Re: Buy Bitcoin, and HODL!

qI 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

When it come to accumulation of Bitcoin, we should always keep our DCAing constant irrespective of the market conditions. Expecially those of us that can't afford to purchase large quantities of bitcoin. Because if one have the mindset of always waiting for the dip before accumulating he or she will only endup missing out or having small quantities of bitcoin in their portfolio.

That's why is better to save some funds (which is known as reserve funds) in case any dip occurs one can purchase the dip with the use of reserved funds, and he or she can choose to spread it out or go all in with the reserve funds like lump-sum purchases.

And there are investors who made buying at the dip as there Bitcoin accumulation strategy and what if the market did not dip will they keep waiting? It will be better they use the DCA strategy and also buying the dip strategy together so that the DCA strategy can help them accumulate more Bitcoin at different price level weekly or monthly and also buy when the market is at dip with the help of their reserve fund. But if the investor is still a low coiner the buying dip strategy alone won't be a good Bitcoin accumulating strategy.

There may be absolutely no need for a brand new investor, and maybe someone in their first few years of buying/acumulating bitcoin to employ buying the dip strategies rather than sticking with straight-forward and regular DCA (which may well not even be sticking with any particular amount of BTC, but instead figuring out how much BTC to buy each week from the amount of disposable income that he has for that particular week, whether that is $100 or $10 or some other amount).

Yet of course, there might be some psychological reasons to hold some money aside for buying the dip, but it may or may not end up paying off because we cannot rely on dips actually happening or even happening to such an extent that it is even going to make much of a meaningful difference in a person's bitcoin journey, especially if the person might be new to investing and ONLY investing around 10% of his/her income so it could take a whole 10 years to have 1 years of income invested into bitcoin.. so it is difficult to understand and/or appreciate what value might have had come from buying the dip rather than just buying regularly and not changing behaviors based on factors that might be difficult to measure the extent to which there might have been any kind of advantage to straight-forward DCA.

Well said and I think the whole issue starts with deciding what a dip is. Nobody knows what a dip is until it is too late. Sure if Bitcoin goes down all the way to $30k now, that is probably called a dip. But if it does then I think those who were waiting for a dip might be so afraid of the recent price development that they are now uncertain whether this drop has come to an end or whether we go down to $10k. If someone defines 10% as a dip, ok then stick with it and leave some money aside and make the purchase if those 10% are reached at a certain point in time. If it is not reached by say one month from now, they can still use the money they put aside and use it for an increased DCA investment for the weeks or months to come.

But all of this goes back to having a strategy and while some set one up, only a minority sticks to it. That's why I think a rigorous DCA strategy works best for most and if unexpected additional income occurs, the money can still be used for some degree of freedom.