Post
Topic
Board Speculation
Re: Buy the DIP, and HODL!
by
JayJuanGee
on 04/02/2025, 21:38:20 UTC
[edited out]
We are anticipating of buying Bitcoin on dip and hold for long term to maximize our profit but there is no minimum expected dip to buy Bitcoin, it all depend on what you see as your target that you wish to leverage the opportunity to accumulate more Bitcoin but the most important decision to make is to leverage any slited opportunity of dip and accumulate more Bitcoin as much as possible and hold it for long term to enhance the sustainability of your investment to bring good profit in the future.
The problem with most investors is procrastination of a certain level of dip to invest which may result to losing good investment opportunity. For instance the dip was about $94k or below yesterday but some investors were waiting for the price to dip more before they will invest but the price reversed and started appreciating from that point making them to loss good investment opportunity.
[/quote]

I doubt that it is very productive for any newbie investors to be getting very worked up about any dip, since there are several ways that any of us can figure out strategies to invest into bitcoin regularly, and sure if you save some  money on the side to buy bitcoin in the event of a dip, then good for you, but in the end, if you are buying BTC regularly, then the dips would merely supplement your already existent buys, and so they should not be any kind of BIG amount of money.

Let's say that you have an income of around $30k per year, and you have been investing fairly aggressively into bitcoin for the past year), about $100 per week (which would add up to around $5,200), and so maybe you also have a practice in which you save up $1k for buying on dips, and so every time the BTC price dips 5% you will invest an additional $100, so that means that your buying on dip amount will help to protect you for up to a 50% dip, but then you would run out of money after that.  You are not fucking around trying to figure out if the BTC price is going to dip or not or if the dip might be x, y or z amount.  You have your money already allocated, and you ONLY have $1k for that, and you are not going to blow your whole $1k trying to figure out the maximum of the dip.

Sure if you want your $1k to spread to lower amounts then maybe you have to choose a larger percentage.. such as 7% would allow you to go down 70% with the extra buys, and of course, you could structure your amounts in varying kinds of ways, but to me it seems that newbies need to stay focused on buying regularly rather than  trying to figure out if their is going to be a dip or not, and sure, if you want to set aside some money for dip buying, then there is nothing wrong with that, as long as you are not fucking around with it trying to figure out the extent of any dip or even holding back a lot of value that you are not willing to accept that the BTC price might not dip... so during bull market's maybe you let your buying on dips go down to 40% or 50% and maybe during bear markets you might be willing to allow it to go down 70%... but in the whole scheme of things you are buying BTC regularly and not trying to figure out dips.  

You do what you want, but any newbies should try to stay focused on accumulating bitcoin regularly, persistently, consistently and perhaps even aggressively and don't get too distracted by dips that may or may not end up happening... then perhaps once you have been in bitcoin for a whole cycle or two, then your BTC stack size might help to inform you the extent to which you might be in a position to change your strategies.

if we might have made it to a higher level of over accumulation of BTC, which truly some guys seem to have reached that higher level.. but some guys believe that they reached over accumulation of BTC status.
I don't think there is any level of bitcoin accumulation stage that can be considered as over accumulation. You can only accumulated as much as you wanted. Come on, only you don't have the entire bitcoin in circulation, so how can you over accumulate. Moreover accumulation of bitcoin is a deliberate effort. So how can you over accumulate it, I don't really believe there's any over accumulation stage. You only get to a point where you stop being aggressive.

Let's say that there is a guy in his late 30s and he has an income around $35k for the past 9 year when he first got into bitcoin.  He had been investing into bitcoin at about $200 per week which ends up  being quite aggressive and nearly 30% of his income, and so he invested $94k and currently has about 28.13 BTC.

When he first started in bitcoin, he thought that if he were to get to millionaire status, then he could pretty much draw out the amount of his income, which would be $40k per year, but after 2020, he realized that he probably needed $2 million rather than one million to feel that he had and adequate enough cushion.

In recent times he had been looking at various sustainable withdrawal formulas and he realizes that for about 18.26 BTC, he can currently start to withdraw at $6,666 per month which is similar to an $80k per year income.  So he figures that he has reached an over accumulation status since he has nearly 10 BTC more than he needs.  Is that not an over accumulation status?  or what would you call his status? He has about 50% more than he needs.  You think the guy needs to change his goals?  or you think the guy should say that he has enough when he actually has 50% more than enough based on his own standards and expectations?

Maximizing gains is a trading, rather than an investing concept.

Sure if we are able to buy on dips, then we would be able to buy more BTC with the same amount of fiat.... yet if we are holding back and waiting for dips, we might end up with fewer btc (satoshis) than what we would have had by just buying BTC persistently, consistently, regularly and perhaps aggressively.  

In other words, no problem taking advantage of dips if you happen to be in a position to take advantage of such dip, yet hopefully not too many BTC accumulators are causing too much whimpiness in their BTC accumulation strategy based on waiting for dips rather than buying BTC regularly.
Exactly JJG, when a person talk about maximizing profits, it's obvious the person just buying to resell when the price goes higher and not buying to obtain higher stashes of Bitcoin at lower price margin in order to fast track their accumulation journey.

Those looking out for dips only to maximize profits  are only concerned about short-term market fluctuations and may never be able to boast of good Bitcoin portfolio, if at all they have any. The profits they get from such trading practices are nothing compared to the profits that comes from the compounding effect of Bitcoin price appreciation over a longer period of time which still validates the fact that investors who accumulate Bitcoin persistently are going have more bitcoins and would be in more gains in the future than traders fucking around with Bitcoin price and only seeing the need to buy Bitcoin at dips in order to sell it back immediately there is an upward price correction.

