Post
Topic
Board Speculation
Re: Buy the DIP, and HODL!
by
SOKO-DEKE
on 05/05/2025, 17:56:02 UTC

Investing in bear market is good but could also expose someone to using up their back up funds or emergency funds. It is good to go a little further on bear market but it is not advisable to go extreme during the Bear market in order not to see off your bitcoin due to emergency situation. Get very used to not investing beyond your discretionary income no matter the market behaviour. Bear market will always come any other time. So ensure you don't sell off soon because of Bear market.

Even during the bear market, the best strategy to accumulate Bitcoin is using the DCA (Dollar-Cost Averaging) method. This is because, even in a bear market, the price of Bitcoin continues to increase and decrease. If someone decides to buy Bitcoin all at once because they see the price as low, it is and go futher to usees the money he did not supposed to use to buy bitcoin like it emergency funds is still possible for Bitcoin to drop even lower than the price at which they bought it. This could lead to panic, causing the person to sell and then try to wait for another dip.However, by using the DCA method buying weekly or monthly the investor accumulates Bitcoin at different price points. Anyone trying to "outsmart" the market might end up selling their Bitcoin prematurely.

It is also unwise to use emergency funds to buy Bitcoin simply because the price appears to have dipped. You can never be certain where the dip will stop before the price starts increasing again. Emergency funds should be reserved for actual emergencies since you never know when one might arise. If someone uses their emergency funds to buy Bitcoin and an unexpected problem occurs the following week especially if the price of Bitcoin drops further they could find themselves in financial trouble.