Buy the DIP, and HODL!

[mirakal]

Buying the dip is always the best choice, I agree. I think that people who buy the dip only are the ones who make the most profit compared to the other type of investors. But they make that much profit in a long term of course. HODLers can lose and make lots of money on this road. But in the end, they will reach their goal as long as they are patient and don't panic-sell in this period.

It's not only the best choice but the right choice, for some people it's hard to spot an opportunity because instead of buying the dip, they dump due to panic. Well, they are the ones who are uneducated and has a little to no experience, they'll likely commit mistakes but hopefully they'll eventually learn and would still stay in the crypto space.

[1714594582]

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[JayJuanGee]

Buying the dip is always the best choice, I agree. I think that people who buy the dip only are the ones who make the most profit compared to the other type of investors.

You are presuming way too much goku19.

I am not against buying the dip, but it seems way more likely that Dollar Cost Averaging (DCA) buyers do better in terms of BTC accumulation than those who are trying to time the market... and DCA investing tends to be more practical than other forms of investing.. especially for newbies.. and surely applies way beyond newbie status, too.

Don't get me wrong.  If you have lump sums of value to invest into BTC, then there is likely no problem trying to strategize that lump sum to be employed into BTC accumulation on a dip, if you can figure out what is a dip and how much dip there is going to be.. which most of the time is very difficult to actually achieve in reality... especially if you are new to the asset class (and even if you are not).

There is plenty of evidence that the vast majority of normies hardly have any money to their names, so then at that point, they do not really have money to lump sum invest into BTC... so in that case, they ONLY have their regular cashflow and then the need to make a determination about whether to invest the excess of their cashflow into BTC as the cashflow comes in (a kind of DCAing) or to try to time the dip of the BTC price.. which could end up with the BTC price moving UP and against them and in that case they may well would have been better off just to buy regularly rather than waiting and then having the BTC price move up against them.

DCA is a very powerful strategy, so it is likely NOT too accurate to be generalizing and asserting that everyone is better off with buying on dips and ignoring the power of DCAing... when they are more likely better off by employing some form of DCA-focused strategy.

Another thing is that some people will end up learning more and more and more about bitcoin the longer that they are invested in bitcoin, and so part of the incentive should be to just get some stake in the game at any price, just to get started and have some incentive to learn based on having had already started to invest.   In that regard, once they start to invest, they might develop skills to become more attuned to be able to advantage from attempting to time BTC price bottoms.. but still I would conjecture that many folks are going to end up being way better off to have a certain quantity of their regular investment involved in regular DCAing (I like weekly) and perhaps just supplementing their BTC accumulation strategy with buying on dips and lump sum investing... perhaps even HODL.. if they run out of money to buy more on the dip when the BTC price ends up dipping more.

But they make that much profit in a long term of course. HODLers can lose and make lots of money on this road. But in the end, they will reach their goal as long as they are patient and don't panic-sell in this period.

It's good to establish at least 4-10 year initial investment timelines, and to orient yourself towards building your BTC portfolio for the longer term.. and of course, the longer that you are in BTC, then you will be able to reassess how your BTC investment is doing in light of what were your initial goals and reasons for getting into BTC in the first place.  Back to the sentiment that there tends to be more value to having a lot of time in the market (BTC in this case) rather than trying to time the market (BTC in this case). 

[ibuddy122505]

People listed their desire to buy at $34k. Does this mean they want to buy again at $38k? Does that make any sense? Do not misunderstand me. I would caution against buying in or FOMOing on the whole market right now. I personally have some Tether on hand. Honestly, I don't have a problem with it, because it's a fact. Volume is more important than price movement alone. Perhaps downward trend could continue? I hate to use that word. But let's be realistic.

[JayJuanGee]

People listed their desire to buy at $34k. Does this mean they want to buy again at $38k? Does that make any sense? Do not misunderstand me. I would caution against buying in or FOMOing on the whole market right now. I personally have some Tether on hand. Honestly, I don't have a problem with it, because it's a fact. Volume is more important than price movement alone. Perhaps downward trend could continue? I hate to use that word. But let's be realistic.

