Topic: Buy the DIP, and HODL! - page 83. (Read 129678 times)

The statement of the the DCA method being overhyped might seem surprising but it's not surprising to me cause I see it as a prove to a statement I made earlier that not everyone understands the concept of Bitcoin investment. The question I've got for EarnOnVictor is that, how is the DCA method overhyped? I wonder why he'll say a method that gives every class of investors the opportunity to invest periodically overtime is overhyped. One thing people don't understand about that method is that volatility is not a barrier to it, so far an investor is financial capable of investing for long-term, you don't really have to wait for the bearish season or dip to maximise profits but rather would've invested the little you've got and still take advantage of the bearish season as well so it's a win win situation, expect the investors is one of those who take loans or someone who doesn't have a stable income but wait for the bearish season to take advantage of the market, bit it's not very advisable and also not the concept of Bitcoin investment, Bitcoin investment are for those who think long-term and not for people who invest to take profits after an upsurge. Those who invested in 2021 at 68k with the DCA method has nothing to lose and their's chances that they even got more coin in their portfolio cause BTC still set an ATH this year and moreover they've been staking their portfolio overtime and gain back what they've lost at every upsurge, that's what EarnOnVictor should've thought about before making that statement.

DCA method is always the best strategy which focuses on increasing the investment portfolio gradually with market average value, it is the best method for a new investor to achieve long term success, an investor's main goal should be to invest regularly.

Usually a new investor is afraid to take risks at first, because they are completely new to the subject and have no experience. So they have to start with a small amount first, and dedicate themselves to hold for a long time. DCA is a long-term strategy, which helps investors grow wealth over the long-term by ignoring short-term market volatility. By using DCA method one can continue to invest regularly on weekly or monthly basis in a simple and orderly manner.

And investing in smaller chunks through DCA also eases the stress on those new investors, while also allowing currencies like Bitcoin to profit from the normal rate of price appreciation in long-term holdings. So undoubtedly DCA method is a stable and disciplined investment method. Which will be much more profitable in the long run for every investor.

Generally, if an investor starts investing by following the DCA method, he must have been able to do the most valuable thing. Usually if the investor invests regularly weekly or monthly in Bitcoin then that investor will be able to buy dips in Bitcoin market dumping one to two times per month. And that's going to be bought immediately because bitcoin is always pumping and dumping, so I think if you do the DCA method on regular bitcoin I think you're going to buy dips in the bitcoin market immediately. Therefore, the main source of all investors is to invest in Bitcoin using the Bitcoin DCA method, because this investment is the only way to achieve success.

Davido?



Those sorts of "coins" are causing the opposite of onboarding people in crypto. If a normie's first experience in "crypto" is buying and losing his capital in "Davido", then I'm very confident that that person will never return and start generalizing everything in crypto as a scam. That's actually going to hurt the cryptocurrency that's built to make real social change - Bitcoin.

Why are you sounding as if you don't know what DCA means and you are setting example of someone who bought bitcoin at $68k when you know that he didn't just lump sum on $68k price and remained like that till now. Since you said it is DCA, after buying at $68k he didn't stop but continue buying even when bitcoin was at the bottom line of the bear market, the investor also bought at $16k+ at December 2022 and so on.

It is when you buy once without keeping your DCA ongoing from then till now that the investor might be at loss but if his DCA in still ongoing, the investor should be in profit because he bought more when the price of bitcoin was down compared to when it was up. The reason why I said this is because since when the bear market started till this current price, the time-line is longer than when he bought at $68k.

So when giving an example, you should not only take the side that will favor your point and leave the facts behind. It is clear and many forum member here knows that DCA buying is effective and efficient for a long term hodli, also majority of people here knows that bitcoin long investment and hodli is more profitable but some people will never have the patience to be long-term hodler due to little profits from bitcoin price fluctuation.

Iit is now I understand that you don't know what the effect of compounding value of bitcoin can bring in the long run.

I wonder why this is funny to you, and for the record, an investor who started today might be more reasonable in words and thoughts than those who had started before, it's not all investors that are successful. The distinctions between the two will be the facts coming from them and the later results after testing what they say. I've been in the world of investing long enough to know that @As-Soon-As is very correct and being older to start doesn't change anything, "by their fruit you shall know them," and in this discussion, the best words I can hold on to in the world of investing was from the guy who references dip, but as usual, he was rebuffed by those who should even be lectured about DCA approach.

