Post
Topic
Board Speculation
Re: Buy the DIP, and HODL!
by
Wind_FURY
on 12/01/2024, 11:27:04 UTC

For plebs like us who don't have millions upon millions in capital, long term/low time preference/HODL is the only way to invest in Bitcoin.
That does not sound right.  DCA works for everyone, whether plebs or not.

In order to prepare for UP, you have to get a stake in the game, and if you have no stake in the game, then you run the risk of FOMOing when the BTC price is going up.. so sometimes a bit of front-load lump summing can be a good thing, and just planning to buy for the next 4-10 years or longer, and reassess at various points along the way.
?
What my post was suggesting/emphasizing was long-term/low-time-preference investing is much better for low capitalized plebs like me than a more active "trading" approach, which opens the pleb to more mistakes, more emotions which also opens him/her to further trading mistakes, and a negative effect on his/her general mental well-being.
Yeah, but you and I already agree (and know) that this thread is not about trading, so there no dispute that selling in order to buy does not tend to be a good technique for anyone except maybe folks who want to learn how to trade and gamble, which results in 90% or more doing worse than if they had just bought BTC on a regular basis rather than screwing around with those kinds of selling techniques.

So then the main questions in front of you and me still revolve around our differences of opinions in regards to what kinds of circumstances might constitute waiting versus just buying right away and regularly... I think that my post largely speaks for itself.. because ongoing buying may well be better than HODL, and even if it is not better, at least it is not "the ONLY way" to invest in bitcoin.
It's merely a matter of personal preference and acting on what you know.

Sure you can account for personal preferences, but personal preferences is not going to completely resolve the potential issue regarding some practices likely being better than others, so you could exercise your personal preference and end up getting a worse result, even in terms of getting what you want.  Sometimes people do not necessarily know that it is better to do some things that might be uncomfortable in the short-term but end up having better long term results. I have argued those kinds of points several times, in order to suggest that frequently a bitcoiner who buys regularly and often might have a higher cost per BTC, but he also might end up with a larger BTC stash too, as compared to the ones who are not buying regularly and often..


But in trading and investments, there's always more than one way of doing things, no? It can't be just YOUR strategy that's profitable, but a multitude of other different strategies. You prefer to DCA, and that's OK. I prefer to save, and wait for a discount, knowing that Bitcoin cannot surge up forever. Always there are corrections and crashes, and it would be laughable to believe that macro-economics will never have any effect on Bitcoin. Because as Bitcoin matures, it has become more and more entwined with legacy markets. March 2020's crash was proof of that.