Topic: Things to keep in mind before accumulation of Bitcoin (Read 1260 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.

But unfortunately it is almost impossible to know the bottom point of the price of btc because everything is just a prediction, when many predict that the price of btc will no longer below the $20,000 because it has passed the $22,000 mark but it can still be lower than $20,000, so if you really want to invest and is not a person who has a lot of funds by collecting them little by little even though they don't know where the lowest price is then it's not a problem, especially if you already know the meaning of investment itself is long term, not done to wait for prices to rise in a short period but rather to secure assets and make the asset value grow to reduce the impact of inflation.

As OP mentioned there is a common understanding about the term accumulate. When we get into the discussion about investments, this have got varied meaning. When the price have reached the bottom it is the right time to accumulate. Whales does it when the bottom is reached. Common people doesn't have the mind to invest buy and invest at the low bottom.

When a person knows to make an investment at the bottom, there is no need of such complications on watching different applications to keep track of the market. Accumulation is preferred for long term and for people users who get into trading practice buying at the bottom can benefit out of the Whales Alert, Clank App, WhaleMap, Whale Watchers, WhaleBot Alerts and all.

Investing in Bitcoin does not need so many things to learn and acquire before getting to know how to invest properly in Bitcoin and get to buy and sell at the right time. Bitcoin is a trending coin and it determines the movement of other crypto project whether bullish or bearish which is the reason why we need to get familiar and understand the concept of buying and investing in it.

I think getting some trading idea and knowledge can be another reason to understand the concept of how the Bitcoin market moves. So many phases of Bitcoin and pattern so we need some important things to learn that can always enlighten us on how we can always go about investing in Bitcoin at the right time.

You are adequately describing the difficulty that exists in attempting to balance the amount that you are investing in such a way that should help with lessening the amount of panic that any of us can feel in terms of feeling that we have either investing too much into bitcoin or that we have not invested enough, and by the way, your previous practice of investing irregularly could still have been considered to be some variation of DCA - even though a more pure variation of DCA would be attempting to invest more regularly and systematically rather than being less purposeful about it (as you may have been doing previously).

I believe that you are more likely to learn more about yourself and your own sticking points when you are purposefully trying to focus on the matter in terms of applying a regular practice and by trying to NOT become too impatient about what you are doing, and I am not even suggesting that you set it and forget it but instead you can put something into practice and then you can review it from time to time and tweak it and then you can also consider how your practice plays out while the BTC price is changing and to see if there are points in which you are getting anxious regarding if there might be something that you can do to make yourself more comfortable.

Let's stick with my earlier example in which you already set yourself up with a 6 month budget of $100 per week that you are going to invest into bitcoin for the next 6 months, and you had already established that the amount is a fair balance because you have projected your cashflow out for 18 months (or some other timeframe that you believe is reasonable for your circumstances), and you have already accounted for your various incoming cashflows and your outgoing expenses, and when you plot out your whole time, you can see that there are some irregularities that are projected in your cashflow, but you have spare cash in there to cushion out the extremes, so you feel really comfortable that you are not going to miss the $100 amount that you have already allocated towards buying bitcoin every week.

As one, two or three months go by, you can look at whether some aspects of your income or expenses have changed, and then you can also have plans to increase the amounts that you allocate towards BTC or to reduce it, and maybe you want to keep your DCA amount the same but instead you have another category of funds that you place in categories of buying on dips and/or lump sum investing, but overall you might have a preference to keep the DCA amount to be the same and to just play around more with some of the other ways that you might either increase your income coming in or to reduce your expenses.

Part of my point is that you are likely going to learn more and more about yourself while you are learning new information about bitcoin and maybe even other investments, your levels of consumption, ways that you might increase your income, ways to organize the information and even to project your various balances going forward and/or your thoughts and feelings towards those things.

30 years ago, I would have various paper versions of my budgets and my projections, and of course, the more that I was able to have access to computers, some of the computer programs (such as spreadsheets) became less expensive and even easier to use and even more powerful.  Excel has been a pretty powerful tool in which you are able to create all kinds of formulas, but even using some of the more basic functions, you are going to be able to copy and past (and tweak to the extent necessary), and to save your work, and to be able to go back and look at some of your formulas for how you had been projecting going forward had ended up playing out in the real world.

Some of my projections of my cashflows from 20 years ago have similar formulas as the ones that I am using today, but there will be various points in which certain categories were added so they were not present in my earlier versions, and even for me, I can see that bitcoin was not part of any of my investment and cashflow projections before 2013, but then as I added bitcoin to my projections, I have some supplemental worksheets in which I see that I added new categories of assessment after I had been into bitcoin for a while then I realized that I had to change some of my categories of information (assessment) based on how much value had gone into bitcoin and then how BTC price performance (for me first down in 2014 and then flat in 2015 and then later up in late 2016 and thereafter) had also caused me to feel that I needed to reassess how I had previously been looking at some of my earlier information that I had compiled about my investment and cashflow projections.

We cannot necessarily rush any of these matters, because even though I have always had some ongoing targets to always invest/save at least 10% of my income (even 30 years ago), some of my numbers from 30 years ago look way smaller than how the later numbers started to build and to grow over time; however, it is my contention that I would not have been able to increase some of the numbers at dates later down the road if I had not gone through those ongoing building stages.  Sure, it is possible to get lucky, but it seems way more likely to have higher chances of success by consistently and persistently engaging in practices to build rather than to gamble with investment portfolio assets.  In other words, sizes of financial portfolios are more likely to come through building rather than gambling, even though I am not opposed to taking risks with portions of portfolio value, and to realize that the riskier portions may or may not end up building in value as much as the more conservative aspects of the investment portfolio.  


I hate to be repeating myself over and over; however, members keep repeating the idea of buying on dips as if it were the same as DCA, and it is not.  DCA is a different idea, which is buying regularly no matter what the BTC price.  Of course, buying on dips can be supplemented into DCA, but pure forms of DCA do not attempt to predict the BTC price and just buy regularly no matter what is the price.

Since I believe that DCA is the most superior of strategies for beginners who are aiming to get a stake into BTC, my recommendation for beginners is to start with DCA.  Of course, if you want to be more interactive with your BTC investment, then you can supplement your DCA strategy with lump sum investing and buying on dips.  

Beginners who do not have a lot of confidence in their abilities to attempt to predict the dips or even to spend adequate time involved in watching the BTC price should just start out with pure DCA and maybe later down the road reassess if they want to get more involved in looking at the BTC price and/or trying to time dips and setting up their budgets to supplement with such buying on dip strategies.


It tends to NOT be a good idea to include trading in any BTC accumulation strategy which you seem to want to calculate your profits in terms of making dollar profits, which may well ONLY result in short-term satisfaction, and trying to sell to buy back lower tends to end up in a lot of people losing money and getting too emotionally involved in trying to figure out which way the BTC price is going in the short term, which again does not tend to be a good strategy to accumulate BTC.. if accumulating BTC is the goal and if the goals are to attempt to build in the long term.. such as 4-10 years or more into the future.