Most of this gamblers are laced with regrets in the future when they calculate how much profits they've missed while gambling with Bitcoin instead of investing into it.
You are making a vary valid point but your presentation makes it appear that buying the dip is just for traders. Far be it, buying the dip is a very powerful accumulation practice that even long term holders take advantage of. Some people have buy orders at various price points below the present market price and when those orders are filled, that is exactly the same thing as buying the dip and because they bought at those lower prices does not mean they are eager to sell when the market start rising, it is all about maximizing profits or lets say getting more Bitcoin at discounted prices.

Sure there can be various strategic ways to buy BTC in order to try to buy BTC at lower prices, but it still seems to be problematic to be describing your activities as maximizing profits, as you keep on doing.. especially if you really are investing rather than trading then you would end up having a 4-10 year or longer time horizon.  

If you are saying that your time horizon is shorter, then you are most likely thinking as a trader rather than an investor, even if you might be trying to time a longer timeline that might be within the cycle or perhaps even longer.

I have been in the Bitcoin space for a while now so I understand that smart investors become more aggressive when there is a dip. That does not mean that they only buy during those times but they increase their purchase at those times when others are afraid and start panicking that price is crashing. They take advantage of those times and come out as the wise ones when the price finally start rising. You might be using other methods like the DCA to buy but trust me, if you learn to combine buying the dip and continuous DCA accumulation, you will realize how powerful such hybrid method can be.

There is no problem to trying to combine strategies like buying the dip and DCA, yet it seems presumptuous for you to be assuming that you are smarter (or other people who are buying the dip are smarter) because you might have had been able to time the dip or that persons who are engaging in buying the dip strategies are smarter than persons who are just doing some more pure form of DCA buying.

Quote
if we might have made it to a higher level of over accumulation of BTC, which truly some guys seem to have reached that higher level.. but some guys believe that they reached over accumulation of BTC status.
I don't think there is any level of bitcoin accumulation stage that can be considered as over accumulation. You can only accumulated as much as you wanted. Come on, only you don't have the entire bitcoin in circulation, so how can you over accumulate. Moreover accumulation of bitcoin is a deliberate effort. So how can you over accumulate it, I don't really believe there's any over accumulation stage. You only get to a point where you stop being aggressive.
I believe every bitcoin investors has the number of bitcoin that they will have in their possession that will make them feel that they have over accumulated more than enough Bitcoin. My over accumulation stage might be 50btc because I have a strong financial background and using DCA to accumulate it wouldn't be stressful for me and lump sum with dip buyings because I have good various source of incomes.

Someone with a lower discretionary income might see 2btc as over accumulation. However, from my little understanding of over accumulation is when you plan to buy 10btc and after accumulating 10btc, because you are still capable of buying more and you feel you should just continue buying and at the end, you were able to accumulate extra 5btc overtime making it a total of 15btc, that investor can say that he has over accumulated more than enough bitcoin.

It is true what you are saying, and some folks may sometimes mis-assess their own goals, and then mistakenly come to the conclusion that they have reached over accumulation status when they have not.  So sometimes there still may need to be some care in terms of understanding what is a status of over accumulation, yet you still have the idea correct that people can assess their goals and then assess that they have met their goals and/or that they have gone beyond meeting their goals.

If a person is investing into bitcoin and if they have a 4-10 year or longer investment timeline, they might not be too concerned about the BTC price.  I will concede that there are likely folks who get overly worked up about  the BTC price, and it might work  to their disadvantage to get worked up about BTC price if they are either a no coiner or they might consider themselves as not adequately prepared for UP prices.  The only way to prepare for up if you are not adequately prepared is to buy, and waiting does not prepare you for up, it ONLY prepares you for down.. which seems to ONLY be a good strategy for someone who has assessed that he already has enough bitcoin and/or preparation for up.
Yeah maybe for us as investors we don't really think about price all the time because investing for 4-10 years we think about accumulation all the time without looking at price, so that's what I'm doing now.
But I met someone and told a long story about their investment in bitcoin --- he was indeed worried about the price so he paid attention to every decline, like roughly every Dip price he was ready to make a purchase because that was his plan while investing in bitcoin, although this is a different way from what I have been doing so far in bitcoin.
Actually there is nothing wrong with this method, maybe he chose a different strategy in general, because we know DCA is common in every bitcoin investor.

I could not say the status of your friend, and surely a person who has spent several years accumulating bitcoin, they might transition away from DCAing and mostly be buying dips, and perhaps even buying less frequently than they had previously done, and yeah for each person, the threshold in which they will switch into some other kind of strategy besides DCA will be different.

Of course, there are some folks who might have gotten into bitcoin with less strict and disciplined versions of DCA, and so they might have always been buying less frequently and trying to buy on dips, and they might perceive their strategy had worked out for them, or it could be that they would have done way better if they had just followed a more strict and disciplined DCA approach.

By the way some old timer bitcoiners think that they were geniuses because they made a few lump sum purchases in the beginning of their investment journey, yet they would have had done way better if they had been investing through out the years instead of sitting around and waiting.

People can choose what they like, even dumb things, and merely because other people are doing it or they had success in what they did, that still does not necessarily mean that they followed a strategy that was even better for their own particular situation, even though frequently in bitcoin bull markets everyone (who bought bitcoin) looks like a genius, so sometimes we need a whole cycle or two to play out to figure out who were the ones who were able to hold onto their cornz.. and without selling too many too soon.