bad plan. If price dips further the following month that means more Bitcoin will be added to your portfolio and if price rises, that means less Bitcoin will be purchased for the funds set aside. Since the DCA method do not pay much attention to the price, you will be fulfilled you invested the $100k into Bitcoin.

The beauty of this method is that if price rises the following month, that means the lower amount of Bitcoin you will receive the following month due to the rise in price, would have already been compensated for by the first month purchase that would have entered heavy profits following the rise in price. If in the third month it rises further, the previous months will do likewise to the higher price purchase, meaning in dollar value, you are not loosing.

Lucky for you, you did not fall for the temptation that arises during that period. It was nice to know that you were fast enough to learn about DCA when you came across it, only a few would have adopted it. Your experience so far is exactly why advisors typically have people DCA. Statistically they would say you can't speculate the price of Bitcoin so put it all in. However, there is usually some uncertainty in the market that would make the investor to be concerned about this, so if you decide to DCA and you either buy into a decline market or an appreciating market you will kind of feel good either way. DCA aims to assist investors in overcoming the emotional hurdle of making a huge investment and then witnessing its decline.



What you just said would it still be considered as a form of DCA'ing if you invested a lump sum at consistent intervals over a longer period of about 10 weeks like you said? 
Does that still qualify it as DCA'ing?

The challenge with seeking the bottom is that there is no technique that is accurate in predicting what the bottom is. If you remember, just few months ago Bitcoin price was stuck around $29k qwhich made many people assumed that was the bottom. Many bottom seekers went long in line with what you have said. Little did they know that price will dip lower to even below $25k thereby proving once again how difficult it is to determine the bottom.
I was actually tempted to go all in that period before I learnt DCA and setting limit orders following conversation in this thread and WO. I have to spread my position to lower prices and when the dip finally happened, most of those positions triggered at lower prices thereby giving me more Bitcoin than I would have gotten.

Now I apply the DCA completely and I hardly pay attention to the price, the dips, news or whatever... I just buy the amount set aside for Bitcoin. This truly brought a whole different feeling and peace.


I can tell you for a fact that the DCA method is always a good strategy irrespective of the market condition. The advantages far outweighs any disadvantage you might envisage. Just know why you are buying Bitcoin and allow DCA help you achieve your target with less worries.