Topic: Buy the DIP, and HODL! - page 73. (Read 129589 times)

Of course, we believe more in the long-term potential of Bitcoin than other Shitcoins. The DCA method is superior to many other strategies, that's why here we recommend this method more especially for Investors who are just starting to invest in Bitcoin. The convenience offered by DCA is unlimited, anyone can use this method without having to consider how much capital they have and it does not require a certain amount of time. In addition, it can help investors control their emotions and avoid impulsive decisions that can be detrimental.
By investing small amounts of money at regular intervals, investors will avoid decisions driven by greed or fear, such as buying when prices are rising or selling when prices are falling.

That is exactly what the DCA strategy you have been hearing is all about, there is still need to divide the money especially if you are investing through the DCA strategy. There are 4 weeks in a month, and if the investor divide the money and invest it on weekly basis, he is doing that because he wants to buy at the different market trends of the month. The market won't be stable all 4 weeks of the month and he wants to make sure that he takes advantage of all different markets trends that will occur during the month, that's why the investor has to divide the money and invest it weekly. Unless the investor is not utilizing the DCA strategy to make his investment, that's when he won't need to divide the money and invest weekly. But so long as he is utilizing the DCA strategy to invest weekly, there is every need to divide the money.

This is very wrong and it is misleading. People who receive their wages on monthly basis can invest on weekly basis and there is nothing wrong with that. Even people who receive their money on weekly basis can also decide to invest on monthly basis too. There is no law anywhere that said only people who receive salary weekly  should invest on bitcoin weekly.

 
That is why you should have your emergency funds and reserve funds in place before thinking of investing in bitcoin. When these funds are properly in place before you invest, you won't tamper with the money you've kept aside for your weekly investment.

It all depends on the ability when we are ready to do it weekly then it will certainly be very worth it to do but in some cases, especially for those who invest with the income funds that are owned from the salary every month then I don't think it's too imposing also when they don't make efforts to buy weekly and divert to monthly it is also still very worth it.

But when talking about the context of beginners in this case, sometimes the enthusiasm is still very big to try to collect bitcoin as much as they can so that per week it will not be a problem for them because after all they are excited to do it so they don't think too much the most important thing is to buy. This condition is normal especially since we must have felt the same thing where we never thought several times about buying when we were beginners so this kind of enthusiasm is quite good even though in some cases the intensity of purchases has decreased slightly for several reasons, especially as an evaluation but I think when we become a beginner, the excitement and enthusiasm in purchasing is very large indeed.

After reading more replies in this thread I realized that the discussion here goes beyond just buying Bitcoin, and the main accumulation method is DCA. Thanks for your clarification and patience in explaining, it's a pity that not everyone can treat newcomers in this thread so well. Well, as far as I understand, the DCA method has an interesting aspect regarding the fact that if you buy Bitcoin every month, then all such investors will still have different results, because there are thirty days in a month and, for example, two HODLers will have different results due to prices.

I was also thinking that when you have many small UTXO that consolidation is good when TX fees get low, but I have come to realize that consolidation of transaction will only be helpful to those investors who are being paid in bitcoin direct to their private wallet.

A new investor who is using DCA to purchase small unit of bitcoin weekly will not be able to consolidate his UTXO because if he is buying fro an exchange which will be very discouraging for him to send immediately after buying when TX fees are high and that is why whoever is buying weekly from an exchange just need to relax for a while but keep on buying regularly and keeping it in an exchange till transaction fees are low again before he can send it to his private wallet.

Well, it's  quite true  and just like i said there's isn't anything actually wrong in buying monthly so far the input is consistent just that I also prefer the weekly compared to the monthly besides I'm also in my accumulation stage and the weekly buying method could improve the efficiency of price entry (though not always but most times it proves it worth) and about the fee I think that could also be put into consideration  but taking 4 inputs/per month shouldn't be to much to pull when the need for consolidation arises... though if compared to single input/address its quite preferrable over 4inputs/month but still there will still be  a need to consolidate  so I think the fee difference shouldn't be too much so far the inputs isn't much.
Noted!

