Topic: Buy the DIP, and HODL! - page 515. (Read 135878 times)

Truly is only money that can solve our emergency but in most cases over aggressive accumulating can lead to lack of funds were as an emergency that needs money could come out and at that time your left with no money to solve the problem because you have spend all your funds on accumulating, as such you maybe left with no option but to sell off some of your Bitcoin and at that point it could be that the price is a bit lower than your entry point so you end up losing which is a wrong strategy for investment, so this is one of the reason why DCA strategy was introduced because of scenario like this, if you had use DCA strategy you would have not gotten to this stage it would have helped you on risks management as such allowing you to be accumulating a bit by bit with a small amount of dollars while you save the remaining ones for emergency like this and by that time your investment is safe.

Everyone who has decided to invest in the long term of course has planned well in advance. So in my previous review I said that they must be ready to throw away their thoughts/desires to take advantage quickly because if they can't do that, then the list you mentioned will not be in line with what I have mentioned. The list of items mentioned is a basic list that they have prepared to run their investments in the long term. Well, like the financial aspect (JJG has said that if you can't allocate $100 for investment every week then you can reduce it by adjusting the income you get). Another interesting list for me is the level of patience (patience is the main principle that they must have every time they invest, whether in Bitcoin or other investments, because achieving success is always accompanied by patience).
So on other points it won't have a big impact, because if you are not disciplined, it won't be a big problem because we make purchases in stages and if you miss 1 stage level it won't be a big problem because you can continue at the next stage.

This is the reason why one have to increase his emergency funds and reduce the amount that he is using for DCA. All these is because the person failed to prepare properly before starting his bitcoin accumulation. If not one should also consider some unforseen challenges when investing and prepare funds for that so that you don't end up selling your bitcoin when it isn't your will.

Yea, when we fail to prepare well, there will be no other option that to sell the bitcoin to use to take care of important responsibilities. This why one needs more than one source of income so that no matter the level of inflation it would't affect you from accumulating,but if it does affect you from accumulate, you can stop for a while before things put themselves in shape, rather than selling the little that you have.

I agree with you, DCA method has eliminate those reason that was mentioned by @Danny001, because you have planned to use a certain amount to DCA based on you cash inflow and this makes it a proper plan and discipline on your investing strategy. Someone that procrastinate will never DCA amd wouldn't be able to achieve his goal when he has the money. The people that can procrastinate are those that think they are wise enough to time the dip in bitcoin price or those that want to buy in lump sum. It is a good amount of emergency funds that is needed to enable you with you regular DCA method and not as mentione above ny Danny001

The only thing that can resolve our emergency needs is money. As I have mentioned, it is easy to say that I won't touch my BTC holdings if any emergencies arise, but it is hard to do if you don't have any side income or any other source to assist you in resolving that issue. This happens to me many time. I tried my best not to sell part of my holding, but the situation forced me to do that.

just to mention you again by the this thing already has been discuss i think you did not read my previous So, As per yesterday discussion what i have learned that not hoping too much from market which i get to learn from @JayJuanGee i used to think i just wait for some time to see kinda dips in market which now i think was not good for me. In this way a term, which is highly used FOMO (Fear of missing out) we prey of it. after that what left? we have to repent of the price we just miss out TBH the same thing happened with me yesterday when the Price of Btc was about 26k500$ i was aspecting it to go about 25k800$ but what happen? Totally opposite BtC price goes up at touch to 27k200$ this is what i learn never makes too much hopes from market.


I don't know Bro what are you trying to say here you are giving the Newton's Law of physics and relating it to the virtual assets i'm not trying to point out anything like your example fit here accurate here or not like bro its digital world physics example fits more accurate in physical world i think... or Maybe i am not getting what you are trying to say.


I would say if you are thinking for long-term and Also doing BTC accumulation its good idea. in case if it is me who is doing BTC accumulation i would never withdraw my BTC until i reach my planned goal. I think this time is very smart we also need to smart as we know this is the time where alot of people having good cash inflow by doing from different kinda online jobs and physical jobs as well.

they just need to prepare themselves  to overcome their emergency situation somehow So that they need not to withdraw their accumulated BTC in the form of funds as emergency situation.

