Post
Topic
Board Speculation
Re: Buy the DIP, and HODL!
by
Smilevictorobinna
on 27/05/2024, 23:13:26 UTC
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Normally, buying bitcoin in the bear market is the best time to accumulate bitcoin because we will accumulate more bitcoin with a lesser amount of money, and the bear market will facilitate us to achieve the quantity of bitcoin we want to hold because bitcoin is always cheap at that time. For instance, just like JayJuanGee accumulated most of his bitcoin holdings in the bear market, when bitcoin was very cheap, it helped him achieve the quantity of bitcoin he wanted to hold quickly. JayJuanGee can decide not to accumulate bitcoin again because he has already accumulated enough bitcoin, which is very much okay for him. But that doesn't mean that accumulating bitcoin when the price is at its peak or bitcoin halving has happened is bad. It only means you will be accumulating bitcoin when it is expensive, and you will need good capital to help you accumulate a good quantity of bitcoin on time because the demand for bitcoin is high, scarce, and expensive to accumulate.
The example shown by JayJuanGee can be used by anyone who wants to get Bitcoin when the price is cheap and indirectly he also teaches Bitcoin investors to take advantage of this moment to collect as much Bitcoin as possible. This method is very easy to do, buying at a cheap price and selling it again when the price is high is the goal of investors to get the profit they want. Accumulating Bitcoin when the market is entering a bearish phase will make you calmer and able to hold Bitcoin in the long term without having to worry about the price going down further. The great potential that Bitcoin always presents will allow you to collect Bitcoin at a cheap price in greater quantities.

Collecting Bitcoin when the price is at its peak will make you have to wait longer to get a profit, usually when the price has reached the peak it will experience a sidway which makes your assets experience a decrease in value. I prefer the method used by JayJuanGee because it will give you peace of mind when investing and has the potential to get bigger profits. Another advantage of buying Bitcoin when the price is cheap is that you don't have to wait long, usually the market will experience a Bullish phase after a downturn in a Bearish period.

You are saying a similar thing as Mayor of ogba, which is not what I say, and I surely don't know about what to do when the BTC price goes up... I am not recommending anyone wait, even if the BTC price is going up.. since we can never really know when the BTC price is going to stop going up and we cannot presume a correction, a dip or a bear market...

I am also saying that the longer any of us is in bitcoin and we are continuing to buy bitcoin, there likely are going to be periods in which the BTC price is going down rather than up, but we never know how low the BTC price is going to go or how long the seemingly relatively lower prices are going to continue to stay low.

So yeah, if we are accumulating bitcoin over a whole cycle or even over a couple of cycles, we are going to likely begin to appreciate better that there are periods that the BTC price seems low, but also the longer that we are in, we would have had already spent a considerable amount of time already buying bitcoin and probably some of the bitcoin that we bought is going to be at higher prices and some of the bitcoin that we bought is going to be at lower prices. .. so there is going to be a mixture of prices in which we had bought our bitcoin and we can calculate our average price per bitcoin too and we can calculate the extent to which we might be in profits or not.. so those kinds of calculations regarding our bitcoin stash size, its value and where we want to get are more likely to inform us in regards to what we are going to want to do... so it might become obvious in our own context, but not obvious in the abstract, and in the abstract my overall suggestion is just to keep buying no matter what the price for at least a whole cyle, and depending on your own level of buying, you may well need to just keep buying for a couple of cycles before you might start to feel comfortable to modify your approach in a way that attempts to calculate dips rather than just ongoingly buying BTC at any price within the context of your discretionary budget.. and not waiting for dips that may or may not end up happening..
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DCA Indeed the best method to accumulate BTC over the period. And buying at dips may be may not be possible anymore, you should know the difference between trading holding and the methods that suit best to achieve your aims or goals.

If you are planning to hold btc for a longer period then DCA is good for you but other than DCA you can do a lump sum(buying all at once). In most cases, Lump Sum can make you a better profit than doing DCA. The choice between them also depends on your goals and capital.

If you have a huge capital present at the moment, then you can do a lump sum and can take entries by doing a little but fragmentation (taking entries in parts) but in the long term (5+ years) these small entry parts don't make that much difference.

Long story short, if you have a lot of money now you can go for a lump sum and if don't then you might want to go for DCA. But first, ask yourself what are your goals and yeah doing your own research is also necessary.  The best time to buy is when you think that now is the good point (for long term) for short term you have to do TA and FA.