Topic: Buy the DIP, and HODL! - page 73. (Read 121870 times)

If a new investor that his DCA is ongoing consistently, and he has $1000, he can chose to share it into three parts whereby he uses $300 to lump sum, $200 to buy at the dip and $500 to DCA with $50 for 10 weeks. The important thing is that your DCA should not stop but keep buying for a long period of time.

Tweaking from one strategy to the other will depend on the size of your bitcoin portfolio and how best you understand using those different strategies.

Dollar Cost Averaging DCA in this investment strategy if an investor can make his investment consistently then he can succeed in this strategy with low risk. We who are real investors, before thinking whether we will make a profit, think about whether we are investing in the right strategy and how much our money is safe or at risk after investing. 

I invested 1000 dollars together and at one stage of bitcoin market I took that investment if the market dumps then there will be additional loss but the investment remains the highest risk but it is different with DCA investment strategy. 
In the DCA investment strategy we will invest that $1000 in several stages and we will maintain the consistency of the investment so that we can buy bitcoins from each stage when the price changes. 
By doing this it will be seen that we are investing reducing the risk in our investment.

Of course, if it is possible to hold Bitcoin in the long term, then such investment strategies must be adopted.  Investments are usually only profitable if they are long-term, but investing with a small amount of money can be done long-term only by following the DCA method. Many people use many types of strategies but the DCA strategy is one of the most popular strategies, where all investors have found success using the DCA strategy.

What determined a convenient strategy is what you have ( your source of income ), if one doesn't have a good source of income whether the person is using the best strategy (DCA) it can never be convenient for the person so a convenient strategy is a function of someone good source of  income. For example now, if a business man usually goes to the market with $20 to buy goods or product meanwhile his monthly salary is $100 and then he is been promoted and the salary increase to $200, don't you think the business man will also increase the money he usually use to go buy goods at the market and vice versa but that doesn't mean the $20 is not convenient for him and I don't think investors are tied or band to use a particular strategy for accumulating Bitcoin.

As I mentioned, I am not that excited about automatic DCA, even though there surely are ways that guys could use automatic DCA to their advantage, including for example, let's say that there is a guy who might usually invest between $80 and $150 per week on BTC buys, and realizing that he has a decent amount of variance in both his income and his expenses, yet he tends to not be really sure about how much variance he is going to have, except at maybe one or two points during each of the months.  Accordingly, such person gets confirmation regarding his income and expenses at those various points that help to inform him more specifically regarding the amount of his discretionary income for that month and so after he has that information, he is in a better position to commit more specifically regarding how much his DCA is going to be for the month.. ... so maybe such person in such situation might consider setting his automated DCA at $80 per week (which is like the worse case scenario), and then at the end of the month or maybe twice a month, he would assess whether to add some additional BTC buys in there or not.. so once or twice a month, the guy ends up looking at it his various cashflows.. especially if they seem to be deviating a lot from usual, more thoroughly, yet during the vast majority of the month, he is just letting his weekly DCA run with the lower amount such as $80 per week in this example even though he knows that there might be some weeks that he is able to buy more bitcoin .. but he ends up erroring on the conservative side so that he does not screw up his cashflows, and  he otherwise be spending the majority of his time doing other productive or enjoyable things in his life.   

Thanks for this wonderful information that I never thought existed. You have once again helped make things easier for me regarding my Bitcoin investing. I first learnt about the DCA method from you and it changed a lot of things for me especially my approach to Bitcoin accumulation; things got rapidly better for me as the DCA method gave me the discipline and mindset I needed to take my Bitcoin portfolio to the next stage. I also learnt from you those other additions such as the emergency funds, reserved funds and other wonderful ideas that makes the investment and holding easy and sustainable.

This information about automatic DCA is another game changer for me as it makes the whole thing easier for me. With it I will only have to login in to the exchange only when I want to make withdrawals or deposits which is normally monthly while my DCA runs weekly. I appreciate your level of selflessness in helping us with out Bitcoin investing.

You are right on the reasons why people switch strategies while investing in Bitcoin but we should not follow up a strategy that we may not be able to maintain instead sticking to a strategy that you find convenient enough for you will be the best choice instead of switching strategies just because of your current status at that particular period of time

Changing of strategies becomes more like trading when you choose to sell within a short period of time otherwise whichever strategy you choose to propagate your investments analysis, it is welcomed provided you are not inconveniencing yourself while trying to adapt to a new strategy.

