Post
Topic
Board Speculation
Merits 3 from 2 users
Re: Buy the DIP, and HODL!
by
Mayor of ogba
on 03/12/2024, 03:46:44 UTC
⭐ Merited by Cryptoprincess101 (2) ,JayJuanGee (1)
Buying the dip aggressively is not bad, but you have to make sure that if you are doing that, it will not stop you from sorting out your daily expenses, which might get you off the game, partially or permanently. Buying the dip aggressively is best done when you win a lottery or when you receive a bonus payment at the place of your work, and you use the money to buy the dip aggressively since the money is not allocated to solve your daily expenses.
You must not win a lottery before you can buy aggressively at the dip, because people that buys at the dip will prepare themselves for it. This is where reserve funds comes in play. When you are DCAing, it's good that you set up a reserve funds to buy at the dip, so that it wouldn't affect you financially, but use the opportunity of the dip to add more bitcoin to your portfolio. When it's bad to buy at the dip is when the investor is a new investor, and he is not DCAing but choose to wait for the dip, when no one knows if the dip will come or not.

However, if you are not prepared for the dip, and you decided to DCA aggressively because you want to buy more bitcoin with funds that is not your discretionary income, you will end up selling your bitcoin when your needs arises putting you at loss, if the price goes dipper and stay for a while. It's good we plan very well, so that we don't be a hindrance to the growth of out bitcoin portfolio through our own actions.
I have been accumulating bitcoin for a while now, and I know that reserve funds can be used to buy the dip anytime it happens, but there can be a case where a new investor in bitcoin investment will not have reserve funds immediately when he starts his bitcoin investment because he will be building his emergency funds, reserve funds, and floats along his accumulation journey, which will not be a wise move for him to start buying the dip aggressively with his reserve funds since he hasn't built it up to 3 months. In this case, the only way an investor can accumulate bitcoin aggressively without getting off the game, partially or permanently, is when he uses the money that is not meant for his daily expenses, which can come from a lottery win or when he gets a bonus or extra payment from his place of work.