Topic: Buy the DIP, and HODL! - page 78. (Read 79835 times)

The aim of being prepared to allocate funds for Bitcoin investment is so that every investor can be comfortable enough in investing and not be like someone who is pressed for time because they have to keep thinking about their lack of capital. Apart from that, any ideas that each investor will use are also aimed at gaining profits that previously might not have been possible with just a small amount of capital. So this really needs to be understood very well for smooth investment and also for smooth accumulation of more Bitcoin when the price decline starts to occur.

That's normal there's someone they trust introduce those shitcoin in wrong way and they make those newbie believe that its more better to invest in this token since they can easily earn money here which we know far from reality. What at least we can do for those guys is to educate them about possible risk they are going and try to make them understand that there's no other coin that have more potential and redirect them to invest on bitcoin if they want a investment for long term. For sure these people will be evasive because they can't digest immediately those information you told to them. But if you are consistent and show some proof for sure their decision will be change and they go for bitcoin for long term purposes.

Sure you are right because you can't in anyway compare bitcoin to any of these shitcoins most of this shitcoins always ends up been a scam because I have witnessed one though I'm not a victim but in the crypto market; is a place where people come with hopes of finding wealth beyond their dreams.............................................

There is no better example of this than the hype surrounding meme tokens. Everyone loves having a chance to become wealthy with little to no investment. That is why the lottery is so successful. In recent years we have seen countless meme coins go from being worth next to nothing to having a substantial market cap.

Projects such as , Shiba Inu, Floki, Baby Doge, IRON 🧇 and the list goes on. No matter how much we would like to deny it, the truth is that these were the no better  performers during the last cycle by all of this shitcoins...................................

The two factors that brought the most amount of attention to crypo from the mainstream were meme coins and NFTs.

again bitcoin has come to be stand firm all this years making it way out from all this shitcoins you will buy waiting for miracle to happen one day for you to earn much from them my dear comrade I will advise us not venture our money in any of this shitcoins roaming everyday in the crypto market or depending on any of them

Some people are so adamant about this shit coins of a thing. No matter how you advise them to leave shitcoins and turn their investments to bitcoin they won't agree until they run into troubles, by losing their funds. Some of them usually draw this line because they might have seen someone who got lucky with one shitcoins investment after losing several times and finally made small money. so those who are following their footsteps won't ever listen when you are telling them to leave shitcoins and come to bitcoin where there is life and more peace of mind, they won't ever hear. While I attribute some of their actions to ignorance.

Yeah I gat this point correctly,  that is having a certain level of preparedness in terms well planned funds allocation and being much ready in taking the necessary measure as regards to balancing up with your investment in terms of when the price is goes down  and when  the price goes up in order to ensure you are accumulating good size of Bitcoin in your portfolio and seeing that your overall is in profits, that is true when an idea investor takes an appropriate measures in his accumulation process he has the rest of mind needed to grow his asset.

this is absolutely true.
At every stage of your Bitcoin accumulation journey, there are major factors that could stand to bother you.

At the start, it's more of sorting out the right plan to work with which is basically a function of  your financial strength and you might just need to decide if you're financially strong enough to buy in bulk or settle with the DCA method and when doing this, there is really no need to bother about any sort of emotional or psychological whatever. You have to face the visible fact that your finance is either strong enough to buy in bulk or isn't.

At the point when you've accumulated a good amount of satoshis in your portfolio and then the market is bullish and you're also at a good profit, this is when you've got to work on your emotional and psychological prowess that will help you become disciplined and patient enough to building a good portfolio. It's not always an easy thing to keep your emotions in check when you're in profit and what some persons would normally do is to sell out some of there holding and reinvest it whenever there is a DIP. But the issue has always been if the market will go as DIP as they would normally expect it to and the obvious answer is , even if it doesn't, as long as you're buying to hold for much longer period of time, you're definitely going to be in profit.

