Topic: Buy the DIP, and HODL! - page 88. (Read 121951 times)

Okay, thank you in advance.
In this thread I read a lot about DCA, and after I found out that this strategy I think everyone can use it because it doesn't seem to need a lot of money to do it, you just have to be consistent in doing it.
But is DCA the best strategy to use?

Reading a few books about the investing will also be very helpful, since a great deal of misinformation can be read and watched online, and it could bring a great deal of confusion to a newbie when reading that contradictory information, and while false information can be found in books as well, one or two good books about investing are more than enough to get a person on the right track.

Also it is not a bad idea to read more about bitcoin not only as an investment, but simply about how it works and the principles behind it, as the greater the understanding an investor has about it, the more likely it is for them to stick to their decision to remain invested in bitcoin, even when the short term results they get may not be favorable.

The elephant in the room problem is that sometimes the BTC price does not dip, and another thing sometimes there is way too much wasted time strategizing about whether the BTC price might or might not dip and there might not even be that BIG of a difference between buying right away or buying regularly and fucking around trying to figure out if there might be a dip or not and if there is going to be a dip, then how much of a dip there might be...or not and does it really make that much of a difference, especially when it cannot even be known anyhow whether there will be a dip or not, even when there are strong feelings that there might be a dip, that does not always end up happening, so then time is wasted  that could be spent in more productive ways.. perhaps even ways to figure out how to earn more money or to cut some expenses in order that more bitcoin can be bought or perhaps ways to figure out how to secure coins in a solid way that is not going to result in putting coins at risk or potentially having a bunch of UTXOs that are overly small.

After making a plan, it would be even better if we could carry out the plan that we have made well to be able to get good results and if we use the DCA method in investing, of course we will make purchases routinely according to the schedule that we have determined and continue to make purchases at any price according to our ability and continue to hold for a long period of time until we get profit from holding the asset.

Yes, of course we have to prepare funds for our basic needs first in order to be able to run the investment properly because without first preparing the funds, it will be difficult to maintain the investment that we run properly and we may have to immediately take the assets that we have invested in any situation because we are pressed for the needs that we need and this will certainly be very detrimental because it has not produced any profit from the investment that we run.

although I am not a part of this conversation but I would like to add a little even as JJG may have replied you. the way you sounded @SatoPrincess look somewhat like buying the dip is the most profitable method in the whole investment strategy neglecting the DCA and also lump sum method. to me its a bit problematic, if you check from the statement of Roseline492, he made an exquisitely nice point, very clear and precise about how people talks about buying the dip and making it look more  important than regular DCA, and yes that can be misleeding because it makes everything looks like a quick way of making money from bitcoin, presumably trading. despite whatsoever we shouldn't forget so soon that bitcoin investment is a long term investment and not a short term investment which should not be neglected. and also reffearing buying the dip as the most profitable while DCA strategy to be done as trading is misleading.

the fact that you presume DCA is good for newbies as a starting point doesn't mean that old Investors can not use same method. if an investor choses to only buy bitcoin the way you presume, definately there will be no DCA rather buying only the dip. because according to your narrative it implies that we should apply DCA strategy in efficient manner, that is buying bitcoin when the price is low and not when it is high. for example as you said if we buy bitcoin around $70k how long do we have to HODl it before it breaks the zone? fine.. surely if a person buys bitcoin through DCA within the period when bitcoin is high within the $70k and it dips to $65k or $55k then you buy the dip from your reserved fund, and this is the important of having reserved fund for buying the dip, DCA and lump sum because bitcoin is volatile. if you even buy Bitcoin the way you think you are smarter than others as you think, maybe buying only when the price has dipped, you may be supprised that it will still dip more and your sudgested low price may even become a once all time high that need alot of time to come back. for example you made reference of $70k to be a high price to buy, what if  $70k dip to $50k and you buy thinking it's low and $50k dip to $30k and take time to recover to $50k so invariably you become frustrated so the best way is to buy using a regular DCA and buying the dip and Also lump sum when you have a fund to lump sum. so your sudjestion was trying to completely eliminate DCA method but as the case may be what can you say now. you can't really be smarter than others in bitcoin investment.

But it is most important that you have a plan, because without a plan you will never reach your destination. It is most important that you have a plan if you are going to buy bitcoins according to your DCA method. Because holding in the DCA method requires you to keep your bitcoins alive for a long time, the risk of holding is that you will not be able to sell them. 