There is absolutely no one way of dealing with the matter, and sure some ways will end up making more money, but you do not know in advance, and part of any strategy is to make sure that you don't screw yourself by being too greedy, even if you might have made more money from a particular strategy but you might have also ended up losing more because you do not end up getting in if the BTC price moves against you.

So ultimately any balance that you end up reaching should be one that makes you largely comfortable both financially and psychologically, and attempts to account for the BTC price moving in either direction.. including against you when you believe that there is a certain high level of the price moving in one direction and it ends up moving in the opposite direction.

Let's say for example, you have around $1k per month extra coming into your coffers through cashflow, and you already know your situation well enough that you know that that extra $1k per month can be used to invest in bitcoin or any other investment that you want. 

So even though you have a $1k per month BTC budget, you were nervous about how much BTC to buy on the way up between August and November when the BTC price rose into the upper $30ks and went all the way up to nearly $70k, and then you got nervous about how much of a dip to have bought on the way down but at the same time you were building up cash because you were not buying BTC with it between August and November... so if you have accumulated around $5k, and you are not sure when to pull the trigger on buying BTC, I would suggest that you would have been better just spending most of that extra cashflow (your $1k per month BTC budget) through the whole time even if some BTC would have cost you more than others and more than the maximum dip prices, but at least you would have been more actively and ongoingly engaged in just continued buying of BTC.....

On the other hand, there are also strategies in which you do not buy BTC with the whole $1k per month, but instead you buy with half of that amount such as $500 per month or some other variation that is comfortable for you...; but you may still end up having some similar levels of dilemma regarding how much to buy on the various dips and some ongoing accumulation of cash that is not being invested into BTC because you are ongoingly waiting for dips that may or may not come and then you are not sure about how much of a dip, even regarding the other half of your budget.

For example, some guys would have bought BTC with their extra cash all the way down to $33k, other guys would have run out of money long before $33k.. so there are going to be a variety of approaches and varying success levels and some of the approaches might pay off better than others if you are considering both the desire to be in BTC, and the difficulties in figuring out how much money to be hanging onto in terms of buying on more dips if those dips will come.. how far do you structure your buys on the way down and are there cases in which you actually run out of money because you did not believe that the BTC price was going to dip as much as it did?

 I have little sympathy for guys who end up getting burned and increase their emotions because they are not buying a sufficient amount of BTC on a regular basis, even though I do understand that they may well structure some of their BTC buys down to prices in which the BTC price will never go but they should be o.k. with that eventuality, too... because keeping BTC buy orders set up on the way down does cost some money to dedicate cash for such.. and we are not always going to be ready, willing or able to manually execute our BTC buy orders upon various dips that might happen quickly or at times that are not convenient for us to get to our computer (or phone) to manually execute such buy orders.

[bounceback]

Buying the dip is always the best choice, I agree. I think that people who buy the dip only are the ones who make the most profit compared to the other type of investors. But they make that much profit in a long term of course. HODLers can lose and make lots of money on this road. But in the end, they will reach their goal as long as they are patient and don't panic-sell in this period.

If we use the Dip buying strategy, the basic thing that we need to avoid is panic, because if we look at this now usually some people who can't control their panic they will rush to sell it again when the price of the asset they buy experiences a deeper decline so that it will make them loss.

[Wind_FURY]

People listed their desire to buy at $34k. Does this mean they want to buy again at $38k? Does that make any sense?

We don’t know. You might not have the desire to buy at $38k, and it would not make sense to you, but for others it will. Michael Saylor bought Bitcoin priced at more than $50,000. Someone who wants to buy Opium from the dark market can buy Bitcoin anytime, at any price.

Do not misunderstand me. I would caution against buying in or FOMOing on the whole market right now. I personally have some Tether on hand. Honestly, I don't have a problem with it, because it's a fact. Volume is more important than price movement alone. Perhaps downward trend could continue? I hate to use that word. But let's be realistic.

Good on you, you have some stablecoins to use to buy the DIP if the crash continues.

[JayJuanGee]

People listed their desire to buy at $34k. Does this mean they want to buy again at $38k? Does that make any sense?

We don’t know. You might not have the desire to buy at $38k, and it would not make sense to you, but for others it will. Michael Saylor bought Bitcoin priced at more than $50,000. Someone who wants to buy Opium from the dark market can buy Bitcoin anytime, at any price.

