Topic: Buy the DIP, and HODL! - page 78. (Read 121870 times)

JJG I totally agree with you, you have explained very well that emergency fund is essential not only for long term investors but also for traders. The main purpose of an emergency fund is to provide us with security in the event of a financial crisis or unexpected situation, and this emergency fund should be kept completely separate from our investment or trading accounts. Having an emergency fund is crucial also for trader, especially for those who keep a large portion of their capital locked up in their trading accounts. Because in times of danger or unexpected situations, if he doesn't have an emergency fund, he will have Compulsory to use his trading account money, and as a result, he may suffer a lot of losses.

So whether investing or trading, they must have a strong cash flow system and emergency fund. So that it does not affect their investment and trading during emergency.

You have to accept that whatever investment you make, whether short-term or long-term, involves risk. Risk levels are low and high. However, when it comes to investing in Bitcoin, we prefer long-term investments over short-term investments. Investors who invest for a short period buy a large amount of Bitcoin at once. Most of us are investors who don't have extra funds so they opt for long-term investments. Because in this long-term investment, we can buy bitcoins and deposit them in the investment portfolio at any time using funds according to our ability.

Moreover, long-term investment has a higher chance of profit because investors make their investment long-term, some four years, six years even many who prolong their investment up to 10 years. Bitcoins fall in price, but recover by rising again. As we've seen Bitcoin's price rise from around $40,000 to an all-time high this year. So those who patiently hold their investments for long term reach the pinnacle of success.

Short term investing is like trading, but there is risk involved in investing for a short period of time. However, having funds is the most important thing when it comes to investing. If you don't have funds, you can't invest. If you have enough funds, you can invest some amount from there. When you invest you may face loss due to volatility in the market but if you have funds at that time then you can reinvest and get profit from it. So I also think it is very important to have an emergency fund to sustain the investment and an investor has a high expectation of profit in it. But long term investment is best as compared to short term placement and profit is easy here.

That is confusing to suggest that an emergency fund is only used for long term investors, especially since emergency fund can be useful for a lot of people and especially people locking up their funds for certain amounts of time and in certain kinds of ways.  

Sure, I don't want to promote trading in this thread, yet there can be circumstances in which traders lock up decent amounts of capital in a trade and just in their trading accounts, and so their intention would be that the trading account money is not going to be available until some kind of anticipated scenarios plays out so that they can close their trades.. and so they should have back up and emergency funds that are separate from the funds in their trading accounts, so in that regard, if the price moves against them after they entered some trades they might be locked in various assets and short of cash, and even if they have cash in their trading account, that cash is already allocated to potential trades, so they are not supposed to be dipping in that for non-trade reasons.  Of course, they might not have strict rules and they might be sloppy, but if they are trying to be ready for anything, they have to try to set their accounts up in ways that allow them to be ready for anything within their baliwick.

And surely an emergency or some short-fall in their various expenses should not be enough of a reason to close any of their trades or to dip into their trading account, but if they have an emergency and they have no other funds available, they might have to dip into their trading account funds and to take money from trades that they would rather not close, so there is potential that they would be closing trades that would be at some time that is not completely of their own choosing merely because they did not have an emergency fund and an emergency ended up happening...   They might also end up dipping into cash that is in their trading account that is supposed to be separate from their expenses and any other fluctuations in their cashflow that should be covered by their float and or their reserve funds.

Traders will frequently treat their whole trading account as a kind of investment (since it is a kind of working capital) so they will keep it separate from their other living expense funds, so traders (especially the responsible ones) also need an emergency fund, various back up funds, reserves and float, in similar kinds of ways as long term bitcoin investors should be doing..but yeah, of course, we are not talking about traders in this thread.. even though having solid and strong cash flow management can help a lot of people in regards to a lot of financial surprises that might come up in their financial life.. and perhaps the maintenance of strong cashflow management also contributes to fewer situations rising to the level of becoming an emergency.

Short term investment is just like trading and that does not require much of emergency funds because if you understand what emergency fund is, you will know it is best suitable for long term investment because it serve as a protection of the investment itself because that is what the investor resort to when there is issues that need urgent attention which was not accounted for or expected to happen. If someone buy bitcoin and hoping to sell when price rises a little and he see reasonable profits, I do not see the need to keep emergency funds. Therefore, emergency fund is indeed crusial to sustain the investment but it is mainly for long term investment.

