Topic: Buy the DIP, and HODL! - page 500. (Read 122991 times)

I would strongly agree with your perspective that DCA is the best strategy for accumulating Bitcoin on significant dips. This approach helps to keep average buying cost at a reasonable level overtime. Attempting to trade Bitcoin with aim to increase quantity of Bitcoin often ends up in failure, as it is very challenging to accurately predict the market through technical indicators. Although technical analysis is a valuable tool to understand the sentiment of the market, but its accuracy to predict market is never 100%, as it is not a perfect science., it relies on historical data, and what happened in the past doesn't necessarily mean same will be repeated in future. It is crucial  to approach market predictions with caution to avoid any unfavorable outcome.

I like the point you're making about using money that we can ignore even though basically any money shouldn't be ignored because money is a very useful tool at this point in time. And as for a brighter future in terms of something, I think only a minority of people are not convinced that it's for the future of Bitcoin.

Because if you remember the basic concept of Buy the DIP, and HODL it is a concept where someone who basically doesn't really remember selling at a loss or selling at a low price in the short term. But such a concept is a concept that is more suitable for the long term after buying at a low price and holding it (despite the misfortune experienced by someone in his life so that he has to cash out his assets to solve certain problems)

Bitcoin gives everyone free hand and access to do whatever they thought of with their bitcoin, it's not a do or die affair whereby after buying you must hold till finite. Don't quote me wrongly but just try to get my point here, I may decides to buy bitcoin today and sells in the next two to three months after which I think the little increase or profits gain from it is okay by me.

Also remember that I may buy bitcoin and in few days interval urgency may come to me whereby I can decides to sell and settle the problems at hand but that doesn't mean I do not want to hold my bitcoin, but since there is no alternatives on how to get it sorted out I then decides to sell my bitcoin is not a bad decision I have taken so far.

But main problem here is, If I could be able to get them back at that cheap price which I sold because knowing too well that bitcoin price can't be as same when buy this year and next year. Being able to utilized the opportunity given to us at a plater of Gold is another great deal which many does not know that opportunities never waits for anyone.

As a fellow you have something good doing at hand and it happens that you just buy and sell without any reason is really bad because bitcoin is a Gem which is worth holding for long term.

Only do it with the amount of money that you could ignore for a long time, don't try it with your whole savings since we are not sure about the future.
I am not saying that it wouldn't be profitable but what if something unexpected came up when the price is still low and you badly needs the money, it would just force you to sell it even if you're going to take the loss.

While on this thread, I have really learned about the importance of holding Bitcoin for a long time. With discussion on how to hold our Bitcoin for a long time, I have also understood that there is nothing wrong with holding your Bitcoin for as long as you want, but a member of the quote above thinks it's very wrong to hold Bitcoin for a very long time. I think he is the one who is wrong in his thoughts, but what is your opinion about this? I just want to be clear. Responses are appreciated; please. Thanks.

Yea you are right,there are different method in which one can use to accumulate their coins not just DCA. It all boils down to the nature of your income during a given period of time. Buying at dip is always an opportunity for those who see the market as an opportunity for them to acquire more bitcoin when other investors are selling off due to panic,this strategy helps to buy large amount of bitcoin at a cheaper price. On the other hand buying at lump is for those investors who have plans to accumulate bitcoin when a huge amount of cash comes in and they invest it into bitcoin because they understand that bitcoin is a store of value and an asset to keep their funds away from depreciation,this practice is always done once in a while. The last set of investors are those who use the DCA method by accumulating their bitcoin gradually from their monthly income,a fraction of it is use to accumulate more bitcoin to their investment portfolio, due this strategy might not be regularly done due so some unforseen circumstances that can increase our emergency spending.

 I do accumulate my bitcoin in two of this methods but it depends on my present financial statues. I DCA every month and sometimes when I have a good cash inflow which I don't have plans for that huge sum of cash that came in,I immediately use it to buy bitcoin,so that my funds wouldn't be hit by inflation and I can also have a good significant amount of bitcoin in the next 8-10yrs because I use bitcoin as a store of value which I will benefit from in the long run. These are some secretes that some investors fails to understand and instead they will always be checking bitcoin price to see if it is pumping or dumping,all these will discourage them from the mindset of hodling for long and they will sell at the unexpected time. Either they will be carried away with the anxiety of the high price and sell off or they will panic and sell of when the price dips lower than what they bought.

