Buy the DIP, and HODL!

[Felicity_Tide]

As the replies keep getting deeper, I realize that there are two points of view most replies are coming from:

1. A situation where the investor has the will to keep investing and holding with no plans of stopping or no specific time to quit.
2. A situation where the investor has a specific time frame for investing and holding.

Now let me make reference to these two.

Aside from Bitcoin investment, there are certain people in the world today who make massive investments in several projects with the mindset of doing it just for future benefits. Mind you, just for future benefits doesn't mean they already have plans on how to spend or use their profits. The ability for them to make such long term investments is because they prioritize investment over profits, and not profit over investment. Let me give an example:

Let's take a scenario of someone who has realized the future potential of Bitcoin and decides to invest in it. Due to how well this person understands long term investment, he or she won't have the urge or plan to tamper with the Bitcoin investment along the line because of the high priority placed on making investments only. Some of us here might have been in such situations, especially when it comes to alt. We sometimes invest massively but have no interest in spending it. We might even forget the seed phrase where those coins are kept.

Being able to do this is not for everyone. The ability to make your present profit a lesser priority and your continuous investment a major priority would enable you to invest longer.

As for the second point, the very moment an investor drafts a specific time frame for investing and holding, then getting quick profits becomes the number one priority rather than investing and holding for long term.

I am not saying that making profits is bad. But what we choose to prioritize most will determine how long we can invest. When we prioritize consistent investment and holding over making profits, we tend to invest for long term. But, when we prioritize profits over consistent investment and holding, we tend to invest for only a short period of time, and any ATH might even end our investment.

You bring up some decent points Felicity_Tide, yet I doubt whether your framework is correct...

It is quite likely that you are comparing investing versus trading rather than two kinds of investing.

My emphasis on profits seems to hinder the actual message I was trying to pass. I wasn't actually trying to bring this from the angle of trading.

For the first point, I was trying to say that: even if Bitcoin gets to a ATH along the line of someone's investment, giving him/her the impression that they've gotten more than what they invested, it still doesn't affect the long term decision of the investor in anyway.

For the second point, I was trying to say that: when some investor realize that they've gotten more than what they've Invested, it has a way of affecting their decisions on whether to continue or stop investing.

Which I then trace back to what an investor might prioritize most.

There would really be no reason for any bitcoin investor to have any specific time-frame for getting out or when to get out or how to get out, but surely it does not hurt to come into something like bitcoin with at least a 4 year timeline, so then the 4-10 years or longer idea may well come into play, so that if there might be some specific kinds of reasons that a person might consider that there might be some reason to start to draw upon his investment somewhere after 4 years whether it is based on some age considerations or maybe some kind of a purchase that he might want to make (such as someone saving up for a house or something like that).

Sure. 4-10 years isn't bad in anyway.

When we are talking about timelines that are less than 4 years then we are back to trading rather than investing, even if you want to call it investing, I have my doubts about the appropriateness of "investing" as a label.

Oh, I get it now. In other sense, the set of people who fall in point 2 should be treated as traders rather than investors.

Also, I am not sure what you mean about "especially when it comes to alt" when this is not even a thread that remotely relates to alts..  We are talking about bitcoin here,

My intention was not to talk about alts, but rather to use it as a simple reference. I couldn't find a better reference that everyone could easily understand and would also fit the context , but I guess I must edit and fill it with something random so It doesn't deviate in anyway.

[GigaBit]

Yeah I will, and I'm happy that I started than waiting  to know everything about Bitcoin before starting. Ever since I started investing I have known a lot of things and I know with time I will know more.

Initial experiments will always be a very valuable lesson for anyone and you are one of those people who can have more luck if you believe in investing in Bitcoin as long as possible. Because your task will not be difficult enough for this, namely just buying Bitcoin as much as you can while studying it over time for a deeper and more knowledge of Bitcoin. And you must be confident in the decision you make because you have found a pretty good way to invest in Bitcoin without any doubts or complaints that are not important for the long term.

Of course, if you are not confident, it is not possible to invest there. Moreover, when it is possible to establish complete trust, only then the investor will be satisfied with the investment. DCA strategy is more effective than other strategies in investing in Bitcoin. An investor has the opportunity to invest in Bitcoin according to his/her ability. If necessary he can take a temporary break from his investment but those who keep on accumulating bitcoins regularly for a long term can benefit the most from bitcoins because if bitcoins are stored for a long time then the amount of bitcoins will increase for a certain period of time and also the price of bitcoins will increase in the long term. As a result an investor can benefit from both sides.

[Btcdeybodi]

[edited out]

I agree with you one can't wait trying to get all the knowledge before investing, me as a newbie I don't have all the knowledge about Bitcoin all I have now is still the basic knowledge and I have already started accumulating Bitcoin using the DCA method. The more you wait the more you lose just imagine I was still waiting trying to get all the knowledge about Bitcoin I won't have accumulated the little I did now, so there's no point in waiting get the basic knowledge and start your accumulation journey.

Bitcoin is a good store of value, even if Bitcoin isn't worth anything today, it doesn't matter at all because the future is brighter than now. Why did I say what I said? I said this because I believe that Bitcoin is not something we should buy today and sell next month, it is something that an investor should hold onto dearly cy long  and I also understand that the more an investor holds onto Bitcoin, that's the more knowledge the investor gets so, without putting the knowledge to practice (by investing) the investor will just stay without adding more knowledge to the ones he/she has already learned before.

The only way one can get full knowledge about Bitcoin is by investing, you will get to understand very well what it means when Bitcoin's price increases and when it decreases, only knowledge will not give us experience, so if an investor that hasn't invested in Bitcoin needs more knowledge, then he/she should invest and learn more from the investment side. So my follow newbies get the basic knowledge and start your Bitcoin accumulation journey so you won't regret waiting.

All of that sounds correct, and you should get more knowledge about bitcoin and yourself if you spend 4 years or longer accumulating bitcoin, learning about bitcoin and potentially adjusting (and/or tweaking) your various BTC accumulation (and/or BTC maintenance) strategies along the way, so maybe after 4 years or more of accumulating bitcoin, you will be in a much better position to both assess how your bitcoin accumulation had been playing out and whether you need to make further adjustments to your strategy at that point or just to continue with what you had already been doing.