I agree with you that the DCA strategy is a common strategy used by most investors to accumulate bitcoin, but you are wrong with your explanation about the DCA strategy because it doesn't only allow investors to accumulate bitcoin in a bear market. The DCA strategy allows investors to accumulate bitcoin right away when their DCA money is readily available, either on a weekly or monthly basis, without waiting for any dips to happen before they can accumulate bitcoin. One of the benefits of using the DCA strategy to accumulate bitcoin is that it allows investors to accumulate bitcoin both in a bearish and bullish state, which gives them an advantage over those investors waiting to buy bitcoin when there is a bitcoin dip.

I agree that the 9 principles should be for every investor or potential investor to consider, yet just to be clear, the 9 principles (individual factors) do not necessarily need to be mastered prior to getting started investing in bitcoin, yet they should be areas in which each of us continues to account for throughout our bitcoin investment journey in order to attempt to tailorize our bitcoin approach to our own individual circumstances, which likely will continue to change as we continue to accumulate bitcoin and even when we might get into the maintenance stage of our bitcoin investment journey.

It is quite likely that most of us already have general answers to all of the 9 factors, yet still in order to really master them, it can take years and years, especially since several of them are likely to be moving with the passage of time and as we live our lives and various aspects of our lives change.. some aspects change more significantly than others, and may well contribute towards our needs to change some aspects of our approach to our bitcoin investment.

Investing in Bitcoin is entirely at your own discretion but following the DCA approach requires regular investment. But investors can invest using any strategy, those who are wealthy investors mainly buy bitcoins with pooled money and do DCA method. And basically the poor holders are basically buying bitcoins bit by bit, and the whole investment depends on their income. And they invest the extra money that survives without household expenses.

Basically, the investor can invest according to his own strategy and desire. Maybe you can create pressure but later his investment may not last long, every investor will invest according to his free will and he can use any strategy to make it last long it depends on his will.

No one is going to mind explaining what is best for many people here, especially those who want to continue learning about how to own Bitcoin and how to properly maintain it for the long term. And I think the nine principles that @JayJuanGee has given in this one thread https://bitcointalksearch.org/topic/m.58719590 are things that you need to understand properly before you do anything else because from what I read in that thread it seems pretty accurate and feasible for everyone to understand properly. So you just need to take the time to read it carefully without having to ask about whether or not someone objects to something you want to know.

The DCA method is not just for a declined market rather it can be use when the market is also high, investor who uses the DCA method doesn't wait for decline or..., Though accumulating when the market declined gives investors  some advantage and for your information investors who enter during decline market are buy Dip and lump sum investors. To me I see waiting for the market decline before one can or will invest as a waste of time because it is possible that any opportunity one missed now can never be seen again.

Your explanation does not help.  If we are talking about bitcoin in this thread, then there is no need to use the word "crypto" unless you clarify what you mean by it, which you did not and there probably was no help for you to use the term unless you wanted to say bitcoin and shitcoins, then you could have had said that... and there is no need for us to harp on this point, since many of us, not just me, don't like vague references to shitcoins that don't clarify where bitcoin is within that reference.


I stated in my post that I was not even necessarily wanting to refer to your level of knowledge about bitcoin, even though I mentioned that people have been in bitcoin several years and even investing into bitcoin during that time, and they still do not understand bitcoin, so I find it a bit presumptuous to conclude that the general population is becoming materially more informed about bitcoin, even if more people might have heard the word bitcoin, bitcoin's growth still is taking time to build, even if we might start to presume that more than 1% of the world's population has taken some kind of a stake in bitcoin... which I think that we would be pressing matters to assert that even 1% of the world has bought a significant stake in bitcoin.


Are you trying to say that adoption of bitcoin is higher than 1%?  or the adoption has the potential to go higher than 1%?

I have a hard time appreciating ideas that that bitcoin is very popular but governments are keeping people from buying it.  I do understand that there are a lot of restrictions on bitcoin in a lot of areas in the world, yet if people know about bitcoin and they want to buy it, then why don't they find a way to buy it in spite of various obstacles that might be in front of them? 

Maybe we can agree to disagree about the "what if" regulations were easier questions, since I am more inclined to be searching for the "what is" rather than what "ought to be" kinds of questions, and yes government restrictions is a "what is" kind of a question, but if you are suggesting that the ONLY thing holding a lot of people back from buying bitcoin is governments, then I am thinking that you are speculating too much about what is causing bitcoin adoption to ONLY still remain in around the 1% of adoption territory.

