Buy the DIP, and HODL!

[bitzizzix]

That's just part of the method we choose based on our own abilities and preferences. Once someone becomes very comfortable with a method, like DCA, they can continue using it without switching to a new one as long as they can afford to buy Bitcoin more regularly, following their own plan. I also like the DCA method, although I don't condemn other methods as long as they're comfortable for anyone. However, when it comes to Bitcoin accumulation and long-term goals, DCA can provide greater comfort for anyone who uses it.

The best method for depositing Bitcoin is the DCA method and no one can deny this fact. For those who decide to invest in Bitcoin for long-term purposes, DCA is definitely the best decision and it will provide them with maximum benefits. Buying Bitcoin regularly means depositing Bitcoin step by step without being afraid of market fluctuations. This continuity increases your holdings at an average price and provides good opportunities for success in the long run. Therefore, DCA is definitely the right decision if you want to invest for long-term purposes.

Sure, the best strategy for investing in Bitcoin is using the DCA method. You will invest with less stress, even when the price changes, because using the DCA method doesn’t care whether the price is dips or the price is higher. You will continue to buy with the amount you set to accumulate Bitcoin.

The DCA method is suitable for a long-term investment because you will not see the value of the little you are investing right now until the next 4 to 10 years or more, possibly if the Bitcoin price increases higher than this, since we are not guaranteed for the future profits, but we continue to invest because nothing has done better than Bitcoin over the years.

That is the best thing about DCA, it helps you stay focused, and instead of trying to time the market, you build your investment slowly with patience. In the long term, this easy method has proved to be one of the easiest ways for common people to grow their Bitcoin holdings.

Using the DCA method, in my opinion, and based on my experience so far, there's no pressure or stress at all if we know the potential future or long-term profits, because these profits are what make someone who uses the DCA method successful. Therefore, someone who uses DCA correctly and consistently won't worry about market conditions or other bad news, or even pay attention to them at all. All they do is buy at predetermined times consistently in the same amount with patience and confidence that no matter what happens, Bitcoin's price will eventually rise again and continue to rise, generating significant profits in the future.
The ease of using the DCA method must be accompanied by confidence, because this confidence will ensure everything runs smoothly without being affected by anything, because we are confident that no matter what happens, it will not prevent Bitcoin from continuing to rise in the long term.

[Bitcoin Smith]

~
The ease of using the DCA method must be accompanied by confidence, because this confidence will ensure everything runs smoothly without being affected by anything, because we are confident that no matter what happens, it will not prevent Bitcoin from continuing to rise in the long term.

Every investment comes with risk and the same applies for bitcoin too and you can never say I am 100% sure that bitcoin will be higher in the next 5 years from the current price and it will likely to be but my point is there's always risk factor in it which creates pressure for retail investors.

To minimize this risk they also should follow diversification, if they can invest $250 a month and no more than that then I recommend that $100 for bitcoin and the remaining for other things (gold, stocks) that they consider potential too grow which reduces the risk and able to have a peace of mind even when the price of bitcoin is crashing because I can't imagine all my savings is in bitcoin and it is crashing 30% in a day will surely creates a panic situation that might force some of them to sell that will result in a capital loss and wasting few years of investing.

[New Judgement]

It doesn't matter the how you chose to spend the money on bitcoin accumulation. Bitcoin investment methods made provisions for all of that, it depends on how you the investor want to go about it. If you want to go with the lump sum method it's fine, if you want to go with DCA it's also fine. It's just like someone who use the elevator and someone who uses the staircase. But in the end they are going to meet at same spot. The choice of what method to use is your own and nobody can make that decision for you. What matters is your ability to hold on to your bitcoin on the long term.

Thanks for your reply. But I think How you invest has an affect on your returns. I'll share a scenario with you and show how Lump sum and DCA differ.

CASE SETUP
Amount to invest : $1200
Period: 12 months
Investment asset

Lump sum

Investor A puts $1200 in a stock at once in Month 1

Stock price at month 1 : $12

Shares bought = 1200÷12 = 100

At the End of year (month 12) price: $15

PROFIT:15×100 = $1500-1200 =$300

Profit = $300

DCA
Investor B invests $100 every month for 12 months.

Stock prices (Month 1 → 12): 12, 11, 10, 9, 8, 9, 10, 11, 12, 13, 14, 15.
(i asked chat gpt for random prices)

Now let's calculate shares purchased each month:

$100 ÷ 12 = 8.33 shares

$100 ÷ 11 = 9.09 shares

$100 ÷ 10 = 10 shares

$100 ÷ 9 = 11.11 shares

$100 ÷ 8 = 12.5 shares

$100 ÷ 9 = 11.11 shares

$100 ÷ 10 = 10 shares

$100 ÷ 11 = 9.09 shares

$100 ÷ 12 = 8.33 shares

$100 ÷ 13 = 7.69 shares

$100 ÷ 14 = 7.14 shares

$100 ÷ 15 = 6.67 shares

Total shares = ~111.16 shares

Final value = 111.16 × $15 = $1,667-1200=$467

Profit = $467

I was confused first but when I calculated DCA was alot better. You can also see yourself tha DCA is a lot better. You get an extra 11.16 shares if you invest using DCA. And Thanks for your reply that made calculate everything to give an answer to you and myself. Hope you also learned that both are not the same. Lumpsum is better if you want to capture a big move fast but DCA is better if you want to go long term.