Exactly, gaining more knowledge and being very observant during one's accumulating years is very necessary because it is assumed that after 4 years one must have undergone thorough study of how Bitcoin investment works so for someone that have been using the DCA to buy Bitcoin at regular intervals, can decide either to increase their DCA depending on his capacity through his income in-flow because if one has started earning higher and sees the need to increase their DCA amount or have some reserved funds incase of a DIP then it is also left for such investor to begin to use different accumulating strategy like the lump summing as these strategies helps in building huge portfolios and owning a high amount of Bitcoins unlike the regular DCAing. Bitcoin investment is just about being able to understand the activities of the market at a particular period of time.

You are not incorrect in anything that you are saying Btcdeybodi, yet you seem to make the process of the first four years of investing in bitcoin to sound more magnanimous than it may well be in terms of each of us likely coming from different places in terms of our investments and/or starting points, and so it could well be that someone comes into bitcoin and is brand new to any kind of investing into anything, and there are also folks who come into bitcoin and have already experienced other kinds of investing, so they are adding bitcoin into the mix of their already existing investments.  .. so surely, I don't necessarily mind presuming and/or exploring cases in which people might be completely new to both investing and new to bitcoin, yet it still remains dangerous to presume too much of that without specifically pointing that out to be our presumptions.. and if we are getting to a place in which someone is brand new to both bitcoin and to investing, I really have my doubts about their making magnanimous progress within a 4 year timeline, even if 4 years might be enough time for them to really to get the hang of managing their finances (and psychology) and likely putting in place good systems of cashflow management, such as establishing and managing of an emergency fund, reserves and their monthly cash floats.  Those kinds of practices can be decently established in 4 years, but not necessarily expecting to become rich or even to be in any kind of meaningful profits with your bitcoin investment.

No matter what when we add some kind of a new investment into our practices, we are likely going to be attempting to learn along the way, and there may well be some aspects of bitcoin that we do not really realize that we do not know until we have been looking into bitcoin for a while and have studied and thought about it.  

I do consider that many times people overly emphasize how much we need to know about bitcoin in order to invest into it, when the more important learning points remain learning about ourselves, our finances, our psychology and how to manage our cashflow, including our bitcoin investment, even though surely there are some special aspects of bitcoin that are also worthy of learning - especially since bitcoin is a paradigm shifting asset class that is quite unique and it could take several years  (beyond merely 4 years) to wrap our heads around having a better understanding in regards to how bitcoin differs from other investment options that we might have when we start in bitcoin or other investment opportunities that might come to us during our first 4 years involved in bitcoin.. and will we get distracted or not or will we be able to keep ourselves with some kind of a meaningful focus that is tailored to our personal circumstances.

Your seeming presumption about making a lot of progress over 4 years of investing into bitcoin may well be overly presumptuous, since it could take 20 years or more for someone to really meaningful and significantly build up an investment (whether bitcoin or any other investment or even if we might consider that there are possibilities that our bitcoin investment could end up paying off in a shorter period of time than other places that we might put our value.. without guarantees, either), so we cannot necessarily presume that someone coming into bitcoin is going to become totally transformed into riches in 4 years, and it could even be the case that 4 years of investing into bitcoin has not actually realized a whole lot of progress (and maybe not even being in profits).. but still there could be values in terms of going through such a process of investing, learning about yourself and organizing yourself.

Regarding your ideas of lump sum investing opportunities..  frequently the consideration of lump sum opportunities might come in the very beginning of an investment, but surely as you suggested, there could be opportunities for lump sum investing at various points down the road too.. yet at the same time, the longer that anyone is in bitcoin, then there would be a bit of a presumption that such person had already been building up his/her bitcoin stash including that how and the extent to which the bitcoin stash is being built up (in comparison to any other investments - including cash reserves that the person has) is going to help to inform that person in regards to future actions in terms of if some lump sum amounts of money might suddenly come available and then there might already be a system in place so that the lump sum extra amounts might be able to be plugged into bitcoin in full or perhaps in part.. and with discretion and insight regarding whether and how to employ lump sum investment opportunities if they might come later down the road rather than coming in the very beginning stages of a bitcoin investment period.

I like how detailed and voluminous your explanations are, however Bitcoin is a broad subject that we keep making improvements in different intervals of our investments and I know that 4 years is not enough to have a complete understanding about bitcoin but I was actually referring to a newbie who just started the accumulating process because within an interval of four years they should have had a literal knowledge about the right strategy to follow in every stage of their accumulating process and just like you said within 4 years interval it is expected that they should know how to manage their cash flows and how to split it in order to apply each strategy when the needs arises. Actually anyone who have made accumulations within just four years should not see themselves that they have arrived as within that interval is just like a road map that will lead to the profits making in the long time. At least before any investor can see themselves to have some stash of bitcoin should be from 10 years depending on the DCA amount that's for someone still very consistent in the strategy.

About lump summing opportunities, sure it can come at the early stage of one's investment but you can agree with me that someone who is new to Bitcoin investment may not have the idea of lump summing yet even when they have some reserved funds but within the periods of their investments, they can be understanding the activities of the market and see a need for lump summing during DIPs because at the beginning they may just have a literal understanding. We should not forget that lump summing at a DIP price also gives us more advantage to owning a huge portfolio especially in a very drastic DIP such that an investor can even decide to buy huge amount of Bitcoins at that point and continue with the DCA later on. However, the idea of lump summing always comes along the line when using the DCA because a beginner may not really have the idea at that early period of time except someone that just want to go all in their Bitcoin investment without considering the DCA.

[lepbagong]

Yeah I will, and I'm happy that I started than waiting  to know everything about Bitcoin before starting. Ever since I started investing I have known a lot of things and I know with time I will know more.

Initial experiments will always be a very valuable lesson for anyone and you are one of those people who can have more luck if you believe in investing in Bitcoin as long as possible. Because your task will not be difficult enough for this, namely just buying Bitcoin as much as you can while studying it over time for a deeper and more knowledge of Bitcoin. And you must be confident in the decision you make because you have found a pretty good way to invest in Bitcoin without any doubts or complaints that are not important for the long term.