That's why you need to have a separate fund to meet your family's basic needs, as this gift will definitely help you to hold Bitcoin for a long time. And there are other ways which can be followed earlier and you can make bitcoins longer term according to your convenience.

You have to plan in such a way that you use your money to buy bitcoins using the DCA method, and you buy dips with more extra money. There is sure to be pumping and dumping in the Bitcoin market, so you must plan and split your money. 

And keep funds close to perform regular DCA procedures, and be prepared to buy dips in the Bitcoin market so you can buy your Bitcoins from both sides and hold them for a long time. Make a plan like this and convert it into reality then surely you will be successful in holding Bitcoin for a long time.

The bitcoin market is such that cannot be predicted and if you stick to the DCA strategy, you will enjoy it better and not cry over missing opportunities when the price doesn’t come back to the level you’ve assumed it to come for you to buy more. Every fall in price even during DCA is an opportunity to buy more, so a long term holder that is using DCA strategy will always be happy to see a fall in price in order to buy more bitcoin at the same amount they’ve set aside to be buying either weekly or monthly.

Applying the method of trading could be dangerous because it may look more like gambling and not knowing and just predicting where the price could be going next. This ideology could discourage newbies and those that have knowledge of trading before should avoid mixing it with DCA strategy. It will only give room for so many mistakes that cannot be correct when made. Trading is different from DCA strategy and they shouldn’t be intertwined.

DCA is the best method for investing in bitcoin easily without waiting for the dip. is always a good time to invest in bitcoin using the DCA method. Some investors, especially newbie investors, like waiting for the dip before they invest, and the market is unpredictable. Nobody knows what will happen at the last minute. That is why, at any time, at any moment, as long as there is money to investtake advantage of the current price and do that at any time. and plan for a long time investment, and you will surely get enough profit.

Perhaps the only way to learn is to ask questions, I would prefer you ask questions where seems confusing to you than for you to create some level of assumptions that seems very lame and unrealistic. looking at the context of the thread there are few other threads where you can learn basic things about bitcoin investment and smarter ways to buy and hold for a longer term if you indicate interest in them or such thread I will be glad to refer you to some of JayJuanGee's thread which he discussed the basics on each entry that you could make. this threads are even suggested outside the forum which shows the level of original and how true it is, now I would love you to ask or request for links if you're interested but if not you can stick with this thread and ask questions instead of confusing others with your own perspectives.

Yeah, That's it! using the DCA strategy  of buying doesn't eliminate buying of DIPs but instead it covers beyond... Either the market is in a Dip or not  the DCA strategy doesn't focus on that so you can buy dips or buy outside dips using the intervals you mentioned which is a good way of investing.
Think of it like this buying of dips is like a bonus to your investment,  if you still  have some disposable funds after considering your DCA and other necessary stuffs then buying dips with such funds can be a bonus for your investment.

Even though I am suggesting and maybe even proclaiming that cycles could disappear, I doubt that we are anywhere even close to having actual facts to support the actual disappearance of cycles, and likely we are not even going to know or realize that the cycles were no longer persuasive until much after such time that BTC's price performance no longer supports cycle theory... so in that regard, I think that it is way better to continue to presume that cycles are ongoing rather than prematurely proclaiming they had already disappeared based on current evidence (facts) in front of us... including that the mere fact that we reached an ATH prior to the halvening rather than after the halvening seems to amount to lame ass evidence to supposedly support the disappearance of the cycles.

In other words, we surely have BTC price moves that are up and they are down and the fractals seems to be within reasonable parameters to overlay the previous fractals, even if the magnitude of some of the price moves might be lesser or greater than they had been within earlier fractals.

Maybe no matter what, whether we get 4 year patterns, we still likely should be able to presume that the general pressures on BTC prices is going to continue in the upwards direction, even if we might have extended periods of suppression or maybe even price rises that fail to correct back down within what we had expected to be our cyclical time frame.

