Topic: Buy the DIP, and HODL! - page 489. (Read 136036 times)

Lump sum buying is more of advantage when bitcoin price is at the bottom line of the dip, at this time, all you need to do is to buy once and just sit down and watch how the price starts going up again and your investment will also start increasing with the timeline. Apart from that time, the DCA method is still the most welcome strategy to use in buying bitcoin, this can also help you have plans on some other investment you want to diversify to.

The DCA method is not for only the low income earners, it is used by everyone, but the rich and the poor to accumulate bitcoin at regular interver to increase their bitcoin investment portfolio at ease, since they have the passion to keep on accumulating. Since it is very difficult to know when the dip will come, but if you buy at lump sum when the price of bitcoin is not at the dip, you will not be happy when the price begins to dip below the price that you bought, and that is where DCA come to play because you are buying regular irrespectively of the price of bitcoin at that moment.

Since you have enough money to invest, you can buy one BTC and hold it for a long time. Some of the new investors who are planning for long term investment may face some dilemma after reading this post of yours. New investors may think you are holding for a long time by buying one BTC and their investment is nothing compared to yours thus they may be reluctant to invest long term. If new investors read your post then they should definitely read my post I hope reading my post will clear all their dilemmas.

First you buy one btc amount of bitcoin with your deposited money and hold it for long time but new investors may plan to invest some amount regularly every month. If new investors think like this then welcome new investors for long term investment. Because with the investment of a certain amount of Bitcoin every month, it will be seen that the new investor's investment amount is much higher and the new investor may never have imagined that after a long time his total investment can be so high.
The difference between a person who invests one btc amount of money and a new investor is that the new investor will invest a part of his monthly income in bitcoins and a person who invests one btc amount of money together has invested money together every month. From this point of view, the person who invests every month is more likely to be successful in his investment because if he invests every month, if the value of Bitcoin increases, then that person will definitely profit.

Thanks for explaining this in detail. There are actually many ways to approach DCA, but the most crucial aspect is sticking to your plan with discipline. If you don't mind, could you share the method you're currently using in detail? And aside from Bitcoin, are there any Altcoins you're interested in for long-term investments?
Perhaps, as of January this year, $20,250 is already the year's low, according to your analysis. Currently, there are two conflicting predictions: one suggests that Bitcoin will rise from this point, while the other argues it will drop to test the $20,000 price and fill the CME gap. It's indeed challenging to predict which one will turn out to be accurate. However, I still intend to follow my plan and the analytics I've conducted.

Timing of the market is necessary but not everyone who wants to invest is ready to time the market, the thing is even though you time the market to invest if the market wants to go against your wish it will definitely go against your expectations,  but what are saying to have in mind that two things is involve for investment and they are profit and loss, when you cross the market and observe what the next move for the market can be you can either decide to invest or not.

Do you know that nobody who knows bitcoin too well neglected the disadvantages of bitcoin, so what I wanted us to do for investment bitcoin is that let us not hoping always for the profit because when focus on profit and the market goes against us we will not be delighted, let us understand that bitcoin investment is investment of opportunity and when you profit its  base on your luck and when you profit it's base on your luck it's not do and die affairs were you believe that you definitely make profit..that is what some people arr saying invest and remove mind don't think you make it all with your Timing in bitcoin investment some Timing can fail

I think you get it wrong concerning the point @Jay was trying to make, although I no that everything that has advantage may also have disadvantages but however Jay was given an instance that sometimes using lump sum is good because it gives you the advantage to buy everything at once with a favorable price, for example if the Bitcoin price is $27k or 25k you could buy with the lump sum because there is no much different but however waiting for the price to drop more before buying could sometimes happened that instead of dropping, it moves higher and affecting your lump sum.

Talking about disadvantage I don't think there is much disadvantage of what Jay was saying but however is not mandatory to buy everything at a time perhaps if the price was not suitable for you to buy at once and you are not sure of Bitcoin price movement, you can DCA to accumulate some certain amount while you wait for the right dip for you to lump sum, so I don't think there is any disadvantage on what he was saying.

