Topic: Buy the DIP, and HODL! - page 525. (Read 135860 times)

Thank you and i got your points here, when we are investing, it also matter on the pattern we use in accumulating, we should consider holding as more important after which we would have set the target of buying when the market is more favourable to get in, i also got your idea that it's more interesting to concentrate on buying and holding than we could give much priority to selling just as the discussion goes, it's not also about buying alone, but when to buy and hold, we have the right focus on what we are holding to the very best of our advantage althrough the period if we buy low and hold for some time, ofcourse it's a very good idea if the use of DCA is what we could adopt to make this entry each time we are buying.

It took me being active on this forum to learn this and ever since I knew this, life have become much easier for me. DCA actually eliminate a lot of the challenges people make in their Bitcoin investment like panic buying and selling, fomo, hype, fud and others. With DCA, your emotion is not totally attached and you have more comfort and convenience in your disposition.

I am a good example of those who have had terrible experience day trading Bitcoin. One single bad trading day can wipe out  three months of consistent profits. Assuming I started applying DCA to accumulate Bitcoin the time I started day-trading it, I know how many Bitcoin would have been in my wallet by now.

I will never advice anyone, irrespective of the supposed level of experience, to day-trade Bitcoin. It does not always end badly.

Sure there is nothing wrong with having ideas for selling, but that's not the topic of this thread. 

This is not the "all things bitcoin" thread.

It has a specific topic and a specific emphasis.. and so even though the topic is not about DCA, DCA is directly another kind of way to go about accumulating bitcoin which would be part of the reason for buying dips and HODL...

sell is the other direction.. and meandering away from the topic, even though surely people think about those kinds of things when getting into bitcoin, and I specifically recall when I first got into bitcoin I wanted to make sure that I had at least one or two potential off-ramps, even though I was not sure if I was going to end up exercising such off-ramps, it was good to know that they were available.. just in case.

A similar thing could happen when buying and buying and buying.  There could be some points in which we might get uncomfortable in the sense that we might have bought too much (in terms of our own financial and/or psychological circumstances).

When we invested in bitcoin, we are expected to know that the target time we may plan for the release may not work in line to been favourable for us to sell especially when the market dips and we have already targeted a precise month for sell, there are many experience some had been through in this regard, since knowing that bitcoin is not a market we can predict the outcome of the future market value at any certain time, we must only try to hold for as long as we are capacitated enough to endure till we have every reasons to release when the market becomes favourable on us to sell at a good rate.

This part of your post makes a lot of sense $crypto$; however, I will also add that it would not be absolutely required that a person establishes his/her 6 month emergency fund prior to even getting started in investing.

In other words, you can build your emergency fund while you are investing, and surely getting to 6 months is nice and solid and perhaps not even overkill, even though many people do not even have 2-3 months of an emergency fund.. and many people live pay check to paycheck and surely those people are gambling whenever they invest into anything because they have failed/refused to get their shit together prior to investing, and so any steps in the direction of making progress towards improving your situation is going to make a person a better investor, and we need not let the perfect be the enemy of the good, even if we might continue to attempt to make progress towards improving our practices and working towards making our set up more and more perfect.. and maybe we might not even completely achieve the perfect.. but working towards it little by little is much better than not even thinking about what would be the place that we would like to get to and then to regularly see that we are hopefully making progress in the right direction.


This sounds like a pretty weak idea... including "taking maximum advantage" makes it sound as if you believe that you need to cash out of bitcoin.  What the fuck you going to buy with your bitcoin that is better than bitcoin?  Sure you can consume some of it and sure you can diversity in to some other investments, including maybe buying your own personal home, but still there likely are needs (and preferences) to maintain decent amounts of your bitcoin investment at all times rather than thinking about cashing out of it.. but yeah, each person is going to figure out these matters in different ways including once s/he get through BTC accumulation, then maybe what might be a good way of maintaining some decent level of BTC stash in order to ongoingly benefit from having had accumulated bitcoin rather than selling out of your bitcoin and either consuming it and/or investing into inferior assets.


