Topic: Buy the DIP, and HODL! - page 64. (Read 138983 times)

Yea, you have actually spot on, and I also share the same sentiment as you bro, because most people don't actually know that when investing in Bitcoin through the DCA accumulating strategy, the most important thing is consistency, and it should be done with a money you aren't needing anytime soon, so that you don't have to fall back to your holdings.

Then another thing we shouldn't take lightly while investing in Bitcoin is our emergency fund, because it's the emergency funds that you have kept aside incase of any emergencies that is going to keep you afloat during the rainy days.
Then as for this, I think that this is the ideal senerio you have to orchestrate if you truly want to be successful in your Bitcoin holdings, because in as much as we are accumulating Bitcoin, we shouldn't forget about our security, which I think is the most important thing to consider before even thinking of investing in Bitcoin in the first place.

Don't came on battle unprepared since if they just go by thinking getting quick profits for volatile asset they invest then provably that they are in verge of losing their money especially if they have lack of knowledge and experience to deal with other consequences happen. That's why invest only what they can afford to lose since this could make us away from bigger stress when deciding to stick around on what we believe more beneficial to us. For sure no question will be raised if people would suggest to used DCA for long term what matter now is how those people execute those strategy since their understanding is really important so that they can execute this strategy so well. For sure volatility will be their less concern if they do this one since they will be in focus on accumulate and now on the fuds,price,volatility and other nuisance things. They should know DCA well, so that there's no confusion will happen and they will be away on any trading thoughts that affect their decisions that can put them on risky situations.

Investing in bitcoin the right way by buying it regularly with a DCA strategy. Adjusting cash flow properly, emergency funds, reserve funds and funds for execution. I think no one is afraid to invest in bitcoin but because they don't plan well they are not consistent in investing.

I also agree with you, we can set aside monthly income to invest in bitcoin, invest with money that we don't use for our daily needs. The important thing is that we must understand that investing in bitcoin is not for the short term but for the long term, so there are many periods that we will go through each year to buy Bitcoin.
Buying Bitcoin can be done through a trusted Exchange and withdrawing it to a personal wallet to be held in the long term.

You make a great point. An investor should probably know how to retain and increase purchasing power if not volatility will be a thing that they know of but will be scared of. And even in DCA investors might get low on funds in purchasing Bitcoin with the actual amount they've been using. Most times it is a result of lacking a steady stream of income which may be that they lost their job without having a business or any other investment to tap from. To be more realistic, investors and aspiring investors should have a decent approach while investing. They need to be smart and watch the source they get the money they use for their investment. Whenever we feel uncomfortable with our investment, we can have a shift in the amount we use in investing so we don't crumble our business or do anything that will affect the source of our income. While accumulation is important if we see a means to make more money than we can venture into it after making observations and having our conclusion on it. This doesn't mean we get to stop our accumulation entirely. Rather we can reduce the percentage we use in investing so we can get things right and working smoothly for us. Although it might take some period for the business or investment to start yielding something for us. In the end it's still a better approach.

As an investor, if your bitcoin investment plan is for the long term, then why do you have to be scared of the market volatility? I don’t even think it’s even necessary to be checking chat. As long as you are investing for the long term, then the best thing is for you to make use of the DCA strategy, and if you have accumulated enough bitcoin, then just forget about it, you don’t even have to be checking the market frequently, because if there is a slight increase in bitcoin price, as a beginner you might be tempted to sell, and maybe you will want to buy back if the price drops again.
 
If you are a trader, then you should focus more on charts, but as a long-term investor, I don’t really think you need more of that, because your plan is to hold for the long term, and you won’t be selling soon, so any market movement shouldn’t even disturb you.

