Buy the DIP, and HODL!

[icebar]

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  

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.

In terms of investment, you can invest your money in any way. Before investing here, you should understand some things well. Bitcoin is a volatile currency that can be highly bullish or sometimes it can come to a dip. If the entire money is kept in Bitcoin and the price decreases slightly, then you may regret it, so the best way is to follow the DCA method. By doing DCA, you will be protected from human pressure. You can get relief from price decreases. Before doing DCA, you must pay attention to whether you have an emergency fund. If you have an emergency fund in terms of investing in Bitcoin, that investment can be somewhat safe, but if it is not formed, then there may be a tendency to withdraw the investment at any time. Especially when people are suddenly victims of an accident or any emergency purpose. It is best to invest a part of your discretionary income in Bitcoin and set aside a backup fund for the last 3 months so that any situation can be invested in Bitcoin regularly.

[ruykeri]

I think you are right about what you said here concerning age, it plays an important role on how a Bitcoin investment should approach his investment, just as you have said already, you can't expect a 70year old Bitcoin investor still planning on holding for more than 10 years because he knows that he has a limited time, unlike those that are in their 20's.
But those in their 20's don't have to buy only the dip, they just have to buy anytime their discretionary income is available, but if their is a dip in the market they might seize the opportunity and buy aggressively if they have their reserves funds to do so, because they have quite a lot of time to reap from their investment when bitcoin has risen up to a million dollar or more.

No matter the age, it's still very wise to invest in Bitcoin regularly when you can and use market dips as a chance to buy more if you have extra funds set aside cos nobody knows how long they have. Someone in their 20's might not necessarily live longer than someone in their 70's. What really matters is the goal the person aims to achieve, his/her financial situation, and how much risk they are willing to take

No matter your age, you can still invest in Bitcoin because the market is always open to anyone who wants to do so. Even with retirement funds, you can properly make a plan to invest in Bitcoin, and people are getting wiser because they are taking advantage of every Bitcoin opportunity they get. If you are retiring, it is even better to invest in Bitcoin and then use your pension as emergency funds, because it will help if you take things seriously.  Since money will be coming in each month, planning is necessary. because your financial situation is so everything, because other people have more opportunities to invest.

In fact, the Bitcoin market is always open to everyone. Anyone can invest according to their wishes and convenience whenever they want. There is no age limit here. Just as a young person can invest from his income, an older person can invest in Bitcoin from his pension or a savings fund, or if he has any discretionary income at that time, he can invest in Bitcoin from there. However, I generally see Bitcoin as a future security asset. Now a person aged 50 to 60 has earned his income through hard work all his life. If he has invested in Bitcoin for 10 to 20 years. At the end of the day, if he reaches the over-accumulation stage, then at that time he has two options. If he wants, he can sell some Bitcoins through sustainable withdrawal and meet his expenses, he can live comfortably without any financial pressure. Or if he has discretionary income in retirement, he can invest it in Bitcoin. For the financial security of his future children.

[ultrloa]

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  

Investing in Bitcoin is a personal decision and whatever method you prefer to use whether buying at once through Lump sum or buying consistently bit by bit with DCA is your choice. Using either of the above mentioned strategies doesn't gives you any guarantee in your investment. What matters the  most is that you have a Discretional income to buy and hold for the long term. However buying consistently with DCA doesn't gives you more profits than an investor that invested with lump sum strategy,the advantage of using DCA strategy is that you can be buying bitcoin consistently from your discretional income regardless of the price and the amount .For instance  if your weekly  Discretional income is $10,you can split it in to half, 50% can be used to build your emergency funds and reserve fund to protect your investment while the remaining 50% should be reimbursed into buying Bitcoin consistently for the long term.

Those thing are fine whatever strategy they used as long as their intention is to buy and do long term on Bitcoin.

What's actually not good here is if they have doubts on their decision and try to engage on waiting for the dip before they buy since that might give them a problem.

Confidence and knowledge is important here so they better trust Bitcoin then be consistent on what they do especially for their accumulation so that they can possibly gain more better result. Nothing will happen if they have doubts in their mind and do nothing.

Common strategy been suggested is DCA so if they are new they better explore this option since there's good chance that they would love this strategy. It will matter now on how much and they should consider the amount that they can afford to spend and don't go over with their budget so there's no conflict that can affect their investment and budgeting to other important things will happen.

[iamsange]

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.

[Jostern]

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 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 

No one can really answer the question for you.

Let's say that you are pretty new to bitcoin and you had been getting started by investing from your income for the past two months at a rate of $100 per week, and so as you are getting used to investing $100 per week, you start to look at other funds that you could put into bitcoin, and yeah, if you have $5k or $10k available then you have quite a bit of money that you could invest at once or you could defer it by time (DCA) or defer it by price (buy on dips that might not happen).

Surely you should consider all three categories of 1) buy right away, 2) defer by time DCA and 3) defer by price, buy on dips.

you could divide the amount into three and use all three parts, or maybe you consider that you are already investing $100 per week from your income, so you will only divide your lump sum into two parts.. 1/2 to buy right away and the other half for buying dips.. Dips that might not happen.

So for sure you run a risk that the price might go up if you do not buy right away, but then if the price drops then if you have no money to buy then you might feel stress from that, so you might feel better to hold some money back for buying dips.

I cannot answer for you.

There can be some people who come to bitcoin and they purposefully might plan their next 6 months with a budget for investing and sure their budget may depend on if they have lump sum funds and/or if they just have income from their periodic pay.. so they might combine the two in order to figure out their 6 month budget, and they might not want to overly defer if they are worried about the BTC price going up and if they don't have very much bitcoin.  On the other hand, if they think that the price might be coming down then they might hold back either for buying on dips and/or to DCA their buys.

Some guys might know that through the year, they may have 2-3 times per year that they receive extra pay, so that money can be treated as a lump sum when it comes in and considered in the three categories.. however you like.

Many times people think of DCA as a way of deferring by time, but really  if all that you have available is the income as it is coming in, then you are not deferring by time, you are investing as much as you are able to invest whenever you get paid... Of course, sometimes you have to make sure that your expenses are sorted out before you can determine how much you have in your discretionary funds and when that money is freed up and/or available for buying bitcoin.

I personally think that guys should be building their back up funds as they are investing, so it can take some time to make sure that your bitcoin investment and your back  up funds are at least 3 months of your expenses.. so if a guy invests everything into bitcoin without an emergency fund, then the bitcoin serve as an emergency fund, which is really risky in terms of potentially entering into a situation where the guy has to sell some or all of his bitcoin at a time that is not of his own choosing and mostly due to his own errors in not establishing and/or maintaining a sufficiently size quantity of back up funds that may well need to be in local cash..some form that is generally available and liquid and not too volatile.