I have checked and analyze what you said JJG. You have to consistently watch and time the market for the dip to come before you could lump sum. You speak only but a few advantages towards lump sum investing and neglect the disadvantages of it. While most people don't do lump sum is because of market timing. It's not certain to predict precisely when the price dip will occur at any given time, and you don't always have the fiat to hold and wait for the decline, as you're unaware of its timing.

Statistically speaking to avoid wrong timing of the market if I see a lump sum like that I wont buy immediately because of the dip, I will still do it the DCA way but this time huge amount because i see no harm in spreading it out over several weeks or month.

Yeah you have a point, for those who have enough funds that cannot be affected if using a bigger amount to buy Bitcoin can actually buy a higher amount of Bitcoin at a time and however DCA method may not be use for these kind of investment because the investor may already have more than enough money that could buy a whole lot of Bitcoin and still  have many reserve funds waiting.

So irrespective of how important DCA strategy is, perhaps there are some kind of investment or accumulating patterns that may not require the need to DCA because sometimes due to the kind of funds we may have, we can decide to invest at once instead of buying bit by bit, so I believe that DCA strategy is based more on the people that has a low capital and that's managing to accumulate Bitcoin.

I just outlined a way that you can DCA in a way that attempts to capture the dip for the week.  I don't see how that would be inferior in any way for someone who wants to attempt to do it. If you dont' have the time, then it is another story.. just set your DCA and forget it.

I personally am not much of a fan for automatic DCA because or the way that exchanges don't tend to allow specific customization of the times that you buy, but likely are batching the DCA buy times..... .. yet I can understand that people might not want to have to manually make their BTC buys, whether it is weekly or maybe on some other timeframe, and those are personal choices regarding how to spend time, which are going to likely vary quite a bit and may or may not end up resulting in better performance than some strict DCA approach that might end up getting gamed by exchanges if your buy time is being batched rather than being capable of individual tailoring regarding specifically when it takes place.


If you have a lump sum, you can still divide it into parts, and you could decide whether you are going to buy some of those on dips and/or to DCA and/or to just buy right away.

So the portion that you have set for DCA, then you might take 1/3 and just set it up over 6 months or a year or even over 1 or 2 months.

So if you have $33k, then maybe you set them up for $1k per week for 33 weeks or you could pick a different amount per time period .. you could do daily or you could do bi-weekly, monthly or quarterly... there are quite a few options that would just set up your buy amounts based on how quickly you want to inject your purchases whether you want your amount to get put in fairly rapidly or you want to spread it aout for a while.

Many times people are using DCA because either they do not have lump sums available or because maybe they want to pace their investment, such as a person might hold $40k in equities, $30k in property, $30k in bonds $10k in cash and cash equivalents and $30k in gold.  Maybe if the person wants to slim down his/her gold holdings, from $30k to $15k, s/he will decide to slim down by $1k per month over the next 15 months or surely some other time period and amount could be used, but it is a way to pick a timeline to ease out of an investment and also sometimes people might just decide to stop investing in one asset or another and just divert those funds to other assets, and that would be another way to accomplish similar kinds of reallocations, without using lump sums but instead DCAing... even though in that last example lump sums would optionally be available to the person but easing from one investment to another frequently feels better, and may well have fewer potentially negative tax ramifications, too.


Of course, you are correct Dr.Bitcoin_Strange that there can be quite a few advantages towards lump sum investing, especially when it seem that price might have either dipped or might not go down any further.

There are no guarantees that they will end up going up, but it does seem that you are a bit more prudent when you buy on dips and you also consider that sometimes there are advantages to frontloading your BTC investment, even if there might be further dips, especially if you have longer term plans.. which also gets us to one of the reasons that it might not really matter that much if you buy at $30k or $28k or if you were able to get some at $25k or $20k, but in the end, we may or may not get any more opportunities to even buy sub $30k.. so there could be advantages to putting it all, even though when I get lump sums like that, I prefer to consider all three of the buying categories that involve buying right away, DCA and buying on dips, so it is a matter of personal perspective (and discretion) to the extent that the weighings in any of the categories might deviate from a 1/3 default or if more or less might go in one or more of the categories.


