Topic: Buy the DIP, and HODL! - page 97. (Read 121991 times)

Buying on a dip is definitely a good idea but an investor cannot get advance information about when a dip will occur. And if he can't buy from the dip, his bitcoin portfolio won't grow. This means that this strategy will never be profitable for those who only want to increase their Bitcoin holdings by buying from the dip. If those investors do only DCA then they will have the opportunity to buy on the dip and continue their holdings even if the price of Bitcoin goes up slightly. This will increase their Bitcoin amount. A holder's main objective should be to increase the amount of Bitcoins so that he can build permanent assets in the long term.

You can use the term "liquidation" in more contexts rather than merely talking about futures.  Odohu used the term liquidation in the context of your making a mistake and then having to sell your bitcoin (or your investment) at a time that was not of your own choosing.

I know that many of us (if not mostly all of us) are not using leverage, so sometimes in trading and in margin trading a person could get liquidated also when the BTC price moves against his bet (whether he bet long or he bet short), so when you use leverage, sometimes you can lose your money (or your BTC) much faster than you would be able to lose it in situations in which you ONLY buy spot price.

I think that a lot of us frequently proclaim that if you do not use leverage and you are buying bitcoin regularly, then the most that you could ever lose is 100% of what you had invested - yet if you are engaging in sloppy personal cash management, then you end up increasing the kinds of scenarios in which you might be able to lose your money because you end up forced into selling your BTC because you were sloppy in your own cashflow management.  None of us should want to be forced to sell some or all of our BTC at a time that is anything other than a time of our own choosing.


You probably are correct, except if you mess around with your own personal finances, and if you don't have an emergency fund, reserves or float, then you might end up in a situation in which you are forced to sell your BTC.. . but if you are engaging in sound practices with back up funds, then it is less likely that you would end up in a situation of liquidation.. yet none of us should feel exempt from sloppy practices, and sometimes guys might even overly spend their discretionary income and take out loans, and then if he is faced with loss of income or extra unexpected expenses, then he could end up getting forced into a situation in which he has to sell some or all of his BTC at a time that is not completely of his own choosing.


From your description and explanation, it seems to me that you largely already understand the ideas of liquidation, yet at the same time, it seems that you were getting distracted and confused by the exact word rather than appreciating how it was being used, and sometimes we need to be more flexible with our undersrtanding of various scenarios in which someone might use words in a context other than what you had been expecting the word to be used..

A lot of us actually bought the news at some point but the intention differs. Some bought the news hoping to sell immediately for quick profit and get roasted. Some bought the news because they don't want to miss buying at lower prices even though their intention is for long term holding. Let me give example of such case. Late last year, the news about the ETF approval was all over the place and this triggered some initial moves in the market already. Consequently, many of us increased our buying amount to get more Bitcoin before the price get out of hand because the expectation was that after the ETF approval, Bitcoin might create a new price regime that will totally different from what we had then. Indeed it happened that after the ETF approval, price shifted to a new ATH and since then we have not seen price so low again. Now we had good positions filled at pre-ETF prices which is still sitting in huge profits now because the intention was to buy and HODL. So, one can actually take advantage of the news to increase his Bitcoin.

Certainly, I see a lot of traders coming into the investing space for quick gains etc. I believe what everyone should think of is how to buy on regular basis and avoid unnecessary drama for more benefit keeping our investment healthy for long run. If I’m not mistaking Katherine_Alicia is making use of dca and buying the dip from what I read it’s actually nice if an investor have the available money to invest on regular basis and still keep up with buying the dip, that’s a unique way of growing little investment but, firstly having an extra money to buy during the dip is not actually a force as everyone have their differences and situation, secondly the charts is a personal decision if an investor can successfully watch the charts without being tempted or panic but personally I will advice investors should not show concern when it comes to price movement or should we be talking about charts when investing for the long run? Because I feel it’s not necessary attaching bitcoin chart and investing when there’s nothing common between both.

The only reason why they lose on holding if they buy the news then get panic with it. But if they are fine even if there's fud spreading then continue to accumulate while everyone is panicking with such condition occur in the market then provably they are pretty much fine and no lose will happen. if there's a decline in value then that's just a paper loss and bitcoin ratio still the same with their accumulated asset. Bitcoin is really a safe asset to choose compare on other alts since for many times we see it having a great recovery after it experience a bearish run. That's scenarios should be considered by those who doubt about doing holding since they should consider those great recoveries and bull runs  scenario since for sure they will be fine on holding investment rather than thinking about short term then trade those shitcoins around since they provably be more in losing side with choosing that option.

Well, if you have started your investment then it's good to hear that, but from my perspectives I don't support the ideas of you buying only during DIP as it's not a 100% good idea to buy only during the dip.
And also, you don't need any chart thing as you are not going for trading anyway, traders are the people that needs to read/study the charts before buying, but since you are in for long term investment it would be a good idea to just buy as a you are aware of the DCA strategy.

