You have been registered on the forum for nearly 3 years (since November 2023) and what have you been doing during that time since you have been here? Have you been fucking around trying to figure out dips or have you been ongoingly and persistently buying bitcoin on a regular and consistent basis?
@JayJuanGee
Although I have been on this forum for three long years, just because I have not been active here for three years does not mean that I have not invested in Bitcoin.
Actually, I started investing in Bitcoin around 2018 and since then I have been increasing my Bitcoin holdings. However, I became active on this forum again when I needed more knowledge about Bitcoin. Especially so that I can share my knowledge with everyone.
Well good. I am glad that you have had more time to be involved in bitcoin and even to be able to increase your bitcoin stash, yet still some of my same questions would apply whether you got started buying bitcoin 3 years ago or 8 years ago, and from my own perspective, the better of the strategies remain ongoing accumulation through buying and not fucking around with selling and/or trying to trade or even fucking around with trying to time the market.
Of course, if you had more time to accumulate bitcoin, then your decisions could be affected by how much you had been able to put into bitcoin, how many bitcoin you had accumulated and some guys might have had been able to front load their bitcoin investment rather than merely relying on their monthly, weekly (or whatever is your normal pay period).
And, yeah, of course, in a forum like this we have abilities to share ideas, and we do not necessarily need to agree, yet of course, at the same time, since I had created this as a self-moderated thread, I do prefer to try to stick to themes that relate to my own various investment ideas.. so for me it can be a wee bit frustrating if I get the sense that we might be getting drug into areas of conversation that I might consider to be trading or even talking about theory that may not necessarily come off as practical to me in regards to the themes of this thread.
Anyway, it is true that there is no need to wait for the price to drop, because we have seen how Bitcoin has corrected in the past years. We do not need to be afraid of investing in Bitcoin, because I think that even if the price of Bitcoin is completely dumped, it is still very likely to pump up later.
Anyway, I do not want to confuse anyone here, I just wanted to share my knowledge here.
Nothing wrong with sharing ideas and even striving to get clarifications and/or even sometimes coming up with our own examples.
If you glance through the thread, I am frequently suggesting that I think that it tends to take guys a whole hell of a lot of time to really build up their bitcoin portfolio and to get through their accumulation phase... and I really think that ongoing buying of bitcoin is helpful, yet sure at the same time, it can be difficult for guys to both ongoingly maintain discretionary funds so that they can both ongoingly buy bitcoin and also ongoingly build and strengthen their cashflow management, and at the same time, building bitcoin and strengthening cashflows is not the only thing in life, since guys also will have some money that they are also regularly using for discretionary spending, so there is a bit of an ongoing balance, even with guys who have ongoingly strong discretionary funds, in terms of how much priority to give to each of the three categories of investing, saving and discretionary consumption.
Honestly, I believe that if we have an idea about Bitcoin and we have patience, then we can invest in Bitcoin for the long term. But at that time, we have to use money that we can afford to lose and so that there is no bad effect on our Bitcoin holding in the future. But I have created another emergency fund for this, so that if I need any urgent money in the future, I can solve my problem from there. So that there is no bad effect on my Bitcoin investment.
I tend to think of the bare minimum back up funds as emergency funds, so that guys are going to set up their emergency funds in such a way that they don't tap into those funds at all unless they run out of all other funds. Of course some back up funds might have more flexibility or you might even designate those funds for specific kinds of purposes, and I consider those kinds of funds as reserve funds, yet of course, if a real emergency happens in which income had gone down and/or basic expenses had gone up, even your reserve funds might end up getting used in the place of emergency funds and even prior to the use of emergency funds merely because you have them and merely because your shortage of income and/or your increase in basic expenses had left you with no choice but to use whatever funds that you had that were in excess of your emergency funds prior to tapping into your emergency funds.
Sure both the categorization of funds and even the choices about which funds to spend first or even the giving of priority to not tap into your bitcoin, these are personal choices, and guys are going to draw lines in different ways, and no matter how they draw their lines, it is most likely better (and perhaps best?) if they are able to build up their bitcoin holdings and even their various back up funds in such a way that they tend to always have options, since one of the more frustrating and stressful things for anyone tends to be when they get into situations in which they have no options... and maybe they have to spend from funds, whether emergency funds or bitcoin in ways that they did not want to do and at a time that they did not want to happen.
So I think if someone wants to invest in Bitcoin, then if they buy Bitcoin using the DCA method without looking at the market, then they will definitely benefit in the future.
Sure, any of us longer term bitcoin investors likely both stay in bitcoin and we got into bitcoin in the first place based on a bit of a presumption that it is better for us to build up our bitcoin holdings and to invest into bitcoin rather than investing anywhere else, and so in that regard we may well have both a presumption that bitcoin prices are going to tend to trend upwards, and at the same time, we understand that there is no guarantee that bitcoin has to go up, so in that regard, we try to figure out a bitcoin investment allocation amount that we consider to be reasonable under the totality of the circumstances, and perhaps when we are new to bitcoin we might be a bit hesitant and unsure, yet the longer that we invest into bitcoin and we study bitcoin and perhaps bolster our own cashflow management, we also might start to gravitate more towards more aggressive investing into bitcoin, and surely I frequently suggest that guys should strive to try to be able to invest into bitcoin as aggressively as they are able to do without overdoing it, since surely no one wants to end up losing in their bitcoin investment based on their being correct about the direction of the bitcoin price, yet their failure to build up their bitcoin stack as well as they could have based on their own screw ups and their own going too far and then losing bitcoin because they did not manage their bitcoin and/or their cashflows well.
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Mixing both strategies makes sense. It's not like the lump sum will done frequently, its only when you have a spare cash that isn't of no use, then there no problem throwing it into bitcoin. Keeping in mind that you are still accumulating with your DCA and your backup or funds are in place.
The only thing that often of makes some investors avoid doing lump sum , is if after buying bitcoin at a particular price and the price keeps dropping. Seeing your investment go down immediately can make you feel like you bought at the wrong time. But an investor whose focus is on long term won't care much, since short term prices fluctuates alot. What is more important is to make sure you have everything in place before doing lump sum . By that, I mean one should look into their finances maybe their bills, adding more money into their backup funds and other reserves etc.
One of the reasons that I frequently suggest that if guys get lump sum amounts that come available to them, then they should at least consider the three different ways of buying bitcoin with the amount that they authorize to buy bitcoin: 1) buying right away, 2) defer by time (DCA) and/or 3) buy dips that might not happen.
The buy dip portion of the lump sum can come in handy for who consider that buying a bunch of bitcoin at a set price is risky, so then they save some portion of that lump sum for buying dips that may or may not end up happening, and if some form of dip ended up happening, then their buy the dip amounts are triggered, and if the dips do not end up happening, then the BTC price ended up going up and they still profit from whatever lump sum portion that they had put into bitcoin with the lump sum amount that they ended up having and allocating towards buying right away. Accordingly, both DCA and lump sum end up serving as a hedge to the portion that was bought right away, and the buying on the dip portion is specifically tailored towards specifically buying with the allocated amount in the event that the BTC price dropped after the portion of the lump sum had been used to buy right away.