Putting all your salary into bitcoin is insane and that should not be encouraged but discouraged by anyone that wants to do so. Your monthly income has to be flowing every month in order to enjoy your investment in bitcoin. If you’ve already used your monthly income for all the necessary things you need for the month and also save some for your emergency needs, you can now put some into your Bitcoin investment while making sure that the monthly flow of income is still intact and coming on a monthly basis.

 Emergency cannot be foresee or curtailed when it has happened, so you need to have many options to rely on when you happen to find yourself in an emergency situation and not even think of using your bitcoin savings to solve the problem. Emergency funds saved after collecting your monthly salary can be of use in term of emergency and when your monthly income is still flowing, you can also take from their to solve the problem without even touching your investment. If for that month you can’t add more to your savings because of th emergency that arose, you can always continue the following month, the point is not to touch from the bitcoin investment already in the portfolio so that you’re not shortfall or drawback and be at loss again.

Emergency funds is crucial for a well sustained investment be it short or long term. No matter how short it may look like in between those space the investor can be faced with extreme life expenses that requires immediate attention and emergency funds should be rightly available to solve such problems, mostly at the early stages of accumulating Bitcoin. One other thing to clear off is that our emergency funds is separate from money kept aside to carry out living expenditures, so it is not right to invest all we have into Bitcoin all for the sake of getting out of it a bigger profits.

Experience is applied during the process of accumulating, it cannot be reversed when already put into action by investing more than should have, getting out of it with the only option is to sell too soon which is not recommended, so to avoid this from happening, investors are advised to invest more deligently according to availability of funds.

Newbie or no newbie, it is not advisable to invest all your money in bitcoin. No matter how much you think is in your emergency funds account. It is advisable to always keep your sources of income open even though you have kept emergency funds aside. Because you don't know the kind of emergencies that might come up tomorrow. It could be an emergency that will consume all your emergency funds at once. So at that time you have invested all your money in bitcoin and the emergency funds you have kept cannot solve the problem, at that point what will you do? You will  definitely go to your investment. But if you had kept your source of income flowing, you won't be in that situation.

If you invest all your money in bitcoin to only depend on your emergency funds, equally mean that you have a short term hold mentality. Because you are just waiting for a slight upward trend to sell off.

This is the right decision, because I have invested I express how satisfied I am with this investment and I will advise the newbies so that they do not lose the investment. Because newbies are very scared to start investing, so for them I say Bitcoin is very safe to invest. For example, the banks in the country where I live are very risky, all the people who have no money to bank have defaulted on their loans and the banks have disappeared. 

Now there is the view that there is only account but no money, that's why Bitcoin is the safest because when I invest my money it's the safest for me and I can see it. Therefore, it is much safer to buy bitcoins by DCA method than keeping money in the bank, if you collect bitcoins for a long time, your money will increase by two to three times from here. 

But there's not as much risk as banks, so I think there's no doubt that if newbies want to invest in Bitcoin, they can. By investing Bitcoin in DCA method and keeping it for a long time, your money will definitely increase several times.

There's no way you/we can control what other investors wants to do with their Bitcoin, ours is to share the right information guide to helping newbies into Bitcoin investment,  whereas the major thing is if you as an individual investor has got to understand the right things to do with your Bitcoin investment and never worry about what others do with theirs, we can share the information about how people can survive in the market and what to do when the market dips down, while leaving them to do their choice. The bottom line is understanding your Bitcoin journey first, wether it's for short term, mid- term and long term goal, while taking the opportunity and DCAing in the dipping market.

If people would just see some good opportunity about those dumps which is normally happen in the market then provably we can see less negative sentiments posted online. But we cannot please people to be positive in those incident that's why I don't waste my time comforting people that everything is fine and there's good opportunity await for them if they just believe. What I usually do is to focus on my investment since I think its better to spend more energy on your own development rather than paying attention to those people who didn't aim for growth and just want to have a quick profit.

DCA strategy is always good at this whatever situation happen since we could see a nice price recovery happened recently on bitcoin then provably lots of people who continue their accumulating journey despite of whatever happen recently on bitcoin are happy to see some good results, especially to the current situation happened in this coin.