Yeah, that's very simple. Do not proceed with the transaction if the fee is higher than the amount you'll send or when it's simply quite expensive.
I won't do it if that's the case but when I've got more funds to be sent and the fees are tolerable, I'd simply continue on that skip on thinking that the fees are expensive.
This happens when we need to withdraw and to sell for some important things that we need to deal with in our real lives. The fluctuation of the fees are there too, so being patient is also worth it if it's about the fees.

I think you are quite right, Transaction fees are not something that someone should take into account when they have implemented DCA. One reason I like DCA because we are consistent in routinely buying Bitcoin, regarding expensive withdrawal fees, of course there is an option to withdraw it once a month from the Exchange used.

DCA practice is very easy, only people find reasons for all ideas because they are inconsistent. If it has exceeded the 50th purchase, I think investors will not turn to other strategies. In the initial process, it is indeed very difficult, but if it is focused properly, our approach to Bitcoin cannot be separated anymore.

We are increasingly confident to continue buying even though the price is going up because the main principle of course to have Bitcoin is not in terms of its price. While there is time and while you still have a permanent job and while you have passive income, use the money to invest because at some point we don't know what will happen, but with our steps to invest in bitcoin, we have better savings that can be used someday or when we have reached retirement age.

I tend to try to project my cashflow 12-20 months into the future, yet of course, the months that are closer are going to be more important to make sure that they are in order, yet sometimes we might be able to see cashflow crunch periods that go out into the future, and more so if we might have various kinds of debt obligations or we might employ debt in our financial strategies (cashflow management) or even if we have family type cost that come up down the road or even business type costs that might go quite a ways out into the future.

What is being discussed here is beyond more than just buying dip. You can choose to learn new things here and get ideas that will benefit you in your investment. The choice is all yours whether you choose to wait for the dip or not. However, the thread did not focus on waiting for the dip because it is a bad idea. You can buy the dip even when you using DCA or any of your preferred strategies to invest. If you have been in this thread for quite some time. You will notice that many do emphasize not waiting for the dip before you start investing because if you do so you may never see the dip for you to buy and that will leave you no choice but to procrastinate in starting your investment.

You may be thinking that buying Bitcoin now is too costly for you and you could buy it lower. But there is something you should know about the market. The price now can be considered to be a dip in weeks from now, months, or years. And you start regretting that you could've bought now when you can. All Bitcoin prices in the past, all of them are not considered to be a fair price for buying so it is now. The best time to start buying Bitcoin is now as long as you can afford some fractions and gradually you will see what you will have in a a year or two. And that is the purpose of this thread. Bitcoin has gone through these prices, $100, 10k, 20k, 30k, 40k, 50k, and so on. All of those prices were considered so high then while people were buying without looking at the price some like you waited for the price to go down more. Now look at it it's better than what it was then. The same thing is possible to happen. So either you start investing now or you live to regret it later. It's your choice to make, dont be forced.

Primarily focus should be on buying and holding Bitcoin and it is better if it is DCA. These are general discussions and important for investment. But we have to adopt different strategies to invest and retain. I think we should talk about how we should be able to buy advisedly and how to hold the investment for a long time. Although these are old words, they are the first thing a new investor should know.

For investing, we should focus on buying first. One thing to note, you must have a reliable source of income. A source of income from which you can meet your full needs and earn a living, a source of income that has security you can call a reliable source of income. Or you may have an alternative source of income for investment. You can consider sources of income outside of the value income source as an alternative income source for investing. Having a reliable source of income/alternative source of income is a prerequisite to start investing. Then decide on the method by which you will manage the investment. Of course here you can decide the investment method independently. My preference and advice would be to adopt the DCA method.

After starting the investment we should focus on prolonging the investment. Remember there are two types of investments. Short term and long term. We compare short term investment with trading, everyone will discourage you if you are interested in short term investment. Because short-term investments have a higher risk of losing money. Long term investment has very low probability of loss and high probability of success. You will use your excess money to prolong the investment. Never invest with money you need, invest with money you are prepared to lose. Choose an amount for investment that will not affect your quality of life and keep a reserve fund which should be around 2x the investment fund. This reserve fund will be reserved for emergencies in your life. There are several other methods to successfully lengthen investments. Of course your investment should be 4 years-12 years or more.