It is likely not long enough for many people, even though they might think that they have to buy something blah blah blah.. when they likely are going to be way more advantaged by creating and maintaining some kind of a longer term BTC investment plan that does not necessarily involve getting out of BTC, so in that regard, they (including you YUriy1991) likely need to engage in some kinds of thinking regarding how to transition from BTC accumulation into a kind of maintenance stage and then at what point liquidation might come. which the liquidation phase would likely be towards end of life, but the maintenance stage would mean bitcoin is forever not some dumbass short term thing that you cash into dollars or buy property that is not going to likely be as good of places (as compared with bitcoin) to keep much if any of your value.


Who cares what chatGBTC says or any of those other models? 

you need to think for yourself and you also need to figure out some kind of a plan that prepares yourself psychologically and financially for a variety of scenarios, and nothing wrong with accounting for various models including ChatGBT, but in the end you likely need to formulate your own plans, and sounds like you are having some troubles with that... so you likely need to work on those kinds of preparations.


And so you are planning to cash out some in April 2024?..

Whether the price goes up or not by the halvening is likely a big so what.. since it tends to take several months for the effects of the halvening to be felt (meaning the reduction of the new supply of BTC).. so there will be additional UPpity price pressures that likely happen after the halvening.. and they increasingly are felt in the next year or two after the halvening, which may or may not end up contributing to the price of BTC to go up after the halvening, including many months after the halvening.

His reply was equally interesting when he saw this tweet


Source

But on the other hand I do agree with what was said because at the end of the day DCA is a bigger winner than trading because as discussed earlier in the tweet "trading btc has been proven to be a losing strategy over the long run" and we have seen many people who were eventually ruined by trading and liquidated so in this case it is important if you really want to be a good investor then adopting the DCA strategy is not the wrong thing.
On the other hand, our discussion from so many pages is not wasted because this is in line with what we will plan and think about in the bitcoin collection scheme as investors.

True, this is very relevant and makes sense, however, regarding the pattern of investing in BTC using the DCA method if it starts today... I think the waiting period of 5 years might be too long for me personally, maybe for other people. Yes, I was thinking and this is definitely not a reference as conveyed by brother @2Pizza410000BTC regarding the BTC price target via the GPT caht application because it is possible that the current data has not been completely generated. there is a big possibility that in April 2024, to be precise, the profit can be felt and one more thing I think is the point, for those who have a monthly salary and are already paid, this DCA style investment pattern can already be applied  .

If there is no emergency budget, it could be that the investment will fall apart, we humans are in need of the unexpected so understand this, don't ignore that emergency funds are important for your needs, including your family's health costs.
There is a theory that to start investing it must have a reserve fund for the next 6 months so that investment will not be disrupted, the next 6 months can be categorized as an emergency budget while there is still income every month, so investment will be much better when something starts with a mature plan.

Of course they have different views on how to invest in bitcoin, here we must be able to accumulate bitcoin and that many people want.
Surviving 5 years with bitcoin I think that is enough to take maximum advantage.

This is expected from experienced users especially if you have a manageable budget to invest consistently with a DCA strategy. I agree this is the best way to build your investment portfolio well, but I don't expect you to lie to yourself about what you say.

I'm sure some of them bought on dip and DCA prices, but I'm sure not everyone who says they are actually buying because of the budget constraints they have. Honestly, I really want to stop this nonsense, but let them think for themselves. red4slash, you know that you still need to have an emergency budget to deal with unexpected financial situations, so you don't need to emphasize your desire to invest consistently if you don't have an emergency budget.

I continue to accumulate bitcoin with the DCA strategy and to be honest I never thought of selling it in a hurry even though it already has profits in the portfolio alone, but does that invalidate the strategy that I use? I would say it does not invalidate the strategy that I use.
I understand that we will sell eventually, but not that fast, because for me personally it will take a very long time to hold it, yes at least if it reaches ATH again that is the time I think is right to sell it.
I'm thinking why sell quickly (even though we already have a profit) when we can maximize the profit we can get.

In a recent news I saw the exact procedure of DCA.

QUESTION: "Oliver, why don't you trade #Bitcoin   ?"

ANSWER: "Well, trading #BTC    has been proven to be a losing strategy over the long run. Do you know why? Because 80% of all BTC's gains happen over only 13 days per year.

If you miss just one or two of these days, you're finished as far as being able to beat a simple weekly DCA (dollar-cost-average) buy and hold plan throughout BTC's full four year cycle.

Additionally, once you add the cost of taxes in the form of short-term capital gains, trading fees, and slippage, you've further eroded the possibility of beating a simple DCA buy and hold plan.

