Topic: Buy the DIP, and HODL! - page 61. (Read 89640 times)

It is better to keep some money only for your emergency fund, and invest the rest of the money. Because the money that you are saving to invest later can be spent without you wanting. Saving money is dangerous, if you have money on hand, it is better to invest it immediately than to wait. You keep funds strictly for the most urgent needs and to meet the basic needs of people, this is a very good thing, because the danger of people never comes. You have set aside funds for urgent needs, now I think you have no special need for money. So instead of keeping your money in your hand, it is best to invest it as it will give you higher returns over time.

18 months is long enough preparation if  he mean about that emergency funds and we might just waste some money there for hiding a lot of money intended for emergency funds since for sure in span of 6 months we can find another opportunity that can generate us another source of income.

For people still got confuse about what is emergency funds and how should use it then maybe this article could able to give them an idea about its real use https://www.wellsfargo.com/financial-education/basic-finances/manage-money/cashflow-savings/emergencies/ They should not get confuse about their reserve funds since this is truly different since this can be a disposable amount which they can use for additional investment or other things they need in life. 3 to 6 months emergency funds reserve is enough and for sure we can secure our selves with that time span.

No one really knows, however, isn't it the essence of DCA though, regardless of the price, you are going to buy weekly at least so why wait for the price to dip? Just buy and see how it goes, doesn't matter if the price is up or down, as long as you are consistently buying and looking for long term perspective, you will be all good. So that's the key here, you can step aside your weekly money, maybe less than $100 will do in beginning. Everyone as went to this kind of method, it's tough I know, but if others can do it, you can do it. No need to wait for the dip, just like what had happen when the price goes down to $57k because it will bounce back the soonest but if you DCA, you won't be affected by this wild swing in prices.

Buying Bitcoin with the use of the DCA method doesn't necessarily mean that you have to buy during the DIP, as a matter of fact, at the different times you will eventually make your buys, there will come several moment when you will buy at an higher amount and other moment when you will buy at a lower amount but what's important is that  the DCA methord helps you to consistently buy your Bitcoin over a long period of time which will help compound into a good amount of Bitcoin in the long run.

If you're doing your DCA, it doesn't really have to be a serious concern to you if there will be any special DIP during this month or not. It's just best you set out your scheduled amount and time that you are going to buy Bitcoin and then stick with it. Most of the DIP that happens within a month don't in most cases exceed $10k or so and apart from some special when we've experienced a sharp upward move in the price of Bitcoin, whatever time within the month you choose to buy your Bitcoin is still always going to be okay. if we look at the Bitcoin price movement as at last month for instance, there were certain times it went DIP to around $60k and other time it went up close to $70k but if you're being realistic, you know that if you're doing monthly DCA, you only have  to buy just once in a whole month and so it's not even necessary to stress yourself about what price within the month is DIP enough for you to make your buys. Same is what's applicable for those doing weekly DCA as they can only make four buys within the month which means it's not even wise to attempt timing the price before making any buy.

As long as you're buying your Bitcoin for the sake of holding it for the long term, even if you buy at $60k, $70k $80k or even $100k and you do it consistently for a period of ten years and Bitcoin manage to get to $150k or above, it's still a very profitable investment because you've at one point preserved your wealth for future use and in addition to that, you've made a good reward out of it most expecially if within this timeframe you've been able to buy a good amount of Bitcoin.

Maybe you needed to tell more about yourself because it not wise to wait for the dip before buying Bitcoin especially if you are a low coiner, it also seems that you have a misconception of the idea of dca because it doesn't requires timing or waiting for any of the market conditions and it is either you are a trader and not an investor or an investor that has gotten to his maintenance level in his accumulation journey, you can't keep waiting for dip before making purchases because there is no guarantee that you are going to see the dip you are looking for and you can mix out good buying opportunities , a low coiner should have no business timing or waiting for dip before buying Bitcoin but should rather make purchases consistently with dca and can as well prepare to buy when there is a dip with a reserved fund, those that uses the waiting strategy of buying the dip are the traders with the aim of a short term profits and also those who are already in their maintenance level that may not necessarily be consistent in making frequent purchase but may decide to make purchases at a dip.

I am basically ready to buy another dip in DCA method this May, I deposit bitcoins in DCA method every month. But since the beginning of May is only a few days away, I wonder if there is a possibility of a dip in Bitcoin this May? 
But in the middle of this month I will buy bitcoin dip and deposit. This May I will buy bitcoin dip because buy dip by accumulated money must wait some time and wait to buy max dip.