Bitcoin has made many people lazy investors since it is such that you can buy and leave and over time, it will still go back to the level regardless of whether you will hardly make a dime from it or not. Where they start having issues is when they buy at the peak and Bitcoin never returned there for so long, is that a smart investment when losing or earning little for too long? Investing is never by force, that's why we should be reasonable. I see no hurt in wanting to apply the DCA approach but first consult my trading chart to know the market condition. If the market is either overbought or diverging towards the bearish side or already started selling, why not wait until the dip effectively happens before DCAing? That is smarter and you even make more than the person who would buy it from the peak. I don't know why that's difficult for many of you to know as someone's style. All you want is a blind investment approach, I can't join you on that.

It is funny to hear that an intending investors is more reasonable in his investment plans just because he is waiting for the dip season to come before he can invest, this is the first time am hearing that and its very surprising to me, @EarnOnVictor with what you have said already it means that your advise to newbies is centered of changing thier mindset to buy during the Bitcoin dip season, if that's the case, what if the dip season doesn't come very quick, that's to say that the investor will keep waiting until the price dips, do you also know that in the course of waiting for the dip to come the person or individuals involved may tamper with the funds set aside for the said investment and that may be the end of the road for them in bitcoin investment.
The reason why many people advocate for DCA method is because it gives you opportunity to use whatever you can afford to invest constantly, slowly and steadily instead of waiting for the dip season to come, and who said someone using DCA method to accumulate Bitcoin can't benefit much too during the dip season, no one is over hyping DCA method as you said, is just that it has proven to be the most efficient and easy going method of accumulating Bitcoin by intending and existing bitcoiners.

Going by what you said about people that bought Bitcoin at 68k in 2021 with DCA method, it seems as if you ain't putting records straight, this year 2024 we all saw Bitcoin reach its ATH thats 70k and above and as an optimistic bitcoiners, we still believe that Bitcoin price is going to surpass the previous ATH, Bitcoin is not doing bad this time as it is in 60k plus which is also close to the previous ATH, I think no one is brainwashed, it is a matter of choice and something that will allow you to invest easily without pressure.

Even experience investors buy with the DCA method but buy in large sum once the price dips because the can't wait until the price dips, they understand that Bitcoin is a volatile asset thats is capable of making funny movement that they might regret not being part of, so for me I don't support your idea of buying the dip only since Bitcoin is a long-term investment buying at all time irrespective of the price check will help you to have a bulky portfolio overtime without pressure and stress of any kind.

I actually feel bad for your lost, this is the reason why trading your funds should never be a decision attached to your investment plan because is a very risky one, is funny that when they advise people to focus only on holding they would be feeling that they are stopping them from there chances of getting some profits but they never understand that this is the reason why they are being advised so that they would not become a victim of the market, however you can imagine how much Bitcoin you would have possibly have now on your portfolio if all those money was focused on investing on Bitcoin, some persons believe that those who normally accumulate Bitcoin for long term holding are statics investors who are missing out opportunities but what they did not understand is that holding will always outperformed any other patterns.

So actually I believe you have also learned your lesson in a very difficult way since it involves you losing a lot of money, so I believe you have understand that trading is like chasing a shadow that sometimes you feel you can possibly reach out to it or hold it since is very close to you but the more you are trying to get a hold of it that's how is always getting one step ahead of you, so that's just another definition of trading because you can hardly get it right, so why not choose the pattern of investment that doesn't require you anything but to only be consistant in accumulation and holding, perhaps I wish others will learn from your experience so that they would make a better investment decisions and to also realized that trading is an instrument of investment failure.


Advising someone to wait for the dip before accumulating Bitcoin just because to maximise his profits doesn't actually sound nice to me because indirectly you are obviously telling or depriving the person the opportunity he has to start investing on Bitcoin, however you need to understand that Bitcoin dip is something that doesn't happen on a more regular basis, so does it mean that the person will have to wait even if it takes years before the price dip before they can start investing on Bitcoin?, though buying at dip is also a strategy which most people normally use but is not a strategy that should be only use by someone who have not even gotten any Bitcoin stash on there portfolio, so that's were you get it wrong because if there are people that should utilize only the dip it should be those who have been on Bitcoin investment for long because is assumed that they have gotten there Bitcoin portfolio filled up which in other words being sufficient, so at that point even if they choose to invest only on dip is not going to be a big deal but for those who has no Bitcoin should never consider only buying at dip.

