Topic: Buy the DIP, and HODL! - page 71. (Read 129586 times)

Some folks think that they can outsmart the market by playing in and out game with shitcoins and hoping for big win which is like running through a minefield while blindfolded, they might make it out with all the limbs intact but it's worth the risk? 

The gambler's mentality and shitcoin trades have things in common like "Just one more trade, I’ll make it big this time!"—until you’re left holding bags of vaporware, wondering where all your Bitcoin went. But if they can't control their urge to gamble away their bitcoin then it's on their own but bragging it on others and convincing them to do it by saying this is an actual trading strategy to make money should be discouraged completely.

Stick ourselves to bitcoin and we will thank ourselves in the next few years for doing it.

I partially will disagree on this not all are dependent, some are independent as well. The  term likely to be used is "Bitcoin correlation". Bitcoin is said to be highly correlated to as many cryptocurrencies, mostly the top ones but we can not generalize it to all. There are some cryptocurrencies whose price movement is not affected at all by the fluctuation of Bitcoin prices. Price movements on this cryptocurrencies are dependent on so many other factors including the potentials of the coin and what it was created to serve, since they are not decentralized as Bitcoin, partnership can also play massive role when dealing with the price fluctuations.

From the details on your post, it's an advise for investors to choose other cryptocurrencies over Bitcoin because of how much profits can be made coincidentally, this should not be misleading as this thread may not be able to conduce such a suggestion. When we talk about this form of investment, Bitcoin supersedes not just on how long but also potentials, trust for adoption and longevity which is a big threat for many new cryptocurrencies as they quickly fade out the market, giving their investor loses.

There are many differences between Bitcoin and other coins in the market. All other coins in the market are directly dependent on Bitcoin. That is, if you observe the market of other coins in the market, on the contrary, if you observe the market of Bitcoin, then you will definitely see the difference. When the value of Bitcoin fluctuates slightly, the value of all other coins in the market fluctuates. Again it happens that there are some coins that will dump in line with the Bitcoin market but when Bitcoin is pumping again those coins are not pumping. 

Investing in Bitcoin in a long-term plan is very safe here, but investing in all other coins will never be so safe. There are many coins in the market which can disappear from the market at any time but there is no possibility of such happening in the case of Bitcoin. Bitcoin has been in the market for a long time and with the passage of time, the popularity of Bitcoin has increased a lot and the price of Bitcoin is currently at a very good level. 
An investor is always told that before investing that investor should first select the right coil for his investment. 

For example, I always put Bitcoin at the top of the investment list after all other coins in the market, but that investment is short-term and with relatively small amounts of money.

The reserve funds is like a long-term savings set asides against future debts and it helps one from going into taking loans in future whereas as the emergency funds is set aside for unexpected events like, medical bills, car repair bills, utility bills etc they different things altogether cause the reserve funds is set asides for some particular purposes, like future investment, financial opportunities etc but the emergency funds is basically for unplanned events the similarity they both share is that they can help one from going into debt. The reserve funds can be used to do the lump sum in a case where the market gives an investor the opportunity to buy Bitcoin at a more cheaper rate but that doesn't mean you should use your whole cash reserve funds for the lump sum. Whereas an emergency funds shouldn't be used for any method be it the DCA or lump sum it's strictly for unplanned events which are those emergency cases as stated earlier. So far an investor got a stable income they should be able to set aside the reserve funds from funds meant for emergency purposes.

Is a good question you asked because since February we have been on the dip and if I'm not mistaken that was the time he joined, so there is no logical explanation that shows that he has been use to buying at the dip unless he has started investing in Bitcoin earlier before that time which can possibly explain why because there are people who already learn about Bitcoin investment but were looking for a place to learn the right way of investing in Bitcoin or perhaps it could be that he perceives every Bitcoin price consolidation as a price increase and dip.


Though there is nothing wrong if an investor talk about buying at dip even if they are already investing on Bitcoin through DCA strategy because you may not know whether the investor has other discretionary income he is not using at the moment so if at the process of investing on Bitcoin with the DCA and dip occurs is not bad if he accumulated from it because that's what we all want to always increase our portfolio and even JayJuanGee has also talk about it that there is nothing bad if someone buy more during the dip as they are DCAing so long as the discretionary income is enough.


