If a person has lump sum available, such as $1k to get started, and maybe he has an income in which he can buy $100 per week in bitcoin, then with the extra $1k, he does not need to invest through DCA, he could buy right away and/or he could buy at the dip (if the dip happens), so he has choices of the three different styles, and DCA is not always better if you already have a lump sum of cash come available to you. One of the reasons that so many people use DCA is because it is much easier to tailor some kind of a buying amount that goes along with their regular income coming in and their expenses, and so DCA also will allow an adjustment every week or whatever period that a person chooses to buy bitcoin under that kind of an approach/practice.
Yes, if a person has $1,000, he does not need to follow the DCA method, he can buy from the depths of the market if he wants. DCA will be a good method for those who will invest using the equivalent of $100 every week, but it will not be very effective for those who will buy from the depths.
A lump sum gives you three options to consider. 1) buy right away, 2) defer by time (DCA) and/or 3) defer by price (buying on dips that may or may not happen). We should not presume that the mere fact that a lump sum is available that the better strategy is to defer by price rather than buying right away, yet each person who had already authorized the amount for buying bitcoin has the ability to decide from each of those three categories.
By the way, I am not much of a fan of deferral and or waiting strategies unless they are already accompanied by ongoing buying strategies, especially for newer investors, such as guys who have only been investing into bitcoin for less than 4 years.
Of course, the longer that a person has been investing and the fact hat he might have had already bought around the current BTC price might give him possible rationale to save some money for dips and/or to supplement his strategy with a dip buying plan.
Guys who assume that dip buying is automatically the better strategy to accumulate bitcoin may well have not considered the matter very well, especially for newer investors who likely would be better off buying at any price and ongoingly, unless they might have had the ability to front load their investment by already having had bought a decent amount of BTC so that they are sufficiently and adequately prepared for up rather than overly preparing for down that may or may not end up happening.
If I have a large amount of money at one time, then I will definitely reflect that when the market falls, and it goes down a lot, I will invest with all my money.
Are you a brand new investor in bitcoin or have you already bought a lot of bitcoin?
Your forum registration shows that you have been registered since January 2023, and so did you already buy a lot of BTC in the last almost 3 years? If so then maybe buying dips might be helpful in your particular case (perhaps? perhaps?), otherwise, you might be already in a wrong mindset in regards to your BTC accumulation strategy and/or you might be employing bad strategies.
In the last nearly 3 years have you been buying bitcoin aggressively, or have you been waiting around to buy dips that did not end up happening? There have not been a lot of great dips in the past 3-ish years, and guys would have had likely been better off to have had been fairly aggressively accumulating for the past 3-ish years rather than fucking around waiting for dips that might not happen.
Currently, a brand new person might not be served very well be waiting for dips, and depending on the extent to which you have already been able to front load your bitcoin investment, you also might not be served too wll by trying to wait for dips that might not happen.
Let's say that you had a $50k per year income and you were to have had chosen to invest $500 per week into bitcoin, and you might well would have had invested around $70k since January 2023 and you might have had accumulated right around 1.6 BTC. Even in that kinds of a case, it could be questionable if you should stop investing and wait for dips that might not happen.
If I can buy deep, it can show profits in a very short time, but if I use DCA every week with my money, it will not give much profit. So if you have cash, it is better not to practice the DCA method in investing, but it is better to buy when there is instability in the market.
We can agree to disagree. If you have been following such a waiting and/or fucking around strategy in the past 3 years, you have likely ended up with whimpy, unserious and lack of aggressive bitcoin accumulating which has likely not helped your situation as a likely low coiner (and/or a person who is still wanting to accumulate bitcoin).
I personally think that if any of us are able to establish how much income we are going to need per year in order to maintain our lifestyle, then that is a good way of measuring if we have enough or more than enough BTC.... which will help us with our transition from accumulation stage to maintenance stage and then to sustainable withdrawal stage.
Perhaps to an extent I would also want to see a good number of us here figure out how much we want to keep accumulating in order to reach the over accumulation phase however, with a good amount one can and/or would be able to reach such goal before and/or after 3 cycles hence, perhaps most of us here excluding you and few others, have not been able to stay accumulating for 2 cycles judging from our registration dates yet in due time and if consistent enough sooner or later some of use would be reach that stage of sustainable withdrawal yet not me either as perhaps I would still have to keep accumulating.
Yep. Unless guys say differently, we might need to use their forum registration as a way to approximately guess when they might have had gotten involved in bitcoin.
You're right, but I noticed that some guys is already involved in bitcoin investment for like 4 to 5 years before joining this forum so is assume that this set of people must have started the accumulation process earlier before joining the forum,
Sure.. guys can clarify when they got involved.
