JJG’s Outline of Bitcoin Investment Ideas

[JayJuanGee]

[edited out]

Your math is perfect. When the portfolio matures after 5 years of DCA, the new $2,000 doesn't make much of a difference in overall value (only 3%). This phenomenon is called the "Law of Diminishing Returns" in portfolio theory.

At this point, it is wiser to keep the excess money as 'dry powder' or liquid cash until the market goes into a deep dip, rather than distributing it to regular DCA over the next 5 weeks. When Bitcoin crashes by 30% or 40%, this $2,000 lump-sum investment will help to bring down the average buy price of a large portfolio more effectively. But I agree with you, whatever the strategy, having surplus funds gives an investor the biggest psychological advantage in the market.

Whenever a guy has a lump sum, he has options, and he can employ any of the three of the techniques.  1) buy right away, 2) defer by time (DCA) and/or 3) defer by price (buy on dips that might not happen).  There are trade-offs to each approach and the guy can decide based on his then situation which of the techniques (or all three) that he wants to apply and how.  If he is in doubt, he could just allocate 1/3 in this case $666.67 to each of the categories.

[edited out]

I don't see it as a big deal looking at the market periodically to know what's happening in the market, because it's only when you take a look at what's going on there , and you will get to know when their is a dip or not, but what I think that is wrong is staying glue to the chart, like constantly monitoring it's hourly, that's the trait of a trader, and by doing so you might temper or sell your Bitcoin investment in panic if your emotions gets the better of you.

So checking on the value of Bitcoin to see what's happening in the market is not bad, but doing it in excess like staying glue to the chart is where it's totally wrong.

There is a difference between monitoring and analyzing and keeping track versus acting upon the information.

A guy can watch the BTC price on a daily basis out of curiosity, and he can keep charts of all his BTC buys that show the prices and the average costs per BTC, yet if he has a plan to ongoingly buy bitcoin no matter the price for 1-2 cycles or longer, then in his first cycle or two, he may well stick to his plan and ongoingly buy bitcoin, so it won't matter if he has a spread sheet (or other charts and graphs) showing his costs per coin, how many coins he got at certain points in time and various other price related information contained within the charts - especially if he is mostly sticking with his plan to ongoingly accumulate bitcoin through buying only during his BTC accumulation period.

A guy can have both goals/practices at the same time.  He can be focused on bitcoin accumulation no matter the price, but he can also be keeping track of various aspects of his bitcoin holdings while it is ongoingly growing in size, yet perhaps ongoingly changing in dollar value, too.. and yeah, likely his main focus would be making sure that he is ongoingly growing the number of bitcoin (sats) that he is holding, and the price and/or cost of those bitcoin over time is likely a less important piece of information that he is tracking.

[Cyber_warrior]

buying aggressively doesn’t have anything to do with back up funds. When you buying aggressively it either you have a case of Lump sun or having an increase in discretionary income and sometimes some one can even have an increase in discretionary and not be aggressive. Incase where you have an increase in discretionary income some people might choose to allocate more of it to buying aggressive, some might allocate it to emergency funds or even reserve funds or even something outside bitcoin and will end up putting little into bitcoin.

It really good to have back up funds in a Bitcoin journey but in a case go buying aggressively back up fund play little or no role because it sole purpose is to come in when their is case of personal emergency.

Yes i understand your point that your discretionary income is what determines how a person gets aggressive based on how much he is willing to allocate into buying Bitcoin but then one cannot totally ignore not having your back up funds in place before buying aggressively. It's always better to be responsible when investing aggressively and that's why having a back up funds before you get aggressive is important. @JJG explained this earlier when he made it clear to me that getting aggressive with your buys without having your back up funds is risky for one's investment.

Aggressive accumulation is done with discretionary income and if you have been investing then you must have been sorting out your back up funds alongside your investment so having a back up fund to get aggressive is important.

[sotelorene]

Anyone that thinks that dca accumulating strategy slow down Bitcoin accumulation is just an impatient traders that thinks that a proper  Bitcoin accumulation is something that happens overnight, without looking at the fact that it happens overtime when you are consistent in your dca accumulating strategy.
What makes the dca accumulating strategy unique is that you will have the chance to buy at every price interval, and may even do it aggressively during the dip with your reserve funds, so it's the best Bitcoin accumulating strategy statistically.

But I think what matters most is having a good method and staying discipline and consistent with it , waiting only for the dip is not always the best strategy because nobody can perfectly predict the future market. But if one are already purchasing and accumulating Bitcoin weekly or monthly then taking advantage of the dips. For me buying the dip shouldn't be the main strategy  yet it should just be an extra opportunity to accumulate more while sticking to your regular investment .