Only those who invest what they can't afford  would be scared of volatility and the reason for DCA a method is for investors to just only buy the amount of Bitcoin that they afford, this helps in accumulating bitcoin without any stress and with this method of investing their is no need to be scared of the volatility of the market because you are not expecting profit in a short time. DCA method of investing is a longterm investment which you don't have any business of volatility for profit so soon, you only just take advantage of the dip whenever you come across it because it is also a good opportunity for investors to but during the dip. DCA method of investment is all about buying bitcoin at the rate which you can afford and no need for fear of volatility because it is not an investment one is depending to make profit very quick .

In your earlier post, you had stated that you had already started buying bitcoin, so just continue to buy bitcoin and to learn about it as you go, yet the main thing to learn is your own cashflow management, and to make sure that you are investing from your discretionary income, which is the money that you have available that you can spend that you do not need for your expenses or even that you are going to want for other later reasons.. so it would be money that you are just continuing to put on the side for 4-10 years or longer, and if you are young, then the investment timeline would likely be 15-20 years or more. 

Of course, you are free to do whatever you like and you can choose to trade bitcoin rather than invest it, so if the BTC price goes up by 50% or to double or triple, then you cash out some of your investment into bitcoin, yet that would not really be investing, and you would likely be selling one of the best, if not the best of assets, so it would be a problem that you had spent time accumulating so much of such a good asset like bitcoin and end up spending all of it or trying to sell it higher and to buy back cheaper, which may or may not work out for you as compared to a practice of just keeping on buying bitcoin until you are later able to start to draw upon it, which again seems something that you may well want to let your bitcoin investment ride for quite a few years rather than withdrawing it before the bitcoin had chances to compound its value upon itself several times.

There are no guarantees with any investment, so there is a need to figure out how much you are going to invest, yet since bitcoin is an asymmetrical bet to the upside it is also quite possible that you are able to invest over the years and to end up compounding your value since the most you can lose is 100% of your investment, but there are also quite a few decently upside potentials in bitcoin to continue to grow as it has in the past, even if the slope of the upside curve might not be as steep as it had been historically.

So whether you keep adding to your bitcoin stash is your choice ($100 per week, $10 per week or some other amount that you consider reasonable/feasible/prudent), and your figuring out your personal factors is probably a good idea, but it is also your choice regarding how much you attempt to plan ahead in regards to your cashflow including your income versus your expenses versus how much you are putting into bitcoin.  It can take a while to figure out your personal factors and then to balance them out and they are a moving target too, since it is quite likely that your income and expenses are changing with the passage of time, and maybe you also have expenses of working on building skills and increasing your employment and income opportunities (such as going to school/university), and so anyone thinking that they are going to substitute their short-to-medium term income with bitcoin appreciation income is likely thinking wrongly about bitcoin since in many cases it takes years and years and years before you are likely to get your BTC stash to a high enough level where you can start to live off of it or to supplement your other income with it. 

Historically, aggressive bitcoin investors might have had been able to build their BTC stack within a cycle or two, yet these days it may well take longer than a cycle or two to get your BTC stack to a high enough level that it could sustainably support your expenses or to sufficiently supplement your expenses where it would start to make sense to transition from your BTC accumulation stages and into your BTC withdrawal stages.  It makes no sense to sell any BTC until you have reached your BTC withdrawal stages, and only you can figure out those stages, and if you fuck it up no one is going to bail you out.  You are responsible for your own fuck ups, including if you treat bitcoin as a trade rather than an investment.  Those are your choices, completely.

In traditional financial planning, you would usually need to get to about 25 years of your income/expenses to be able to sustain yourself from your investment at a 4% withdrawal rate.  I personally believe that bitcoin allows you to sustainably withdraw at a 10% withdrawal rate which would mean that you ONLY need 10 years of your income/expenses, yet I am also using the 200-weekly moving average as the way to measure the value of your BTC stash and various other withdrawal constraints, especially if you might be in your earlier years of just meeting the minimum thresholds in which your valuation of your BTC holdings appears to be enough...since there can always be dangers in attempting to withdraw too much too quickly and there after depleting your BTC stash at a rate faster than it is growing, which would no longer be sustainable and would defeat the purposes of anyone who prematurely thought that he reached fuck you status but he either misvaluated his BTC stash or he was too aggressive in his attempted employment of what he thought would be sustainable withdrawal practices. I discuss price based and time based sustainable withdrawal strategies in one of my threads, yet my presumption for anyone attempting to employ those strategies is to reach a status of over accumulation of BTC prior to employment of either of the strategies.  I consider them as not being trading strategies, even though so many folks love to trade/gamble, and so sometimes it is difficult to save folks from themselves, since in the end people can do what they like and they are responsible for the consequences of their own actions, good and bad.

