Post
Topic
Board Speculation
Re: Buy the DIP, and HODL!
by
SuperBitMan
on 12/08/2024, 16:35:26 UTC
The extent at which most people talk about always buying at dip can be somehow discouraging to most people in terms of changing there focus from regular accumulation to buy only at dip because they always sounds very convincing as if buying at dip is what guarantee there increment of there investment portfolio, sometimes I feel that most of those who always talk about buying only the dip has little understanding about investment if not they would have only seen that dip is just a temporary opportunity brought through the Bitcoin price drops, so at that moment those who have extra funds will increase there investment or buy at once and move on there DCA instead of just depending on the dip.
It is important to buy the dip if you want to be profitable. Just because you’re using DCA strategy doesn’t mean you should ignore basics of trading and buy bitcoin at ATH. Because if you buy bitcoin at the top, you will be losing money when the market corrects itself. For example you buy bitcoin at 70k, how long do you think you can hodl the bitcoins before the price breaks 70k zone? DCA strategy is good for newbies who are just starting out but for those who have the knowledge of trading, they apply DCA in a more efficient manner.
Buying at the dip or not those not make one get profit, what gives one good profit in Bitcoin is holding patiently for a long time, anyone who's always waiting for the dip before investing is only delaying his or her investing journey.
I'm not saying buying in the dip is wrong, what is wrong is waiting for it to happen before you invest.
If you are using the DCA strategy to run your Bitcoin investment you also need to prepare your backup funds which will help you secure your Bitcoin investment and also help you to accumulate more when there's a dip by using your reserved funds to accumulate.
Buying Bitcoin at a high price is not a lose, one just need to use long term investment strategy, Bitcoin is already at a high price all we need is to accumulate as many as possible and then hold.
Those that are involved in trading don't apply any efficient manner of DCA strategy, what they do is trading and trading is trading no matter how you try to decorate it.
And I will advise every newbie to desist from trading and focus in long term investment to avoid losing money and unnecessary thinking.