Topic: Buy the DIP, and HODL! - page 508. (Read 123703 times)

On all the comments on RE, I think we can all agree Btc value appreciation has beaten all traditional investment vehicles. Be like James! Where I would disagree with is that RE is not a bad investment, just like Btc there are some very profitable strategies to employ to gain value and be tax advantaged. There are also list of trap/scams to take you to the cleaners. It’s similar in that it’s a long term investment and it enables exposure to other currency markets. Country dependant for sure but most countries treat a foreign property as the same as an in country purchased property with the same or very similar tax write offs. It wouldn’t surprise me if RE owners are dca’ing some or all of their monthly net rental income into BTC

Not to make out some defend about real estate which there's really indeed those chance or circumstances on which a property isnt really generating an income but i do disagree about inflation because there are properties that despite on having not maintained when it comes to this but its still appreciating on price specially on some lots which are really that placed into a good spot and even into some apartment or whatsover
properties you do have. Despite on having that kind of negative approach into it, it would be better if you do just simply consider on making yourself dealing with both things if you do have
the money.

Cant really deny too when it comes to profits then crypto market would really be giving out that stuff,considering about the volatility then there's no doubt about those things would really be giving out
chances or situation which you would really be earning more but in speaking of risks then it does have higher risks level which is something that you would be needing to consider out first.
Buy the dip and hold might sound really that simple but on the time that you would be doing such thing or step then this is where you would be finding  yourself that it wasnt easy at all.
Emotion and mindset would really be that in mix on what are the decisions you would be making.

Real estates investment is like putting your money into inflation entrapment. From time to time this investment needs to be maintained,if not you it can keep on depreciating in value if money is not pump on it. To maintain real estate cost so much,real estate are visible assets and can be seized by government if you are a suspect to them on an illegal activities even if the truth has not been known. Bitcoin is a digital asset and is decentralized in nature,if you are in total custody of your bitcoin investment and use a decentralized platform and a mixer,you will hardly be known as a wealthy person neither can your bitcoin be frozen by the government. Profits in bitcoin in a long term run is as far big than real estate.

---

In real estate, if you property is not rented or lease no profit comes in,but in bitcoin just relax and follow the market analysis and it is sure that you must make good profit when you sell in a bull run.

In my local area I have seen several people who have now chosen bitcoin for their children rather than depositing money in the bank. They are now able to understand that keeping money in the bank may lose its value in the long run due to inflation. Moreover, many of them are showing the tendency to collect a good amount of money by investing in this platform keeping in mind the potential of Bitcoin. Those who are buying Bitcoin with such attitude will benefit more. Because they usually plan long term. They are now buying bitcoins through DCA just as they used to deposit money in the bank every month. But this trend I have seen in most young fathers. Those who are middle-aged are comparatively lagging behind. But gradually I think they will also be encouraged to invest in bitcoin. Because the Bitcoin wave is still sweeping all over the world.

Absolutely, because I have understood something very important about bitcoin towards investors precisely newbies are something else about their profits, whenever they invested they expected to make sudden profits without wanting to know the propeller or the movers. When a newbie understand the purpose of their investment sudden profit won't come into their minds rather will think of holding for long, that's why the whales keeps getting larger because when there seems to be little wave in the water they don't get panicked rather sinking down to monitor the water, this are also applicable with investors to their investment.

Bitcoin investment is the best form of investment for future sake inbthe sense that, one can choose bitcoin as the best alternative to bank share or other kids educational and future funding and also bitcoin is the best asset transfer evere that avoid the many taxes that come with holding other assets such as fixed depositis or real estate  all that are subject to inflations and interest rate crisis, but bitcoin is the best alternative and once you thought your kids what it means to align with various financial practices and education along side their ability to protect themselve securly using bitcoin,
1: wallet
2: privacy
3: decentralized finance
I agree with you, the level of financial education of an individual increases his ability to make decisions that best suit his or her investment plan at that time and how to constantly take profits and what the right investment is for both long-term and short-term basis, e.g if you invest in Bitcoin its not good enough to just hold for long term, but also learn how to DCA as the price rise in-between, learning how to take dollar cost averaging in bitcoin is the most lucrative thing to do with bitcoin investment that way you arrive at a financially stable position earlier than expected.

Yes, sometimes it seems easy to say but without knowledge and experience then I think you will never have an idea to say something properly. Investment plans must also be adjusted to our current financial conditions because the inflation we are experiencing is very depressing. Financial management is expected to remain good as long as several sources can be maintained, but because many costs have increased, investment interest must also be adjusted.