I can see you're now getting the gist , at first try and arrange your post quoting properly, that why I told that most people use shit Coin for short term profit during trading cause of the risk, yeah there people who are making from trading and all that but before getting to that stage , you don't want to imagine the Shit you going to pass through, and it take alot of practicing and skills to get there. But in investing you just need basic knowledge and you good to go with your accumulation. Like when I was still into trading due to the losses I didn't have the guts to recommend trading To my friends but I can gladly recommend them into holding of bitcoin and doing so, I don't have to stress my self to say too much , bitcoin growth as already made it obvious on how amazing bitcoin is . So if you still insist in trading I would advice you to trade wisely and as trading try accumulating more bitcoin ( for holding not trading) and don't let your trading affect your bitcoin accummulation.

I think that if you are able to put your finances in a comfortable place, then you likely do not need as much discipline regarding the psychology, and the psychology will follow from having your finances in good order, and also psychology follows when you have built up a good sized BTC stash and you are in profits.. but until you get to that point, your building of your financial systems should be helpful in terms of giving you peace of mind that strengthens your psychology.. since you will more likely have systems in place in which you are prepared for the BTC price to go up or to go down or to go sideways.

Thanks alot for the clarity. Well concerning this part I quoted I think the method (spreading out buying )  recommended by you concerning dip purchases would be better and more effective. If am not mistaken this when one purchases the dip without going all out at once like lump summing. Instead buying with some certain percent of your reserved funds first during the dip , and if the market dip further one can also purchase the dip again with some percentage of their reserved funds than just going all at once but buy spreading your purchasing of the dip.
you are right, as an new investors investing should be out of the picture first , how to accumulate more quantities would be your focus now,  disciplining oneself to have a good psychology, inorder to build a good portfolio .

It seems to me that some of the members are handling their extra funds in the right kinds of ways, but sometimes we are mixing up the categories and then maybe arguing semantics (which are just the meanings of different words), yet some other times, members seem to have no sense in regards to how much of a cash cushion that they might need to have if they start spending from their extra cash, and if they end up experiencing some kind of emergency, then they end up in more trouble because they end up having to treat their bitcoin as an emergency fund, which surely should be what anyone investing should be trying to avoid.

If we build up our investment in bitcoin, then we have more of a responsibility to have organized finances (and psychology too) that will prevent us from ever having to cash into our bitcoin unless it was on conditions that we had already established for ourselves, and if we are a new investor, it is more likely that we would be waiting many years.. maybe even 4-10 years or longer, just to build up our BTC funds before we might start to consider strategies that might involve selling some of our BTC.

So, yeah there are different kinds of classifications of funds, but then there are also differing ways that we might be triggered to buy bitcoin, whether it is a regular DCA, or buying on dip or lump sum... .. and lump sum and buying on the dip are not necessarily the same thing... I don't even necessarily recommend that newer BTC accumulators hold back large amounts to buy on dips, but instead maybe they have some money that is set aside for various price points, such as if you have $2k in reserves then maybe you would have $100 for every $1,500 that the BTC price drops which would be 20 BTC buy orders all the way down to $38k or something like that... .. so yeah you don''t know that if the BTC price is going to dip but you have some money available to buy at various stages if it were to dip... .. but then maybe it does not make any sense to hold back that much money for buying on dips, especially for a relatively new bitcoin investor..

So let's say that a guy had already been buying $100 per week of BTC pretty regularly for more than a year (since the beginning of 2023) and he had invested $6,300 and accumulated right around 0.21 BTC so far, and he is not in a bad place right now, but he still feels like he has not accumulated enough BTC, so he continues to buy $100 per week of BTC, and that pretty much is a high  portion of his extra income.

Yet, for some reason.. out of the blue, he receives a payment of $2,400 extra that he was not expecting, and so maybe other parts of his financial life is already sufficiently in order, he has around 4 months of an emergency fund and he has some reserves already in place for buying on dips, so then he has to decide what is he going to do with that extra $2,400 that is in his budget?  He could decide to front load invest 66% of it (around $1,584) into bitcoin, and then add the other 33% ($816) towards buying on dips and/or DCA..... or maybe he just decides to divide it up 50%/50%.. or maybe he decides to just put 1/3 in each of the categories since he is not as convinced that the BTC price is going to go up from here.. so sometimes those decisions are made partially based on which way a guy thinks the BTC price is more likely to go and/or if he feels that he already is sufficiently prepared for buying on dips or if he believes that he is lacking in one area or another.. he has to weigh what the impact of his decision on the remainder of his balances.. which surely we would think he wants to be somewhat aggressive in his bitcoin accumulation without overdoing it.. yet at the same time, there is no perfectly correct answer about what he should do and align the balances of his funds.  