Many of this new investors of bitcoin fails to understands is that there are alot of opportunity and benefits in DCA strategy when it comes to invest in bitcoin. During DCA we can witness so many opportunities even this opportunity of buying during dips we can witness as many as possible because we are keeping up with constant accumulation either it being weekly or monthly which gives us edge that we might one day come across dips so as an investor avoiding the procrastination of waiting for dips and start the journey toward building your future with bitcoin.
With DCA we might end up not even buying at dips but the outcome of our constant accumulation of bitcoin could be something massive in the future.

it is not only new investors that fails to understand that because even some folks that are not new sometimes do fail to understand too and again do not limit this opportunity and benefit to the DCA method alone because all the methods are unique in their own different ways and like i always say it is not just about understanding the benefits and opportunity of the DCA method but also by knowing what you are actually doing and the reason you are accumulating Bitcoin.

[Frankolala]

buying aggressively doesn’t have anything to do with back up funds. When you buying aggressively it either you have a case of Lump sun or having an increase in discretionary income and sometimes some one can even have an increase in discretionary and not be aggressive. Incase where you have an increase in discretionary income some people might choose to allocate more of it to buying aggressive, some might allocate it to emergency funds or even reserve funds or even something outside bitcoin and will end up putting little into bitcoin.

It really good to have back up funds in a Bitcoin journey but in a case go buying aggressively back up fund play little or no role because it sole purpose is to come in when their is case of personal emergency.

Someone with a strong backup funds and an organized cash inflow management will be able to be aggressive in his bitcoin investment without any problem. You should know that aggressive buying isn't by the size of your discretionary income but by the quantity of your discretionary income that you put into bitcoin. Someone with a low discretionary income can even buy aggressively too.

I don't think that it makes sense for your discretionary income to increase and you didn't also increase your DCA amount because we are all aiming to reach our bitcoin target fast. So instead, of accumulating in a whimpy way and put more of your discretionary income into consumable stuffs, it's better to put more of your discretionary into bitcoin.

[Big Dirams]

If a person has an income of $30k per year and he decides to invest $100 per week into bitcoin (17.3%), then maybe after 5 years he had invested $26k into bitcoin, and if bitcoin suddenly goes up 5x to be worth $130k in a fairly short period of time, the guy might not know how to deal with that situation.  Is he going to keep buying bitcoin?  Stop buying bitcoin? Or is he going to be tempted to sell some of his bitcoin?

Maybe he never had any investment that was worth that much money, so he has to learn how to deal with having that money and knowing that the price is volatile and that he can sell the bitcoin at any time that he wants.  Building up a habit of ongoingly buying bitcoin can help in these circumstances, but also building up back up funds can help in these types of circumstances, too.
 .

That absolutely a high percentage of bitcoin returns that comes after constant accumulation of bitcoin for over 5years. But I’m a bit loss right now so what should be the investors decisions here or does it totally comes down to the investors to decide on what to do with the bitcoin or is there any positive way to approach a situation like this.
I’m just so curious because with high amount of bitcoin like this then such investors would be totally confused so what should be his decision here. Keeping up with more accumulation? Or selling off all his holdings? Or even maybe selling some and securing it what should be the decision here @JayJuanGee.

Well I came up with a suggestion don’t know if it suit well but just an opinion though.
What if the investors reduces his or her weekly budget for the constant accumulation, so it would reduced the risk a little bit afterall the holder has made so much from the journey. Reducing their monthly or weekly budget would be a smart one to reduce the risk even if the budget is been reduced by 60% or more  

[BluebloodCXVI]

[edited up]

I agree that common sense matters, but I also think common sense can mean different things depending on a person’s experience and financial situation. What seems obvious to someone who has spent years managing investments may not be obvious to someone that is just getting started and that’s probably why principles like budgeting, backup funds, and staying within discretionary income are useful, because they provide some structure when experience or judgment is still developing. So personally i believe learning and adjusting over time is likely just as important as relying on common sense alone.

You don't seem to understand what is common sense, since common sense would not suggest any specific knowledge or that you just sit back and not learn anything, yet any person who has common sense would be able to learn all of the skills related to bitcoin investing and cashflow management, even though he might well make quite a few mistakes within the learning journey.

Common sense says that if you don't know how to calculate whether you have discretionary funds or if you have enough funds to buy bitcoin, either you invest a small amount or you practice with your math to make sure that you are comfortable.

Common sense says that if you have no information about how to get bitcoin, then maybe you need to figure out the various ways to get bitcoin and decide how you might want to start out.

Common sense says that you would likely prefer to not lose money, so you may well consider that if you might be brand new to bitcoin and you don't know very much about it, then you would likely error on the side of investing smaller amounts while you are learning about it,and you would not increase the amount until you learn some specifics that might help to satisfy you in light of your own cashflow management experiences and/or in consideration if you have any investing experiences.

I am presuming that around 97% of people have sufficient common sense to be able to invest into bitcoin, yet the mere fact that they have common sense and that they have discretionary income does not mean that they are personally ready to get started, since they need to also be psychologically ready.. not just financially ready... even though at the same time, if a person clearly determines that he has $100 in discretionary funds that are available each week that he knows could be invested into bitcoin, then I find it hard to suggest that he should wait when he can start out with $30 per week and then spend time learning about whatever areas he believes that he needs to learn in order to become more comfortable and to be able to increase the amount from $30 to $100 per week.  Yet, at the same time, if he does not have any time to look into bitcoin further, then perhaps he has to keep his investment amount at $30 per week until he is able to gardner up enough time to be able to look into any bitcoin-related areas (and/or cashflow management related areas) that he might need to look into.