Going by your points here, it is eminent that we take cognisance of what category of an investors we belong to, many people thinks that this is what they get into and must within a short period of time behold it result in their hands, but bitcoin investment is beyond that, when you buy the dip, hodl the coins, get secured and leave the asset to mature to an extent of being profitable whereby you experience a massive increase on your investment.

It usually take upto four years before such may occur since every halving takes place within this same stipulated interval, then comes the increase you least expect from your digital currency bitcoin which turn to a profitable investment or asset after your holdings, but hence if you can't endure this hodl for long the other alternative is to trade under a short term basis.

Normally, I think that someone who has gained education about financial management and investment dealings should know that during investment, you don't invest everything you have without realizing that there are times when some unforseen circumstances could arise and will require you to spend some cash, and at that moment, the person might be stranded because they forgot to prepare for an emergency.

Let me give you a little story. While I was growing up, I usually went to the farm with my grandmother, and any time we were going to the farm, she always went along with some money. When I noticed it, I asked her why she was always going to farm with money. I asked her if there was any shop at the farm where she could buy something with the money, and she said "No", but what she also said was that, " we should always prepare ourself for some unforseen incident that money can just solve." One day we went to the farm, and on our way back home, the fuel on the motorcycle ran out. We rolled the motorcycle to a nearby filling station close to the farm road, bought refiled the fuel tank of the motorcycle and drove back home.

Sorry for that creepy story, but the truth is that when you invest, you should also keep some money for your needs and maybe for any emergencies that can arise. One law of economics is that human needs are insatiable. So, always make your budgets and also save a little Fiat for emergencies; then you can invest the rest. By doing so, if you are investing in Bitcoin, you will not really be tempted to sell off your holdings in the short term. That's because even before any emergencies arise, you always have a backup.


Well, to clarify that, first, what is a store of value?


Bitcoin is an asset that can be saved and exchanged in the future without its value deteriorating, so I think that makes it serve an investment purpose too. Even with that, it doesn't mean that Bitcoin isn't still fulfilling the P2P purpose by fulfilling payments for online transactions.

DCA does not require analysis or buying techniques because we do it in stages over the long term. This is because all investment techniques in the long term only require strong financial support and do not reflect failure at any stage in the investment pattern. Now, with strong assumptions, we can maximize if the investment opportunities that we run will end successfully based on strong beliefs until we find the success that we are targeting in the next 10 or 5 years.

So in this case I think someone who has a relatively large income will benefit more in the current situation, namely buying sooner before they do it with DCA, but if they have relatively small income of course they only make purchases in stages with DCA, And no aggressive upgrades they will do.

I think if you are targeting a long term investment then there is no need to bother doing market analysis because we are not going to sell the invested Bitcoins in the near future, meaning in the long term is to do an annual HODL and we are ready to do that.
We are here talking about a financial management strategy that is included in bitcoin, both DCA and lump sum, as the best method, but we see how our financial flow is and it must be done well without any pressure at the end of the month.

If you have a large enough monthly income then what percentage do you have to do to buy bitcoin, if there is more additional money then you can do a lump sum, the most important thing is that your needs are fulfilled Bitcoin investment is still running even though the DCA is put in small.

Thanks for the good elaboration. Most traders don't know this as they are blinded by the profits they make anytime they make a gain in the market and one thing I have known about trading is that, it is very easy to forget your the loses they enquire seeing that some times they have profits, but the truth is that no traders even the so called experts make steady earning without acquiring loses but they just feel not to count on the loses and just focus on the profits they make, but the certainty of getting this profits always is very small and at the long run of your steady trading you might hit a very bad day which is a possibility and it might drain your portfolio by some huge margin which is the risk that is involved when trading. But buying on a steady pace whether big amount or small just keeps the risk of loss at the very minimal stage and it only increases your portfolio either by a big margin or small but the fact there is that you are actually heading toward somewhere in your investments. Bitcoin has already proven its efficiency over the years thats why many bitcoiners see it as an amazing investment platform if only one is able to hodl despite all hardship and situation that might face you during your investment plan. I will also believe satoshi never intended for bitcoin to be first used as an investment means but thats the nature of something good it always have other means to prove and add to its worth and thats why its just best when it comes to building a profitable portfolio in bitcoin if only one can just BUY THE DIP AND HODL and forget about the little earning and huge loses you can get from trading your BTC, it will be all good sometimes in the future.

