Topic: Buy the DIP, and HODL! - page 89. (Read 129874 times)

When it comes to investing in Bitcoin, it is very important to maintain regular investment consistency. Investing small portions regularly over long term eventually turns into a big asset, besides increasing our investment portfolio in long-term holdings due to Bitcoin's high potential, it gives us a lot of profit.

But this requires long-term planning, and financial stability is essential because we have to maintain it regularly. A certain amount should be kept invested in DCA on a regular weekly or monthly basis. In this way, it will become a habit of ours to invest regularly, as a result, the investment pressure will be reduced and you will be able to continue investing for a long time, and continue holding.

So a new investor must make a proper long term investment plan before investing. And by continuing to invest in Bitcoin and continue to hold for a long time by running DCA, an investor will definitely benefit in the long term.

We should invest in such a way that we never feel pressured to invest. This cannot be done when we want to stay away from investing when it feels pressured to us. Before investing we can plan long term but there is no problem if we invest consistently with less amount of money. If we keep depositing money little by little, then the amount of money will be much more at one time, similarly if we continue to invest little by little then the amount of investment will be much more at one time. Basically our objective is to invest and maintain investment continuity as well as hold investment for long term. It is difficult for many but the simpler we take it the easier it is for us to do it. Since investment is our personal matter, no one outside will interfere with the amount of money we have invested here, so we can make long-term investment plans if we want.

From investment experience, it is very important to set goals and plan properly before investing. You have money you can invest anytime but if you don't have good knowledge about investment or if you don't have skill in this matter but you can't be very successful in investing. No matter which workplace we go to, I am not allowed to do that work, but I have to take training for that work first.  
After training, when the organization or certain organization feels that they can do this work by me, they allow us to do that work. Who should we take investment so seriously? I learned about investment, I should do regular market observation for a few days before investing.  

After regular observation of the market one should try to invest with some amount of money but it is a very small amount of money this is practical application.  
If the investor feels that he can invest properly and can accept all the temporary loss or risk then he can step to the next step of investment later he can start the main investment.

Buying bitcoins on credit has never seemed acceptable to me as employing bitcoins. So far I have always told the people I have advised on investing that there is no problem in investing but be careful not to let it become a problem for you. Set aside an amount of money that if you don't have, it won't affect your life too badly. No matter how close you take the loan, since money is involved, you can definitely face a lot of problems in paying back this money in the future. It may also happen that after you invest your investment is at a temporary loss at that time you are pressured for money but you are forced to sell your investment and then repay the loan. So everything should be planned well in advance, if you start investing 6 months or a year late then no one will stop you but if a due date of loan repayment is delayed then the person who gave you the loan will not talk to you.

You are actually correct I mean that's what most people practice or do nowadays but then again, what if there expectations is or are been cut short I mean after loaning to buy Bitcoin hoping to see a bullish movement or market but unfortunate becomes the case what will happen to them. Most people will never learn in this life that's for sure and doing this simply means one don't know how Bitcoin works and i also see it as an unwise act the fact that Bitcoin is one of the best asset so far, with good potential doesn't me we should go about it in the wrong way. I believe there's always a best way to go about everything and for Bitcoin I think the best way to go about it is to invest and hold for long term no matter the amount you are using to...

I don't hesitate to laugh uncontrollably at the foolishness of anybody that makes that statement. It's just trying to prove that simple interest is better than compound interest over a longer period of time.  It's very funny that people are so narrow minded to reality.

Besides the financial benefits of investing in Bitcoin, it gives us some good living benefits like the freedom to focus on other careers of choice and make money for yourself without having to be responsible for your investments profitability, removal of emotional stress of having portfolio reduction or total funds loss when you enter a bad trade and  having to go through the long process of learning trading and losing a fortune to it.

Generally, investing in Bitcoin is much easier than trading and more profitable too. Historic data celebrates people who have made fortunes from investing in Bitcoin and rarely have I seen someone celebrated for amasing a large fortune from trading.