Shitcoins should not be considered whether you put small money or not because the risk is too high, instead of one to invest in shitcoins and Bitcoin at same time why not use that money and become aggressive in your Bitcoin accumulation, people knows that as time goes on Bitcoin will grow more bigger in price but lack of patience and the want to make quick money won't allow them to focus in Bitcoin rather they choose something as risky as shitcoin because they believe that is were they can make quick money.
Shitcoins gives.
1. Fear
2. Depression
Because of the high risk involved one can succeed today with a particular shitcoin and lose everything to another shitcoin.

In actual sense holding two different coins isn't diversification because they are both cryptocurrency. So buying Bitcoin and then holding too to another doesn't mean you're diversifying bit just rather taking a crazy risk with the altshit-coin. It is diversification when maybe the investor invests in bitcoin and in real estate or any other sort of profitable business order than still crypto. There's no such need accumulating shitcoins while you're DCA with bitcoin , it's going to be a total waste of money you could have used to increase your bitcoin portfolio

Why not, unless you never buy again after that.
When you buy with DCA, you are essentially automatically buying at a lower average price. Let’s say you buy 1 bitcoin at $68k, then you buy another bitcoin at $60k, another one bitcoin at $55k and another one at $50k, so you have roughly spent $233k to buy 4 bitcoin. At the current price, you still have $20k in profit because your average buy price was lower. At least that’s how the system works when you talk about strategy, but everyone has their own measure.

In a more obvious case, Michael J. Saylor has made huge profits from his DCA strategy on bitcoin. So why should we doubt him for the long term?

Yes, there is no perfect strategy, but you can perfect it yourself by developing it. You are free to choose any strategy that you think is profitable, but whatever you think is profitable sometimes does not apply to others, and vice versa.

He is waiting for the dip season, and for this, he is more reasonable. The DCA strategy might have been overhyped by many of you, but it also has its downside, and if waiting for the market to dip before he applies it to maximise his profits, why not?

A clear explanation goes for those who were overbearing by Bitcoin as far back as 2021, they bought the coin at $68,000 in the name of having believed in Bitcoin and DCA strategy is supreme, can they still be in profits after over 3 years (in 2024) judging by the current price of Bitcoin? The answer is a capital NO. This is why we should rather be reasonable than be brainwashed by a certain strategy. No doubt, the DCA strategy is a very good one, still, the right applications matter depending on the market condition and not just buying and buying even as the market is clearly at an overbought region.

Any reasonable and experienced investor must consider other factors like that for him to know when is the best price to strike the market. Above all, the price you buy matters regardless of whether you DCA or not, which is what @As-Soon-As was trying to explain because you will gain more and be even safer buying the dip than buying at the peak. Who does that in the history of investing except such a person is inexperienced?

Lol how did I?
Giving an example doesn't necessarily mean deviating from the topic.
I'm trying to show a picture that been scared sometimes is present sometimes despite there been faith.
So if I start talking about cornz, it would be considered off topic?
How the f have I shifted from the discussion, okay now I have but let's digress.
Don't agree with most of the things you stated except the last .
They should be more scared about saving their money in a Local bank.
Humans are emotional beings, despite knowing that death is inevitable we still scared of it.
You know even when you are in a loss, you would recover and comeback stronger
But sometimes thoughts like when would it stop?
How long would it take to recover among others.
I watched a movie called Locke and keys, and a character sealed her fear and I must say still became blatantly foolish.
What am saying is having the fear is normal, but don't let it influence you.

You seem to have shifted from the topic of discussion. Returning to the discussion the psychological aspects of investing and fear of loss show that the investors are scared and bit because they still lack some understanding of Bitcoin or they dont have any clue at all about what Bitcoin investment is. This is where the knowledge and experience in Bitcoin matters. There is a saying 'When you're not informed you're deformed.' This means that things we lack knowledge of are way bigger than us and we are scared of it because we cannot comprehend them. Being scared about investing their money in Bitcoin doesn't make them win. They should be more scared of saving their money in local banks.

You seem quickly tired of holding your Bitcoin i would advise you not to be pushed to sell them.

In brief help me tell you I have been able to DCA consistently and sometimes buy the dip. Perhaps you can adopt the method and see how it syncs with your goals and risk management. The first time is a commitment to dcaing the highs and lows, no matter what the price of Bitcoin is. Also, dont just buy Bitcoin because of the hype and excitement of where the price will be in the next year. Because if you do, your mindset will all be on the profit you want to make and not the accumulation goals you've set. Instead set your DCA to be weekly buys, bi-weekly or monthly, and stop timing the dip. When the dip comes if you have spare money other than money kept for DCA then you can buy more to achieve your goals faster.