Even though I throw around recommended amounts that are $100 per week and then $10 per week as a fallback position, I am ONLY using those kinds of numbers in a kind of framework in which many people should be able to put together some extra money, and I remember in more than 30 years ago, I was fairly new in my investment journey and I was able to set aside $100 or $200 per month, even though the amount that I made was really low back then, and in some sense I figure that more than 30 years later it should be much easier for people to put aside $100 or $200 per month, because the dollar is ONLY worth around 20-40% as much as it was 30 years ago.. depending upon which products/services you are purchasing.

Nonetheless, we cannot presume that people have disposable income, even though an overwhelming majority of people should be able to put themselves into a place in which they have disposable income, which means that the amount of cash coming in on a monthly basis is greater than their expenses on a monthly basis.

If you do not have disposable income, you should not be investing.  If you do not have disposable income, you should be attempting to put yourself into a position in which you have disposable income in order that you will be able to invest.. and yeah, we see bitcoin as a great place to put such disposable income, yet people still have to get to a position of having it before we presume that they have it, even though sometimes with some tweaks people could get to a place that they have disposable income.

Another problem that a lot of people have is that they enter into a lot of debt that they probably should be attempting to get into order prior to investing, but many times, there can be ways to pay down debt and to invest at the same time, but there are needs to put together plans and to attempt to stick to plans when a person might not outright be in a position in which it is reasonable to invest and they have to juggle around their finances in order to invest when probably they should be placing a high priority on getting their shit together.. .. so I hate to preclude people from doing several things at the same time, as long as they are able to have a plan and to attempt to follow it and have a timeline for making progress on getting themselves to a better and more sound financial/psychological place.


Sure. Once we have our number, we can attempt to be strict about it, especially if we are reasonably within our budget, including having various cushions in place that are suitable/tailored to our situation.


Since bitcoin prices are generally trajectoring UPward in spite of some 2-3 year short-term questions regarding profitability of the DCA strategy, the longer that we have employed DCA, the more that we would currently be in profits, and currently it takes close to 3 years to clearly and unambigously start to be in profits from a strict DCA strategy.  You can play around with the dates on this website, yet I think that the bigger picture does suggest that the longer that you have been in then the better off that you should be so long as you would have followed a strict DCA strategy, and surely people who follow a strict DCA strategy might not even be participating or reading a thread like this, especially since many guys in this thread are figuring out ways to hybrid their DCA strategy or even to abandon DCA in order to employ buying on dips and other strategies that they believe might be able to perform better than a more strict (and arguably mindless) DCA strategy.

Truly DCA is a game changer and it has helped in risk management instead of accumulating Bitcoin with a huge sume of money were as you can easily runs out of money but with the use of DCA you can be able to manage your risk through accumulating using a small amount of dollars, so i totally agree with you, DCA strategy should always be the first thing for a beginners to understand before accumulating,  just like me if I had understood DCA strategy during when I started accumulating it would have been more helpful to me a lot but I'm using the strategy now and is helping me, one good thing about DCA strategy is that let's take for instance your earning $1000 on monthly basis from your salary, using DCA strategy you can set a target by accumulating weekly using $20 wehich we no cannot affect your main capital and before you no in the next ten years you have gotten a good portfolio.

Well, in this 1 day I was a little relieved because BTC went up and several of my mainstay coins, especially BTC, had fallen. It's time to monitor the market again and readjust the DCA strategy to make it even more optimal and feel the flexibility of installment trading with this method even though I still don't have much funds.

Even though this figures are realistic, to truly demonstrate the power of compounding and little beginning, we could go as low as $10 per week and spread it over five years. This will achieve the same result and the person performing the DCA will not even know he was spending money on anything... his lifestyle, expenditure and everything will be going smoothly, without any financial stress meanwhile he will not even know he is making futuristic investment that can even be his greatest achievement.