Surely one of the best, if not the best, of teachers is experience, so each of us should be taking the advice of others with a grain of salt, and not presuming them to be able to determine what is best for us, yet at the same time, sometimes many of us can become stubborn and end up doing something that ends up screwing up, and sometimes we will repeat similar screw-ups before we finally learn our lesson, and so surely a forum like this allows us to explore our ideas, and figure out the extent to which other forum members address our issues, yet so many times, I find that most of the more difficult problems (and dilemmas), I have to figure out my own balancing of the trade-offs.... and surely sometimes other members are helping me indirectly when they might explain some of their thinking process or how they went about resolving one of their dilemmas..

Let's say that a member suggests that you should figure out your cashflow and expenses for the next 6 months and attempt to figure out your discretionary income for each pay period, and then when you are starting out to start to invest with less than 50% of your discretionary income in case you make some mistakes, yet you believe that the recommendation is too conservative so not ONLY do you not project out your cash flow, you also ballparkedly estimate an investment rate of around 80% of your discretionary income, and maybe that sloppiness ends up working out, yet it could blow up in your face in a major way in which you end up having to sell some of your bitcoin or take some other emergency measures, or it might just blow up in a smaller way in which you have to move funds around and sweat a bit for around a month or so to make sure that your income is higher than your expenses for the period until your next paycheck.  Sometimes the learnings sink in much more when a guy goes through some scenarios in which he is able to recognize mistakes that he actually made and reasons that he might want to avoid making those kinds of mistakes in the future.

So sometimes we can say to another member:  "you dummy!!!  Why didn't you listen to other members", and surely sometimes the member is ONLY able to absorb so much of the information about what to do or how to do it without plugging the information into their own practices, and they might not even be able to see the exact fit of the information until they had gone through some kind of a similar situation in order to figure out why certain practices can end up saving them but increasing the odds of profiting in financial and psychological ways... including that sometimes the result of profits (or being in a better position) are not apparent for quite a long time later, maybe even years and years later... so in that sense, sometimes the first several years in bitcoin, there might be a lot of work that needs to be done to both build strong cashflow management practices and to also build up a bitcoin portfolio holdings (that might not always be in profits), but then years and years down the road there can be recognition that the earliest times of preparation ended up paying off quite significantly in order to establish good systems, put them into practice and maybe even sometimes being able to see how some of the earlier purchases ended up with really high appreciation rates and added to the overall stack of BTC...

....such as I remember sometimes being a bit worried that some of my earliest bitcoin purchases in 2015 were not really going to add up to much, yet at around that time, I had put a system into practice so that if I had any kind of extra cashflow that came to me, whether $20, $50 or $100, then I would divide that amount in half in order to buy bitcoin with half of it right away (or within a day), and then put the other half into my cashflow reserves, which likely was going to be needed for various extra expenses within that month or the next month.  So at that time, bitcoin prices were mostly in the mid-$200s, so if I ended up buying $25 worth of bitcoin, that would mean that I got right around 0.1BTC, which seemed so small, but still a continued stacking process through that whole year in which my cashflow was fairly tight based on some then business related issues that I was having, and it did not help matters financially or psychologically that BTC prices were down, too... not until much later, there was a realization that the low BTC prices were just a temporary (even though seeming long term) phenomena.


It is a mistake if the BTC price does not end up dipping, and they had been holding too much cash waiting for such a dip that did not end up happening.

Sure there are guys who wished that they had more to buy during dips, yet a balance still needs to be struck in regards to continuing to stack bitcoin and not getting too caught up upon the price, especially for newbies who likely are still in their earlier of stages of stacking bitcoin and still need to build up their BTC stack to prepare for up. 

Repeatedly, I describe that an overwhelming majority of the world (including folks who already own some bitcoin) are overly prepared for down and insufficiently prepared for UP, so each person needs to assess his level of preparedness for up in order to assure that he is sufficiently prepared for UP, and he ONLY has himself to blame if he is sitting on too much cash and overly preparing for downs that may not end up happening.


Frequently newbies get overly obsessed about the extent to which they are in profits or not, especially in their first years of investing, which frequently causes them to do dumb things like overly waiting for dips that might not happen and sometimes selling too much too soon because they become too worried about either locking in profits or trying to buy back more at cheaper prices that might not end up happening within the timeline that they expect such cheaper prices to happen.