Lump summing right away would be front-loading the investment, and saving it without investing (and maybe preparing for a dip) would be lump summing on dips, but again, I personally tend to think that it is better to spread out your buying on dip purchases, but if you are more bearish than me then maybe you spread those buy orders to lower amounts and hope that you are not left holding a bunch of fiat that you could have had otherwise bought bitcoin with.. again, there is no perfect answer.

@Obim34 explained the difference between emergency funds and reserve funds well.. yet I would just add that reserve funds could be designated for buying BTC on dips too... so there could be general reserve funds that are not exactly specified for what they will be spent, even though there could be a variety of possibilities, including going on a date or out to dinner or some kind of extra expense that may or may not come about, or there could be specifically designated kinds of reserve funds, and yeah, sometimes people will keep certain categories of their reserve funds in separate accounts so that they the do not mix them up or that they do not accidentally spend into them.. which may or may not be necessary since you could merely classify funds within one account, but sometimes any of us can end up being forgetful and make mistakes if we don't force ourselves to actually separate some of our funds.... which, for example, might even include presetting some BTC buy orders on exchanges with some of your funds so that if the BTC price drops to such levels in which your buy orders are preset, then those funds will be used for buying BTC on the dip.. but you could end up cancelling those orders at any time before they fill if you change your mind or you want to redesignate those funds for something else.

You getting it now complicated, kindly rephrase and draft out what you are  trying to put out. Emergency funds are money kept aside for unforseen circumstances that may arise, maybe health issues, emergency family bills or one thing that we may not probably think of, it just happens unexpectedly.  Reserve funds are left over funds aside every other necessary expenses being carried out, the essence of holding reserve funds could have already been determined unlike emergency funds.

I do not encourage going off the exert topic and we should already be aware not comparing Bitcoin to Shitcoin, it's useless and a waste of resourceful time.

     Shit coins shouldn't really be compared to bitcoin, and that's incorrect. It seems like this: do we think that a lawyer will be allowed to debate with a non-lawyer? He won't agree because he's not at the same level as the one who can debate, right? It seems that in boxing, the person who will fight him will be beaten immediately, even if he has not punched yet.

     Same with Bitcoin vs. Shit coins. The problem with others is that even those that are not shit coins are said to be shit coins. It seems that they are all in, which is not correct either; instead, identify which are the shit coins that are being said and not all of them.

This is damn impacting , breaking down in a way even some one new to this space would get it once . Now those that normally mistake emergency funds for reserve would get the difference now. Where most people missed it is that whenever there's decrease in price one would take as an opportunity of using lump-sum strategy to buy the dip using their emergency funds instead of having a reserve funds for such occasion. Which may lead to one not able to meetup with his expenses and endup developing the habit of tampering with their investment, I've already Started reserving some funds already, but I always make my emergency funds more without letting it affect my DCAing .