For sure each of us is going to assign probabilities to both price direction and even the degree to which the price might go down or up and how long it might stay there in differing kinds of ways, and the punchline likely has to do more with the extent to which we are individually tailoring our approach to our own various circumstances and where we might be at in our bitcoin journey, whether in an accumulation phase, a maintenance phase, a liquidation phase or some phase that overlaps with those ways of framing our own personal priorities... .so in that regard, view of price is only one of the aspects and the extent to which some people even believe that their view of price (or price direction or BTC price direction as compared to other assets) is an important part, then surely some people might act upon their figuring out of those kinds of matters more than others might not give as much emphasis to such things (such as perceptions of short term price direction).


Sure.. there can be combinations of DCA, buying on dips and lump sum buying.. and some times we might run out of money in order to buy more, so we might then decide that it is best to HODL.. or maybe we try to learn from our experiences.  I think that it tends to be a mistake to either sell on the way down or to sell out of hopes that the BTC price will go down or to have felt that mistakes had been made in terms of running out of money in terms of preparations to be able to buy on the way down, so hopefully people learn from these kinds of likely mistakes, even though surely people have differing views in regards to how they believe that they want to achieve their objectives, even if they are in early BTC accumulation stages of their BTC strategy.


Of course bitcoin price dynamics is always a kind of moving target, and sometimes there may be patterns, and likely figuring out which parts to pay attention remains important too.. and yeah, I am not so much into trying to figure out the nitty gritty of short-term BTC price movements, and this thread does not seem to be like that, even though there is a kind of problem that comes when guys/gals are trying to figure out the dip.. rather than just buying BTC regularly.. so there may well come a kind of devolution in thinking that there are needs to figure out how much of a dip is going to come or maybe even failing to really assign values to just money that is allocated.. and surely if the budget is not very big.. then there are senses that every dollar counts and there is not enough dollars to spread in order to continue to buy all the way down, so there are needs to be strategic in terms of buys, so I can understand those kinds of inclinations that people have that likely lead to errors, emotionalism and perhaps even doing the wrong thing in a variety of ways (including that they might be overly invested and not holding enough fiat in reserves.. so that they can both buy BTC regularly and also buy on dips at various strategic points that they themselves determine in advance and perhaps adjust from time to time.. without necessarily getting too greedy along the way).


Perhaps.  how do you know?  just because people say that, or you have come to those conclusions yourself?  How are you evaluating bitcoin?  are you ONLY looking at charts and treating it as a mature asset class, or do you include it in terms of a paradigm shifting phenomenon that is in early stages of adoption that is likely to be on an s-curve an explosive at times that are not necessarily known in advance?  You can use whatever frameworks that you like in terms of fucking around with trading rather than merely ongoingly stacking (and perhaps holding some in reserves for dips)..

and don't get me wrong, I have money prepared to buy on dips all the way down to $10k-ish.. though I hope and expect that it won't even go into the lower $20ks.. but I thought that in early 2022 too and I had to adjust my money in order to account for my possibly running out of cash.. .. so I feel that it can be quite difficult to build up a way to both mentally and financially prepare yourself.. including that i had done a large portion of my BTC accumulation in 2014 - even though I could not resist to continue to accumulate all the way into early 2017.. even though it just can become kind of complicated to deal with any of our BTC portfolios in the earlier days, and likely we start to feel more comfortable the longer that we are in and the longer that we are able to build it up in such a way that it ends up being in a profitable status down the road.. .. and in a lot of senses, I don't think that any of us should be rushing to try to get to a comfortable state.. especially guys/gals who are in their earlier BTC accumulation stages.. and even realizing that it could take them 4-10 years before they even start to come close to being comfortable in their BTC stash and the balancing of their dealing with BTC volatility that is likely to continue in the coming years..  likely even 10-20 or more years into the future... to the extent that any of us will still be alive at various longer term points in time down the road.