Of course, you need to consider all of your personal circumstances in order to consider what you BTC accumulation targets might be... I have given several examples in the past, and so for example if your goal was to get to entry level fuck you status within 10 years, then you might need to get 5 bitcoin or more to start to feel that you are getting close to reaching your goal (as in my chart), but if you are at 8 bitcoin now, then you might feel that you have enough.. even though your timeline is 10 years.. and so you can project out what you believe to be your goals and how close you are to achieving them.. if you get to 8 BTC now, but you are still not sure whether your projection for 10 years is correct, you might still continue to accumulate BTC, but there still might be some point that you feel that you have enough or more than enough... but in order to feel more certain, you might need to see the price move enough to confirm your beliefs... or at least bring you to a point that you are convinced that you have enough.


People have differing goals, and some times they might not know what they want, or maybe they feel that they are a long way from their goal, so they just strive to reach it.. but sometimes people reach their earlier goals and they then end up setting higher goals.. Another thing is that sometimes people become uncertain or they set their goals based on bad evaluations and then if things end up not playing out how they expect because they valuated their value in wrong ways, then they might not have had reached their goal. 


People sometimes fail to account for the depreciation of the dollar and/or they fail account for the volatility of bitcoin.. so there are ways to make more accurate assessments, and I personally have been using the 200 week moving average, which I think is more helpful than spot price and/or trying to put your value into dollar based assets.  We do frequently need to be able to assess a variety of matters to make sure that we have adequately accounted for fluctuating values that might include changes in the cost of living or volatile assets such as bitcoin and some other factors (such as expenses) that should be somewhat knowable and even in need of some cushions so that we do not believe that we are at entry level fuck you status before we actually are or we have bad ways of managing our investments and/or wealth once we get to a status in which we might no longer be accumulation and we might move into either a maintenance stage or into some form of liquidation stage.


I prefer to talk about these kinds of topics in public threads rather than DM because it is just easier to share with many folks and then anyone can chime in on the topic if they disagree or if they have some of their own examples and/or ideas that they want to share.  Feel free to ask whatever you like or to bring some of your own examples, but several of the items that you mentioned can be seen in several of my already existing posts, so frequently it can be better to read through some of those posts and then maybe to attempt to direct your question more specifically or to bring some specific example that might relate to a dilemma that you might be having, which it seems that you already did that in your post..


Sure, if you keep buying BTC on a regular basis and then HODL if you run out of money, then the quantity of your BTC is going to continue to grow.  At the same, time you are not guaranteed that your BTC will go up in value, unless the BTC price goes up. .and that part is not guaranteed... but the part that your number of BTC will go up is guaranteed as long as you keep buying and holding. 

Accordingly, each of us does continue to have to make choices regarding how many BTC we want to holding and maybe how many we want to accumulate, whether it is actual amounts or we value in terms of dollars or we set aside a certain percentage of our monthly cashflow to buy BTC, 5%, 10% or some other amount.. maybe even up to 25%, and I don't necessarily recommend going above 25% for beginners unless you have thought through the matter and figured more than 25% to be acceptable for your own particulars.

This strategy is helpful when the price that you are buying at the dip, wouldn't go dipper, or you can continue buying even when it is dipper than expected and only use the $50 to DCA when the price pumps up again. I haven't thought of such moves and I don't think that I will love to practice is because most times, you will be vigilant with the market.

The steady DCA with a regular amount is what I am using to accumulate more bitcoin because I am a beginner and it has really been helpful especially when you have the passion to accumulate in a long term investment to increase your portfolio to a significant amount. Although JJG is talking from experience and the way he explained as long as your are hodli, your portfolio will definitely increase since it is a regular buying scheme.