   Investing on shitcoins is another means of waisting money on something that might not profit anything to the investors.   
   Most atimes, the intention and the longevity of some shitcoins is to make other investors to keep accumulating them because at that time they might be thinking that the shitcoins will last more like the Etherum.
    But it's not advised to invest on shitcoins because of the way it pumps, many reasons why it pumps are to draw the hart of many investors to start buy them.
   Again, there are still investors that do converts their Bitcoin to some altcoins because they see some fast bumps on the altcoins.
   What I would add is that, no matter how much an altcoin is bumping it can never beats Bitcoin in anyway and I believes they all know that but they still makes the mistakes.
   It's true that it's no more call investment but it's called gambling.
   I have already said it even before now that any investor that's looking for a quick way to make profits with crypto currencies, wether Bitcoin or altcoins is trying to refer Bitcoin as a means of gambling.
   I already believes that one particular things can never work for you the whole time. If it works today, tomorrow might be a very different thing, either in difficult ways or on an easy way.
   One main reason why gamblers funds it very difficult to limits themselves from gambling is because they are addicted to it, even if they are not addicted now but they are finding it very very difficult to limit them selfs from gambling that means they are gradually becoming addicted to it.
   However, I see no reason why a bitcoiner will put their eyed on shitcoins. Bitcoin and shitcoins can't be compared and they all know that.
   IMO, as many people have missed the dip from Bitcoin they thinks it will never come back soon that's why they try to lookout for shitcoins around the conners to put their money into.
   Some, as they didn't buy Bitcoin when it was below $20,000 they don't want to miss other shitcoins that below $100 because out of misconceptions they believes sime of those shitcoins might get to the stage Bitcoin is today ^{which is a lie}

I don't know if I can help you because you have to figure out some of these details yourself because I don't know your details.

One of the main ideas of buying BTC regularly by using DCA, Lump sum investing and buying the dip, you should be using your disposable/discretionary income.

So if you have an income that is between $600 and $2k per month (and maybe most of the time it is $1,200), and your monthly expenses are $1k per month, then most of the time, you only have $200 left over for investing, which is your disposable/discretionary income and you can use that for buying BTC.

However, some months you have lower income and some months you have higher income, so you have to build up your reserves and your emergency fund and to manage a good cashflow float in order to be able to continue to buy bitcoin when your income might be low or at least not have to sell any bitcoin for 10 years or more.

Emergency funds would not be used to buy bitcoin, but they are available in case your income dries up or your expenses out pace your income.  The more that you have investments, the more that you need emergency funds that are in cash and 3-6 months of your expenses.. so that you are not using your investments as your emergency funds.

Reserve funds can be built up for buying on dips, and you can already set orders for buying on dips - perhaps you could have orders for every $2k drop down to the $200 WMA.. and the 200-WMA is currently just below $32k.  You have to figure out how to allocate between your lump sum, DCA and buying on dips based on your budget, which is part of the reason to not be fucking around with shitcoins because it can take quite a bit of capital just to have a solid bitcoin buying approach and to protect yourself from getting reckt.

So, yeah, if you do not have good financial structure, then you could be forced to sell BTC at at time that is not of your own choosing when you should have had been ongoingly buying.. and buying in such a way that you don't end up recking yourself... whether you have to start with $10 per week rather than $100 per week in order that you have your other financial matters in order... and the better that you have an emergency fund and reserves, then the more aggressive you could probably be in terms of how much of your income you are allocating to bitcoin whether in a DCA manner or lump sum investing or buying on dips.

DCA is the better of any of the accumulation methods because it allows you to pace your buys, but if you are able to have sum lump sum come available, then you could consider the lump sum in each of the three categories.  Let's say that you just found out that you got a $2,400 bonus, and so all of that money could be dedicated towards buying BTC, but if you already have an income that you are buying regularly with DCA, then you may or may not DCA with the bonus money and maybe you just divide it into lump sum buying right away and the other half is buying on dips.  You have to figure out the allocations and which ones make the most sense to you... including what you think about BTC as compared with other possible investment (not referring to shitcoins) is only one of the 9 factors to consider and to get in order.

If the BTC price is continuing to move up then usually front-loading your investment helps to prepare you for up, but usually you still might have to have some money in reserves if the BTC price moves against you, including going down.

And, yeah when it goes down it might keep going down, so you don't necessarily know how much money to keep in reserves in order to keep buying as the price is going down... no one can tell you.. you have to figure out for yourself where and how you want to set and/or execute your buy orders if you are going to try to employ buying on dip techniques.