It seems to me that each of us should always be preparing ourselves financially and psychologically for BTC price moves in either direction (including somewhat flat and/or range-bound BTC price moves). 

if you are only preparing for one direction, then you are likely to get fucked.  I have seen it plenty of times in the past, and I have no doubts that such unpredictability is going to continue in bitcoin for quite a bit of time to come into the future, and many of us likely already realize that one of the most inevitable things about bitcoin is its volatility, but we do not necessarily know in which direction... so good luck if you are ONLY preparing for one direction, you are likely going to need it... maybe you end up getting your preparation right this time, but seems like gambling to me if you are treating your bitcoin in such a way that is likely to bite you in the ass if you continue with those kinds of practices, but hey.. do what you like... You are completely in charge of your own financial and psychological preparations... but you are not going to get me to agree with your tactic that seems to be largely preparing for downity.. even during seemingly dire times like these.


I don't know what PW is.

But I get your point.. and yes, guys engage in technical analysis all the time in terms of figuring out how much BTC to buy at what points and also how much fiat to save, just in case the price might dip lower.


Sure.. nothing wrong with those ideas... and hopefully each of us is also prepared for UP, just in case UP ends up "surprisingly" ends up happening... whether the technical indicators say that it should (or can) happen or not.


This thread is not about trading...

Sure, guys can do technical analysis or they can do fundamental analysis.. or they can do some kind of an assessment of themselves and their circumstances.. and views on bitcoin is only one part of the various aspects to be taken into account, so getting too caught up upon technical analysis might not be a good idea..  especially since the vast majority of traders do not end up doing better than someone who employs a more solid strategy to just buy BTC regularly.. and also frequently the trader twats end up getting involved in shitcoins.. so there's a lot of complication in terms of getting too distracted, especially since it is quite likely that more than 99% of the world's population does not have any bitcoin or has small amounts of bitcoin, so better to get off zero and work on stacking bitcoin prior to getting too distracted into nonsensical timing considerations.. especially more advanced approaches that most people are not able to do that involve selling.. not a good idea when it comes to one of the best (if not the best) investment asset that has ever existed that is widely available to every person on the planet.. referring to bitcoin here, homie.


I would not say that DCA is the "only" method, since there is lump sum investing and there is buying on dips (the topic of this thread), even though DCA is amongst the best of methods to get started right away.. and hopefully, people who get started in bitcoin as soon as possible will end up tailoring their BTC accumulation approach to their own situation.. which may well mean to start out with DCA.. and then to figure out various goals that they have that are personally tailored.. that might take years to play out with various tweaks and adjustments along the way.. that hopefully relate to ongoing learning. and perhaps not devolving into those kinds of desperation and/or gambling strategies that you had referred to in your post Sim_card.

So it's best to target your investment over a long range and with this we think ranking at least a little time for you not to need to fill in every time, market analysis habits people use when they determine when to buy, and in the gaps in investment time they analyze to do additional if there is a good opportunity, because they invest long term already determine the final target.

I guess right, Without understanding the technical aspects, it becomes difficult to predict the results. Yes. using technical analysis will gain insight into optimal buying and selling points. But, what's interesting is that you know, sometimes the luck factor always comes for those who aren't too serious in trading, on the other hand, those who are too focused usually have a lot of obstacles. in navigating its investment landscape. weird too.

Trading is done regularly and one can easily run at loss base on the volatile nature of bitcoin. Those bitcoin traders will find it difficult to accumulate to their investment portfolio to a high level,compare to someone who is accumulating and holding. From my own perspective traders are more vulnerable to loss and might find it difficult to be able to hold their bitcoin for long because they see bitcoin a business more than seeing it as an asset that one can have a good profit from it when you holdi for a very long time. Trading has a lot of disadvantages that can make one lose his bitcoin if he has less knowledge on it or did not have a good trading strategy. If some traders with good strategy can't make profit everyday,trading is about making profit or loss,but bitcoin steady accumulation through DCA and holding for long is a sure guarantee for that investor that he must make huge profit depending on how long that he can hold on to his Investment. All the profit a trader has made in 10yrs put together will not be up to the profit that someone who is holding and accumulating for 10yes,this shows that traders are only after little profit and they don't target making huge profit because they are after daily profit. The more you keeping accumulating and holding,the more opportunity that you have to make higher profit in the long term. Trading is like stress and chasing shadows because it is like gambling where you hope of making profit is 50-50, but holding for long and using DCA method is the only way that your bitcoin investment portfolio can attain a great height and value.