Of course I have always fancied the DCA method over lump sum method. Because the DCA method gives you an opportunity to get bitcoin at different prices. Even if an investor bought his initial bitcoin with lump sum, he/she should follow it up with DCA method subsequently. Such an investor shouldn't just buy once with the lump sum throughout his accumulation/holding period. Am a big fan of the DCA approach, and it is what I practice.

[Bigjoe33]

~
The ease of using the DCA method must be accompanied by confidence, because this confidence will ensure everything runs smoothly without being affected by anything, because we are confident that no matter what happens, it will not prevent Bitcoin from continuing to rise in the long term.

Every investment comes with risk and the same applies for bitcoin too and you can never say I am 100% sure that bitcoin will be higher in the next 5 years from the current price and it will likely to be but my point is there's always risk factor in it which creates pressure for retail investors.

To minimize this risk they also should follow diversification, if they can invest $250 a month and no more than that then I recommend that $100 for bitcoin and the remaining for other things they consider potential too grow which reduces the risk and able to have a peace of mind even when the price of bitcoin is crashing because I can't imagine all my savings is in bitcoin and it is crashing 30% in a day will surely creates a panic situation that might force some of them to sell that will result in a capital loss and wasting few years of investing.

Diversification is also good and am not against it. One is free to do other investments outside Bitcoin which your you have sound knowledge about and which also predicts future gains as you studied it too.

My point is about what you said on the panic that rises in the side of the investor if Bitcoin drops up to 30% just as you illustrated above, and to avoid such panic, the investor should have other investments. I think having other investments shouldn't literally be to cover up for the losses that you might incure in your Bitcoin assets or to leverage on when Bitcoin dips. Remember that the investor, a newbie or an average investor had accumulated his Bitcoin or is accumulating with his discretionary funds. This simply means that basic needs and some other needs are already taking care of and then he comfortably accumulates with the left of over income. Employing that DCA strategy too makes it more easier for the investor to accumulate bit by bit and slowly grow his Bitcoin portfolio.

So I don't see a need while such an investor will be panicking to sell, sell, and sell if Bitcoin begins to drop. His emergency funds and all other back up funds which has been created from his discretionary funds will stand the test and ease his mind from panicking. Moreover, over the years, nothing has proven worthy of appreciation like Bitcoin. It can drop, very low, but surely climbs and at that time, those who invests with peace and hold with future positive mindset smiles last. Bitcoin is an asset, and has proven itself worthy over time. Just get everything set and rolling, no panicking, keep investing in the little way you can from your discretionary funds. That's the mentality of real investors. You will reap in due seasons if you faint not in the days of Dipping.

[Moreno233]

Every investment comes with risk and the same applies for bitcoin too and you can never say I am 100% sure that bitcoin will be higher in the next 5 years from the current price and it will likely to be but my point is there's always risk factor in it which creates pressure for retail investors.

To minimize this risk they also should follow diversification, if they can invest $250 a month and no more than that then I recommend that $100 for bitcoin and the remaining for other things they consider potential too grow which reduces the risk and able to have a peace of mind even when the price of bitcoin is crashing because I can't imagine all my savings is in bitcoin and it is crashing 30% in a day will surely creates a panic situation that might force some of them to sell that will result in a capital loss and wasting few years of investing.

Diversification is also good and am not against it. One is free to do other investments outside Bitcoin which your you have sound knowledge about and which also predicts future gains as you studied it too.

Diversification to shitcoins is never good no matter how much study you put into it, it will amount to building your mansion on quick sand. Why would you even contemplate diversification when Bitcoin is all you need to be ok? The money you want to throw away can get you a good portion of Bitcoin and improve your portfolio instead of giving it away to shitcoins that is usually overhyped. As a new investor, never have any interest in shitcoins so you don't make the mistakes that some of us made that made us waste money we would have invested in Bitcoin and be happy by now that Bitcoin have gone above $100k. Let me be honest with you, if you focus on buying Bitcoin aggressively for 15 years from now, you will be one of the happiest person on earth and you will be proud of that action.

[Jegileman]

Thanks  

~

That's just part of the method we choose based on our own abilities and preferences. Once someone becomes very comfortable with a method, like DCA, they can continue using it without switching to a new one as long as they can afford to buy Bitcoin more regularly, following their own plan. I also like the DCA method, although I don't condemn other methods as long as they're comfortable for anyone. However, when it comes to Bitcoin accumulation and long-term goals, DCA can provide greater comfort for anyone who uses it.

