Topic: Things to keep in mind before accumulation of Bitcoin (Read 1272 times)

The best time to accumulate not only for bitcoin but all crypto coins are at the stage of price decline. The reason why wise investors prefer to buy at a low price and only sell at a high and profitable price. And as proven from successful investors, you will only be profitable from crypto investments once its bound for long term hodling or investments.

it seems you are right, over time sometimes investment plans can change. And it looks like I really have to recalculate and adjust how much % I will invest in bitcoin. so far i'm just collecting bitcoins continuously without thinking how much i'm going to target. and adjusted again with the amount of other investments that I have. but for the target time frame I've decided for the long term around 3-5 years. and there may be adjustments or changes if something is urgent. such as global security conditions or global economic crisis and the like. well I hope over time I can understand it.

Other than the lack of knowledge, some investors are just looking for a small term investment, invest big and reap big depends on their timeline. We know that the chances are not big but the risks are worth taking as we don't know what's ahead of us. So I really think that's the possible reason why some of them sold their assets when the market starts to decline. Other than that, there are investors who don't really know much about bitcoin and its risk, just like the way you said.

What caught my attention is the huge accumulation gap between 2019 vs 2022. It shows the interest to invest on btc has grown stronger despite high interest rate.

People are really accumulating btc in 2022 which could be a sign of what to expect in next bull run.
Some people don't see the importance of dca on their investment when the value is a lot lower than the point of buying, dca helps to average to reduce the value from high point to low or average.

I have no problem with any of what you are saying Jeger.Kiting.. .however you seem to have some kind of an underlying assumption that there would be a better asset to go into or to be in rather than bitcoin.. like you spend time in bitcoin for it to earn you money, and then you get out into something safer.

I have no problem with diversifying out of investments or diversifying in order that you do not have too many assets (value) in any particular investment, but there is no real solid justification that there would necessarily be any need to completely get out of bitcoin, whether we are referring to a 3x to 5x BTC price appreciation from here.. or we are referring to a 10x to 30x BTC price appreciation from here.

And sure, regarding if you are in an accumulation stage or maybe a maintenance stage or a liquidation stage, these are on a spectrum, so you could be more heavily in one or another, even if you are engaged in behaviors that might be more symbolic of one of the other stages.

Let's say, for example that you have $4k in funds on hand that you can have to spend for bitcoin, and you have an income in which you positively know that you can invest $8k over the next year for bitcoin, so based on that information, you decide that you are going to invest $1k per month for the next year into bitcoin, and each year you authorize a similar quantity of investment into bitcoin, and after three years investing into bitcoin, you figure that you have enough BTC because you have invested $36k into it (over 36 months), so after three years, you start to consider yourself to mostly be in a kind of maintenance stage, and your conduct to continue buy or sell BTC might still have some kind of foundation in your feeling a certain amount of comfort that you have accumulated a quantity of BTC over 3 years in which you are feeling comfortable about where you are at and you are able to plan your buy/sell strategies with more flexibility after 3 years than you had when you had started investing into BTC. 

In other words, you end up having more options once you have spent three years building your BTC portfolio, and your thinking about your BTC portfolio is going to be much more informed and specific to yourself once you have already spent 3 years building up the size of your BTC holdings (and perhaps some of your other life circumstances and other investments have changed over that three years period of time, too?).

Unfortunately, BTC has been portrayed by the media as something that can ruin one's life due to its volatility. This kind of opinion was given by most people who unfortunately invested into cryptocurrency without even knowing what they are investing on.

Back in 2017, the price of 1 BTC was around $4,000 and in 2018, it reached an ATH of $19,000. Unfortunately, that was also the time that most and majority of the people invested and after a few months, its price crashed. For the people who blindly invested into BTC without even knowing, they are also the ones who spread news about it being a scam.

That's a simple way to collect bitcoins assuming that $10 per week is enough than nothing, this is just a small assumption so that many people understand better but if it is increased for example $40 per week 52 x $40 = $2080, everyone can calculate it on a calculator here https http://dcabtc.com/ it's easier what to plan in this DCA practice.
But don't ever think about fluctuations we are more focused on every annual plan target in collecting Bitcoins in this way, rest assured this year we will have an accumulation with a lower average purchase of under $20k.

