Topic: Buy the DIP, and HODL! - page 85. (Read 129756 times)

In his responses, he mentioned a logical term physical assets, which i feel can be a carried opinion. Investing on something outside Bitcoin is not a wrong attribute that senses unbelieving thoughts about Bitcoin potentials but it's a coverage against the digital market, at a point we all need funds to identify with our hefty needs, and our Bitcoin as  a digital kind of investment may likely be in the wrong form to option for sell, our physical assets now has to be the solution instead of selling not when due.

Diversification on the general can not be wrong, it's a good move for every investor but a bit off when it comes to diversifying capital meant for Bitcoin down to shitcoin, then it can become a show to talk about. Every investors are left with as much option because they own the funds, we can't get biased by their own judgement, in little cases it favors them but still not recommendable because of the lower possibility of making profits from such investment.

You are wrong; no bitcoin investor who is accumulating bitcoin for long-term purposes and understands bitcoin will get scared anytime there's a dip; rather, the investor will see the bitcoin dip as an opportunity to accumulate more stash at a low price. If you see old bitcoin investors who are scared anytime there's a bitcoin dip, just know that those investors invest in bitcoin for the short-term profit, and they are scared anytime a bitcoin dip happens because it will delay them in taking their short-term profit from their bitcoin investment. We should always have a long-term mindset anytime we are investing in bitcoin so that anytime there's a dip, we will not panic but see it as an opportunity to increase the size of bitcoin.

There can be various stages in a new investor's bitcoin investment in which he might need to reassess his approach and determine the extent to which he might want to diversify beyond bitcoin and cash, and surely if he comes to bitcoin already with some other investments, he might choose to keep some of the other investments or he might choose to reallocate some or all of those other investments into bitcoin.  I would think that the more common path is to just stop or slow down investment in the other assets and to invest into bitcoin, yet there could be variations on how to handle such an already existing situation with other assets.

Yet even the person who just starts out with just cash and bitcoin, he could have various stages in which he wants to make sure that he is not overly balanced into bitcoin, so if he first builds up his emergency cash reserves to 3 months, then maybe he might also have around 3 months of expenses in his bitcoin investment too. .and then maybe he will continue to build up other forums of cash reserves and maybe he might build his bitcoin faster or maybe he might build his cash reserves faster or maybe he will try to build them up equally, and at a certain point, he is not going to feel so great to be building up so much cash, so maybe he will start to prioritize building up the bitcoin faster than his cash reserves, so then maybe he might consider that he needs to get his bitcoin holdings to be valued at somewhere between 10 years to 25 years of his expenses before he feels comfortable to consider himself at fuck you status, yet if he is ONLY at 1-2 years in which bitcoin reaches the value of his annual expenses, then he still might feel that he need to keep more value in cash, but he already has plenty of liquid cash in regards to various backup funds, so he might feel that he wants his cash to work for him, so he might consider putting some of that into properties, equities, bonds, commodities and/or cash equivalents .. and surely I am not even suggesting shitcoins even though some guys might put some value into something like shitcoin or even into business ventures (hopefully not money losers).   

So there can be various goals and/or threshold points to reassess the bitcoin investment and the extent to which to potentially have some of the value spread out.


People do get anxious and have expectations of getting rich quick, and they find reasons to be negative about bitcoin or to see various developments in bitcoin as negatives, whether it is blocksize and/or scaling considerations, considerations about mining attacks, considerations of KYC and AML type requirements, considerations of how governments might battle bitcoin, considerations of how various financial products (such as ETFs) might negatively influence decentralization, considerations that bitcoin had already gone up a lot so it is now a bubble, considerations of how shitcoins are stealing bitcoins market share because they supposedly have better privacy or scaleability of programability and/or some other negatives.

There are always going to be some reasons to consider that bitcoin's investment thesis is not as strong as it could be or should be, and so a lot of people have missed out on investing into bitcoin because they get caught up in fears and/or excuses not to act. 

I have no problem with guys believing some of the bullshit negative possible problems with bitcoin, yet I doubt that the various negative themes justify NOT investing into bitcoin, rather than justifying considerations to reduce position size.

Frequently, in the last 4 years or so, I have been suggesting that any beginner that they should invest 5% - 25% of the investment portfolio into bitcoin, and so if they have a lot of concerns, then they would invest on the lower end of the range and maybe even go below the range.  In the end each of us is responsible for our own decisions regarding both whether to invest into bitcoin and if we invest into bitcoin, then how much.  Choosing not to invest and/or choosing to invest whimpily into bitcoin are choices, and it seems that even the whimpy investor into bitcoin will have greater chances of being in a better place than the ones who choose not to invest, yet each cannot turn back the clock after 4-10 years or longer have passed and they made their choices on a daily (or weekly) basis regarding putting some value into bitcoin or not.