Again.. you are repeating the idea in which you are mixing up DCA and buying on dips... Those are two different ideas, even though you can attempt to do both.  There is nothing wrong with attempting to do both if you want to attempt to do both, but you do not need to attempt to do both.


You are advocating a kind of trading, and I don't necessarily disagree with you; however, trading is not easy to accomplish (especially shorter term), even if you think you know what you are doing.... and in this thread, seems to be emphasizing BTC accumulation for the long term rather than trading, and sure there can be considerations of longer term trends that also might attempt to accumulate more when the price seems to be down and to shave off some profits when the price is up.. but probably not making moves that involve getting caught up into trying to figure out short term BTC price movements, which you seem to be advocating attempting to figure out those kinds of short term price moves.  

By the way, we have had plenty of instances in bitcoin in which people have sold very large portions of their BTC stash because they thought that the pump was not sustainable and they end up selling way too many BTC too soon.. and similar dynamics have happened with price drops in which people buy way too many BTC too soon and then they run out of money to buy more when the price continues to drop.. and sure, I am not suggesting that you are not aware of these possibilities, but the risks to one's BTC portfolio can become quite great when they get carried away with making short term plays that end up making their situation worse than if they had just stuck with a more consistent long term strategy that involves ongoing accumulation without so much regards to price and/or trying to figure out short term BTC price movements.

As long as we're not in a rush to make a profit and only really buy when the price drops drastically, it might be a good time to buy it and keep waiting until the price really gets a pump. Usually, after the price drops drastically, the price will get a pump and even if the pump is not very high, it is enough for us to make a profit. And if we can repeat that, I think the gains we get could be huge.

And if you don't want to be too busy trading, maybe the DCA strategy is a good one because you keep buying bitcoins at low prices and have to adjust your funds. With the DCA strategy, you can collect bitcoins slowly and not in a hurry, which is good for your profit growth later.

That's true because the whales will pump and dump on the market suddenly and make many people panic. After all, it's too late to act. They can only follow the movement and try to enter the market. Some of them were able to profit from the situation, while others were caught in a panic and ended up at a loss. Right now is a good time to buy bitcoin as the price is still below but we also have to be careful not to try to buy when the price gets a pump because the price will go back down after that. So only with analysis can we do to find the moment to buy and sell.

Looks like I really have to learn and apply this DCA strategy. because after reading your explanation. I think the strategy you wrote seems to be able to keep my psychology in accumulating bitcoin. because to be honest, I've been accumulating at irregular times and without knowing the DCA strategy. So mentally and psychologically I was a little disturbed, such as quickly panicking and in a hurry because I was constantly chasing prices in purchases. even though if I can accumulate gradually little by little with a routine every week maybe I can be calmer. because the goal is to accumulate.

This understanding is quite simple and beginners will definitely understand what we are explaining about DCA and the money that is set aside to buy BTC every week, all things about challenges must be explained from risk, aggressiveness, panic, greed and also patience is necessary explained in my opinion, even I have discussed this internally with my friend how he wants to start a DCA that is good and consistent but does not cause heavy pressure on the way, but what I know and my experience so far is of course explained from $ 10 - $100 or more can be set aside as long as it matches the income, needs are maintained and an emergency fund is always prepared so this won't interfere with the DCA's journey, so they will continue to do what they can to earn BTC.

I think we never know if the whales will blindly do pumps and dumps in the market but with the notice of large assets being transferred to the exchange it is possible that the whales will do it, but true if there is no panic then this might cause any problems even can face the market more relaxed when anything happens, let it be a waste but seeing the prospect of a decline it can buy more if you want to say buy dips.
I think we can adjust more and more the direction of the market, if it declines then we should think more that it's a golden opportunity to buy.

It is difficult to analyze the current price movement of bitcoin for the short or medium term except for the long term, and trading for the current situation in my opinion is difficult to make good profits. even if you can profit maybe only a small profit and even then if you are lucky and do it seriously and full time.
and we can't blame the whales for the role of the whales to pump and dump suddenly without thinking of small investors, and I prefer to take advantage of the current situation to do DCA because I think this is the best way for the long term because I don't want to bother looking at the market whose direction is unclear, and in the long run the direction is clearly profitable and most importantly patiently waiting for it and doing DCA.

If the average trader can analyze how the market is moving, they will probably see signs of where the market is going so at least they can see if it works for them or not. And if they don't see it as an opportunity, they don't have to go into the market and wait any longer for the opportunity to come. But most traders are trying to get into the market even though they are not convinced.

Maybe the whales are responsible for the pumping and dumping in the market but we can't blame them for what they did because if we didn't panic, we wouldn't have done anything and could have bought at a low price instead.

Yes, exactly whales will always be or at least they'll try to be unpredictable in trades.
And it'll be hard for an average trader to understand everything when the market moves to disregard technical indicators.
Also, whales will be responsible for major pump and dump that shatters the market and most new traders.

Yes, trading is not as easy as it seems, many people including me thought that initially trading only needed to buy when it was cheap and sell when the price was high, but somehow I often get stuck when the price is getting lower and it's hard to get back up, now I'm saving some The small bitcoin that I bought was above $22K and hoped the price could rise again, our holding back at a high price is really annoying because we don't have money circulating in the market, I think it's better for us to try to learn to analyze price movements, support and resistance on the market before trading .

Your own bitcoin accumulation phase would be when you either do not have any bitcoin or that you do not have enough bitcoin, so you figure out what your target level and if you reach your accumulation levels then you are likely transitioning out of the BTC accumulation phase and into your maintenance stage.

Of course, figuring out if you are in accumulation stage may well not be any kind of an exact level because there might be some overlap in which you are transitioning between accumulation and maintenance and your mind might be changed about where you are at based on BTC price movements or other happenings in the world (or events that you might perceive to relate to bitcoin).  

The three main ways to accumulate bitcoin are: 1) Dollar cost averaging 2) buying on dips and 3) lump sum investing, and people will differ in their opinions regarding how to employ each of these strategies and their thinking about how the strategies relate to their own situations.  

There are some people who believe that trading can be used as a BTC accumulation method too, and to sell high and buy back lower, and I personally believe that trading is not aa very prudent and reasonable way to go about accumulating BTC - because there are more risks that the strategies might devolve into gambling unless you are really able to spend a lot of time becoming skilled in trading and trading is quite likely to NOT be as solid of a strategy to accumulate bitcoin as is the solidness of three mentioned above.


Whatever strategy that you take is should be somewhat tailored to your own circumstances and your own timeline and not necessarily whatever other people might be thinking or doing, and views about the BTC price would only be one component......  For example, if you are brand new into bitcoin, you may well be buying with a DCA strategy and not be trying to figure out when a dip is or how much of a dip it might be.

Just as a reminder individual considerations include but are not limited to 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... so you can see that your view of bitcoin (including price moves) as compared with other investments is ONLY one of the considerations.


