Post
Topic
Board Speculation
Merits 1 from 1 user
Re: Buy the DIP, and HODL!
by
Tonimez
on 02/05/2025, 05:16:05 UTC
⭐ Merited by JayJuanGee (1)
Well dca 100 a week.
5200 for a year.

Do it for 5 years.
26000 in.

As for buy the dip
15x at 84k
15x at 74k
15x at 64k
The 4500 buy the dip may never happen.

But the 100 a week dca hits.
Do both.

X every week for 5 years
15x ladder down buy the dip.

I would just like to reiterate that1) I believe buying on dip tends to be a bad practice for newbies and inferior to DCA.

2) Even if anyone were to agree to putting some kind of buying on dip into play, 15x your weekly DCA is outrageously high amounts of value to be holding back for anyone who considers himself to still be in their accumulation stage...and spacing them out $10k increments is outrageous too.  It is like beign scared to invest in bitcoin and overly preparing for downs that may well not end up happening.

3) If I were to agree to any recommendation that a newbie strategize buying on dips, then I would recommend no more than 25% held back in the DCA amounts and perhaps letting it build up for some time.  Of course, there are some folks who come to bitcoin with lump sum amounts, so those folks would have more flexibility to the extent that they might consider any lump sum amount to be either bought right away or defered based on time (DCA) and/or deferred based on dips (that might not happen).

Many times DCA works better for the first whole cycle that most normies are buying into bitcoin, yet at the same time, sure there are some exceptions in the cases where a person might have some lump sum amounts that he is starting out with and having to consier how to allocate his buys with that lump sum amount in the three categories as I mentioned above.
@Jayjuangee, you have vividly explained this very correctly. Sometimes the way emphasis is laid on buying the Dip is misleading. Come to think about a zealous investor who has planned out his Emergency funds and back up funds, based on his basic weekly or monthly income which probably, he has a 5-10 years Hodl plan also. Why would he, out of the blues, just because of a slight market slide, invest higher than his supposed discretionary income percentage which is already meant for this purpose. He goes on to use his back up funds or emergency funds in order to buy a dip which he could also meet in his next DCA buy.

This exposes investors to greed and impatience which is detrimental to the bitcoin wallet. A strict DCA approach has its way of sometimes falling on Bitcoin dips too. Just don't get carried away by the profit you're chasing, also think about your bitcoin security and longevity. Every DCA accumulation strategy is good, but DCA approach is more healthy for any investor who wants to Hodl for long unlike Traders who focus on dips to make quick buys and sells within a short term.