What you are doing now is very right, friend, because you dare to ask and also discuss first before deciding to invest in bitcoin. Because there are quite a few people who don't understand Bitcoin, but immediately invest in it under the pretext of wanting to quickly double their money by investing in the short term of 1 to 2 years (or what could also be called trading). But you don't seem like that kind of person because you studied or asked first before starting to invest in bitcoin. So now according to my assumption, you already understand what the difference is between investing and trading. Therefore, now you just have to look for money that can actually be invested in Bitcoin (cold money). Then if you already have it, I guess you can just buy bitcoin on an exchange and keep it in your wallet safely.

And I remind you, if you have bought bitcoin and stored it in your wallet. Don't forget to write your wallet phrase and keep it in a safe place. Then the paper containing the wallet phrase code must be laminated directly. So the paper is not eaten by termites and remains safe even if stored for years.

If you're looking for a very good digital asset to invest on then coming to this thread puts you on the right track cause you'll gain more knowledge about the best digital asset to invest on (Bitcoin) and how to go about it, since you have little investment knowledge I think it's best to take your time and gain more Knowledge and understanding about Bitcoin investment, know the right strategy that would suit your financial status and then implement on it when you're very knowledgeable enough, atleast you've got to know some few basics being that Bitcoin is a long-term investment not something you invest to take quit profits, it's good to take corrections when you're wrong and I love the fact that you acknowledged your wrong instead of arguing about it like some people do. Well, you're not too late to incest in Bitcoin all you just need is to figure out the most suitable amount you can use to DCA at a suitable interval that you can constantly keep up to for long-term, Bitcoin is the best digital asset you can invest on and I assure that you won't regret it so far you follow the right steps, Goodluck on your investment journey mate.

You need prepare well financially before you can think of buying Bitcoin because what are you doing is investment and it is for a very long time your Bitcoin investment shouldn't be a borrow money because you are investing for long term you need to have a good cash flow as you will make plans for your emergency fund reserve, and your discretionary income so that won't sell out your Bitcoin hodling when you encounter some challenges of life or things that you don't expect to happen, and also with the DCA strategy of accumulating Bitcoin you can accumulate Bitcoin gradually either weekly or monthly regardless of the price of Bitcoin and continue hodling.

You are absolutely right that my investment will depend on me whether I invest or not or where I invest. But since I have little investment experience or knowledge of Bitcoin and digital currencies, that is why I am asking so much about investment. I really believe that I can explore the right knowledge and principles on this board and there are many wise people on this board including you from whom I can find the right advice because as I have already said that my experience or knowledge is very little.
And I believe in your words with all my heart that my own enthusiasm will be more effective and reliable than the enthusiasm of others to do anything in this world. But for that I have to gain knowledge myself first, and only then can I make the right decision myself. That is why I have approached you so that I can follow your experience and move forward.
I thought that I would get a good profit from Bitcoin investment after one or two years. But in the light of your kind opinions and experience, I now see that I was completely wrong. I have to plan my investment for a longer period.
Now I can reorganize my plan and get out of a serious situation. This is my biggest achievement.

When you are talking about taking profits, you sound like a trader, even if you are referring to long term investing into bitcoin, yet I suppose that it could be the case that once an investor has figured out that he has enough bitcoin, he can thereafter decide to take withdrawals from his bitcoin stash based on price movements or merely based on the passage of time, such as once a month, or once a quarter or twice a year or some other increments that he withdraws some value from his bitcoin stash.