Do not misunderstand me. I would caution against buying in or FOMOing on the whole market right now. I personally have some Tether on hand. Honestly, I don't have a problem with it, because it's a fact. Volume is more important than price movement alone. Perhaps downward trend could continue? I hate to use that word. But let's be realistic.

Good on you, you have some stablecoins to use to buy the DIP if the crash continues.

Do you have anything more concrete Wind_FURY?

Are you saying to buy or not?

Did you already buy during this dip?

Are you waiting for more dip?  

Remember this dip has been going on since about mid November.. we had one dip down in early December to $42k-ish and then a rebound to $52k and then this second dip down to $32,951... What's the strategy?  Just wing it?

My strategy, in case you don't know, would have been to have a DCA buying strategy throughout the whole period that is supplemented by buying on dips that are staggered down as far as you believe that the price might go.. without attempting to be too fancy about it... and if you end up running out of money then at least you continue with the DCA or otherwise just HODL through it.

Do you got something better than that?  or do you just want to say after the fact what "you should have done?"  DCA remains amongst the best of strategies for sure.. of course, it is not necessarily a bad idea to supplement your DCA'ing strategy with buying on dips so long as you do not get too smart for your own good by trying to time a dip that does not end up happening and then you end up being regretful while at the same time inadequately and insufficiently prepared for the UP when it does end up happening... and over and over again, we have seen in bitcoinlandia some periods in which king daddy goes into punishment mode and you should have been in during that time.. rather than fucking around with small insignificant values and waiting for a further 5% dip that does not end up happening.

[Wind_FURY]

My fellow plebs, Bitcoin is “dead again”, and when Bitcoin is pronounced “dead again” by a low-IQ nocoiner, then in the context of this topic, you know what to do. You either buy the current DIP, then DCA, OR you start saving all your extra fiat and wait for a DIP.

https://99bitcoins.com/bitcoin-obituaries/

[JayJuanGee]

My fellow plebs, Bitcoin is “dead again”, and when Bitcoin is pronounced “dead again” by a low-IQ nocoiner, then in the context of this topic, you know what to do. You either buy the current DIP, then DCA, OR you start saving all your extra fiat and wait for a DIP.

https://99bitcoins.com/bitcoin-obituaries/

Oh?

So DCA does have a potential role in BTC portfolio management (BTC accumulation).

That's good.

By the way, I will mention that there is not really any objective right thing to do - except perhaps for guys/gals to attempt to assess their own situation as best as they can and attempt to calculate what would be best based on the totality of circumstances.

I have given some examples, but in this context, let me give three more examples in this context.

1)  if you have $500 per month coming in for BTC purchases, and you have not bought since September (in that case you have built up $2,500 in reserves), then you may well have a different set of considerations as someone who 2) may have decided to DCA half of the cashflow amount.. and therefore ONY has $1,250 in reserves.. or 3) someone who had DCA'd 1/2 and also bought at various dip points, and such person might not have as much in reserves (maybe $500 or $250?)...

And of course, there are various other variations of where anyone could be in terms of how much cashflow they have, how much cash in reserves they have and how much DCAing versus buying of dips that s/he has already done (and at what price points?) in these circumstances.

[TheEconomists]

One this people don't realize is that any time any day you see people Bitcoin is dead! Bitcoin is dead ! then it means that Bitcoin price at the bottom is over and is a sign that an upward trend will start soon. Is time to buy deep or regret later because it will be too late for you to cry when the head of cut off.

[Wind_FURY]

One this people don't realize is that any time any day you see people Bitcoin is dead! Bitcoin is dead ! then it means that Bitcoin price at the bottom is over and is a sign that an upward trend will start soon. Is time to buy deep or regret later because it will be too late for you to cry when the head of cut off.

Plus if plebs with limited, and with very little capital should buy, don’t buy blindly at any price, then DCA it like you have a capital of nine figures like you were Warren Buffett. That’s stupid. Get the most out of your limited capital by trying to buy DIPs to get a much Bitcoins as you can for your money. 1BTC = 1BTC, and plebs like us would have less BTC if we used our limited capital by blindly buying anywhere.

