Post
Topic
Board Speculation
Merits 1 from 1 user
Re: Buy the DIP, and HODL!
by
Obim34
on 07/02/2024, 14:22:10 UTC
⭐ Merited by fillippone (1)
I don't really think that buying a fix amount of Bitcoin when talking about DCA is proper because to my own understanding, if you really want to buy through the DCA method, then you have to buy with a fix amount of money, weekly or monthly irrespective of the current price of Bitcoin, but if you want to buy a fix amount of Bitcoin, them you might  spend more or less depending on the current price of Bitcoin, but the major challenge with this strategy is that you will be forced to tamper with you emergency fund that would have been for your upkeep till month ending when you are expecting money from another source.
The truth is that is actually very difficult and challenging to  constantly buy a certain amount of Bitcoin on a weekly or monthly basis through DCA method reason been that the price of Bitcoin use to be very volatile and the possibility of meeting or buying at the same price as the previous week is not certain and perhaps it could be that the price has gone up way beyond the price of your last buy so perhaps that's were the ability to adjust to Bitcoin accumulation pattern comes in, so perhaps you can still accumulate with your normal weekly budget even if the amount of Bitcoin you will have will not be up to the last accumulation but however if you have other spare funds that doesn't have any budget for, then you can adjust the accumulation pattern a bit.
We should not be confused on this, before the beginning of every Bitcoin accumulation journey, one should first consider setting a budget planned on the bases of dollars amount or Bitcoin.

Secondly, determining at what regular interval that becomes appropriate for the accumulation due to availability of funds, it can be weekly, bi weekly or monthly.

After all this, the amount to be invested according to it's availability should be on a dollar value in a way It won't affect one's cost of living and not in a specific amount of Bitcoin due to it's volatility, purchasing in amount of Bitcoin will not be sufficient enough to get what has been budgeted if the price decides to keep depreciating because it will be bought on a lesser value.

And of course, guys can do whatever they like, yet if we are talking about various accumulation strategies in this thread, it can be a bit irritating when we see guys talking about strategies that seem to gravitate towards trading or even selling to accumulate more BTC, but then at the same time, they do not present the idea very well, and surely it seem to be off topic since even the topic of the thread does not say anything about selling and the idea of HODL in the context of this thread largely is suggesting the opposite... don't sell.  So then there is nothing wrong with having different opinions, even though the concept of trading or selling to accumulate seems to be off topic.. at least for guys who may admit that they are in the earliest of stages of their BTC accumulation journey..

so sometimes we do likely have to try to figure out whether guys really have long term intentions or if they are merely engaged in some kind of flipping practice or pursuing dollars, which seems to then result in trading rather than investing, even though there still might be profits involved, but not the kinds of profits that would come from both longer term holding or investing over a long period of time, and then the earliest purchased bitcoins will likely have higher levels of profits than the more recent purchased coins, yet it also seems that the longer and longer that we stay invested then we will be building and building the size of our BTC stash and the longer that we are in, then probably the more likely that we are going to have older coins that have gone up a lot in value.. perhaps both exponentially and having several compounding events.. and at least those are goals, even though they surely are not guaranteed and even along our bitcoin journey we are also likely going to experience a lot of volatility along the way and have strategies in place to deal with the likely to be near inevitable volatility without panicking.
from what you're saying you may agree with me that between the earliest stage bitcoin holders and the recent stage holders, the earliest stage bitcoin holders has the tendency to hold much more longer than they have even previously held compared to the recent bitcoin holders who have just gotten into the market and have little or no experience of certain ups and down in the market from what earliest holders must have experienced.

Imagine a $7k price rise into the current $43k+ price of bitcoin making it $50k, a recent holder will be triggered)tempted to jump into selling to make dollar profit forgetting that the idea was initially to hold for a long long period accumulatively without tampering regardless of  the market price, but to an earliest holder such a price increase is next to nothing or less because he had seen many higher price increases in the past than what he's getting now and to him the holding target continues even after the next ATH. It will take a lot of discipline and determination to hold irrespective of what come may in price for a recent holder to find himself in the lines of holding for long as expected.

Experience could be one factor to facilitate one's decision to continue holding their investment, some people are easily moved with a slight increase in the price of Bitcoin and can as well be tempted not just new investors even those who had long stayed in the system and have not yet understand the power of long term holding, so it goes more with the mindset, we are clearly expected to open our mind and accept the fact that during our Bitcoin accumulation it is expected of us to generate the mindset of long term holding and abstain from unnecessary sell pressure.