When you suggest taking profits, it comes off as if you are feeling that you are taking a lot of value out of bitcoin because you believe that there is some other better place to put such value, which likely is not true, unless maybe you only have a short time to live and you are merely just drawing down both your principles and your profits in a more expedited way.

Largely long term investors may well not even need to consider taking out value in terms of taking out profits, since the longer that they are in bitcoin then it may well be close to all of their bitcoin holdings is profits because the whole value of the BTC holdings has likely compounded upon itself several times... so the main concern would just be cashing out from time to time and perhaps striving to cash out in such a way that you are not cashing out faster than your BTC is gaining in value... so perhaps attempting some kind of a sustainable withdrawal, unless you are purposefully wanting to draw down the principle too because of some health or age consideration, so then otherwise why would there be any inclination to draw upon bitcoin absent spending from other assets, currencies and income first.

Another thing that could happen is that certain sources of income dries up since maybe a person might decide to recover, so then a portion of their bitcoin holdings would then be used to pay for their lost income whether that is a couple times a month or once a quarter or however frequently that the bitcoiner chooses to time his cashing out (withdrawal) periods.

Taking profits seems like a weird framing for what an investor may well be doing with his bitcoin in terms of managing how he might continue to balance his bitcoin against other assets, even once he might have had reached a stage in which he is no longer buying more BTC.


I doubt that DCA is ether the most profitable strategy or it is guaranteed to be profitable, yet the DCA strategy does allow each of us to customize our BTC buys in accordance with our own budget and our level of aggressiveness to buy on a regular basis, and since many folks are not able to lump sum invest, they can buy bitcoin as money comes available to them, which DCA helps to facilitate that kind of customizing of how much to buy and when to buy.

There are so many people who either purposefully or inadvertently never end up saving and/or investing because they might not be able to identify a great place to put their value (which bitcoin resolves that issue) or they might try to strategize to save up to invest into something, but their methods of savings are not good, including that their money is losing value on a regular basis too, so they might have difficulties making progress in saving and even building up in such a way that they make measurable progress over 4-10 years or longer. {Practicing good and strong DCA strategies into bitcoin may well end up inspiring someone to also become more diligent in regards to how they manage their cashflows and any extra value that they have come available might end up getting put into bitcoin right away or perhaps strategically saved in order to bolster their back up cash or their potentials of buying bitcoin on a dip or some other opportunities, whereby prior to getting involved in bitcoin, they might not be as incentivized to create strong cashflow management practices.


Personally, I prefer to attempt to go with the more likely scenarios and then build from there, rather than speculating about a whole hell of a lot of fringe scenarios that may or may not end up throwing off the more likely scenarios.

So the more likely scenarios is that technology improvements improve the quality of life of all people around the globe, even if some folks benefit more than others, and so the presumption would be that wealth continues to grow, unless there are successful attempts to sabotage technologies from coming about and spreading and surely wide-spread wars could end up destroying systems and advancements in technology and the removal of the ongoing growth of global wealth... whether I am even alive 40 years from now, I think about 40 years would be right around the longest that I personally would need to prepare for... on a personal level and/or the extent that I might pass anything down to anyone else... choices can be difficult even if there might be heir apparents.

Surely there are younger folks who may need to try to prepare for longer timelines, perhaps up to around 80 years from now for the youngest of forum members, yet at the same time, each of us are likely preparing from where we are at and then focusing more intently on the upcoming 1-5 years and maybe a bit attempting to prepare for 5-20 years, and our plans become a lot more contingent and general the longer that we attempt to plan out... even though surely with some folks they might have family legacies that they are striving to carry out so there are some people who are trying to be more long-term oriented as compared with some other folks who might not have as many abilities to plan out longer time frames, including some folks who might have difficulties with their income yet they still might have family relations that still allows them to attempt to plan out longer term, even if they don't have stable finances... so finances would not be the ONLY way of planning or being rich, since there could be property rich, socially rich or even family network rich, even though some folks might not be very happy with the family they are stuck with (or currently stuck with to the extent that they perceive themselves to be potentially socially mobile).

