Topic: HODL bitcoins, you can do it! Look at HODL camp map to build up strong hands - page 10. (Read 3149 times)

The strategy of holding cryptocurrency assets despite market fluctuations without succumbing to the temptation of short-term trading is called HODLing in the cryptocurrency world.  Although this word is a misspelling.  Still it has gained wide popularity through online.  HODLing is a strong determination that metaphorically explores the map of the HODL camp. Literally reinforces the commitment to hold Bitcoin in a strong hand so the market ups and downs represent the ups and downs.  By creating a mental map and maintaining a consistent approach, the investor can live with the promise of a long-term potential profit that addresses the volatility inherent in the crypto space.

The only thing I looked at is the price history whenever I see bitcoin price go down because I know it is not permanent and it will be just like that for a while and when it recovers from that kind of scenario, it always creates another ATH despite it hit the alarming price rate but most people don't know this and they get panicked easily. They use the money they can't afford to lose and some of them even take loans just to invest in bitcoins which is not recommended because you won't get the peace of mind you need when you are worried about your investment. You should just invest the amount you have and you are not planning to spend on some important matters when you follow that easy step, you should be holding peacefully no matter what the outcome of the price is for a while.

There cannot be any exception to the rule that past performance does not guarantee future results because the past is the past and it is guaranteed, and the future is not guaranteed. 

The main thing that we can do in regards to the future is to assign probabilities, and the mere fact that we are able to assign high probabilities still does not make the future prediction guaranteed. 

I will concede that in several ways bitcoin has a lot of high probabilities, depending on how the questions are framed - but there are so many ways that it is not like a rock (and is a rock even guaranteed to keep its form?).. there is electricity involved, networking, computer software, various natural and man made events.. .. and even given all of that, there is quite a bit of solidness within bitcoin as compared with other manmade (or man discovered) phenomena...

I will also not deny that there is a lot of exceptionalism in regards to bitcoin, including that there is no other asset or shitcoin that even comes close to rivaling it, but still that does not make it guaranteed, it only makes it relatively better than everything else.. and so we should be able to have confidence in allocating accordingly.. even while knowing that past results do not guarantee future performance.


You even agree that bitcoin's future performance is not guaranteed.

I frequently like to suggest that we can rest assured with DCA only if we have a bit of a strong presumption that the overall trajectory of whatever asset that we are investing into (in this case bitcoin) has an upward price trajectory - and most likely to be up relative to the amount that we put into it at time that we are going to need to cash out some or all of the value that we put into it... so yeah, of course, we want to think in terms of real value rather than nominal value and we also might not exactly know our timeline, including that our timeline might end up being quite spread out 15-30 years down the road or some other ballpark ideas of a timeline in regards to when we might consider that we are planning to start cashing out of some or all of our BTC holdings... and even our planned timeline for cashing out could end up going out further or might end up getting cut short due to some emergency situation that we might get ourselves into.

No doubt, "hodling" has several approaches, each with its own benefits. I believe Bitcoin is more than an investment or cash. It's valuable for its versatility. Bitcoin can be sold, bought, or used as a store of value

Thoughtful patience is "hodling". We're not just waiting; Bitcoin has the ability to change our wealth approach. Leveraging assets without liquidation is becoming more accepted as an asset class, as shown by this technique. Your questions are valid and inspire investor own growth. Bitcoin should be seen as a money and an investment

Something like this will definitely happen because after all when we are entering bullish then there will definitely be a lot of people who talk positively about bitcoin especially for those who have advantages in media issues because after all they will prepare for what to do where bitcoin continues to soar and prepare to drop it back just like before.

They experts can sometimes change statements directly just for their own benefit but for now it is certain that bitcoin will definitely continue to be hailed because they also realize if they are still an antagonist for bitcoin now it will not be too useful but it could be a trap because when we trust the experts too much it is we ourselves who will eventually become a hassle.
I personally will not be too interested in what they say because however the current statement may change in the future but most importantly our confidence will not fade with bitcoin.

It all depends on what we want in this case.
Doing the same thing as you said is also not a mistake because it is an asset that we have so we are free to do anything and make it a savings tool where when we need money then we can take it little by little from the profits we have. But on the other hand in this case determining that bitcoin is a tool for investment is also not wrong because everything has its own portion and each desire depends on our own perception.

Do what you think is profitable because being in bitcoin is not just to get hung up on what others are doing because in the end everyone has their own strategy and desire in setting bitcoin as their own will.

Yes, I agree that past performances do not guarantee future results but we can agree that Bitcoin is the most established Crypto asset with the highest capitalization thereby giving some sort of advantage because there's only one out of a million chances that Bitcoin is going to crash or that it's going to dip and fail to recover. Again,  when we say past performances doesn't guarantee future results in Bitcoin, there could be exceptions when you're investing for the long-term, whether using the DCA or Lump Sum.