If I want to teach somebody about Bitcoin and how to start investing in it, I will simply teach them to apply DCA with as little as $10 per week. Irrespective of the social status or the asset class, this is feasible and affordable and there is high chance I will be able to convince the person instead of telling someone to invest huge amount of money at one.

Like it has been abundantly emphasized here, the DCA method is truly the game changer for those who want to make maximum use of the opportunities offered by Bitcoin, it handles all the psychological hindrances that many people face in Bitcoin accumulation and management.

We can determine the amount that can be allocated for DCA needs based on weekly or monthly income, at least an investment allocation of $30-50 can be reached by all economic classes for the lowest amount to realize the DCA strategy per week. We must consistently carry out the DCA strategy until we reach the planned investment target, if we set a target of investing $2.6k in bitcoin every year, so the calculation is that every week we have to invest $50 for 52 weeks.

We need at least 2 years to more optimally assess the progress of investment performance, because the DCA strategy is different from instant investments of large amounts, I think DCA investments are like savings for the long term and DCA investment options are very appropriate for converting to bitcoin, even though the market movement category is the highest but Bitcoin price can reach ATH every time after the halving period or more or less within 5 years, I quoted in another thread which stated that who would have thought that we could buy an iPhone 15 with just 0.03 BTC, imagine if you implemented DCA since 2015 then the investment performance progress would be very profitable.

Certainly, I can't predict the future, but I can anticipate what might occur. While it's crucial to pay off debt, it could take me a decade or even longer to accumulate the same amount of Bitcoin that I could acquire in just 2 to 3 years. It's also a good idea to have some cash on hand, but a better idea investing in a Trezor and Dcaing.


The perspectives you mentioned are focused on the long term, and indeed, patience is essential. I realize now that I've been placing significant importance on my emergency fund, which I intended to keep, but I had considered using it to buy Bitcoin for various reasons. I think I might not have reconsidered this if it weren't for your viewpoint and Agbamoni's input. I appreciate it! It's valuable to listen to different perspectives and opposing arguments; that's how we broaden our understanding.

It seems that you are getting DCA mixed up with other kinds of investing (such as lump sum investing), because DCA overcomes each of those items in your list because once you get started, then DCA makes it easy to overcome each of the items, because all you need to do is pick an amount.. $100 per week set it and forget it..... and if you think that $100 per week would cramp your lifestyle too much, a different amount could be chosen.

Of course, there is a need to both set up the DCA and there is a need to figure out what the amount is going to be, but there are ways to do minimal levels of work.. and then just let the investment strategy ride for several years, and sure maybe after a few years, there might be some needs to look at how the investment is doing and then to reassess whether further actions might be needed, and if the amount is starting to add up to a lot, then having stake in the game may well motivate further activism in regards to the investment.

As nothing is actually ever simple in this world to do especially when it comes to field of financial stability same thing applies to actually successful holding your Bitcoin and it's another case if you are accumulating through DCA, why? Well because it's not an easy task and most people actually just give up at the long run of it because of so many reasons and here are some.
---lack of discipline
---wrong financial income or none at all
---No proper planning
--- procrastination
--- impatient
Before anyone can properly practice DCA and still hold on to their investment for a long period these certain barriers are to be broken.

Part of the asymmetric upside nature of bitcoin means that you do not necessarily have to invest a lot in order to potentially profit a lot, which likely means that you should invest reasonably and try NOT to lose your bitcoin over time, and you can choose your own level of aggressiveness that you choose to be in accordance with your BTC allocation/investment amounts.


Each person has to figure out his own allocation, and I use $10 to $100 per week as an example of an amount that could work in order to attempt to make progress, but in the end, if someone is figuring out how much money s/he has available for investing, and s/he might consider that putting aside 10% for bitcoin investing, then it could take 10 years to invest 1 years worth of salary, and at the same time, whether that investment grows or not over the 10 years might help to inform such person about whether s/he is investing aggressively enough or whether s/he is allocating to the right kinds of assets, whether bitcoin or other assets or other ways of managing his/her investment portfolio.