If you just have faith without you analyzing it technically, of course the success you will get is luck,
it can even be said to be an investment bet because you don't know how it will go,
but if we analyze technically, of course we know when we buy and when we sell.

Yes. I also agree that volatility is unavoidable and attacks on Bitcoin in these 2 days are likely to be of short term duration even though we know the Bitcoin ecosystem is very complex, with both positive and negative elements affecting its price although It is difficult to determine the exact probability of price movement in certain period of time. Establishing a regular buying strategy, identifying buying opportunities during a downturn, and allocating funds for further potential downturns I think is exactly what you meant and If those downturns don't happen again we need to reassess and adjust.

In November 2022, Bitcoin bottomed out at $15,479. However, today the situation has changed and the correlation may be different. In evaluating the opportunities for the current price movement, it should be noted that there is a lot of resistance awaiting Bitcoin between 26.9k to 27.1k. Therefore, it is not advisable to expect a sudden price increase outside this range. As long as Bitcoin stays above the May low (preferably above the PW Low), expect Bitcoin to move slowly towards resistance, possibly experiencing some resistance.

However, if no bad news is issued, there is a possibility for the price to increase towards the 28-29k region and I think, The key is to remain flexible and adapt to the ever-changing market dynamics.

For sure, it can take a long time to build up your investment portfolio to a level in which you start to feel comfortable with the size.. maybe it starts to reach 1 or 2 years of your annual salary (or the amount that you need to live for one or two years), and then you may well start to feel the value of being conservative and building over the many years that it took you to get there.. perhaps it took you more than 10 years and maybe even close to 15 or 20 years to get to the level of having 1-2 years of living expenses in your investment portfolio... and sometimes as you get your investment portfolio larger, then it may well start to compound on itself in greater ways.. and surely the power of bitcoin has good potential to help any of us with the compounding effects of our investment and it is not as likely to happen if we are pissing around with trading rather than ongoingly building.. and for me to be somewhat repetitive, building also likely does not really happen (and you end up working against yourself sometimes) when you are pissing around with trading, especially with an asset like bitcoin that already has a decently large amount of great upward potential and even explosive upward potential that you might end up missing out on if you are too busy trying to figure out when such upward explosions might happen (and you end up getting it wrong and not having money in bitcoin when it explosively goes up and refuses to come back down to its previous price levels)..

You made a valid point that, for Bitcoin investors, it is very important to understand that this market is very volatile and like other markets it also goes through bull and bear cycles and it is very challenging to predict the duration of these cycles . The other significant factor is our belief in potential of Bitcoin to thrive overtime. This belief greatly influences the success of our investment in the long term.

To theorize is very important in any investment one wants to go in because it is through the theory that you will follow to set up your goals and how your goals can be achieved. If you theorize without practical,then you haven't started yet because you need to display the theory in practical so that one can have experience of that which you think is the right way to go or steps to practice. Sometimes,when we theorize and put it into practice we see it that they way we thought or have it in mind wouldn't be easy to achieve because there are some obstacles that we are bond to face which we didnt put into consideration due to our lack of experience ...that will make our theory not to perfectly work out. Bitcoin investment is easily said than done,you might have the psychological and financial preparation to embark to your bitcoin journey to hold and accumulate for 10years but along the line,you might be faced with wrong some obstacle which might make you not be able to hold for this long or to accumulate the exact amount to planned to accumulate at first.

 But as time goes on,you will see it that you will begin to understand some challenges that can prevent you to achieve this goal and you will begin to come up with another strategy which you can use to overcome that problem,and before you know it,you will overcome it. We might have the best theory on how to increase our bitcoin investment 2x the normal size as planned but you might end up not being able to achieve this because of some wrong decisions that you made during your bitcoin journey and some circumstances that surrounds bitcoin might make you feel reluctant,discouraged and panic because you are trapped in the middle of it. Experience is best gotten from practical and not theory. However,both of them are important for one to move on with his bitcoin journey. For example bitcoin price has dip to 25k+, so many people will panic and sell all,some will panic and sell some fractions of their and some persons will understand that this is how the life cycle of bitcoin is because he has the practical experience and he uses the opportunity to accumulate more. While some other persons will stop accumulating and look at how the market will move but they are still holding.