You’re absolutely right, Many times, in most cases people do things on how they feel comfortable when it comes to investing in Bitcoin, just considering how I came be able to manage my Bitcoin investment and how I can be able to continue accumulating for a long term purpose, no body could really determine how someone can possibly choose to buy and accumulate bitcoin because we might not know which ways that would be beneficial and quite sustainable in a long term investment, there are people as an investor, who can decide to be buying bitcoin little by little on a gradual process depending on their discretionary income, I might decide to be accumulating $150 on a weekly basis after paying and taken care of all my expenses that could definitely be a way of accumulating and trying to sustain my investments and it literally doesn’t mean that in a long terms that profit might not be determined and there are also some wealthy people who comes into Bitcoin that would want to use the lump sum by buying with huge amounts because they have the money and they feel comfortable to do it on a weekly or monthly basis and also try to front load their bitcoin portfolio which is also good for them, and still that doesn’t stop me to apply some financial management to try and install some financial measures to help provide more discretionary amounts to buy and increase my amount of accumulation from $150-$200 on DCA or probably more depending on the amount of that discretionary income. Some people might feel like if they have some huge amount of money available using DCA would be a time wasting for them, while others might feel comfortable by dividing the money and accumulating it little by little so it could still be a personal decision and choice.

Perhaps there are some investors who are trying to start investing in bitcoin and I have some huge amount of money available for buy and accumulating bitcoin, probably an amount of $20000 available to buy bitcoin, well I could decide to approach a DCA method, where I can decide to buy little by little $200 on a weekly basis which is not totally a bad idea, so far as you can be able to keep the money and not use it for other projects.
There are also some folks who will have that same amount of money and wouldn’t want to buy little by little, they would definitely want to approach a lump sum to buy and keep accumulating by using all the &20000 all at once, whichever way it goes it comes to the same goal of buying and accumulating bitcoin, I would not say DCA is bad, the purpose of DCA is for people who doesn’t have large huge amount of money to invest at once so it could be possible for them to buy and accumulate fractions by fractions, lump sum is for people who have a huge amount of money that wants to invest them all at once and still keep buying and accumulating, so whichever way I feel comfortable to invest and depending on the discretionary amount at my disposal I’m definitely good with all methods.

[ChocolateBitcoinK]

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.

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.

[Lembo69]

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  

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.

In terms of investment, you can invest your money in any way. Before investing here, you should understand some things well. Bitcoin is a volatile currency that can be highly bullish or sometimes it can come to a dip. If the entire money is kept in Bitcoin and the price decreases slightly, then you may regret it, so the best way is to follow the DCA method. By doing DCA, you will be protected from human pressure. You can get relief from price decreases. Before doing DCA, you must pay attention to whether you have an emergency fund. If you have an emergency fund in terms of investing in Bitcoin, that investment can be somewhat safe, but if it is not formed, then there may be a tendency to withdraw the investment at any time. Especially when people are suddenly victims of an accident or any emergency purpose. It is best to invest a part of your discretionary income in Bitcoin and set aside a backup fund for the last 3 months so that any situation can be invested in Bitcoin regularly.

Every investor should have an emergency fund. Because if you do not have an emergency fund, your investment will be at risk. Not only the investment, but if you are in danger, you will be forced to regret why you did not have an emergency fund. Therefore, have an emergency fund before you regret. An emergency fund is your friend in danger. Those who are making or want to make investments, keep some part of their income for the emergency fund. No matter how you invest, be it DCA or for a long time, keep an emergency fund. After investing, you should not lose your investment due to any accident or illness. Danger can come at any time in people's lives, so you can solve the danger with an emergency fund without getting caught up in the danger.
And you can adopt the DCA strategy to deposit your Bitcoin. The DCA strategy will help you deposit your Bitcoin step by step.

[JayJuanGee]

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.

Your examples are not bad,, yet you can have a variety of scenarios in terms of which way the BTC price might move in any particular period, and yeah of course, we don't know bitcoin price moves in advance, and newbies likely need to be erroring on the side of not watching price and largely getting a stake in bitcoin, depending on their other assets/investments, too.

If you have an income and you are already DCAing with a portion of that, such as $100 per week as I had given in my earlier example, then you have some money coming into bitcoin no matter what for however long you keep that set up and going.

If you have $5k to $10k, you could invest parts of it lump sum right away, yet even the parts that you would defer by DCA or by buying dips, you would set up the parameters, the amounts and the time, so the DCA could be over 5-6 weeks or it could be over 5-6 months or some other timeline, and if the BTC price generally trends down during the period of your DCA you are better off for deferring yet if the BTC price generally trends up during your period of DCAing you would have had been better off to buy right away with that portion.  You cannot really know price direction with certainty, even though you could have some hunches that might end up being or not being correct.

Similar with the buying on dip, you can set the total amount that you will dedicate for buying on dip and then increments of dip needed for each and the quantity to buy for each dip, and sure you run the chance of the dip not happening and/or not happening to your expectations.. you could have a portion that buys $200 for every $2,500 price drop for 10x buy orders going down $25k (that would be $2k dedicated for that).. but then you might have regrets holding so much money to buy to dips that do not end up happening.

Besides also figuring out how much to put in your emergency funds, guys will sometimes also have dilemmas about holding back some amount for buying on dips, so maybe instead of buying $100 per  week, you buy $75 per week and hold $25 per week for buying dips... but your $25 per week might build up quite a bit, yet you still have to figure out how much of a dip you need to use the dip buying money for buys.

There are trade offs for any of the techniques, and many of us have participating in this thread have concluded that it is better for newbies to error on the side of buying more and regularly rather than employing waiting techniques and as your bitcoin holdings grow, the size of your bitcoin holdings and also the strength of your cashflow management systems might help to inform you both in terms of changing your bitcoin buying/accumulating techniques and/or changing the level of your aggressiveness.  Usually it is not good to come out aggressive because you might accidentally act too aggressively, yet the more experienced you are in cashflow management and investment might help to justify higher levels of aggressiveness without devolving into gambling behaviors.

If you really want to be a bitcoin investor then you should be striving to employ investing techniques not trading and/or gambling techniques.. and if your timeline is 4-10 years or longer, your persistence, prudence and ongoing buying is likely going to measure where you are at 10-ish years down the road rather than a few of your smaller investments along the way, even your first few buys (whether lump sum or DCA) since I would imagine that you would be ongoingly buying for several years , maybe 4-10 years or more of ongoing buying, rather than putting in all of your investment at one time and then just sitting on it... yet those are choices in regards to figuring out if you have some target level of how much you want to put in or how much you think is enough to have had put into bitcoin as compared with other places that you might put it.