There are also guys who register on the forum and then fuck around with trading and/or shitcoins for several years before they come to realize that they should have had been focusing their efforts on bitcoin first.
There is nothing wrong with assuming using the forum registration date, and if a guy clarifies his situation, then nothing wrong with that either.
Also, we don't necessarily get into specifics of any particular guy, yet at the same time, if guys are sometimes claiming to be posting from experience and not asking questions, then sometimes their experience and/or knowledge about whatever they are proclaiming might become relevant.
I frequently will use examples from my own timeline, yet I am not necessarily proclaiming specifics about myself and I also might describe various kinds of hypothetical bitcoiners in order to attmempt to talk about bitcoin as a topic and sometimes we do end up talking about the advantages and disadvantages of getting into bitcoin during certain time periods in the past.
and yeah we can easily find this set of people through thier contributions I have seen Alot of people making nice contributions but when you look at their registration date you will find out that they join this forum recently so if we are to guess from the registration date we may be wrong,
Sure. New guys might have all kinds of life and/or investment and/or cashflow management experiences, yet I am not going to presume that to be the case unless the guy might clarify those kinds of matters to the extent that they might be relevant to whatever post he is making.
just like a friend of mine who has been accumulating bitcoin for some years now yet he had no idea about this forum the guy is a old friend of mine he traveled very far from me then we misplaced contact he returned not quite long as he was going through his phone then I discovered that he has been accumulating bitcoin for some years now, so I was wondering where he got this knowledge I thought he's a member here but when I ask him he said no" that he haven't heard about this forum before that he build the knowledge from a friend.
Of course the forum is not the ONLY place to get bitcoin knowledge, and there are some folks who don't like the forums format. There are around 8 billion people on the planet, and perhaps a couple million registered accounts, but only a few thousand members here who are regularly active.. and even from the active ones, group is also small.
Surely there are other places to learn about bitcoin besides this forum, so yeah, guys might spend several years learning about and studying bitcoin before the register with the forum, but so what? What does that have to do with anything? Is there a problem presuming that they got started in bitcoin and or around their forum registration date, unless they feel some kind of a need to clarify otherwise?
I don't really know how far he has gone in the accumulation journey but I'm sure that he has stack enough bitcoin but not really sure if he has gotten to the status of overaccumulation.
It takes a long time to reach overaccumulation status, and sure there are some folks who also might be quite secretive about their finances, including not wanting to (or not ready and/or able to) participate in a forum like this one.
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In this way, many investors fail even after thinking of depositing for a long period. Therefore, if you want to hold on to success tightly, you can never touch the portfolio. And in this way, a person can enjoy the compound interest of his investment.
In bitcoin we tend to refer to compounding value rather than compound interest, since we likely are not leaving our bitcoin with custodians in order to get interest on them.. That is a different thing, and surely historically in bitcoin some institutions (or third party services) have provided those kinds of services to pay interest and/or yield and some of them also scammed people out of their bitcoin.
Every investor must set a target timeline to which his/her investment journey would last actively before thinking of a possible sell, with this in mind, such an investor creates or build up funds such as emergency and reserve funds through his discretionary income to enable such investment plan been achieved. An investor who fails to plan, already plans to fail. A set plan of targeted goal towards such an investment will serve as guide and road map to a successful Bitcoin accumulation process..
It is good for every investor to set a target timeline to which his/her investment journey should last, but in my opinion, it's not necessary for investors to set a target timeline of when their Bitcoin investment journey should last because it's likely to make some investors become over aggressive in accumulating Bitcoin so that they can meet up with their investment time, and at the end they will end up selling their Bitcoin investment too early. We should just be accumulating Bitcoin without setting a timeline so that we won't be under pressure to meet up with our timeline and end up getting out of the game.
Every investors will choose a strategy that they want because it's their money but the thing is that it's not every strategy that is a well thought out one for Bitcoin investment. Having a target timeline to sell is a choice but if you want to be very profitable in Bitcoin you'd hold for the very long term like 8 to 10 years or much more. No need to worry about a timeline to sell because it can be a distraction, you'd be flipping your calendar and doing countdown to sell time.
Personally I believe that the best strategy on when to be selling should be during retirement, also leaving some for responsible inheritors. With this in mind you'd just be buying and hodling without worrying about the perfect target timeline to sell. So far you have active discretionary funds you'd keep buying and when you get that lump sum you'd buy aggressively.It seems that if anyone considers themselves a life-long investor into bitcoin, then they would need to spend 1 to 2 or maybe even 3 cycles accumulating bitcoin. They might develop some kind of a formula to figure out if they have enough bitcoin or more than enough bitcoin. It can take a while to get through the accumulation stage.