I've been a trader for 43 years, 37 of which as a professional. I've done the numbers on this every which way but loose, and I'm telling you this:

I will beat you as a trader with ease every single cycle while puffing on Cuban cigars and sipping on the finest wines of Spain and sleeping like a freshly bathed baby every single night with my DCA buy and hold plan.

I don't trade #Bitcoin because I want to win, not lose. Got it?"

Shout out to Spain 🇪🇸.  I love you!"

THE END
#HODL

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Yeah but we are not talking about selling in this thread, so you are talking about the wrong kind of supposed DCA if you are suggesting that it involves selling or needs to consider selling.

Sure if you are trying to accumulate dollars, then you might sell whatever it is that you buy when it is at a certain point in dollar profits, but again, we are not talking about those kinds of strategies in this thread.

The amount of DCA assets depends on the individual investing. You can purchase Bitcoin in different steps to make long term DCA. The right way to trade in Bitcoin is to divide yourself into several parts. So that you can buy when the bitcoin market is low and sell it at high speed or hold long term. Following these methods is called DCA, there is very less chance of loss if you invest in DCA method. And if you invest directly the chances of loss are high. Hence following DCA is the main sign of an ideal investor.

DCA doesn't mean going all in at once and if anyone does that, that person is not DCA in the real sense but have just gambled, because when you talk about DCA approach, it has to do with a long term practice for small investors that want to DCA all the way up and down depending on the market conditions at that time, but more also if any one have big bag and want to buy all in at once, it then left for them but they may not be DCA in the real sense of it.
So the ideal DCA will be buying all the way at every market direction setting aside only 20%-39% of your total monthly income and holding bitcoin and a traded asset that allows you to take advantage of the market at any point, and This also applies to DCA on any coin.

The approach to proper DCA can not be single handly outlined since various market organs also have their own.

This discussion always repeats itself because every time I read this thread from the previous few months there is always discussion about the ideal DCA (for some people) and there are already several people who have given their views. You just have to look and read a few pages behind whether some people's views will be the same. suitable or not for you to adapt as a strategy that you carry out in your DCA.
Meanwhile, when you look at financial conditions (income) that are not very stable, actually that might be a reason, but I think when someone is aware of the economy and their income then it is not a problem because of course we already have financial management and we cannot possibly do DCA with the same percentage. bigger than the income we earn and save in one month.
That's why many people always discuss investing according to what we can afford because when we DCA it's not just about buying once and then it's done, but we need to take into account whether the money we spend (for the DCA portion) can make it consistent in the future because this is important. so that we know how much we have to budget for purchases in DCA in a day/week/month.

Even though maybe we are arguing semantics, I would not consider there to be different perspectives of what is "long time" but instead there are people who are in different place in terms of their own circumstances that affect how they think about buying bitcoin.. and even though people can do whatever they want, frequently when i talk to people, whether in this thread, or in other places (or even in the real world), I suggest that bitcoin "is best" thought about as a long term investment.. so I am attempting to create a certain framework regarding how to think about bitcoin in a healthy way, and they are free to disagree or do whatever the fuck they like... but it still does not mean that their perspective is likely to be equally correct when they fuck around with trading and other kinds of gambling bullshit with a pristine asset like bitcoin in which it is quite likely that the long term lucrative approach to bitcoin is likely buy, accumulate and hold..rather than fucking around and proclaiming "my perspective is different" blah blah blah.

And, yeah, people are free to do what they like.

And, yeah, many people are not quite ready for bitcoin because they don't know shit about it, even if they might think that they know because they heard the name bitcoin or that they heard some disinformation that they believe to be true.

Part of the purpose of sharing information, perspective and framework for people is to help them to potentially benefit from someone who has spent thousands of hours studying bitcoin rather than their coming to their own nonsense without hardly even thinking about the matter beyond throwing a dart at the board.

Don't get me wrong.. sometimes shorter term perspectives an end up paying off quite stupendously and even allow someone to profit stupendously by some ways of luck or timing in terms of being new to bitcoin in early 2020, and then for example buying $50k worth of bitcoin around the 2020 covid dip (let's say 10 BTC for $5k each), and then maybe considering early 2021 as a bubble selling at $60k and then buying back at $30k and then maybe selling again at $60k and buying back at $18k.. but I have my doubts that anyone would really be able to time very many of those kinds of moves.. so those tend to be lucky rather than the right approaches, even though some times people might generally be able to get in and out at right around the right times but maybe not exactly for the right reasons beyond their saying that they have "intuitions."