Of course, if you are not confident, it is not possible to invest there. Moreover, when it is possible to establish complete trust, only then the investor will be satisfied with the investment. DCA strategy is more effective than other strategies in investing in Bitcoin. An investor has the opportunity to invest in Bitcoin according to his/her ability. If necessary he can take a temporary break from his investment but those who keep on accumulating bitcoins regularly for a long term can benefit the most from bitcoins because if bitcoins are stored for a long time then the amount of bitcoins will increase for a certain period of time and also the price of bitcoins will increase in the long term. As a result an investor can benefit from both sides.

Because they are sure that many invest, and it is also certain because it is profitable. I think you are very right to do the DCA scheme for a strategy of investing in bitcoin, because that is what can be done, because the price is indeed very expensive.
Investment in bitcoin is indeed for the long term because it usually always increases every 4 years and, coincidentally, next year is the period, and it is certain that many are waiting for a situation like this.
Be prepared to be able to get results from the investment you make for a long time and, finally, it will produce. Now is the time to hold and prepare your bitcoin.

[JayJuanGee]

[edited out]

I like how detailed and voluminous your explanations are, however Bitcoin is a broad subject that we keep making improvements in different intervals of our investments and I know that 4 years is not enough to have a complete understanding about bitcoin but I was actually referring to a newbie who just started the accumulating process because within an interval of four years they should have had a literal knowledge about the right strategy to follow in every stage of their accumulating process and just like you said within 4 years interval it is expected that they should know how to manage their cash flows and how to split it in order to apply each strategy when the needs arises. Actually anyone who have made accumulations within just four years should not see themselves that they have arrived as within that interval is just like a road map that will lead to the profits making in the long time. At least before any investor can see themselves to have some stash of bitcoin should be from 10 years depending on the DCA amount that's for someone still very consistent in the strategy.

About lump summing opportunities, sure it can come at the early stage of one's investment but you can agree with me that someone who is new to Bitcoin investment may not have the idea of lump summing yet even when they have some reserved funds but within the periods of their investments, they can be understanding the activities of the market and see a need for lump summing during DIPs because at the beginning they may just have a literal understanding. We should not forget that lump summing at a DIP price also gives us more advantage to owning a huge portfolio especially in a very drastic DIP such that an investor can even decide to buy huge amount of Bitcoins at that point and continue with the DCA later on. However, the idea of lump summing always comes along the line when using the DCA because a beginner may not really have the idea at that early period of time except someone that just want to go all in their Bitcoin investment without considering the DCA.

You are using the term lump summing differently from me.

From my point of view, saving extra money to buy the dip may or may not be a good strategy,  and from my point of view that is not lump summing... that is buying the dip. .there is no reason to call it lump summing merely because you are saving extra money for such buying the dip opportunities, which again may or may not be a good idea... especially for beginners who likely need to focus on stacking BTC without trying to guess about when dips might or might not come.. but sure you can do what you like in terms of holding back money to buy dips that may or may not pay off better than merely just ongoingly buying in a DCA kind of style.

There are already quite a few guys here who are coming around to understanding lump sum buying is different from buying the dip, and including that we either might come across extra money when we start to invest, or we might come accross extra money for a variety of reasons.. such as bonuses from work, inheritance, win the lottery, rearrange finances and realize that you hae more money than you thought that can be used for buying bitcoin. 

If you are combining the idea of lump summing and buying the dip, you may well not know what one or the other of those is since you are not able to distinguish them.

The same is true in terms of understanding the tradeoffs involved in regards to engaging in strict DCA versus holding some money aside for buying the dip.

I am not saying not to hold money aside, but likely there is hardly any need to hold extra money aside, especially in the first few years that you might be buying BTC, especially if you are ONLY buying through DCA and you might not be front loading your investment or lump summning from the start, so guys who might lump sum or front load from the start, may well find justification to also hold some cash aside for buying the dip and/or DCA'ing... I feel that I am repeating myself with these ideas so many times described why folks might supplement early lump summing and front loading with buying the dip and DCA but it may well might not be worth it to be saving money to buy the dip for those who are engaging in regular DCAing rather than those who front load their BTC investment.. need I give an example? of some one who might DCA $100 per week, but then if that person has $6k to invest right away, maybe that person invests $3k into bitcoin in a lump sum kind of way and then splits the other $3k into 50% buying the dip and 50% DCA..

[Kliss]

[edited out]

I like how detailed and voluminous your explanations are, however Bitcoin is a broad subject that we keep making improvements in different intervals of our investments and I know that 4 years is not enough to have a complete understanding about bitcoin but I was actually referring to a newbie who just started the accumulating process because within an interval of four years they should have had a literal knowledge about the right strategy to follow in every stage of their accumulating process and just like you said within 4 years interval it is expected that they should know how to manage their cash flows and how to split it in order to apply each strategy when the needs arises. Actually anyone who have made accumulations within just four years should not see themselves that they have arrived as within that interval is just like a road map that will lead to the profits making in the long time. At least before any investor can see themselves to have some stash of bitcoin should be from 10 years depending on the DCA amount that's for someone still very consistent in the strategy.

About lump summing opportunities, sure it can come at the early stage of one's investment but you can agree with me that someone who is new to Bitcoin investment may not have the idea of lump summing yet even when they have some reserved funds but within the periods of their investments, they can be understanding the activities of the market and see a need for lump summing during DIPs because at the beginning they may just have a literal understanding. We should not forget that lump summing at a DIP price also gives us more advantage to owning a huge portfolio especially in a very drastic DIP such that an investor can even decide to buy huge amount of Bitcoins at that point and continue with the DCA later on. However, the idea of lump summing always comes along the line when using the DCA because a beginner may not really have the idea at that early period of time except someone that just want to go all in their Bitcoin investment without considering the DCA.

You are using the term lump summing differently from me.

From my point of view, saving extra money to buy the dip may or may not be a good strategy,  and from my point of view that is not lump summing... that is buying the dip. .there is no reason to call it lump summing merely because you are saving extra money for such buying the dip opportunities, which again may or may not be a good idea... especially for beginners who likely need to focus on stacking BTC without trying to guess about when dips might or might not come.. but sure you can do what you like in terms of holding back money to buy dips that may or may not pay off better than merely just ongoingly buying in a DCA kind of style.

