Nowadays many people buy dip and sell it back to the pumping hall. May take longer or less time to reap benefits. It totally depends on the investor. Because an investor will depend on how long he will hold his investment. But usually I keep the investment for a long time and it is able to get the maximum benefit, because the longer the investment period, the higher the benefit.
Funny enough I don't believe that anyone who holds his investment for less than 4 yours is a long term holder except on cases where the person was able to accumulate so much bitcoin in such a short amount of time and maybe was lauck to invest in a time like this(for those that started invest maybe mid last year or from last year). Why short term investment is a abuse to investment and rather trading is because you are not following what an investment should be,
how would you buy low and sell high without letting any compounding effect come on you investment.For sure, I would like to point out that historically bitcoin has had compounding effects over each cycle and also even more compounding effects over several cycles, yet I would like to also assert that compounding effects are not guaranteed merely because a person stays invested in bitcoin for more than one whole cycle.
There is always a risk that bitcoin might not go up in value and even that it could go down or go to zero, so even though many of us appreciate that bitcoin seems to continue to have one of the best investment theses, even perhaps the best, it still is not guaranteed to go up, and I think part of the reason regarding having an investment timeline that is 4-10 years or longer is to make sure that you are considering bitcoin as a long term investment rather than merely trying to trade waves, and sure everyone is free to do what they like in terms of their approach to an investment, even though there are probably plenty of us who would consider that you are not investing in bitcoin if you cannot at least come to it with a minimum of a 4-year investment time line... and yeah, maybe when I came into bitcoin in late 2013, it might have had been more difficult to actually commit to at least a 4-year investment timeline since bitcoin was ONLY less than 5 years old at that time in terms of how long it had been running, and maybe only 3.5 years or even less in terms of having (and growing) some kind of a market price.
So various bear case scenarios should also be included in terms of any thoughts to get into bitcoin and to build a bitcoin stash, and are non-bullish cases are not eliminated merely because the timeline is longer... so be careful both in terms of suggesting that compounding value is guaranteed and/or that negative scenarios (or less bullish scenarios) are no longer applicable, merely because you choose a longer investment timeline, whether that is 4-10 years or even longer than that.
From trying to put the pieces of what I think I understood from what you are saying is that we should always bear in mind the possibility of our investment not giving any returns even as we are going for a longer time frame cause anything can happen along the line of that long term holding and maybe bitcoin going to zero or the price for the whole 4 years was only going bear and no compounding Vale were to even be added to the investment.
IMO you have already given a good solution to this serval times and that is an approach that we are investing with money that we won't miss and just incase in that long time frame of events, the worse happens we won't be in a financial wreak.
But this springs up a question, what about those that are actually investing in bitcoin with money there would missing this case I don't mean over investing or allocating to much but for someone at retirement that has been accumulating bitcoin to live off it, and has been investing his retirement funds in it, what do we say of this.