Front loading is a concept that can be done with DCA, lump sum and/or buying on the dip.  Front loading is not just done for buying on the dip, and generally it is problematic to be emphasizing buying the dip, even though surely some people might hold some lump sum amount and decide to buy the dip with large sums of such lump sum amount.


I would think that the first things that we try to work out is figuring out how much discretionary funds that we have on a regular basis, and if we have income that comes in regularly, and then maybe we have some other funds that we might be able to use as lump sum, then we can figure out how we plan to use them, and likely we would consider all three options, even though sometimes the ONLY thing that makes sense for newbies is DCA since maybe they either do not have a lot of discretionary income or they have not figured out their budget exactly and how BTC investing and/or strengthening their cashflow management systems/practices fits into their individual factors.


I would not consider a 10% dip to be massive, and surely there is not way of knowing if the dip might be more from here or not.  It is not unusual for various dips to take place with bitcoin, even though perhaps every time dips happen folks try to proclaim that this time is different blah blah blah.. and maybe it is different, and maybe not.  It is not a good practice to get overly presumptive about the short-term price, even if everyone (or nearly everyone) is expecting BTC price to reach $180k or larger.  I certainly expect that there are good odds for BTC reaching $180k or larger in the coming 1-10 months, yet still I understand that there is also a possibility that the top for this cycle is already in at $124.5k... and yeah, it is possible to have both scenarios in our head at the same time and to be financially and psychologically prepared for either scenario or some other variation.


You are a newbie trying to learn as fast as you can?   Have you started buying bitcoin yet?

It looks like you have been registered on the forum for 4-ish months.  Did you start looking into bitcoin prior to your forum registration?

You seem to have the right idea that if we consider our income and then our basic expenses (which sometimes can vary or be a bit unclear if they are basic or not), then once we subtract our basic expenses from our income, we have our discretionary income (or our discretionary funds).  We can use those discretionary funds to consume more items (goods/services) and/or to invest into something like bitcoin and/or to stock away into our back up funds (emergency funds and/or reserves).  So yeah investing is a kind of expense we choose to make with part of our discretionary income, whether we invest aggressively or whimpily or some place in between.

When we invest we tend to have three possible ways to buy/accumulate bitcoin 1) buy right away or lump sum, 2) DCA and/or 3) buy on dips.  Of course, if we assess our regular income and expenses, we will likely see that our discretionary income might vary from month to month or week to week, and with DCA we could adjust them every week in accordance with how much discretionary income we have or we could set an amount every week like $100 per week, and if we set an strict amount, then surely the weekly fluctuation in our discretionary income would need to not go so low as to cause our $100 per week to go beyond our discretionary income.  There are a variety of ways to deal with making adjustments to the amount of BTC that we buy each week, yet surely a lot of people might consider it to be easier to just have a set amount, even though having a set amount might be too aggressive on some weeks and too whimpy on other weeks.

I think that Popkon6 likely misspoke when he was suggesting that employing DCA allows for the reduction of expenses, even though the use of DCA likely allows us to adjust our weekly buy amounts and using DCA might incentivize us to purposefully reduce our expenses in order that we would have more money left over to employ with our weekly DCA (or whatever period that we might be DCA buying our BTC).  Even though DCA is not our only tool, it does tend to provide quite a bit of flexibility in how we might flexibly allocate our weekly amounts that we are investing into bitcoin, and surely if we are fairly new to bitcoin we might be simultaneously trying to balance our investment into bitcoin and the strengthening of our cashflow management systems/practices, which surely involves both building up our back up funds but also paying more attention to whether we consider each and every of our expenses to be as important as our building up our bitcoin stack and also building up our back up funds.

At the same time, if we are paying more attention to both our income and our expenses, then we likely are going to be able to identify areas in which we might be able to increase our income and/or cut our expenses, yet at the same time, we might want to make sure that we might still have some flexibility in our budget and even to sometimes be able to spend in areas that might either help us to build relationship or even to show that we are paying our fair share, even if we might notice places that we might be able to cut our expenses (such as going out for drinks with buddies), yet it still might be better to spend that money on the place that we could cut rathe than to cut and then to end up with worse social relations... These are not easy and/or straight-forward judgement calls, even though each of us need to make those kinds of decisions and/or priorities for ourselves on a weekly and/or monthly basis.


I largely agree with you point of trying to appreciate the bright side of dips, especially for guys who are still accumulating bitcoin. 

So far, every 4 year cycle the BTC price ended up hitting the 200-WMA, yet that still does not guarantee that it will happen. .and so far, the BTC price ends up hitting the 200-WMA about 6 months to a year after the peak of the cycle.. so it can take a bit of time to get down to that point....

Another thing is that so far in bitcoin's history the 200-WMA has tended to continue to go up at a pace that has never been less than 19% per year, and that is not guaranteed either.

Another thing is that during bull season (or non bear season), the BTC price tends to stay at least 25% or higher above the 200-WMA, and that is not guaranteed to continue either, even though it has been bitcoin's history so far.  Right now the BTC price is about 117% higher than the 200-WMA.  You can look at bitcoin's price as compared to the 200-WMA for any date in bitcoin's history on this website.


You make several good points MithiRM, yet you still come off as being a bit of a gratuitous hater, even though technically you are correct on several of your points. 

At the same time, when people invest, they may well start to learn that they are wasting a lot of money on various trinkets and other stuff that only give them short term thrills, yet there are a lot of other ways to accomplish similar kinds of short-term thrills without necessarily buying worthless gadgets or the various other ways that people might be spending their money. 

There can be a lot of self-satisfaction in disciplining ourselves, setting up frameworks for delayed gratification, and surely with something like bitcoin we might see that if we might have ONLY been able to afford 1 worthless gadget per month from our regular income, yet when we put it into bitcoin, there surely might be some temporary draw downs in the BTC price, yet after 4-6 years, we might see that we are able to buy 10s of times more of the same gadgets which adds up to 100s of the gadgets that we would not have ever could have been able to imagine being  able to afford to buy... merely based on our exercising persistent discipline, looking into the various ways that we are spending money versus investing and organizing our thoughts and our finances with more purposefulness.