Something that is forced tends to be bad, meaning that this investment must go through several consideration processes. Investment risks are obvious, but the risks to be faced mentally and peace of mind must also be considered.

There are still people who invest in bitcoin for the long term just for the sake of their children's education in the future someday, they start now from a low price by means of DCA or whatever it is that can buy to accumulate their portfolio because education is very important and requires a lot of money not least so for those who pin their hopes on bitcoin for its future it would be far better than storing in inflation-drained fiat.

There are also those who are still unable to invest because they are hindered by the cost of their education now so every time they get a salary, it is only enough for the needs and costs of their children's education.
The most important aspect that must be prioritized, if you want to invest in bitcoin long term then at least there must be a reserve fund in a few months, then they can start investing slowly by DCA.

The investment opportunity bitcoin has brought to us is high, it's the the good tactics on how to do the investment at the right time we should be looking for. Experience is a must, it may not take time for the best experience getting, it may take a few days or a week to know everything to do but the learning should come first. This is how the idea of HODL after buying the DIP can be achieved.

Sometimes it is easier said than done, Bitcoin has the best buying times that anyone will not regret it. This are the times it has been falling for months and suddenly a good amount is used to buy it. I am sure that in the next 3 months of buying such setup at least 1/8 of the investment could be made easily. But it must have falling so well that everything saw on the chart for many months is oversold and a has high likelihood of buying for another months when reversing.

There are many people who are waiting for a good time to invest in Bitcoin long-term. they will buy Bitcoin with a good time and hold that Bitcoin for a long time because this time can be a good time because the price of Bitcoin is relatively low during this time. So instead of waiting any longer you should make a plan to buy bitcoins and hold them for a long time. 

But before buying and holding bitcoins one must acquire a good understanding of these things. People who lack market knowledge must acquire a good understanding of the market and be patient. Gain experience before buying bitcoins. These qualities are built into oneself. It is very important to do.

Btw I'm curious about people saying this to James now
This is an example where we don't get carried away by the people around us and James gets out of his comfort zone where his friends are in Real Estate and he is looking for new opportunities. I think if James has been in bitcoin until now then he has benefited more than his friends who are in Real Estate.

On the other hand, this also clearly applies or as a real slap to people who really only follow their friends or people around who are in bitcoin but they don't really understand about bitcoin because even though it's good to be in bitcoin but when we don't learn more much about it then it's the same as us trying to run in a dark room without knowing there is a trap in it.

Real Estate is the new shithole that will sink your investment and tie you down for a long time, Bitcoin doesn't need maintenance and changes of some parts one gou hold Bitcoin in your wallet, its value remains the same for internity only to DCA value keeps changing constantly due to market volatilities, I am not sure if most of those you look at bitcoin investment both in money and time to acquire the basic fundamental knowledge will be discovered in the nearest future that there have wasted their time all the while.


The earlier the better for anyone who hasn't made up their mind to buy Bitcoin and hold it for the long term base, but also financial education is very important even more important than having the money to buy Bitcoin, so before you place the buy order, consider it to be of an essential aspect to always acquiring.

It is good to have diversification in business but one should give Bitcoin the highest priority. There are major differences between Bitcoin and real estate trading. But the first thing that comes up is the supply of money. One can easily invest in Bitcoin. If his financial condition is bad, he can buy a fraction of a bitcoin with a small amount of money. But those who run real estate business need more money. Moreover, the amount of risk is also high. It is undoubtedly a long-term process. So all things considered if one can buy bitcoins with a small amount of money then he will be able to earn better profits in the future. Every business has risk factors but the advantage is that even your small investment can turn into your big fortune. So buy as much as one can hold it for the long term.

I feel obliged to recognize and understand what are the potential errors or failures so that we can minimize them properly. I realized that we can only plan everything and try to arrange it as best we can, but because I am a follower of a religion, I also have to have enough faith in things called fate or God's will. A natural disaster for example, pandemic or a larger war could blindly ruin this plan, so something like that is totally unexpected even if we have managed the plan as best we can.

Maybe we've talked too far about these plans and how to go about it, but I hope we haven't completely ignored that bitcoin is still in good reach to buy. Buy on a dip and hold would still be an option I would consider regardless of a cash reserve plan for an emergency fund, it would have to vary with the investment budget I have.