Is it possible for an investor to invest for life? Although he considers himself a lifelong investor. His portfolio has grown more than he had expected, what is the goal of his investment? Even if he sells some of his investment, the rest will remain. Is it even possible for an investor to invest for life? Although he can get a lot of profit from his investment. And he can also survive inflation. But as he gets older, both his life and investment will be at risk. If he dies, will that part of his investment not go to waste? Or will he be able to tell anyone in his family about his investment and wallet?
Just because a person might approach bitcoin with a plan to be an investor for life, that does not necessarily mean that he is hanging onto his bitcoin for the whole time. In
one of my threads I talk about various bitcoin investment ideas and
another thread I talk about two forms of sustainable withdrawal (price based and time based). You can sustainable withdraw from your bitcoin holdings, especially once you have reached overaccumulation status.
Let's say that a person earns $50k per year, and for the past 9 years since mid-2016, he had invested $200 per week into bitcoin, and so over those 9 years he invested around $90k, and he accumulated nearly 19 BTC.
Maybe his plan was to start to live off of his bitcoin once it was able to sustain at least an $80k per year income, so he looks at my sustaiinable withdrawal tool and he sees that
starting right now, it would only take around 15.2302 BTC in order to sustain an $80k income per year, so he sees that he had right around 3.75 BTC extra, so he could withdraw $80k per year forever and likely increase his income by 7% each year forever and he even has an extra 3.75 BTC as
his cushion (of 19 BTC) so right now, he probably could sustain even a higher perpetual income of nearly $100k per year, so he may have waited to long to get started living off of his bitcoin and holding his bitcoin for the rest of his life.. And yeah, if he has some extra need to withdraw more bitcoin he can, and so he can figure out some reasonable ways to mostly hold his bitcoin for life, even if he is cashing out some of them from time to time, and they are likely growing in value at a rate that is faster than the rate that he is withdrawing from them.
~snip~
With same investment capital, you can invest gradually or aggressively, it's my thinking, that means I disagree with you.
Investment aggressively or not, it does not require to have extra (additional) source of income or investment capital. It's only matter that whether you want to DCA gradually or want to purchase bitcoins aggressively. Assuming with same investment capital as $1,000, you can gradually DCA in 10 months or your can purchase bitcoins more aggressively in 5 months or 3 months or 2 months.
Of course with DCA strategy, it's always better if you can have regular investment purchases and can have new investment capital with time rather than 100% rely on your investment capital at beginning and plan how to use it with time. Like you can start with $1,000 investment capital, plan to use it for purchasing bitcoins in 10 months, but it's better if with time, each month you can save part of your income and have like $50 or $100 more new investment capital. That will sum up your investment capital to bigger than $1,000 with months.
If a person has lump sum available, such as $1k to get started, and maybe he has an income in which he can buy $100 per week in bitcoin, then with the extra $1k, he does not need to invest through DCA, he could buy right away and/or he could buy at the dip (if the dip happens), so he has choices of the three different styles, and DCA is not always better if you already have a lump sum of cash come available to you. One of the reasons that so many people use DCA is because it is much easier to tailor some kind of a buying amount that goes along with their regular income coming in and their expenses, and so DCA also will allow an adjustment every week or whatever period that a person chooses to buy bitcoin under that kind of an approach/practice.
I think the aspect of discretionary funds discussed by you is very accurate. You do not need extra money to be aggressive in your investments but the extent depends on the level of risk that you can afford to undertake using the funds that you would not mind losing. You can either DCA or buy more aggressively using your existing discretionary capital depending upon your level of comfort and the market environment.
DCA is effective in the process of averaging against volatility and putting purchases in an ordinary income stream, however, when you have a lump sum, it may be worthwhile to buy on the downside or buy more actively. It all depends on whether you have an effective plan and with a clear plan, you should not touch on monies that are likely to impact on your necessities. Basically, both strategies can be applied using the same capital, it is primarily a matter of timing, risk-taking, and disciplineness when using discretionary funds.
I think that I was talking about being more aggressive in terms of how well organized you are rather than in terms of whether there is a bitcoin dip or not.
From my point of view, it is a bad strategy to change your aggressiveness based on whether or not there is a dip, especially for newbies (anyone in their first 4 years of accumulating bitcoin and who was not able to frontload their investment). If are in your first 4 years of accumulating bitcoin you should work on organizing yourself, and as you get better with your organization and your back up funds, then you can increase your level of aggressiveness in your bitcoin investmemnt approach.