Yes, when it comes to DCAing, consistency is crucial. You won't truly reaping the benefits of DCAing if you simply buy when the price is high and sell when it falls. Additionally, I believe it's important to keep in mind that DCAing is only a method that might help to lower risk and possibly improve profits over time and not a guarantee of profit because anything can happen in the world of bitcoin.

It is good you hit the nail by the head. DCA is the method I will recommend anytime any day to newbies or those struggling to achieve consistency in their bitcoin accumulation. It does not too much technical knowledge neither does it require huge capital to follow. It is possible for every class of income and I consider it a wonderful opportunity for those who are working and doing business and realizing money that is enough to for their basic needs and leave some reasonable balance, part of which can be saved in Bitcoin while the rest kept as reserve.

I have chosen to use the DCA method in buying bitcoin to save for the future, these were funds I would have spent for things that are not important but the DCA method have helped me see what those small regular income can help me accomplish in the future.

You are right, and I think JJG is a senior person who is a motivator in terms of DCA strategy because his advice and what he always talks about regarding DCA is always correct and also makes sense. And I often read his posts because they can help and also motivate me in using the DCA strategy.
Actually, in my opinion, investing is easy to understand and can be done without difficulty, but you have to be consistent, one way is to invest regularly, which is known as the Dollar Cost Averaging (DCA) concept.
And many people feel afraid or doubtful and also feel unprepared because they feel they don't have the time and knowledge to do it, and there are also other reasons because they are not ready to face risks and fluctuating markets.
And none of that will be a problem for them because the DCA strategy makes it easy for them without having to have in-depth knowledge and also a lot of time to do it, the most important thing is to have a monthly income or salary. Being able to set aside money to buy Bitcoin regularly after prioritizing important needs and doing it for the long term, and this strategy is very important for the future as well as old age for a financially happy and peaceful life.

It's really great to see such words from someone who's even older than me in this forum. As I said before, I only give one advice to newbies, as I consider it the only foolproof way to ensure you gain something.

I keep saying that majority of us here don't have the knowledge, intelligence. Or access or wealth. To do anything really special or smart with our money. That's where DCA allows us to take advantage of Bitcoin while not sacrificing all the time and risk that others like traders/speculators do.

DCA takes away all that thinking and analyzing, and, as you say, allows everyone to come back at a time when they are capable of all that risk analysis etc.

It's just, a no lose way to make sure you don't lose time on getting in on BTC and don't lose time analysing and trying to jump ahead of market.

If you are accumulating bticoins then you need to bear all sort of price variations. You may face situations where bitcoin price may go down from your buying price and you start hearing traditional sounds like "Bitcoin is going down and will never recover". That's the test one has to pass if he want to HODL for long term. The real benefit of accumulating Bitcoin is to HODL it for longer duration and its where your patience is tested.


Of course by looking at previous price charts we can make predictions which can be true or false

I was super sleepy last night. Thanks for the FTFY

You sound like one of those BIG blocker hold overs from 2017.


FTFY

There are mostly three BTC accumulation strategies, and for many folks they should not be all or nothing, especially if you are attempting to either mitigate volatility risk and/or to attempt to tailor your BTC accumulation to your own situation.

That is DCA, lump sum and buying on dips.  Of course there is HODL, also even though it does not really help to accumulate but it might remind a person not to panic in terms of selling at the wrong times, especially if in a situation of running out of money while the BTC price keeps dipping.


FTFY... As a reminder the comparison in your linked post is referring to past performance not future performance.


Long time has greater potential to give compounding and exponential value growth benefits.... not guaranteed but surely within a reasonable realm of considerations... especially with something like bitcoin...

See my recent post in which I attempt to point out bitcoin's historical compounding.


There are always ways to lose money and past performance is not a guarantee to future results, even though you are talking about anyone who mostly held their coins more than 5 years is in profits, and these days anyone who DCA's for any period of time (more than a month or two) would be in profits so long as they were consistently buying simiilar quantities of BTC at regular intervals over the whole period of time.. such as weekly.

Of course people are not necessarily consistent, so if some folks might have front loaded their investment at various times in 2021 when the BTC price is higher than now, then it would not be clear how much they would have had to continue to invest in DCA and perhaps other tactics in order to be profitable at today's BTC prices.

That's true. risk will always be present in investing, regardless of the technique you use. However, as you pointed out, there are ways to reduce that risk, including lump sum investment and DCA. It's important, in my opinion, to keep in mind that everyone has a different level of risk tolerance; some people may feel more at ease with certain levels of risk, while others may wish to lessen it.  

