Post
Topic
Board Speculation
Re: Buy the DIP, and HODL!
by
JayJuanGee
on 19/09/2024, 07:26:30 UTC
I think deep buying is not a long-term investment strategy, it is a form of short-term market manipulation, although it can be profitable if executed correctly, but it is very important to distinguish between short-term strategic action and well-thought. -Out investment plan. Deep buying can be profitable but it also has risks, you diversify your portfolio and you allocate the ability to lose it.
If you are a brand new investor there is no need to diversify, you can start out by investing and/or saving in bitcoin and cash, and as your investment portfolio grows then you might want to consider starting to diversify some time down the road, maybe after your biitcoin holdings might have reached a certain size or maybe a certain level of your expenses.. perhaps when it gets somewhere in the range of 1 year's worth of your expenses, yet it is not absolutely necessary to diversify beyond bitcoin and cash, at least in the beginning.
New investors are often more focused on making the mistake of making more profit in the short term, which can be a misconception when it comes to Bitcoin. At least he should keep a fair holding and that may be through regular accumulate and on a weekly or monthly basis. Newbie investors should be more careful to continuously enter the market so that he/she can reduce the undesired risk. An ideal way for them is to start depositing bitcoins in DCA method and this method can be continued for a long time if they have a disposable fund.

At a later stage, if he wants to increase the deposit and his earnings tend to increase only with the increase in Bitcoin deposit, he can do so. A common mistake that a new investor makes is to decide to invest all his money in Bitcoin and its tendency to skyrocket but he must keep a logical balance of real assets invested with valuable assets and make investment decisions with the amount he can afford to lose.

I don't know what you are referring to in regard to real and/or valuable assets and that you need to have such balance in order to invest into bitcoin which you do not.

The main thing for a starting investor is to make sure that he is not investing beyond his disposable income, and at the same time in bitcoin there is a need to invest 4-10 years or longer if you want to consider what you are going to be investing rather than trading, so any needs to balance would be to make sure that such new investor is not investing beyond his disposable income, meaning cash that he might need for 4-10 years or longer, so if there is any need to balance then the main need to balance would be to have back up cash on hand so that in case he has problems with his income or extra expenses, he would be able to cover those expenses with his extra cash rather than having to touch his bitcoin investment.

Surely once a bitcoin investment builds up there might be some need (or preferences) to diversify beyond just keeping value in bitcoin and cash, and some of that desire would be for the cash to be working more, such as putting value into property, equities, bonds, commodities, cash/cash equivalents and maybe into business assets (which may also be considered as a form of equities). Of course, when referring to diversification there should be no needs to want to get into shitcoins since they are largely already correlated with bitcoin and/or affinity scams upon bitcoin, yet if there is some irresistible urge to get exposure to shitcoins and/or to gamble with those, then there should be limitations of no more than 10% invested into such shitcoins.  If you are suggesting that real and/or valuable assets are more valuable because they are physical then you might also be diluted into considering gold as if it were some kind of a competitive asset merely because it is physical, and sure people collect art and other assets like that, so there could be some personal preferences to hold value into things like that, even though surely not necessary to hedge your bitcoin in any specific kind of a way beyond just having cash.. yet at the same time, the more that a person builds up his bitcoin investment, the more justifiable it becomes to consider some ways to diversify and/or hedge the bitcoin investment, especially since bitcoin is likely not going to really lose its violent and mostly inevitable volatility, and sometimes there can be value in terms of having value held in a variety of places just to have more spending options that might allow spending from the other assets in cases that spending from bitcoin might not be practical.. and in that sense sometimes there could be problems in terms of holding bitcoin all in one place or in limited number of places, especially if the BTC holdings become larger.