Quote from: Justbillywitt on Today at 05:41:06 AM

Quote from: Salahmu on December 03, 2023, 08:50:16 PM

Using 50% of your salary seem too high for me because is more like aggressive investment because let say your monthly basic salary is $200 and when we remove 50% you will be left with $100 so however is obvious that within the month there is every possibility that you will spend it all, and perhaps if you have a family you will have to take care of your kids needs as well as your own needs so there is every tendency that $100 will not be okay to solve those needs before you could receive another salary.

So in as much as you are eager to accumulate as many Bitcoin as possible doing it in a wrong way will result to tempering your accumulated Bitcoin, so I would suggest that instead of using 50% of your salary you could cut it down a bit to may be 10% instead because it will allow you to have a breathing space such as having a good reserve funds that could possibly take care of any needs while you keep accumulating consistently on a weekly basis.

I think everything depends on what is your plan and the target you have set for yourself. Let's say I set a target of having of having a particular amount of Bitcoin before the next halving and I have calculated that investing 10% of my salary won't allow me achieve that, but spending 50% of my salary will help me achieve my set goals. All I have to do is cut down some of the things I spend money on which are not really necessary to achieve my set goals. Also there is a possibility that I don't have a family yet and I don't have any kids yet. So instead of spending on women, alcohol, parties and eating in restaurants etc. I can reduce these things and make my own food at home. If I do these things $100 will take care of me for a month if we are using the $200 you talked about as monthly salary. And mind you as a man it's not advisable to only have one source of income. So let's also assume I have another business that gives me like $40 weekly I will be fine with investing 50% of my basic salary from my other job.

I don't disagree with anything that you are saying Justbillywitt, but in your last couple of sentences, you are fighting with the hypothetical.

If we say that you have decided to spend 50% of your income in bitcoin, and you agree that your income is $200, then that would be $100. So yeah, it is up to you if that is manageable or not based on your situation, and hopefully you have an emergency fund too.

If you add $40 to your income, then your income went to $240. It did not stay at $200, so if you are still investing $100 into bitcoin then that would no longer be 50%, it would be 41.67%. If you want to continue with 50%, then you would have to invest $120.. based on that exact example.. if you add a side income, then you have added to your income, and lowered your percentage into bitcoin, unless you also put 50% of that into bitcoin, and sure a lot of different variations are possible, but you should at least present your hypothetical properly and not claim to be investing 50% of your income into bitcoin when the facts that you describe show that amount to be 41.67% when we account for all of the actual income.

Quote from: Roseline492 on Today at 09:58:45 AM

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Quote from: Justbillywitt on December 02, 2023, 09:26:43 AM

Quote

Also one of the factors that always affect an investor from accumulation of Bitcoin is always expecting the Bitcoin price to dip before they could start accumulating, considering the price movement of Bitcoin waiting for the dip may not be advisable because you could be waiting for a long time and the price is still not dip.

By doing lump sum buy, buy the dip, and buy through DCA. I have done this for like a week now and I have seen the difference from my previous approach.

There is a situation where you will find yourself, with these three strategies you can be able to start accumulating your Bitcoin. For instance, if you want to buy Bitcoin now, you will be afraid to buy because your mind will tell you, you are buying it at a high price, and you would not want to do that. But if you divide your money into three parts, and immediately buy with a lump sum as the Bitcoin price keeps on an upward trend, keep the second part to buy Bitcoin when there is a dip in Bitcoin price, and the third part is to buy Bitcoin through DCA that will help to control the volatile part of Bitcoin in your holding. These three strategies will help people not to miss out on Bitcoin when the Bitcoin price is too high because if you want to use only the DCA strategy you might not be able to accumulate the quantity of Bitcoin you want on time.

It seems you have another way of buying in Lump Sum because from your quote you are trying to say that Lump sum is good when the Bitcoin price is high but however on the contrary I don't think is the best way to Lump sum because the quantity of Bitcoin you could get if you Lump sum when the price is higher will be a bit small compare to dip, so however is mostly preferable to Lump sum when the Bitcoin price is a bit dip because that's the only way you can get a good amount of Bitcoin.

Also you don't necessarily need to use all the three strategies or rather method before you can start your investment because as an investor having too much strategy can affect your accumulation process either negative or positively so perhaps you could just focus on the DCA and Lump sum if you have the funds instead of three strategies.

The more pure idea of lump sum has nothing to do with whether the BTC price is high or low, and part of the idea is that if you receive some kind of extra money or cashflow (or after you go through your finances, you realize that you have an extra $1,200 that you did not previously realize that you had available for bitcoin)... So right at that time, you decide what you are going to do with the extra money that you suddenly have.