This is the mistake that some people make and can never be corrected because they don't think that it is a big time one that can lead to their wreck. Most times it is impossible to achieve back such lost because it took a very long time to achieve that success. Since we can't see into the future it is hard for one to know the kind of error that will be made which we lead one to such situation. What I mean is that it is better we become careful with our investment and take accurate prevention measures from making such mistakes,because what you could acquire very easy ten years ago will be very difficult to achieve it in fifteen year time because of inflation and some unforseen forces around us.

I had a similar experience, when I had a business which I run,there is this close friend of mine,he is always around me all the time and knows most of my customers because we are always together. Sometimes when I want to dash out to buy my goods,I will leave him with the business to be in charge while am gone. One day I had a to go on a long trip which I spent almost two months before I came back,to my greatest surprise my friend told me that he can no longer cope with me anymore. My business has run down and when I asked him,he said that he sent me some money when I was away and that was the cause. Unknowingly to me that he was selling and replacing the goods keeping all the profits to himself and at the same time he used my money to invest into the same kind of business and took away all my customers. When I noticed was when I called one of my big customer who buys in large quantity,he told me that I am no longer into the business and he just bought goods worth 1million in my local currency. It took me a very long time to get most of my customers back because he lied and told them so many bullshit about me. This is how it is when you have invested in bitcoin and you carelessly allowed your wallet to be compromised.

James hasn't wasted his time reading bitcoin books and investing in bitcoin, he has being busy monitoring his investment and following up with the market analysis. At the long run James became the richest amongst his friends who was investing in real estate because bitcoin is a future game changer. This is a good motivation.

I believe we should be like James. Not investing in Real Estate, just keeps reading about Bitcoin, and who's remembered for just reading about Bitcoin. In 5 to 6 years after a market surge bringing Bitcoin to six digits, they will remember.



Buy the DIP, and HODL.

 

There is always going to be some risk in any kind of strategy that is attempting to make some progress and to attempt to be somewhat assertive about it (versus some kinds of strategy that might either barely keep up with inflation or that might actually lose value in the future because they fail/refuse to sufficiently attempt to account for inflation).

So, yes.. I would not consider the likelihood that some mistakes are going to be made along the way to be deal-breakers because hopefully, you can just deal with the mistake or the ramifications of the mistake(s) once it (they) happen, yet there still is quite a bit of value in terms of trying to figure out how likely are certain mistakes to happen, and then how big would be the ramifications for each of the mistakes, because there could be ways to at least mitigate how likely it would be that the mistakes would happen and to even make it pretty unlikely that the mistakes would completely destroy you or even that that maybe you might have some mistakes that you would consider to be severe.. but they would ONLY end up dipping into your principle by 10% or 20% rather than some mistakes could end up having something like 70% to 90% dipping into your principle, so even though you may be willing to suffer some unlikely damages, it would be prudent and practical to be able to attempt to recognize the difference in the magnitude and likelihood because sometimes people engage in behavior that has decent chances of producing a 70% to 90% reckening and maybe they are calculating it as if it were only less than a 10% reckening if it were to happen... - including that frequently there are periods in the building of investments and/or principle that can take years and years and years to establish, so if you reck yourself by 70% to 90%, it's not like you can just bounce back in a period of time that is significantly shorter than how long it took you the first time, and in some cases, it is almost impossible to build the same principle at later dates because the costs have changed....

For example in bitcoin, there may have been some abilities in around 2015 to build a 40-50 bitcoin stash for $10k-$15k.... and so if you had built up 40-50 bitcoin, and then you had spent 10-20 of them, and you are feeling pretty good because you still have a pretty solid 20-30 bitcoins that are mostly in some form of cold storage, then if you end up losing 70-90% of them because you fuck around too much and take too many risks, then you end up with around 5 BTC, even though you still have some bitcoin, you are hardly ever going to be able to make it back to having 40-50 bitcoin, and you may well even be damned lucky (meaning that it is quite unrealistic) that you would be able to get back to some kind of a solid status of having 20-30 bitcoins in the next 5-10 years, if ever.

Sure, everyone needs to weigh their own circumstances, but there can be real costs to losing principle, depending on the kind of principle (and the kind of asset) that you might have worked hard to acquire and/or attain (or you might have had luck involved in your acquisition and retention of such asset, too).