Are you sure you really understand what you are saying? How can you perceive Bitcoin to be crypto exchange, you totally sounded preposterous because you are not really making any sense, how can the growth of altcoins be faster than Bitcoin when is already obvious that there is no other reliable and potential investment like Bitcoin or are you perhaps implying that there are altcoins more better than Bitcoin?, I can see that you are still a beginner who knows nothing about Bitcoin so I would implore you to have a rethink about any gain as you mention to derive from altcoins because is like a set up in disguise that gives you small and take a bigger amount from you, however should in case of next time I would advise you to channel this kind of discussion to the thread that supports it because is contrary to the Bitcoin investment we are talking about here.

You seem to be confusing yourself buddy, if I may ask, what's the reason for reserve fund when embarking on Bitcoin investment? I think you are misprioritizing the major reason for reserve funds, I think you should understand that reserve funds are kept to Carter for unexpected needs, like health or any other stuffs, this reserve funds can alos be called emergency funds but buying the when the price is dip when you are already DCAing is what I dont I agree to.
How would an investor mention buying when the price of Bitcoin is dip when such investor is already making use of DCA method to accumulate Bitcoin, I think it would have been better if youl use half of your reserve funds to intensify your DCA aggressively that would have been understand than mentioning buying the dip, how do you even identify the dip and who knows if a dip will continue, buddy you dont frequent the dip since you are already DCAing, just continue buying at all time continuously but if you eventually have lump sum amount you can buy immediately not minding the price or the season because as i know, there is no specific time to buy in lump sum it all depends on when you have the lump sum amount and its not advisable to wait further because of other unforseen circumstances might make you to spend the money.

Why are you always mentioning the dip, don't you think is very confusing to me to people who already know what DCA method is, I think they major discussions here is the way we can acumulate Bitcoin without stress at all time with the helo of DCA method, so what concerns the dip, I think you should understand this thing for your own good, don't wait for something you can't control, just keep DCAing weekly or monthly depending on choice and your pocket ability but as for saving and waiting for the dip to DCA as you said which is confusing to many, wait no more keep doing as your financial ability permits to have a bulky portfolio and hodl for a long-term.

In addition to what you said above, emergency funds is very necessary when you are investing in bitcoin for long term because that is the back up to your bitcoin investment incase real emergency arises so that you don't go and sell your bitcoin to take care of such emergency. You are not to tamper with your emergency funds until there is a real emergency.

Reserve fund is a back up to your emergency funds which is use to take advantage of bitcoin price dip to increase your bitcoin stash i.e when the price of bitcoin dips, you use your reserve funds to buy more bitcoin because you buy at a cheaper rate while your DCA is ongoing. It is also good that this funds are in fiat for easy access. 

Nice question. Emergency fund are those fund that are keeping from your income for 3-6 months which you will save it for the purpose of emergencies like health bills, car repair, or when you lose your job. While reserve funds are those fund that can be use or saved for other things like small expenses or even small investment. That is why you don’t know their differences, because if you do you will know that it is a great financial mistake to join this two funds together.

They is one thing that always affects those that wait for the dip to purchase bitcoin. In the sense that you can only predict but you will never know when the dip will come, it might be the time of the dip you will find it very hard to have as enough money that you needed to accumulate bitcoin. But if you are using DCA strategic it will be very easy and low stress for you.

Mind you. Is not that am disputing the fact that buy in dip is not good. But am just trying to let him know that if really he want to accumulate enough bitcoin, then buy in dip will not help him. That is the fact. Because you as a beginner in purchasing or investing in bitcoin, you will not compare your self to the old investors that have more experience than you, or think you can do the same thing that they will do. So let be guide and focus on the things that we don’t know, and get more knowledge on them.

You sound like Altcoins and Bitcoin are in the same category which is never true, Bitcoin is not in any way associated with all this shitcoins, how can you categories Bitcoin and shitcoins that a lot of them were just created to enrich the creators, a lot of shitcoins creators sell off the coin they are holding to make huge account of profit and after that act the coin drops and those that were holding loses there money the reason why those creators do such is because they only created that particular coin to make money and they have seen the coin has no future, I understand that some people love's to make quick money and because of that they gamble with shitcoins but this thread is for Bitcoin discussion and it will be better will focus on why it was created.

