Post
Topic
Board Speculation
Merits 1 from 1 user
Re: Buy the DIP, and HODL!
by
Frankolala
on 26/11/2023, 15:31:29 UTC
⭐ Merited by JayJuanGee (1)
It’s cool to sell part of Bitcoin at high values in order to buy it again. But isn’t it also cool to buy more BTC at the very bottom?
A bad decision for long term hodlers mate, because when they sell at high price and plan to buy back at the dip, they might end up missing out or buying less bitcoin compare to the fraction that they sold. Another disadvantage is that the person is a trader and not an investor because he will be carried away to make quick profit than focusing on how he can reach his bitcoin target with accumulating more bitcoin to his portfolio rather than selling the one that he already has, which might make him make some wrong decisions along the line when he sells that will make him run at loss.

It is the coolest to buy bitcoin at the bottom line, when you have prepared for it by saving extra cash to buy at the dip, so that when the dip comes you can take advantage of it and buy in discount. But not selling your bitcoin because the price is high and believe that you will buy back at the dip. This is a poor investment mentality because it is hard to know when the dip will come and what will be the the bottom line when the dip comes. Such trader might even miss out buying at the dip because he has plan to buy more cheaper to sell at high price and when bitcoin price reaches the bottom line, he will not want to buy believing that the price will still dip and before you know it bitcoin price will begin to pump again and he will be busy sitting down at looking at the market all the time because of his wimpy decisions to buy at the dip and sell when the price of Bitcoin is up.

A long term investment with using the three methods of accumulation will help you achieve a your investment goal, even though it will take so many years rather than just sticking on trading. Newbies should stay away from such mentality because it will ruin their investment goal.

Having another investment aside from Bitcoin is good because you will not rely on your Bitcoin investment before you can make money but it is also good to have a real or physical investment that will give you daily or monthly profit to enable you to hold your Bitcoin to the expected year that you want to sell it. This investment can help strengthen your Bitcoin accumulation power because you will have more money to take care of your financial challenges and still have the money to invest in Bitcoin
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Whatever, but you should know that you must have a job that gives you income so that you can use the extra money that is left after taking care of your monthly expenses and having an emergency funds with reserve cash to be able to meet up with your regular DCA and bitcoin portfolio increment. It is not necessary it should be a business or investment because some low income earners don't have enough to startup  an investment because it might need major funds to get started unlike bitcoin investment that you can get started with a very small amount at first before as time passes by you can start increasing your DCA amount if your cash inflow can afford it.

From my own side as a low income earners, it is good to get started with bitcoin investment now rather than thinking to get another investment before you can start to invest in bitcoin because what matters is that you have a cash inflow that you can use to buy weekly or monthly. I don't think that there will be any physical investment that will give good returns that bitcoin investment when held for a long term because most investment are risky and we can not be certain that we can make profit from it very fast. Bitcoin is already a risky investment so why will you get distracted with trying to involve yourself in more risk as a newbie.