Apart from Government and institutions the rest of the investors or almost all investors uses the DCA method but they always front load whenever there is Dip. One funny thing is that the more people are scared when they see Dip the more serious investors are happy and will be taking advantage of those opportunity because they may not see them again. DCA method is very convenient even though government don't use this method but as an Investor you don't really need to rotate on other investment method rather you can just front load when there is Dip.

DCA method is good for all investors, it doesn’t have to be the ordinary investor or the government before this method of investment can be used. If you look at the many opportunities you can get to accumulate more bitcoin using the DCA method, you may want to switch to it and not rely on other methods of investment when investing in bitcoin. Government may be large institutions who lump sum anytime they have the money to buy bitcoin, but they also use the DCA method also, but they do it strategically anytime there is an opportunity for it.

When there is a sudden market dump, it is not something that anyone can foresee, large institutions still take advantage to buy more which makes them also already applying the DCA strategy. The DCA strategy on how perfect it is more is that it doesn’t discriminate on your nature of financial strength as a person, it gives equals rooms to all for investment into bitcoin. Everyone including large institutions are looking for an opportunity to add more to their portfolio if at all the market dumps, but large institutions don’t depend on it as much as smaller investors do as they strive to reach their bitcoin accumulation target.

[Bigjoe33]

Every investment comes with risk and the same applies for bitcoin too and you can never say I am 100% sure that bitcoin will be higher in the next 5 years from the current price and it will likely to be but my point is there's always risk factor in it which creates pressure for retail investors.

To minimize this risk they also should follow diversification, if they can invest $250 a month and no more than that then I recommend that $100 for bitcoin and the remaining for other things they consider potential too grow which reduces the risk and able to have a peace of mind even when the price of bitcoin is crashing because I can't imagine all my savings is in bitcoin and it is crashing 30% in a day will surely creates a panic situation that might force some of them to sell that will result in a capital loss and wasting few years of investing.

Diversification is also good and am not against it. One is free to do other investments outside Bitcoin which your you have sound knowledge about and which also predicts future gains as you studied it too.

Diversification to shitcoins is never good no matter how much study you put into it, it will amount to building your mansion on quick sand. Why would you even contemplate diversification when Bitcoin is all you need to be ok? The money you want to throw away can get you a good portion of Bitcoin and improve your portfolio instead of giving it away to shitcoins that is usually overhyped. As a new investor, never have any interest in shitcoins so you don't make the mistakes that some of us made that made us waste money we would have invested in Bitcoin and be happy by now that Bitcoin have gone above $100k. Let me be honest with you, if you focus on buying Bitcoin aggressively for 15 years from now, you will be one of the happiest person on earth and you will be proud of that action.

Your points are clear. And it's noted. But for the records,
If you go through my post, you wouldn't see me saying one one should diversify to investing in any shitcoins. The previous poster that I quoted opined that one can invest in Bitcoin and also diversify so you don't panic when Bitcoin drops so badly. From his own point of view, he is free to diversify if he wishes, but I stood in for Bitcoin accumulation, making it clear that an investor in Bitcoin have no need to panic at all so long as Bitcoin has proven itself an asset over the years and worthy to be trusted. Even if it drops, invest and hold for long, it will appreciate I'm the nearest future. No need to panic so long you invested using or is still using the discretionary funds. Bitcoin is an asset, proven over the years.. That was my stand. Maybe you didn't go down the post all through

[boyptc]

DCA method is good for all investors, it doesn’t have to be the ordinary investor or the government before this method of investment can be used. If you look at the many opportunities you can get to accumulate more bitcoin using the DCA method, you may want to switch to it and not rely on other methods of investment when investing in bitcoin. Government may be large institutions who lump sum anytime they have the money to buy bitcoin, but they also use the DCA method also, but they do it strategically anytime there is an opportunity for it.

You're right, they know all of these strategies especially the DCA. While that is true that most of their purchases happen to be in a lump sum but it's also likely that they're doing a DCA.

And if we're also going to follow what they do, it's best option for us to keep on DCAing because that's more convenient and lesser in pressure.

So an individual that still don't know what to do, you're in the another opportunity that the market is showing where we're having a correction to continue your DCA plans once again.

[yixichloro2xx]

~
The ease of using the DCA method must be accompanied by confidence, because this confidence will ensure everything runs smoothly without being affected by anything, because we are confident that no matter what happens, it will not prevent Bitcoin from continuing to rise in the long term.

Every investment comes with risk and the same applies for bitcoin too and you can never say I am 100% sure that bitcoin will be higher in the next 5 years from the current price and it will likely to be but my point is there's always risk factor in it which creates pressure for retail investors.

To minimize this risk they also should follow diversification, if they can invest $250 a month and no more than that then I recommend that $100 for bitcoin and the remaining for other things (gold, stocks) that they consider potential too grow which reduces the risk and able to have a peace of mind even when the price of bitcoin is crashing because I can't imagine all my savings is in bitcoin and it is crashing 30% in a day will surely creates a panic situation that might force some of them to sell that will result in a capital loss and wasting few years of investing.