DCA is amongst the best of strategies for newbie investors into BTC.. but it does require a bit of figuring out how much of a budget that you might have to spare for buying BTC.. so for example whether you can buy $100 per week or if you might need to stick with a lower amount, such as $10 per week.  I would suggest that the newbie make sure that s/he is not over investing in the beginning, even though being aggressive can pay off over time, but one of the balancing aspects of investing into bitcoin or any other investment is to make sure that you have already established various kinds of emergency funds in order that you do not have to dip into your investment (whether bitcoin or any other investment) at a time that is ONLY of your own choosing... and sometimes you may well want to plan to invest into bitcoin for 4-10 years or longer.. and you can tweak your strategies along the way as you learn more about bitcoin and maybe as you get better at balancing your won finances, too.


Sure.. those are all good frameworks.. but still whatever strategy or combination of strategies that anyone uses would attempt to be tailored based on the persons circumstances (and considerations) like I mentioned above, and it can take a decently long time to figure out your personal circumstances and also to attempt to make sure that your investment strategies into bitcoin are somewhat aligned with your personal circumstances.. which also may well change with the passage of time, too.


That is part of the reason that DCA is a better strategy than trying to time the dip when you really cannot have very high levels of confidence about if the BTC price is going to dip more or if it has already dipped as much as it is going to go.  Almost no one is going to be able to time bottoms and tops, and if you try to establish a strategy in which you are not stressing about when are the bottoms, then you will probably start to feel better after you have been into bitcoin for a while.  Sometimes it can take several years before you start to feel comfortable with your BTC accumulation because a large number of people do not tend to have lump sums of spare money that they can invest, so they tend to have to invest slowly over time.

So for example, if you decide that you are going to invest $100 per week over the next 6 months ($2,600), then you might try to time your purchase each week, but maybe if you are frustrated about trying to time the purchase, you just buy at any price during each of the 26 weeks.. so you are sticking with a budget and maybe trying to time the bottom but not getting too stressed out if you cannot figure it out because over time you are continuing to build up your number of satoshis to the best of your ability and you realize that it is very difficult to time the price. and even supposed smart people get these timing of the BTC price matters wrong on a pretty regular basis.

it turns out that there is still a lot that I have not learned even in the strategy of accumulating bitcoin itself.
But I'm more worried about my mentality in trading. I am often wrong in making decisions in making purchases. maybe I haven't studied properly what resistance and support lines are. so sometimes I still feel panicked when going to buy and also when going to sell. because sometimes I'm confused where to put my order. sometimes when I put a buy message it always doesn't get hit. and the price bounced before it hit my buy order. so I panicked and bought in a hurry in an instant.

You say the accumulation phase is when the price of bitcoin is at the lowest. But how would you know that it is the lowest? The price went down as low as $35k and people thought it was the lowest. It kept on going low. So do you keep on waiting for the low?

And also, DCA investing and other stuffs would seem very complicated for new traders/investors. You don't have to do DCA or other stuffs if you are planning to invest and hold long term. Only invest what you can afford to lose. You have money lying around that you don't need. Invest and keep holding till you reach your profit goal.

I do not necessarily disagree with you, but I am not sure why you would need to sell your bitcoin in order to retire.  You can retire and still hold your bitcoin, no?  Why do you need to sell in order to retire.  Sure there may well be some points in which you diversify some of your value out of bitcoin because you consider that your bitcoin has gained in value more than all of your other assets, and you would not want to have too many of your eggs in one basket, but there is no real reason to diversify out of your bitcoin in order that you either do not hold bitcoin or you hold some kind of a low quantity of bitcoin.

Let's say  for example, you start with a very modest allocation of 5% of your total quasi-liquid investment portfolio in bitcoin, and you spend more than 8 years in bitcoin, and over those 8 years, bitcoin grows to such a rate that it becomes 95% of your total investment portfolio.   Merely because bitcoin went up 20x more than the other portions of your investment portfolio does not necessarily mean that you need to sell bitcoin into those other relatively losing assets - but maybe you might choose to sell 10-20% of your bitcoin in order to feel a bit more comfortable.. and of course, it would be up to you to decide how much of your bitcoin holdings to sell - but I don't think it is realistic or healthy thinking to attempt to balance your winner (bitcoin in this hypothetical) anywhere close to its original 5% allocation and it might not even be prudent to bring it below 50% because you have merely gained such wealth an prosperity through bitcoin, an you are not necessarily advantaged in playing around (with very much of your bitcoin stash) trying to guess about the peaks and the valleys, but it may well not hurt to take some of the bitcoin off of the table and to invest into other asset classes or to use some of your bitcoin profits for consumption.. while at the same time, I am not going to presume that you are going to be better off to hold much of any of that value in the dollar or in dollar based investments - except maybe just relatively modest portions of your overall investment portfolio which still may leave you holding a vast majority of your wealth in bitcoin (even if bitcoin happens to continue to be a very volatile asset currently and likely that there are pretty high odds that bitcoin is going to continue to be very volatile asset class into the future).


Regarding your above statement that I have bolded, there have always been bitcoin whales, and sure the bitcoin market has frequently been seeming to come up with surprises that go beyond expectations, and personally I am not going to presume that whales are new to the space in any way that significantly/materially changes bitcoin's investment thesis - even though they surely get BIGGER as bitcoin's market cap gets BIGGER.. and there are also more and more financial tools that are made available for various whales to attempt to manipulate bitcoin's price - but even with BIGGER whales and more financial tools, there are difficulties to presume (not that you are presuming such) that the whales are any more dominant these days than they have been historically or that bitcoin's investment thesis has gotten weaker merely because BIGGER and BIGGER whales are interested in trying to battle to keep the BTC price down.

At the same time there are no guarantees in terms of BTC price direction, even if there are some very interesting and unique attributes that bitcoin has in terms of the ability to take it into possession much more easily than other historical assets (such as material assets) and also assets representing equity in companies (that are controlled by third parties), so surely there may well be some smart people who are working on a variety of ways to attempt to keep BTC's price down - but many of us are not going to presume them to be successful or that they are substantially more significant than they had been in previous markets including that the fact that some whales might try to fuck around with bitcoin by using dollars and other assets in order to push the BTC price down, so when the BTC price moves against their position, they are not holding any BTC (or they are not holding the BTC that they claim to have)... and we saw some of those liquidations on the way down, but those failures to have bitcoin (that they claim to have) can also cause liquidations on the way up too.

Not only did we learn how to buy low and sell high, but also it was very important to know how to hold. And sadly, I'd found it not easy especially if we are too emotional which mostly changes the course of our plan, and ended up selling at loss.
A long-term investment is ideal for now knowing that we are struggling in the bear condition. Those who can manage to hold can really achieve their goal.
I also accumulated some and I keep DCAing in preparation for the upcoming halving, and I believe this won't disappoint me in the end.

Since whales entered the crypto market things has not remained the same anymore. If you are trading, you will be strategizing against the market and also be strategizing against the institutional traders. There is no how you can successfully avoid them, that is why I recommend  DCA for a long term purpose.

Again, no matter any sure strategy that you use, ensure that you only invest what you are able to lose. We should observe this rule and have peace of mind.

