Re: Buy Bitcoin, and HODL!

Quote from: JayJuanGee on Today at 02:33:36 AM

On the other hand, any of us might come across periods in which we receive extra money for a variety of reasons. Some people might receive bonuses two or more times a year or there could be other times in which extra money comes available, and surely there could be some thoughts about lump sum, buying the dip or just incorporating that extra money into DCA... and maybe if the extra money just gets used right away for BTC purchases, then that extra money also becomes just a part of the person's DCA system, so I am not even suggesting either choice is more preferable since these are the kinds of discretionary choices that each of us has to make in terms of how aggressive or how whimpy that we want to be in terms of our ongoing bitcoin accumulation

from the way I look at it, after I have laid out plans on ground for my DCA, if I receive an extra income or some sort of bonus from any source, it's iether I will use part to strengthen my emergency funds while i use the rest to make a lump sum purchase since keeping it in fiat form and waiting for possible DIP before buying might put me in a position to likely spend it on unreasonable thing.

Quote from: Tmoonz on Today at 05:02:52 AM

Quote from: ginsan on June 12, 2024, 09:16:30 PM

Quote from: Sim_card on June 12, 2024, 05:21:22 PM

I agree with you that buying at the dip should be done with some unexpected funds that comes our way which we don't have plan for, and whether they come or not, our regular DCA continues. What I do is that whenever, I am given a bonus at work or traveling allowance, training allowance, or some incentives for motivation at work. I keep such funds without touching it so that if it happens that bitcoin price dips, I can take advantage of the dip and buy more. And if it happens that I don't have any extra funds apart from my monthly income, my regular DCA is what I do and focus on more weekly.

No one knows when the decline will occur, but everyone has the opportunity to buy it where they must have reserve funds which they prioritize to buy when the price of bitcoin falls. If they don't set aside spare money to buy at dips, of course they will miss the moment to buy when a decline is occurring. Along with the accumulation journey with dca it becomes very good to apply because every time we can buy on dips.

Apart from that, we are planning a long-term investment journey in Bitcoin, so prepare your money as best as possible so that you don't miss out on DCA purchases. As you said, it is quite appropriate if you are able to set aside money for a reserve fund, of course it is quite the right step because you can buy bitcoin when the price is corrected by 10% or more. Meanwhile, buying aggressively when prices fall can be combined with DCA+ buying at dips. This is also classified as aggressive buying and without realizing it, we often do that.

Not all investor might actually be a fan of buying the dip because probably they don't want to get into some emotional drama as per being already used to dca and may intend sticking to as not to be carried away and overly invest as the cause of buying the dip. Any investor that is consistent with his dca can as well benefit from buying the dip, I stick with DCA because it's something I have have gotten use to. I didn't want something that will take me out of my original plans because I have already programmed my income how to spend them so I don't run into any kind of troubles. Going out of the plan without completely prepared for it can be very detrimental but however for those who have those figured out such that it will not influence their other plans can maximize such opportunity without over doing it. but for people who hasn't made any provision before hand, it's best to continue with what they are already used to in order not to get into trouble.

Note that apart from the problem of an investors inability to knowing when exactly is the DIP, almost all investors would normally want to buy at the DIP price and it doesn't mean they have to go out of the plan or to do anything strange. As much as buying using the DCA methord helps to keep you consistent with your routine buys, a complementary approach that could add up pace to your accumilation is to also make provision for buying during the DIP buy that still requires that you set out special funds for such purpose which wouldn't work to well for someone that's just fresh to his bitcoin accumilation journey and that hasn't figured a lot of things out financially.