[JayJuanGee]

One this people don't realize is that any time any day you see people Bitcoin is dead! Bitcoin is dead ! then it means that Bitcoin price at the bottom is over and is a sign that an upward trend will start soon. Is time to buy deep or regret later because it will be too late for you to cry when the head of cut off.

Plus if plebs with limited, and with very little capital should buy, don’t buy blindly at any price, then DCA it like you have a capital of nine figures like you were Warren Buffett. That’s stupid. Get the most out of your limited capital by trying to buy DIPs to get a much Bitcoins as you can for your money. 1BTC = 1BTC, and plebs like us would have less BTC if we used our limited capital by blindly buying anywhere.

I doubt that you would have less BTC by DCAing... you are presuming too much and not really working with the reality of actual plebs but trying to presume that plebs have abilities to figure out price direction and momentum and when the dip has maxed out, etc etc.

[onecall123]

Is it time to take profits?

Not sure what other traders think, but I have a different take on it. My style of investing is more of a buy-and-hold one. Not too concerned with profits at the moment. As for me, I intend to keep them in a particular wallet and will not take any out for some time.

Is it easy for holders to take profits and buy back again during the crazy madness? It's impossible for me to time it properly. It keeps going up no matter what I do. I always buy when it drops lol. While diamond hands motivate people to leave 9-5 jobs, traders simply replace it with staring at charts all day.

[JayJuanGee]

Is it time to take profits?

Not sure what other traders think, but I have a different take on it. My style of investing is more of a buy-and-hold one. Not too concerned with profits at the moment. As for me, I intend to keep them in a particular wallet and will not take any out for some time.

Is it easy for holders to take profits and buy back again during the crazy madness? It's impossible for me to time it properly. It keeps going up no matter what I do. I always buy when it drops lol. While diamond hands motivate people to leave 9-5 jobs, traders simply replace it with staring at charts all day.

You do not even seem to be trying to understand the topic of the thread...and I suspect that you know the topic of the thread, and you just state the opposite just to stir shit and to get a reaction.

The fact of the matter is that this thread is not about trading.. you purposeful misleading diptwat.

Even looking at the title should help you to figure that out.

[Wind_FURY]

Is it time to take profits?

Would you want to take profits?

Not sure what other traders think, but I have a different take on it. My style of investing is more of a buy-and-hold one. Not too concerned with profits at the moment. As for me, I intend to keep them in a particular wallet and will not take any out for some time.

Be concerned more in how to efficiently use your capital. You can do this through buying DIPs, not by buying blindly. Attitude should always be 1 Bitcoin = 1 Bitcoin, not “how much my investment will be in fiat”.

Is it easy for holders to take profits and buy back again during the crazy madness? It's impossible for me to time it properly. It keeps going up no matter what I do. I always buy when it drops lol. While diamond hands motivate people to leave 9-5 jobs, traders simply replace it with staring at charts all day.

Spend less than your monthly salary, budget your money, pay your expenses, then HODL the rest in Bitcoin.

[bitzizzix]

Investing in an entity when the price is low and is expected to surge in the future is considered a smart investment strategy, and will yield large returns in the future.
If you're thinking about investing in bitcoin, there really isn't a great time. However, if your strategy is for long term profit, buying every time there is a decline and holding it until you get a satisfactory profit is the best choice, because in my opinion bitcoin is for HODL and there is no set time limit until you really get bored and give up, and sell it when the bitcoin price is really really high.

[JayJuanGee]

I always see this word being posted in twitter to "buy the dip" but for newbies in trading, its going to be hard for them to determine if its "the dip" or the price will continue to drop drastically. I remember wen I was new in trading, I kept of buying when the price started to go down thinking that the price will recover until I run out of funds for trading. Price did not recover for a month.

Sometimes the price might not recover for several years, so part of the rationale of buying on the dip would be that you would be in a better position for the price to recover above your purchase price when buying on the dip.

If you are buying on the dip, hopefully, you would have sufficient confidence in the underlying asset that ultimately it is going to recover.. even if it may take 3-4 years or more to get into profits.