I get that people worry about Bitcoin’s swings, but honestly, that’s part of what makes it exciting. Yeah, it can drop 20 to 30 percent in a day, but over the long term, it keeps bouncing back stronger. Those who hold through the rough patches usually see the real gains....Diversifying is fine for peace of mind, but having a good chunk in Bitcoin is worth it if you want to be part of the future of money. Panicking when it dips is exactly how people miss out.

[Regardme]

~
The ease of using the DCA method must be accompanied by confidence, because this confidence will ensure everything runs smoothly without being affected by anything, because we are confident that no matter what happens, it will not prevent Bitcoin from continuing to rise in the long term.

Every investment comes with risk and the same applies for bitcoin too and you can never say I am 100% sure that bitcoin will be higher in the next 5 years from the current price and it will likely to be but my point is there's always risk factor in it which creates pressure for retail investors.

To minimize this risk they also should follow diversification, if they can invest $250 a month and no more than that then I recommend that $100 for bitcoin and the remaining for other things (gold, stocks) that they consider potential too grow which reduces the risk and able to have a peace of mind even when the price of bitcoin is crashing because I can't imagine all my savings is in bitcoin and it is crashing 30% in a day will surely creates a panic situation that might force some of them to sell that will result in a capital loss and wasting few years of investing.

I get that people worry about Bitcoin’s swings, but honestly, that’s part of what makes it exciting. Yeah, it can drop 20 to 30 percent in a day, but over the long term, it keeps bouncing back stronger. Those who hold through the rough patches usually see the real gains....Diversifying is fine for peace of mind, but having a good chunk in Bitcoin is worth it if you want to be part of the future of money. Panicking when it dips is exactly how people miss out.

Yes most people worry about Bitcoin swings so much. I’ve had experience when I tried accumulating bitcoin for the first time, and I sold at loss because I thought I was going to lose everything and afterwards, I didn’t invest again as that that time, which I later regretted when Bitcoin hits $100k. Joining this thread has made me understand that long term holding has the reward to Bitcoin investment and accumulating. And investing with discretionary income through DCAing, will probably ease once’s stress of panic when theres dip in the bitcoin. Bitcoin potential is worth holding for long term, not just holding but continuing to accumulate more Bitcoin also seeing every dip as an opportunity to accumulate more Bitcoin aggressively.

[Sonia_123]

~
The ease of using the DCA method must be accompanied by confidence, because this confidence will ensure everything runs smoothly without being affected by anything, because we are confident that no matter what happens, it will not prevent Bitcoin from continuing to rise in the long term.

Every investment comes with risk and the same applies for bitcoin too and you can never say I am 100% sure that bitcoin will be higher in the next 5 years from the current price and it will likely to be but my point is there's always risk factor in it which creates pressure for retail investors.

To minimize this risk they also should follow diversification, if they can invest $250 a month and no more than that then I recommend that $100 for bitcoin and the remaining for other things (gold, stocks) that they consider potential too grow which reduces the risk and able to have a peace of mind even when the price of bitcoin is crashing because I can't imagine all my savings is in bitcoin and it is crashing 30% in a day will surely creates a panic situation that might force some of them to sell that will result in a capital loss and wasting few years of investing.

I get that people worry about Bitcoin’s swings, but honestly, that’s part of what makes it exciting. Yeah, it can drop 20 to 30 percent in a day, but over the long term, it keeps bouncing back stronger. Those who hold through the rough patches usually see the real gains....Diversifying is fine for peace of mind, but having a good chunk in Bitcoin is worth it if you want to be part of the future of money. Panicking when it dips is exactly how people miss out.

Diversification is good, but you don't diversify at your early stage of bitcoin accumulation until you have reached your overaccumulation stage and even if you have to diversifying, you don't touch your capital but part of profit so that you don't end up starting from the beginning as a no coiner or low coiner which the price of bitcoin must have gone higher that what you started with, which can set your bitcoin investment backward.

As a bitcoin investor, you are supposed to have an existing investment and not solely relying on bitcoin as your only source of income for survival, since bitcoin is not guaranteed, that will help you to be stable in mind and not always focus on the price of bitcoins ups and downs with fear, since we all know that bitcoin is risky, and the risk involved will also give you the courage to accumulate and hold in a more longer term more than the period you intend to.

[POPOLUV]

~
The ease of using the DCA method must be accompanied by confidence, because this confidence will ensure everything runs smoothly without being affected by anything, because we are confident that no matter what happens, it will not prevent Bitcoin from continuing to rise in the long term.

Every investment comes with risk and the same applies for bitcoin too and you can never say I am 100% sure that bitcoin will be higher in the next 5 years from the current price and it will likely to be but my point is there's always risk factor in it which creates pressure for retail investors.