I get your point better now, and I actually agree with a lot of what you said. I think I probably didn’t explain my original point as clearly as I intended to. I wasn’t trying to say that people need to already have specific knowledge before they start, or that they should sit around waiting until they become experts before learning anything, my point was more that “common sense” can sometimes look different depending on the person and their level of experience, you understand?
Take for example, someone who has been dealing with investments or managing cashflow for years, taking certain decisions may feel natural and less complicated but for someone who is completely new, those same things may not feel nearly as obvious because they’re still trying to understand risk, discretionary income, and what level of exposure they’re personally comfortable with.
I do agree with your point though that common sense should push people to recognize what they don’t know, start small, learn gradually, and avoid unnecessary risks rather than jumping in blindly. I also agree that being psychologically ready matters just as much as being financially ready.
I think the point I was trying to make is that things like budgeting, emergency funds, and cashflow principles can give people some structure while they’re still building experience and confidence in their investment journey. So I think we’re actually closer in our views than I initially thought. I was focusing more on a structure helping people during the learning process, while you were focusing more on judgment and learning through experience.

And yeah, maybe we are not very accustomed to using our common sense to work out problems and to exercise good judgement, and surely if we might be new to investing and managing our cashflows, then we may well have to error on the side of caution as we get used to these new kinds of activities.. and I personally tend to presume that guys tend to operate with a bit of a cash cushion in their own ways of dealing with their income and their expenses (maybe they have 2-6 weeks of their expenses that they keep as a cushion?), even prior to investing in bitcoin, yet once they are investing in bitcoin, there is more reason to manage cashflows better and to keep more back ups funds (whether they are all in cash or not, the basic 1st month or so should be in cash in the local currency), since bitcoin tends to be very liquid and very volatile, so guys can be tempted to sell their bitcoin or fail to ongoingly buy bitcoin based on their own failures in their cashflow management (and their building and maintenance of back up funds).

I think the point about Bitcoin exposing weaknesses in cashflow management is interesting. When an asset is highly liquid and volatile, poor financial habits can become more visible because people may feel pressure to sell during difficult periods or stop accumulating altogether. I’d only add that not everyone starts from the same financial position, some people already operate with a cushion, while others are building their own from the scratch.

If a person has an income of $30k per year and he decides to invest $100 per week into bitcoin (17.3%), then maybe after 5 years he had invested $26k into bitcoin, and if bitcoin suddenly goes up 5x to be worth $130k in a fairly short period of time, the guy might not know how to deal with that situation.  Is he going to keep buying bitcoin?  Stop buying bitcoin? Or is he going to be tempted to sell some of his bitcoin?

I think all three things you mentioned are realistic, and that’s kind of the whole issue.
If Bitcoin 5x happens quickly, what the person does next really depends on their mindset and whether they had a plan before it happened. Without that, he’s basically making decisions in the middle of emotions instead of following a clear direction.
He could keep buying if he still believes in long-term accumulation and doesn’t care much about short-term price moves. He could also stop buying if the new price feels too expensive than compared to what they used to buy before. Or he might be tempted to even sell some simply because seeing that kind of profit of $130k in real time can change how they feel psychologically, especially if it’s their first time experiencing something like that.
So I think it’s less about which option is correct, and more about whether the person already decided ahead of time what they are trying to do. If there’s no plan in place, then all three reactions start to feel reasonable in the moment, and that’s where people usually get inconsistent.

So caution makes sense early on, but there’s also a balance, if someone becomes overly focused on building larger and larger backup funds, they could end up delaying investing indefinitely. The challenge is finding a level of preparedness that reduces unnecessary risk without creating paralysis.

Hopefully newbies who are involved in this thread are figuring out ways to get started investing in bitcoin, and simultaneously building their back up funds and ultimately acting rather than waiting.  So guys have to figure out how to help themselves and to figure out their position size in regards to bitcoin whether they are buying weekly or otherwise, and sure at the same time making sure to build and maintain some quantity of back up funds.

Yeah, I agree with you, especially on the idea that people should actually start instead of just thinking and overanalyzing everything.
For most beginners, the hardest part isn’t even buying Bitcoin, it’s just figuring out how to fit it into their own money situation in a way that feels safe and sustainable. So things like choosing a position size they can stick with, while still keeping some backup funds aside, really matters.
Once that is in place, people usually learn a lot just from experience over time. The main thing is avoiding both extremes and going in too hard emotionally, or waiting forever for the perfect time that never really shows up.

[GhostOfBitcoin]

[

[edited out]

True, since if they are consistently doing DCA for lots of years. That $2k will be not as huge compare on the overall portfolios that they owned.

This is actually the best thing about compounding since they may feel heavy at early phase, but when they are on it for lots of years they may feel its normal and those accumulations phases feel's light.
What's actually the best part their is those extra funds they have offer them flexibility. On which they can hold it back depends if they are comfortable to do it, spread out or even do front load. Their discipline towards being consistent with their accumulations matters more than doing any single lump sum.