Another combating theory concerns power law theory versus stock to flow, and surely, I still like to assert that stock to flow is a great way of looking at bitcoin price performance, even if we might not be able to identify with any precision the multiples and/or the magnitudes of the price cycles, there are folks that argue that stock to flow just falls within a powerlaw curve and merely complicates the powerlaw dynamics by adding more largely irrelevant variables to the equation (suggesting that the 4-year cycle is mostly irrelevant).. In the end, I personally give few shits regarding whether powerlaw might be more true than stock to flow, I still consider the 4-year cycles to remain valuable in terms of looking at the BTC price moves, even if there remains a bit of fictional inabilities to really tie such 4-year cycles to actual real world BTC price dynamics..

Here are a couple of recent podcast interviews in which Giovanni Santostasi argues that power law supersedes and is more important and relevant than his claims of stock to flow's inferior adaptation of power law.

Simply Bitcoin - 
https://overcast.fm/+AA1uZKBe3D8

Crypto Voices
https://overcast.fm/+AANK1lG6bqA


I am not even suggesting that there is any better place to put your money apart from bitcoin, even though I also would argue that anyone is going to be foolish if they are not attempting to maintain some kind of balance in regards to having assets in cash and/or cash related traditional investments in order to attempt to account for needs to be able to live in the real world with real world expenses that are likely mostly reflected in dollars and having a decent amount of practicality to have cashflows and/or capital that is held in dollars and/or dollar-related assets - even when we know that the dollar is being debased anywhere between 3% and 20% per year depending on how such debasement is measured.


Perhaps your punchline that newbies should just employ DCA regularly without considering the dip is correct, yet you seem to presume that some people might be smarter than other people and including yourself into such smarter than other people group.

In other words, you still seem to be presuming that there is some kind of ability to know what is a dip and what is not a dip in BTC and to be able to predict BTC's price directions with any kind of level of meaningful accuracy, which seems a bit presumptuous and even lacking in persuasiveness that there might be some point that someone (whether you or anyone else) who becomes smarter than others about being able to see whether there might be a dip in the works or not and/or to fuck around with changing his/her BTC buy orders based on such supposed knowledge of where the BTC price might be going.

In the end, you can do what you like including if you believe that you are really effectively able to employ BTC buys (or refrain from doing such) based on your supposedly having some kind of meaningful and material insight into upcoming BTC price movements beyond guessing in a kind of 50/50 manner  (or maybe 53/47 when you might happen to have a lot of confidence and/or supposed insight).


Of course, I agree with your overall point Mayor of ogba - which seems to be both that the term cryptocurrency is ambiguous and likely to be misleading, and also that talking about cryptocurrencies and/or shitcoins is more appropriately carried out in other threads.

On the other hand, any of us should feel free to present matters that we consider to be potentially relevant to this thread, and surely as long as we are not vague in our reference and we are not pumping shitcoins, there might be some cases in which references to shitcoins might be relevant to some reasonable point that a member might want to make, so in that regard, it surely would be best to try to clearly state how some shitcoins or some general reference to shitcoins might be relevant to a point that the member is wanting to make in connection to this thread and our attempts to mostly stay within the bounds of this thread that is focusing on bitcoin and bitcoin accumulation, and surely we have frequently seen that reference's to shitcoins might also get us off topic, since shitcoins tend to be traded rather than invested into so there tend to be several ways that too much discussion of shitcoins or even attempting to bring it up devolves into irrelevant off-topicness, especially in a thread like this one.

Buying at the dip or not those not make one get profit, what gives one good profit in Bitcoin is holding patiently for a long time, anyone who's always waiting for the dip before investing is only delaying his or her investing journey.
I'm not saying buying in the dip is wrong, what is wrong is waiting for it to happen before you invest.
If you are using the DCA strategy to run your Bitcoin investment you also need to prepare your backup funds which will help you secure your Bitcoin investment and also help you to accumulate more when there's a dip by using your reserved funds to accumulate.
Buying Bitcoin at a high price is not a lose, one just need to use long term investment strategy, Bitcoin is already at a high price all we need is to accumulate as many as possible and then hold.
Those that are involved in trading don't apply any efficient manner of DCA strategy, what they do is trading and trading is trading no matter how you try to decorate it.
And I will advise every newbie to desist from trading and focus in long term investment to avoid losing money and unnecessary thinking.