By the way, I would agree that some of the ETF buying up of bitcoin and various third party holding of bitcoin is potentially an attack on bitcoin and it does not necessarily help poor people to acquire bitcoin, even though rich folks in the west are acquiring bitcoin for speculative purposes (price exposure) rather than holding bitcoin and/or using bitcoin directly, so surely we are going to continue to have battles with self custody in which individuals still have to figure out ways to both get bitcoin and to get the bitcoin in their own privately held wallets.. rug pulls are going to continue and each of us are going to continue to have to figure out ways to protect ourselves in order to not be vulnerable to rug pulls or other ways that our bitcoin might get taken from us whether it is exchanges or governments or even our own failure/refusal to learn how to secure our own coins and to keep them private too.

Sure I can agree with you that bitcoin adoption should be higher, but I would rather stick with looking and attempting to analyze the "what is" rather than fantasizing about "what could be" including your presumption that people sufficiently know what bitcoin is and that the people are in love with bitcoin, but they just haven't gotten around to buying it in higher quantities because there are too many governmental obstacles in their way.


Again, I doubt that we really need to harp on shitcoins unless maybe we might be saying that some folks get into bitcoin through shitcoins, which could be possible, but the main question of this thread is bitcoin, and yeah, it is already known that a lot of people have to secretly buy bitcoin and that there might not be official onramps and offramps in a lot of geographical locations, so there is a bit of need for people to figure out how to get bitcoin even when they have various obstacles in terms of their sourcing of bitcoin.

Hey JJG I assumed you understand this correctly and if anyone of us here mentioned crypto it doesn't mean that the user is directly classifying bitcoin to be crypto and of course i know that cryptocurrency are other coins created after bitcoin have been created and they are all under bitcoin, cryptocurrency which includes shitcoin and memecoin and some other coin. And yes I don't need to further expand myself or brain putting up here to please anyone here to general understand the difference between cryptocurrency and bitcoin, generally people outside this forum classified as cryptocurrency even when i tried to involved myself with blind argument to some people who doesn't really understood the language of bitcoin term to have seen as one but at later end i periodically understand and presumed they don't know what they are to had blinded calls it cryptocurrency and yes i don't have to go further putting it up to them rather had to used the language to would all understand even though i might be trying to sound so professional and yet i had to narrow myself down to mirror out with their point is that to strict and being to aggressive on them due to lack of understanding and knowledge.

Again being here for about 2-3 years isn't a totally waste after much knowledge gain from you and some other respected poster and users here and when communicating I should understand I practically using a general knowledge which everyone one both bitcoin oriented and none would be able to comprehend and understand how the language is going. Where do I have to say that my staying here over year I wouldn't had understood the different between cryptocurrency and bitcoin that indirectly brought my soiled my overall knowledge meaning that what you had all put here i am not taking note.

Well, we might see and think bitcoin is that popular but surprisingly it's being mentioned nearly in most of the songs within our local artist and little children knows that bitcoin is digital money, the only holding the wild spread of bitcoin is just government, if by any authority or chance that bitcoin is being legalized sir, you would be amazed what you would see as turn up in bitcoin adoption but guess what? There are lot of people who secretly acquiring dozens of it into their secret wallet which you and I doesn't know except for those people which we think  has bought thousands of it, then we wait for pronouncement to the speed which would impressed regard bitcoin and other supported coins knowns to be cryptocurrency.

First, we are not talking about cryptocurrencies (or shitcoins in this thread), so it is a bit unclear why you chose to mention cryptocurrencies or perhaps convoluting the idea and thinking that bitcoin is the same thing?

Second, let me presume that you were meaning to talk about bitcoin and not shitcoins.. ... so in that regard, your suggestion that everyone in the world sufficiently knows bitcoin, that is a bunch of bullshit, and a wrong premise in order to consider where bitcoin is at right now, where it came from and where it might be going.  If many people in the world had any clue about what bitcoin is, then we would have way higher than 1% world adoption.  I will agree with you that a lot of people heard the word bitcoin, and there are not too many people who can accurately describe what it is, including convoluting the category (just like you did) and suggesting that bitcoin is part of a category called crypto... so even people who presumptively have been studying bitcoin for a few years and potentially investing into it still don't know what it is beyond that it includes number go up technology.

Sure, maybe you know what bitcoin is, so I would not want to make my response about your knowledge level, since your use of crypto might have been an innocent and/or potentially meaningful oversight/inclusion...

