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Topic
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Merits 1 from 1 user
Re: Buy the DIP, and HODL!
by
Ruttoshi
on 18/07/2024, 15:12:02 UTC
⭐ Merited by JayJuanGee (1)
  After a newbie understand how to buy and sell
I don't think that a new investor into bitcoin should care about how to sell his bitcoin because it is useless to him since he is only focus on accumulating bitcoin for a very long term since he has made up his mind to hodli for a long time. The first thing a new investor needs to figure out is how much from his discretionary income that he will use to buy bitcoin at the beginning that will not affect his regular buying weekly or monthly using DCA strategy. He also needs to know how much he will use to start building his emergency funds of 3-6 months that will be able to survive his bitcoin investment portfolio for the duration of time he plans to reach his bitcoin target. Discretionary income is the most important because it is from there that he will use to buy his bitcoin regularly and grow his emergency funds, reserve funds.

common sense require that protection of the asset is the key thing.
Exchange is the first place a new investor needs to store his bitcoin in the beginning because it is from exchange that he will buy his bitcoin from and because he is new in bitcoin and have the money to start buying immediately, he will leave his coins in an exchange and gradually when his bitcoin size is increasing due to regular DCA purchases, he can learn on which wallet that he can use to keep his bitcoin safe. You should also know that since he is a new investor and getting started immediately is the best no matter how little the amount is, he needs to pile up his bitcoin in an exchange so that it can get up to $500 and above before he can send it to his self custody wallet that is best for him. The fact is that whoever is DCAing do not have any option than to keep your coins in an exchange for it to be a big amount so that in future, your small inputs will not be a barrier to your profit. Also when bitcoin transaction fee is high, will you transfer $100 worth of bitcoin that you bought this week to your wallet, it will not be a wise decision and that is why at that period of time, you will leave your coins in an exchange for it to pile up to a good amount.

There is no problem leaving your coins in an exchange for just a month but it is when you turn the exchange to your permanent bank that is the problem.