I think you are right about what you said here concerning age, it plays an important role on how a Bitcoin investment should approach his investment, just as you have said already, you can't expect a 70year old Bitcoin investor still planning on holding for more than 10 years because he knows that he has a limited time, unlike those that are in their 20's.
But those in their 20's don't have to buy only the dip, they just have to buy anytime their discretionary income is available, but if their is a dip in the market they might seize the opportunity and buy aggressively if they have their reserves funds to do so, because they have quite a lot of time to reap from their investment when bitcoin has risen up to a million dollar or more.

No matter the age, it's still very wise to invest in Bitcoin regularly when you can and use market dips as a chance to buy more if you have extra funds set aside cos nobody knows how long they have. Someone in their 20's might not necessarily live longer than someone in their 70's. What really matters is the goal the person aims to achieve, his/her financial situation, and how much risk they are willing to take

No matter your age, you can still invest in Bitcoin because the market is always open to anyone who wants to do so. Even with retirement funds, you can properly make a plan to invest in Bitcoin, and people are getting wiser because they are taking advantage of every Bitcoin opportunity they get. If you are retiring, it is even better to invest in Bitcoin and then use your pension as emergency funds, because it will help if you take things seriously.  Since money will be coming in each month, planning is necessary. because your financial situation is so everything, because other people have more opportunities to invest.

Of course we can use various funds as our emergency funds, yet we still have to think in terms of the liquitity of such funds (how accessible are they) and the volatility of such funds... There is value in a certain amount of cash, such as maybe even a couple of months of physical cash, yet sometimes there could be big ticket expenses in which the money is needed immediately and other times there might be an ability to absorbe extra expenses over a few months, even though presumptively during some periods your expenses would be greater than your income.  The more and more that we are building our wealth, then the more that we might have various emergency funds held in various assets, yet we still might not be able to get away without holding at least a couple of months of cash without unduly putting ourselves and/or our bitcoin at risk of being tapped into at a time that is not of our choosing...

and for sure, there is going to be variability based on how much wealth a person might be building and the extent to which he wants to keep some of that wealth outside of bitcoin and to potentially be serving more than one purpose.  By the way pension funds are usually not available to cash into, even though other forms of retirement funds might be, but there could be penalties to use those kinds of funds as if they were emergency funds when they might not serve as well for immediate emergencies largely due to their accessibility... sometimes emergencies or short falls of cash, might only last for a few weeks or maybe a couple of months, like a car accident or your roof falling in.. and you might need the money right away in order to not lose more.. and if you don't have mommy or daddy to fall back on.. (or some other alternative way of getting money, including the use of debt), then you have to come up with the resources in a short period.

Even with the historical performance of bitcoin people are still wasting time to invest in bitcoin, people often give unnecessary excuses, for things they don’t fully understand.

To my understanding, I don't think many people are concerned about the risk factor of bitcoin, some are very aware that it has little to no risk compared to shitty coins but you'll still see them investing on shitty coins why? Lack of patience, It simply because they're more concerned about the time frame of holding, some can't wait to start profiing and taking their profits sooner than later.

 To such people, they believe that shitty coins could give them quicker profits and won't mind whether it's more riskier than investing on Bitcoin but it mostly end with regrets cause shitty coins would always do shitty things and In return, drag them back to bitcoin investment and by then they would've missed out on several opportunities coupled with the time and money wasted on shitty coins.

All you have said is correct but I want to add that most new investors start with shitcoins reason being that shitcoins recruit people to shill their scheme on social media thereby attracting many people to buy their shitcoins at a promise of making exponential profits. This is how they get trapped by shitcoiners and they usually learn the hard way. I was a victim of that as I did not start with bitcoin but shitcoins that cost me money and pain. It was when I joined this forum I began to learn the right things to do and about bitcoin, the DCA method, the emergency fund concept and other great this that are helping me today. I just regard those mistakes a learning process and I try not to dwell in the regrets of the past but face the future with optimism because there is never a wrong time to start investing in bitcoin.

New investors that started their bitcoin career from this forum are indeed lucky because this place will equip them with the right information from the beginning thereby saving them time and money and enabling them meet their bitcoin accumulation goals earlier. The information available in this forum is all that is needed to achieve success in bitcoin investing, hence they should be taken seriously.

Let's say that you had an ability to invest $4k when you got started, and then another $100 per week, so maybe you got started in 2020 (two years before your forum registration) and you invested your $4k and your $100 per week into shitcoins, so after around two years, you had invested around $14k into shitcoins that could have had been invested into bitcoin, and maybe you were able to recover that and redirect that towards bitcoin in and around April 2022 after you registered on the forum.. .. . so you maybe you were not able to completely transition right away and transfer your  shitcoins into bitcoin, but little by little you might have have redirected your funds into bitcoin and then maybe even figure out ways to increase your weekly investing to $200 per week - especially after building up your cashflow management and your back up systems and practices.   

So in many senses there can be a lot of financial and psychological comfort to recognize yourself to be building on solid grounds and not on a bunch of marketing fluff that may or may not pump into the future in a way that allows you to get out prior to their rug pulling you or even some of those shitcoins and their projects will crash and crash and just continue to crash without really knowing if they might recover at some point.. and even their recoveries might not be built on anything other then their further nonsense pump that is not really based on anything meaningful.

Sometimes it can take a bit of time to transition into bitcoin and to truly remove that trading/gambling/shitcoining mentality with a meaningful commitment to bitcoin, and sure, I have not been opposed to guys continue to dabble in shitcoins, trading and/or gambling with some relatively small portion of their bitcoin holdings, such as no more than 10%, yet it can be a slippery slope to stay in shitcoins and/or trading in any kind of way, so sometimes it may well be a lot better to change your mentality and just say no to shitcoins/trading and focus exclusively on bitcoin.. maybe for at least a whole cycle or more before even considering shitcoining and/or trading, and surely many guys who focus on bitcoin for a whole cycle or more, they might not even have any further inclinations to shitcoin and/or to trade and/or to put their well earned (well built) stack of bitcoin at risk.. by diverting it into unnecessary extra risk-taking.

[Sim_card]

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.

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.

No doubt that DCA is the best method to accumulate bitcoin because of its effectiveness and efficiency in keeping your bitcoin accumulation ongoing consistently and persistently overtime. However, if you have accumulated bitcoin for let say a circle, there is nothing bad for you to mix your DCA with other methods which is lump sum and buying at the dip privided the didn't stop your ongoing DCA.