So many people presume higher levels of world knowledge and/or perhaps bitcoin adoption based on some small segments of the population having had accumulated decently large amounts of bitcoin and even some financialization of bitcoin, and increasingly rich, famous and even widely respected financial people saying good things about bitcoin and even investing into it...

There are errors in presuming too much into the population's knowledge of bitcoin, especially if that supposed knowledge is not backed up by their having a significant/meaningful stake in bitcoin, which truly the overwhelming majority of the world's population, whether we are referring to individuals, institutions, and/or governments are quite underinvested in bitcoin... low coiners or no coiners which likely still amounts to 1% of the population at best  - including referring to institutions and/or governments.

Are you mislead by BlackRock accumulating more than $20 Billion in bitcoin on behalf of it's clients?  Surely there are some early buyers into the ETFs (kind of like insiders), yet I have my doubts about that investment of money into ETF shares reflects either high level and widespread adoption of bitcoin or even that knowledge is spreading into the world's population regarding what bitcoin is beyond very small segments of the population of individuals, institutions and/or governments. 

Yes, knowledge and awareness of bitcoin is growing and growing, yet I am not going to presume that very many people actually know what bitcoin is, especially since so few have taken any actions to get off of zero or otherwise to substantially invest into it, which such buying and getting involved actions would lead some credence to their actually knowing what bitcoin is.

Bitcoin has passed the stage of becoming afraid of what could happened at the cost of your investment and of course before anyone out there goes into investment we can say that they have read and understand the regulation and the implications that involves while making investment, and gain cryptocurrency is no longer a new thing to world and if if not mistakenly now bitcoin has been in existence for about 15-16 years now if am not mistakenly and almost about every part of the world has heard about bitcoin and understand the risk and volatility that it carries.

That is why most people took the risk and invest and during investment they don't involved themselves with a compulsion investment it's just that when they are ready to accept the risk index then you would see them venture into buying bitcoin..

And of course those who understood the language of bitcoin never waits to routed and sink into the knowledge, the thing is just for them not to be left out of regret that is why most people do not hesitant to buy and hold, along the line the study and gain knowledge to hold more stronger and most of them even involved in doing DCA just the above discussion is saying.

You are absolutely right, there is no fine or punishment place for anyone who invested his money in Bitcoin and vice versa, investment is something we shouldn't force people to do rather it has to be a willingness of heart or mind and I think most of the people who end up doing bad or not doing well in their investment is because they are not willing or ready to do it. Permit me to say this, we all know Bitcoin has stayed for years and has shown us proved that it existence is going to be long but we can't tell how long it's going to be so for this reason Bitcoin investment is not 100 percentage guarantee I mean anything can be possible but since we have made up our mind to invest all we need do is to be positive and hope for better future with Bitcoin investment. No matter how one trust a particular project, It will be very unwise for someone or an investor to use all his money to invest in a project. Don't get me wrong, I'm saying this because I don't want anyone to have a wrong mindset or thought about Bitcoin investment that's why we are advise to use what we can afford to let go.

If you are a long term investor in bitcoin, then most likely you are not spending 4-10 years or longer to accumulate bitcoin in order to just get out of it right away, so there may well become a stage of your investment journey where you are no longer really accumulating as much or you might go into a stage that you are completely not accumulating BTC anymore or injecting any new capital into bitcoin. 

Many times, the lines are not going to be exactly clear because even in your early to mid to late stages of BTC accumulation, you might change the way that you accumulate, and surely many of us recognize and appreciate that there is a lot of value in a more strict DCA approach to BTC accumulation in the earliest of stages of the bitcoin accumulation journey, yet if someone is able to front load his investment and/or even employ some lump sum investments into bitcoin in the beginning, then he would likely have more liberties to modify his BTC accumulation approach away from DCAing.

the same is true with the maintenance stage.  Earlier stages of the maintainance stage might still involve BTC accumulation from time to time, but it also could include holding without any buying or selling at all or it could evolve into something that has some selling or even both buying and selling with a purpose of mostly maintaining the BTC stash.. but there could be a purpose of maintaining that allows for continued growth of the BTC stash or a maintenance approach that attempts to keep the BTC quantity largely at the same quantity or there could be a mostly maintenance approach that allows for gradual decline of the quantity of BTC over time (yet still having a gradual decline in BTC quantity but an overall increase in the dollar value).. so there can be quite a few variations of how someone goes about BTC maintenance in part depending on his own levels of BTC accumulation in light of his own individual factors but also in light of the extent to which he may have overaccumulated... which truly the more that he perceives himself in an overaccumulation status the more able he is to sell within the overaccumulated portion of his stash without feeling any financial or psychological burdens within such selling choices...