It cuts both ways, and if guys are not consistently buying, then after a while they might start to feel that they no longer need to buy because each small amount that they buy is not adding very much value to the overall bitcoin stack size.  Whether they are making an appropriate assessment is not always clear, since there may well be guys who stacked coins for several years, yet they ended up stopping or slowing down their stacking, so it ends up taking them way longer than it should have had taken to get to a point of overaccumulation.

Think about two guys who started out investing $100 per week into bitcoin 10 years ago (in April 2016), and after their first year, they invested $5,200 and they had accumulated 8 bitcoin.

Maybe the first guy stops buying because he figures that he has enough and he doesn't really want to keep buying bitcoin when the prices are much higher than when he started.

The second guy continues to buy bitcoin at $100 per week for the next 9 years from April 1, 2017 until now, so he invested another $48k and got another 4.2 BTC, so he  had invested a total of $53,200 and his total bitcoin is 12.2, and the first guy still just has 8 bitcoin (to the extent that he was able to hang onto the 8 BTC), yet the first guy ONLY invested $5,200.

Which guy would you rather be?

It is not uncommon for some guys to give up stacking bitcoin early, and sometimes they even will sell parts of their stash so guy 1 might not have had been able to hang onto 8 whole bitcoin for 9 years, and guy 2 just continued to stack in order to get to 12.2 BTC, which seems to have had put him in a way better position than guy 1, even though he invested 10x more than guy 1, and he only got 50% more bitcoin.. yet there seems to be some value in continuing to plod away in terms of staying focused on ongoing buying.

You explained the importance of consistency in Bitcoin accumulation very well and it clearly shows that stopping halfway can end up being a disadvantage in the long run. People need to understand that once they decide to invest for the long term there is no reason to stop buying just because the price has increased compared to when they start or because they feel their purchase no longer have enough impact. There’s also no need to force yourself to increase the amount you invest if it is not comfortable financially and even sticking to the same amount you started with can still turnout to be something reasonable with time if it is done consistently. And naturally when someone stops buying completely it is easier for them to lose the mindset and discipline of regular accumulation which can easily lead to selling their holdings. Consistent buying does not only help grow holdings it also helps maintain long term commitment and discipline.

The real advantage is not just the amount of Bitcoin accumulated but the mentality and consistency developed from buying regularly. So to answer the question I think personally I would rather be the guy who continued buying consistently till the end. A

The biggest mistake in long-term savings is to stop halfway due to fluctuations in market prices.

Whenever I stopped buying Bitcoin because of fear of price increases or because I thought I was buying less, my savings discipline was broken. Later, it turned out that I made the wrong decision at a high price due to FOMO. DCA (Dollar-Cost Averaging) in Bitcoin, or saving small amounts regularly, not only increases our holdings, but also gives us peace of mind in the face of market volatility.Even if the amount of money is small, if you maintain consistency, it becomes huge over time due to the Compounding Effect. Those who give up in the middle, often lose patience and panic sell at a low price. Therefore, discipline and long-term commitment are much more valuable than quantity in Bitcoin savings. Like you, I will choose to be consistent in the end.

[edited out]

Your math is perfect. When the portfolio matures after 5 years of DCA, the new $2,000 doesn't make much of a difference in overall value (only 3%). This phenomenon is called the "Law of Diminishing Returns" in portfolio theory.

At this point, it is wiser to keep the excess money as 'dry powder' or liquid cash until the market goes into a deep dip, rather than distributing it to regular DCA over the next 5 weeks. When Bitcoin crashes by 30% or 40%, this $2,000 lump-sum investment will help to bring down the average buy price of a large portfolio more effectively. But I agree with you, whatever the strategy, having surplus funds gives an investor the biggest psychological advantage in the market.

Whenever a guy has a lump sum, he has options, and he can employ any of the three of the techniques.  1) buy right away, 2) defer by time (DCA) and/or 3) defer by price (buy on dips that might not happen).  There are trade-offs to each approach and the guy can decide based on his then situation which of the techniques (or all three) that he wants to apply and how.  If he is in doubt, he could just allocate 1/3 in this case $666.67 to each of the categories.

As a Bitcoin investor, I disagree with your third point. Putting away a third of your cash just hoping for a dip often results in an 'opportunity cost'. Because in a bull market, if the price doesn't go down, that money sits idle and loses value due to inflation.

So in my opinion, it would be wise to convert strategy number 3 into a Dynamic DCA or Value Averaging, rather than leaving it completely idle. That is, if the market is normal, the normal DCA will run, and if there is a big crash or dip, then a large buy order will be executed from that accumulated fund.I have had good results using this hybrid model myself. Your idea of ​​dividing this $666.67 into three parts will be a great help for beginners to control their emotions and avoid FOMO.

[Gost ms]

If a person has an income of $30k per year and he decides to invest $100 per week into bitcoin (17.3%), then maybe after 5 years he had invested $26k into bitcoin, and if bitcoin suddenly goes up 5x to be worth $130k in a fairly short period of time, the guy might not know how to deal with that situation.  Is he going to keep buying bitcoin?  Stop buying bitcoin? Or is he going to be tempted to sell some of his bitcoin?

