Topic: Buy the DIP, and HODL! - page 77. (Read 121870 times)

For sure there are variations on strategies and even variations on personal circumstances, and of course if someone mostly lump sum bought bitcoin in 2015 then they could have paid anywhere between $200 and $300 per bitcoin, so let's just say that your friend got somewhere between 17 BTC and 24 BTC for his $5k.  

I still consider the lump sum investor who sat on his investment for around 9 years to be a bit of a whimpy investor without enough confidence to keep buying bitcoin, even though some kind of a relatively whimpy approach to bitcoin investing still ended up paying off quite well for him.

I would suggest that if he had $5k to initially invest into bitcoin, he may well could have also had some kind of a DCA amount that he could have also continued to have had invested into bitcoin, such as $50 per week or something like that, so if he had continued to buy $50 per week of bitcoin for the past 9 years starting from August 22,2015 until today, he would have invested an additional $23,500 and he would have accumulated an additional 10.09 BTC, which surely would have had not been a bad place to be (even an improved place without necessarily costing too much to achieve it).

Surely the first purchases of $5k had allowed for the buying of much more BTC for a lower average cost than the later DCA amounts, yet the DCA still could supplement the initial purchase and put the guy in a much stronger financial situation.. which would have had been 27 to 34 BTC for a total purchase price of right around $28,500 invested.... but yeah people make their choices regarding how much bitcoin they might consider to be enough for their own financial, psychological and/or life circumstances.


Edited  - added the below question:  
Let's say that you were in your late 20s in 2015 and now in 2024, you are in your late 30s.  Which one of the above two would you rather be?

Would you rather be the guy:

1) who spent $5k and had somewhere between 17 BTC and 24 BTC (with an average cost per BTC of between $200 and $300)

or

2) who spent $28,500 and had somewhere between 27 BTC and 34 BTC (with an average cost per BTC between $838 and $1,056)?

I would speculate that many of us would prefer to have ended up accumulating more BTC, even if our average cost per BTC might have ended up being higher within some of the scenarios as compared to other scenarios in which we had fewer BTC and also lower costs per BTC.  In the above scenario, I am suggesting ONLY the addition of $50 per week of DCA, which surely should have had been in the grasp of someone who made a choice to lump sum invest around $5k.. I am not suggesting to gamble or to go out of our way in any kind of way to put stresses on our cashflow.  Surely, I could have had come up with other scenarios in which the guy invested less than $5k lump sum and then reserved some of the money to DCA and buy on dips, yet we really don't know enough about the guy that DubemIfedigbo001n had presented to us.... including that surely it would have had been quite fortunate to start your bitcoin investment during a bottom period, which I believe most of 2015 would have subsequently been deemed to be a bottom period, even though when going through the period, there is really no way of completely knowing if the bottom is in or not.



Part of the dynamic that you describe I_Anime relates to position size too.  A person who attempts to invest in lump sum and who does not have a plan to keep buying when the BTC price falls has put himself into a position in which he had not been prepared and he had overinvested, so it seems that anyone lump summing should be prepared to continue to buy if the BTC price moves against them (meaning down), and so they should already budget the possibility of a dip into their plans... otherwise they likely are not prepared, and the only other option in order to not fit the category of "overinvested" is to just plan to hold through the dip, which could take a while to play out, even several years.. so that could be problematic for anyone who had invested into something like bitcoin but did not have enough conviction to be able to hold through (including having in mind that the investment could go to zero...and to be prepared for such in terms of the amount that had initially been invested into bitcoin).

Everyone has their own strategy when it comes to investing and I certainly appreciate the fact that everyone invests in their own strategy. If we follow others directly in the field of investment then we will never be satisfied with our investment because if one person is successful by investing in different strategy, I may not be successful by investing in the same strategy. As I think that when the market is dumping it will be a good opportunity for us to invest, other investors may not take it well that is their personal matter. But any investor irrespective of the strategy should invest in DCA strategy as it is a very effective investment strategy.  Investing in this strategy ensures continuity of investment as well as inculcates in us a belief in the investment that belief helps us reach the pinnacle of success.

Yea that's the truth, what I understand about lump sum buying is that it all depends on the amount in your custody that you can to in a particular time, an investor that bought in a lump sum may not continue that way hence he has actually gotten what he want at a particular period of time, such individual may continue accumulating with DCA method as you said.
Let's not also forget that people that buy in lump sum always do it when there is Bitcoin price dip and I believe this people utilize this opportunity to buy a large amount not necessarily because they don't make use of DCA method for gradual and steady accumulation of Bitcoin but for the fact that they can really actualize huge amount of Bitcoin at a cheap price in the said time, they decide to buy with large sum and also continue with their previous method of accumulation.
In Bitcoin investment what matters most is the ability of individuals knowing what they actually want, I think the set of people that benefits most in Bitcoin investment are those people that has channelled their mind to long-term knowing fully well that it is the goal that every bitcoiner should go for, the aim of every bitcoiners is to buy Bitcoin with good investment method that will continue making them relevant in the system as they keep holding for the long-term benefit.