Why are you confusing yourself dude, if I may ask you what is the difference between emergency fund and reserve fund? Off cause they are same thing which is being used to solve unforseen circumstances that may or will arise. The fact that DCA method is the best and reliable way to invest in Bitcoin doesn't mean every other strategy is not good or doesn't exist and stop sounding like buying the Dip is not among the strategy. I disagree with this " waiting for the Dip you will end up buying a small quantity of Bitcoin", the fact that buy Dip is not the best or not advisable, doesn't mean one can not buy nice quantity of Bitcoin when there's Dip, anyone who's is prepared for the Dip and fortunately there happens to be a dip, that investor will buy a nice quantity of Bitcoin but if you are not prepared you will find it difficult to buy a nice quantity of Bitcoin so I think the key thing here is preparation. Note : I don't wait for a Dip but I take advantage whenever there's Dip if I have enough funds.

This thread is not about shitcoins or even trying to suggest that there is any value in getting involved in shitcoins. 

I understand that people love to gamble and/or they even get mixed up into believing that shitcoins are similar to bitcoin, so they start to believe that similar kinds of investment strategies can be applied to shitcoins as can be applied to bitcoin, yet that is not true.  You seem to be getting lured by the possibilities of profits and pumping and dumping of shitcoins, yet that still does not mean that it is a good idea to invest into shitcoins or even to use investment kinds of strategies with shitcoins, since one of the main things is getting in and out because an overwhelming majority of them do not have any kind of long term value to even be able to have some assurance that they will even be investable for a whole bitcoin cycle... so yes, you then begin to refer to something to trade rather than invest, and we are also not talking about trading in this thread.. so you are really out there in terms of bringing up both trading and bringing up shitcoins.

I do frequently mention to guys if you cannot resist but to trade bitcoin or shitcoins or to get involved in shitcoins, then at least with those kinds of gambling behaviors, it would be prudent of you to at least limit the size of your gambling/trade and/or shitcoin exposure to less than 10% the size of your bitcoin holdings.. yet I also understand that gamblers tend to not be able to help themselves and they are not going to consider 10% to be enough.. and that is their problem if they cannot limit or control their gambling, just like it seems to be your problem asarfiar that you are getting distracted into believing that you might be able to get in and out of some shitcoin(s) and then do better than just by being into bitcoin, and you want to try to convince others in this thread of the same, which is out of place and you should go to some other thread with your bullshit pumping of shitcoins and/or promoting trading(gambling).

Bitcoin is the forerunner of all cryptocurrency exchanges, which we can see that the whole world has seen the rise of cryptocurrency through Bitcoin. Simply put, Bitcoin reigns supreme when it comes to cryptocurrency discussions.
 Based on the market performance we can say that investing in Bitcoin is a safe option, but the growth of Altcoins is fast and phenomenal. Besides Bitcoin we can dip other Altcoins because there are many Altcoins which have increased by almost 1000% in 4 months. With such gains comes risk although Altcoin dips will be riskier than Bitcoin dips.

I don’t think you still understand how to accumulate bitcoin. That is why you are not getting the point, because how can  you mix  your reserve fund for both emergencies and buying bitcoin at dip? Did you even know the difference of emergency fund and reserve fund in financial management? I think you don’t know that is why you are saying all this. Because if you do you would have known that the best way to accumulate bitcoin is by using DCA strategies not waiting for dip to buy. Because if you are waiting for a dip you will end up buying a small quantity of bitcoin. Moreover if you are using DCA strategy you will be able to purchase bitcoin bit by bit in different price and even in dip it will not affect you that much, because you didn’t buy them all at the same time. But I don’t know what is wrong with you that you failed to understand.