I don't think they put a lot of money into shitcoin. That's what they expect. Taking a risk on shitcoin with small money to get a bigger profit. But if your friends dare to put most of their money into shitcoin, I'm sure they are reckless people.
Shitcoin is only for the short term. Not to be held in the long term. The longer you hold shitcoin, the greater the risk of losing it. Unlike Bitcoin which has proven its history. This is just a matter of understanding and principle. Some people may think too hard because of the small capital they have and the inability to hold it in the long term.

I've asked several friends I know, why they invest on shitcoins when they know that Bitcoin is the most superior Cryptocurrency and shitcoins are pump and dumps and the replies I get is that to they're willing to take the risk and life is full of risk and to make wealth one needs to take risks and then I keep wondering why I'll risk losing my funds to an inferior coin (shitcoins) cause to the quest to make quick money when I could invest on something superior (Bitcoin) and benefit in future. knowing that Bitcoin is superior to other Cryptocurrencies and is the best for investment should make people disregard those shitcoins and what I've come to understand is that some people lack patience they prefer quick money to a good investment with long-term goals and that's why many have failed while on the verge of seeking wealth. I totally agree with you that the best place anyone could invest their money when it comes to Cryptocurrency is Bitcoin and I'll never advise anyone to investment on pump and dumps (Shitcoins) due to the high risk factor involved in it.

Bitcoin should not be used to trade and a new investor shouldn't think of trading his bitcoin because it is not ideal rather focus on only investing and building your bitcoin portfolio gradually by using DCA method every week or month to buy persistent and consistent for 4-10 years and above.

I don't like shitcoins but I must tell you that shitcoins are the ones good for trading and not bitcoin because shitcoin is gambling and trading is similar to gambling too and not bitcoin. Bitcoin is an investment and should be treated so because the value of bitcoin will continue to increase. No one should think that trading bitcoin is the best way to increase your bitcoin because thw possibility of you running at loss is very high.

Bitcoin is the future hope for long-term investors and that is why you need to join the long-term investment train for future hopes.

There are several types of investment methods to invest in. Many invest in his preferred method. I don't know how many people in the forum manage their investments with DCA strategy. But I think most people in the forum like DCA and manage their investments in this way. Reason being, I haven't seen any member on the forum who spoke negatively about DCA and didn't praise DCA. We can say DCA is the most popular among investment methods. There are some reasons for its popularity namely-
1. Invest as much as you can.
2. Less chance of damage.
3. more simple

Investing in the DCA method gives you complete freedom as to how much you invest and how often you invest. It totally depends on you and your earnings. You also decide how often you buy. You can buy after 7 days, 15 days or 30 days if you want. But it is better to be regular and consistent.

When planning investment, we first calculate profit and loss and think more about security of money. With DCA method your chances of loss are very less. Even if the profit amount is not much, don't let you down. It is doubtful whether any other method would provide security of profit and loss like the DCA method.

DCA method is quite simple as it is continuous and regular. You don't need to acquire much knowledge to invest in DCA and you don't need to do a lot of calculations while investing. Even the method in DCA has no effect on Bitcoin price changes. No matter how volatile the market is, it has no impact on your investment and investment approach. You can always invest in the same way.

I weep for myself after losing all my capital from trading a shitcoins last week, and this made me very sad and disappointed in shitcoins, because their are more or less a gamble and anytime we have to make a choice on which coin to hold or trade in, we should look away from shitcoins because we only draw closer to loses if we make a choice on them.

Bitcoin remains the most Acura and less volitile asset to either trade or hold for long term, because with Bitcoin, your chances of losing is very low and take a long time for that to possibly happens, but this can not be same with shitcoins coins.

Many cryptocurrency investors have lost a whole lot of money ever since the memecoins craze came on board a d still many are willing to lose more instead of learning from their mistakes and choosing only Bitcoin as against those shitcoins.

This is one of the advices or let me say warning that i ditch out to newbies or those actually trying to accumulate more bitcoin. Waiting for a dip to me Carries same risk as at not even investing at this period of time. I tell other investors sometimes that the lowest price you can catch bitcoin again could be the current price you meet it that day, No one is certain of a dip coming through it is just speculation and some speculation are just like procrastination to me. So one need to actually find a way to DCA it could be monthly, weekly or even bi-weekly depending on one’s income the thing just don’t stop due to narrative shared that there could be an upcoming dip.


Just like the quoted post, if he had been DCAing continuously and hadn’t stopped he would have caught prices below $60k multiple times and could have helped in better proportion to his average, his current average from those four price is around $50k to $55k but multiple DCa since then would have also gotten him lower this price and most importantly more accumulations but it still depends on one’s income