Yes this is inevitable truth but it can effectively work when the money you have is sufficient in all side of life, apart from emergency fund other fund is already outstanding for others purposes, if some money one has has nothing to be assigned for and stand to be static with yielding any interest the best is to invest it where it will give income at the stipulated period of time either by increasing the existing investment, but where as such money mat need augent need no need to force it into an investment where it will not be long to withdraw because what we are dealing with us Long time issue. And one most important thing to note is that if your running for Long time investment one should avoid over investing because that can leads to cutting short the investment except you have weigh your source of income can carry no matter how your stretch it won't affect the investment to be cut short.

I think you are stressing the issue more further because @Tungbulu has explained the reason why those mistakes has been repeating and perhaps judging from his state he seem more like a beginner who doesn't really know much and in a case like that mistakes could actually happened, actually the reason why we are all here is to learn and this place has helped a lot by changing the wrong perception most people has about Bitcoin investment, so perhaps @Tungbulu mistakes or network error shouldn't be the reason for us to disregard the reason of this thread, so whichever way I think we should change the discussion to the main reason why we are here because is obvious that the discussion is diverting our major discussion here.

Investment success must be based on a proper planning and an additional amount of money to meet basic household expenses against disposable income. If you have a lot of income you can increase the amount of investment, but the amount of emergency fund coverage for a long period of 18 months but I think you are wasting. You could have kept coverage for at least 6 months and should have decided to invest the remaining amount. In this, you could get the investment profit of your extra money. Even during bearish periods more BTC should be invested. To be honest many are more conservative in decision making which may not be correct.
It may be a good decision to withdraw yourself from waste when you know you have to continue through the holding.

I commend you cryptoprincess 101 on this repeating blank of Tungbulu , what u will advise on this case as there will be no other solution than to install another browser or check properly the app on it phone or garjet if there is some unsupported app acting as virus because his explanation on its experience is not any other thing than error of not selecting the quote properly from my view.

It seems you are after something here. Even if your intentions are genuine you make it obvious that you post and respond here whenever two persons have replied. Correct your ways, you are making lots of mistakes and you won't learn what you came here for. It is not about who creates the highest dialogue but who speaks when is the right time.

I perfectly understand your point, and I have no intentions to argue but rub minds together, share ideas and POVs in order to learn and unlearn, isn't that the purpose for this?
Well like I said, I totally understand your POV, but it appears it is you who misunderstood mine, I'm not entirely saying that Lump-summing is a bad person ineffective strategy, I'd never condemn it. And yes every strategy has its prons and cons, and the fact I'm trying to state here is that, lump-summing COULD make one forget to set aside some funds for other things, especially for investors who are ignorant about having an emergency fund and not that it's an ineffective or a strategy that mostly leads to losses.

Argument?
I should really start working on my choices of words, cos it appears my current choice of word doesn't really convery my true intentions quite well.
My intentions were not to engage in an argument with you neither did I neglect your candid advice and observations which are quite helpful and well noted and appreciated.
Like io said, I'm quite new here and still adapting to the forum's modus operandi, and now that you've brought up an observation and a possible remedy, I'll be sure to consider it in order to avoid future occurrences and possible penalties.
Once more your observations were well noted and appreciated.

I actually don't want to involve myself in an argument with you all am saying is for you to be careful at your own detriment because checking at the time frame between which you make the posts doesn't show any sign that it is a browser error even if it is you have to consider installing a new browser to avoid future reoccurrence. My candid advice and it's for your own good and to avoid your account being tagged.

Every strategies has it's prons and cons and there are several reasons for investors choice of strategies and there is no reason for this arguments or making any forms or comparisons. However, it seems that you are misunderstanding the Idea and concepts of the lump summing such that the fact that any investor will option to make the use of the lump summing as a strategy does not necessarily means that there was no provisions made for emergency funds or to have not taken care of his other needs and probably might not even be as a result of fomo. The Idea of lump summing has more to do with investing right away with a huge sum of money readily made available for investment after ensuring your other needs are taken care of including emergency funds which is Very important as individual even without venturing in to investment.

ofocus being too technical as an investor is not really necessary, what matters most in to keep investing through weekly DCA strategy having a discretionary /reserved fund or floats and also and emergency fund setting a long term goal of minimum 4-10 year and 20 to 30 year at most and all this does not need to be an expert or being too technical before you can be an investor. but checking my conversation with JJG, I was trying to point out something, and that led to bringing out some information which involves much shitcoin which I have acknowledged that it is quit a bit misleading but that doesn't mean that people must be more technical before investing in bitcoin. in bitcoin Investment, as far you can have a reserved or float and keep on DCAing,  and having patient not to sell then you are good to go. What you said is actually true and no doubt about it. This statement precisely 👇

Every real Bitcoin investor should think of himself as an HODLer that's building his bitcoin for the long term purpose and any sort of idea like categorizing yourself as an hunter, FOMOer or even trader doesn't fit into the real niche of Bitcoin investments but might possibly become a setback that might hinder the holder from for being able to continue to DCA for a long.


funny though, but my intentions was not to shear a link that will be problematic or need to learn about some fucking shitcoin, though I was expecting you to look into the important part of it because internet link doesn't know what this thread is talking about lolz.

surely most of the article explains more of shitcoin but a kind of explanation and reference but thought I don give a fuck about those explanation that concerns shitcoin but looking towards bitcoin only. like what I said earlier we should look into some important and vital message it's passing across and leave the rest shitcoin crab. sometimes we feel we are doing things right up but don't know we are in deviating or bringing up a misleading information. for the rest of your comments, I would have replied you but I understand every bit of what you said and that's why I chose only this few part in other no to repeat our conversation.