You can use use your reserve funds to buy at the dip whenever there's a dip and lump sum whenever you have  extra cash that came in which you don't expect and have no plans on. This will boost up the size of your bitcoin faster and make you reach your bitcoin target faster than if you are stock to only using DCA accumulation method.

[HustleZ]

If you have $5k to $10k, you could invest parts of it lump sum right away, yet even the parts that you would defer by DCA or by buying dips, you would set up the parameters, the amounts and the time, so the DCA could be over 5-6 weeks or it could be over 5-6 months or some other timeline, and if the BTC price generally trends down during the period of your DCA you are better off for deferring yet if the BTC price generally trends up during your period of DCAing you would have had been better off to buy right away with that portion.  You cannot really know price direction with certainty, even though you could have some hunches that might end up being or not being correct

Yes you are correct. If a person has a large amount of money eg $5k to $10k then one should lump sum some.of it while leave some To DCA so that DCA smoothens the volatility out for the lump summed amount. But if a person has less lets say $1k then he should Just stick to DCA and Invest little by little because that amount isnt much to lump sum. Anf if you lump sum it then theres a high chance a person not lose but lessen his profit amount percentage. So if you have large amount of money some should be lump summed while other DCAed and if you have a small sum then you should focus more on DCA. But there should be a fund set aside so you can still Lump sum if there is a deep retrace.

[SmartCharpa]

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.

[kanftka]

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  

Investing in Bitcoin is a personal decision and whatever method you prefer to use whether buying at once through Lump sum or buying consistently bit by bit with DCA is your choice. Using either of the above mentioned strategies doesn't gives you any guarantee in your investment. What matters the  most is that you have a Discretional income to buy and hold for the long term. However buying consistently with DCA doesn't gives you more profits than an investor that invested with lump sum strategy,the advantage of using DCA strategy is that you can be buying bitcoin consistently from your discretional income regardless of the price and the amount .For instance  if your weekly  Discretional income is $10,you can split it in to half, 50% can be used to build your emergency funds and reserve fund to protect your investment while the remaining 50% should be reimbursed into buying Bitcoin consistently for the long term.

Those thing are fine whatever strategy they used as long as their intention is to buy and do long term on Bitcoin.

What's actually not good here is if they have doubts on their decision and try to engage on waiting for the dip before they buy since that might give them a problem.

Yeah exactly, that is the trap a lot of people fall into.. They sit there waiting for that perfect dip and before they know it, the price has already moved higher and they are still stuck watching... Then would actually make them start overthinking, hoping it comes back down, but most times it does not drop to the level they expect. That constant hesitation could just makes you miss opportunities. It is way better to just stick with your plan and keep buying gradually without worrying too much about timing the bottom…
Nobody can predict the market, but steady accumulation using your proper DCAing will always pay off in the long run, compared to sitting and waiting forever….

[Loyang]

If you have $5k to $10k, you could invest parts of it lump sum right away, yet even the parts that you would defer by DCA or by buying dips, you would set up the parameters, the amounts and the time, so the DCA could be over 5-6 weeks or it could be over 5-6 months or some other timeline, and if the BTC price generally trends down during the period of your DCA you are better off for deferring yet if the BTC price generally trends up during your period of DCAing you would have had been better off to buy right away with that portion.  You cannot really know price direction with certainty, even though you could have some hunches that might end up being or not being correct

Yes you are correct. If a person has a large amount of money eg $5k to $10k then one should lump sum some.of it while leave some To DCA so that DCA smoothens the volatility out for the lump summed amount. But if a person has less lets say $1k then he should Just stick to DCA and Invest little by little because that amount isnt much to lump sum. Anf if you lump sum it then theres a high chance a person not lose but lessen his profit amount percentage. So if you have large amount of money some should be lump summed while other DCAed and if you have a small sum then you should focus more on DCA. But there should be a fund set aside so you can still Lump sum if there is a deep retrace.

If I have some money as you said. In that case, I will keep that amount in a separate fund to buy aggressively during the decline. And we will continue to buy continuously with discretionary income. Because

An investor should have a main goal such as to continue buying continuously until his portfolio is built and to hold their holdings until the end of the period. In between, there are many types of declines in the market. Many people buy aggressively during that time. I think it is very good to buy aggressively during that time. But how much aggressive to be aggressive depends on their financial situation. But if a person keeps money aside for aggressive buying, then he can buy aggressively with the entire amount of money he has deposited.

[Grace333]

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.

At the end of the day, it really comes down to what someone is comfortable with and what they can stick to without stressing themselves out.. This DCA is just easy to follow and keeps you consistent, which honestly matters more than trying to chase the so called perfect strategy or timing the market…

[Tonimez]

If you have $5k to $10k, you could invest parts of it lump sum right away, yet even the parts that you would defer by DCA or by buying dips, you would set up the parameters, the amounts and the time, so the DCA could be over 5-6 weeks or it could be over 5-6 months or some other timeline, and if the BTC price generally trends down during the period of your DCA you are better off for deferring yet if the BTC price generally trends up during your period of DCAing you would have had been better off to buy right away with that portion.  You cannot really know price direction with certainty, even though you could have some hunches that might end up being or not being correct

Yes you are correct. If a person has a large amount of money eg $5k to $10k then one should lump sum some.of it while leave some To DCA so that DCA smoothens the volatility out for the lump summed amount. But if a person has less lets say $1k then he should Just stick to DCA and Invest little by little because that amount isnt much to lump sum. Anf if you lump sum it then theres a high chance a person not lose but lessen his profit amount percentage. So if you have large amount of money some should be lump summed while other DCAed and if you have a small sum then you should focus more on DCA. But there should be a fund set aside so you can still Lump sum if there is a deep retrace.

What you refer to as large amount of money could be another person's DCA weekly or monthly allocation. So referring to $5k as large amount of money is somewhat misleading. What matters is understanding your goal and moving after it at your own level. There are low income Earners who DCA weekly or monthly with amount not more than $20 while there are still elite investors who DCA weekly or monthly with over $1k. Both low income Earners and elite investors have same responsibility, buying continuously to hold and chasing their accumulation target. This is why you have to analyse your income and allocate what you can be able to hold to bitcoin investment. If you measure your speed with someone else's speed, you may loose all your bitcoin stash. Aggressive buys is good when you have additional discretionary income during dips instead of going beyond your capacity during dips.

It is very important to avoid noise from outside and focus on your DCA approach. This will give you the soft play through which you can be able to HODL for a very long time. Going for dips when you are not financially ready for aggressive buys just because it's dip is a bad decision which can cause a harm to your portfolio.