And my question is, what do you do when you get to your f*ck you status? Isn't it to sell a fraction?. Because after reading what terrific (the first reply) had to say, it wasn't different from what you are saying. From what I understood, terrific is saying that, for you to be able to sell certain fractions during a bull run, you must have accumulated alot, and I believe accumulating to a reasonable amount (f*ck you status) does not just take 1-2 years for someone who is using DCA. But I feel that terrific should have probably constructed the statement in such a way that it won't sound as if he is planning on selling some fractions on occasional bull run events. Or assuming I actually understood wrongly, and terrific was actually supporting the idea of selling some fractions in a bull run, then that's is not a good practice from my opinion, though I feel he isn't doing that.


Though, it is important to show some concerns for the blockchain and high tx fees, but I don't really have that time to start observing the mempool to know if there is a high tx fee or not. In most cases when the tx is taking longer than it should, I will just use the bump fee option.

You usually never think about selling, we just need to buy bitcoins and hold them for a long time. In this case we will choose DCA method but there are key techniques in DCA method which must be followed. A new investor cannot directly buy bitcoins, he must follow these rules and accumulate bitcoins in small amounts. 

In this, his accumulated bitcoins will only grow as time passes, thus he can convert his bitcoins into bigger numbers after a long period of time. So to sustain this Bitcoin investment for a long time DCA method must be held and in the moment of money crisis it is possible to invest with any amount of money, only the investor taking the risk to invest Bitcoin is the biggest challenge. So we will discuss how Bitcoin can be held for a long time.

You have a very valid point because there is a saying that "experience is the best teacher". Some people that got better in their Bitcoin investment arrived at that point after making many mistakes and learning from them. There was a time I was putting all my money in Bitcoin without making plans for other needs and this made me resort to selling my Bitcoin when I have needs. Then I was feeling like an investor but in reality, I was not growing very well in my Bitcoin holding and most times waste more money paying transaction fees than I would have assuming I plan the investment to invest just what I want to keep in Bitcoin and HODL.

I noticed that it is likely that every newbie investor will FOMO. Why it is that way is what I don't understand but it happened to me as well as many people I know. Maybe that is how to motivation to start comes and that is also how the early mistakes starts. Well, I see it as a learning process that one have to go through to get better at Bitcoin investing.

Am very happy that you understand that the price of Bitcoin is unpredictable as such it can't be compared with stock trading as you said that's to say that you can't also say the exactly time Bitcoin price will dip and even though it does, we can't also tell if the dip will continue or last for a while, shouldn't that be a good reason for us to apply DCA method to buy Bitcoin at all time since we aren't certain about the price, though we all have our decisions to make without anyone questioning us but if am to suggest, I think there is an established fact that Bitcoin price is unstable meaning that even though we decide not to buy now, the actual price we are waiting for before we can invest or buy more may not come to reality and even though it comes, we might have spent the fund meant for the investment or change our mind towards it, no doubt individuals have their purpose for buying and also sells when they feel like doing so but the fact is that Bitcoin is a long-term asset as such every Bitcoin investor should have such mindset and work towards achieving such goal.

Though is your decision, with your statement I think you are only focusing on the title of this thread but not concentrating on the method that JayJuanGEE has always been emphasized on that we can invest with easily which is DCA method to help us buy conveniently, slowly and constantly at all time irrespective of the price without waiting for the dip season which may not be realistic.

whoever is using transaction fees as an excuse for not being consistent with his DCA is only trying to create excuses for himself and not looking for solutions to that short termed problem of transaction fee. Like you've said, the majority of us sometimes leaves our funds in exchanges for weeks pending when the fees will be more convininece for us before sending it out to a more secured wallet. It's not like you're unaware that it's unsafe to leave your funds in an exchange it's just the normal process you will get to experience as long as you're doing your DCA.

Buying Bitcoin using the DCA methord doesn't come with zero limitations, thier are obvious limitation and part of it is the issue of buying at the time when transaction fee is the issue or buying when Bitcoin price is quite high. If you're only concerned about these limitations and you're not thinking of the way out of it, you're going to become a procrastinator that will keep waiting for all things to become too convenient for him before he will eventually buy. Waiting for such kind of time is what we all know can sometimes take time and when it's a bit convince for you to buy, the resource might not be available at hand.