Most likely if you don't know what the fuck you are doing, then you should just start out establishing a budget for yourself regarding how much bitcoin to buy every week (or better said how many dollars that you have available for buying bitcoin every week) and then just do that, which is DCA.. and maybe it does not matter how much the BTC costs at the time that you buy it since your goal should be to just keep buying for the next 4-10 years or more while you might figure out at some point along the way if you might employ some other strategies from time to time... and ultimately you are responsible for any BTC accumulation strategy that you employ or don't employ, so don't come crying to me if you believe that you followed what I suggested and you end up feeling like you lost money because of your choices in your BTC accumulation direction.


Emergency funds are not for buying BTC.. it is to use in case your income dries up or your expenses increase to higher than your income.. so that you do not have to sell any of your BTC...

You can hold money in reserves for buying BTC on dips and also for buying when your income fluctuates.  There are a lot of strategies to structure these kinds of matters, yet usually the better of strategies is to ongoingly buy BTC on a regular basis using DCA, and yeah you can supplement your strategy with the other techniques, but you might not want to overly think the matter, especially if you are in your early stages of BTC accumulation, you likely should just be regularly accumulating, but you still have to figure for yourself how much of a budget you can make for regular buying and if you want to hold some of your money in reserves for buying on dips.

mate you are on the right track , just as they say those with less cash flow are always greedy when come to trading. With the crazy mindset of getting rich pretty quick which will cause them to engage with trading with leverages ( recklessly) and endup getting rekt. Wasting the little funds they had , instead of making good use of that funds by investing in Bitcoin. For instance like the time I started trading someone else started his bitcoin accumulation journey with the plan of holding for long . So compare such person to me that  lose alot during trading, so if the individual was patient enough to hold till now imagine the profit he as made now in his portfolio . One thing we should know something that have the potential to make you rich overnight ( like gambling funds) also has the potential to make you poor overnight, due to the risks attached to It but when you actually investing in Bitcoin, and you know that bitcoin ain't a get rich quick scheme , but when you're consistent with your accumulation and same time holding you would be able to secure a mature portfolio that will yield good profit in a long run.

Generally Emergency funds should be reserved  for what will call "emergency" or let's  urgent indisputable needs but if there's  any chance to use out of the emergency  fund to boost your investment  when there's a dip , then that's  a great idea.
You shouldn't  wait for a specific percentage  to buy dips , let's  say you are already using the DCA strategy of buying , dips might come before your DCA strategy so if there's  any emergency funds available  you can  invest out of it so you won't  miss the dip , if you were able to meet up with  your DCA in a dip and you feel like taking the opportunity  then you can  still use out of your emergency  fund .
Sometimes  Dip could only  be for a short  period  just to correct price so  waiting  for a percentage dip might not be necessary but let's here the thought of JJG on this

I wonder why you would even consider or compare Shitcoins with Bitcoin, however one thing you most understand is that Bitcoin is not a get rich quick investment because like every other normal business investment it has to do with long term process with a lot of patients and consistency and at the end you will see the reason why is good to hold Bitcoin, so I would strongly advise that if your main purpose of investment is the possible profits you could get within a certain period of time you should have a really deep thoughts about it because the possibility of getting what you want on Bitcoin within the certain period may likely not going to be certain. However if you check very well the only people who still choose Shitcoins are people whom there only goal is to become rich overnight without knowing that investing on Shitcoins is like a gambling that you are not sure of what the outcome will be, so it surprises me to see that most people are preferring Shitcoins when they know that so many people has falling a victim of Shitcoins, well my only advice is that asides from the possible profits we may realize in Bitcoin after holding it remains the most trusted coin and can never be compared with any other coins, so in terms of investment Bitcoin is the best.

Let's focus here first, I don't understand your explanation a little. Sorry for asking too many questions, because this is for my future self-improvement. and maybe others can also learn from my experience and be better at investing in bitcoin.


I actually don't panic when buying bitcoin, especially with DCA because I think I don't know how the market is. but you also said there must be an emergency or reserve fund that can be used to buy bitcoin when the price drops.
This decrease, when it exceeds what percentage? because if FOMO can happen every time the market is red, it could mean that emergency funds will come out continuously to increase bitcoin holdings.