Re: Buy the DIP, and HODL!

There is a way the money will grow and we begin to imagine what we could achieve with it, this is where the temptation of selling come from.

There is nothing greater than seeing bitcoin as a life time investment, and legacy of which wealth is passed down to our children, if you have this initiative, you will hardly want to sell all your bitcoin to buy some kind of achievement that you think is better than your bitcoin achievement, which I don't think that there will be any achievement which will be able to generate good profit compare to the profit that your bitcoin portfolio will generate for you over time.

Quote from: Odohu on January 23, 2024, 07:42:59 AM

Furthermore, I have seen a case of someone using the funds for DCA in buying something else. His emergency fund got exhausted and he needed more money for his needs. This is one of those things that can come up even when you think you have got everything planned out.

I will say he didn't have proper plan and that is why he ended up using his DCA money and also exhausted his emergency funds. This is why as you are growing your bitcoin investment, you need to also be growing your emergency funds to a certain level that no matter what the circumstance maybe, your emergency funds will be able to take care of it. Another thing that I learnt is that, it is good to also have reserve funds available and prepare for the worst case scenario playing out, when you are on your accumulation stage, so that whatever way you find the suituation, you can overcome it without selling your bitcoin investment. In such situation, you can stop DCAing and wiat till when you have overcome the financial crisis that you are facing.

Not everyone who is accumulating bitcoin with the DCA strategy has the same financial power to save a reserved fund after saving the fund that will take care of their financial needs. So I agree with Odohu that someone used his bitcoin DCA fund to buy something else because there will be a situation where you will find yourself handling a project and your emergency fund will not be enough to finish up the project, and there is nowhere you can get money in the short term. You will have no choice but to skip buying bitcoin for some weeks so that you will be able to finish up the project.

Unless you don't have a steady income, if you have a steady income then why will you skip buying when you know you're DCA? and every investment is about planning as you can't just run into a project that will eat up your reserved funds and even make you to skip buying because you've already had a target of accumulating via DCA, and your reserved funds is for miscellaneous at the end of the day so that you will not tamper with your holdings.

What you need to understand is that DCA requires consistency before you can accumulate enough Bitcoin that's why you shouldn't enter into a project yet when DCA so that you won't be under pressure of not accumulating simply because you want to satisfy your project, but perhaps, that's the more reason why sharing ones income into three is important because one part of your income would be used to DCA, the other part for some expenses before your next income arrives and the third part is an urgent fund that in a case where you have exhausted the money for expenses before your next income you can possibly go to your urgent funds to sort out any other expenses that you needed pending when your income arrives but don't get involved in anything that you can't handle before your next income otherwise you might be forced to either tamper with your holdings or you may disregard buying at that material time.