Maybe he never had any investment that was worth that much money, so he has to learn how to deal with having that money and knowing that the price is volatile and that he can sell the bitcoin at any time that he wants.  Building up a habit of ongoingly buying bitcoin can help in these circumstances, but also building up back up funds can help in these types of circumstances, too.
 .

That absolutely a high percentage of bitcoin returns that comes after constant accumulation of bitcoin for over 5years. But I’m a bit loss right now so what should be the investors decisions here or does it totally comes down to the investors to decide on what to do with the bitcoin or is there any positive way to approach a situation like this.
I’m just so curious because with high amount of bitcoin like this then such investors would be totally confused so what should be his decision here. Keeping up with more accumulation? Or selling off all his holdings? Or even maybe selling some and securing it what should be the decision here @JayJuanGee.

Well I came up with a suggestion don’t know if it suit well but just an opinion though.
What if the investors reduces his or her weekly budget for the constant accumulation, so it would reduced the risk a little bit afterall the holder has made so much from the journey. Reducing their monthly or weekly budget would be a smart one to reduce the risk even if the budget is been reduced by 60% or more  

We should definitely continue buying until we are able to reach our goal. The price of Bitcoin is very volatile, the market can rise and fall at any time and we have to move forward ignoring everything. A person who is able to hold on for the long term without stepping into the trend of short-term profit may get better results in the future than short-term profit.

But yes, if someone's investment has increased a lot or if his investment has doubled or even more profit a few days after investing. In that case, he can definitely enjoy some of the profit and can hold the rest of the investment for the long term or hold it until he reaches his goal.

[Joeboy]

buying aggressively doesn’t have anything to do with back up funds. When you buying aggressively it either you have a case of Lump sun or having an increase in discretionary income and sometimes some one can even have an increase in discretionary and not be aggressive. Incase where you have an increase in discretionary income some people might choose to allocate more of it to buying aggressive, some might allocate it to emergency funds or even reserve funds or even something outside bitcoin and will end up putting little into bitcoin.

It really good to have back up funds in a Bitcoin journey but in a case go buying aggressively back up fund play little or no role because it sole purpose is to come in when their is case of personal emergency.

Yes i understand your point that your discretionary income is what determines how a person gets aggressive based on how much he is willing to allocate into buying Bitcoin but then one cannot totally ignore not having your back up funds in place before buying aggressively. It's always better to be responsible when investing aggressively and that's why having a back up funds before you get aggressive is important. @JJG explained this earlier when he made it clear to me that getting aggressive with your buys without having your back up funds is risky for one's investment.

Aggressive accumulation is done with discretionary income and if you have been investing then you must have been sorting out your back up funds alongside your investment so having a back up fund to get aggressive is important.

You guys are literally saying the same thing... Backup funds dosen't appear out of the blues, it is sourced /or built using your discretionary income and so regardless of how you or Abbatty tries to put it, aggressiveness will still depend on the availability of your discretionary income...And that's why folks without any discretionary income would struggle very much to build any backup funds and they would as well struggle to make any aggressively buy..And so everything that pertains investing and aggressiveness, still boils down to the availability of your discretionary income...

[Muba20]

We should definitely continue buying until we are able to reach our goal. The price of Bitcoin is very volatile, the market can rise and fall at any time and we have to move forward ignoring everything. A person who is able to hold on for the long term without stepping into the trend of short-term profit may get better results in the future than short-term profit.

But yes, if someone's investment has increased a lot or if his investment has doubled or even more profit a few days after investing. In that case, he can definitely enjoy some of the profit and can hold the rest of the investment for the long term or hold it until he reaches his goal.

In investing, one should have a long-term goal, but if the investment increases several times, then there may be a need to withdraw profits. I do not think that such a mentality is right and once such a habit is formed, it will be difficult to mentally handle it later. If someone makes an incredibly large profit, then it is normal for him to decide to withdraw it and it is better not to indulge in such behavior in the beginning. In this case, suppose an investor has started investing and every time the price increases, will he withdraw some profit from it? Since we invest with a long-term goal, if the habit of withdrawing profits is formed, how many times in ten years will he withdraw profits? Will he withdraw profits only when the price increases? Greed can work if the market increases rapidly, similarly, more frustration and panic will work in the market fall. Therefore, if there is a defined financial goal, risk management and practical need, at the same time, if the portfolio becomes very large, it is logical to safely set aside some profits. Repeatedly anticipating price movements and attempting to take profits can lead to trading.

[Lembo69]

You explained the importance of consistency in Bitcoin accumulation very well and it clearly shows that stopping halfway can end up being a disadvantage in the long run. People need to understand that once they decide to invest for the long term there is no reason to stop buying just because the price has increased compared to when they start or because they feel their purchase no longer have enough impact. There’s also no need to force yourself to increase the amount you invest if it is not comfortable financially and even sticking to the same amount you started with can still turnout to be something reasonable with time if it is done consistently. And naturally when someone stops buying completely it is easier for them to lose the mindset and discipline of regular accumulation which can easily lead to selling their holdings. Consistent buying does not only help grow holdings it also helps maintain long term commitment and discipline.