To minimize this risk they also should follow diversification, if they can invest $250 a month and no more than that then I recommend that $100 for bitcoin and the remaining for other things (gold, stocks) that they consider potential too grow which reduces the risk and able to have a peace of mind even when the price of bitcoin is crashing because I can't imagine all my savings is in bitcoin and it is crashing 30% in a day will surely creates a panic situation that might force some of them to sell that will result in a capital loss and wasting few years of investing.

I get that people worry about Bitcoin’s swings, but honestly, that’s part of what makes it exciting. Yeah, it can drop 20 to 30 percent in a day, but over the long term, it keeps bouncing back stronger. Those who hold through the rough patches usually see the real gains....Diversifying is fine for peace of mind, but having a good chunk in Bitcoin is worth it if you want to be part of the future of money. Panicking when it dips is exactly how people miss out.

Yes most people worry about Bitcoin swings so much. I’ve had experience when I tried accumulating bitcoin for the first time, and I sold at loss because I thought I was going to lose everything and afterwards, I didn’t invest again as that that time, which I later regretted when Bitcoin hits $100k. Joining this thread has made me understand that long term holding has the reward to Bitcoin investment and accumulating. And investing with discretionary income through DCAing, will probably ease once’s stress of panic when theres dip in the bitcoin. Bitcoin potential is worth holding for long term, not just holding but continuing to accumulate more Bitcoin also seeing every dip as an opportunity to accumulate more Bitcoin aggressively.

I want you to understand that there are many more things you are going to learn in building up your Bitcoin portfolio here in this particular thread if consistently being active and also contributing were necessary for more experience and knowledge and i want you to understand that those people that are worry of the fluctuation of Bitcoin in the market are the gamblers and assuming you know that with DCA strategy early time you said you invested and you thought you could lose all you have invested, you couldn't panic because with DCA strategy you not panic of losing but buy as much you can accumulate without thinking the current price of Bitcoin in market, so I'm happy for you that you are learning process of Bitcoin fast enough that you can make a good Bitcoiner.

[Gost ms]

~
The ease of using the DCA method must be accompanied by confidence, because this confidence will ensure everything runs smoothly without being affected by anything, because we are confident that no matter what happens, it will not prevent Bitcoin from continuing to rise in the long term.

Every investment comes with risk and the same applies for bitcoin too and you can never say I am 100% sure that bitcoin will be higher in the next 5 years from the current price and it will likely to be but my point is there's always risk factor in it which creates pressure for retail investors.

To minimize this risk they also should follow diversification, if they can invest $250 a month and no more than that then I recommend that $100 for bitcoin and the remaining for other things (gold, stocks) that they consider potential too grow which reduces the risk and able to have a peace of mind even when the price of bitcoin is crashing because I can't imagine all my savings is in bitcoin and it is crashing 30% in a day will surely creates a panic situation that might force some of them to sell that will result in a capital loss and wasting few years of investing.

I get that people worry about Bitcoin’s swings, but honestly, that’s part of what makes it exciting. Yeah, it can drop 20 to 30 percent in a day, but over the long term, it keeps bouncing back stronger. Those who hold through the rough patches usually see the real gains....Diversifying is fine for peace of mind, but having a good chunk in Bitcoin is worth it if you want to be part of the future of money. Panicking when it dips is exactly how people miss out.

Yes most people worry about Bitcoin swings so much. I’ve had experience when I tried accumulating bitcoin for the first time, and I sold at loss because I thought I was going to lose everything and afterwards, I didn’t invest again as that that time, which I later regretted when Bitcoin hits $100k. Joining this thread has made me understand that long term holding has the reward to Bitcoin investment and accumulating. And investing with discretionary income through DCAing, will probably ease once’s stress of panic when theres dip in the bitcoin. Bitcoin potential is worth holding for long term, not just holding but continuing to accumulate more Bitcoin also seeing every dip as an opportunity to accumulate more Bitcoin aggressively.

I want you to understand that there are many more things you are going to learn in building up your Bitcoin portfolio here in this particular thread if consistently being active and also contributing were necessary for more experience and knowledge and i want you to understand that those people that are worry of the fluctuation of Bitcoin in the market are the gamblers and assuming you know that with DCA strategy early time you said you invested and you thought you could lose all you have invested, you couldn't panic because with DCA strategy you not panic of losing but buy as much you can accumulate without thinking the current price of Bitcoin in market, so I'm happy for you that you are learning process of Bitcoin fast enough that you can make a good Bitcoiner.

Investing is not as easy as it seems. Because it is very difficult to keep yourself calm when the market is falling. Because when you see your money sinking, it is very difficult to keep yourself calm from within. But yes, if a person can face a fall, then maybe he will not be very scared later. Because one fall is enough to gain experience in keeping yourself calm during a fall.

DCA method is an investment method, if you invest through the DCA method, the fear of investment never decreases. The best investment method among the investment methods is the DCA method. Through the DCA method, you can buy with any amount of money. The luck of your investment depends on you. For example, if you cannot maintain proper financial management, then you can fall into many types of problems such as financial problems, then you can put your holdings at risk etc. Many types of problems can be caused by this

[JayJuanGee]

~The ease of using the DCA method must be accompanied by confidence, because this confidence will ensure everything runs smoothly without being affected by anything, because we are confident that no matter what happens, it will not prevent Bitcoin from continuing to rise in the long term.