There are already quite a few guys here who are coming around to understanding lump sum buying is different from buying the dip, and including that we either might come across extra money when we start to invest, or we might come accross extra money for a variety of reasons.. such as bonuses from work, inheritance, win the lottery, rearrange finances and realize that you hae more money than you thought that can be used for buying bitcoin. 

If you are combining the idea of lump summing and buying the dip, you may well not know what one or the other of those is since you are not able to distinguish them.

The same is true in terms of understanding the tradeoffs involved in regards to engaging in strict DCA versus holding some money aside for buying the dip.

I am not saying not to hold money aside, but likely there is hardly any need to hold extra money aside, especially in the first few years that you might be buying BTC, especially if you are ONLY buying through DCA and you might not be front loading your investment or lump summning from the start, so guys who might lump sum or front load from the start, may well find justification to also hold some cash aside for buying the dip and/or DCA'ing... I feel that I am repeating myself with these ideas so many times described why folks might supplement early lump summing and front loading with buying the dip and DCA but it may well might not be worth it to be saving money to buy the dip for those who are engaging in regular DCAing rather than those who front load their BTC investment.. need I give an example? of some one who might DCA $100 per week, but then if that person has $6k to invest right away, maybe that person invests $3k into bitcoin in a lump sum kind of way and then splits the other $3k into 50% buying the dip and 50% DCA..

The difference between lump summing and buying the dip is significant. Saving extra money to buy the dip is best described as buying the dip or timing the market, buying the dip involves seizing the opportunities when prices drop, lump summing is more about investing a larger sum of money at once. For beginners focusing on consistent DCA investing might be a safer and more straightforward approach without trying to time the market if someone is already investing through regular DCA,  holding extra money aside might not be necessary especially in their early years. However, having the freedom to take advantage of lump sum opportunities can be beneficial if extra funds become available, whether through bonuses, inheritance, or other sources. It's essential to understand the tradeoffs between sticking to a strict DCA strategy versus setting money aside for potential dip opportunities. While holding extra cash for buying the dip can be interesting, especially for those starting with lump sums or front loading, it might not be as necessary for those consistently DCAing.

[Tungbulu]

[edited out]

You are making sense, Dips are inevitable in the market and some investors are not ready to invest when the price of Bitcoin is stable, for example how we know the stability price of Bitcoin to range between $70k and above, so a few investors might actually want to see the price go below before they invest but from another view it is not always efficient most especially when the Dip the investor have in mind is far more below the stable price, he may keep on waiting for a longer time untill the price begin to surge further instead of declining to his expectations and will be left with no other option than to buy higher than expected.

We might be going through consolidation for nearly 4 months, but I doubt that "stable" is any kind of an accurate way of describing BTC prices or BTC price dynamics.

saying Bitcoin is stable could be kinda misleading and may not be the right choice of word to best describe Bitcoin prices or even a consolidation period because bitcoin is originally known for its volatility and its rapid price fluctuations.

When talk about Consolidation in the bitcoin market, it simply implies a period of time when the bitcoin price range are relatively narrow, but this is far from stability, it's more like a recuperation period or a pause in Bitcoin price to prepare the market for the next significant movement in bitcoin price.

[Btcdeybodi]

[edited out]

[Edited out]

You are using the term lump summing differently from me.

From my point of view, saving extra money to buy the dip may or may not be a good strategy,  and from my point of view that is not lump summing... that is buying the dip. .there is no reason to call it lump summing merely because you are saving extra money for such buying the dip opportunities, which again may or may not be a good idea... especially for beginners who likely need to focus on stacking BTC without trying to guess about when dips might or might not come.. but sure you can do what you like in terms of holding back money to buy dips that may or may not pay off better than merely just ongoingly buying in a DCA kind of style.

There are already quite a few guys here who are coming around to understanding lump sum buying is different from buying the dip, and including that we either might come across extra money when we start to invest, or we might come accross extra money for a variety of reasons.. such as bonuses from work, inheritance, win the lottery, rearrange finances and realize that you hae more money than you thought that can be used for buying bitcoin. 

If you are combining the idea of lump summing and buying the dip, you may well not know what one or the other of those is since you are not able to distinguish them.

The same is true in terms of understanding the tradeoffs involved in regards to engaging in strict DCA versus holding some money aside for buying the dip.

I am not saying not to hold money aside, but likely there is hardly any need to hold extra money aside, especially in the first few years that you might be buying BTC, especially if you are ONLY buying through DCA and you might not be front loading your investment or lump summning from the start, so guys who might lump sum or front load from the start, may well find justification to also hold some cash aside for buying the dip and/or DCA'ing... I feel that I am repeating myself with these ideas so many times described why folks might supplement early lump summing and front loading with buying the dip and DCA but it may well might not be worth it to be saving money to buy the dip for those who are engaging in regular DCAing rather than those who front load their BTC investment.. need I give an example? of some one who might DCA $100 per week, but then if that person has $6k to invest right away, maybe that person invests $3k into bitcoin in a lump sum kind of way and then splits the other $3k into 50% buying the dip and 50% DCA..

I know that lump summing is when an investor chooses to just buy Bitcoin at once but it doesn't mean that after buying at once that someone cannot continue to DCA in other to acquire more at different prices if they have a steady cash flow since lump sum should not be that you will offload all the money you have at that material time, you can still have some reserves to take care of sudden needs pending your next income and you can also see reasons with me that lump summing is more better during a drastic DIP even though you don't continue the DCA for sometime again so you could regain the cash that you used in lump summing at a DIP from your conspicuous income that you would have used to DCA and it now stands as a reserved funds. However, a beginner may not comprehend these various strategies at the start of their investments as they will be more focused about the DCA because it is easier and doesn't allow regular monitoring of market prices. I am not trying to complicate between lump summing, buying at a dip price and the DCA but I am more concerned about lump summing only when a dip occurs and continue to DCA some other time that is for someone who have understood the activities of the market.

Just like you said, I don't want it to look like you are making repetition of yourself however it is also important for a beginner who have spent some years DCAing to know how to split their income between buying at Dip prices, lump summing and DCA. thanks for your concise explanation jayjuangee

[Obim34]

[edited out]

You are making sense, Dips are inevitable in the market and some investors are not ready to invest when the price of Bitcoin is stable, for example how we know the stability price of Bitcoin to range between $70k and above, so a few investors might actually want to see the price go below before they invest but from another view it is not always efficient most especially when the Dip the investor have in mind is far more below the stable price, he may keep on waiting for a longer time untill the price begin to surge further instead of declining to his expectations and will be left with no other option than to buy higher than expected.