I don't like investing in shitcoins at all. All coins outside of Bitcoin are considered shitcoins. I totally agree with you, don't put all the eggs in the same basket if it's different. Similarly, diversifying the same portfolio is not a good choice. It can cause damage.

Every individual has freedom in investment. If a person wants to invest in SHITCOIN he can do so at his own risk. Although no one follows the rules of investing in Shitcoin, it would be wrong to call it an investment. Shitcoins are mostly traded, so you can keep a separate portfolio for Shitcoin and one for Bitcoin.

Every person should have negative thoughts about Shitcoin. Many people invest in Shitcoin only to make profit despite knowing its disadvantages. They know there is more to lose than gain in Shitcoin. Temporarily a number of people are lured by the phenomenon of earning from Shitcoin and they get into Shitcoin. Their aim is that they too will earn more money in less time and become rich overnight. I think they are deluded and will realize it after they lose more.

Diversification is Good, could be considered one of the best strategy of investing, your approach was what was wrong.
Never place all your egg on one Basket no matter how much you trust a project.
Investing in Bitcoin and Shitcoin is not diversifying, it's more of placing some egg in a basket and another where giants could fight this destroying the egg
This would reduce the benefit of the Good basket.

Personally, I prefer diversifying but only invest in Bitcoin as a Cryptocurrency and dabble in some stock and lil land (though you can't do DCA in this).

Investing in Bitcoin and shitcoin is like farming tomatoes and rearing chicken in same place.

Diversifying your investment does not mean that you should diversify in the same line of investment because that's when it will reduce the risk of you running at loss. If you feel that you have gotten enough bitcoin in your portfolio and you want to diversify into another investment, it should be on bonds, stocks, cash equivalent so that if one of your investments depreciates in value the other investment can balance your total investment.

First of all, it will be gambling for investing in shitcoins because shitcoin in not an investment and when you use the money that you are suppose to use to continue growing your bitcoin investment or for maintenance to buy shitcoin, all those funds used for shitcoin might finally be a waste in future because shitcoins will not survive in the market for long. Bitcoin is unique and new investors shouldn't think of investing in shitcoin but bitcoin.

Shitcoins has frustrated a lot of people and I ask are people blind to see what is happening because I'm still seeing some people investing in shitcoins the risk in shitcoin investment is too much and should be avoided.
There was a shitcoin created some time ago called Davido coin this coin was created by a music star in Africa, when he created it he announced it and a lot of his fans went and bought the coin, he had the highest number of the coin, because of how much interest his fans had on the coin the coin started gaining value and growing in price and before we knew it the music star sold out all his Davido coin and that made the value of the coin to drop so badly so he gain and those that bought the coin lost, so you see shitcoins should be avoided a lot of them are created by scammers people who wants to exploit others.

I used to think diversification help reduce risk, my reasons was that It would help in a case where Bitcoin drops in price cause my other coins would still be intact not until I tried it and noticed that when Bitcoin dips, most other Alts dips with it so I had to perish that mindset of diversification and stick to holding Bitcoin, it is the best coin when it comes to investment and doesn't have much risk factor cause even when the price dips you could still DCA and recover losses overtime. infact, so far an investor is thinking long-term which is the main principle of investing in Bitcoin, the dip or fear of price drop shouldn't be an issue so far the investors keeps DCAing at various Intervals over time. Therefore, instead of diversifying I think an investor should channel such energy and funds into accumulating more Bitcoin, I've got to understand that most investors don't understand the DCA method and how helpful it is towards Bitcoin Volatility and that's why they'll be diversifying their portfolio with shitcoins instead of using the DCA to accumulate more bitcoin periodically.

I think @letteredhub did not understand the point you were trying to make and besides our most important goal is to be able to have a lot of Bitcoin available on our portfolio so diversification should not come to play at that moment , so actually, improper planning of diversification can even lead to inability to achieve anything at the end.

What @letteredhub is missing is that it may likely take somebody or a beginner who just started investing on Bitcoin using DCA strategy possibly over 11years to have a good Bitcoin stash on there portfolio and sometimes they may not even have enough Bitcoin after that number of years based on the amount they use on weekly basis, so perhaps he cannot advise such person to leave accumulating Bitcoin and diversify into another investment because it doesn't sound nice, so actually if there should be a time of diversification it should be when the person have achieved his Bitcoin goal before they can talk about any other thing.


I'm still wondering were you get that notion from or have you been able to go around asking people there take on Bitcoin before coming up with the idea that people are beginning to lose hope on Bitcoin?, for me I'm actually seeing the irony of what you are saying because I have seen so many people who have started investing on Bitcoin now because most of them are even happy that since the price has come down this way is a good opportunity for them to start, so I disagree with you on that unless is generally accepted you are talking about because people are always different and some of them are prone to object.