Obviously it must be known that Bitcoin investment has risks even worse than other commodity assets but we see the future prospects of bitcoin are much better but for anyone who invests in this matter think about this risk before doing it, don't just want to be sweet because it's called We have to think about the advantages but also the disadvantages, but we also have to understand how the journey of bitcoin which later becomes fluctuating, the market crashes, lots of funds, fomo and many others this is actually not easy but if we research we will understand the situation.

I think that's the most important thing the extra money should be a reference for long-term investment if they believe in bitcoin, I do this because there is extra money every month that I get so obviously this is my consideration and of course I have done it.

Well, the first thing to know is that investing in Bitcoin can be risky, it is not for everyone. If you are planning on investing, you will need to research whether or not this is the right choice for your situation. You will also want to make sure that you are comfortable with the fact that the price of Bitcoin can fluctuate significantly over time (and also take into account any fees associated with buying and selling).

If you have some extra cash lying around and want to invest for the long haul, it is definitely worth considering. But whatever you do, remember that Bitcoin and other cryptocurrencies are already established ways of storing value. Like any commodity, they can fluctuate in price, but the long-term value is clear. And since Bitcoin is still a relatively rare commodity, the price may rise even further as new users are drawn into the fold.

In fact, determining whether you are in the accumulation stage may not be accurate as there may be some overlap in where you move from accumulation to maintenance, and your perception of where you are may differ as a result of changes in BTC price or otherwise. You can spend money or retire if you sell when the cycle is at its peak. It's also a good idea to sell when the price is high enough to keep you from having to work again.

Don't confuse quantity with your ability to think for yourself and to budget for yourself based on your own circumstances and budget... and yeah, if you do not have any extra money then you will not be able to buy any bitcoin because you do not have any discretionary income.

One of the things that anyone should attempt to do (who is able) is to create discretionary income in order to be able to invest into bitcoin.

Bitcoin is amongst the best of investments ever that is available to regular and to poor people so long as you figure out a place to get bitcoin with low fees, you are going to be able to buy in small amounts, such as $10 per week.  Most investments you are not able to buy in such small quantities, even property or equities and getting a 401k account or whatever.  Bitcoin is available to everyone... you just have to figure out a strategy to take advantage of it, and if you are able to be more aggressive than $10 per week, then you work up to $100 per week.... but you are going to be the victim of your own errors if you spend too much on bitcoin and you do not prepare yourself with an adequate emergency account.. if you need cash at a time that is not convenient for you. 

So you need to figure out your budget and attempt to be as aggressive as you can afford to be without being so aggressive that you over do it.. and it is up to you to calculate that you are sufficiently aggressive in your BTC investment without getting greedy.

Whales work in such way that they can accumulate more Bitcoin at a lower price. They have the advantage to buy more BTC at bulk when many panic selling. However,this time many now where into holding as the bear market still ongoing and many aims to still be in profit soon. With many factors like pandemic and economic crisis in many country it will be hard to accumulate much BTC with all the inflation happening.

Personally, I believe that you should figure out your BTC accumulation targets and then get to a point in which you might be building the size of your BTC stash prior to considering selling.. so if you have an investment timeline of 4-10 years or more, then you can figure out your selling strategies when the time comes and after you have built up the amount of your holdings in order that it might make sense to start to cash out portions of your holdings.

If you are figuring out when to sell, the you may well have not really figured out your balancing of allocations or even knowing why you are getting into bitcoin in the first place...

If you come into bitcoin, and you have no other assets then you might need to figure out some balance in assets and how much you want to have in bitcoin compared to other assets, but you would not have to figure that out in the beginning, especially if bitcoin is your only investment.  If bitcoin is your only investment then you should figure out what your target investment building out amount is going to be and then work towards building to get to your target level whether it is a value of $10k, $20k or even $50k prior to then wanting to diversify into other assets (and I am not talking about diversifying into shitcoins, even though I understand some people will come to the conclusion that they "need" or "want" shitcoins in their investment portfolio).

Usually you will diversify into asset classes that differ.. such as property and equities.. but you likely need to build up to a certain target amount that only you can figure out prior to figuring out what you want your allocation to be in different kinds of investments.