Although this question is not directed at me, I am interested in answering this question, especially since I also do the DCA strategy that I do every week.
Before getting into the first question, I will say that in this strategy we need consistency and I think that also includes the amount of money we allocate each week, although I prefer to be more flexible, I mean when we have more money why don't we allocate the extra money? (provided that the money is really money that is not intended for other things.

If I have the money you mentioned, let's say $100k. That money is enough to buy approximately 3.5 bitcoins if converted at the current price. I have plans to buy at 3, 4 or 5 purchases, and it is situational. I will buy now with the amount of 1 bitcoin, I have a plan like this because I still see bitcoin still has the potential to go back down. And if the price goes back down I will buy another 1 or even more bitcoins.

This is what I do for dip buying, however i modified the timeframe to monthly. If at the end of the month none of the limit buys have filled I buy at market. I sometimes get lump sums during the year, so when market conditions hit certain situations I'm employ the dips buys. You could also call them dca buys since if they don't fill in the month they become DCA# at market buy. I used to use the number of posts in this thread as one market metric, but its turned into a dca debate so I don't any more.

Going into my data, I seem to accumulate more through DCA than I do in buying the dip though. I will continue with this strategy for another year, I'm interested in seeing some data for a halving year if this makes much difference or not. I'm still not 100% on whether BTFD & dca as hybrid is right way to accumulate or whether I should be more puritan and pick one over the other e.g DCA only  but increase dca amounts with lump.

Either way keep stacking :-)

You really made some good points about this matter. It is clear now that investment is the best option for people who do not want to continue working even in old age. Bitcoin is a good option to considering for investment and small amount of money invested in it over a long period of time can really grow well. I will apply the DCA method with a part of my earning so that I can plan for my retirement from now because as we get older it becomes more difficult to do some of the work we do now. To avoid regrets, we should all take advantage of the DCA method to buy Bitcoin and hold for the time coming. I believe that Bitcoin will increase more in the future and the value is not going to be diminished.


This is one good thing I love about the DCA method - it makes you save money for the future little by little and those savings can save you in the future. You save the money today, the money save you in the future. The DCA method makes this possible for even small cash earners to build something magnificent for the future. This wisdom developed by the creators of the DCA method is a life changer that people can use to bridge the poverty gap across the world.

Those who say they don't have enough money to invest for the long term should do so. We always make short term calculations. If we have the opportunity to invest 50 dollars or more in bitcoin every month, then in the initial stage we will get an idea of what will happen by investing only 50 dollars every month, but if this calculation is made for a long time, then the total amount of the account will increase a lot. We should think twice about every matter one short term and one long term and always give priority to long term calculations. If $50 is invested every month, a person's investment will be $600 at the end of the year. And if that person thinks that he will invest $50 every month regularly for four years then his total investment after four years will be $2400. After four years only his capital will be $2400 and in these four years the market will change a lot and that change will be a positive change but even after the capital of $2400 that investor will get more money as his profit. 

The amount of money that is invested for a long period of time I think that amount of money works as savings because if not invested the person would have spent 50 dollars more every month.

What he meant was that the strategy is similar to DCA not that it is exactly the same thing as DCA. DCA does not really wait for the dips because it is applied irrespective of the price or market condition. The target is to always buy at regular interval. Data presented in the forum by various people who have applied DCA in the past and still applying now shows that even when they put in the same amount of dollars to buy, the quantity of Bitcoin varies because of the price difference.

If I remember correctly, the discussion in this thread actually differentiated between buying in the dips and applying DCA. Both have their pros and cons and serve different purposes.

If you have the time and discipline to follow this like you planned, I don't see nothing wrong with it. But for me, instead of dividing into three parts, I would have done it in such a way that a lot of those funds would have already entered the market before we get to the end of the year because it is possible that price might leave you behind since we have several good news coming. This year presented us several opportunities to buy and very cheap price so waiting further seems like a sign of doubt or fear and if price goes higher than it is now, you might miss the opportunity to buy low.

