Post
Topic
Board Speculation
Re: Buy the DIP, and HODL!
by
Patrol69
on 02/01/2024, 03:10:09 UTC
Of course, frequently risk can be compensated by position size, and of course, if you end up being too whimpy in your BTC investment because you are afraid of downside risk, then you still will end up profiting, just not as much if you had been more aggressive in your investment, so you can choose your level of whimpy versus aggressive and have to live with the consequences either way.. which still ends up being better for the whimpy investor rather than the no coiner.. .. even while there are no guarantees of such.
Aggressiveness is fine in investing but I don't think there is any need to be aggressive when it comes to holding your investments for a long time. Aggressive means that the investor will not think twice to sell his investment, I think if he is so aggressive he will not be able to hold his investment for long. Before investing, when the investor thinks too much about what time of the market he should invest, what time he will invest, when he wastes extra time, basically the investor should be aggressive for that time. 
An investor can invest aggressively and still not get affected, especially when he didn't over do it i.e he invested aggressively and still have his emergency funds and every other important needs available. It is just like I decide to invest $100 into bitcoin with ease and it will be as if I am not putting in money into somewhere. I can decide to increase my regular DCA amount to $200, but with this, I have to trim my expenses so that it wouldn't affect my monthly expenses and I will still have reserve funds for other purposes instead of me still investing with $100 because I want to be buying other things that are not necessarily needed.

If you just started your bitcoin journey, investing aggressively is good as long as it wouldn't affect you so that you can use a short period of time to have a significant amount of bitcoin. It is when you over do it, that is you invested with almost all your weekly income, forgetting that you will need funds for some financial needs that is when you will end up destroying your goal because when you are short of funds, and an emergency arise, you will be forced to sell your bitcoin at a price of is not of your will.
It totally depends on an investor how much money the investor can invest in DCA method. It is ok for you to invest $200 in DCA method but for someone else the amount may be more and for some investors the amount may be less. There is no fixed investment amount so every investor gets the opportunity to invest as per his wish and according to his ability. I have already cleared the point that an investor should invest the amount of money that he does not have to sell the investment later to meet his needs.
That is, if you are the sole earner in your family, you must know how much money you spend every month or week. The remaining money should be invested in Bitcoins, keeping the amount of money that will be spent every month and keeping some money aside for other needs. The remaining money beyond the expenses is asked to be kept aside because people may need money at any time or any kind of accident may happen and investors are asked to invest in this way so that the temporary financial crisis can be overcome with extra money at that moment. Bitcoin price has currently touched the highest in the last year and according to Bitcoin price this year.

Bitcoin price today touched around $45.5K. That is, the price of Bitcoin is now at its highest level, but investors have not stopped investing now because the market may rise further. When Bitcoin touched $40k for the first time last year, it was the highest price Bitcoin had ever touched and investors poured in at that time as well. Now past $45K investors will still invest and in the future if the price of bitcoin increases further investors will invest and even if the price goes down investors will invest. 

Regardless of how much the value of Bitcoin goes up or down, investors need to understand that their plans are long-term.