If you already have an investment portfolio that includes various assets, then you might try to figure out what portion of that you would like to become bitcoin, whether it is low as 1% or as high as 25%, and then if you have a target allocation level that is compared to other investments that you have, then you would figure out how to reach your allocation whether to reallocate from other assets, or just to build your bitcoin portion with new cash as it comes in, and then you might be able to figure out an estimate of how long it might take you to reach your target allocation level (of let's say 10% that might take you 1 year or more to reach the target level).  The more you play around with these ideas, the more you should be able to tailor your targets to your own personal circumstances that would include accounting for your cashflow, other investments, view of bitcoin as compared with other investments, timeline, risk tolerance, and time, skills and abilities to strategize, plan, research and learn along the way including tweaking strategies from time to time to consider trading, reallocating, use of leverage and/or financial instruments.

It can take a long time to figure out each of these, but you do not have to figure them all out before getting started investing in bitcoin.. and accordingly any person could start by investing small (or investing something that they believe is reasonable and prudent) - and continue to study their own circumstances, and perhaps tweak their investing strategy from time to time along the way.

I'm still learning around this point. because often I am wrong in placing my entries. so I want to try my best to make the right entry based on analysis and several indicators.

but using DCA seems to lighten the load on my mind. ie I will enter the market to buy every week. accumulating like that seems much healthier for my mind and mentality.

but what I don't know about DCA is that when we buy we buy in stages. So, is selling also done in stages?
so the crux of my question is whether this DCA is also used in selling? or just in accumulating it?...

Well, before you invest in Bitcoin be sure that you know what you are doing. DCAing is work exactly in all market conditions but yes, we have to deal with our emotions as well and keep positive. We can't escape from hearing negativity and FUDs but some investors make use of this as a signal to invest more. Honestly, more panic leads to many investors selling their coins which is absolutely a time for the accumulations. In fact, some whales tried to create those things for them to take advantage once huge selling occurs, that is somewhat manipulations.

Doesnt really that need knowledge into huge extent because you could always make use of DCA method on a declining market.Yes, it might involved that analysis but wont really be that on huge certain extent.Even having that common sense and surrounding awareness should be enough.

We arent that not that experienced but we could notice out on whats happening in the market.Some might panic sell and some might be just waiting for the right time to get in and some
are completely buying up as long the price is going down.Different decisions had been made on these kind of particular moments.

DCA won’t also be advisable if you are not knowledgeable on it in the first place. Even if they say DCA is the safest way to accumulate bitcoin, but for beginners who have not experienced it doing, I guess it will just complicate things. As long as you always take advantage when bitcoin price is declining, then you have nothing to worry knowing the end part is to hold your investments for long term and sell it only when bitcoin price hits new ATH. What you should be worrying is that if you can sustain hodling them despite of the price fluctuations that is happening from time to time.

Proper planning will help someone to reach his goals faster. There are many different strategies for collecting bitcoins but I would say like few others that the DCA strategy is the best. By applying this dollar cost averaging strategy an investor can maximize his holdings to make them more profitable. However, the current bearishness of the market is likely to be prolonged. Bitcoin holders have no problem with this. Just avoid negative news and stay positive with the goal.

I agree.

I have a lot of friends who have a wrong understanding about Bitcoin. They always thought that once they invest in it, it will always give them profits, so the ending is that they are always disappointed and losing hope already. Most of the people who invested in Bitcoin because of the hype of cryptocurrency since the pandemic started has this kind of mindset, they are the panic sellers, and they are the ones that thought they could earn a lot of money like other crypto enthusiast by just simply investing their fiat on a volatile cryptocurrency.

You did put much work into this thread, and I appreciate you for that, but to me, I think the easiest way to accumulate Bitcoin is to have a plan target of either buying Bitcoin weekly, monthly or quarterly and keeping up to your plan irrespective of what the price of Bitcoin could be at the moment because the price of Bitcoin will always fluctuate but by having in mind that for e.g every week you plan to buy just $10 worth of Bitcoin, before 1yr you should be having 52 x $10 = $520 worth of Bitcoin, which is equally the same as the principle of savings (money)

So to accumulate more Bitcoin, it's all about having a plan

I really want to thank you for the great effort you made in this post, you talked about very important things to know by those who want to accumulate bitcoin in the long term, the best strategy of course is DCA, also very important for those who want to accumulate bitcoin in the long run stay away from the news because Whales often resort to spreading negative news that can cause panic selling. Choosing the right type of wallet is also very important.
These are really important points that everyone should pay attention to when accumulating Bitcoin in the long run.