Topic: Buy the DIP, and HODL! - page 72. (Read 129586 times)

There we go again about learning or seeing analysis as an important tool for Bitcoin accumulation, I don't know if you have been on this thread earlier to understand that analysis does not have anything to do with your Bitcoin investment, so don't feel that after going through those things you will develop another better way to accumulate Bitcoin, those assumptions are totally false, so those that still think about analysis should not go through that stress because it doesn't work on Bitcoin accumulation.

However if analysis is that important as you claim can you mentioned a holder whose analysis has helped on there Bitcoin accumulation?, actually I don't no why people like to waste there energy on something that doesn't have any importance or significant to there Bitcoin accumulation journey when they can judiciously use that time to concentrate on more important thing which is there accumulation, if you are doubting me you can possibly ask everyone here, you will see that analysis is a waste of time and is something a holder does not need.

Apart from keeping funds as reserves and for emergency needs, i see no reason why someone who is earning monthly will consider splitting his money through the 4 weeks that makes up a month. For any investor using the DCA strategy to accumulate, if they get their income on weekly basis then they should apply weekly DCAing, and if they receive income on monthly basis they should also invest using a monthly DCA strategy. If you decides to split your monthly funds within the weeks, even though you have emergency funds and reserves, you can enter into a condition that will make you to spend both your emergency funds, your reserved funds and the amount you have kept for your next DCA since all the money are still in Fiat because you earn in Fiat, so if it where to be in bitcoin already you will sort out other ways of attending to such situation without having to tamper with your holdings.
               Money kept in Fiat can easily be spent than when it has already been converted into bitcoins. I know that the DCA strategy is about accumulating with same amount at different intervals but it doesn't mean we should not buy if we get money from other sources before our main source of income arrives so far as our emergency funds and reserve funds are still very much intact. Taking advantage of the DIP don't really mean it must be on weekly basis, DIPs can be taken advantage of at any time of your investment. How about a scenario whereby you used your reserved funds to buy at a DIP price in a week and getting to the end of the month the price even DIPs further, won't you be regretting why you didn't leave your reserved fund till that period? we ain't in a hurry to buy bitcoin at a DIP but if the opportunity surfaces then it's just a bonus, the most important thing is about strategies to increase your income, increase your DCA amount and own a huge portfolio.
     

The best and most reliable way to invest in DCA method is when you have certain cash flow to invest in this method. As you mentioned, starting investing in this way will automatically attract your mind to investing. Yes it can be because it is possible to invest in this method even with little knowledge about Bitcoin. Investments will increase over time and so will experience.

Preparing yourself for investment means having specific plans and being ready to buy immediately And watch how well you can manage your investments. Basically we always invest systematically in this method to avoid risk. By adopting this method, you can continue to invest at any point in the market, because you are buying bitcoins with a fixed amount of money at a fixed time. By spending a fixed amount of money on a weekly or monthly basis to buy bitcoins, you are able to buy smaller amounts of bitcoins during market upswings and buy larger amounts during dumping periods.

You may be correct but some of your phrase is confusing and can you please explain what you mean by those who invested in Bitcoin at the time they did it has the most success and what you also mean by take risk to prepare yourself only once. And again it's not just about using the best and reliable strategy (DCA) rather it's about management skill, how well can you manage your investment because I can bet with you that it's not everyone that is using DCA, is  doing well in their investment reason because they don't know how to manage investment, they are not discipline, they don't have patient and some just jump into investment without a stable source of income because they heard Bitcoin is a very nice investment and off cause it's a very nice investment but  that doesn't mean It's all rosey.

Technically, there are 4.33 weeks in a month, since there are 52 weeks in a year, not 48... and sure there are 52.143 weeks in a year since there are 365 days in a year not 364.


There is some truth that a person might buy BTC on a weekly basis in order to potentially take advantage of various BTC prices in the market during the month, yet I would think that investing weekly just allows a person to stay more active, especially since there is a bit of price neutrality with the DCA method.. even though within the buy period, whether it is weekly, monthly or some other interval, a guy could still try to take advantage of dips within the period.. but perhaps ONLY go so far in terms of waiting for dips since he might have desires to use up all of his BTC purchasing allowance prior to the beginning of the next period.