Always set goals or selling price because each person does have that kind of mindset or things in mind whenever they do make sell on the right time or would totally hold like it forever.When it comes to accumulation

then we do really believe about Bitcoins potential but we shouldnt really ignore the fact that there's a certain risk even up on dealing with the most established and trustable coin that we do have currently in the
market.
Always remember that you shouldnt put all of your funds or riches on BItcoin investment since there's no guarantee that it could give out positive results in the end of the line.
Make investment on something an amount which you are really that prepared on whats gonna happen on it.

I am not saying that we shouldn't accumulate, but if you are accumulating without a goal you are going to end up losing a lot of money. Some people accumulate and then sell too quickly, some people do and sell too late, never sell it at anything but either your retirement and have enough, or at the top.

If it reaches at the top of that cycle and you sell there, you could either spend that money or you could retire, also if you sell at a price where it is enough for you to never work again, that is a good reason as well. These are of course my two goals and I will sell only when this happens, but you could have something else in our mind that you would be willing to sell for.

You put it in a good way, all the problems and solutions are explained well. Accumulation, distribution and re-accumulation often happen in every market, I guess. So, nothing to worry about this, but be aware and prepare. everything needs to be known about this phase to upstand in the market.

The very basic difference between beginners and those experienced in terms of investment methods and knowledge of market fluctuations, those who are experienced will not panic from any Fud knowing that Bitcoin journey has gone through many critical Fuds trying to bring down crypto in any way but in the end nothing worked. However, some beginners are very vulnerable to being influenced by the news of "classic fud" because of their unsettled investment knowledge and tend to invest to get instant profits without considering the risk of loss if market movements are beyond expectations under any circumstances.

It's not easy for people to stay calm during a period like this, I am not saying that they can't, I have been and I am keeping my coins right now and that's understandable, but that doesn't change the fact that crypto is not something that you could easily handle when it goes down, just because you and I can do it, doesn't mean that others would find it easy as well.

There are millions of people who got scared during this period and sold, while I was buying a lot more, my DCA is lower than the current price and that gives me a bit of comfort but even if it wasn't I would be able to see that bitcoin would recover and we could purchase a lot more and drop the DCA and you could profit a lot quicker.

what you say is right. And indeed Panic is normal for all. But there is a difference between beginners and those with long experience with the market in responding to panic. Beginners when panic arises, the panic sometimes overwhelms their minds and logic. so that his mind became overrun with panic so that he could not think clearly. so that sometimes they sell out of panic without being based on logical analysis. even though they do the analysis, they still become more hasty in making decisions. so that more losses are felt by beginners. and that's only natural because everyone experienced in bitcoin trading and investing feels the same way at first. but over time the experience will strengthen the mental. so when the mental is strong. even if there is panic. will still be able to make wise decisions and continue to analyze without haste. people who speculate more than those who most often lose due to panic.

Same here. Plus when there you can see some whale transactions and the price is going opposite to the expected behavior of the market it will become complicated.
I also believe that these whales can easily manipulate these whales alert platforms where they can just move or make transactions with a huge amounts just to try to affect the market for those people who are using whale alerts as one of their indicators.

I'm long and although there's a bit of shock whenever I see terrible news that's close to making me panic but I don't sell. Good thing that tolerance from the market has helped do it.
It's not that easy but it's manageable when you've been here for years and you still have a long position.
Those that are starting out will make them realize that it's a long way to go for them to have that risk tolerance and can avoid completely panicking.

Most people don't know how much they want to buy. For instance, I started getting into bitcoin when it was worth less than 1k USD. If you asked me back then what can it be worth and how much I'd like to have, I'd say that it can be worth maybe 10k USD and for me 10x on bitcoin is enough, therefore I'd like to have at least 10 and my DCA would focus on that number, but at this point if I had nothing I'd say the goal is 100k USD and I'd like to have 1 bitcoin by then. Goals change depending on how much money you have, bitcoin's ATH and many other things.

Before accumulation in Bitcoin The first thing to do is to decide how many bitcoins you want to buy.You divide these bitcoins into different parts.That is, DCA strategy. As much as the price falls, you have to buy BTC, always take advantage of the bear market. If the price falls further, then enter. This method will reduce the loss and increase the profit.
Always use trading indicators.like RSI This will give you an idea of ​​whether the price of Bitcoin will go up or down and you will be able to take a timely entry.
Always check Bitcoin volume whether there are more buyers or more sellers. If there are more sellers, the market price will fall and your entry will be profitable.Support points and resistance points should be known which supports, if broken, how far the price can fall.There should never be a panic in the bear market. The market will definitely go up again.

Yes, that's nice! But before any of that accumulation process, the most important advice we should give to the beginners is to do some research first and let them know what they are trying to do because they can't be buying and buying bitcoins or other coins in the market even if they have some spare cash or buy when the market is down. They should know what to do too after that process and they cannot know any of that without first-hand knowledge.

I hope newbies don't misunderstand DCA. although DCA is very suitable for beginners in periodic investments. but beginners should know what its functions and uses. and when to apply. for more complete beginners should look for further explanation references that have been widely spread in articles on various webs.
DCA cannot be used with origin or only with guesswork. because DCA must be combined with various supporting analyzes. Before deciding to use it. Prior to DCA, it is necessary to analyze the assets that will be entered and become targets for gradual purchases. The analysis includes Technical Analysis, Fundamental Analysis, Risk Sentiment Analysis and several other analyzes. if someone does a DCA and the price keeps dropping I think he missed one of the analyzes. because if the analysis is done correctly it will be very helpful in determining the right time and position to use DCA. so that gradual purchases must be placed at the right point. But for investors, the DCA technique in addition to minimizing the level of loss but also helps a little in controlling psychology.

You are right, this feeling will not go away as long as we are still in the crypto sphere and of course FOMO and panic selling are definitely there for that, you can't deny this but still we can prevent it from doing it because for me anything can be done it's from us.
As long as we are strong we can make it happen and stay in a firm position not to be affected.


Shitcoin is not a safe place for the long term this is not the right DCA category because shitcoin is not a coin that can increase after a few years but instead drops down and is not worth it anymore, I think there have been many examples of shitcoins falling so I guess stay away from it better.

But still, if you only want to increase your portfolio by just selling and buying, I don't think it's the right one for the long term but for the short term you have to play it, it's a big risk, the assets could fall by 60% due to shitcoins because for me this has happened a lot Shitcoin is vulnerable.

DCA remains on a safe coin i.e. BTC we already know in the future it will increase between 5-10 years so I guess trust 1 coin with confidence that it can increase.

The cryptocurrency graph market picture makes it clear understand when to invest on Bitcoin entry point to buy and to sell as short term holding, as market Dip, which added advantage of holding stable coins to invest at dip for a profit return investment which has already explained.

You are mixing up ideas, AbuBhakar.  DCA is not the same as buying on dip.  They have different underlying goals and objectives, and sure anyone is going to prefer to buy when the price is down, but DCA presumes that the buyer does not know which direction that they BTC price is going to go so there is a preference to get in at any price and to begin to buy and to tailor such buys to the buyers budget and to consider that the investment timeline is relatively long so that in the longer term the buys have good chances to be profitable down the road.