[Tungbulu]

Along with Bitcoin investment and immediately after forming an emergency fund, you have some more precautionary measures, if a person calculates and spends his daily expenses, then at the end of the month he will definitely save some money. And you can add this savings to Bitcoin investment by giving money and you can increase it even more by adding it to your current investment.

Sometimes someone doesn't need to do so many different daily tasks to increase there ongoing investment but instead they can use what they are getting from one to achieve what they intend because with determination it doesn't matter the amount provided that there would almost be a discretionary income for them after every measures of satisfying spending demands, because it will definitely be unhealthy when someone is going beyond the limits at which there strength could carry them in other to increase accumulation because if the person breakdown because of non resting it affects the consistency they were even maintaining on Bitcoin so actually the conclusion is that you can choose to increase your Bitcoin investment if there is an availability of more resources but don't over labor yourself for multiple job when you are already doing well with your current amount are putting in Bitcoin regularly.

Not everyone depends on one type of income. Some people earn only by physical labor, some people have online business, service sector or many other types of income. So if someone has physical and mental ability, then he can earn any other type of income if he wants. If he can increase the income path, it is definitely beneficial. For example, if someone's monthly income is $1000 and if he spends $700, then his discretionary income is $300. From here, if he wants, he will invest 200 per month in Bitcoin. Now if he creates a second source of income, if it is also $200 per month , then it will also remain as his discretionary income. And if he wants, he can invest the amount of his investment in Bitcoin, the previous $200 and the second income $200 together, to $400 in the DCA method. In this way, he will be able to achieve the over accumulation stage much faster than before. Apart from this, if he has only one source of income, then after losing his job, he may face major financial problems. If he does not get a new job very soon. So I think alternative income should be arranged.

You are correct that alternative income can give more resilience in regards to shortage of cashflow and also in terms of having more discretionary income to be able to invest in bitcoin. At the same time, there sometimes can be situations in which loss of income and/or increases in expenses come from inabilities to work, which is part of the reason that an emergency fund would cover some circumstances that an extra job (extra source of income) will not cover.

Of course one the powers of building an investment to a certain high standard, the investment might at some point serve as a source of income, yet we also want to be careful not to have to start drawing from our investment prior to their getting built up to a sufficiently high enough level... and so persons without sufficient cash backups will end up drawing upon some or all of their investments, which might be tolerable to a certain extent, even though none of us should be wanting to end up selling any of our bitcoin at a time that is not of our own choosing, yet if our bitcoin is our last source of funds, and we have exhausted all other funds, then at that point we no longer have a choice.. and sometimes keeping some reasonable sized back up funds will be enough to help us to avoid tapping into our bitcoin at a time that was not at our own convenience.

✂️✂️✂️✂️

Personally, I think that a common mistake that poor people make is that they get overly excited about investing in bitcoin and then they end up getting overly aggressive because they want to put as much of their money to work as possible, so they end up erroring on the side of getting side income and secondary income rather than maintaining a proper amount of back up funds. .and they think that their hustle and their ability to find new work is going to save them from any of their cashflow fluctuations and the various surprises that sometimes come about, and surely poor people do not tend to have a lot of resources, so when they fuck up they cannot go crying to mommy and/or daddy to bail them out like a richer person might have mommy/daddy as a resource, and also some other various kinds of back up funds that they don't even think about.. and poor people don't have those kinds of back up funds and/or systems in place, so they purposefully have to spend time, money and effort to make sure that they are maintaining a sufficient enough of a cash cushion so that they don't have to cash out of any of their bitcoin at a time that is not of their choosing.

Another thing that poor people do is that they might get themselves into a pickle or even use some or all of their bitcoin as their emergency fund, and  they conclude that it is not a problem that they are using their bitcoin as an emergency fund, because the bitcoin is "in profits."  Their bitcoin might be like 3x or more in profits and they are more than  eager to cash out some of it, so they don't even have enough patients to keep on accumulating since their bitcoin might even be the most wealth that they could have ever imagined building up, so they are kind of shell shocked and not able to handle themselves in regards of really having a lot of wealth building up and being able to control themselves in terms of not spending it and making sure that they have adequate systems in place so that they don't need to touch it at all, even if their bitcoin is in profits and even if the value of their bitcoin is bouncing around in price and going up and down and they wrongly conclude that they can catch it at a peak and then buy back cheaper.. so they get too greedy for their own good.

Financial discipline and planning is indeed for every investor, especially for individuals with limited resources. As this can potentially help to strike a balance between investing in assets like Bitcoin and simultaneously maintaining a sufficient emergency fund.
Most poor folks sure do often certain challenges like having insufficient financial safety nets thereby having absolutely nothing solid to fall back on whenever there's an emergency or financial need, and this is the reason why it's important for them to prioritize building a solid emergency fund and other backup funds as this can potentially serve as a cushion to protect them whenever an emergency surfaces and prevent them from actually using their investment as a source of cash to cover for financial needs.

The phenomenon that you also described about folks being overly excited about investing in Bitcoin is also very much understandable too, because Bitcoin offers the potential for significant gains and this can be very enticing sometimes, but even in the midst of the excitement, it's crucial for investors to always stay calm and maintain a level head, because that's the only way they can be able to focus on the long term financial potentials and stability of the asset.

When folks depend on their Bitcoin portfolio as an emergency fund, the outcome becomes very problematic, regardless of the fact that they're in profits, because it'll require them to sell off some portion of their stash to cover for that urgent need, and since the market can be very volatile, it'll potentially lead to significant fluctuations in the value of your Bitcoin, thereby making it difficult for one to know precisely when is the right time to sell.

Your point about the importance of being patience and having self control is also well noted. In order to successfully build wealth, it's crucial to prioritize discipline and patience and a well thought out strategy, as these are the key to success, especially when dealing with assets as volatile as Bitcoin. One must prioritize long term financial goals over short term gains, which is often the reason why most investors end up making impulsive decisions. By acknowledging these major red flags and sorting for steps towards mitigating those challenges, individuals put themselves in a better position to better navigate those challenges of Investing in Bitcoin and focus on their long term goals to build a more stable financial foundation.

[Jewan420]

In between, there are many types of declines in the market. Many people buy aggressively during that time. I think it is very good to buy aggressively during that time. But how much aggressive to be aggressive depends on their financial situation. But if a person keeps money aside for aggressive buying, then he can buy aggressively with the entire amount of money he has deposited.

We should never wait to buy. There is nothing wrong with being aggressive in investing, but waiting to be aggressive can be a bit of a misstep. The Bitcoin market is very volatile, so it is very difficult to say when the market will move in which direction. When you wait for a bear market or wait for a DIP, you may miss buying opportunities or your money may be wasted. You should, as soon as you have prudent money, buy Bitcoin as much as you can with that money and deposit it in your holdings.