There is an expression regarding the power of living within your means, yet also if you live within your means, then any extra that you have can be turned towards investment and at the same time, if you are investing, then you have a cushion in regards to earning more than you need to live.. which after many years of living within those boundaries, you can come to an assessment in regards to how much you need to maintain your living style and/or standard.  The more excess wealth that you have then the more you can sustainably increase your standard of living. I think one of the problems that non-investors have is that they want to increase their standard of living prior to their income supporting such increases, which we might have the same problem if we try to live off of investments rather than living off of working income, and so managing cashflow and also managing expectations seem to be a large part of becoming rich and/or staying rich...

since it seems that a lot of folks would like to mostly cut out their need to have to work in order to continue having an income coming in, and surely there can be some income that might come from prior work (such as pensions) or even from the state (such as social security), yet various forms of personal investments might be more controllable and able to make differences, so even if a person might not be able to completely live off of the investment income, such income can supplement the other kinds of income, and surely there are some folks who never are able to build any amount of pension or social security, so they are reliant upon ONLY whatever they are able to put together for cashflow from their investments, and it seems to me to be better to get such investments up to a size that they are sustainable rather than depleted in a short period of time.  I am not sure how people get to such organization states or even confidence about the sustainability of their investments without building their cashflow management skills.


Going by your forum registration date, we have been in dip (or at least consolidation) pretty much the whole time that you have been registered on the forum.  Did you start buying BTC around your forum registration date or some other date?  In other words, I am having some trouble understanding what you consider to be a dip.


Those are fairly personal choices.  I don't even recommend buying dips for folks who are in their whole first cycle or maybe even cycle and a half of bitcoin investing, so in that regard, I recommend DCA and I also recommend weekly, and if you want to try to catch dips within the week, then sure nothing wrong with that.

There is no reason to get greedy, especially for newbies. .just suck it up and buy ongoingly, persistently and consistently and don't be fucking around trying to guess BTC price movements.

If you are going to save some of your weekly allowance for buying dips, then you might want to spread out the amount in increments rather than trying to time any bottom.  Sure, you get more bang for the buck if you are able to lump sum all of it at the bottom, yet how the fuck are you going to know that there is going to be a dip and how you going to know how far the dip is going to go.  Sure sometimes when we are in a dip we get a sense that we are in the bottom of a dip, but we cannot really know in advance that such dip dynamics are going to end up playing out, and that is true no matter how much technical analysis skills you have and the various chart gurus are going to tell you blah blah blah blah.. and at best they are making guesses, so why even waste time trying to figure out the extent to which some of them might be right.. just keep buying bitcoin consistently, persistently and ongoingly and whenever you are holding money back to buy on dips you are deviating from a consistent, persistent and ongoing DCA buying strategy.

Let's say that you have been DCA buying bitcoin at $100 per week for 6 months, and so you have bought $2,600 worth of BTC in the last 6 months.  You want to hold some of  that back in the future?  Or are you suggesting that you want to increase your BTC buying budget, so you are going to continue to buy $100 per week of BTC, while at the same time holding another $50 per week in case the BTC price dips.. So what might happen is that you could continue to DCA the $100 per week while at the same time you are stacking the $50 per week that you plan to use to buy on dips, so maybe you plan on a 10% dip or a 5% dip or a 25% dip.. Well you have to figure out how much you have in your dip buying budget and how much of a dip you are going to want to deploy each of the amounts. 

I don't even like the idea for newbies, and surely I don't like the idea of holding all of it back for a lump sum, so if you are going to plan such a strategy, I think that you should try to figure out various price points that you are going to execute such BTC buys on the dip...maybe even setting your BTC buy orders in advance.. so if the BTC price dips and fills all of your buy orders you end up running out of dip buying money.. yet you can spread the buy orders even lower, but the more money that you hold back as a newbie, then the more you might end up suffering from the problem of the BTC price going up rather than down and your feeling that you did not buy enough BTC, yet if you are buying BTC all the time and every week, you will likely not feel as bad when the BTC price ends up going up rather than down.. and plus you put yourself into a better psychology of buying BTC all of the time rather than fucking around with various kinds of waiting strategies that may or may not end up working out.


You might be trying to be too smart for your own good... but hey whatever... do what you like.

Frequently, I recommend that if anyone wants to be as aggressive that he is able to be, then the guy should first make sure that he has emergency and reserve funds in place, and then creating a weekly DCA purchase, even if he is paid monthly. .. so if you already have your emergency fund in place, then you can afford to be somewhat aggressive with your weekly DCA.. so if you have an income of $2k per month and you have expenses  of $1,500 per month, then you can plan to buy $100 per week of BTC and you can even attempt to employ the DCA buys on a manual basis if you want to figure out if their might be a dip during the week... yet at the same time, you might figure out that it is not a very productive use of time to try to figure out if there may or may not be a dip during the week, and you may well come to conclude that it is better to just buy your $100 per week in BTC and work on other ways that you might increase your discretionary income buy increasing your income and/or cutting your expenses.

