Quote from: Tungbulu on Today at 07:17:59 PM

Quote from: JayJuanGee on Today at 04:24:06 AM

Quote from: Sexylizzy2813 on September 08, 2024, 10:13:28 PM

The way Bitcoin price is going down every week is seems we might be getting back to amount of $40-35k if care is not taken because from all indication the market price hasn't been productive and we can't say it will get back to that amount we have all been expecting like the $70k and I have been hoping to see Bitcoin price hit $70k since the last time it got to that amount. For now Bitcoin price is $54k and the week have just started but I can't say it will get to anything close to $60k before the week runs out and this month can't get to anything close to $60k.

I have not seen the BTC price go down every week. Sure we have had quite a bit of consolidation going on since March, and sure there seems to be a bit of a downward trajectory, yet that appearance of a downward trajectory since March does not give any assurance that we are either still not in a bear market or that we are going to have any more correction than we have already had.

Sure, no problem to prepare for down both financially and psychologically, yet I hope you are prepared for up in the event that down does not happen.

Remember it is possible to prepare for UP and DOWN at the same time, so how much preparation that any of us should put into preparing for down versus preparing for up remains a bit of a personal discretionary situation, and in my experience way too many folks are way too prepared for DOWN rather than being prepared for UP, even though sure it can be depressing when you buy BTC (Or even a lot of BTC and then the BTC price goes further down), yet it is still up to you to figure out how much of a difference it really makes if you end up regularly, ongoingly and persistently are buying BTC and then you run out of money to buy dips, so each week you have your allowance, yet the BTC price dips after you buy some BTC and so then you have to wait until the following week before you have more money to buy some more BTC. How much should it matter if you end up missing that dip because you ran out of money? I doubt that it matters very much, but hey each person is free to make his own determinations in regards to how much efforts he is going to put into buying BTC regularly versus how much efforts he is going to put into waiting around and/or strategizing for dips that may or may not end up happening.

It's very true that a lot of investors in the Bitcoin space focus more on preparing for potential downsides of Bitcoin rather than also considering preparing for potential upsides. This is mostly caused by multiple reasons, for some, it could be for psychological reasons, and to some it could be emotional reasons and to others, this could be due to experiential factors and sometimes it could even be a combination of the above listed factors.
Most investors are so focused on the fear of losses as well as the desire to protect their capital, which often leads to focusing more on mitigating potential downsides.

I am pretty sure that fear of loss is a stronger motivational and psychological factor for a lot of people than appreciation for various gains that so far have ended up playing out in bitcoin, and so largely the earliest years of bitcoin accumulation are likely the most difficult years to be able to figure out how much to invest into bitcoin, and hopefully both realizing and accepting that the investment could go to zero and that also the investment timeline should be considered to be a 4-10 year or longer timeline in order to actually qualify as investing rather than trading.. at least that seems to be the situation in bitcoin.

So, if newbie investors are able to get over their fear of loss by allocating their investment amounts with an understanding of both volatility and that profits are not guaranteed, and while at the same time recognizing that being more aggressive with the investment might play out better than being more whimpy, yet the more aggressive that we are with our investment, then the more that we likely are sacrificing when we allocate the money into bitcoin and send that money away for 4-10 years or longer.

Many folks feel much better once their bitcoin holdings are in profits, yet even folks who might be considerably in profits, even 50% or more or even 3x to 5x in profits, are not necessarily going to be immuned from their having feelings of loss if the value/price of their bitcoin holdings goes down 25%, 50% or 70% or more, which sometimes has ended up playing out at various points in bitcoin's history. .at several points, actually.