You've done a great job explaining things further to rachael9385 for better clarity. However, there's something I don't quite agree with in your explanation. If my weekly budget for Dollar-Cost Averaging (DCA) is $100, and I anticipate a price dip during the week, it's acceptable to wait until the week's end to make my purchase. But if, as a result of the expected dip, I decide to invest $500 instead of my usual $100, which you calculated to take only $50 per week for 10 weeks. It seems like a way different strategy to me. What's the point of DCA or the suggested strategy JJG talked about when you're putting all your funds in at once? The concern is that the price might dip even more than anticipated over time, and even though you're still buying at a lower price, you'll end up with less Bitcoin. In hindsight, you might wish you hadn't gone all-in on the market.

Buying at once seems more favorable for those who have bulk capital and have already made up their mind to invest same in Bitcoin. They don't see any need keeping those funds or employing DCA since the fund is readily available. This is not a bad strategy provided the intentions are to hold for long to be able to realize profits. Unlike this method, the DCA seems to be more of a continuous process that is suitable for those with a predictable cash flow system of which certain part will be set aside to invest in Bitcoin. Both approaches or a combination of both is not bad because the target is to build a Bitcoin portfolio that will be preserved for the future.


I am also using the DCA method as well and I can say I have not seen anything like it before. It is easy and convenient to apply, enabling me build a portfolio I never thought I could have because there is no way I can save such amount of money at once.


For weeks you could not buy due to constraints like traveling or work, you can use the following week to cover that by buying twice the size since the funds for the DCA has already been budgeted. You don't have to start all over again because of a little constraint. This is what I think unless there another way to it.

The issue with some folks is their lack of patience; they want immediate profits in a short time. However, we all know that Bitcoin doesn't guarantee that, given its unpredictability. We could endure a bear market for three years or even longer before the next bull run. Without patience, this approach might not work for these kinds of investors.

Additionally, there are those who seek fixed monthly returns. Instead of investing in Bitcoin, they opt for something like a Ponzi scheme because it promises consistent returns, ultimately falling victim to a scam. In the end, they blame Bitcoin for being a fraudulent investment. It's quite unfortunate that some people fail to grasp what they're getting into.



Playing around with figures can be pretty tough. I think my calculations might be a bit unrealistic. So, why not consider allocating a fixed percentage of your income, be it from your job or business? Let's say you set aside 5% of your income for Bitcoin investment, and you don't touch it until you're satisfied with its value.

I'm talking about a long-term investment, maybe 20 years or even more. Who knows, it might eventually pay off, and you could end up with a substantial Bitcoin fortune that you can pass on to your family. Life is full of uncertainties, so it's wise to prepare for the future. In case our economy takes a plunge, having Bitcoin in your portfolio can be a hedge since it's not tied to any one country's economy. It's likely to survive and its value should keep rising as long as demand continues to grow.



As I mentioned in my earlier reply, I believe it would be wise to base this on monthly income. I think a 5% allocation is reasonable. As your income increases, you can also increase the amount of your investment. It's important to ensure that, as long as we're living without financial problems, we allocate for our future. This isn't just for us but also for the people we care about.

In the future, we can't predict what might happen in the world, and with ongoing conflicts in some countries, it's a reminder that peace and order can't be maintained all the time. We've seen the economic impact of war. If we rely solely on fiat currency for our savings, we could end up like other countries that have experienced hyperinflation. Given these potential problems, Bitcoin can serve as a hedge because it's unlikely to depreciate as drastically as fiat.

Understanding what the bitcoin market is all about is one of the most important things to know about bitcoin before diving in. When comparing cryptocurrencies, bitcoin is always distinguished from the rest, and the rest are referred to as altcoins due to the consensus on which bitcoin differs significantly. They both have pros and cons, but when comparing them, if one does not want to be greedy or hungry to make it big quickly by taking an irreversible risk, one should choose bitcoin. As a first-time cryptocurrency investor, you don't need to be told that bitcoin will be the first cryptocurrency you'll be introduced to, even if the person specialises in other cryptocurrencies.