I suspect that you are going to try to be smarter and you are going to try to figure out how to buy dips, and sure whatever, that's your choice.

Exactly the point buddy, the major concentration and mindset of many bitcoiners here is the long-term goal achievement, we are not just talking about buying because one can keep buying and get discouraged on the way because of lack of planning and inability to realize that as an investor you don't need to invest all your earnings, there should be funds left for an investor carter for other needs that's why @JayJuanGee with other active participants here always talk about DCA mathod because it enabled you to invest with the little you can gradually, continuously and steadily without stress, this method gives you room not to invest in way that surpass your financial ability, am happy that you are now finding this thread interesting.
This DCA method was introduced to allow people to buy the amount they can not minding the price of Bitcoin at all tome

I think Bitcoin investment would have been for the rich alone or people that has lump sum amount but with this DCA method, every interested individuals have a stake in Bitcoin as far as they DCA with what they can sustain continuously, we should also know that DCA method is a smart method of investing in Bitcoin because it gives us the opportunity to keep acumulating Bitcoin in smart way that will surprise any intending or existing investor that keeps waiting for the dip to come before they can start buying which might not come, with this method the price of Bitcoin doesn't matter to you since our mindset is centered on a long-term which is the major reason for the investment.

Yes, definitely every hodler will have different result as you said not only because of the price but the amount they are DCAinv with, every individual has an amount they are DCAing with monthly or weekly which may also change as time goes by, so their holdings will never be the same irrespective of the price of Bitcoin.

Along with DCA I give more importance to reserve fund for dip buying. Because reserve fund is divided into 2 always one part is kept for emergency fund (which acts as protection to prolong my investment) and the remaining part is used for buying dips. I have only been in the deep once since I started investing. I would like to ask some questions, should I be aggressive in DCA with the money reserved for the dip during the dip?
 Or should I buy a lump sum with the whole amount?

A few days ago I entered the deep, where I chose to be aggressive in investing. At that time I took a completely independent opinion. Normally I invest in DCA monthly, as I am salaried monthly. But as I had money saved for the dip, I resorted to weekly DCA to buy the dip, which was only for 3 weeks. Later I again started saving money in reserve fund and preparing to buy dip. I haven't fully planned whether I will do DCA or buy lump sum during the next dip, but in the initial plan I am preparing to buy lump sum. I want advice from you guys, should I do frequent dip along with DCA? Or once a year or longer?

Everyone must know where they get money in their life and of course it can be considered as a personal cash flow for themselves so that everyone must be wise enough in managing it if they still want to invest more consistently in something like Bitcoin. For now, I still consider a fixed income to be very important so that I can still use and channel that income into several things and also into investing in Bitcoin. Because with the existence of a fixed income in life, of course everyone will continue to learn to manage it well if they still want to achieve greater success in the future so that policies for themselves must always be there and it is not only about cash flow.

It is confusing why you would not appreciate that any person buying bitcoin on a regular basis should be able to get to a point that he can manage his BTC buys, even if he is using DCA and even if he ONLY gets  paid once a month. Such guy still might find it preferable to spread his BTC buys throughout the whole month rather than being restricted to buying BTC only once a month since he is ONLY paid once a month.

Sure, it might take a bit of time where someone has enough of a cash float or even various reserves that he is able to spread his BTC buys through the month and to even employ his BTC buys weekly rather than monthly, and surely some folks might not be able to get to such a situation, which perhaps might even be blamed on their not having a lot of discretionary/disposable income to spread out through the month.  Sometimes there can still be ways to increase discretionary/disposable income by either increasing income or by cutting expenses.


It seems to me that there would be a preference to not spend any money (fiat) once it is converted into bitcoin for at least 4-10 years or longer.  Sure, spend and replace might be within the bounds of acceptable investment practices.


These are all good ideas.