Every investment comes with risk and the same applies for bitcoin too and you can never say I am 100% sure that bitcoin will be higher in the next 5 years from the current price and it will likely to be but my point is there's always risk factor in it which creates pressure for retail investors.

To minimize this risk they also should follow diversification, if they can invest $250 a month and no more than that then I recommend that $100 for bitcoin and the remaining for other things (gold, stocks) that they consider potential too grow which reduces the risk and able to have a peace of mind even when the price of bitcoin is crashing because I can't imagine all my savings is in bitcoin and it is crashing 30% in a day will surely creates a panic situation that might force some of them to sell that will result in a capital loss and wasting few years of investing.

This diversification idea comes off as presumptuous and even a little bit retarded, and your example of a $250 per month investment budget does not help to suggest that it is of a large enough size to warrant diversification.

Frequently if a person is brand new to investing, he would not need to diversify beyond bitcoin and cash... $250 per month is $3k per year, and so maybe we could presume that the person has around a $30k income, so that would be 10% of their income invested into bitcoin.

Now if the person already has some cash reserves, then he could invest straight into bitcoin, yet usually there would be a need to get the bitcoin and the back up funds to 3 months of expenses.. So if the person only has $3k per year, then $1,500 into back up funds and $1500 into bitcoin might not be enough to constitute 3 monthsd of expenses.. A person with  a $30k per year might have around $1,500 per month in expenses... so investing $4,500 into an emergency fund and $4,500 into bitcoin might take a couple of years, yet you are prescribing some kind of diversification (really dilution) into stocks and gold.. which does not make much sense.

Even though you have bitcoin as part of your user name, you don't sound too passionate about bitcoin, which might cause some of us to consider that you might not really understand bitcoin very well because otherwise why would you be proclaiming diversification as if it were to be important.  A person could invest close to a year of income and/or expenses into bitcoin before it might start to make some sense to diversify, and surely diversification for the mere sake of it makes little sense... since diversification is something used to preserve wealth rather than to grow it, so anyone who is getting into bitcoin might well be in the wealth growing stage. 

There could be some folks coming into bitcoin and they already have other investments, so then for them there could  be a question  about if they reallocate some of their already existing investments into bitcoin or to continue to invest into the already existing investments and/or to ONLY invest new money into bitcoin, and if we go back to your $250 per month budget, that is not a lot to work with since it is only about $60 per week, which hardly makes sense to split into parts unless it is merely involving the building of back up funds.

[edited out]

Diversification is good, but you don't diversify at your early stage of bitcoin accumulation until you have reached your overaccumulation stage and even if you have to diversifying, you don't touch your capital but part of profit so that you don't end up starting from the beginning as a no coiner or low coiner which the price of bitcoin must have gone higher that what you started with, which can set your bitcoin investment backward.

As a bitcoin investor, you are supposed to have an existing investment and not solely relying on bitcoin as your only source of income for survival, since bitcoin is not guaranteed, that will help you to be stable in mind and not always focus on the price of bitcoins ups and downs with fear, since we all know that bitcoin is risky, and the risk involved will also give you the courage to accumulate and hold in a more longer term more than the period you intend to.

There is no bright line in terms of when some guys might start to consider that diversification might start to make sense, but it usually would start to make sense prior to reaching overaccumulation status.

I have frequently thought that getting our bitcoin investment to cover 1 year of expenses might be a line in which diversification might start to make sense, yet some guys want to start to diversify earlier than that and some are o.k. waiting until a later point in time. There is no real wrong answer, except maybe it does not make muuch if any sense to be diversifying in the very early stages of investing, since that dilutes your investment, and surely any of us trying to build up our bitcoin investment realize that it can take a long time to just get to 3-6 months or even longer than that of our expenses invested into bitcoin, so for example if our monthly expenses are somewhere in the ballpark of $1,500 per month, but we are ONLY investing around $250 per month, it would take us 18 months just to get to the point of having had invested 3 months of our expenses into bitcoin. 

Surely bitcoin's price might go up and/or down and change value during that time, so one thing is how much we have put into bitcoin and another thing is watching the extent to which what we had put in is going up or down in value.. and even though we might not get too concerned about whether we are in profits or not we might realize that if we are investing steady in bitcoin for 4 years, then maybe at that point our costs per BTC may well be around the same as the 200-WMA.. and the BTC spot price tends to be above the 200-WMA, yet not all of the time... .and BTC's price is also not guaranteed to continue to go up, even though bitcoin has a strong investment thesis, perhaps amongst the best of places, if not the best place, to put our time, energy and value.