Although, shitcoiners could make/invent the same debate/argument about their shitcoins, my counter-argument for THAT is - For an investment strategy of Buy the DIP/DCA, and HODL with low time preference, we need to be HODLing the asset that will actually continue to exist in 10 to 20 years. That's Bitcoin, the others in crypto are risky and MOST might start dying after 2 or 3 cycles.

To me short-term investment ain't encouraging at all the risk in it alone is too much compare to that of long-term investment. Like for instance someone that lacks the ability to be patient (because I believe short-term investors are really impatient) , and endup buying bitcoin at the peak and then a massive dip followed it , that individual won't have the mindset to keep buying and holding instead he or she will endup selling in loss because they lack the patient, thinking he or she has cut their losses.

But for those that are into long-term investment, instead of selling in loss they will continue to buy the dip , because they believe in a long run they will endup with the last laugh , so they will keep accumulating and holding , and if later on the price's endup risen (surging) they will endup with a far better profits.

Emergency funds is a necessity for every human being that can allow themselves to create that purse. It’s always life saving as, having to beacon on friends and family for aids or even going through the processes to take loans isn’t always an easy going one.

Then again, I don’t think you really do have to wait until you’ve got enough funds to invest. When is funds ever said to be enough? You get to create that enough else, it’s never enough. There is always needs and wants that you wish to satisfy with what you’ve got, it’s always up to you to create that space to accommodate investments.

The whole people might actually hoard money is the time you out to have put that money in the Bitcoin market, get some coins and leave it be in your non custodial wallet. Bitcoin doesn’t segregate on amount, you buy and be ready to hold for a long time, that works.

An investor will never make an investment based on your information, so I do not agree with such information, because the DCA method leads all investors to success and controls the price of buying Bitcoin. An investor if he invests according to DCA method he will never face crowd in any market if he holds for a long time. Both new and old investors can follow the DCA method, but success is possible if you keep it for a long time. 

Not all investors are hoarding money, especially those who have poor holders who can basically DCA Bitcoin by saving extra money from weekly or monthly expenses. So the DCA method is open to any investor using it with the highest number of successes.

It's not entirely true, lump summing is not for short term investment, it's to accumulate more stashes of Bitcoin at a time, most investors who've good finances and decide to engage in Bitcoin accumulation lump sum and then possibly follow up with DCA to further expand their portfolios.

Some investors lump sum, and are comfortable with their accumulated quantity, they send it to cold storage or decentralized wallets and starts holding for as long as they wish, some still lump sum and follow up with DCA to accumulate more, while some ignorantly buys and takes away short term profits. I still know some friends that bought little quantity and rushed to cash it in when they observed little profits and I call them Bitcoin gamblers and not investors. I've seen a friend who bought Bitcoin worth of $5k in 2015 and he has not bought any other. But he continues holding and he's happy his investment continues appreciating .

There's no criteria of people who engage in short term investment, it's just about making the right decision and having the patience and composure to hold for a long time for your investment to get very profitable.

I totally agree with you. To make money from trading we need to have right skills knowledge and plan. Investing in Bitcoin for short time is risky because its price change quickly which making it hard to make money fast. But if we hold  Bitcoin for long time we make profit.

I also like that you said planning and separating emergency money is important. We need to think carefully before investing and have some extra money set aside in case something unexpected happens. This way we can invest without worrying about losing money when we need it. Your advice is good and many of us can follow it.

You are right, indeed anyone can make a profit from trading as long as they have good skills and knowledge about trading and choosing to invest Bitcoin in the short term is highly discouraged because the price of Bitcoin is very volatile so this will be very unlikely to be able to generate profits in the short term, but it would be great if we continue to accumulate Bitcoin assets and hold them for a long time to be able to make a profit from holding these assets and we also have to keep planning before deciding to start in order to be able to run the investment properly, as you said it is very right we have to think about emergency funds so as not to interfere with the assets that we have invested when we suddenly need the funds.

I don’t think I get what you’re trying to point out with short term investment and the risk involve also owning enough money before anyone can invest using the short term strategy. Anyone can attach profit with trading but it’s never advisable an investor go into bitcoin with short term strategy which I think is right, if anyone should brag about their short term holdings you’ll definitely know an investor holding for long run will always make better profit. Secondly timing the volatility market when trying to accumulate bitcoin is wrong basically anyone can buy at any price interval and hold for long knowing bitcoin is a valuable asset, What you need to know about bitcoin short investment choice is you can’t get the profit you want within short period rather bitcoin market is volatile which brings benefits after investing for years.. Concerning emergency funds, emergency funds is like a back up funds and it’s a must  when investing for long term emergency funds is needed.

Of course there is no loss if they continue to hold bitcoin. Don't we see in the portfolio that our assets are in the form of Bitcoin, not an estimate of fiat value because we invest in Bitcoin. Logically, we continue to follow up on the investments we make, so it is not appropriate for us to measure losses when prices fall because we own Bitcoin completely, not the value of money that is our benchmark.