So yeah, the balance is likely going to be different for each person regarding how aggressive they feel that they can afford to be while still being able to tolerate the nearly inevitable volatility, and we don't know the direction of the volatility and we hope the volatility to be in the upwards direction, yet we know that sometimes it ends up going in the downward direction, so our preparing ourselves both financially and psychologically for these kinds of less than desirable BTC price movements seems to be a way to be able to survive while going through them and perhaps to even come away from a negative BTC price period with more BTC rather than less BTC... but yeah, sometimes not everyone is going to be in a strong enough financial position to be able to continue to buy during dips and during extensive dips to the extent that they are wanting to buy during dips as opposed to just continuing to buy regularly while they might still be building up the quantity of their BTC holdings.

Quote from: Tungbulu on Today at 07:17:59 PM

Again, the unpredictability and volatility that engulfs the Bitcoin market often have the ability to instill a cautious mindset on investors and this mostly leads to prioritization of risk management over potential gains. It's very important for investors to strike a balance between preparing for possible both up and downsides because of there's no balance, and an investor prepares more for the downsides, it has the potential of leading to missed opportunities, because rather than seizing opportunities to capture potential upsides, an investor will be more focused on the downsides so as to mitigate the risks of losses.

For sure, balance is correct, and the kinds of pressures that are felt are likely to be different when the BTC price is going down as compared with UP even though each direction has its own problems, especially for a person who is fairly early in his BTC accumulation journey.. and so the longer that anyone has been accumulating, then he might be able to get himself more into a kind of comfort zone in regards to how he might buy his BTC, and whether he is buying regularly in a DCA kind of manner or if he might be supplementing his buys with buying on the dip or lump sump buying, and the more BTC that he gets, then the more he might start to feel that he is transitioning from a BTC accumulation status and more into some kind of a BTC maintenance status, which likely would contribute towards his thinking about his bitcoin investment differently and also contribute towards his changing the way he is doing BTC buys, in the event that he is still buying BTC either from time to time or on a regular basis.

Quote from: Tungbulu on Today at 07:17:59 PM

Quote from: JayJuanGee on Today at 04:24:06 AM

Part of the reason that I recommend that newbies buy bitcoin every week for at least a whole cycle (and to employ their BTC buys manually) is that they are more likely to be able to catch various dips if he is buying BTC every week, and so those kinds of regular BTC buys should make him sufficiently happy about buying regularly and consistently, largely getting the dip, if such dip happens, and not worried about whether BTC prices might go into the $35k-$40k price range or not. If the BTC price goes into the $35k to 40k prices then he would be buying $100 per week (or whatever is his weekly amount) at those lower prices rather than current prices and rather than higher prices. Why should it matter very much if the guy buys at $35k to $40k or $55k-ish $65k-ish or $70k-ish? I would think that a guy (especially any newbies to bitcoin) would be preferring to be buying his BTC at lower prices rather than at higher prices, especially if he is in his earliest of stages of BTC accumulation...so yeah, maybe 10-ish years down the road he might be reassessing to figure out if it might be time to start to employ selling tactics and assuming that some time prior to 10 years he might have had accomplished most of his BTC accumulation targets. which surely need to be measured as we go rather than presuming where we might be 4-10 years or longer down the road.

That's a great approach! It is advisable for beginners to invest in Bitcoin on a regular basis, for instance on a weekly basis so as to avoid getting affected a lot by price swings. Consequently, they will be more likely to capture dips and take advantage of the lower prices which result in a lower average cost per unit in the long run.

Even if guys buy every week, they still might not capture the peak of the BTC price dips, yet if the BTC price lingers in similar kinds of prices they might be able to catch the dip. They also might structure their buys in a way in which they try to look for dips during each week, yet if the BTC price does not dip during the week, then they just execute their BTC buy right before the end of the week, so then they have a new authorized amount for the new week that would come available at the end of the week and into the new week. It surely might not make a whole lot of difference whether they catch the maximum amount of the dip or not, but catching some kind of a dip might make them feel better even if they amount of advantage might ONLY be a small amount of their overall BTC investment size.. especially the longer that they are accumulating bitcoin, then each subsequent weekly buy that is made is not going to make any BIG difference, yet maybe 2 to 3 times per year, such BTC investor might receive some kind of lump sum amount or a work bonus or some kind of a way in which he has extra funds that come available to buy BTC, and so for those extra lump sum amounts, he can decide whether to buy right away with part, spread some of it out for buying on dips and spread some of it out with the passage of time, perhaps over the next 10 weeks of their DCA buys (adding to their weekly DCA buys for the next 10 weeks, for example).