We might be going through consolidation for nearly 4 months, but I doubt that "stable" is any kind of an accurate way of describing BTC prices or BTC price dynamics.

saying Bitcoin is stable could be kinda misleading and may not be the right choice of word to best describe Bitcoin prices or even a consolidation period because bitcoin is originally known for its volatility and its rapid price fluctuations.

When talk about Consolidation in the bitcoin market, it simply implies a period of time when the bitcoin price range are relatively narrow, but this is far from stability, it's more like a recuperation period or a pause in Bitcoin price to prepare the market for the next significant movement in bitcoin price.

Noted: while rechecking implying the word stable in the context doesn't fit in appropriately, Bitcoin price has consolidated within the price of $70k supposingly is the right choice of word.

The difference between lump summing and buying the dip is significant. Saving extra money to buy the dip is best described as buying the dip or timing the market, buying the dip involves seizing the opportunities when prices drop, lump summing is more about investing a larger sum of money at once. For beginners focusing on consistent DCA investing might be a safer and more straightforward approach without trying to time the market if someone is already investing through regular DCA,  holding extra money aside might not be necessary especially in their early years. However, having the freedom to take advantage of lump sum opportunities can be beneficial if extra funds become available, whether through bonuses, inheritance, or other sources. It's essential to understand the tradeoffs between sticking to a strict DCA strategy versus setting money aside for potential dip opportunities. While holding extra cash for buying the dip can be interesting, especially for those starting with lump sums or front loading, it might not be as necessary for those consistently DCAing.

All what JJG mean is that lump sum is also an effective approach to accumulate Bitcoin most especially during the DIPs but that shouldn't stop us to keep aside percentage of that funds to DCA, It is far better than just saving the money then waiting for the Dip before investing. In context, all strategies can be effective all in one investment setting depending on how and when it is implemented.

[Tungbulu]

All what JJG mean is that lump sum is also an effective approach to accumulate Bitcoin most especially during the DIPs but that shouldn't stop us to keep aside percentage of that funds to DCA, It is far better than just saving the money then waiting for the Dip before investing. In context, all strategies can be effective all in one investment setting depending on how and when it is implemented.

In essence, JJG basically sughests that investing in Bitcoin would be far more successful and profitable if a hybrid strategy was used. This way, investors could: 

1. profit from the market while it's in a DIP by using the lump sum plan.

2. Average out market fluctuations through the DCA strategy and also reducing the risks associated with timing in the market.

You can be able to diversify the approach you use in your investment by employing a hybrid approach, thereby potentially mitigating the risks of losses as well as also maximizing returns. It's true that this method of investing in Bitcoin is more adaptable and may yield greater returns than depending solely on one strategy.

Boy i haven't really thought about a hybrid approach or the possibilities, I guess learning never ends, because this assertion has also opened my windows of perspection and possibilities.

[Sim_card]

you can also see reasons with me that lump summing is more better during a drastic DIP even though you don't continue the DCA for sometime again so you could regain the cash that you used in lump summing at a DIP from your conspicuous income that you would have used to DCA and it now stands as a reserved funds.

It is wrong for you to think of using your DCA money over a period of time to plan in buying at the dip. The problem with the dip is that, you cannot time the dip to know when it will come because it comes like a thief in the night. Also how will you know the bottom line of the dip. You might think that you have seen the lowest dip, and buy with your DCA funds overtime, and the price of bitcoin continues to go dipper than what you bought, and maybe stay for long.

This is why DCA is good because it makes you to continue stacking without caring about the price of bitcoin at that moment. Someone that is DCAing will have the opportunity to always buy bitcoin when the price dips to the bottom line, because he is consistent with accumulating his bitcoin often. I would not say that it is a good practice for a new beginner or a low coiner to use his money that he has set aside to DCA overtime to buy bitcoin when the price dips and keep waiting till he has recovered back before he continues with his DCA. DCA should not be stopped, because it will terminate the purpose of accumulating and growing your bitcoin portfolio faster to reach your bitcoin target.

Lump sum can be done anytime that you have the money, you just buy right away without waiting for the dip, but you should make sure that you are on your regular DCA accumulation weekly or monthly and it shoukd not be tampered with. Money that we don't need and feel it is good to put it into bitcoin is good for lump sum. For instance, you sold your car because, you don't need it anymore and not because you are broke or it is giving you problems. Such money can be used to lump sum right away since it is not part of you regular income.

However, a beginner may not comprehend these various strategies at the start of their investments as they will be more focused about the DCA because it is easier and doesn't allow regular monitoring of market prices. I am not trying to complicate between lump summing, buying at a dip price and the DCA but I am more concerned about lump summing only when a dip occurs and continue to DCA some other time that is for someone who have understood the activities of the market.

It is a wrong perspective, because instead of keeping the cash waiting for the dip and the dip did not come you might use the cash for other unforeseen challenge that might arise. Also you don't need to understand the market before you can DCA, all you need to do is to know how much is your discretionary income from your cash inflow, and how much can you use from your discretionary income to buy bitcoin that will enable continue buying with that amount always, without any problem and hodli for long. If you don't have a discretionary income then you look for another means of income. So that part of your income from the second job can be used as your discretionary income.

[bestcoins1]

saying Bitcoin is stable could be kinda misleading and may not be the right choice of word to best describe Bitcoin prices or even a consolidation period because bitcoin is originally known for its volatility and its rapid price fluctuations.

When talk about Consolidation in the bitcoin market, it simply implies a period of time when the bitcoin price range are relatively narrow, but this is far from stability, it's more like a recuperation period or a pause in Bitcoin price to prepare the market for the next significant movement in bitcoin price.

It wouldn't be a problem if we didn't consider Bitcoin a stable asset because its volatility and rapid price fluctuations in Bitcoin are what make everyone start to place more hope in Bitcoin. And it has also been proven that several cycles or periods of price recovery occur before more significant movements occur in the market for Bitcoin. Apart from that, traders also prefer Bitcoin because they can take quick profits from daily price movements in the market rather than stable prices that they cannot take advantage of on a daily basis.