Before learning about bitcoin, I felt cryptocurrency and bitcoin were two separate things due to the wave it has already created in my place, which other altcoins are not renowned for. If you're looking for a low-risk investment with a guaranteed profit over a certain period of time and resistance to market volatility, bitcoin is the way to go. If you're coming in for any other purpose than the aforementioned, bitcoin will not get you there quickly, and altcoin will cause you to lose your money and your belief in cryptocurrencies.


The news that caused bitcoin's price to rise in such a short amount of time is a solid indicator of how bitcoin will move in the market when the bullish season approaches. This is a strong indication that one should not put off accumulating bitcoin. There is never a better moment than now, and it is never too late to begin investing in bitcoin. Don't try to miss out while remembering that you'll just invest what you won't need for daily requirements for the time being. With patience and market knowledge, a long-term reward in bitcoin is certain.

You are not getting what JJG said, let me explain to you from what I understand about the strategy that JJG said is similar to DCA. You must not wait for the dip, by sitting down and relaxing. What is said is that since you have set an amount for weekly regular DCA which is $100. You will always buy every week with $100, but if it happens that you are expecting a dip during the week, you can relax and keep on observing the market to see if the dip will come.

Just like JJG said that, if you make an order to DCA $100 weekly, and bitcoin price is at $28500, you can wait till the last day of the week before buying. So that if bitcoin price did not dip below $28500 on the last day, you can simple use all your $100 to buy for that week and expect the dip the next week. OR because you feel that the dip will come but still not around,you can limit the $100 DCA to $50 and buy bitcoin on the last day of the week so that you can carry over the balance of $50 to the next week, when the dip might come so that you can now add the $50 left to the new week DCA budget to make it $150.

This shows that if the dip comes during the next week, you will buy more bitcoin with $150 than when you would have bought with only $100. On the other hand, because you are using this pattern to accumulate, when the dip comes because you know that, your DCA weekly funds is $100, during the dip, you can take advantage of the market and use like $500 to buy at once. Note that the $500 that you used to buy is not for just five weeks budget, but you are buying with $100 from the week budget which you are on, let me say today for instance is my buying day and I have assigned $100 for this week. I will now take $50 each from 8 weeks ahead which becomes $400 +$100 for this week.

I am to DCA with $500 this week because bitcoin price is at dip, and when the price increases again, I can now continue to DCA with the remaining $50 left from the 8 weeks which I took from, for another 8 weeks. It is still like DCA because, you are buying every week but with different amount sometimes, due to planing for the dip and to take advantage of the dip.

JJG, I love this strategy but I have never taught of it, the only time that I thought of something like this, was when bitcoin price was 25k+, that I met my boss to me 20% of my salary for three months in advance to enable me buy at that price 25k+, which he did. I am now using half of the money that I am suppose to use for weekly DCA to accumulate now because, I need to keep on accumulating and I have used some part of my DCA funds to buy then when the price was 25k+. This strategy wouldn't be good for beginners who just started because it might be hard to practice, compare to the regular DCA pattern that a specific amount is used always disregard of bitcoin price.

Others might have a certain target though, let's say 1 BTC as this is what everyone is aiming to be a member of 1 BTC club. And for starter this is going to be very hard to accomplished, but for those who have been doing it for years, thru DCA and whatever strategy suit them, they could have been saving more than that. If you are interested, you can see it here:


https://bitinfocharts.com/top-100-richest-bitcoin-addresses.html

So you can see where you at right now as far as accumulating BTC. And I will agree that it's a never ending quest to acquire it. We might be selling at some point, but for sure you will want to get it back as soon as you can. I wouldn't say it's an obsession though, you still have to look at it as an asset that you will have to make some profits later.