Ongoing BTC accumulation is likely a much better practice that also puts the BTC accumulator into a much better and more consistent mindset too.. yeah, it might not always be short term profitable to remain focused on ongoing BTC accumulation, yet I doubt there are very many traders who are going to be able to show better BTC portfolio as compared with the buyer accumulator, especially once we might get into  longer timeframes such as 1-2 whole cycles... and yeah traders frequently think that they are so smart in the shorter time frames, yet selling too much BTC too soon has a pretty fucking large costs as compared with the HODLer who did not sell, even though such traders are likely still showing dollar profits.. but they tend to be way smaller than the longer term BTC HODLer.. and we have so many of those examples in BTC's history.. even a recent example of so many traders selling large chunks (if not all) of their BTC in the lower to mid $30ks in the October/November 2023 timeline and maybe they bought back in, yet I have my doubts about their outperforming the buyers/accumulators/hodlers.


Surely investors need to consider position size when they get started, and whether they invest with lump sum or DCA, they may still need to monitor position size, yet at the same time, they can still figure out their position size, and not become overly concerned about the extent to which their investment is profitable, especially in the first whole cycle, and also they might get distracted or deterred from investing in something like bitcoin if they are overly concerned about whether they are profits or not, especially if they come to bitcoin and they already know that it is likely to be extremely volatile in either direction in the short term, which could cause their investment to not be in profits during much of the earliest years, and surely if they are not comfortable with the level of volatility, the level of uncertainty or their desires to make sure that they are in profits in shorter timelines, then either they should adjust their position size until they are comfortable or perhaps get out of the investment (or don't even get into bitcoin) if they cannot figure out a position size level that allows them to NOT be overly obsessed with their BTC investment being in profits in relatively short timelines such as in less than a whole cycle.

apart from the fact that he quoted the wrong person, it seems that he has misunderstood the meaning of Thinking about the Bitcoin price as used in the context of the quote he is referring to.

The person he's quoting is suggesting that it's best to be concerned about the price that one is buying his Bitcoin as it's a way of buying at a cheaper rate which is same as timing the market before eventually buying. He on the other hand is looking at it from the angle of doing proper planning and ensuring that we're investing with the right amount. Those are two different things and As we continue in our discussion, it's best we try to understand the angle the next person is coming from and come into the discussion with a balanced understanding so our point don't go off as one that doesn't relate well with the line of thought we've established here.

I just want to bring to your notice that you have mis quote another user, please you can check very well to avoid further mistakes in subsequent times.

Secondly, Bitcoin investment shouldn't be seen as a burden where you can be considering much about capital, invest only with an amount that you can be comfortable with conveniently without seeing it as a stress, that is one of the reasons why the DCA strategy dominates our discussion because it allows investors to gradually grow or increase their Bitcoin size as little as possibly they can be over period of time.

We have to think about the price that's why when we invest in anything we must first think about how much capital he wants to invest and we have to invest carefully. Many times it is seen that we invest in a hurry without thinking about the capital, due to which we suffer a lot in investment, so before investing, we must think about how many dollars we want to invest and how much capital we will get through this investment. We have to confirm that. When we invest, we invest to earn a substantial amount of profit from the investment, so we have to invest in such a way that we get a substantial amount of financial gain from the investment, and the success of our investment makes others interested in investing as well. Due to our big decision many times we suffer a lot in investment so due to our right decision we must check the market and invest with a long term plan.

I don't believe that trading in Bitcoin will be more profitable than investing and hodling for a long time and it wrong to say that investors who's aim and objective is to accumulate Bitcoin and HODL for long gets less profit.

As an investor your major concern shouldn't centralize on profit making at the moment but how you can be able to accumulate more Bitcoin for long.