Of course, many of them sometimes misunderstand, but slowly they will understand the investment they are making. Because our target is to accumulate bitcoins until we are satisfied with our holdings. The price going down is quite natural because the market will never be stable because there are sellers and there are buyers.

For this reason, declines are always a good opportunity to continue accumulating bitcoin. The scenario we are buyers and we are investors and we are not traders so hold and buy until we are at the peak stage in accumulating bitcoin. The peak stage is the stage of our satisfaction as long as the target we set has been achieved.

Your points are not clear enough, there should be nothing like having a loss in Bitcoin investment when the investor is tied to holding and not selling. Those who suffer losses are the people who find confinement in trading than holding, the market is said to be volatile, if it goes upwards,  issues an increase in price value and downward which reduces the dollar value of the amount of Bitcoin held. Originally, the amount of Bitcoin held remains the same whether an upward or downward movement, that means not recording any losses. There should really be no misconception on this subject, it's all about buying and holding without the option of trading, should be a long term goal.

As long as Bitcoin investment is concerned short term isn't just like trading rather it is trading and there is always risk involved both short term or long term not only in short term that risk is involved, and you should also understand that volatility is the nature of Bitcoin that is why it is important to always have a long term perspective when it comes to Bitcoin investment.
There is also no need reinvesting when you can actually hodl your purchase Bitcoin for long and still keep on accumulating, with your DCA strategy you can accumulate more Bitcoin and HODL for long between 4-10 and above provided your discretionary income is intact.

The truth is nobody is immune to volatility. Volatility simply mean the rate/speed at which an asset changes in prices. These changes in prices could be upward or downward. If we say certain investors are immune to volatility that means the investors asset will remain in a constant or stable state, when prices are moving either upward or downward. And we all know that bitcoin is a highly volatile asset, so everyone who invest in bitcoin will definitely experience volatility in his asset at one point or another. And without volatility bitcoin investment will not be profitable. Volatility doesn't mean downward trend alone. Prices moving upward trend and downward trends makes up the volatility level of an asset.

You should not dive on something risky if you don't have some safety net(Emergency Funds) that can save your ass in crucial times. That's why aside for paying attention for building up your portfolio we also need to separate some amount intended for this funding's. We don't need to put one time big amount for this if they are worried that they might lack of funds to use for their investment. Since they can put some extra amount which they think enough to add up some money intended for this used.

Also don't used your emergency fund to buy anything you want even bitcoin. Just let it sit there and don't think about touching it if you think you extra funds, since once you touch that money then you might think about its fine to use it and you will just pay it when you earn which is totally wrong mindset or action to do. Just separate funds intended to last for 3 to 6 months and I think you will be fine with that.

Wind_FURY you are right i know for sure Bitcoin will make history and i really want to be part of that history, i have a job and I'm okay with my pay, so i started investing in Bitcoin because i feel this will be the best gift i will give my unborn children when I'm about living this world, Bitcoin will hit a price that will surprise everyone in the world and i don't want to regret.
Bitcoin is one of the best investment right now in the world and should be taken seriously, 10 years ago if someone tells me Bitcoin will be this great i will have a little doubt but look at how great Bitcoin is today, in the next 20 to 30 years everyone constantly accumulating and holding Bitcoin will all become very successful.
I pray we don't met problems or emergency that will eat of our backup funds and still make us dip hands into our Bitcoin investment, Amen.

Emergency Fund Requirement is a very important chapter for every investor as it is your responsibility to maintain your investment while it is running. Short term trading is a form of gambling. Long-term Bitcoin investing recommends you keep a large emergency fund to cover your household's daily expenses for at least 6 months or more. Growing your emergency fund depends on how long your investments last.
Emergency fund is not only necessary for long term investment but also for every investment. This is because if you invest in Bitcoin and its value goes into a further down trend right away, you may face more losses. If you have an extra emergency fund, you can reduce the UP by creating opportunities to buy more bitcoins in a down trend which can increase bitcoin holdings in the future.

Are you a trader? Because you sounded just like one because I don't no the reason why volatility will make you lose your Bitcoin investment and how reinvesting again will bring you back the profit from it, don't you think your statement is a bit unclear?, however I will like to clarify you about volatility concerning your investment, so actually don't feel that is only those who has invested a huge capitals are able to withstand volatility on Bitcoin investment because it doesn't work that way, as long as you are a holder you are immune to volatility, so no matter how small you are accumulating Bitcoin volatility will not destroy your investment because even if the price drops it will still bounce back and your investment remains intact so don't feel that there is any negative impact volatility can make into your Bitcoin investment.

Don't be the person who will be looking back in time in 15 - 20 years and remember that you SOLD one of the fastest surging assets in modern history. We plebs should put as much Bitcoin in - cold-storage - as we possibly can, then FORGET about them. Purchase more using DCA and/or purchase more on large DIPs. I'm very confident you'll be telling a very good success story for your future children.