The mere fact that the BTC price went down does not mean that the DCA plan backfired because another goal of DCA is getting the fuck started rather than sitting on one's hands trying to figure out how much dip is enough of a dip and all of that baloney.  Sure, maybe you know when there is going to be a dip, or maybe after the price had moved down, then you can assert that the person bought too high.. but you are likely ONLY correct because you are looking at the BTC price afterwards, and at an earlier tiime you did not know if the BTC price was going to go up or go down..


That's not how DCA works.   DCA is not about trying to time the BTC price in the market, and so if you are trying to suggest that DCA is timing BTC price moves then you are looking at some other kinds of ideas, such as buying the dip or lump sum investing, and sure lump sum investing and buying the dip can complement DCA and they likely even attempt to account for timing of the BTC price but a pure DCA strategy would not be engaged in such price analysis.  The main analysis that anyone does in DCA investing is to assess the underlying asset (BTC in this case) in such a way to have a decently high level of confidence that the price of the underlying asset (BTC) has decent chances of being up in the longer term, and another thing that a DCA buyer would assess is his/her budget in such a way in order to figure out how much that they are able to DCA buy on a regular basis in order to determine the quantity to buy and the increments in which to buy, and they also might attempt to assess their target BTC accumulation levels including how long they would like to shoot for in order to achieve their BTC accumulation targets and whether they want to approach their investment into BTC through aggressive amounts of injection of value or more whimpy injections of value, and of course they can assess the trade offs to each and they can adjust their approach at anytime including considering whether they want to supplement their DCA strategies with buying on dips and/or lump sum investing (or timing the market like you suggest.. but those would be supplemental approaches to DCA rather than the exercise of a more pure DCA strategy that does not need to employ the timing of purchases.. but instead to purchase relatively regularly.


DCA does not necessarily apply for shitcoins.. because you first need to assess that they asset that you are investing in has decent chances to have higher prices down the road in  terms of whatever happens to be your investment timeline, such as 4-10 years or further down the road.. and if you are being honest in your assessment of whatever shitcoin you are looking at, the overwhelming majority of shitcoins are going to fail in that kind of longer term value assessment.

Sure, you can buy and sell shitcoins and attempt to increase the size of your investment portfolio, but getting involved in shitcoins is more likely a question of timing your investments rather than employing DCA in an intellectual honest way.  In other words, generally speaking fuck shitcoins... and get into them at your own peril if you like gambling and if you believe that you can time your in and outs. 

By the way.. you are trying to assert that if the shitcoin is "established" then that would be enough to employ DCA with that coin, and it seems to me that you are deluded if you believe that a mere assessment that it is "established" is going to be enough to cause such coin to have value that makes it worthy to justify employing a DCA approach with it.
 

Mere volatility does not rule out having a DCA approach, and actually volatility give a decent amount of justification towards the employment of DCA as a BTC accumulation strategy.... and again amongst the most important of assessments would be for the BTC accumulator to determine that they believe that BTC's price trajectory is generally upwardly inclined and not likely to go to zero or to be downwardly declining... Therefore when the BTC price goes down, there is a presumption that it's price is going to return up at some point.  Generally speaking, the same presumption of an upward price trajectory is not possible to do with the overwhelming majority of shitcoins, including the "established" ones.. so if you do conclude that any of the shitcoins do likely have an upward price trajectory, then you could DCA invest into them.

By the way, there are a large number of shitcoins that almost totally rely on the upward price trajectory of bitcoin as a presumption that they will still be able to survive and to have an upward price trajectory in the long term, and it seems to me that having reliance on BTC's upward price trajectory at their investment thesis should NOT be enough to justify investing in them or even presuming that they are going to have an upward price trajectory merely because they rely upon bitcoin's ongoing upward price trajectory.. so in that regard, there remains justification to get into BTC and/or to DCA invest into BTC based on BTC's asymmetric upward price trajectory. 


Well at least you are thinking about bitcoin and not totally distracted into thinking about shitcoins. 


It does seem that the longer that you have been into bitcoin and the more that you have tried to engage in reasonable and prudent BTC accumulation strategies, then the more likely you will not freak out in any of the ways that you mentioned..

It can take a while to build your BTC accumulation position, so the psychological breaking points of various people are going to vary, and each person does need to attempt to find a kind of BTC accumulation approach that help to bring some level of balance to their psychology, even when there are large BTC price moves that go beyond expectations.. which we know does seem to happen fairly regularly in BTC, and you are correct that even longer-term investors into BTC might get nervous about some of the extremes in the BTC price movements.


You are describing dollar cost averaging, which is to buy at whatever price, within parameters that are hopefully somewhat personally tailored to the person who is employing such DCA strategies.

This is where experience and practice are needed so that we can control our emotions to stay calm and be able to carry out the strategies that we have previously planned. For novice investors, panic may occur when FOMO or FUD is a normal occurrence, so self-control is needed by continuing to practice it. Moreover, waiting for a bullish market cannot be predicted by everyone, it could take longer than our analysis. Therefore, you have to prepare mentally from the start

I honestly don't think we should encourage the inexperienced to only buy when the market is on the downtrend as one can necessarily tell when it would always occur but rather buy when you got the money you can spare. Either buying at 60k or 20k, believe me, in the long run, there will be no such thing as regret.

i guess, that's a normal reaction of any investor in this market. but the difference is how each one of us decide on how to manage our portfolio. panic selling is common especially if there is terrible news going around. but if you are long enough in this market, you should know by now how to handle the situation to avoid huge losses. and this is when your belief in this market is being tested.

FOMO, freaking out, panicking, these are the feelings that will never be gone to anyone. An old-time investor or a newbie will have to feel this from time to time.
Even if you're confident with the market, it's true that this feeling won't be gone. It will be there for a few minutes then it's gone again. Also me, still feels it but I'm not letting myself to manifest it and do panic selling.

DCA is always been recommendable but we do know that not all does have the money on doing so on which accumulating coins on bottom price or whenever it do make out decline increments.

And also this would be only applicable into those coins which are really good for long term holds on which you wouldnt really be stressing out yourself if ever it would go down further since you
do know that it does really have the potential on recovery into its price specially with Bitcoin.

All matters with risk management or handling because handling out volatility and unpredictability of this market is never been simple.

Not only for bitcoin, but also in all established coins in the crypto market, DCA is still very applicable. But since bitcoin is the most highly volatile one, then using DCA in accumulating bitcoin will surely work so far. I have been DCAing since the start of the bearish market, and it definitely helps me not to be worried with small price drops. And the fact that I’m into bitcoin for long term investment, that motivates me to never be affected with temporary price decline.

Yes dear there is no doubt 🤔 in it that DCA is true Potential Straight wat for the efficient investment but i think so as you mentioned new members should start accumulation so here comes another thing that if they follow steps of accumulation in the Bear and Consolidation zone point is how they can identify the Specific zone some of us can say that we can clearly see from the market movement.