It seems to me that you can set some of your dip amounts in advance, and yeah it is true that there may be instances in which the BTC price dips further than the amount of dip that you had in reserves, and so each person has to figure out how much money he wants to have in his reserves for buying on dips.  On a personal level, I tend to have my buying on dip funds to be set at least to the 200-WMA, and frequently even below the 200-WMA, and surely newbies might not have as much reserve funds to be able to even buy dips.. or they are mostly just focusing on DCA with ONLY limited amount of money they hold back for buying on dips.  I personally believe that it is best for the newest of BTC accumulators to mostly focus on DCA and not be fucking around with trying to buy dips, and so part of the rationale for trying to get into a system of buying every week (even if a guy has a monthly income) is so that there could be a bit of buying on the dip that is already somewhat naturally incorporated into the DCA, so there would be less concerns about missing out on dips as compared to the guy who is ONLY buying once a month...

Another thing is that it surely could take one or two whole cycles before a guy might even start to feel that he has stacked enough BTC through his regular DCA practices in order to start to monkey around with some other kinds of practices, such as including some buying on dip practices, and so from my own perspective, it really seems that there are not a lot of needs to be trying to figure out dips or not for some of the guys who might still be in their fairly earliest times of BTC accumulation.. which maybe even getting to a point in which 1-2 years worth of expenses are held in bitcoin, then maybe at that point a person can start to be more creative in his bitcoin accumulation journey, and I have frequently mentioned that it can take 4-10 years or so just to get to a point in which 1-2 years of expenses have been invested into BTC, and surely it could help if BTC appreciates along the way, too which could end up contributing to rethinking whether to stick with pure DCA or maybe to also incorporate some buying on dip strategies.


I cannot argue with any of these points.


It seems to me that the most important analysis relates to cashflow and discretionary income considerations, and so managing your cashflow so that you are able to invest into bitcoin.  It also seems to me that even a brand new person to bitcoin should be able to figure out whether he has an extra $100 or even $10 per week that he could invest into bitcoin for 4-10 years or longer, and so if he gets started investing $100 per week, he can study bitcoin as he goes, yet the most important of the beginner knowledge points is to just assure that cashflow management is in a good place, and if he is not sure about if he really is able to dedicate $100 per week or even $10 per week, then he should cut down a bit and get his amount invested into bitcoin into a solid place before really getting into any kind of in depth attempts at analysis of other matters...

Sure, there has to be at least some bare knowledge and/or confidence in bitcoin in terms of considering that there is going to be a reason to stock away $100 per week into bitcoin, and so if the confidence is lacking, then maybe such person with a known $100 per week budget might want to start out with $10 per week until s/he is able to gain enough confidence in regards to the amount that s/he is stacking away and to have an appreciation that s/he is not going to touch that amount for 4-10 years or longer.  So people have differing time constraints in regards to how much they are able to study BTC, so no one is really too likely going to want to be aggressive in their bitcoin accumulation unless they have some confidence about bitcoin, perhaps beyond mere number go up technology, so there may be some needs to study bitcoin in order to start to feel more comfortable in terms of taking a more aggressive investment approach, yet deeper knowledge of bitcoin that justifies aggressiveness is not required in order to get started, and to choose an investment amount that is comfortable whether than it $100 per week, $10 per week or some other amount, yet surely if a person is investing for several months and even getting into years of buying bitcoin, I would think that the fact that they are investing a lot and the possibility that BTC valuations might change during the time of their investing, the more that their BTC value grows, the more that they might want to learn about bitcoin in order to continue to feel comfortable with the increases in the value of their BTC holdings with the passage of time.

No, i do not think so. If there is availability of emergency/reserved funds then it is very difficult to alter funds that are supposedly kept aside for investment purpose. A monthly earner can still prefer to DCA weekly instead of going in monthly, Investing weekly do have a positive impact to the investor, knowing fully that it could help accumulate Bitcoin efficiently, which means taking advantage of purchasing at different prices. The gap between one month of investment until the other is very wild, the market could have gone through stages that should have been more considerate to buy at a lower price.

Nothing basic concerning analytically involvement in accumulating Bitcoin, the only recommended opinion is knowing how to buy and store our Bitcoin, any chart reading or extensive reasoning attached are false, this create a stance for short term or trading kind of participation. Likely, knowledge is good to have, but when we talk about accumulation nothing links towards making analysis.