Bitcoin does seem to be a pretty strong asymmetric bet to the upside, but nothing is guaranteed, and even the short term you may well be running more risks that you will not be in profits.. so surely you have to figure out for yourself if you have confidence in the underlying asset and you also need to figure out a meaningful and reasonable budget for your investment into bitcoin.  Of course, it has been shown that more aggressive investment strategies have paid off quite well, but you should not be striving to be so aggressive that you cannot financially and psychologically withstand dips (even long ones) in the price.

[Wind_FURY]

I always see this word being posted in twitter to "buy the dip" but for newbies in trading, its going to be hard for them to determine if its "the dip" or the price will continue to drop drastically. I remember wen I was new in trading, I kept of buying when the price started to go down thinking that the price will recover until I run out of funds for trading. Price did not recover for a month.

It will be hard, but when in doubt, zoom out. You should always try to buy the DIP to receive the most Bitcoins for your Dollar at any given hour. Bitcoin is a low time preference investment. I believe there are many people who haven’t realized the true nature of Bitcoin in international politics/geo-politics. Or Bitcoin as a path to have an advantage, especially for countries that are censored from using SWIFT.

Wait for everyone to understand, wait for the market to price it in. Buy the DIP, and HODL.

[JayJuanGee]

You have no other option. I joke about the whalecumulators, but what else can we plebs do? Buy the dip, and HODL! You do not want to end up empty handed on the next cycle, https://twitter.com/misir_mahmudov/status/1118243131584065537

Always zoom out if in doubt, https://bitcoin.zorinaq.com/price/

This strategy doesn't apply for all traders, what if a certain trader doesn't have enough capital? Do you think he can buy every dips or what they called averaging down?  Of course not. Even if it is a strategy it doesn't mean that you can guarantee yourself to earn from it just because you buy at dip and hold. We should consider the time after all, are we going to hold it for the rest of our lives or are we going to sell it in short period of time.

Have you even read any posts in the thread?  The focus is on buying and holding.

Surely in recent times, if you are long term investing then you would consider that you would have at least a 4 year timeline, but maybe 10 years or longer, especially if you do not have very much money and you are only able to invest small amounts of money.  If you are ONLY able to invest small amounts of money, then you do whatever you can.. whether that is $10 per week or $100 per week or some other amount.

Of course, there can be some individual strategizing whether you invest every week or if you let your money accumulate to attempt to maximize your dipping of the BTC price buy points. 

Sometimes there are going to be risks if you do not buy regularly and you let your money build up (for example if you ONLY have $10 or $100 per week to buy) , and if you do not buy regularly and you wait for a dip that does not end up happening.

In the end, everyone has to attempt to tailor his/her strategy as best to his her own circumstances, including considering his/her cash flow, other investments, timeline, view of bitcoin as compared with other investments, risk tolerance and time, skills and abilities to plan, strategize, study and tweak along the way which may well include reallocating from time to time or even employing more advanced techniques such as trading, leveraging, margin trading, or use of various financial instruments - even though employment of more basic techniques/strategies would be better to get under control before advancing to more complicated strategies.. in other words, get your financial shit in order before attempting to gamble with any portion of the way that you accumulate, manage and hold your bitcoin.

[Wind_FURY]

You have no other option. I joke about the whalecumulators, but what else can we plebs do? Buy the dip, and HODL! You do not want to end up empty handed on the next cycle, https://twitter.com/misir_mahmudov/status/1118243131584065537

Always zoom out if in doubt, https://bitcoin.zorinaq.com/price/

This strategy doesn't apply for all traders, what if a certain trader doesn't have enough capital? Do you think he can buy every dips or what they called averaging down?  Of course not.

You can't buy all the DIPs, and you will have times that your portfolio will be in a loss, but zoom out, Bitcoin is still in a path to price discovery of its true value. The same concerns were said before during 2018, and 2019 with many "traders" missing a golden opportunity to buy Bitcoin under $5,000.

Even if it is a strategy it doesn't mean that you can guarantee yourself to earn from it just because you buy at dip and hold. We should consider the time after all, are we going to hold it for the rest of our lives or are we going to sell it in short period of time.

Who said there will be guarantees? Many things in life have no guarantees, BUT I can guarantee that buying the DIP, and HODL will give you a higher probability of profit than plebs leveraged day-trading.