We should not wait for a specific market time to start investing or to be aggressive in investing. You should keep buying and depositing Bitcoin regularly. You can definitely enjoy every moment of the market. You do not have to wait for a DIP or a collapse.

[IceLincoln]

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.

Good analysis and calculations HustleZ, You’re very practical in your learning nice attitude. This will further prove to some persons here who doubt the DCA method and think it’s not the best. You see that it provides you with more opportunities (some of your buys might fall into a dip period and you get to accumulate more)and you also get more profits.
Yes, there are many ways to reach our goals but it’s important to know and follow the best one, let this sink in.
Lump sum might have a period it’s a better strategy that is during the dips but DCA method is best everyday.

[JayJuanGee]

I think you are right about what you said here concerning age, it plays an important role on how a Bitcoin investment should approach his investment, just as you have said already, you can't expect a 70year old Bitcoin investor still planning on holding for more than 10 years because he knows that he has a limited time, unlike those that are in their 20's.
But those in their 20's don't have to buy only the dip, they just have to buy anytime their discretionary income is available, but if their is a dip in the market they might seize the opportunity and buy aggressively if they have their reserves funds to do so, because they have quite a lot of time to reap from their investment when bitcoin has risen up to a million dollar or more.

No matter the age, it's still very wise to invest in Bitcoin regularly when you can and use market dips as a chance to buy more if you have extra funds set aside cos nobody knows how long they have. Someone in their 20's might not necessarily live longer than someone in their 70's. What really matters is the goal the person aims to achieve, his/her financial situation, and how much risk they are willing to take

No matter your age, you can still invest in Bitcoin because the market is always open to anyone who wants to do so. Even with retirement funds, you can properly make a plan to invest in Bitcoin, and people are getting wiser because they are taking advantage of every Bitcoin opportunity they get. If you are retiring, it is even better to invest in Bitcoin and then use your pension as emergency funds, because it will help if you take things seriously.  Since money will be coming in each month, planning is necessary. because your financial situation is so everything, because other people have more opportunities to invest.

In fact, the Bitcoin market is always open to everyone. Anyone can invest according to their wishes and convenience whenever they want. There is no age limit here. Just as a young person can invest from his income, an older person can invest in Bitcoin from his pension or a savings fund, or if he has any discretionary income at that time, he can invest in Bitcoin from there. However, I generally see Bitcoin as a future security asset. Now a person aged 50 to 60 has earned his income through hard work all his life. If he has invested in Bitcoin for 10 to 20 years. At the end of the day, if he reaches the over-accumulation stage, then at that time he has two options. If he wants, he can sell some Bitcoins through sustainable withdrawal and meet his expenses, he can live comfortably without any financial pressure. Or if he has discretionary income in retirement, he can invest it in Bitcoin. For the financial security of his future children.

You are both contradicting yourself ruykeri and you are not really saying anything.  It is like you don't understand the meaning of reaching a state of overaccumulation.

Once you reached such a state, you don't need to accumulate more, unless your goal is to reach even a higher overaccumulation status, and sure that is possible, and sure people have choices to do whatever they like...

There are people who purposefully choose to target higher and higher levels of ability to live off of their wealth, yet it may or may not make sense, and perhaps sometimes we need to give some examples.

Let's say that a guy in his early 40s, had been accumulating bitcoin for around two cycles, and he started out with an income of $30k, and his age was mid-30s when he started, and he increased his income to around $50k, and perhaps he started out investing into bitcoin by putting in around $10k from his various other investments and also at around $100 per week with various increases his weekly bitcoin investment amount to $250 per week and maybe he also gets bonuses 2-3 times a year (or somehow gets some extra cash) of maybe anywhere between $800 and $2,500 depending on the reason for the extra money, so then he tends to shore up his investment or his cashflow or to take care of some of his expenses or other desires that he has in terms of consumption.

So maybe in 2017 when he started in bitcoin, he got around 3 BTC for his initial $10k, and maybe his DCA over the past 8-ish years had resulted in around $80k invested and around 8.4 BTC.  Perhaps his various bonuses had allowed him to buy another 0.8 BTC for around $20k invested.

So in total up until now, he had invested around $110k into bitcoin, which is more than 2x his current income level, which has resulted in his accumulating 12.2 BTC.  12.2 BTC has a current market price of around $1.4 million, yet more importantly, its 200-WMA value is $629.2k which largely means that he could withdraw at $62.9k per year in a sustainable way and to quit his job and do whatever he wants at a greater income level than his current working income.  Maybe he is expecting another 3-4% per year raise in his income, so he accounts for those kinds of work-satisfaction matters.  Initially, he was thinking that he wanted to be able to withdraw at a rate that is around $80k per year, and that would be enough for him, and even though right now he is close to that level, he also can calculate and see that with his current bitcoin stash, he is already likely to be exceeding his target income level of $80k per year before the end of the year (going by the 200-WMA valuation and its future projected going up level).

So then he is faced with a question of continuing to accumulate more bitcoin and/or just letting time pass without withdrawing from his bitcoin and the level of his ability to withdraw is going to continue to go up, even without his having to add more bitcoin to his stash.

So we may well get back to your initial proclamation ruykeri that relates to at what point does the guy have enough bitcoin, and what purpose is he serving to continue to want more even when he might have already set his accumulation target but then perhaps he was realizing that he was reaching his target faster than he had expected.  Even if he doubles his income requirement to $160k, he is likely to be at that level of sustainable income from his BTC by early 2028, even if he does not accumulate any more BTC beyond his current BTC stash of 12.2 BTC.  

Part of my point is that at some point our hypothetical guy has enough bitcoin or more than enough bitcoin and we should work with that, yet if we keep changing our goal and wanting more and more and more, then we might need to consider why we are doing such a thing. Surely I understand that guys who are younger might not really know how much they want or need so they might not really have a top goal, yet we can see that sometimes we might also start to enjoy the fruits of our bitcoin investment and to profit from our bitcoin investment at an earlier stage than expected, yet some guys want to continue to work or maybe they look for better work since they have more options that include their option to choose not to work since their bitcoin is able to sustain their lifestyle at and above their current payrate or maybe even their anticipated future payrate..  and no matter what, they become empowered to have options regarding both whether to work and/or if they might choose to do a different kind of work that they find more enjoyable and suitable to them, even if they pay might not be as much as their other work...