In any case, I think it's critical to take into account your personal risk profile. There is no one-size-fits-all approach to risk tolerance. Certain individuals are naturally more at ease with risk than others. It's also critical to consider your investment timeline. When investing for the long term, for instance, you could be more ready to take on more risk because you will have more time to make up for any short-term losses. However, you may want to prioritize risk minimization and exercise extra caution if you're investing for a short period of time.


Nicely said, but you can agree with me that different people have different perspective and viewpoint about Bitcoin investment. There are people who are looking for ways to invest for their future and Bitcoin happens to be one of the most profitable and safest investment that can is believe to have the ability to last almost a lifetime.
Before Bitcoin was even considered an option, people held gold as future investment for years without intentions of touching or selling a portion of it to fund their needs.

The fact you are Hodling Bitcoin doesn't mean you can't have other investments that you can run to whenever you need money. But nothing is more reassuring than having a pile of Bitcoin just lying in your wallet for years and you just live your normal while you just watch your money grow as the years go by. I'll have to disagree with you that Hodling isn't that important, because it's very much important, because I see it as the only way one can almost avoid risk of loosing money when it comes to Bitcoin investment. People who have Hodled Bitcoin for the past 10 years I believe can confirm this, because there's no way they could've made any losses, except maybe their wallets were compromised or something, but if it's loosing funds to the market, I doubt it's possible. I stand to be corrected.

Risk can't be completely avoided but its impact can be minimised. I have see from previous price chart of Bitcoin that risk can be lessened if your investment is spanned over a larger duration. For short term DCA nor Lump Sum is recommended. 
Lump Sum is not a bad option. You just need to prepare yourself for this startegy and then invest when you think is best time to jump. DCA no doubt minimised the risk to greater level because you are continuously buying over a period of time and that gives you a good average price.

You can check my following post to see how much return DCA and Lump Sum give you:
https://bitcointalksearch.org/topic/m.63392684

Honestly, I don't think hodling is that important. I agree that it's a very simple and very profitable long-term strategy with Bitcoin. But people can treat Bitcoin as money, selling and buying all the time. It's also fine to treat it like savings, taking out a part when needed, not when a hodling period is over. And then there's indefinite hodling, normally explained by phrases like 'if you wait long enough, you won't have to sell your BTC'. But what does it mean? Using it directly and exchanging for goods? Taking loans based on wealth you have in BTC, like rich people in the US do with traditional assets? Never using your Bitcoin (then what's the point of having it)?
There are many questions that people need to find their individual answers to.

So do I, honestly speaking I have never heard any advise that's quality compared to the informations I am getting here, because now the more saving rather than spending.
Just like the topic, which says what it says, one can not hold Bitcoin if he's not ready for holding. Holding is saving if one can not save he can not also holding Bitcoin.
However, saving fiat is more easier than saving Bitcoin because some fiat currency will not add any interest and that will make many people not to spend their fiat currency as they will not want to lose all of them.
But when one is saving in Bitcoin and profits starts coming, he/she will want to sell little because he will be thinking that more profit will come, which is not so. And I also think that's why the Op created the thread and put the topic this way. There are many who's finding it very difficult to hold Bitcoin because ones small profits comes in they will sell, especially those who's invested with lum sum instead of DCA method, as they invest big they also sell big.

Wow, this is a really insightful comment and I think you've covered some important points here. I completely agree that there are different ways to approach investing in Bitcoin, and it's important to consider factors like cash flow, personal risk tolerance, and portfolio composition when making investment decisions. It's also worth remembering that investing in Bitcoin is still a relatively new and highly speculative investment, so it's important to approach it with caution and to be prepared for volatility. But it's clear that you've done your research and thought carefully about the best strategy for you, and I think that's a great approach.

You are right! The quality of information in this forum can hardly be gotten from any financial advisor. Just that many people have not really been paying attention or take what we have here seriously. I know the transformation that has happened to me ever since I became active here. My spending habits have also changed as I now thinking more of saving, and have been able to identify what is important and what I do not really need even though I have been wasting money on them in the past. The concept of emergency fund is also one great thing I never considered in taking my investment decisions because I never really knew about it. As simple as it may sound, emergency fund is like additional security on the investment because without it, the investment can be terminated any time. There are many things I have learnt in this forum that I will not be able to narrate. I should be among those that consder themselves fortunate to be in this forum.

You keep framing a dichotomy between lump sum and DCA, yet even buying on the dip has a lot of potential for importance.. and I hate to narrow down too much in regards to when buying on the dip might be a better frame, except I think it should be a strategy for someone who largely already has prepared for up rather than someone who is not adequately prepared for up. 