The real advantage is not just the amount of Bitcoin accumulated but the mentality and consistency developed from buying regularly. So to answer the question I think personally I would rather be the guy who continued buying consistently till the end. A

Yes, I would like to draw some reasonable parallels with your words.
If we stop investing midway, we really fall behind. Not only that, but when the price of Bitcoin drops, we also lose the ability to take advantage of that opportunity.
We all know the story of the tortoise and the hare more or less. The hare stopped midway due to his overconfidence, and that is why he lost the race. The case is much the same in investment. If you cannot maintain the continuity of regular investment and stop midway, then over time you can fall far behind your financial goals.

Therefore, time should be given utmost importance in investment. Especially in Bitcoin, investing patiently with a long-term plan creates the possibility of getting good results. In the end, the person who can save Bitcoin consistently can get the opportunity to build significant wealth in the future.
History has shown that many of those who have delayed investing in Bitcoin have later regretted that decision. Therefore, we should not deviate from long-term investment plans unless there is a real urgent need and patiently move forward towards achieving our goals.

[Morayoam91]

Anyone that thinks that dca accumulating strategy slow down Bitcoin accumulation is just an impatient traders that thinks that a proper  Bitcoin accumulation is something that happens overnight, without looking at the fact that it happens overtime when you are consistent in your dca accumulating strategy.
What makes the dca accumulating strategy unique is that you will have the chance to buy at every price interval, and may even do it aggressively during the dip with your reserve funds, so it's the best Bitcoin accumulating strategy statistically.

But I think what matters most is having a good method and staying discipline and consistent with it , waiting only for the dip is not always the best strategy because nobody can perfectly predict the future market. But if one are already purchasing and accumulating Bitcoin weekly or monthly then taking advantage of the dips. For me buying the dip shouldn't be the main strategy  yet it should just be an extra opportunity to accumulate more while sticking to your regular investment .

I have never seen such an account in the market where it is necessary to predict the future and catch the correct price, because the price of Bitcoin may not be at the same position tomorrow, it is possible to be either dumping or pumping, so you should start investing with limited money because it is better to start from your current position without going back.

[nara1892]

Anyone that thinks that dca accumulating strategy slow down Bitcoin accumulation is just an impatient traders that thinks that a proper  Bitcoin accumulation is something that happens overnight, without looking at the fact that it happens overtime when you are consistent in your dca accumulating strategy.
What makes the dca accumulating strategy unique is that you will have the chance to buy at every price interval, and may even do it aggressively during the dip with your reserve funds, so it's the best Bitcoin accumulating strategy statistically.

But I think what matters most is having a good method and staying discipline and consistent with it , waiting only for the dip is not always the best strategy because nobody can perfectly predict the future market. But if one are already purchasing and accumulating Bitcoin weekly or monthly then taking advantage of the dips. For me buying the dip shouldn't be the main strategy  yet it should just be an extra opportunity to accumulate more while sticking to your regular investment .

Yes, and the best method is to accumulate with the DCA strategy. Waiting for a decline will only cause delays. However, if the decline happens when you have reached your umpteenth purchase plan with the DCA method, then that is a good opportunity. If I were in that situation, I would probably increase my accumulated amount beyond the amount I usually enter. But, as you said, this is just an additional opportunity and does not mean we have to wait for the decline to occur. The point is to consistently accumulate without looking at the price.

[Umulala-alala]

But yes, if someone's investment has increased a lot or if his investment has doubled or even more profit a few days after investing. In that case, he can definitely enjoy some of the profit and can hold the rest of the investment for the long term or hold it until he reaches his goal.

An investor is not supposed to be taking profit from his investment when he has not reached his over accumulation stage i don't see any need taking profit when you are supposed to be buying bitcoin that's gambling, it's traders sell when they see that they have gotten some little profit from there investment, as a BTC investor we are meant to be consistently buying bitcoin and hodl for long up to 4-10 years or more before we can think of taking little profit and still keep holding.

[red4slash]

I agree with you that DCA is a great and stress-free strategy for long-term and patient investors. In my experience, it helps a lot in managing market volatility.

The DCA method simply makes the market volatility of no effect or should I say, it remove it as a factor in the process because it does not consider what the price of Bitcoin is or what the trend of the market is, rather getting the orders filled when the time for it comes is the main focus of the DCA method. In other words, the DCA method care more about consistency of the investor than any other thing because it is consistency that will make the investor always purchase the Bitcoin at the designed regular interval.

I don't really understand why many people still contemplate using other trivial methods for their Bitcoin accumulation which often make them run into problems or confusion when the DCA method is there to use, an easy and convenient method that will not put the investor in any financial stress neither does not call for FOMO. Like I have always said, the DCA method is strongly recommended for all and sundry.