You are right when someone invest at the dump and then sooner or later the price rises the person will be on profit definitely and if the person sells the..., He or she will be seen as a trader because you buy and sell within a short period of time. You said the DCA investors don't take the temporary dumping of the market very serious, I disagree with you there's no investor that doesn't take dumping very serious unless they don't have enough funds to take advantage. Some investors who uses the DCA method always double there funds to accumulate more Bitcoin each time there is a dumping since DCA is a gradual process and will take a lot of time to accumulate enough..., And after the dumping they re-strategize to their normal way of DCAing ( using what they always use to accumulate) same thing applicable to other investors with different strategy of accumulating Bitcoin.

 I don't understand what you mean by thorough understanding, apart from knowing how to invest and how to manage your investment, when you have to invest and when not to invest because there a lot of people that don't know when to invest, what I mean is that there are people who have there strategy or method of investing and then sometimes they see it as compulsory to invest following there method and that is why they invest what they are  suppose to use for other things and later went back to touch their..., I don't think there's any other knowledge one need and if there's you should please let me know.

When the market is dumping, we have to treat this dumping as an investment opportunity. Because if the price of Bitcoin dumps and rises again and we can invest in Bitcoin during that dumping and if the price of Bitcoin pumps again after our investment, then we will already get profit. Basically those who invest in the DCA investment strategy do not take the temporary dumping of the market very seriously, rather they continue to invest in the market consistently. The biggest advantage of consistent investing is that there is no chance of missing the opportunity even if the market position goes down or goes up. Those who have a thorough understanding of investing and have an understanding of DCA investment strategy must adopt DCA strategy in their investments.

Yeah, I believe illiteracy is one of the main reasons people engage wrongly in their Bitcoin investment journey. Not only that this practice rids them of their emergency fund and increase the possibilities of preying on their investments when emergencies arise.

They can even record a significant loss at the time they prey on their investments within a short time and those immediate losses can discourage the new investor to continue accumulating. They might end up panic selling their investments and then join those calling Bitcoin a gamble or scam while it's their investments attitude that jeopardized the profitability of their Bitcoin investment.

The emotional implication of putting in all your money without backups can be exhilarating, especially if the market moves sharply lower than your purchase price, the investor would be obviously restless since he threw his whole livelihood into the investment. That's why it's better to use your discretionary income for your investment, do you can be at peace with price volatility and be able sustain your investment for a longer time while increasing your portfolio periodically using DCA and buying the dip where applicable.

Sometimes I wonder who gives these new investors the 100%  guarantee on their Bitcoin investments that makes them swiftly throw in all their eggs into one basket without recovery plans, it's good when you don't have just one investment entity, you can even diversify slightly to increase the security on your investments. While having good emergency funding to handle any that comes your way

Can't agree with you. It is important to have basic knowledge before starting investment. That is, if you have enough knowledge, you will be able to start investing. But the knowledge you mention doesn't seem to refer to elementary knowledge. After starting investment you need to acquire proper knowledge so that you do not mismanage your investment.


I don't think there is any need for the investor to test the market in the DCA method. Market monitoring is essential if you trade or gamble. Here you sound like a trader. When you plan to invest, buy when it makes sense. You don't need to monitor the market. If able to invest, buy and hold regularly without looking at the market.

The bitcoin is not going bearish... you need to learn how to talk.

The mere fact that there has been a correction does not mean that the BTC market has gone bearish.

If you DCA you might not give too many shits about BTC price moves, .. but if you are getting worked up about some kind of trading opportunity, then maybe you might want to pay attention to whether you might get some kind of a discount, but still seems like a lot of noise in terms of considering anyone who might be ongoingly accumulating bitcoin, especially if he might be in relatively early stages of BTC accumulation.

According to your forum registration, you have nearly 3 years of being registered on the forum, so if you were able to front-load your bitcoin investment, then maybe you can try to be strategic in regards to buying dips, otherwise, it seems difficult to presume that you would want to stop accumulating bitcoin.. even though you don't seem to know the difference between a correction and a bear market - even though you would have had entered bitcoin in a bear market, even though many of us did not realize that we were in a bear market until around May-ish of 2022.. ..so if you were paying attention, then you should realize that there is a difference between a correction and a bear market even though surely the bear market is a label that tends to be a lagging indicator by the time we actually would be able to know that we might transfer from our current bull market into a bear market, and by the way, it is not possible to be in both a bull market and a bear market at the same time.  That would be retarded... so hopefully you can appreciate the difference.