There are surely needs to attempt to tailor to yourself and to your own various variables, and none of are necessarily going to completely know how you might engage in some of your calculations or how you might value one asset over another asset (or even valuing time, energy, health and relations).  So in that regard, if you dedicate some value to some kinds of things that others would not do, or you end up taking risks that others might not take, there could be some difficult to calculate components and even you might have some difficulties putting exact values (beyond ballpark assessments) regarding why you might be making your allocations in the ways that you are doing...or maybe even there might be some periods where you are making changes 4-5 times in 2 months, and other people are thinking "what the fuck are you doing?" and you are having some troubles figuring out your own calculations, and there might be people who don't change very much in a year and may or may not even look (analyze) what they are doing on even a quarterly basis.

Some strategies (maybe even more aggressive ones) likely need more interaction, and sometimes there could be better results by not trying to be so aggressive and calculating, but sometimes we might not even know aspects of ourselves that might be causing us to engage in various kinds of work that is NOT really productive use of our time.. but we might not ever realize that or ONLY come to realize the matter at a much later date.

I understand that I may mess up this plan in the future when one or two cash flows from multiple sources suddenly dry up. However, I have learned many things from the experiences of the people around me, including maybe some of your experiences in managing finances. This management sometimes won't go according to what we plan, but trying to avoid mistakes in the sense of managing it properly must be attempted.

Children need a lot of things and expenses will increase along they grow up. Just a few days ago my emergency fund had to be reduced due to a need that I can say is urgent, but I have to be grateful it doesn't exceed 10% of the total cash I have as an emergency fund. As I said before, I'm pretty flexible about this plan, and probably won't always oblige myself to consistency on the plan.

I would consider the difference between investing and gambling to be more on a continuum rather than having clear demarcations - and so there are likely many assets that could be used for either gambling or investing depending on how they are played in terms of use of information in skillful rather than luck kinds of ways... we can think of some kinds of gambling games that are nearly pure luck (and chance), and so sometimes we can consider extremes and there may likely even be some kinds of gambling games that can have the chances of winning greatly improved if you realize what skills might be employed in order to increase the odds.


You phrase that in a strange way, and so I guess I kind of see part of your point in regards to volatility that could go either direction with some kind of assets, such as bitcoin, and sometimes people will mix up with the idea of volatility (and even difficult to predict) as if investing into bitcoin was merely a game of chance because it goes all over the place in terms of its price, its volatility and its many times bucking the trend in regards to what logic might suggest that its direction should be.

So, essentially, we likely are able to recognize that people are wrong about bitcoin when they fail to understand and or appreciate some aspects in bitcoin that might exist beyond some of the manipulation tools and/or sentiment (or momentum) indicators that they might be using in order to attempt to predict BTC price dynamics/direction.


More sophisticated gamblers don't bet all or nothing in one shot... so your attempt to make that specific contrast does not seem to be completely correct.


You are guaranteeing while not guaranteeing.  That hardly makes any sense, except that it is possible to say that bitcoin both has great odds to the upside, and that bitcoin is an asymmetric bet that allows for a decent potential for great returns as long as you are not fucking around with leverage.. but instead just merely deciding an amount to bet (invest) and then just waiting it out 4-10 to 20 or more years and then see if your bet (investment) paid off greater than if you had merely just kept it under your mattress or perhaps investing it in more traditional ways (such as stocks, bonds, gold or property).

Having an asymmetric bet to the upside is not even close to being guaranteed - even though people do not seem to be able to get the concept of "guaranteed" out of their heads.. they will say it is not guaranteed and then use words to describe it as if it were guaranteed... It is not an easy thing for any of us to get our minds around, and I am not even claiming to be completely exempt from such word/definitional traps.


That's all true.  Historically bitcoin has tended to have great performance for anyone who did not cave in and who held long enough.. then they would tend to beat almost any other investments had they done the same thing - and with the added bonus that bitcoin would have had been much easier to get into as compared to some investments are not easy to get into... but even with bitcoin, there are ways that a lot of us could have still ended up losing if we had failed to sufficiently/adequately secure our coins.

We also know that historical performance does not guarantee future performance, while at the same time, there are no real signs that bitcoin's investment thesis is getting any weaker with the passage of time, but instead it is likely getting stronger with the passage of time.. even though again, that does not mean that there are not going to be a variety ways that guys (and gal) can lose their coins along the way or that there is even close to the same exact dynamics in terms of price potential of bitcoin if any one is starting to invest into bitcoin now with a current market cap of around half a $trillion versus getting into bitcoin when it was struggling to reach a billion prior to 2013.