[Tamaperdana]

Hi JJG. I wanted to ask a question according the acummulation of Bitcoin and this thread is I think the best for that. I wanted to ask tha We should invest Big amounts of Money at a big dump for example $5000-10000 or we should break down this amount and DCA it over the course of a few years. I believe investing it at once is a riskier choice but can give you more profit than DCA. But DCA is Not Very Risky and requires Time and Discipline. What would you say a person should choose if they want to Increase The value of their money The Most. Thanks  

Although this question is addressed to JJG, I will also answer your question. I think the answer is quite simple: if you truly have $5,000 or more, and that money is strictly discretionary funds, I don't think you need to worry about starting to invest in Bitcoin. There are only two options, in my opinion: aggressive buying or using the DCA technique. I believe both options have their advantages, so the point is, don't be afraid of making the wrong choice. So, if you choose to aggressively buy Bitcoin, I think that's fine right now. As long as you truly plan to invest in Bitcoin for more than 10 years, I don't think aggressive buying now is a problem.

Because in 10 years, the price of Bitcoin will likely be much higher than it is now. So, with that in mind, I think it's safe to aggressively buy Bitcoin now. But if you want to be more relaxed and want to invest by buying Bitcoin at various prices, I think DCA is the right path. Essentially, you just have to choose between the two options. And I also remind you, if your funds aren't entirely discretionary, you should separate the non-discretionary funds. So, don't let that money get mixed up in Bitcoin, as that's certainly not good for your Bitcoin investment.

[JayJuanGee]

Hi JJG. I wanted to ask a question according the acummulation of Bitcoin and this thread is I think the best for that. I wanted to ask tha We should invest Big amounts of Money at a big dump for example $5000-10000 or we should break down this amount and DCA it over the course of a few years. I believe investing it at once is a riskier choice but can give you more profit than DCA. But DCA is Not Very Risky and requires Time and Discipline. What would you say a person should choose if they want to Increase The value of their money The Most. Thanks  

Although this question is addressed to JJG, I will also answer your question. I think the answer is quite simple: if you truly have $5,000 or more, and that money is strictly discretionary funds, I don't think you need to worry about starting to invest in Bitcoin. There are only two options, in my opinion: aggressive buying or using the DCA technique. I believe both options have their advantages, so the point is, don't be afraid of making the wrong choice. So, if you choose to aggressively buy Bitcoin, I think that's fine right now. As long as you truly plan to invest in Bitcoin for more than 10 years, I don't think aggressive buying now is a problem.

Because in 10 years, the price of Bitcoin will likely be much higher than it is now. So, with that in mind, I think it's safe to aggressively buy Bitcoin now. But if you want to be more relaxed and want to invest by buying Bitcoin at various prices, I think DCA is the right path. Essentially, you just have to choose between the two options. And I also remind you, if your funds aren't entirely discretionary, you should separate the non-discretionary funds. So, don't let that money get mixed up in Bitcoin, as that's certainly not good for your Bitcoin investment.

HustleZ gives an example of $5k to $10k so he was not exactly precise, since it makes a pretty big difference if the amount is $5k versus $10k.  It also might make a difference to tell a few more things about the investor, such as some guidelines in regards to his 9 individual factors.

If HustleZ is describing the amount as being available for bitcoin investment, then the presumption would be that the amount is discretionary funds, even though it would be nice to know more things about ths hypothetical guy.

Regarding your "only" two methods, you failed/refused to mention buying the dip.  Do you think that buying the dip is not an option?  Of course, we might not agree with the employment of "buying the dip" as an option, yet it seems to be purposefully ignoring a whole category and a whole other approach to fail/refuse to mention buying the dip as one of three possibilities.

I would call them 1) buy right away, 2) defer by time (DCA) and 3) defer by price (buy the dip). 

The level of "aggressiveness" can fit into any of the three categories .. since in any way that we approach bitcoin we can approach it on scale of whimpy to aggressive and those approaches depend on context... so for example, if the amount is $7.5k (let's pick an amount in the middle of the range), and he chooses to DCA, he could DCA relatively aggressively $1,071.43 per day for 7 days or he could DCA relatively whimpily $468.75 per quarter for the next 4 years.  We always retain the ability to be aggressive or whimpy and we can change our level of whimpiness or aggressiveness whenever we like.

[bitcoin_mining]

Thanks  

It doesn't matter the how you chose to spend the money on bitcoin accumulation. Bitcoin investment methods made provisions for all of that, it depends on how you the investor want to go about it. If you want to go with the lump sum method it's fine, if you want to go with DCA it's also fine. It's just like someone who use the elevator and someone who uses the staircase. But in the end they are going to meet at same spot. The choice of what method to use is your own and nobody can make that decision for you. What matters is your ability to hold on to your bitcoin on the long term.

That's just part of the method we choose based on our own abilities and preferences. Once someone becomes very comfortable with a method, like DCA, they can continue using it without switching to a new one as long as they can afford to buy Bitcoin more regularly, following their own plan. I also like the DCA method, although I don't condemn other methods as long as they're comfortable for anyone. However, when it comes to Bitcoin accumulation and long-term goals, DCA can provide greater comfort for anyone who uses it.