This is a good point to reiterate, since so many guys seem to believe that they have to set DCA up based on when they get paid.  Sure, there might be some logic in regards to how much cash might be available, so there could be some logic to employing DCA around the time of receiving payments, but there could be reasons to also either save money to be able to buy bitcoin every week for those who want to buy bitcoin every week, or there could be reasons to wait until the end of every month in order to be able to have confidence that no more money is needed for the month.. so in that regard, some guys might not feel comfortable to employ their DCA for the previous month until their paycheck for the next month has arrived, so some guys might purposefully wait to see how much money they have remaining before employing the DCA.  It seems to me that the longer that any of us employs DCA and are investing into BTC, then it seems that the greater chances that we should be able to have more cushion in our cashflow and confidence in the amounts of money that we have, yet there still could be some pay periods or some months in which income and/or expenses might not be very clear (or without much cushion) for that particular pay period, and we might have to be more careful in terms of the amounts that we put into BTC as compared with pay periods that we have more confidence in regards to our cash cushion (and or determinations that we are really spending from disposable income rather than spending from money that we might need for expenses).


Surely we are allowed more flexibilities when we have different kinds of funds, so there is a certain level of dedication that comes from anyone who actually chooses to buy bitcoin right away, since that money is going to be locked up for 4-10 years or longer.  Also if there is some kind of a deferral that is based on spreading out the buys on a timeline (usually referred to as DCA) or deferral based on BTC price dips, there can be a certain amount of discipline to keep that money dedicated towards buying BTC on the set conditions, yet if they buy had not yet ben made, there would be some liberty to reallocate that money towards something else, whether some other investment or towards consumption or even to just put the money into reserves or into the emergency fund.


Last time I checked, there were 52 weeks in a year, which would end up being $5,200 invested into bitcoin in a year if the weekly amounts were $100.


The further out you go, the more general will be your estimates.  You likely have reoccurring expenses, and some might be within a range, and perhaps you would estimate towards the higher end of the usual range, and similar with income, you might have some general amounts that you usually receive, and perhaps you wouid use the more conservative numbers, and so as the time gets closer you sometimes might revise some of the numbers, and hopefully in most months you would have more than you anticipated available for buying BTC or giving you other kinds of flexibility.  If you structure in ways that you are either exaggerating your income and under anticipating your expenses, then you are likely always be in a state of stress, and contributing to your own emergencies every month.


You can have a category in your projected budget in which you have a certain amount of your income that is dedicated to unexpected expenses, and therefore even if the expenses are not known in advance, they are already accounted for in your budget.


Having those kinds of projected cashflow plans seems to help, yet sometimes there will be some work involved in maintaining such projections, yet it seems that once you have your systems in place, then you can probably figure out ways to make them less work.. even though I know that sometimes when I have certain systems in place, having organized the information will sometimes cause me to want to analyze other areas of my own personal finances or maybe analyze certain outcomes, so the creation of certain kinds of information will sometimes spark (or inspire) more analyzing work. which some guys might find to be interesting, and other guys might NOT want to go down various exploration paths in regards to either analyzing past spending or the performance of past investments or to project into the future based on based investing and/or consumption behaviors and past results... There can be ways to tie some charts into analyzing overall wealth and changes in networth.. and sure some of the categories might not be specific but general to give ballpark ideas and to have charts to see how those numbers had been in the past and to project how they might change into the future, too.

DCA method is the best and most reliable way to invest in Bitcoin. So this should always be done to keep yourself properly calm. Because once you start investing with DCA method, instantly your mind will be automatically attracted to that investment. So it is most necessary to take risk to prepare yourself only once, so if you can sustain your investment for at least 5 to 10 years, you will get maximum success. 
Because those who invested in Bitcoin at the time they did it have the most success and there is still plenty of opportunity, so the only time to invest is to adopt the DCA approach strategy. It is definitely useful for both old and new investors if you can get started.

Well, it's quite a good way of starting your journey I mean you didn't need to spend days/weeks or months studying how to read chart... besides, that's not the basic step to start journey as a newbie, you did the require basic necessary learning( as you've mentioned ).
Thus, regarding the market analysis, you can actually try learning the basics, having Idea on how the market works while you continue your investment  journey  doesn't look lika  bad Idea but it will be a bad idea if you want to start using it as a means to start taking your investment inform of trading... you get the point(not technically directing the whole context on you though by using the word "you"), what I'm just saying is that it isn't a bad idea learning how to analyse and read chart of BTC market

Cash flow is the main concern that must be considered for the sustainability of the investment made. Determining cash flow management for a long time certainly drains a lot of thought so that it can run as we want. Cash flow is supported by a fixed income and if not it will be contrary to what is planned. Generally, cash flow is divided into several stages and maybe we already know about it so that a wise mindset is to be able to maintain it as well as possible to reach the point of success in investment.