People that trade in Bitcoin believes or think they get more profit compare to investor who accumulate Bitcoin and hodl but to me what they get is pinnut compare to what HODLers received, and making more profit in Bitcoin investment depends on how much amount of Bitcoin an investor was able to accumulate and hodl for a longer period of time. Bitcoin investment is not a get rich quick scheme.

with a financial strength that can only work with $10 to $100 at Everytime you're to buy Bitcoin, thinking about the price or monitoring the price for the best spot that's most convenience before buying wouldn't help you buy at a seemingly best price. You might be lucky that for some instance, you might buy at a lower price but even at that, because of how small the amount you're using per buy his, it will only give you a slight difference in the price you've bought Bitcoin but in terms of looking for what point you will buy enough Bitcoin, it will take a very longer time

This is what I mean, if we assume that you had $100 you've decided that you're going to use in buying Bitcoin but then, at the time the money is available Bitcoin went up to $66k. Because you feel that Bitcoin can still dip further to $46k, you might get tempted to keep waiting till Bitcoin goes down to somewhere close to that. While you're still waiting, you might end up staying for a very long period of time because we know that we can't be too sure if Bitcoin will DIP further in the next moment or go up the more. Chances are that in the process of waiting, you might not be up touching a portion of the money if care isn't tajen. On the other hand, If you ignored the price and just buy at the time you have the money, you've saved yourself from unnecessary monitoring of the price and can now focuse on getting more money you can use in your next buy.

It's not as though it's totally out of place to look at Bitcoin price, and if we're able to, we can buy at a DIP price which will be to our advantage. The only issue is when you allow it deter you from buying as at when you ought to buy all because you want to be at a small profit.

There's a place and advantage for both Buy the DIP, and DCA. It depends on the person's personality and in which strategy he/she is most comfortable. It might be utilizing both for some individuals. Plus there's also the current situation of where the market is in. Because the bear market is over, and the Golden Opportunity of buying the DIP under the 200-Weekly SMA is gone, people will now need to DCA in regular intervals.

BUT if they want to mix in some Buy the DIP during market mini-crashes under some price-point, then why not? Buying more units of Bitcoin during DIP periods is definitely not a mistake, no?

Hahaha...so you are telling me that if I analysed the market and decided to outsmart it by investing in just a month (or even less) after carefully anticipating what would happen, I am not an investor? You are joking, I guess the ugly teachings here and other similar threads are now confusing many of you.

First, you should know that investment could be short, medium or long-term, it's part of the long-term investment plan that you HODL. Mind you, HODLing is optional, it's by choice and it doesn't make you any better investor. What makes you a better investor is what you earn from your investment and the consistency of the earnings.

While you are busy downgrading the person who invested his money and liquidated it in a short space of time and continues to repeat the process when the opportunity presents itself, they would have made multiples of what you who are HODLing make in a year. But what I don't like is collecting loans to invest, we should invest only the amount we can afford to lose, not the one that will mount pressure on us.

You’re absolutely right. Thinking or talking about withdrawing or selling your Bitcoin when your accumulation hasn’t reached a fuck you status is more of a trader’s mindset rather than an investor’s. Investors should prioritize consistent buying using the DCA strategy and probably when they’ve achieved the fuck you status or a state of over accumulation, then they may consider selling when there’s need to.

Investors focuses more on the long term trajectory of Bitcoin, the stability of their portfolio and how best to accumulate more Bitcoin in the long run, while Traders on the other hand focuses more on short term benefits of the investment. Investors are known for their adoption of the DCA strategy which encourages them to consistently buy and accumulate more Bitcoin without considering the short term fluctuations in the market, while aiming for the fuck you status which is a great milestone for investors, and achieving this status come with so many benefits, which involves

1. Freedom all kinds of financial stress or pressure.
2. ⁠Having financial security and a solid backup.
3. ⁠Having the ability to make certain choices without feeling any sort of financial hold backs.