I doubt it.

This is not a thread about "no matter what you do is good as long as "profits"".. so you may well be in the wrong thread.

There is a framework in this thread that has to do with long-term accumulation, so even if you say that the thread is motivated by profits, that does not mean that everything becomes fair merely because there are other ways to make profits.


Yeah, but it seems that I was motivated to respond to Patrol69 in the first place because he seemed to have been perverting and convoluting ideas since he was saying long term, but he is really aiming for $100k and he is willing to wait.. which does not really mean the same thing to me, even though sure, he can do whatever he wants... I just thought that it was confusing the way that he framed the matter of time versus seeming to have a price target.


Of course that is up to you in terms of how much priority to give towards learning, and sometimes just getting started with small amounts will give you some incentive to spend more time learning.  That is one of the advantages of DCA in terms of setting a small amount, and then perhaps learning along the way (including figuring out your own financial and psychological circumstances) prior to making tweaks to how you might later decide to approach the BTC investment that you had already started with some level of DCA, even if it might be starting with ONLY $10 per week rather than a more aggressive amount such as $100 per week...and yeah of course, some people could not even afford $100 per week so these kinds of number suggestions need to be adjusted for where someone might be at in the world and/or where they might be at with their own budget and/or psychological situation.

and you can also tell your friends that currently many mass media are also discussing this matter. Yes, the DCA method is one of the techniques for investing with Bitcoin and one of them is Forbes source: https://www.forbes.com/sites/digital-assets/2023/08/30/time-to-start-dollar-cost-averaging-bitcoin/?sh=19e97b853a90 and I think the explanation from @naira and other friends is very helpful in understanding how the technique works.

What I understand from experience is that someone who is new into bitcoin investment will say that he is holding for long term when he plans to hold for 1-2yrs. Another thing that I see about newbies is that because they are new in the market,they are eager to sell and make profits when bitcoin reaches their price target and they will think that it is the best way to make profit. Such people in this category because of this mindset of others,if bitcoin price didn't pump as they planned it but went in reverse direction,they would be able to continue holding for long and they will quick sell of because of panic and they didn't plan holding for a full circle. The fact remains that the longer you hodli and DCA on your bitcoin investment portfolio,the profit increases respectively with the number of circles.

On the other hand some new investors that just started their Bitcoin journey might tend to hold for two years due to their decisions on their target number of bitcoin but as time passes by and they have reached the given time,they might decide to further their accumulating time and number of bitcoin to a longer time. What I mean is that if one plans to accumulate 1BTC for 2yrs and getting to 2yrs,he decided to increase his BTC to 2BTC because his believe in Bitcoin have increased and also financial income,and continues with DCA for another two years and so on. But if you only accumulate for 2yrs and sell off and think that you have invested for a long term,you are wrong because you don't get it. You must complete a circle which is four years for you to have good experience of the market,so that you can take advantage of it in the next circle to accumulate more bitcoin. A time is coming that those investors that are use to a very long term investment,like 10-15yrs up will be the most wealthiest people because they took advantage of hodling alone.

Thank you for your input and I am now more confident in making decisions and the risks have also been carefully considered.

Sorry for the inconvenience I've caused for asking a question that has already been discussed many times. In the future I will try to read more. Thank you for the input you provided. Maybe there are many things that I can pick up plus points and have more confidence to invest in Bitcoin on a regular basis.

We have to identify some things clear from this discussion, some hold on many reasons which we can see part of them as for an investment asset to retain and maintain it value over a period of time, some to increase their holding capacity by making profits from it over time, lastly some prefer to hold in bitcoin because they realized the challenges with the fiat economy whereby inflation decrease the financial value of what they have and sees bitcoin as the perfect alternative, which means in whatsoever reason we decided to hold bitcoin over time, we should know the risk involved as JayJuanGee has highlighted, we are investing or holding base on our personal research and information we have about bitcoin investment and not because others are doing so, because along the way you could discover some challenges that may warrant you releasing anything you're holding onto, just as we have with this period on bear market.