Usually the standards for emergency fund would be 3-6 months, and there could be separate kinds of buckets for various kinds of expenses, but emergency fund is something that is not really expected too.. of course, you could go up to a year, but that might be a bit too much.. depending on your circumstances.  

Another thing is projecting out your cashflow and expenses, and you can go out 18-24 months or longer, but how far you go out may well relate to how complicated your cashflow expectations, yet the cashflow versus expenses of the next few months are still going to be much more important to have good understandings about as compared to those that go out further.

I remembered someone commented on this thread that he is using DCA to buy and at this same time, he setup some funds for buying at what he considers as dip... I guess that is what @snowpega is doing. Like you said, anyone following this approach should be prepared not to beat himself up if Bitcoin price did not follow through as they expected.  

By Newton's Law of physics, a body will continue in it's state of rest or uniform motion unless it is acted upon by external force. This law of inertia also apply to humans in a way. Some people will continue to expect dips and further dips until there is an obvious sustained bullish regime. This is how some people are wired. I do not consider this a defect rather, I see it as a demonstration of our uniqueness.  So, even though it may not seem realistic to you there are those who are convinced that price will dip further irrespective of it being oversold or not. What I have described is not peculiar to newbies, there are conservative old hands who still display this tendencies.  

Being a wise investor can be challenging because our natural instincts often lead us astray. It's essential to control our impulses and emotions. Typically, the best investors do things differently from the majority, which is quite tough. Even though many Bitcoin enthusiasts already do things differently, I believe our approach, staying calm and collected, aligns with what you mentioned – being intelligent when acquiring Bitcoin, doing so with careful thought and wisdom.

Absolutely, correct

Of course I will see how much my aggressiveness towards bitcoin will be in accordance with what I need, but I do not want to be excessive pressure, when this week/month is not able to enter fiat into BTC then I will stop for a while after returning to normal I will continue again, actually this is not about how much bitcoin is obtained, but my thought is how long will this be consistent? Could it be years? I will maintain while there is still income that I get.

Western countries and Asian countries are clearly different (that I know) Asia can be said to be quite low income but by putting fiat into bitcoin around $15 / $20 it is more than enough not to mention they can increase it to $50 but I think for $100 per week this will be too heavy to say it is not my capacity to meet excessive targets, I will be more on a small nominal will remain stable every week.

Well of course there is no guarantee at all that bitcoin will perform well, even the price can go down because there is volatility in the market, but we believe that BTC assets are important, and always read the history of bitcoin that it is likely to go up.

The guarantee of a monthly cash inflow gives us ease of mind. We can think clearly because we don't need to think about our monthly expenses. Saving a portion of our wages and investing them for long-term growth gives us confidence about our future, and we think of ourselves as cleavers and long-term visionaries. When things turn against them, they think of themselves as stupid; this is human nature.

Not to use your investment (in bitcoin) when emergencies arise is a strong statement but not a practical one. When people don't have money to cover emergency expenses, they tend to sell their assets. If you are investing in bitcoin as a retirement plan, then you should not sell it, but in times of emergency, your senses will tell you to sell it.

I'd say you hold onto your emergency fund and start investing what you can into Bitcoin using a Dollar-Cost Averaging (DCA) plan. It's VERY IMPORTANT to have an emergency fund, Kodec and JJG explained it well. You already have enough money to cover a year's worth of mortgage, food, and gas, which is essential for times like these. I personally wouldn't take the risk, and I advise you not to either. Speculating on whether Bitcoin will increase by 100X after the next halving is uncertain. It's better to pay off your debt first and then invest what's left. Your mental well-being will benefit from this approach. As many others suggest, stick to your DCA strategy.

If Bitcoin does what we all expect (based on our speculation), would it be foolish not to put a large portion of this savings into Bitcoin? In spite of raging inflation, my gut feeling is that an emergency fund is always prudent, as much as losing that purchasing power sucks.