My apologies if this may be causing any form of inconvenience or if it is breaking any rules...
Any yes, you're right that this is either caused by a mistake or an error in my browser network. Sometimes I submit a reply and the browser network takes time to load this content and sometimea it is successful without indicating and sometimes it's unsuccessful, so I'll need to send it again for the second time, Hence the repetition and I find it impossible to delete the other one. I'd really like you to tell me what I can do in cases like this to avoid the repetition cos I obviously can't leave a blank page nor delete the post. If there was another way, I honestly do not know as I'm still relatively new and trying to navigate my way around this forum. So please, why don't you help me out.

While you may be right at some point, when that man receives that huge sum of money and decides to invest everything due to FOMO or ignorance about the importance of having an emergency fund as well as a reserve for future emergencies amd expenses, and he decides to invest everything (lump-sum), would you not consider his actions or method as aggressive?

Let's properly look at that hypothetical scenario. A man has been studying about bitcoin investment and becomes too enthusiastic to invest in it without actually knowing everything about bitcoin, of course we already know that knowledge is limitless and you can never know everything no matter how much you know, you'll still have so much more to know. And in Bitcoin investment, there's just so much you wouldn't know until you've started your investment, those things studying wouldn't teach you all that, there are things you learn via studying and there are others you learn via experience so to gain the experience you need to be actively involved and utilizing the knowledge you've obtained over the years .

So let's assume the man in question have gathered lots of Bitcoin knowledge but has never invested before due to lack or limited funds and then all of a sudden, he receives $5k and without knowing that the importance of setting aside some money (Emergency Funds, Reserve and a float), or he's afraid on missing oitbon all the profits because during his waiting period, he's been seeing how profitable the market can be and how much he could've made if he had some good number of Bitcoin (FOMO) or simply because of just how enthusiastic or optimistic he has grown towards the market, he invests all $5k via lump-sum strategy, would you still still not consider his actions as not being too aggressive or still say you do not see any relationship between aggressive accumulation and lump-summing?

And yeah, every strategy is unique in their own way, it depends on the investors' goals and objectives. Trading is also a strategy that aligns with someone's goals and objectives, but you and I know how risky trading can be. Infact it's not even considered investing but gambling, yes it's still a strategy and it aligns well with someone's goals and objectives.
My point is that strategy matters a lot, because you could be using a strategy without really knowing the true potential of that strategy, simply because you feel it aligns with your investment goals without actually acknowledging the underlying risks involved.
Some strategies increases your risks of losses while some could relatively help you minimize those risks, sometimes without you even knowing about it. I'm not saying other strategies are not important, for the purpose of this study, they are important but there are strategies that are better regardless your goals, as long as Bitcoin accumulation is concerned.

Every strategy for buying Bitcoin is unique and solely depends on the investor in terms of his financial situation, risk tolerance level, investment goals and objectives (investment time horizon inclusive) the choice of strategies is not that really important to me but rather what is most important is how much of worth of Bitcoin do you have in your bag and how long can you be able to hold, I don't think if the Idea of lump summing has anything to do with being aggressive in your accumulation rather it has to do with buying right away with the available amount that is kept aside for buying Bitcoin, a man who has become knowledgeable about Bitcoin with so much believe can become limited in to investing in Bitcoin because of lack of finance, while receiving a huge amount of money can decide to to lump sum his first buying right away with the amount he made readily available to accumulate Bitcoin while other of his personal needs are already taken care of including emergency funds, while he may continues with dca strategy,  there is nothing wrong being aggressive in your accumulation especially for a no or low coiner but it only becomes problematic when you are being overly being aggressive where it will affect your other needs. However, the combination of the both strategies can as well yield a better results. And, every investor must tailor down his choice of strategies that will suits him or her which will enable him in making an Informed decisions.

I have seen you do something like this before and I thought it was a mistake or some network error from your browser but you making a repetition here makes it obvious that it is a deliberate act and I don't know the reason why you choose to reserve this space but I urge you to desist from this act.

Exactly one of the reason I strongly preach against lump-summing as a formidable technique when accumulating bitcoin. Lump-summing could lead to aggressive accumulation that may affect other areas of your finance. People should always know that, inasmuch as your investment is necessarily important because it takes care of your long-term goals, there are also short-term goals one needs to meet, it could be from getting groceries to paying some bills at home.