Exchanges are not totally bad as long as you're not tempted to leave all your funds in them. In times when transaction fee might become an issue or Bitcoin price might seems too high you can just leave your asset on the exchange for the mean time.

Transaction fee shouldn't be a barrier for you to keep your regular DCA ongoing because if transaction fees are high due to ordinals spam, you can just focus only on buying regularly from an exchange and leave your bitcoin in the exchange for the main time will fees gets back to normal because it will surely come back to normal, you then transfer it to our self custody wallet. During that period that your bitcoin is in the custody of a third party does not mean that you will lose your bitcoin. It is only when you use the exchange as your personal wallet i.e keeping your bitcoin for long in there that you might loose your bitcoin.

Someone who is DCAing cannot prevent keeping his bitcoin in an exchange for some few weeks because if you are using $50 to buy bitcoin weekly and you keep on transferring it to your wallet whenever you make the purchase, in future when transaction fees are high, it will affect you because you have many small UTXO which when you want to withdraw in future might end up eating all your profit and that will become a problem because you are not benefiting from your bitcoin investment that you have pent a lot of time building and hodli for long.

This is why when you are DCAing, you should prepare for high transaction fees in future by piling up your weekly DCA amount in the exchange till it has gotten to $500 and above before you an transfer it into your self custody wallet to save your ass from using your profit to pay for high fees from your UTXO in future.

I don't agree with you here. Why would you say transaction fees do not have anything to do with accumulation, transaction fees of course affect accumulation, especially when the mempool is congested it becomes difficult for those who DCA in particular to go about it easily. The fees become high and can't be used by everyone. Imagine spending $100 as a transaction fee when your weekly DCA amount is $150 or below $100. Although there is an alternative but is not safe that way. Which is for an investor to buy Bitcoin and leave it in a non-custodial wallet. Which we know is very risky and not a safe way for our investment. Every time you want to move your Bitcoin from a non-custodial wallet to a custodial wallet there must be a fee associated to it.

This is the link to my thread which discussion regarding transactions being a problem in accumulating Bitcoin through DCA. [High transaction fees affect those who DCA]. You can get a better understanding under the comment section. Let's discuss.

Yes, it is the reason why we have such a discussion in this thread so that everyone can be able to bypass things when it becomes a problem in their investment. It doesn't matter what tool we are using to make our planning whether digital or on plane sheet. What is more important is that we have a certain target that we ought to meet while accumulating. If our present job becomes shaky then it is in our position to start looking for another time instead of waiting till we quit or stop the job. Expenses never end and sometimes some expenses come that we don't plan for and when it does, we have to be ready. There is not excused to stop accumulating Bitcoin. If we have skills, then we should reach out to more audiences to patronize us.

I got so much interested in the strategy that you plan 3-6 months ahead of the future. That is brilliant i am adopting it.

I have come across many investors who still do not know exactly how DCA investing actually works or what DCA investing actually is. I would like to clear the matter for those who have doubts about this. DCA (Dollar Cost Averaging) method is a simple and effective investment strategy for investors. 

Usually in this investment strategy investors get the opportunity to invest as they wish. It is acceptable for investors to consistently invest in this investment strategy, but it is not acceptable to sell bitcoins or their investments within a few days of investing in this method. The main objective here is to invest weekly or monthly and maintain the consistency of the investment till the time the original objective of the investor is fulfilled. The more serious the investor is about his investment, the more serious the investor is about his DCA investment. Here from a low income person to a high income person everyone gets the opportunity to invest in the same strategy so this investment strategy is considered as an effective investment strategy.

How ever any body can choose to do what he/she  chooses to do as long as Bitcoin investment is concerned. But the first best time to accumulate Bitcoin was yesterday the second best time to accumulate is now because procastination can make you not to accumulate at all. What if you are waiting for Bitcoin to dip before accumulating and what if Bitcoin didn't dip at the moment you will see that you have missed out opportunity of accumulating Bitcoin when you should done that. Bitcoin as a volatile asset might not be able to dip when you expect it but instead keep on going high, the price of Bitcoin at the moment shouldn't stop you from accumulating Bitcoin for with the DCA strategy you can be able to accumulate Bitcoin regardless of the price either weekly or monthly and hodl for a longer time.