Quote from: Tungbulu on Today at 07:17:59 PM

You are quite correct that it must not matter much if they buy at $35k or $55k or $70k. Indeed, the buying at a lower price is always advantageous in most cases, especially when the initial accumulation is under way. The logic of it is to concentrate on the process rather than the price and avoid attempting to guess in what point in time buying is the right thing to do or that selling is the right thing to do.

If we agree that selling is not a very efficient or even likely to be successful method to accumulate more bitcoin, then we would likely agree that selling is either completely minimized or greatly limited while we are in the earliest stages of our BTC accumulation journey.. so then the more BTC that we accumulate, the more we might consider that selling could be a tactic to manage our bitcoin holdings and/or manage our risk, even if we still stick with the premise that selling is not a way to accumulate more BTC... so then at that point, we just might stick with accumulating through buying and if we do sell then we do sell and replace, and largely just keep buying until we reach a point that we believe that we have either accumulated enough BTC or more than enough BTC, which surely there is going to be a lot of variance in regards to how many BTC is enough or more than enough... some folks might consider getting to fuck you status or close to fuck you status as being the threshold in which they have enough BTC, and surely others might feel that they are not really completely done accumulating BTC or ready to transition into selling BTC until they make sure that they have various back up assets, so they have a certain amount of BTC, yet they feel that they might need some backup assets, whether those might be personal property (such as residential real estate), stocks, bonds, commodities, and/or cash/cash equivalents. Some folks might not want to diversify out so much or to diversify out much if any beyond bitcoin and cash... so the answers to these kinds of questions surely have a lot of variance and likely go way beyond the topic of this thread.. even if we might consider long term investing versus trading ideas to be potentially included within the scope of the contemplations to be done within a thread like this.

Quote from: Tungbulu on Today at 07:17:59 PM

I agree with the point you made that an investor should re-evaluate his portfolio and re-allocate it if necessary based on the investor’s accumulation goals. But for beginners it is better to stick to daily/weekly/monthly investments which will gradually improve the quality and will help to move towards achieving the goals

Surely the goals are going to change from time to time merely based on how things might be going in regards to the BTC accumulation. Let's take your forum registration date as an example and say that even if a guy got into bitcoin in July 2022, and let's say hypothetically such guy was in his mid 20s in July 2022. Let's say that he had an income of $24k per year. So monthly he has around $2k of income and around $1,400 in expenses. So he has around $600 per month of discretionary income, and he had already been investing/saving 10% of his income for several years, yet he felt that he was not really getting anywhere with his traditional investments/savings, and so maybe he had accumulated around $8k to $10k in savings/investments.. and so maybe he would have had already been close to establishing an emergency fund (which at minimum for him would be $4,200), and so then he might lump sum part of what he had already saved into bitcoin, or otherwise, he was considering that at minimum he would just keep all his funds where they are at and just start investing into bitcoin and buying $100 per week.

Surely his situation is a bit different whether he moves around some of his already saved funds in order to begin his investment into bitcoin by lump summing into bitcoin versus if he merely just DCAs his $100 per week into bitcoin since July 2022, yet even DCAing into bitcoin, at this time, he would have had invested around $11.5k in to bitcoin and he would have had accumulated right around 0.3812 BTC (currently priced at nearly $22k). So the guy seems to be improving his situation fairly decently with his already existing investment into bitcoin, even though there are a variety of ways that he could have had played his circumstances, yet how he ended up playing his situation may well affect how he goes forward, and perhaps might give him thoughts about the extent to which he might need to tweak his approach in one direction or another or if he just sticks with some kind of a similar plan that he had already been following.