Don't get me wrong, there is still plenty of UPside potential. but likely there are limits too.. including that currently monetary asset classes are (including other forms of assets that hold a monetary premium) is likely included as a full current potential in current dollars as less than $1quadrillion dollars which is ONLY a 2,000x (talking about current dollar value) - but then if we consider that new inventions and technologies will also cause some of the ways in which value is even possible to most likely to be going up.. then we might be able to even imagine a world that might have somewhere in the ballpark of $1-$10quadrillion of value in current dollar value - but still would ONLY end up causing the full market potential of bitcoin to be in the ballpark of 20,000x from its current place - even if we were to assume that all monetary value ends up flowing into /gravitating to the most sound of the monetary assets (currently held by dee cornz).


I don't disagree with this point, yet from a technical point of view, it's a pretty easy "problem to fix" to potentially add sub-satoshis as a further down unit.. even though.. it would not take away from your point in regards to satoshis being our current base unit on the bitcoin blockchain in terms of it being 1/100million of a bitcoin.


For sure.. something like.. don't lose your bitcoin, should be a prudent goal for a lot of people - even if they might not believe that they are able to accumulate very much based on their current situation.. but they still anticipate that they might be able to live a decently long time into the future.. so therefore, even if you are ONLY able to accumulate $10 per month at present times, then it still could add up to be a decent amount of money  when we are looking 20-40 years down the road.. (and who knows the timeline with any kind of specificity).. .. and also if a person of very modest investing means believes that s/he has good chances of still being alive 20-40 years down the road, then s/he might want to spend a decent amount of time to figure out if s/he is able to improve the amount of his/her disposable income by either increasing income or decreasing expenses.. and so even if there might be some difficulties in this year or the next year, sometimes there could be ways to build skills, networks and/or abilities to be able to improve income down the road (in real terms not merely nominal terms... because your dollar is hardly going to be worth shit 20-40 years down the road if it were to still exist, it might cost $1million for a loaf of bread, so it is good to be making improvements in real terms, not getting mislead into believing conditions are improved merely because nominal terms have improved).


You do not need to be adding to your "cash reserves" or your "emergency fund" every month once you get to a kind of sustainable level.  I recall at one point in my life when I was single (no business and no family) that I had a monthly cashflow cushion of $500 (which just meant that the lowest point that the checking account balance projection would ever get would be $500)... but that did not account for other places in which I might have to draw if my income dried up or my expenses increased.  When I added a business then I had to increase that $500 amount to $1,500 and there were times that I went up higher and down lower, and sometimes when I would lower it too much then I would see that I was getting into "pickles" too frequently, so I would raise it order to lessen my chances of getting into "pickles.".. so cash cushion is one thing and then how much in reserves is another thing - and if you are having to dip into your reserves frequently, and if you are always (or frequently) into the practice of engaging in replenishing it, then it may well be a sign that it is NOT high enough.. or something is wrong with your balancing of factors, your life style or maybe just the various ways of your income are really inconsistent or your expenses are "all over the place.".. it might also be a sign that you are overly investing into BTC (or whatever other investments that you might have) .

I would imagine that it would be preferable to get to a position in which you are not bouncing around a lot (sure some bouncing is probably not a bad sign in terms of needing to be somewhat aggressive and not overly whimpy in terms of how much you are investing into risky assets - such as bitcoin), and so it is not necessarily easy to strike something close to a balance - and the ultimate goal would be that you are choosing how much to invest into bitcoin based on "extra" cashflow that comes from income and/or fewer expenses, rather than every month struggling to replenish your emergency funds that are already overly depleted... and of course, those are judgement calls in which you have to figure out your own proper, appropriate and comfortable balancing.

Catching up on the thread seems a lot of conversations around how to manage your money and then how to allocate into Btc buying. A few tips, I’m kinda new to DCA only a couple years, but can say am an expert saver :-)

How to do you get to 6months cash reserves?
Take your annual salary raise and send it to a cash reserve savings account
Take any non tax salary contributions and divert them to a cash reserve savings account
     Eg pension, general savings, interest from savings, sell % stock holdings, business net profit etc
     The idea is once you have built your 6month reserve you can go back to contributing in these areas
     Re-evaluate all your outgoings/expenses any savings go to your cash reserve savings account
     

When you hit your cash reserve target, divide this by the number of weeks it took you to get there. This is will help you figure what could be or close to your weekly dca amount, and how you want to allocate this across your contributions(restarting/increasing), quality of life(expanding expenses), investments(trying to increase your wealth).

I also like to reevaluate my cash reserves at least once a year to see if I need to top up. Also don’t feel limited to just 6months, but it’s a good target to start off with. Most folks can get back on track in a 6month period but it might take longer too you never know.