Having good or bad health can also give someone senses regarding how long that they might be able to plan out.


When I suggest 50 to 200 years for something to play out, I am providing a lot of latitude in my own thinking of gradually and then suddenly because sometimes changes happen slowly, and then all at once, and if we try to prepare for the direction that we think the puck is going rather than where the puck is, then we are likely going to be in a better position, even though we likely can mostly do ballpark type preparations for a variety of scenarios rather than getting too bogged down in specifics, so there is a bit of a BIG SO FUCKING WHAT? in regards to where bitcoin might be 50 to 200 years from now, since we have to be both enjoying our here and now and also preparing on shorter timelines, such as we do want to make sure that we are able to feed ourselves and any family (dependents) that we might have,  and many times we are going to have a lot of intermediate goals in regards to where we want to be at time 1 month from now, 6 months from now, 1 year from now , 4 years from now, 10 years from now, etc etc etc., and so the further we go out the less that we might get into details, including that I better have enough money to pay my rent, utilities, food, transportation for this month and those are pretty specific numbers, and they become a bit more general the further than we go out in time, even though surely if I have built either life skills (working skills) and social capital, and various back up systems, I might not have to worry as much about some of the shorter term matters working themselves out, yet if I go through some relationship problems, or employment problems or even if I get hit by a bus, then I might have to consider if my various backup plans are sufficient enough to help to protect me (or to keep me in the game). 

Personally, I don't see much if any role for gold in my own personal preparations, and sure there might be some people who are in places in which people are used to having gold and dealing with gold, so maybe they are going to be o..k to have some gold in their lives, but I personally consider gold to be completely unnecessary, absent maybe some Armageddon situation..and even then, in the place where I am at, I have difficulties understanding what good the gold might do me.  I could buy a few ounces or kilos to store some where, just in case, but I am just considering it to be something that might not be very helpful...maybe in considering a situation in which bitcoin is also no longer valuable... internet is down every where?  That would be a pretty bad situation, and I might not be young enough to last through something like that if it comes to fighting over resources, I don't have enough guns and bullets either, which might be helpful in terms of self protection during such times... I think I am getting too far astray with trying to consider some value in terms of having gold as you suggest might be of some value in some scenarios that you have not quite specified what they might be.

Yes, getting the opportunity to buy Bitcoin at dips can indeed be expected by an investor and another opportunity to reduce the UP in the portfolio. Bad investments can happen when an investor keeps waiting for dips day after day and misses good opportunities. I applaud your DCA strategy which is an effective way for you to accumulate Bitcoin without having to check the latest price status. Bearish and bullish trends in the market which can change the strategy in buying Bitcoin but the main strategy for accumulating Bitcoin in the DCA method is to accumulate Bitcoin based on the ability to accumulate on a weekly or monthly basis.

In fact, if an investor can keep the discretionary income flowing down the road with a long-term Bitcoin accumulation strategy, then the possibility of increasing his holdings over time. Your attempt to buy at every price touch within the market fluctuations can further boost the possibility of getting a huge holding by reducing the potential investment risk.

The bitcoin topic is so incredibly interesting because it has already had its twists and turns that some of the self-proclaimed smartest minds have been wrong about bitcoin's evolution and its powerful resilience and octopus-like ability to spread within society. The pace varies at times, but it is continuing to grow and spread.

I think you are are giving a good ballpark with those 50-200 years because the point at which bitcoin maybe at some sort of equilibrium to the world's total wealth, global population size, relative size to other asset classes... I notice this is tough to think about. It is hard to grasp and imagine at what point bitcoin could function as a daily currency and whether it will ever. Gold could only do so regionally in the distant past because of its lack of mobility or essentially transaction speed. Bitcoin doesn't have that problem. If I want to make an international deal, using gold is barely possible. Maybe certificates or something, but not the real thing.