I think that's not quite right. Because in the end the DCA method carried out will not make Volatility change to no effect but with us doing DCA indirectly our goals are formed for the long term and this can reduce the intensity of volatility that occurs because the longer the volatility we feel will weaken (not no effect) because we can minimize the impact of volatility with the long term that occurs and that is certainly with the hope that bitcoin continues to increase in terms of value so that the large volatility at the beginning will not completely make our mentality down in a few years after we buy bitcoin. But the effect is still there so it's not right to say it has no effect.

In addition for an investor I don't think it's a problem if you use other methods of buying because it's not a mistake, the most important thing is that you can afford to buy and do it.  In the purchase of bitcoin there is no right or wrong to make a purchase method because all of that is justified if we are willing to take the risk and we are able to do it.  We cannot say that DCA is the most correct and other methods such as Buy dip or Lump sum are wrong just because they are in DCA because that can actually make you lost in forced interpretations.

[GeorgeJohn]

<..>

An investor is not supposed to be taking profit from his investment when he has not reached his over accumulation stage i don't see any need taking profit when you are supposed to be buying bitcoin that's gambling,

Any investor knows his plans...They're investors who invest with fear, and if they invest, they only be curious to keep on investing or holding their profit and make withdrawal of their capital, so many investors have such an agenda before concluding to invest...but investor who understand investment processes of crypto, will not be in curious to pulled out the capital...

it's traders sell when they see that they have gotten some little profit from there investment, as a BTC investor we are meant to be consistently buying bitcoin and hodl for long up to 4-10 years or more before we can think of taking little profit and still keep holding.

They're people who invest for short-term and they're also people who invest for long-term...so those who invest for short-term will be interested to make withdrawal immediately they make a little profit...why long-term investors have a target why they invest on bitcoin..

[Jody.Drummer]

In my opinion, it is pointless to monitor the movement of the chart every minute, if we really intend to invest and have done it with an understood strategy such as DCA then checking it every minute is pointless, because it is better to just focus on the income that must be obtained to meet the needs and budget that must be invested in BTC because with the DCA strategy that is done this is better done consistently in terms of time and budget. And I agree with what you said, when we check it with a few minutes it's more like trading not investing.

Monitoring the price movements of the charts is one criteria of a trader so investors shouldn't do that cause it's unnecessary, they're buying to hold for long-term so there's no reason to keep monitoring charts expect the person is a trader in the guise of an investor cause that's what many so called investors are of lately.

 I'll rather advise maybe newbie investors who do that to channel that energy of monitoring charts to focus more on accumulation or try increase their discretionary to accumulate more cause at the end monitoring charts would only lead to making emotional decisions that would ruin the accumulation journey.
 

Yes, it is better to focus on increasing income, because when this income increases, the budget to buy BTC should also increase and of course this is better than monitoring the chart all the time. The accumulated budget for BTC is more reasonable to think about such as thinking about staying afloat or increasing it every time, but it may be difficult to increase it every time just by increasing the accumulated amount by occasionally for example once a month is good. And it's true what you said, monitoring the chart or the price in every moment will only lead to emotional decision making that can interfere with the investment we make.

[Brizi5000]

<..>

An investor is not supposed to be taking profit from his investment when he has not reached his over accumulation stage i don't see any need taking profit when you are supposed to be buying bitcoin that's gambling,

Any investor knows his plans...They're investors who invest with fear, and if they invest, they only be curious to keep on investing or holding their profit and make withdrawal of their capital, so many investors have such an agenda before concluding to invest...but investor who understand investment processes of crypto, will not be in curious to pulled out the capital...

it's traders sell when they see that they have gotten some little profit from there investment, as a BTC investor we are meant to be consistently buying bitcoin and hodl for long up to 4-10 years or more before we can think of taking little profit and still keep holding.

They're people who invest for short-term and they're also people who invest for long-term...so those who invest for short-term will be interested to make withdrawal immediately they make a little profit...why long-term investors have a target why they invest on bitcoin..

this is where the big difference between real investors and those traders who are just coming in for a quick profit-making mentality comes into play. a real long term investor will buy bitcoin and hold without showing emotional reaction irrespective of any market conditions his focus is mainly to just accumulate as much bitcoin to reach his accumulation target or over accumulation and hold for long term purpose and not panic to sell over a little downturn or when he is in any little short profit. but those traders who are only in for short profit shows emotions when buying and they panic sell due to little market downturns or whenever they see a quick profit.

i think for the sake of many newbies here it will be better we keep the discussion directly centred on bitcoin investment only because using the vague term crypto could signify investing in any shitcoins which could be misleading to them as those shitcoins doesnt pose any real value both short or long.

[JayJuanGee]

If a person has an income of $30k per year and he decides to invest $100 per week into bitcoin (17.3%), then maybe after 5 years he had invested $26k into bitcoin, and if bitcoin suddenly goes up 5x to be worth $130k in a fairly short period of time, the guy might not know how to deal with that situation.  Is he going to keep buying bitcoin?  Stop buying bitcoin? Or is he going to be tempted to sell some of his bitcoin?

Maybe he never had any investment that was worth that much money, so he has to learn how to deal with having that money and knowing that the price is volatile and that he can sell the bitcoin at any time that he wants.  Building up a habit of ongoingly buying bitcoin can help in these circumstances, but also building up back up funds can help in these types of circumstances, too.