[Roseline492]

[edited out]

You are making sense, Dips are inevitable in the market and some investors are not ready to invest when the price of Bitcoin is stable, for example how we know the stability price of Bitcoin to range between $70k and above, so a few investors might actually want to see the price go below before they invest but from another view it is not always efficient most especially when the Dip the investor have in mind is far more below the stable price, he may keep on waiting for a longer time untill the price begin to surge further instead of declining to his expectations and will be left with no other option than to buy higher than expected.

We might be going through consolidation for nearly 4 months, but I doubt that "stable" is any kind of an accurate way of describing BTC prices or BTC price dynamics.

saying Bitcoin is stable could be kinda misleading and may not be the right choice of word to best describe Bitcoin prices or even a consolidation period because bitcoin is originally known for its volatility and its rapid price fluctuations.

When talk about Consolidation in the bitcoin market, it simply implies a period of time when the bitcoin price range are relatively narrow, but this is far from stability, it's more like a recuperation period or a pause in Bitcoin price to prepare the market for the next significant movement in bitcoin price.

Yeah for some time now Bitcoin has been moving within some zone so for now it shouldn't be considered to be stable in price, and also I no that Bitcoin is a very volatile coin but the good thing about it is that irrespective of the volatility it doesn't prevent it from going to were is intended, perhaps that's why the volatility shouldn't be regarded in terms of not being sure of the price direction, though I no that with the fluctuations of Bitcoin price now so many Young investors will actually be confused if is the right moment to keep accumulating or wait for more dip, on the contrary those are things that shouldn't be considered because for me in as much as must people are thinking that Bitcoin price could possibly drop more, I strongly believe that the price could peak any moment, so as an investor being positive is a very important key that would motivate you while you continue your Bitcoin journey.

[Kliss]

[edited out]

You are making sense, Dips are inevitable in the market and some investors are not ready to invest when the price of Bitcoin is stable, for example how we know the stability price of Bitcoin to range between $70k and above, so a few investors might actually want to see the price go below before they invest but from another view it is not always efficient most especially when the Dip the investor have in mind is far more below the stable price, he may keep on waiting for a longer time untill the price begin to surge further instead of declining to his expectations and will be left with no other option than to buy higher than expected.

We might be going through consolidation for nearly 4 months, but I doubt that "stable" is any kind of an accurate way of describing BTC prices or BTC price dynamics.

saying Bitcoin is stable could be kinda misleading and may not be the right choice of word to best describe Bitcoin prices or even a consolidation period because bitcoin is originally known for its volatility and its rapid price fluctuations.

When talk about Consolidation in the bitcoin market, it simply implies a period of time when the bitcoin price range are relatively narrow, but this is far from stability, it's more like a recuperation period or a pause in Bitcoin price to prepare the market for the next significant movement in bitcoin price.

The stability or instability of bitcoin are less concern to me as long as you are for the long-term. Investors like myself don't care about the bitcoin price stability,  rather what matters the most is believing in bitcoin potentials and growth. The main focus is on accumulating and holding for thelong-term rather than worrying about price stability. Due to its volatile in nature bitcoin can not be stable bitcoin price always fluctuate but it's long-term trends has been consistently upwards. Bitcoin's history of resilience and appreciation in value overtime provides confidence for investors, so keep your eyes on the value bitcoin provides in the long run and let the instability take care of themselves.  

[GigaBit]

[edited out]

You are making sense, Dips are inevitable in the market and some investors are not ready to invest when the price of Bitcoin is stable, for example how we know the stability price of Bitcoin to range between $70k and above, so a few investors might actually want to see the price go below before they invest but from another view it is not always efficient most especially when the Dip the investor have in mind is far more below the stable price, he may keep on waiting for a longer time untill the price begin to surge further instead of declining to his expectations and will be left with no other option than to buy higher than expected.

We might be going through consolidation for nearly 4 months, but I doubt that "stable" is any kind of an accurate way of describing BTC prices or BTC price dynamics.

saying Bitcoin is stable could be kinda misleading and may not be the right choice of word to best describe Bitcoin prices or even a consolidation period because bitcoin is originally known for its volatility and its rapid price fluctuations.

When talk about Consolidation in the bitcoin market, it simply implies a period of time when the bitcoin price range are relatively narrow, but this is far from stability, it's more like a recuperation period or a pause in Bitcoin price to prepare the market for the next significant movement in bitcoin price.

The stability or instability of bitcoin are less concern to me as long as you are for the long-term. Investors like myself don't care about the bitcoin price stability,  rather what matters the most is believing in bitcoin potentials and growth. The main focus is on accumulating and holding for thelong-term rather than worrying about price stability. Due to its volatile in nature bitcoin can not be stable bitcoin price always fluctuate but it's long-term trends has been consistently upwards. Bitcoin's history of resilience and appreciation in value overtime provides confidence for investors, so keep your eyes on the value bitcoin provides in the long run and let the instability take care of themselves.  

I am not concerned about the price stability of Bitcoin because I know it will change all the time. I'm not even worried if the Bitcoin price goes up quickly because I know I'll get my return based on what I've saved. If I can accumulate more bitcoins then I will have more profits there but as long as I can hold bitcoins I have no regrets about the price of bitcoins going up or down. Moreover, I believe in long-term holdings of Bitcoin, which makes me unlikely to get caught up in temporary price ups and downs. I think true holders of Bitcoin don't care about the price of Bitcoin.

[Jewan420]

[edited out]

You are making sense, Dips are inevitable in the market and some investors are not ready to invest when the price of Bitcoin is stable, for example how we know the stability price of Bitcoin to range between $70k and above, so a few investors might actually want to see the price go below before they invest but from another view it is not always efficient most especially when the Dip the investor have in mind is far more below the stable price, he may keep on waiting for a longer time untill the price begin to surge further instead of declining to his expectations and will be left with no other option than to buy higher than expected.

We might be going through consolidation for nearly 4 months, but I doubt that "stable" is any kind of an accurate way of describing BTC prices or BTC price dynamics.

saying Bitcoin is stable could be kinda misleading and may not be the right choice of word to best describe Bitcoin prices or even a consolidation period because bitcoin is originally known for its volatility and its rapid price fluctuations.

