Post
Topic
Board Speculation
Re: Buy the DIP, and HODL!
by
Tonimez
on 28/04/2025, 23:28:51 UTC
Of course, anyone in their first whole cycle should not be too preoccupied by price in the first place, especially if they are just ongoingly accumulating bitcoin, unless maybe they had front-loaded their investment, which might cause them to be more concerned about such a thing, even though I consider that even someone who might have had lump sum invested in bitcoin in recent times, they likely should be supplementing their lump sum investment by DCA and/or buying on dips...
Exactly! And I believe about 60% of us on this thread are newbies or are likely in their first cycle(not including you as "us" Cheesy), whether they invested a lump sum earlier or are just accumulating gradually over time.

Those who invested a lump sum earlier would have accumulated more Bitcoin in the $50k-$60k range. Even with the correction to $73k, they should still be in profit. However, they might be thinking about the potential profits they had when  Bitcoin was above $100k+ (especially if they were heavily focused on the upward price chart). But to me, this correction is like having an opportunity to accumulate near their previous accumulation point, thus hoping for even greater ROI when Bitcoin reaches $100k again.

Hence, for the DCA investors, investing small amounts they can afford periodically, the recent price movements to $85k shouldn't represent a significant drop in their portfolio, at 73k maybe some little obvious drop as well compared to the profit made ( the capital should still be intact to some extent) , did remember we spent some time within 90k~100k,although it depends on their entry points and how frequently they've been accumulating. Some entries would have been made above $100k and would have also had some effect in their portfolio yet should have payed off already !at current 90k if they've continued DCAing in the DIP.

Also, I agree with supplementing lump sum investments with buying dips or DCA. Everyone is free to choose whichever strategy suits them best, especially if they are used to lump sums. However, I do think buying dips is a good approach, but that will depend on the portfolio status. It could be done similarly to DCA, but with opportunistic buys during price dips.
It's common for newbies to start with lump-sum and this is not out of place until you get carried away with that traders spirit which only allows them invest lump-sum because the cumulative gain in every little upward chart could get them something to hold on to. But that doesn't mean that everyone would become a trader. DCA approach even in the first cycle of bitcoin accumulation is perfectly acceptable since the individual still has a lot of personal convictions he has to work on in other to last in bitcoin investment.

Encouraging a newbie into periodic lump-sum and buying the dips only, in his first cycle could lure him into ending the cycle as trader prematurely after buying the Dip beyond their discretionary income and/or lump-sum frequenting. Experienced investors especially in their 2nd to 3rd cycle could manoeuvre their way in between bitcoin investment/trading and still have that personal discipline to continue as an investor unlike others could could permanently convert to Trading until they loose all they could lay their hands on. I strictly prefer DCA approach because it curtails things like;

Premature disbursement of bitcoin stash
Prolonged investment with little or no interest in selling to buy back
It solves the problem of greed which could push anyone into Trading.
It is less stressful and allows you attain to other pressing needs.
It is financially wiser.

It would be unfair to lure newbies into lump-sum investment and buying the dips when he has not developed his financial decision making and bitcoin accumulation principles.