It is not compulsory to buy from the dip before you will be profitable because as long as you are on a long-term bitcoin investment journey using DCA regularly or lump sum will give you profit, because your profit is determined by the size of your bitcoin portfolio and how long that you have hodli.
I don't see how the knowledge of trading is important for an effective DCA when the DCA method is to just continue buying regularly weekly or monthly as along as you have your discretionary income ready to keep on buying without missing or skipping it. Trading is complex and any investor who is still in their accumulation stage don't need to know anything about trading apart from buying.

What will make you regular DCA more effective is your consistent and persistent ongoing DCA buying with the right amount from your discretionary income provided that the have in place your emergency funds and reserve funds so that when an emergency arises you don't sell part of your bitcoin. Increasing your discretionary income due to increase in your income and aggressive DCA buying without overdoing it will help you reach your bitcoin goal faster.

Patience, discipline, sacrifice, turning deaf hears to FUD and not waiting for the dip but continuous buying with focus of reaching your bitcoin target will be good for effective DCA. This is why new investors only needs to use DCA method to get started immediately to build and grow their bitcoin stash overtime.

Stop referring to bitcoin as cryptocurrency so that newbies or new investors in bitcoin will not see cryptocurrency as bitcoin. When you are talking about bitcoin investment, you need to be specific so that newbies or new investors in bitcoin will not be misled into investing in altcoins, thinking they are investing in bitcoin. There are so many threads in this forum that you can easily talk about cryptocurrency or altcoins, but as far as this thread is concerned, you should always refer to bitcoin as bitcoin so that we will not be distracted. We are all in this thread to share our ideas and experience in the bitcoin accumulation process and also learn from those who are more knowledgeable than us when it comes to bitcoin investment.

It is advisable to focus only on bitcoin market and avoid the urge of venturing into any other shitty assets in the name of investments. Bitcoin has no comparison, it is on a class of it's own. For the number if years that I have been in bitcoin investment I haven't seen bitcoin disappoint it's investors, even if there are temporary dips, it only lasts for certain duration and things goes back up. Therefore someone who is considering his financial future should focus on bitcoin, be it on learning or investment basis. So many scams are happening in the name of crypto currencies and it should be avoided. People should never be encouraged to go and learn anything about those shitty things.

If you are looking for learning about investing in Bitcoin, you can take advantage of more topics in this forum besides this one topic so that your understanding of how to invest in Bitcoin can continue to grow and make it easy for you to draw conclusions. In addition, you can also read on more websites for things like Bitcoin investment and also for the best methods that are still used by many Bitcoin investors today besides understanding the various opinions on topics like this.

And if you really know about Bitcoin and also about the history of Bitcoin itself, at least at this time you can also make a few decisions that at least are buying and holding it for the long term. But if you can't afford to buy in large quantities, you can use the method of buying in installments for a certain period of time by utilizing your own monthly income.

Well I would agreed on some point and also note that it's also very paramount and helpful that as an investor utilizing the dip as it is helpful but it's not a mandate so you can be increasing your portfolio and at the same time maybe up your stakes by buying big during a dip so that your investment keeps on striving big with atleast a slight advantage because everyone knows that the dip is probably the best time to buy Bitcoin to get better figures but most importantly continuation in what you doing is the most because waiting without buying until the dip comes is actually somewhat foolish so making a steady DCA and buying big when the Dip comes is also a welcomed idea well that's for those who are well prepared for their long term investment journey.

Buying on the dip can make an investor more profitable but dip hunting is completely unwise when it comes to investing in Bitcoin. Some investors are still looking for dips as Bitcoin hits its post-2021 low of $16k. If during that period the focus was on increasing the amount of Bitcoin by investing regularly rather than looking for dips then surely that investor could have profited. Because Bitcoin rose from that $16k to $73k. Controlling the temptation to buy from the dip is also a big task if the intention is to profit from Bitcoin. We should remember that Bitcoin will never return to the level it was in 2017. Therefore should avoid dip and start holding bitcoins at the point where one have the money to invest in the position.

It is important to buy the dip if you want to be profitable. Just because you’re using DCA strategy doesn’t mean you should ignore basics of trading and buy bitcoin at ATH. Because if you buy bitcoin at the top, you will be losing money when the market corrects itself. For example you buy bitcoin at 70k, how long do you think you can hodl the bitcoins before the price breaks 70k zone? DCA strategy is good for newbies who are just starting out but for those who have the knowledge of trading, they apply DCA in a more efficient manner.