If global wealth will continue to grow, and I don't know whether it will because I can't judge how AI and automation will affect global wealth over future decades to come, bitcoin would probably continue to capture a large portion of that value added. If at the same time population continues to grow, more people are out there, meaning potentially more people understanding that they should own some bitcoin. But maybe economic growth comes to an end, but then in times of recession or stagnation, people might still consider bitcoin the safest place and invest in it. Or they will be forced to sell off some in order to meet other needs.

It's impossible to come up with a plausible idea as to what is going to happen and how it will play out in two decades from now. But this rough idea that all monetary value gravitates into bitcoin in 50 - 200 years does make some abstract sense as bitcoin meets a dozen criteria to be good money which gold (or any other asset) doesn't meet.

If it is still in the accumulation stage, it seems that routine purchases are better because we need to increase our consistency in accumulating bitcoins. Balance in making purchases can be applied once a week if it is done with the DCA strategy.
Waiting is the second pattern by utilizing reserve funds from the cash flow adjustments that we make in executing Bitcoin.

However, do not equate our strategy pattern with other people's patterns because it will be very contrary to our initial plan. For example, if we target investment for the next 10 years, of course what we have to do is buy regularly every year to achieve the target we want.

Investors must be sure of the method they have prepared, they must be able to overcome many temptations at times like this, for example, do not be tempted by short-term profits because the goal is long-term.

it can even increase while waiting and the investor would regret not buying while it's cheaper, that's why so many investor think the DCA is the best way of owning more Bitcoin cause an investor don't need to wait for the current price to drop below 90k, they can start with that method at any point and still be on the profit side if they invest for a longer period.
 I feel people who wait for the price to drop before buying Bitcoin are those hoping to take profits when it increases again for example, someone hoping for Bitcoin to drop from it's current price to 70k so they'll take profits when it increases again and probably get above 100k but they'll eventually fail cause Bitcoin is currently bullish and would keep going higher so it would be wise to implement the DCA method instead of waiting.

Waiting to buy the dip Is not really bad as you thought, but it becomes a problem when it is the only option to buy bitcoin. For example we buy bitcoin through DCA, lump sum and buying the dip. So it is necessary to always buy through DCA then also waiting for the dip to buy more, provided there is discretion income. But It is not advisable to be only focusing on buying the dip, As that will be problematic for an investor Because surely bitcoin may never dip to a desirable price to buy.

Buying the dip ain't wrong but the idea of waiting for the dip only before accumulating is the issue, like from time now we all know that In this space we can't actually tell what gonna happen in the future, so we can't tell when the dip going to happen and stuff, so to avoid missing out, you can just start by purchasing smaller quantities with DCAing and when there's any slight dip you can switch up the game by accumulating more aggressively.

There are several indicators that you can use if you want to get an idea of ​​when prices have the potential to fall or rise. This is not only about technical analysis, but you can use existing fundamentals to determine whether prices will go down or up. These two analyzes are useful for you to determine when is the best time to buy regardless of DCA, but all indicators are tools and not determinants.

But it's true, buying at any price is possible and you don't need to be afraid to do it. It's just that you have to be ready with a backup strategy and also a backup budget, this is also useful for continuing your big plans in building an investment portfolio in the long term.

It's funny because you can never even know the dip. A person waiting for the dip like you said is not ready because there's every chance he will buy it at a certain price but it keeps going down and he will start regretting why he didn't wait. You can buy at 50k thinking that's a good price only for it to drop to 30k.
That's why it's best to invest in DCA. One thing about this strategy is that you'll be surprised at what you accumulated at the year's end.
Another reason why waiting for the dip is not wise is that there's a chance you may not have money to buy when the price dips and you'll regret it.