I quoted the last part (liquidation)

That's a big meaning for investments made in futures, isn't it?

As I have implemented, I buy on the spot exchange and withdraw it to my personal wallet so there is no such thing as liquidation in the investment I make.

Maybe I don't understand or in other words I'm still a layman, isn't Liquidation included in trading because the smaller our margin, the closer we will be to Liquidation.

So the conclusion here is of course that we also have to have a way to continue holding Bitcoin in any condition and if we implement this successfully then we will see an extraordinary process with satisfaction when we reach the target in the investment we make.

Also agree with your opinion that we don't have to monitor charts every day because we are not traders. And also the purchases we make do not need to analyze charts because we are not traders. Yes, in essence we continue to buy and that is a DCA strategy that runs every week.

A little guide on how to go about it would have helped. Your advice to avoid looking at the chart always is valid and for new investor, it is not necessary to know how to ready the chart because it is just like a waste of time. Instead, he can buy from the exchanges using market execution if he choses to use the DCA method which is highly recommended for a new investor. If the option is to wait for dips before buying, this might also be good but a new investor should think more towards the DCA method which is more systematic and have some forms of discipline inherent in it.

In addition, he also have to pay attention to other things that will help him HODL not just how to buy. He might have good plans in terms of long term but if he did not make adequate preparations, such plans can be spoilt. There have been cases of people who plan to invest and hold but have no proper plan and in the end they sell their Bitcoin when issues arise. So, while we focus on buying, we should also make plans for how to protect the investment from sudden liquidation.

I don't see any easy possibility of taking any losses, aside from act of carelessness and just as you mentioned (playing out either in trying to sell too soon to buy back or trying altcoin as a means to become less stiff in your investment). Bitcoin is a safe assets to invest into, if the future is yet unknown but then history holds how Bitcoin has moved from so low to a crazy all time high, now also would serve as a history to the future only to those who seized the opportunity of accumulating  now and hold instead of relying on doubting the outcome of the market, whether profitable or not.

I know you are new to bitcoin investment, but I want you to know that since you are investing in bitcoin for the long term, there will be no need to read any charts before you can accumulate bitcoin because you are not accumulating bitcoin for short-term profit. Bitcoin investment is simple, and since you are a newbie or a new investor in bitcoin, I will advise you to accumulate bitcoin with the DCA strategy so that you will not need to time the market or read any charts to guide you to buy bitcoin at a low price, which may delay your bitcoin accumulation journey because the bitcoin price might not reduce to your entry point. With the DCA strategy, you can accumulate bitcoin even when the price is increasing or decreasing, and it will also help to control your emotions.

what sort of a quote is this? Even in the literal meaning of war or in making plans for your Bitcoin accumilation, you can't factor out the place of making some basic plans that aids you along your accumilation journey? It's not as though you must necessarily over plan but things like;
×. How much is convenient for your DCA
×. How regular you will do your buys per month
×. How you factor your emergency funds and
× even how much that goes into your spending while carrying out your accumilation are all things you need to plan for and ensure that you're disciplined enough to execute it as at when due. Plans are as necessary as executing them.

it's the knowledge that uncertainty exist at the other side of your investment that gives you a strong reason to even make plans for them and prepare on how to protect your investment at such point in time. Even if at some point along your DCA, you're unable to use up to the amount you've slated out, it doesn't mean your investment plan is faulty, you can still buy with what you're able to at such time and when things falls back to normal, you can then go back to your normal routine. If after making your plans you're faced with uncertainty that shakes you, so you care to know what would have been the case with zero pan for emergency funds and other necessary consideration?

I don't want to sound overly optimistic that you can never loose your money in your investment but if you aren't playing out either in trying to sell too soon to buy back or trying altcoin as a means to become less stiff in your investment, the chance of losing in your Bitcoin investment is actually very slim if you're doing the right thing. And I bet you aren't referring to market correction as loss and feel that at such point in time that things aren't going as planned.

You still don't get the point, I'm not trying to distinguish between DCA strategy and other methods of accumulation strategy because each one has there own purpose, also no matter the kind of strategy you feel is okay for you it will be wise not to think too much about the profits because Bitcoin investment is like a journey that comes with a lot of possible good outcomes on the way and if you get overwhelmed or focus too much on those outcomes you may possibly not going to be able to reach your investment destination, when people talk about DCA as a profits making strategy it sounds as if is like some sort of bot that generat profit even without much investment, so perhaps people need to understand that DCA is like a process use to achieve the amount of Bitcoin we would like and from the amount we have accumulated will now determines our profits margin in the future.