Meanwhile, we can think about maintaining our investment with a small portion of the money we set aside for investment. Because if the amount of money that we use for investment is too large, of course it will go awry if the cash flow expenditure is greater at an unexpected time.
In this perception, use only a portion, such as 10% which allows us to have the other 90% for our living needs.

Well, projecting cash flow for a year or more can help us ahead of the curve and it's also not going to be easiy with predicting our day to day expenses and there's sudden opportunities that we want to utilize it but it's also more important to keep navigate through them in short way without losing our focus on our long term goals and with such mindset we get to keep ourselves solid while avoiding the blind spots.

Life will never stop throwing unexpected expenses out on us but we need to get through it whether we like it or not and also that's not an excuse to avoid investing on bitcoin. Meanwhile having a short term plan like monthly budget and long term ones like how the next 12 or 24 months is gonna be and stick with it is the key to success no matter what we need to do then we avoid those bumps while making sure stay strong.

I started my Bitcoin investment without learning about market analysis, that sounds like what traders usually do before starting trading (but not interested in it). Initially what I did was to learn the basics of Bitcoin first (which includes how to secure my assets) and also learned how to navigate exchanges , so that I will be able to purchase bitcoin through them , before going into deep on how bitcoin investment works.

So one don't need to learn any skills before investing in Bitcoin, bitcoin investment is open for anyone both poor and the rich z the skilled and the unskilled, aslong one have the money to invest that's all.

I disagree with you that a new investor needs market analysis skills before he can start investing in bitcoin. What does he needs the knowledge of analyzing the market before getting started with his bitcoin investment, when his focus is just to keep on buying without selling a dime and he is using DCA method that doesn't care about the price of bitcoin before buying. You are making newbies get the wrong mindset of how DCA should be carried out. You know that it is impossible for anyone to know the next price movement of bitcoin making market analysis useless and a waste of time because it is only traders that needs to know about market analysis.

What is required for a new investor is to know the basics knowledge of bitcoin and not experience because how will you have the experience of what you are not practicing. Investing in bitcoin needs to be practiced for one to have experience of hodling and building his bitcoin portfolio. This is because if you don't have any bitcoin you will not feel emotional if the price of bitcoin pumps or dip. Also you will not have the discipline to keep on buying and cut down unwanted expenses in order for you to keep your bitcoin accumulation ongoing wit
h consistent and persistent. How will you also be able to tweak from one buying strategy to the other based on change in your cash inflow and the market movement.

It is just like telling someone who wants to start learning driving when he has not drove any car before that he must have a driving experience before he will be able to drive safely.

I  think you misunderstood him or her, the money you are dividing it's more like keeping the emergency fund Incase there's a challenge or maybe a Dip in the market you can take advantage and I think it's a wise idea I mean a nice strategy. Since the person is a salary earner definitely there will be money for next month to accumulate but remember the lower your investment rate the more time it will to take to accumulate enough Bitcoin stash and the higher the investment rate the faster one will accumulate enough Bitcoin stash in their portifolio and the higher the risk if your source of income is not stable. And investor should always think and check before executing any plan.

Dollar Cost Averaging method is a recommended investment strategy, through which the method to invest is to be ready to buy immediately without waiting for the upward and downward trends of the market, i.e. be ready to buy Bitcoin in any market situation. Depending on your income stream on a weekly or monthly basis, instead of investing huge sums, you can comfortably invest as much money as you can afford. Before investing financial management is necessary to help you continue investing without fear of regret.
Yes the DCA strategy is very simple even investing in this method does not require a lot of experience about Bitcoin if the person has a certain source of income to invest, proper planning, goals and his market analysis skills. It is important for any investor at the initial stage to have a little knowledge of market analysis.

We can observe these to invest in DCA method;
1. Gain a little experience with Bitcoin before investing.
2. Fixed source of income i.e. ensuring financial management.
3. Being ready to buy immediately (in any market situation)
4. Creating a mindset to hold investments for the long term with patience.

Simply put, DCA is an investment strategy by investing some money routinely without having to consider market conditions in detail, the investor focus will be on periodic purchases of the same amount without looking at the price. So, instead of investing a large amount at once, DCA allows investors to invest part of their funds in Bitcoin regularly over a period of time without requiring much consideration. This strategy is also very easy to do because it does not require a lot of market analysis, investors only need to determine the goals, targets and investment period.

Bitcoin is a volatile asset and so there's no guarantee that you will get 2x or above that amount from your investment at the end of the year. Realistically, thier might be years when we are not all that profitable with our investment and Bitcoin might remain at a certain range of price for a long time during some years before we tend to see anything close to 2×, 3× or so as you may have it.