But point is nope many of us was saying on 35k its the bottom or Peak of Bear but what happend we saw dip to 24k then a dip to 18k and then now we are in Bear Consolidation zone as markwt movement from the last few months is specifically limited so i would like to say they should also learn about it to analyze the current market zone.

A Question for new ones what if market goes to the 69k from the 22k in few months which it will be ?

Whales will always be whales, and their influence on the crypto market has always been inevitable ever since. So it’s up to us how we can handle such situations that are caused by whales. It’s better if we could move normally and just don’t rely and ignore them like they don’t exist. As long as we always DYOR in the market and knows the best entry and the best exit, then everything good will follow. And when it comes to bitcoin accumulation, just buy low and sell high, and always do DCA so you cannot miss every price drop happening in the market.

Well I've learned some new things from the thread. I've been accumulating BTC from some time now but I've learned something from the thread that can make my accumulating easier such as the best wallets and helpful tools. Noobs who plan on accumulating should read this thread. I'm doing DCA now and I agree that it's one of the best strategy for me because it suits myself.

We as an experienced bitcoiner, already knows all the stuff listed by the OP but still thanks for that. We can always re read it again as a form of review. The one that needs it the most are those who are noobs who are only getting started their journey in cryptos. Indeed that everyone should use DCA as it was the best strategy so far, this is because the market is so unpredictable. We won't know what if the price dips more? So, it is always better to have a spare cash in hand than doing all in most of the time.

It must be a good approach hence congrats to that because your timing was so perfect. You can start selling now if you want to and still earn something.

Your example is the proof that sometimes DCA backfires when there’s clear bearish market trend while you keep buying for more. The price obviously hit the peak on 67K and the bullish is already ended the moment the price touch below 50% of the ATH. There’s a perfect time to apply DCA if you want to use it properly instead of randomly use it on a clear start of bearish trend for long term.

I believe you lose a lot even if you do DCA if you keep buying since January until now. DCA is perfect if there’s already a sign of recovery in the longer time frame because you can guarantee that the price will be moving upward in long term.

Yes, I am expressing the opinion in this post that you can keep Bitcoin in a separate good and advanced device that will keep you safe. Don't send to a device that gets ricks Bitcoin is very important. You can save a lot of Android device because it is more likely to be lost whenever you go to save to a local device. That's why I say keep bitcoins if you want to A good device should be keep.

Great article that should be read by anybody who wants to buy some bitcoin or other crypto currencies. The main take away is to use the DCA method to take advantage of the volatility in the market. I have been buying bitcoins since the start of the year myself, and its so much better to spread out your purchases across multiple months instead of buying everything at once. Who would have thought in January that bitcoins are going to drop down to 17,000 USD. The timing issue is one the biggest challenges in trading and with DCA we need to worry less about buying at the right price. Also DCA is well used strategy in stock trading for years.

Electrum is primarily for Bitcoin, but there's many altcoins currently support, you can read below. There's few alts currently can be accessed, it seems they're stop supporting those alts e.g. DASH and DOGE due to internal problem of the one who created. There's a discussion where it might be re-run by someone, but it will increase the risk since it's possible he add malicious code.

Hot wallet aka custodial wallet aka exchanges are completely different with non custodial wallet since you not get the private key. Electrum is non custodial wallet since you're get the private key.

yeah dear i can explain it very well as dear i said its best for the beginners there is 24/7 support for any queries and also there is a builtin exchange for them. Also dear one more thing i want to add is Exodus is supports 240+ assets and Electrum is a primarily Bitcoin wallet for alts im not sure about it. No doubt Electrum is on top of Hot wallets but i made point there for beginners so consider it.

This made me a little confuse as maybe i am missing something as why the Exodus wallet is better than the Electrum wallet. I am more curious to know this because i haven't used Exodus wallet but frequently used the Electrum wallet.
Also as per my knowledge , Electrum is the best and safest software wallet after the hardware wallets.

According to the source, the accumulation was spotted as BTC price refuses to fall below $30K. Those who accumulated must have been also the ones selling when the price plunged down to $20K.

Short-term investors would find it unprofitable to accumulate when the bear market isn't over. It would make sense for them to buy when the market is about to form a bullish momentum. It's why I find it too early when Bukele bought BTC above $30K,  its okay if this is going to be for longterm however.

Actually, it may not be as complex or complicated as it may appear here.

The first step, of course, is to only get to know the basics of Bitcoin. The second is to buy it. You don't even have to DCA or be familiar with indicators or techniques; you don't even need to care about these so-called whales. You don't even have to learn analysis and how to track whether the price is already hitting bottom or not. You just buy. You already know that the target is long term. And because you intend to keep it for a long time, store it somewhere safe. That's all there is to it.

and the most important thing for beginners is to keep looking and continue to dig up all the information little by little and must be understood because basically investing there is such a thing as profit and loss so to reduce losses look for information and dig the knowledge because I believe a little knowledge and lack of information will be less profitable. important point in my opinion for beginners don't panic easily and buy bitcoin when the market is down.

some tools to detect the movement of the Whales are really needed. I myself to monitor movements and large transactions in and out of the exchange to my personal wallet and vice versa, I use whalebot_alert (https://t.me/whalebotalerts). so that we can monitor the movements of the whales' major transactions via telegram notifications.
like when the price of BTC will experience a correction. then usually starting with the day before there is always a large amount of BTC transactions entering the exchange from personal wallets. me when I found this. then it will wait first and not enter the market first. and I put the price at the nearest support that might be subject to correction. of course with DCA. and most of them always prove to be true. after a large transaction of btc to the exchange enters, after that most of the BTC will be corrected. so it is very important to monitor the movement of this Whales transaction.

Besides that, we must always keep up to date with the latest news.
I myself put a special notification on telegram from special channels that are considered the fastest in publishing news. because news sometimes matters too. and it is very useful to always collect information as the basis of our analysis before making accumulation.

if you also want to always be notified of the latest news all the time then I suggest some of these channels.
- https://t.me/crypto_panic_news
- https://t.me/CryptoPotato
- https://t.me/cointelegraph
- https://t.me/CTMarkets
- https://t.me/CryptopolitanOfficial
- https://t.me/WatcherGuru
These are the channels that I think are the fastest in providing up-to-date news

This content is very interesting for those who make a long-term investment in this explanation we must know and some other basics.

I now always use Dollar Cost Averaging (DCA) although this is a little different from your explanation but I make weekly purchases above $50 or more that's how my balance is in spending dollars so I don't place more orders but I just buy at the appointed time on a weekly routine within my own Dollar Cost Averaging (DCA).
Although different techniques are used but the goal is the same for the long term.

This is the most important thing, don't ever panic under any circumstances let alone get carried away by FOMO, hype or any other kind of trend that can trap you in selling your own assets, I never check the market every day but I am always consistent not to be influenced by any news that makes me panic, I will remain patient with some bad news but with patience and discipline make us more confident.