I humbly accept your advice. I think you're probably trying to figure out that the excessive attention from bitcoin hoarding techniques can be detrimental to investing. The underlying idea of ​​your words can help deepen the investment strategy which will encourage more DCA management in the long run. I thought that over-prioritizing Bitcoin investment would accelerate the overall growth but I was wrong because over-prioritizing may be trying to avoid the needs of our surroundings but we must give full attention to our real assets. Only after fully maintaining demand and supply can we set aside a portion of disposable assets to store bitcoins, a valuable asset down the road. Also aggressive buying can be positive for investors if they get the expected dips and they have a lot of floating cash which can decent the portfolio in the fastest time.

I could say that is the just the level of their mentality or some kind presumption but however, we are all here to learn from each other and at some point different people tend to to learn a particular thing in different pacing both new and old users, indeed the DCA strategy of accumulating Bitcoin are multifunctional strategy such that any one can come in terms with it with different reasons all together in order to achieve a successful investment, generally the DCA strategy is for all players in the field any one can make used of it to suit them with their own unique reason.

You are absolutely right i got it wrong after making the statement “everyone is entitled to choose an investment strategy that suits them best”. DCA have actually proven to be the an effective strategy not just for those who have limited options but also for people who has other options and have extra money to spare no matter the strategy they adopt. Those set of people may still end up adopting the DCA strategy but only with more money so it’s now clear that DCA strategy is not in any way inferior to other related accumulating strategies.


Why do people see DCA strategy to be inferior to other strategies and think it is sonly used by small investors who don’t have much money to invest, the strategy is very effective and can be utilized by any investor wether rich or poor. Being a strategy that makes it possible for people to invest any amount doesn’t make it to be for certain set of people (poor or less earning people), some big investors or rich individuals might still end up choosing the DCA strategy over it’s multiple options the only difference when compared with normal investors will be the amount they invest at intervals.

Although everyone has their own way and path in using and implementing a strategy to achieve greater benefits in the future, but in general everyone will definitely choose the best path that is easier for them to understand so that it will not make it difficult when they have made mistakes in the past that may have caused them losses due to wrong decisions. Because we don't need to be embarrassed to follow the methods said by others as long as the method is a powerful enough way to make us run very well in the sector we need now.

So we ourselves also don't need to maintain an ego that seems like we are still strong enough with the path we are taking now, but it is also good for us to explore suggestions from others before using them directly because everyone is also free to follow directions from others on anything. However, as long as the advice given is still reasonable enough for us to follow, such as in the example of buying Bitcoin and holding it for the long term by relying on the DCA method, of course it would not be wrong for us to apply it if we really like it.

You're absolutely right mate DCA method is not only for those who have smaller amounts of funds, it can be use by anybody just as you said earlier. actually most people just decide to use the DCA method to accumulate bitcoin in their portfolio not that they don't have the money to invest in bulk, rather they just want to reduce the risk. Well talking about accumulating in a smaller amounts, actually there's nothing wrong with that advice, you know is just an advice so is left for you to decide what's best for you depending on how much you're earning. of course you can invest as much as you can, more especially when it has to do with bitcoin investment because is only the most valuable and reliable asset in Long term holding.

Great quote! I agree, we all have our own roads and sometimes there is no point trying to guide somebody in another way, if the person is strong enough, he will endure and improve upon the mistakes made. If not, then that is not his road to finish.

“In preparing for battle I have always found that plans are useless, but planning is indispensable.” Dwight Eisenhower.

Life is rarely that simple, since what you can afford to invest today may be completely different than what you can afford to invest tomorrow, as anything could happen that could disrupt or wreck your perfectly researched plan.

For this reason anyone that is interested on becoming an investor should consider the very real possibility that not only things will not go according to their plans, but they may even lose money despite picking one, if not the best asset in existence today, and once you realize this your overall strategy and preparedness will improve, however we cannot be rigid about the way we think about our plans as sometimes a complete overhaul may be necessary.

After all, a great deal of the time when I read about what a newbie is planning to do in this market, which often involves throwing away their money in shitcoins, my first reaction is not to try to guide them to bitcoin and a long term approach to it, not a bad idea but not optimal either, instead I think they need to spend some time out of any market and seriously rethink about whether they have what is necessary to succeed, since even if they were to try to become a bitcoin investor, chances are they will fail miserably because they lack the right mindset and the ability to think logically about it anyway.

I think you guys misunderstood what Roseline492 was trying to say, is not like DCA is not for profit making because all the means of accumulating Bitcoin is for profit making perhaps what Roseline492 was trying to say is that DCA profit is not like other method of accumulating Bitcoin profit because you will be buying at different price of Bitcoin which sometimes you can't really tell if you have made profit or not but those who buy's lump sum or  during the Dip can tell for sure if they are on profit or not  and I have also come to realize that the best way to go about the DCA is to hold for long term. In summary the DCA method is also for profit making don't get it wrong.