When one adopts an aggressive pattern of investment, or should I say an over aggressive pattern of Bitcoin accumulation, through lump-summing, DCAing or any other accumulation strategy, one can easily forget the need for these short-term goals which are also important and immediately necessary for you to take care of them. Somee invest all their money without seeing the need to focus on these short-term needs, without even considering them as they prioritise their investment over every other thing.

Asides investment, Daily needs will arise, weekly needs will arise and there'll always be monthly bills to pay and most certainly, Emergencies will arise sometime in the future and all these needs to be well prepared for, and being too aggressive will never give you time to consider these facts and when eventually these needs comes up, they run to their investment, maybe take out the profits, (which isn't always the best thing to do in an investment See JJG's Power of Compounding Theory and it might perhaps give more insight to why it's a bad idea to always take out profits) or they ahead to sell a portion of their investment to sort out these things and sometimes at an unfavorable and unreasonable prices, due to lack of adequate preparation for these events.

Have you also thought about the possibility that the reason he is feeling reluctant to invest that second part is because he could maybe feel he's being too aggressive in his accumulation and decided to maybe slow down a bit by also considering other necessities.
Or would you rather prefer he invested everything and when the need for that something else comes up and then he's forced to sell few days after buying?
If an investor is using the DCA accumulation strategy, and he chooses to DCA on a monthly basis, and this person lives off of $500 monthly, It sure wouldn't be a great idea to put the whole thing in your investment portfolio and neglecting other needs.

Rather than putting everything, I believe a more suitable approach could be to divide the monthly earning into 3 halves, one goes to your investment, the other goes to your Emergency funds and the last half you can save for the bills and needs that may arise, at least this way, even though some may think that you're not accumulating enough BTC on a monthly basis, but at least your sure that your investment is safe and you've made provision to cover other expenses, so something going all in isn't really the best approach.

You make a very valid point by also emphasizing a little on the benefits of not being too aggressive in one's Bitcoin accumulation, there's absolutely no needed to rush or substitute funds in your Emergency funds or reserve just to accumulate because your Emergency Funds and reserves are just as important as your investments, and like the name implies, any funds accumulated in the Emergency funds is meant for nothing more but an emergency, not for accumulating bitcoin because that's not infact an emergency as it can wait for a couple of days or weeks and you can buy anytime you have the money to buy.

Let's assume one's salary is delayed for a couple of days and you're on a monthly DCA, it's possible to wait that few days or even weeks until your salary is paid and you can go ahead to buy, rather than substituting money meant for emergency to BUY BTC.

You've said it all.
A good investor must acknowledge his financial situation as well as sense possible occurrences that are liable to come up in the future and prepare for them. Knowing fully well that your salaries are often delayed or mostly delayed and not prepare for it by having a reserve or floating fund somewhere is just simply careless if you ask me, there are people who work in places where salaries are never delayed, and if peradventure he experiences a delay in salary payment for the first time and didn't prepare for it, then it's understandable at some point because he's never experienced a salary delay before, but a person who's experienced a delay in salary oftentimes, it's only reasonable and logical to always prepare for it.

And yeah, the importance of an Emergency Fund could never be be overemphasized because it's just as important as your Holding itself, because without the availability of the emergency fund, the safety of your investment isn't guaranteed as you'll tend to always look towards that direction whenever you have an emergency (which will surely occur in the long run). So investors should prioritize building their Emergency funds and reserves as much as they prioritize building up their portfolio, because the emergency fund offers your investment more security and safety.


It's always very important for investors to have a long-term perspective when considering Bitcoin investment because that's when one can really reap the actual benefits of Bitcoin.
With how impatient most investors who join the market today are, it's very easy for them to get caught up in the short-term market fluctuations and FOMO, but oneuat commit to a longer investment horizon when investing in Bitcoin because thatt way, you can be able to ride out the market volatility while focusing on the long-term trajectory and potential of Bitcoin.

The experience you've shared about yourself of initially hoping to HODLing for just a year or too but decided to consider a longer term of 4 years or longer investment horizon is a road map to how investors should perceive and embrace Bitcoin investment.

Thank you for clarifying him i hope this time he doesn't get confused anymore about the whole things, because its a serious issue that over the period of time that dude has follow this thread he is still contradicting emergency fund to reserve funds. Let me add to what you have said so far.

In as much as emergency fund is crucial to an investor so that he wont tap into investment when unforeseen matter arises, one should always understand that having an emergency fund gives peace of mind, encourage investment flexibility and foster consistency in accumulation. Many would not understand the importance of emergency fund which is why they dont have one. But ill put it in brief now, emergency fund focuses on short-term needs and easy access to cash while the investor focuses on long term goals.