Most likely there is nothing wrong with anyone deciding to engage in a heavy lump sum investment of bitcoin at the very beginning, yet surely anyone who engages in a heavy lump sum in the beginning may well nee dto be prepared to follow up by either DCA and/or buying on the dip, especially if the BTC price runs against them, yet even if the BTC price runs against them, they likely would still end up o.k even if they don't do anything as long as they have a 4-10 year investment timeline, yet surely I personally would want to be prepared to continue to buy bitcoin if the BTC price goes lower than my original purchase price, yet these are surely discretionary determinations that are completely optional in terms of there not being any particular correct answer.  Many times, people do not have very many options to start out with large lum sum investing into bitcoin, so the more common situation would be that DCA would be the most practical of likely techniques for most people who are in their earliest stages of attempting to establish a BTC position, even if they also might be trying to heavily front load their BTC investments within a DCA kind of an approach.

Otherwise, I agree with your assertion, Dailyscript, that various forms of back up funds, emergency and otherwise can still be quite helpful to anyone, even if they might be attempting to approach bitcoin on a short term basis or even attempting to employ trading techniques, the emergency fund can still help to provide more options in case some emergencies might end up happening during the period that the person is trying to trade bitcoin or to play some kind of BTC price wave that might not end up playing out as expected.

If you are completely new to bitcoin investing then you must know and understand enough about bitcoin before investing in bitcoin and then you need to invest in bitcoin. You can get a lot of information about Bitcoin in the early stages on social media. But if you don't know how to invest by looking at social media investment, you may face losses. So you must invest with considerable amount of awareness when it comes to investing in Bitcoin. Many new investors lose patience very soon they are too hasty to invest due to which they face more losses so without losing patience we always have to invest with a long term plan and check the market if we can invest in this way then surely we can achieve bitcoin success which is  It will make us more interested in investing.

Then if surely there is such a person, I guess the person is insane/unreasonable or doesn't know the principles that guide investment strategy. And I will tell you that such a person will not do better in bitcoin investment. He will simply buy aggressively so quickly and sell his bitcoin holding. If you have such person as a friend I think you should inform him about the impending danger of buying agresively when they don't plan to follow the normal procedure which is buying bitcoin through DCA , buying the dip and lumps sum alongside having emergency fund and to strike a balance by having discretion to be able to buy regularly. If surely anyone does not follow this procedure then surely such person is bound to buy agresively and sell agresively.

To be a bit more realistic I think 1$ might not be feasible at certain times and it depends on what you would have to give away, like KYC data to an exchange. For those who want to keep it in a self-custodial wallet, 1$ investments would not be a great choice as fees would often times be a huge setback to someone trying to build a portfolio. If a good exchange is available, building a small bitcoin investment over time could be a good alternative. It's probably better if they keep some cash up to a minimum amount that makes the transaction be worth it and then buy some. 50$/100$ as you mentioned is a whole different story.

The parameters to determine the right amount of bitcoin that someone aims for could also vary over time. It depends on how the ecosystem develops and whether someone is able to improve their own financial situation, which would in turn lead to more potential investments into bitcoin.

I remember the times when faucets actually paid quite a lot. Back then nobody would have thought that using faucets would make any sense one fay. If someone constantly used those faucets from 10 years ago, it would have already paid off but I guess only a minority of people would have resisted selling those bitcoin when the first significant ATHs were reached. But once again the saying a penny saved is a penny got holds true here. Better start somewhere even if it seems to be negligible.

Why do you think we should wait until there is a bear market before we invest? Bitcoin investment shouldn’t be seasonal, you don’t have to wait until there is a bear market before you make an investment. If you have money, you can make your investment at any moment, just make use of the DCA strategy to accumulate your bitcoin. And whenever there is a dip in the market, if you have extra money with you at that particular time, you can just take advantage and increase your holding. But don’t wait until there is a dip before investing in bitcoin, because no matter how bitcoin dips, lots of people will keep on waiting for it to drop more and won’t invest.