And until investors has achieved this status and has access to these benefits and privileges, it’s essential to prioritize consistent buying via the DCA strategy or whatever strategy that works for you, try as much as possible to avoid any kind of emotional decisions, always have the long term perspective at all times and also focusing more on wealth accumulation rather than selling for profits.
And When you’ve noticed that you’ve met your financial goals and your portfolio is in an over accumulated state, then you can consider selling or rebalancing your portfolio

Trading is not a good choice for any type of people. Especially for a long-term investor, entering the trade is not advisable at all. Trades are high risk and people are lured here most of the time, considering these factors I think trades are enough to destroy an investor's investment. The trade will not only destroy the investment but also expose you to huge losses. I personally do not support trade and I am very afraid of trade. Because here I feel more likely to lose than gain. Although risk is reduced by gaining knowledge about the trade, trading is still riskier than investing. More profit can be gained from trading but the risk of losing here is more. Long-term investing is just the opposite. Although the amount of profit is less, the chance of losing is very less. So I think an investor should not enter the trade at all. A trader can opt out of trades and enter into investments, but he must enter into investments with the intention of going long-term. When a trader becomes an investor, it becomes easier for him to invest, because a trader's risk-taking capacity is high and the resulting market dump will not panic him. He will enjoy this period by learning the methods of investment.

Bitcoin is designed in such a way that you can buy as little or as much as your financial strength can get you. If your financial strength is $10 to $100 you can buy with that amount since I believe that you are utilising the DCA method to invest in Bitcoin and I also believe that you are investing for the long term. How low do you think that Bitcoin can go, that your $100 can get you enough Bitcoin stash that will be enough for you? What happens if you keep timing the market and your expected price level don't materialised, does it mean that you won't make the investment? That's why investors are encouraged to invest according to their financial strength, and not to time the market . And have long term mentality is encouraged.


Yes Individuals are always encouraged to do their own research when necessary or when you feel that someone advice could be misleading. But there are some certain cases that even with your own researches, you will still not get it the right and at that point you will need to listen to someone that's more knowledgeable than you. when you're doing the wrong thing and someone that's more knowledgeable talked to you about doing things with the right approach that will be more efficient and productive, would you still remain in your ignorance and do things your way? You can only neglect people's advice, when proven beyond reasonable doubts that they are telling you to do the wrong thing. That's the more reason why places like this exist so we can improve our knowledge and approach of doing things which ordinarily we don't know.

Mental and financial aside, I think a beginner who is interested in investing in bitcoin must have a proper investment plan. They must have a goal for investing and a time frame that they want, this is intended to get the best approach to their investment. All investment plans must also be adjusted to the budget they have without ignoring the need for a reserve budget, this is important so that they do not destroy their investment plans midway.

A basic understanding of what they are investing in is clearly important and they should have learned that before they decided to invest. It makes absolutely no sense to invest in what you don't know, so they should already know what bitcoin is and how to buy and withdraw and store it.

There is nothing wrong with thinking about prices because basically the market has different cycles. Prices fluctuate all the time and investors need to know when is the best time to do so. You can't completely ignore the price when your financial strength is only $10 to $100, meaning the lower you buy, the more bitcoin you have. It is not always right to follow other people's advice, of course because you have to do your own research with a good strategic approach.

Yes!
I remember some thread on 4chan from late 2017 the OP of which claimed that his brother sold his house to buy bitcoin and when the price plummeted, he committed suicide. Never invest the money you owe.

Those who take loans are hoping that the price is going to rise and when they get profit they repay the loan. It's such a bad idea to me. Do they ever consider that they can take a loan and buy Bitcoin at $65k and the price reduced to $50k? If it is 10% interest in a year the price might take over 6 months going to one year returning to the buying talk more of making profits.

My solid advice to investors is to get out of debt. Invest with what you have. Its better to have X amount of Bitcoin without debt, than having an X + Y amount of Bitcoin with debt. It may turn out to be X - Y which means there won't be any profit at all if it he doesn't get the profit within the loan timeframe. Such investors will end up paying the interest plus the capital without any profits.

They are exposing their selves on more higher risk if they let their balances stay on exchange since there's huge risk to lose their money since those platforms is vulnerable for attacks or scamming by its own owners. So to avoid losing money from unwanted incident grabbing secured wallets which they have full control is a must. People need to remember that Not your keys, not your coins so they doubt to trust third party platforms when dealing their funds.

So everything to go smooth a good wallet should be acquired or used so that there's no other bothering feeling will disturb them and they can stay on their lane focus on their accumulation without thinking other stressful events which is not necessary to get. Being in control is somehow make you successful that's  why always choose the best and don't get lazy in terms of security since this is more important especially that we are for long term investment with bitcoin.