That's basically the whole essence of long term investment and the application of the DCA methord in doing so because while you're investing for the long term, even when you don't see yourself in a good profit at certain time, you just take it as an opportunity of buying more Bitcoin and to continue doing your DCA till you reach your accumilation goal.

The experiences you get to encounter throughout your accumilation journey helps build you to become a better investor that's not just relying on investing and seeing profit too soon like some short term traders do. DCAing for the long term helps you to witness the bull, the bear, effect of government regulations on Bitcoin and also to witness times when you're tempted to sell because you're in profit or because others are selling and you have to deal with your emotion and keep on buying your Bitcoin.

I would like to add to your points that once they start investing in Bitcoin using the DCA strategy, they hold the investment for a long time and see huge benefits. Not only that, the process of investing using this DCA strategy is usually one of the methods of holding Bitcoin.

 If you notice, everyone will understand about this investment, because if you invest $100 every week, you can hold $400 worth of Bitcoins in a month. And that's $4800 a year you can invest, and this DCA strategy saves on the purchase price, so if you invest this bitcoin you'll get 1 x 2x growth at the end of the year. Because the price of Bitcoin is upward the more you invest the more you can see here and if you can hold your investment for a long time then you will accumulate the maximum amount of Bitcoins and you can be marked as a successful investor.

When a person is managing investments through DCA method, he should be given full freedom to decide whether to do weekly DCA or monthly DCA if he does not seek advice. He can take decisions based on his ability. If he is monthly salaried then he can choose monthly DCA or if he is weekly salaried then he can choose weekly DCA. Again he can decide the time of purchase depending on his decision ignoring the time of salary. He can manage his investment depending on his personal opinion keeping in mind the characteristics of DCA in investment. I urge you to give him full freedom as to how often he buys. But if one plans to make frequent purchases, he should be advised, as frequent purchases will increase the amount of fees. Although I use and love DCA monthly, a person should not buy more than 4 times a month. It is better to buy at most 4 times a month or less. Here you can take decision independently.

All your narratives seems to be directly describing the importance of an effective financial planning and allocation which prioritize or emphasize much on the vital roles and importance of an emergency and reserve funds with their unique functionalities towards achieving a smooth running investment. By definition, it is expected that one should work towards building an emergency fund somewhere between 3 to 6 months of their living expenses, it serves as a save heaven, an investment cushion and safety net for an unforseen contingency or unplanned expenses as not to disrupt investment plans  when an unplanned expenses arises.

Surely the DCA strategy really has brought hope to investors that doesn't have much to buy in a larger quantity at once by allowing them to invest with an amount that they can be comfortable with, whether weekly or monthly based on the income flow, of which consistency is the lead way as it can takes plenty drops of water to make an ocean.

There is always a need for money in people's life, so even if you invest for the purpose of long-term investment plan, many times it is seen that due to excess financial needs, you have to sell investments to meet your financial needs despite your own will. This is almost the case with most investors. Since we need money at any time, we need to make some changes in our investment strategy by thinking about our investments and considering our financial needs.  

For example, instead of investing all of your remaining money, the remaining money should be divided into two parts, one part should be kept in a savings account and the other part should be invested. If the investor adopts this strategy in the case of investment, it will be seen that when his financial needs appear, he can withdraw money from his savings account and spend that money on his needs, but he will not need to sell the investment. Many may question that the amount of money that is left at the end of the month is not much, how will he save money from that limited amount of money and maintain the consistency of investment. If anyone is thinking like this then I would tell you to divide your minimum amount of money left over after spending it into two parts. Because there is no obligation to invest in DCA investment strategy that requires you to commit huge amounts of money.  

Invest according to your ability and try to maintain the consistency of your investment for a long time, then you will see that the amount of money that you think is minimal amount of money becomes a huge amount at the end of time.

What is the worry of transaction fees because it will not change anything in the view of DCA because looking at the current situation we can even see that even though the transaction fees after halving there were some uncontrollable moments but in the end now the transaction fees are back to normal and even look very comfortable to use anything.

Things like this will not be a reason for someone not to do DCA because after all, many of the excuses used are only one of the reasons for those who are not serious about investing so they look for their own reasons not to do it such as transaction fees that are too expensive or the classic reason where they say the price of bitcoin is too high and it's too late to be in it.

Whereas if they are serious about doing it regardless of the price when the goal is for the long term then everything will look as planned especially since the current btc progress is still very good and the future prospects still look bright. although we cannot know the future but of course reflecting on the historic past then there is nothing wrong with staying in btc to support the future.