I've never followed the movement of whale transactions that move assets to the exchange, for me this will not affect myself to worry but I prefer to maintain my own balance.

Yeah there are some elements belongs to trading still i think the Topic is more relevant to the BTC Discussion so lets the the others response.


Thanks for your appreciation,


Exactly point is its all up to your determination and grip on your investment as far you are confidential about the market you can easily avoid the news cycle but if there comes a weak mindset then thats a easy trap for you and you can lose potential assets.


Most of Us, even

That's very true about 80%+ Bitcoiners do DCA. DCA can be more worthy instead of the savings account as BTC market follow all these phases, Accumulation in bear, Sideways in Consolidation zone and Mark Up/ Profit booking in Bull Run. DCA minimize the risk on the investment which attracts the users and a time to time investment helps to create better Avrage price setup for your assets more positive results can be obtained through this system.


Thanks Dear, I've got your point and working on it, My previous topic seems to be weakly composed and low researched  because i was trying to move onto the basic go through of that topic for new comers but still there are flaws in it. I think now i should cover both Hot and Cold Wallets one by one again with more detailed information as i need to also follow some of suggestions mentioned in replies.

I usually do DCA with Bitcoin every month and may be planning to buy again after my extra money arrives soon. I don't mind about my losses though because I just knew and believe that one day Bitcoin will be reaching new heights again especially the upcoming BTC halving.

Back then after the 2020 halving, BTC rose up to almost $70k. How much more for the next halving. But of course, I am aware of the uncertainties and the risks that I am taking, but I just don't mind as I already acknowledge whatever results that I'll be getting in the future.

[moderator's note: removed redundant OP quote]

This is a pretty nice write up and I can tell you took some time doing so, appreciated. One thing that I would add or mention with your write up..I believe mycelium works fine with android devices, but I don't think that it works with iPhones.  I used to have it on the iPhone and they simply stopped supporting the app.  Luckily I was able to get my bitcoin off of it, but just a heads up, you might want to build that note in to your write up.  Otherwise, good stuff.

In Bitcoin accumulation, this is very important.
In the DCA way of buying Bitcoin, you can minimize your possible loss because you only purchase Bitcoin when it will drop.  Buying a little by little using this method, will surely your investment becomes profitable when there's a new ATH.

All in all, OP has good input, and newbies should know this and educate themselves when it comes to accumulating Bitcoin.
It's a complete process of accumulating Bitcoin.

Every decision that we made in the crypt business always has its own risk, the lower to higher risks. the risk will depend on what we are doing, planning, considering, and also deciding. However, we know that the crypto business in this bear market is highly more volatile and riskier. but on the other hand, this is the right time to accumulate Bitcoin. Why should be Bitcoin? Because Bitcoin is the most trusted and valuable cryptocurrency asset to have, much better compared to all altcoins.
And this DCA system is the best for me so far. We can really implement this technique due to considering the market changes every time. By doing DCA, we can utilize very chance to take Bitcoin at any rate. With this, we may not miss every chance. Although we may have fro the highe rprice to lower, at least we also know n what rate to target to take profits.

Whale's participations really have a huge market influence bringing most of us to rely upon them. We tend to know what really they do and plan next in order for us to be prepared but unfortunately, we did not.
In this situation of the market, DCAing is certainly the most applicable way of accumulating Bitcoin. Buy low, hold and sell if there is already a profit. In fact, this idea has already been practiced by many so I believe this is really working despite how these whales are doing and manipulating the market.

Following those whales alert, it will make you more emotional because it adds to that feeling of yours of being frightened that a whale has just moved a huge amount of bitcoin from his wallet to an exchange.

Although the possibility of selling it off is high but if it's taking your mental health which I think is really happening for some, you guys better stop following those alerts for your own sake.

As for the wallets, if the plan is to DCA and accumulate and to hold for long, aside from electrum, there should be the other wallets like wasabi and samourai and most likely, the hardware wallets - trezor & ledger.

This can also be difficult to achieve since the news that you have made a conscious effort to avoid listening to or follow may also be headlined (posted) here in the forum or shared amongst friends and it will definitely arouse your attention.

 If you decide long term investment in crypto, have a strong resolve to hodl regardless of whatever you hear. Having such a resolve prepares you to accept the possibility of  any sort of news, but hinges you to the resolve that you have made to hodl regardless. It requires a lot of discipline, but it is not impossible.

I appreciate the effort put together in bringing this up, nevertheless you could have lay more emphasis on hardware wallet here as well aside the embedded link provided to your previous topic on that, also there is more need as well to add the type of coins each wallet support, but in conclusion, its all a beautiful display of efforts you've put out altogether to present this as part of your contribution to the forum.

I'm sure this will be difficult for most new investors especially for those who are new to investing. Panic is normal when the price drops 10%-15% in less than 24 hours, but when a trader or investor ignores these fluctuations and chooses to hold on and believe in another potential in the future then they have become a strong hand.

Don't panic, it's much easier said than realized in day-to-day or short-term trading practice. I agree that if one can avoid panicking when the price drops ^{[in particular bitcoin]} then they will have no regrets in the long run if the bounce occurs in a relatively quick timeframe.

OP, by the way you could also consider moving this thread to a trading discussion board instead of a bitcoin discussion board.

One does not need most of all this information to get into and use bitcoin.
Knowledge of why bitcoin is valuable, how to DCA and store your assets on a safe non custodial wallet, with backups, is basics enough. A newbie does not need to monitor whale activities.

Electrum is a better option and has customer support communities^[1].

[1] https://electrum.org/#community

- Jay -

Source

In this Post you will find about BTC accumulation and tips to keep in mind before shopping Bitcoin. Many of you have known BTC’s history if not then pay a visit here.

What is BTC Accumulation?

We all know the meaning of accumulation but in terms of market cycles, it’s a phase. This phase starts when market comes to its worse stage or bottom line at this point, Public and Private Corporations starts to buy huge amount of BTC for long term. There are three more phases other than accumulation phase but i will share their articles later.
How much BTC has been accumulated by Corporations?
In 2021, According to NASDAQ, total accumulation of BTC was the 8% of the total BTC supply which is equal 1,660,473 BTC. But in 2022, According to Coindesk, total accumulation of BTC is 60% of the total BTC supply which is equal to 12.92 million bitcoin.

When we should accumulate Bitcoin?

The price of BTC is $21,647 while writing this article and we all aware of the ATH (All the High). Many of us are fully sure that BTC will cross its ATH and there is no doubt in it, that’s what BTC was doing from the start.
We should started to accumulate BTC when BTC is in bear market after touching the ATH. Now is the Bear market and according to the amount of accumulation wrote above, Corporations had already filled their bags when BTC goes below $18,000.
We should use tools like Glass node to keep track of demand and supply, because when seller pressure increases, the bear market comes with great buying opportunities.

Source

Tips to keep in mind before accumulation:

1: Use Dollar Cost Averaging (DCA) Technique:

In this technique, we do not accumulate BTC in one trade. We divide the trades in to many parts. For example, if you are buying 10 BTC, Then divide them in 10 transaction. Like set buy order for 1 BTC at required price and place another buy order of 1 BTC at lower price than required price for better profit.
Because we don’t know the nature of market. Sometimes market goes in unexpected ways. So from preventing huge losses, we should work smart.