Some kinds of work have more potential to help a person to learn other areas, including that a guy might choose to stay in his current work or even go into another kind of work and he might even supplement his work by going to school to learn another kind of work, and he would not have had that option previously but if his ability to draw from his bitcoin allows him not to work if he chooses or to work in areas for the purpose of training himself and learning new areas.. which might even include networking and then telling someone that you will work for free or a very low amount as a kind of intern in order to learn the field and to network within the new field.

If you have $5k to $10k, you could invest parts of it lump sum right away, yet even the parts that you would defer by DCA or by buying dips, you would set up the parameters, the amounts and the time, so the DCA could be over 5-6 weeks or it could be over 5-6 months or some other timeline, and if the BTC price generally trends down during the period of your DCA you are better off for deferring yet if the BTC price generally trends up during your period of DCAing you would have had been better off to buy right away with that portion.  You cannot really know price direction with certainty, even though you could have some hunches that might end up being or not being correct

Yes you are correct. If a person has a large amount of money eg $5k to $10k then one should lump sum some.of it while leave some To DCA so that DCA smoothens the volatility out for the lump summed amount. But if a person has less lets say $1k then he should Just stick to DCA and Invest little by little because that amount isnt much to lump sum.

There surely can be a variety of scenarios in which lump sum comes into play.  Let's say in the very beginning, a person is not really sure about investing into bitcoin, and he is not even sure about the level of his discretionary income. He has some ballpark ideas, and he has various debts, and other complications in both the expense side of the equation and also in the income side of the equation.  He hears about bitcoin, and perhaps studies it for a week or two, and he decides that he should get started investing into bitcoin as soon as possible... yet at the same time, he knows that he has to sort out his financies and his psychology since he knows that he is not in a great financial/psychological position.

Upon quickly ballparkedly looking at his income versus expenses, he is pretty sure that he would be fine to invest $100 per week, yet he does not want to make any mistakes of overdoing it, so he starts out with $35 per week invested into bitcoin, and embarks on various assessments of his personal circumstances, including figuring out his cashflow management situation and charting out his various loan payments so that he might figure out if he might pay those off quicker or if he might prioritize some or just stick with minimal payments, including that there might be times in which either balloon payments are due and/or that he might be able to extend them if he wants to try to avoid the balloon payments, depending on the interest rate of such loans and/or if there might be punishments for early or late payments.

After a few weeks of sorting through his finances, he is able to increase his bitcoin investment amount to $70 per week, yet at the same time, he had figured out that his income tended to vary between $500 and $2,900 per month (with a more common amount that is around $1,400), yet his expenses tended to be between $900 and $1,300 with a more common amount around $1,150, yet he tentatively figures that he might be able to bring down some of his expenses to lower levels including if he is able to resolve some of his debt payments, yet he is not sure if he wants to resolve his debt payments and he is still looking into that, even though one of them is only 2.5% annual interest, and another one is more than 12% annual interest, so he is thinking to focus on reducing the 12% interest rate one first.

He also might realize that based on his historical variability in his income/expenses, he was already in the habit of keeping around $800 to $1,300 in his cash reserves in order to cover situations in which his income might not be able to cover his expenses, yet he realizes that when he started to invest into bitcoin, that he is likely going to need to build up his back up funds to something like $3,900 in order to cover 3 months of his expenses, and initially when he started out investing into bitcoin he saw that he had right around $1k in his back up funds, and so surely he wants to grow his back up funds, but if he is investing into bitcoin at $35 per week in the very beginning, he recognizes that it might take him 28 weeks to get his bitcoin investment to the same size as his back up funds, so he is not necessarily inclined to build his back up funds faster than his bitcoin investment, and sure the rate and speed that he invests into bitcoin as compared with building up his back up funds remains within his discretion  to decide such things.

In any event if this guy ultimately works his way up from $35 per week then $70 per week then $100 per week, he also is likely to find various ways that that he might be able to increase his income and/or decrease his expenses, so he might get up to $150 per week then $200 per week, and then maybe down the road, he realizes that he has quite a bit of variability in how much discretionary income that he has, so maybe he will decide that he will do at least $100 per week no matter what, but depending on his monthly income and/or expenses, he may well add to his weekly amount, so his weekly amount might vary quite a bit from $100 to $500 depending on his income expenses.

Now, if the guy gets more and more in touch with his income/expenses and various back up funds, then maybe he also knows that 2-3 times per year he receives some extra funds and/or maybe he had been investing in various other investments for 5-10 years prior to coming to bitcoin, so he knows that some of those other investments could be folded into bitcoin..  Any times that he has new money he can weigh how to treat that new money including whether he considers some or all the funds to be plugged into DCA, used to buy right away and/or to come up with some buying on dip formulas.  Just because the extra amount is $500 versus $1k versus $10k, the amounts do not necessarily inform him about which category to put the money, and surely if we are erroring on the side of buying a lot right away rather than deferring, then we still are not necessarily coming to the right conclusion for our own situation to plug the extra money into DCA rather than actually considering our other options and considering if those other options might be comfortable for our situation, and we also might consieder how many bitcoin that we have already bought and what were the prices of our purchases.  If we have $1k new money come in, yet we already bought a bunch of bitcoin in the $112k to $122k prices (let's say we bought $5k worth in the past 2 weeks, and we had earlier purchases of $100 per week for the previous 10 weeks), then we might consider the extent to which we buy right away with the $1k or if we might save some of that for buying on dips that may or may not end up happening.

Anf if you lump sum it then theres a high chance a person not lose but lessen his profit amount percentage. So if you have large amount of money some should be lump summed while other DCAed and if you have a small sum then you should focus more on DCA. But there should be a fund set aside so you can still Lump sum if there is a deep retrace.

I am not sure why you are getting so much caught up in the amount of money that comes available.  Sure, if you are brand new to bitcoin, then you are more inclined to just want to invest into bitcoin no matter the price until you reach a certain amount, yet sometimes you can become psychologically traumatized if you are either not holding back some for buying on dips or maybe if you just figure every week you are buying $100 (or whatever extra amount) so if there is a dip then your weekly buys will mostly capture the dip anyhow.  There surely are some guys who do not fuck around at all with trying to buy dips for their first whole cycle and they figure as long as they are mostly buying weekly then they will capture any dip that might come and so for example if they have a $100 per week  DCA buy, yet if they receive an additional $1k, maybe they will turn their DCA up to $250 per week until they run out of the extra money, and sure they might have a period in which more money is coming in so they will keep their DCA at the higher rate, and then return to their $100 per week rate when they have pretty much used up that extra money that they had come in.