Portfolio diversification is a basic principle in investing that can reduce overall risk, but as long as the chosen coin has strong fundamentals like Bitcoin, then diversification is not necessary because the more people adopt it, the value of Bitcoin will continue to increase due to its scarcity. Bitcoin has a strong reputation and has been widely adopted around the world, making it more stable than other crypto assets. Although its price also fluctuates, historically Bitcoin tends to recover and continue to increase in the long term. Doubt will hinder the path to success in investment, Bitcoin is the best choice for those who want to invest long term, while DCA allows investors to collect Bitcoin periodically with a percentage of money prepared to invest.

 👀


The part of the post about "the priority" is not to make money, but to preserve capital is very wise. I'm very confident that many of the plebs like us have wasted their precious capital to "trade" shitcoins in such a bad market. They either lost ALL of their capital or MOST of it. That would be terrible, especially if the capital was denominated and held in Bitcoin. Merely HODLing it would have preserved capital.

Bitcoin is a very good investment, a lot of people has already started losing hope in Bitcoin investment and the reason is that is not growing as they expected, one thing we must know is that Bitcoin is volatile in nature and that makes it go up and down in it's growth, however it's volatility has not stopped it growth since it's Creation if you check the history growth of Bitcoin then you will understand better.
You are right some people says the best time to invest in Bitcoin is when the price is cheap, for me every time is good for one to start his or her Bitcoin investment waiting for a dip will only slow down your accumulation.
If I'm accumulating consistently without waiting for a dip I will have more Bitcoin than someone who is always waiting for a dip before he or she can accumulate.

I am not suggesting that there is any need to diversify into other assets besides bitcoin and cash, especially for newbies who might be in relatively early stages of building their bitcoin investment.  It can take 5-10 years or more just to build up a bitcoin investment size (at least the amount that you had invested into bitcoin) to be equal to 1 year of your expenses.  Just think about a person who might be investing 10% of his salary into bitcoin, it is going to take 10 years, to have the amount that he invested into bitcoin to be equal to the amount of his salary, and so then there might be another question about whether bitcoin is growing in value faster than his salary is growing, and surely some folks might be in years of their career in which their salary is growing and others might not be receiving significant increases in their salaries through the years.

My main point was not about diversification but instead about NOT overly assigning expectations of certainty in regards to either where bitcoin is going and/or how long it might take bitcoin to get to such point that you expect it to go.  Diversification may or may not help with mitigating that kind of a risk, and frequently I recommend against new investors to be diluting their investment by getting distracted into nonsense ideas that they need to diversify when they are barely even able to figure out their cashflow and they might ONLY be investing $100 or less per week. The more immediate concerns would be for them to get their cashflow management skills into a good and strong place, and to spend time building their bitcoin investment without getting distracted into other nonsense - including getting diluted into believing that bitcoin is not a good enough investment, even if it is not guaranteed.  There are no investments that are guaranteed, even such a great investment such as bitcoin that might be amongst the better of investments, and perhaps even one of the best places to put money.. just not necessarily investing with a mindset and such sloppy finances and/or cashflow management practices to be presuming that its upwards price  performance is guaranteed.


I am not a fan of diversification as a way to deal with balancing out a bitcoin investment beyond bitcoin and cash.  Sure, if you get to a point that your bitcoin is starting to add up to a year or even several years of your expenses, then there might be some need to diversify beyond just bitcoin and cash, such as properties, equities, commodities, bonds and/or even business or some various cash equivalents. (not referring to shitcoins. and surely anyone tempted to invest  into shitcoin should be careful to limit such investments, trades and/or gambling in shitcoins to less than 10% the size of their bitcoin holdings, which also might be too much to even allow up to 10% of the bitcoin holdings (without cheating by continuing to add value when shitcoins are losing, hopefully?) to be put into shitcoins.

In these cases we really need to think about how to cope up with certain possible damage we can get if those expectation we got didn't came out. That's why its important for every holder to have emergency funds set in this situation so they would not feel broke when situation they expect didn't happen.

But we know bitcoin is a strong asset and supply is limited while demand is increasing each year so even if they say that its risky for us to invest since there's no assurance to earn there's still huge chance for bitcoin to pump up for more digits.

Even if they say that bitcoin is good to invest before while the price is so cheap still we can figure out that even by now bitcoin still a good asset to acquire since the limited supply feature is making bitcoin a unique asset to acquire.