That absolutely a high percentage of bitcoin returns that comes after constant accumulation of bitcoin for over 5years. But I’m a bit loss right now so what should be the investors decisions here or does it totally comes down to the investors to decide on what to do with the bitcoin or is there any positive way to approach a situation like this.
I’m just so curious because with high amount of bitcoin like this then such investors would be totally confused so what should be his decision here. Keeping up with more accumulation? Or selling off all his holdings? Or even maybe selling some and securing it what should be the decision here @JayJuanGee.

Well? I made that example with a set of facts that presumes a shooting up of the BTC price after the hypothetical guy had already spent 5 years investing in bitcoin and then the price 5x'ed after that... which surely could happen again, but we are not in that kind of a place currently...

So it could be that I would have to change the timeline in order for hypothetical the facts to work out.. I don't like to get too far off of the facts with my actual numbers, so let me give you some more facts related to the hypothetical, and perhaps you can answer the question regarding what the guy should do.

I am going to reframe the timeline so that the hypothetical guy had started accumulating $100 per week of bitcoin in September 2018, and by September 2024, he had already been accumulating $26k worth of bitcoin, which actually only added up to 1.32 BTC.  His average cost per BTC would have had been right around $20k at that time, in September 2023.

At the time in September 2023, the guy did not know that the BTC price was going to go up 6x from his cost per BTC in October 2026.. so it seems to me that the guy does not have enough bitcoin in September 2023 in order to conclude that he can modify his bitcoin accumulation practices of ongoingly buying $100 per week.

If he continued to accumulate bitcoin at $100 per week between September 2024 and now, he would have had invested another $9k and accumulated another 0.104 BTC (which would be about 1.424)... So why not continue to accumulate?

Since the guy is currently earning $30k per year, does the guy want to get to a point that he can quit his job and earn the same $30k per year from his bitcoin? or does he want to get to a higher amount of income from his BTC?

You should be able to decide these kinds of personal preference matters.

If the guy merely wants to be able to get $30k per year from his bitcoin with a 7% per year increase, then he still would need to have at least 4.91 BTC right now in order to be able to accomplish that..

The amount of bitcoin that he needs to sustain the same level of dollar income, such as $30k er year, will continue to be less and less with the passage of time, if we might be learning to valuate our bitcoin based on the 200-WMA or some other kinds of conservative bottom number.

Well I came up with a suggestion don’t know if it suit well but just an opinion though.
What if the investors reduces his or her weekly budget for the constant accumulation, so it would reduced the risk a little bit afterall the holder has made so much from the journey. Reducing their monthly or weekly budget would be a smart one to reduce the risk even if the budget is been reduced by 60% or more  

I don't see how that helps.  In the hypothetical the guy who invests $100 per week for 5 years is getting close to having had invested a whole years of his income into bitcoin.  If we add another nearly two years then we have the guy having had invested about $35k which would be 16% higher than his current income... yet he seems to ONLY be around 30% of his goal (1.424/4.91), yet the amount of BTC needed keeps coming down, so I am not sure what the problem is to continue to stack.  Y

ou seem to want to try to lessen your accumulation amount when the price is going up, with a hope to maybe buy more if the BTC price dips, yet if the guy had already gotten to a comfortable weekly investment amount, I cannot see any reason to lessen the amount that he is investing each week until maybe he starts to get closer to his goal.. maybe even within 50% of his goal.. whatever his goal might be...and yeah at the same time, these are judgement concerns about how much is enough or more than enough in regards to either how much bitcoin has been accumulated or perhaps how much money had already been invested.

What do you believe the guys goal is?  Sure, if he has another 4-8 years that he can wait, then he might not need to continue to invest, but it seems to me that if he has at least 4 more years before he is planning to draw from his stash then he can continue to add to his bitcoin holdings, even if he is feeling as if he had already invested a good amount into bitcoin already.

I doubt that there is any one best answer since guys need to tailor to both their income goals and also to their timeline in which they might want to start drawing from their bitcoin stash.

[CageMabok]

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An investor is not supposed to be taking profit from his investment when he has not reached his over accumulation stage i don't see any need taking profit when you are supposed to be buying bitcoin that's gambling, it's traders sell when they see that they have gotten some little profit from there investment, as a BTC investor we are meant to be consistently buying bitcoin and hodl for long up to 4-10 years or more before we can think of taking little profit and still keep holding.

Everyone can offer the best advice to any investor or trader, encouraging them to become serious investors by gradually buying Bitcoin over a long period of time. However, everyone has the desire and temptation to profit as soon as possible when they see it in the near future. This means that the temptation of small profits shouldn't be a factor in immediately selling their holdings entirely for anyone who already has Bitcoin in their personal wallet. Many investors have achieved greater profits after consistently buying Bitcoin and holding it for five or more years without being tempted by small initial profits.

Because when it comes to consistent long-term investing, many investors immediately sell Bitcoin when they see small initial profits. So, these mistakes aren't just made by traders; they're also made by investors who lack patience and are easily tempted by small profits, forgetting that Bitcoin can still yield greater returns in the future.