When talk about Consolidation in the bitcoin market, it simply implies a period of time when the bitcoin price range are relatively narrow, but this is far from stability, it's more like a recuperation period or a pause in Bitcoin price to prepare the market for the next significant movement in bitcoin price.

The stability or instability of bitcoin are less concern to me as long as you are for the long-term. Investors like myself don't care about the bitcoin price stability,  rather what matters the most is believing in bitcoin potentials and growth. The main focus is on accumulating and holding for thelong-term rather than worrying about price stability. Due to its volatile in nature bitcoin can not be stable bitcoin price always fluctuate but it's long-term trends has been consistently upwards. Bitcoin's history of resilience and appreciation in value overtime provides confidence for investors, so keep your eyes on the value bitcoin provides in the long run and let the instability take care of themselves.  

For long-term investors, Bitcoin price volatility has no effect on them. Because, no matter how volatile the price of Bitcoin is, its value is going up. While the price of Bitcoin may fluctuate temporarily, you are more likely to make a profit if you invest for the long term. In this case you can invest in DCA method. By investing in the DCA method, you will purchase Bitcoins at several prices. The average price of which will help you profit.

[AirtelBuzz]

[edited out]

You are making sense, Dips are inevitable in the market and some investors are not ready to invest when the price of Bitcoin is stable, for example how we know the stability price of Bitcoin to range between $70k and above, so a few investors might actually want to see the price go below before they invest but from another view it is not always efficient most especially when the Dip the investor have in mind is far more below the stable price, he may keep on waiting for a longer time untill the price begin to surge further instead of declining to his expectations and will be left with no other option than to buy higher than expected.

We might be going through consolidation for nearly 4 months, but I doubt that "stable" is any kind of an accurate way of describing BTC prices or BTC price dynamics.

saying Bitcoin is stable could be kinda misleading and may not be the right choice of word to best describe Bitcoin prices or even a consolidation period because bitcoin is originally known for its volatility and its rapid price fluctuations.

When talk about Consolidation in the bitcoin market, it simply implies a period of time when the bitcoin price range are relatively narrow, but this is far from stability, it's more like a recuperation period or a pause in Bitcoin price to prepare the market for the next significant movement in bitcoin price.

The stability or instability of bitcoin are less concern to me as long as you are for the long-term. Investors like myself don't care about the bitcoin price stability,  rather what matters the most is believing in bitcoin potentials and growth. The main focus is on accumulating and holding for thelong-term rather than worrying about price stability. Due to its volatile in nature bitcoin can not be stable bitcoin price always fluctuate but it's long-term trends has been consistently upwards. Bitcoin's history of resilience and appreciation in value overtime provides confidence for investors, so keep your eyes on the value bitcoin provides in the long run and let the instability take care of themselves.  

I am not concerned about the price stability of Bitcoin because I know it will change all the time. I'm not even worried if the Bitcoin price goes up quickly because I know I'll get my return based on what I've saved. If I can accumulate more bitcoins then I will have more profits there but as long as I can hold bitcoins I have no regrets about the price of bitcoins going up or down. Moreover, I believe in long-term holdings of Bitcoin, which makes me unlikely to get caught up in temporary price ups and downs. I think true holders of Bitcoin don't care about the price of Bitcoin.

We constantly see volatility in the cryptocurrency market. I have seen many times that the price of Bitcoin suddenly drops from four to five thousand dollars and then increases and doubles, maybe this is the volatility of the market. Yes that is people who invest in Bitcoin for long term don't worry about Bitcoin price going down. Rather, when they see that the price of bitcoins has fallen, they take advantage of the additional benefits and invest more bitcoins by purchasing them. Whenever an investor is worried about the fall in the price of Bitcoin, no matter how far his investment goes, the only thing in his mind is that if the price of Bitcoin has fallen, he may lose a lot of money.

Those who have these thoughts while investing may sell their investments at any time for fear of losing their money. But those who invest with the right intentions will continue to invest regardless of the volatility in the Bitcoin market until they reach their goals.

[Tungbulu]

[edited out]

You are making sense, Dips are inevitable in the market and some investors are not ready to invest when the price of Bitcoin is stable, for example how we know the stability price of Bitcoin to range between $70k and above, so a few investors might actually want to see the price go below before they invest but from another view it is not always efficient most especially when the Dip the investor have in mind is far more below the stable price, he may keep on waiting for a longer time untill the price begin to surge further instead of declining to his expectations and will be left with no other option than to buy higher than expected.

We might be going through consolidation for nearly 4 months, but I doubt that "stable" is any kind of an accurate way of describing BTC prices or BTC price dynamics.

saying Bitcoin is stable could be kinda misleading and may not be the right choice of word to best describe Bitcoin prices or even a consolidation period because bitcoin is originally known for its volatility and its rapid price fluctuations.

When talk about Consolidation in the bitcoin market, it simply implies a period of time when the bitcoin price range are relatively narrow, but this is far from stability, it's more like a recuperation period or a pause in Bitcoin price to prepare the market for the next significant movement in bitcoin price.

the good thing about it is that irrespective of the volatility it doesn't prevent it from going to were is intended, perhaps that's why the volatility shouldn't be regarded in terms of not being sure of the price direction, though I no that with the fluctuations of Bitcoin price now so many Young investors will actually be confused if is the right moment to keep accumulating or wait for more dip, on the contrary those are things that shouldn't be considered because for me in as much as must people are thinking that Bitcoin price could possibly drop more, I strongly believe that the price could peak any moment, so as an investor being positive is a very important key that would motivate you while you continue your Bitcoin journey.

The only reason why anyone would be confused by temporary fluctuations is when they consider Bitcoin for its short-term profits which is a very inappropriate approach or way to consider Bitcoin.

Bitcoin is a long-term investment and should be considered as one, if you're to reap the actual benefits of Bitcoin. Plus, when you consider bitcoin for its long-term trajectory, it helps you get rid of the emotional outburst that comes with temporary and short-term fluctuations of the market, whether there's a DIP in the market or an hike in the price, there'll be no form of panic as you won't be concerned with the temporary market status, and it'll also help one make calculated decisions when faced with situations like that.

Again, trying to time the market can be really tricky as one may not be able to accurately predict price movements so making a wrong choice can be quite easy, so to avoid making wrong choices while trying to predict thebnext price movement, it's more advisable to DCA through any market condition and HODL for the long-term.