Confidence is in yourself, if you have made up your mind to buy Bitcoin why should you diversify your assets.
In my opinion, if you want to be successful, just get past your doubts, it is true that investing is not with all the money we have but only a part of it, aka we invest with the DCA strategy.
Saylor alone who bought thousands of BTC did not diversify his assets, not to measure it but he knew BTC would not die or lose value if the internet still existed in this world.
Also, you are still hesitant about bitcoin because your post has various meanings that can be explained because you said you have to diversify. It is not wrong, but try to stand with your beliefs.

You are right. But the thing is that before should think of diversifying , he or she should first secure a better position in their bitcoin accumulation . And it is true that bitcoin future ain`t guaranteed , but securing a better position in bitcoin accumulation without overdoing it, will literally put you in a safer side so that you won`t endup regretting in a long run .

But when it comes to diversifying one need to take  he or her time to make proper research when the time comes for diversifying because investing in some shitcoin is not a form of diversifying at all. Because you are only putting your hard earn money in some huge risk, so avoid that so that you won`t endup  getting yourself reckt.

This piece literally sums up the whole idea of investing wisely which is by investing an amount of money you can afford to lose. Investing with a sense of moderation. We need not put all eggs in one basket and by way of this in figuring out our respective level of balance to avoid reckage is by diversifying our investment to other physical assets within our reach that we know can be profitable in the long run.  Now this doesn't mean that bitcoin doesn't have a bright future ahead to do better but it's just a way to guard oneself against future uncertainties everything being equal.

You are correct to say that even the regular DCA buys of Greyhats or anyone else in the past three weeks would have also amounted to buying the dip, yet people will frequently think about buying the dip as more purposefully holding back funds and keeping them available for buying extra on the dip.  Since at any particular time that we are deciding whether or not to hold back funds for buying the dip, we do not know which direction that the BTC price is going to go, so therefore the holding back of funds may or may not ultimately play out to our advantage, and we may well have had been better to just use most of those funds, if not all of them to just continuing buying BTC regularly, persistently and consistently.

Sure, if a dip happens we may well feel pretty good about having had been able to buy the dip.. perhaps to use extra funds and even to buy more BTC for the same quantity of dollars (or other fiat), yet even if buying the dip makes us feel good, it may not overall be the right practice, and for sure, each of us has to figure out our own balance in regards to whether we want to try to employ such a practice, and if so then how much and how to allocate such funds for dip buying versus buying BTC regularly with those funds.

Personally, I believe that the longer that any of us has been accumulating BTC and/or the more that we might have had front-loaded our BTC investment, then the more justified we would be in terms of holding back some funds (if not all) for buying dips, and the less time that we have been accumulating BTC or unable to front-load our BTC investment, then the more we should probably be attempting to just focus on ongoingly buying BTC without fucking around with various waiting strategies that might or might not end up playing out to be able to buy BTC on dips.  Surely these are discretionary matters in which each of us has to figure out how to balance, and sometimes we may well end up getting our balance wrong based on how we see the BTC price to move, yet we still have to figure out how to balance since we do not know the BTC price move in advance and we merely have to attempt to prepare ourselves as best as we can both financially/psychologically for any price direction that might end up playing out.. .so almost inevitably we are going to not know the price direction, yet we should want to be able to feel comfortable with ourselves in terms of what balance we ended up striking.



Even if bitcoin's investment thesis is stronger today than it was 10-15 years ago, bitcoin still is not guaranteed to be profitable in the future, and every person still has to figure out his own level of balance in order to not reck himself in terms of overly investing into BTC, even if he might end up being correct about bitcoin price direction projection as being up.

One thing about a great asymmetric bet to the upside, which bitcoin seems to be, you don't even have to necessarily invest a lot into it if some aspect of the upward thesis ends up being correct, so some folks end up recking themselves even when they were directionally correct.. yet if they do not manage their finances, time and energies correctly, then they may well end up getting too greedy and/or anxious about the future and failing/refusing to sufficiently/adequately plan and protect themselves in the present...or even the short term future that might include lengthy periods of flat and even down in which bitcoin should either be held or continue to be accumulated rather than sold during those kinds of periods, and if a person does not have sufficiently good cashflow and/or good cashflow management, then s/he may well end up increasing his odds of spending bitcoin (or even losing it) rather than either saving it (protecting it), or accumulating it during such times.

First of all the realmess of Bitcoin is not measured by the high price, however your notion about Bitcoin having a very high risk is totally wrong, I no that volatility is actually the reason why you think that Bitcoin is the most risky investment, so I want to let you no that volatility of Bitcoin doesn't make it to be risky because there is a high demand and supply so the market will always be moving back and front but doesn't mean that is risky to invest, however if you see Bitcoin to be highly risky what then would you say about altcoins Because if there are investment that's very risky altcoins should be regarded as such.