From my perspective, the person who employs buying the dip without adequately preparing for UP is either employing a kind of gambling strategy and/or a waiting strategy.. and waiting strategies kind of annoy me because they are likely not bullish enough on bitcoin (from my perspective).

Going back to the $100k or the $113k in 6 months example, like I mentioned such a person could front load a bit (such as $70k) and then dedicate the remainder towards DCA and buying on dips and then reassess after 6 months.  So if the remainder 43.5k is divided into 2, then each of the portions would be $21.5k, so DCA could be $827 per week for the next 26 weeks, and then the buying on dip portion could perhaps be structured to go down to around $31k (which is right around where the 200-week moving average is right now... so if the guy is a bit anxious that dips might not happen, maybe he ONLY goes down to $35k.. and yeah we already know that right now it could well be possible that sub $40k might never be reached again; however, if the person is a bit more comfortable with his level of front loading, then he could structure his buying on dip to go down to $28k or something like that.  maybe the guy who decides to ONLY go down to $35k might choose buy on dips every $500 dip starting at $46,500 (presuming that his lump sum of $70k had been executed at $47k), so then that would be 23 buy orders which would be $935 each ($21.5k / 23).  Alternatively, if the guy is quite satisfied about his level of preparation for up, then maybe he starts his buy orders at $44.5k, and then has them every $1k down to $28.5k, which would be 16 buy orders of $1,344 ($21.5k /16).

My main point is just to show that buying on dips can have quite a lot of importance, especially for the guy who is already prepared for UP, but at the same time is wanting to structure some advantages in case the BTC price runs against him. .and yeah, he is not going to make any kind of killing off of buying on dips because he likely is losing way more value in his holdings from the BTC price going down rather than UP, but at the same time, he ends up employing some tactics to lower his cost per BTC, while still holding and still investing and refusing to sell, by buying at various price points on the way down in accordance with his own views of his situation that includes some calculations of odds of where he believes the BTC price is and where it might go and without being so cocky as to presume that he knows the answer but at the same time putting his money where his mouth is.


I doubt that a financial advisor is going to be helpful for most people who are able to interact with a forum like this, unless they are just wanting to get sold on inferior ideas and inferior products, and sure there might be some financial advisors who will be ready, wiling and able to provide accurate advice that includes BTC accumulation and maintenance strategies, but a lot of them are likely wanting to get their clients into products that justify their fees.. .. and don't get me wrong, I am not against knowledge and/or brainstorming with folks.. but I would think that there are likely better ways to spend time, even though surely many people are busy with their own lives too.. so they might end up not spending enough time in regards to some kinds of knowledge that should be fairly easily within their grasp.. and sure consult with a financial advisor, but also consider preparing for any such consultations in order to really be able to engage in critical thinking during any such consultation rather than getting sold some good, products or even advise against bitcoin and into shitcoins that may well not be financially good for you.


For sure, for anyone who has BTC accumulation goals, when in doubt DCA, it is likely superior to both lump sum and buying on dip for the vast majority of folks, especially in their earlier stages of building their BTC holdings, especially since an overwhelming number of normies do not even have any kind of realistic option of lump sum (without devolving into gambling) and if they do have some lump sum available, it may well even be better to figure out some kind of a DCA way to strategize their lump sum that would not just be putting it all in at once which might convert them into a waiting strategy, especially if they over do their lump sum from the beginning.. ..

And, any how, DCA can become even more powerful when supplemented with lump sum and buying on dips, yet we would still have to presume some abilities to incorporate those lump sum and buying on dips, which tends to be some kind of lump sum being available or perhaps some sufficient level of already having had bought BTC in order to justify already largely being prepared for UP... so the punchline, when in doubt DCA, structure your DCA to a reasonable level of your disposable income (and maybe you have to adjust up and down on a weekly basis depending on cashflow variations), and don't be waiting around, especially when it comes to BTC and making sure (at all times) that you are sufficiently/adequately prepared for UP... even if the BTC price is dipping and continuing to dip, make sure to continue to prepare for UP.. which DCA does seem to help in accomplishing such.

This is why I advocate for preparedness before investing in bitcoin, though your funds for should not be very satisfactory for you before you can invest in bitcoin, bitcoin investment required funds and basic understand of this digital asset, make sure that you have sufficient emergency fund to carter for needs when the arrive for a particular and also increase your income by looking jobs that will increase your earnings to enable you hold for a long time, without seeing this foundation, it will be very difficult for you to hold for as much you want, complain must come more especially when their is pressing needs, if any one want to build an asset in Bitcoin I think all these aforementioned above should be put into consideration so that one can hold with ease without obstruction of any kind.