[sotelorene]

[edited out]

You are making sense, Dips are inevitable in the market and some investors are not ready to invest when the price of Bitcoin is stable, for example how we know the stability price of Bitcoin to range between $70k and above, so a few investors might actually want to see the price go below before they invest but from another view it is not always efficient most especially when the Dip the investor have in mind is far more below the stable price, he may keep on waiting for a longer time untill the price begin to surge further instead of declining to his expectations and will be left with no other option than to buy higher than expected.

We might be going through consolidation for nearly 4 months, but I doubt that "stable" is any kind of an accurate way of describing BTC prices or BTC price dynamics.

saying Bitcoin is stable could be kinda misleading and may not be the right choice of word to best describe Bitcoin prices or even a consolidation period because bitcoin is originally known for its volatility and its rapid price fluctuations.

When talk about Consolidation in the bitcoin market, it simply implies a period of time when the bitcoin price range are relatively narrow, but this is far from stability, it's more like a recuperation period or a pause in Bitcoin price to prepare the market for the next significant movement in bitcoin price.

The stability or instability of bitcoin are less concern to me as long as you are for the long-term. Investors like myself don't care about the bitcoin price stability,  rather what matters the most is believing in bitcoin potentials and growth. The main focus is on accumulating and holding for thelong-term rather than worrying about price stability. Due to its volatile in nature bitcoin can not be stable bitcoin price always fluctuate but it's long-term trends has been consistently upwards. Bitcoin's history of resilience and appreciation in value overtime provides confidence for investors, so keep your eyes on the value bitcoin provides in the long run and let the instability take care of themselves.  

For long-term investors, Bitcoin price volatility has no effect on them. Because, no matter how volatile the price of Bitcoin is, its value is going up. While the price of Bitcoin may fluctuate temporarily, you are more likely to make a profit if you invest for the long term. In this case you can invest in DCA method. By investing in the DCA method, you will purchase Bitcoins at several prices. The average price of which will help you profit.

Perfectly said, as long as Bitcoin investment is concerned I think the best way to go about it is by investing a reasonable amount for long term and while investing for long term always ensure to have other source of income or emergency funds so that you don't disturb your investment. The stability of Bitcoin shouldn't be a problem or something to worry about cause Bitcoin is volatile in nature and I think everyone should focus more on accumulating Bitcoin and hold it. However, I feel targeting for the price of Bitcoin to dip or drop before investing is like a waste of time reason because sometimes the price will skyrocket from it stable point, just imagine those people that was waiting for Bitcoin to dip earlier this year before they invest, i believe they are regretting by now, i will urge everyone to start accumulating and holding so that we won't regret later.

[Miles2006]

[edited out]

[Edited out]

You are using the term lump summing differently from me.

From my point of view, saving extra money to buy the dip may or may not be a good strategy,  and from my point of view that is not lump summing... that is buying the dip. .there is no reason to call it lump summing merely because you are saving extra money for such buying the dip opportunities, which again may or may not be a good idea... especially for beginners who likely need to focus on stacking BTC without trying to guess about when dips might or might not come.. but sure you can do what you like in terms of holding back money to buy dips that may or may not pay off better than merely just ongoingly buying in a DCA kind of style.

There are already quite a few guys here who are coming around to understanding lump sum buying is different from buying the dip, and including that we either might come across extra money when we start to invest, or we might come accross extra money for a variety of reasons.. such as bonuses from work, inheritance, win the lottery, rearrange finances and realize that you hae more money than you thought that can be used for buying bitcoin. 

If you are combining the idea of lump summing and buying the dip, you may well not know what one or the other of those is since you are not able to distinguish them.

The same is true in terms of understanding the tradeoffs involved in regards to engaging in strict DCA versus holding some money aside for buying the dip.

I am not saying not to hold money aside, but likely there is hardly any need to hold extra money aside, especially in the first few years that you might be buying BTC, especially if you are ONLY buying through DCA and you might not be front loading your investment or lump summning from the start, so guys who might lump sum or front load from the start, may well find justification to also hold some cash aside for buying the dip and/or DCA'ing... I feel that I am repeating myself with these ideas so many times described why folks might supplement early lump summing and front loading with buying the dip and DCA but it may well might not be worth it to be saving money to buy the dip for those who are engaging in regular DCAing rather than those who front load their BTC investment.. need I give an example? of some one who might DCA $100 per week, but then if that person has $6k to invest right away, maybe that person invests $3k into bitcoin in a lump sum kind of way and then splits the other $3k into 50% buying the dip and 50% DCA..

I know that lump summing is when an investor chooses to just buy Bitcoin at once but it doesn't mean that after buying at once that someone cannot continue to DCA in other to acquire more at different prices if they have a steady cash flow since lump sum should not be that you will offload all the money you have at that material time, you can still have some reserves to take care of sudden needs pending your next income and you can also see reasons with me that lump summing is more better during a drastic DIP even though you don't continue the DCA for sometime again so you could regain the cash that you used in lump summing at a DIP from your conspicuous income that you would have used to DCA and it now stands as a reserved funds. However, a beginner may not comprehend these various strategies at the start of their investments as they will be more focused about the DCA because it is easier and doesn't allow regular monitoring of market prices. I am not trying to complicate between lump summing, buying at a dip price and the DCA but I am more concerned about lump summing only when a dip occurs and continue to DCA some other time that is for someone who have understood the activities of the market.

Just like you said, I don't want it to look like you are making repetition of yourself however it is also important for a beginner who have spent some years DCAing to know how to split their income between buying at Dip prices, lump summing and DCA. thanks for your concise explanation jayjuangee

Lump sum is a different strategy from dip buying, it’s more often to make some mistakes when accumulating but it’s best you never stop accumulating for any reason like your few examples stating after buying with huge amount during a price decline an investor can wait but, I don’t agree. An investor can use both strategy depending on their goal and financial ability because waiting is not an option mostly for newbies who have a long way to go should not see bitcoin price decline  as something they’ve been waiting for but rather an opportunity. From my perspective if an investor will stop accumulating because he/she accumulated much during the dip and they still want to wait for another decline in such case the investor is getting it wrong and why not continue with the dca but the difference is an investor can still decide to dca aggressively during the dip.