Apart from Government and institutions the rest of the investors or almost all investors uses the DCA method but they always front load whenever there is Dip. One funny thing is that the more people are scared when they see Dip the more serious investors are happy and will be taking advantage of those opportunity because they may not see them again. DCA method is very convenient even though government don't use this method but as an Investor you don't really need to rotate on other investment method rather you can just front load when there is Dip.

I am an investor so I will think about my personal matters first. I have to do what would be good for my investment or how to invest so that the investment can be held for a long time and also get a good amount of return from that investment after a certain period of time.

Now if I think that Bitcoin A DCA investment method is the safest and most effective investment method then we have to give more importance to this investment method. There is no need to look at other investors, if we invest successfully in the DCA investment method then we can share that success story with others but whether another person invests in this method or not is his own matter. I think those who know about DCA investment so far consider this investment method as the best investment method. However, there are still many investors who do not know about this method, I would not have known about this investment method if I had not read the posts in this section regularly.

Basically, here Bitcoin and DCA investment strategies are discussed more, due to which all the members who come to this section will get a good idea about DCA investment.

[Barikui1]

I am an investor so I will think about my personal matters first. I have to do what would be good for my investment or how to invest so that the investment can be held for a long time and also get a good amount of return from that investment after a certain period of time.

Now if I think that Bitcoin A DCA investment method is the safest and most effective investment method then we have to give more importance to this investment method. There is no need to look at other investors, if we invest successfully in the DCA investment method then we can share that success story with others but whether another person invests in this method or not is his own matter. I think those who know about DCA investment so far consider this investment method as the best investment method. However, there are still many investors who do not know about this method, I would not have known about this investment method if I had not read the posts in this section regularly.

Basically, here Bitcoin and DCA investment strategies are discussed more, due to which all the members who come to this section will get a good idea about DCA investment.

You are actually right that the DCA accumulating strategy remains the best when talking of accumulating Bitcoin, because you will be buying either weekly or monthly at your own convenient and in every price interval, but the long term goal is to hold for a very long time, so other Bitcoin accumulating strategy like lump sum is not entirely bad, the key thing their is that you buys and accumulate according to the strategy that suit your discretionary income, because acquiring Bitcoin according to the convenient of your discretionary income is very important for consistency in your accumulation of Bitcoin, so other Bitcoin accumulating strategy is cool, as long as it goes in line with your discretionary income.

[Dictator69]

How is bitcoin going to spread if no one wants to admit that they use bitcoin?  You expect bitcoin to still have value if everyone is secret about it?

Hello JayJuanGee how are you doing? You point out a good question and for a second I also started to deep think how the real promotion of Bitcoin started, because I wanted to reply to your question by saying we don't have to tell how much we own we can simply tell them the advantages, profits they could have made etc. We could sell them this the same way to motivate them like a banker tells a customer to open a savings account and tell them the benefits without telling how much he had.

But after realizing into my deep thinking, if it were not the profits then maybe the promotion is not the same way or the adoption. It plays an important role in promoting Bitcoin. What do you think how we should deal with this without telling our own holdings, I guess we can say to anyone, hey let's take a example, if you would have bought Bitcoin in 2015, you would have this much money right now.

[jems]

I am an investor so I will think about my personal matters first. I have to do what would be good for my investment or how to invest so that the investment can be held for a long time and also get a good amount of return from that investment after a certain period of time.

Now if I think that Bitcoin A DCA investment method is the safest and most effective investment method then we have to give more importance to this investment method. There is no need to look at other investors, if we invest successfully in the DCA investment method then we can share that success story with others but whether another person invests in this method or not is his own matter. I think those who know about DCA investment so far consider this investment method as the best investment method. However, there are still many investors who do not know about this method, I would not have known about this investment method if I had not read the posts in this section regularly.

Basically, here Bitcoin and DCA investment strategies are discussed more, due to which all the members who come to this section will get a good idea about DCA investment.

You are actually right that the DCA accumulating strategy remains the best when talking of accumulating Bitcoin, because you will be buying either weekly or monthly at your own convenient and in every price interval, but the long term goal is to hold for a very long time, so other Bitcoin accumulating strategy like lump sum is not entirely bad, the key thing their is that you buys and accumulate according to the strategy that suit your discretionary income, because acquiring Bitcoin according to the convenient of your discretionary income is very important for consistency in your accumulation of Bitcoin, so other Bitcoin accumulating strategy is cool, as long as it goes in line with your discretionary income.

Regardless of the strategy we choose, we must also consider our ability to accumulate Bitcoin. I really like the DCA strategy because it allows us to measure the amount of money we have set aside to accumulate Bitcoin. If we consistently do it, it won't impact our real-life finances.
Regarding targets and plans for our investments, I'm sure all investors have their own plans. Personally, I just want to invest in the future, so whatever happens won't affect my mindset regarding the investment choices I've already made.