There is no exact way, yet we can still consider any time that we have extra money coming in, we have the 3 options that we should at least consider, even if we might be disinclined to hold back any money for buying dips since we are already buying every week, so we will largely capture any dip if there is one, and after 4 years of investing into bitcoin, we are going to largely expect that our average coest per BTC will be close to the 200-WMA. and generally the BTC price tends to spend most of its time at least 25% higher than the 200-WMA. Right now the  BTC price is right around 125% higher than the 200-WMA and we can look at any date historically and verify the extent to which the BTC price was higher or lower than the 200-WMA and by how much.

If you have $5k to $10k, you could invest parts of it lump sum right away, yet even the parts that you would defer by DCA or by buying dips, you would set up the parameters, the amounts and the time, so the DCA could be over 5-6 weeks or it could be over 5-6 months or some other timeline, and if the BTC price generally trends down during the period of your DCA you are better off for deferring yet if the BTC price generally trends up during your period of DCAing you would have had been better off to buy right away with that portion.  You cannot really know price direction with certainty, even though you could have some hunches that might end up being or not being correct

Yes you are correct. If a person has a large amount of money eg $5k to $10k then one should lump sum some.of it while leave some To DCA so that DCA smoothens the volatility out for the lump summed amount. But if a person has less lets say $1k then he should Just stick to DCA and Invest little by little because that amount isnt much to lump sum. Anf if you lump sum it then theres a high chance a person not lose but lessen his profit amount percentage. So if you have large amount of money some should be lump summed while other DCAed and if you have a small sum then you should focus more on DCA. But there should be a fund set aside so you can still Lump sum if there is a deep retrace.

If I have some money as you said. In that case, I will keep that amount in a separate fund to buy aggressively during the decline. And we will continue to buy continuously with discretionary income. Because

An investor should have a main goal such as to continue buying continuously until his portfolio is built and to hold their holdings until the end of the period. In between, there are many types of declines in the market. Many people buy aggressively during that time. I think it is very good to buy aggressively during that time. But how much aggressive to be aggressive depends on their financial situation. But if a person keeps money aside for aggressive buying, then he can buy aggressively with the entire amount of money he has deposited.

Your idea might work Loyang, yet I get the sense that many of us should figure out our level of aggressiveness based on our finances and not based on whether or not we perceive there to be a bitcoin dip... so the better we have our finances figured out  and we have decently strong back up funds, then we are in place that we are already able to be aggressive in our bitcoin accumulation... if we are holding back money for buying dips, that likely shows that we were being somewhat whimpy in our regular buys.. so I question the extent to which we believe that becoming more aggressive on dips is helpful to our situation, even if we might purposefully choose to hold back some value for various dip buys if the dips were to happen.  Once a person has been accumulating bitcoin for 1-2 cycles there may be some value in transitioning over to a buying on dip practice.. also like I mentioned in previous posts, there could be some value for someone who has large lump sums to invest in bitcoin to hold back some of that for buying on dips... .. yet there might be an assumption that if a person has $20k, and then he more or less buys $15k between $112k and $122k, then maybe he wants to hold the other $5k for buying if the BTC price goes below $112k.. even though he understands that the BTC price might not go below $112k, but he feels better to save that $5k for such circumstances, and maybe he is buying between $200 to $300 per week... with his regular income.. so he just keeps the $5k on the side, just in case.  It may or may not be a good idea to keep that much on the side, especially if he is otherwise new to bitcoin with only less than a year buying bitcoin with mostly DCAs between $200 to $300 per week.

The circumstances of the guy, including how long he had already been buying, will help to support whatever approach he decides to take.

If you have $5k to $10k, you could invest parts of it lump sum right away, yet even the parts that you would defer by DCA or by buying dips, you would set up the parameters, the amounts and the time, so the DCA could be over 5-6 weeks or it could be over 5-6 months or some other timeline, and if the BTC price generally trends down during the period of your DCA you are better off for deferring yet if the BTC price generally trends up during your period of DCAing you would have had been better off to buy right away with that portion.  You cannot really know price direction with certainty, even though you could have some hunches that might end up being or not being correct

Yes you are correct. If a person has a large amount of money eg $5k to $10k then one should lump sum some.of it while leave some To DCA so that DCA smoothens the volatility out for the lump summed amount. But if a person has less lets say $1k then he should Just stick to DCA and Invest little by little because that amount isnt much to lump sum. Anf if you lump sum it then theres a high chance a person not lose but lessen his profit amount percentage. So if you have large amount of money some should be lump summed while other DCAed and if you have a small sum then you should focus more on DCA. But there should be a fund set aside so you can still Lump sum if there is a deep retrace.

What you refer to as large amount of money could be another person's DCA weekly or monthly allocation. So referring to $5k as large amount of money is somewhat misleading. What matters is understanding your goal and moving after it at your own level. There are low income Earners who DCA weekly or monthly with amount not more than $20 while there are still elite investors who DCA weekly or monthly with over $1k. Both low income Earners and elite investors have same responsibility, buying continuously to hold and chasing their accumulation target. This is why you have to analyse your income and allocate what you can be able to hold to bitcoin investment. If you measure your speed with someone else's speed, you may loose all your bitcoin stash. Aggressive buys is good when you have additional discretionary income during dips instead of going beyond your capacity during dips.

It is very important to avoid noise from outside and focus on your DCA approach. This will give you the soft play through which you can be able to HODL for a very long time. Going for dips when you are not financially ready for aggressive buys just because it's dip is a bad decision which can cause a harm to your portfolio.

The amount of BTC that a person chooses to target may well have to do with their own income and their standard of living expectations, so it still would take a person 10 years to invest 1 years income into bitcoin if he is investing at 10% per year, yet if he is ready, willing and able to invest at 25% per year, then it is only going to take him 4 years to reach 1 years of his income.  Some guys can draw from other resources, so if they had already been investing in traditional investments for 10 years, then maybe they had already accumulate 1-2 years of their income in other asset classes, and they might want to reallocate some or all of that in bitcoin, whether they do it as a lump sum or they DCA the amount from one asset and reallocate into bitcoin... so surely there can be a product of both time and quantity of money put in that can help to influence a guys options and/or his reaching of his target.. so a guy who is able to commit to a higher percentage is likely to get there quicker.. yet even a guy with a $40k income might want to get to a higher income level before he starts to withdraw from his bitcoin, and a guy can already likely perceive that his options are increasing with a larger income, so even if he might be making $40k per year, but if he sees that his bitcoin can support a $5k per year income versus being able to support a $20k per year income, he might already start to feel quite empowered by those numbers even if he might not start to withdraw from his BTC, yet instead to continue to either grow it or to just let it grow with the passage of time by his merely safeguarding what he had already built.

[sotelorene]

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.