2: Use indicator to analyze market to take better entry:

The most famous and common tools to take entry is RSI (Relative Strength Index) which has two main components:
Overbought: When the indicator line moves above the channel then it is considered as overbought which means the asset has been overvalued and there is more chances of its price to decrease.
Oversold: When the opposite happens of above action than the assets is considered as oversold which means there are more chances of asset’s price to increase.
There is no doubt that indicator’s result will help you in making great entries either. But it increases the chances only instead of taking entry blindly. You can use a RSI tools for BTC only which will send notification on your twitter handle. Get this Tool from here.

3: Do not freak out:

One of the biggest benefit of long term investment is you don’t have to check market again and again. Thus you will face no tension. But to do that you have to build patience in yourself. Which you can do by not becoming a prey of FOMO (Fear of Missing Out).

4: Prevent from News Cycle:

As mentioned before, we don’t have to observe market again and again to book profits here. Because we are playing the long term game here like for 3 to 6 years some people holds more than that.
The news platforms will try to share every crypto related news which will make you sick. No doubt that, short term investors are greatly affected by news cycles and get into FOMO and lost their money. But here you know the big picture of BTC potential as how it touches around $68,789.63.

Tools for analysis when Whales enters market:

Whales are the market manipulator who trades more than 10 BTC at a time and these are the 1000 people who have the 40% of the total market. We will shed light on some tools to keep track of Whales activity to prevent from losses and to take profits.

1: Whales Alert

Whales Alert is a tool which collects data from all of the blockchains and provides alert notification on Whales transactions. It’s a free tool but with limited features you can buy it to get benefit from all of its features.

Pros:
•   It covers dozen of blockchains and provide free data.
•   We can watch historical data in the forms of graphs.
•   Provides live data

Cons:

•   To get notification we have to purchase their monthly or yearly package.
•   They are not suitable for beginner as they have expensive packages.

2: ClankApp:

ClankApp is a tool which provides notification services on Whales transactions. It provides Telegram and Twitter notification feature too.

Pros:

•   It collects data from 24 blockchain
•   We can get benefit from all of the features with free of cost, even can get notifications.
•   We can get notification via Telegram, Twitter and Email.
•   Provides live data

Cons:

•   The free of cost notification features comes with the drawback of no graph for historic data analysis.

3: WhaleMap:

WhaleMap is a tool in which we can also get whales trades and notification services

Pros:

•   We can get information and free course and tutorial to understand how to analyze Whales trades and how to react with them.
•   It provide 16 useful charts which will help us to understand the market more easily.
•   Provides live data.

Cons:

•   Unlike Whales Alert and ClankApp, we have to sign up before analyzing the Whales trade.
•   Before using its charts, we have to go through from their tutorial for better understanding which would cost time but it worth.

4: Whale Watchers:

Whale Watcher is a tool to analyze Whales trades not only of crypto token but also of NFT trades. NFT interested can get more benefit from it.

Pros:

•   Its focus is not only on crypto assets but also on NFTs.
•   It provides free of cost services too but with limitations.
•   But if you buy their packages we can talk in their communities with other member in real-time.

Cons:

•   Users of this platform are only around 3000.
•   No graph data is available.

5: WhaleBot Alerts:

WhaleBot Alerts are only for telegram push notification to alert you of any Whale trade. Many of us still using it.

Pros:

•   Used for quick notification of Whale trade on your smartphone.

Cons;

•   It’s only for telegram so no graph and history data could be seen.
•   It shows only real-time transactions.

Which wallet is best to accumulate Bitcoin?

I had discussed some of the wallets types before, you can go for hardware base crypto wallets for better security, and I only mentioned 3 hardware wallets there and some other hot wallets. But in here, you will find the best options to store your BTC for long term using hot wallets.

1: Exodus:

Exodus is best for beginner as they have 24 hour lives support and you can use it on phone and pc.

Pros:

•   You can add Exodus with Trezor hardware wallet.
•   Combining with hardware wallet increases security.
•   It supports 240+ assets.
•   You can use its web 3, desktop and mobile version as per requirement.
•   Built in exchange.

Cons:

•   It is not an open source wallet

To see the difference between open source and close source wallet. Pay visit here.

2: Electrum:

Electrum is a free cold wallet which provide next level security with its unique features. It’s in the market since 2011.

Pros:

•   We can use it on all the operating system, such as Android, Window, MacOS, Linux and Python.
•   We can use their Cold Storage option to keep seed phrase to perform actions, and hot storage can be used to watch the balance.
•   It supports hardware wallets like Trezor, Ledger and Keepkey.

Cons:

•   Only useable for storing Bitcoin.
•   24 hours support is not available here.

3: Mycelium

Mycelium is a phone base wallet and we cannot use it on any other device than smartphones.

Pros:

•   Built-in exchange, study material.
•   It supports hardware wallets, like Trezor, Ledger and KeepKey.
•   App is reproducible,

Cons:

•   If you lost your phone than you lost your money. As it is reproducible.
•   Works only on smartphones.

Precautions to take before withdrawing huge amount of BTC:

There are numerous precautions, a holder could take, but depends upon from which danger.
Danger of losing BTC, danger of getting taxed by IRS, danger of too much exposure and publicity that you do not want.
I will try to cover two of the above danger to avoid.

1: Danger of Losing BTC:

Talking about withdrawing BTC, to do that first we have to transfer it to an exchange, if your BTC is already in a wallet which comes with built-in exchanges than its more secure. Because in first scenario, you have to transfer from hot wallet to exchange wallet. Which will expose you twice.
While sending BTC from one wallet to exchange wallet, double check the address and do not send all the BTC in one go.
If you are using hot wallets on smartphone or pc, try to strictly avoid from download any third party and unverified app or unlocked APK MOD, because these APKs contains malicious viruses which could get all the info of your wallets.

2: Danger of getting heavily taxed by IRS:

In my country there is no huge taxes on withdrawing money, I prefer try to withdraw money in parts not in one go because in Pakistan there are many limitation of withdrawing money and in many other developing countries too.
But this danger is for the people of developed countries. Like USA, China, Japan, Russia etc. maybe I left some countries but let’s move on.
I am not a tax expert so I will just share some useful article’s and thread’s links to avoid heavy taxation.

Cryptocurrency taxes: A guide to tax rules for Bitcoin, Ethereum and more

3 Mistakes to Avoid When Making a Large Portfolio Withdrawal

CRYPTO-ASSETS: ANTI-MONEY LAUNDERING GUIDANCE FOR ACCOUNTANTS

Conclusion:

I hope this thread will help you, just to clarify, I collected data from many blogs and BTT threads. I also provided the sources and tried my best to come up with every possible helping material. If you guys find that something needs correction please let me know and do share your love. Regards Hamza.

Eidt= Images links are updated on 17th September 2023