Post
Topic
Board Speculation
Re: Buy the DIP, and HODL!
by
Dailyscript
on 29/01/2024, 20:23:58 UTC
It's generally advisable to take a long term perspective when investing in Bitcoin and focus on the fundamental of the technology and it's potential growths.
the decision to go for either what you call long term investment which is HODLing or short term investment which I feel you're referring to TRADING depends totally on the individuals choice and experience.

For people that have mastered the art of trading, they might look at buying the DIP end HODLing it as a strategy for the inexperience ones while those that only buy the DIP and HODL might think that traders are high risk takers but the thing is more of focusing on what works well with you and sticking with it. The only issue is that because of the complexity involved with trading and the chances of a new person just starting his Bitcoin journey to experience looses more in trading than he will do in just Buying the DIP and HODLing is the main reason why it is more advisable for a beginner to start his Bitcoin investment journey by just accumulating it and Hodl.
Even people who have mastered trading still lose money while trading, which is why trading is not something a newbie should practice because he or she will lose his money. Of course, traders are high-risk takers because they will be making little profit from bitcoin by buying at a low price and selling at a high price in the short term. Which I think is not a good strategy towards owning a bitcoin because you might miss out on bitcoin when you buy bitcoin at a low price and sell it at a high price and still wait for bitcoin to dip so that you can buy it again, but the bitcoin price refuses to dip and keeps making an upward trend to the point where you cannot buy it again. It is not just for beginners to accumulate bitcoin, but they should make sure before they start accumulating bitcoin they have a source of income that they will use, like 10% of their income to accumulate bitcoin every week or month, and they should also keep an emergency fund to take care of their financial needs after they start their bitcoin accumulation journey with the DCA strategy, so they will not sell their bitcoins at a loss because there is no more money to take care of their financial needs.

Yes that is true, but isn't someone who has now managed to reach the professional point in the world of trading basically they also started as a beginner? of course and that means that maybe I would say that investing is for everyone but maybe not everyone can go through all the processes that exist in the world of investment especially in terms of difficulty and complexity and this is also the reason why there is the word "professional". In the world of investment we cannot rule out the possibility of risk because no matter if you are a professional there will still be certain times for you to experience losses and this confirms that losing money in the world of investment is a risk for everyone, but the difference is that a professional has a lot of experience that produces knowledge to minimize the possibility of risk, I mean they can minimize the amount of risk with the knowledge they have and this experience does not exist in a beginner but over time beginners can also be at this point if they are able to go through all the processes well.
I agree with you on this. Most people make the mistake of investing in bitcoin when they do not have any source of steady income. They get to use all the money they have saved for a while or money gifted to them to invest in bitcoin, which is not the right thing to do. At all times, an investor should have savings or an emergency fund where he can run in case any live events occur in the future and he won't be caught off guard. Another mistake beginners make is that, after investing in bitcoin, they expect to live off the profit from their bitcoin investment. They have the conclusionn that bitcoin is a way of elimniating poverty immediately. While there is no certainty that bitcoin will give a huge profit immediately, they can only be successful if they are willing to hold their investment for a long time. I believe putting all our hope in bitcoin is a bad idea.Once we have started our investment, it is also good to diversify our income streams and not rely on our investment for our livelihood. It will surely hinder our investment unless a huge amount of money comes along to buy back the profits that have been taken. However, taking money from our investments is a horrible idea; it shows that the investor lacks self-control.