So, for example a guy who had a goal to accumulate something like $2 million valuation of BTC using the 200-WMA, which would be around 52 BTC at today's 200-WMA valuations, yet perhaps he had accumulated 60 or more BTC, so he may well consider the 8 extra BTC to be overaccumulation, so he might establish some kind of a plan to spend the extra 8 BTC over the next 5-8 years, so he might decide to spend right around 0.13 BTC per month for the next 60-96 months, so he sees that 0.13 BTC is currently valued at $8,500 spot price, and so in order to attempt to make his withdrawal more stable (and sustainable), he might decide to just withdraw right around $6k per month until he uses up all or most of the extra 8 BTC, and surely he can reconsider his plan along the way, but the fact that he concluded that he has an extra 8 BTC, he has more liberties than if he were still within his BTC accumulation stage... or if he had not concluded that he had overaccumulated.  So there can be a certain freedom in reaching a status of overaccumulation and then creating some kind of a maintenance (or even sustainable  withdrawal) plan based on such assessed overaccumulation status.

Yet being within a maintenance status does not presume overaccumulation, since a guy could consider himself to be in a kind of maintenance state and he is close or near to sufficient BTC, but he is still wanting to spend some time accumulating some BTC, but he is not really pressured in regards to his quantity of BTC since he is close to having enough, and he figures that even if he does not accumulate more BTC, within 1-4 years he will have more than enough even with the amount of BTC that he has, yet at the same time, he might want to still continue to accumulate, even if he has assessed that he is in a current BTC accumulation status that is close to enough BTC.


Your points are mostly valid Zaguru12, yet I am pretty sure that most exchanges that offer automated DCA are attempting to not move the prices on the order books with the daily automated DCAs that are getting executed on their exchange, yet we cannot really know with any level of confidence since the information is not transparent and maybe we would not want the information to be transparent even though we would want the exchange to be honest in the way that they are executing the daily automated buy orders.

Regarding your point of manually setting limited buy orders, that is how I used to do it when I was first in my earliest BTC accumulation stages.  

I would have an authorized amount of BTC to buy every week. .. .let's say $100, and so then I would set some limited buy orders at various prices below the current price, and then if by the end of the week all of the buy orders had not executed, then I would manually buy whatever remained on the various buy orders and then set another $100 for the next week... so there was attempts to buy the dip within the week, but if the price did not dip, I would just buy at whatever price came at the end of the week.. and I even sometimes changed which day (or what time of the week I would do my resolution of each week.

Sometimes my resolution/finalization of my weekly DCA allowance might have been on Saturdays and other times on Tuesdays and sometimes it was during the day and other times it was in the night depending on what I had established (or authorized) for myself for the week, and surely some folks might claim that there might not have had been any advantage to my system of buying and a more strict DCA approach would have had been better and less work, which surely it is difficult to prove either way, since I speculate that I was getting what I wanted out of the deal, I was engaging with bitcoin every week and I was mostly buying bitcoin every week within my own authorization levels too (that I was free to change at any time that I wanted), even though my buy orders sometimes executed during dips within the week, or I ended up just buying BTC at whatever the price was at the time that I had established to resolve/finalize my week buys (authorized DCA amounts).

Automated DCA! This is something that has crossed my mind for some reasons but believe me it will definitely not still be near perfect as that of a manual DCA done. First off I think there will be discrepancies on the time that the orders will be triggered or rather will have all those using the automated method orders triggers at same time. Like a daily set up will trigger just immediately after the day goes off. Each investor will have his preference as to when they wish to have set trigger, for example some incoming fundamentals will require one to go in early or join the late trade but automatic set will definitely just trigger when the exchange time comes without taking advantage of this fundamentals.

The manual method still remains the best, just that you will need to be available when you wish to take the trade but yet a limit order can still be placed for certain market price and it will trigger this only just depends on price and not time again like how the automated will be. The awareness or ability to place the order yourself to me is even a key to how you manage your finances or how you pay attention to them.

I haven’t tried this but with your information of binance offering it triggers me to have a glimpse of it, I will have to give it a try and compare with my manual purchase

Yeah, you are very Learned and I love the way explain things in other to make it more clear to people.
You mentioned something about maintenance strategy and I will like to know more about it, please if you don't mind.