So you could do what Justbillywitt decided to do:

1) $600 (50%) into buying right away (that is lump sum). Lump is based on the price right now.. .. right at the time that we know that we have the money in our bank account or whereever it is that we know that we have it... and we do not know if the price might happen to be high or if the price might happen to be low.. we are going to decide are we buying now or not... .. if so then we are lump summing and if not we are putting it into a different category... which might might be buying on dip or DCA.

2) $360 - 30% into DCA. Thus, choose your time period.. maybe over a few months or maybe over a few weeks.. or maybe even over 6 months, even though over 6 months would end up being a pretty small amount per week ($360/26 = $13.85 per week), but if it is merely adding to a DCA that you already have, then it might be a practical option to just add that additional amount on for the next 26 weeks.

3) $240 - 20% for buying on dips. Again, if you already have a buying on dip system in place, you could just add the $240 at various points. Let's say that you already have a system in place that starts from $37k, and buys $60 of BTC every time the BTC price drops $1k, and so maybe you decide that you are going to add the $240 into 6 parts onto existing buy amounts, or maybe you decide that you want to add 4 additional buy on dips at the bottom of the amount that you have already have set and if your buy orders only go down to $30, you decide to add 4 more buy orders of $60 each from $26k to $29k. Yes. I understand that right now buying on dips seems a bit crazy... but these may well be some of the trade offs that go to show that buying on dips is not always a good idea for beginners still establishing their stash, but it might work better for someone who already has a larger BTC stash level, relative to his goals.

Quote from: adultcrypto on Today at 12:39:23 PM

A little personal appraisal
Bitcoin have once again shown its hands by breaking $40k price point. Now let's be more practical about it. I joined this thread around early August this year and met the DCA method of Bitcoin accumulation as the dominant discussion. I jumped into it and decided to apply it weekly starting from when Bitcoin was around $26k. As of today, I have confirmed that I have recorded over 25% gain in my entire portfolio without feeling any financial pressure as I was living my normal life, meeting my financial obligations yet setting aside some portion for Bitcoin, this has grown tremendously. The DCA method is a wonderful approach that those who have steady income can adopt, the advantages are just so many.

Anyone still doubting Bitcoin as of now should have a rethink. We might see something so significant in the next bull run because it is obvious there is a growing interest in Bitcoin. Those waiting for the bull run after halving might be wrong this time.

The mere fact that the BTC price went up in recent times does not hardly prove anything, except that the BTC price went up, so any BTC that you bought prior to it going up is in profits.

Big wooptie doo.

If you lump sum buy at $26k and then you sell at $42k, then you would have made 60% on your investment, and it would show you that "trading works."

Still a BIG SO WHAT.

If we are talking about long term investing in this thread, sure no problem appreciating some of the short term signs that we are on the right track, but still does not resolve a variety of dilemmas that guys likely still have when the BTC price jumps around so violently, then they are faced with dilemmas about whether to buy BTC right away.. DCA'ing and/or whether to wait for dips... and especially newbies have dilemmas over these kinds of matters, and get tempted to sell so that they can buy back cheaper.. which frequently causes more stress than what it is worth..

Actually, I find the ones who had been investing with a DCA style for the last 2-3 years to be much more convincing, and they might even be saying that they had been building their BTC holdings for the last 2-3 years and finally getting into profits. .and that is much more convincing than the mere fact that any of us might have bought coins low in any particular dip (or prior to a recent rise in BTC prices).

Quote from: Wind_FURY on Today at 02:16:09 PM

I may not prefer using DCA as a strategy for buying Bitcoin, but obviously El Salvador's DCA under the policy of Nayib Bukele is starting to produce dividends. Does anyome know what the average cost of ther investment is? I believe surging to a new all time high would make that about 2.5x, no?

If Bitcoin surges more to a six digit valuation, then some of the other Latin American countries would probably start proposals to DCA Bitcoin. Bukele front-ran all of them. Cool

Surely any of the folks (whether governments, institutions or individuals) would be starting to show quite a few payoffs for any consistent buying of BTC, even if they might have front loaded some of their investment at higher BTC prices... so the persistence will be part of the ways of getting payoffs... but since our dip was so severe, especially between about June 2022 until about January 2023, there were likely quite a few folks who were having trouble in terms of both having money and to have enough confidence to continue to buy BTC during those times.. .. but surely almost any amount of ongoing buying of BTC would have had contributed towards putting that government, institution and/or entity into a good position....

Of course, Microstrategies has been the most transparent in this direction, even though their average cost per BTC is still quite high.. around $30k, but seemingly quite solid in terms of overall financial position. Bukele has been a bit more obscure about the investments and also the last time that they were showing averages was in the $40ks.. but if he/the country had been buying 1 BTC per day of the last year, that would have brought down their average costs a bit.. but still no real reporting on the matter.. especially as compared with MSTR.