If someone is using the DCA method and then due to a little change in price the person panic, it means they are not long term holder but a trader.
I agree with you dude. Long-term investors don't usually panic unnecessarily when they're supposed to be standing strong. They are always firmed in their investment holdings with the assurance that their benefits or rewards isn't now but in years to come.
However, things isn't that hard as we think, is just a matter of choice and the way of approach towards it. Once you've made up your mind to hold regardless, then emotional at that point means nothing to you. All you're concerned of at that minute is how you can reach the peak of your investment journey. Therefore, achieving this is not difficult if we are determined, only when you're a trader, that is when you will always want your rewards like now. And I doubt if you can get anything better in such manner.
Panicking is a normal thing. We are all human, and I see it that it is somehow normal for an investor to panic if he sees Bitcoin dropping. He has been saving, and hoping for more increase in price so he could make more profits, and now it begins to drop in Price, even more drastically day by day. The human mind will panic, at least for a bit.
The earlier that a guy is in his bitcoin investment journey, then the less worried that he should be about the BTC price dropping, since he can buy more bitcoin when the price drops.
Of course, the longer that he had been accumulating bitcoin, then the more worried he may well become about the amount that he had already bought, since that amount that he bought would be dropping in value greater than any benefit that he perceives himself to be getting by ongoing and persistent buying of bitcoin.
The perspective of a guy who invests into bitcoin 4-10 years or longer should be to keep buying no matter the direction of the price, especially if he is in his first 4 years of accumulating bitcoin.
It could become more confusing about what to do the longer that a guy had been accumulating in terms of whether he should keep accumulating bitcoin or just stop accumulating bitcoin and just hold through the ups and downs, and sometimes guys might prematurely conclude that they had accumulated enough or more than enough when they probably should just continue to ongoingly and persistently buying rather than stopping or slowing down in the process, especially during periods of bitcoin price dips.
The more concern should be how he takes in the decline and what he does, I mean the investors action, that's what matters, and not if he panicked or not. However, at that point, a trader might panic and sell, while an investor, who is in for a long time investment will panic, overlook the market and stull HODL, because he believes in Bitcoin and in the value Bitcoin can create in a long time. Thus, your actions matters, not necessarily the immediate panic.
Sure. There is probably some truth in what you are saying @Perfect-World, since it seems to be the case that guys who consider themselves to be investors and if they are trying to think and/or act like an investor, then most likely they are going to be developing and reinforcing longer time perspectives in regards to how to consider their accumulation of bitcoin and the purposes of their accumulation of bitcoin.
Many of us cannot imagine real investors into bitcoin who might consider themselves as having timelines that are less than 4 years, since if guys are trying to play shorter term timelines, such as trying to play the waves of a cycle, then that comes off more as trading rather than investing.. so there seems to be something special in regards to developing a mindset that considers the bitcoin investment to be 4-10 years or longer, rather than shorter periods of time, such as less than 4 years.
You can divide investing into two parts. One is attack and the other is defense. Attack helps you grow your investment fund, for example, buying strategies and achieving goals. The most important part of long-term investment success is the defense part of the investment, acquiring the knowledge (related to financial management, risk management, investment management, etc.) necessary to sustain the investment fund in the long term
I feel the both are very important. Buying is as important as HODLing, because if you don't buy, or keep buying consistently, what then would you be HODLing, an empty sack of zero BTC? While you learn to HODL, also learn to buy, and consistently too. It's better that way.
Many of us understand that in order to get started buying bitcoin a bitcoin newbie does not need to have steady funds and/or even a good income or even any good financial and/or psychological situation, as long as he has discretionary funds he can get started buying bitcoin.
Yet, at the same time, we also know that everyone has expenses, so in order to live we need to be able to pay for our expenses or to be in a situation in which our living expenses are paid, and if we want to continue to buy bitcoin, then we have to continue to have funds that are in excess of our expenses.. so if we want to continue to build our bitcoin, we have to continue to have discretionary funds and likely we need to have some kind of an income flow in order to continue to be able to buy bitcoin on a fairly regular basis.
Sometimes there are going to be cases where bitcoin newbies want to build bitcoin and to continue to build their bitcoin holdings, yet they do not have enough money coming in to continue to buy bitcoin, so perhaps in those times they would be holding, even though their goal might be to continue to buy bitcoin and to build but they do not have enough income (discretionary funds) to be able to continue to buy bitcoin.
Both holding and ongoing buying of bitcoin is important, and sure it could take quite a bit of time to get a person's bitcoins holding up to a large enough size that he starts to believe that he has enough bitcoin or more than enough bitcoin, so he may well spend years and years both buying bitcoin and holding bitcoin and even trying to assess the extent to which he reasonably believes that he has enough bitcoin or more than enough bitcoin. None of us can judge for another person unless we sufficiently know his circumstances and his goals, and many times we need to judge our own situation rather than figuring out another person's situation in regards to his bitcoin accumulation and/or the strength of his cashflow management.
The amount of Bitcoin you deposit in the investment fund does not determine your success, but how long you can hold the fund.
You are laying too much emphasis on HODLing, as if buying is not important. You must buy to be able to HODL.
No doubts that holding BTC for long yields more income, that's true. But investors must also bear in mind the importance of consistent buying.
Take for instance two investors who are buying Bitcoin.
Mr A buys $50k worth of BTC and STOPS buying at the end of 2025, and is determined to HODL till Bitcoin hits a new ATH market price.
While MrB also buys $50k worth of BTC at the end of 2025 and is still ongoingly buying BTC consistently in 2026, using the DCA, determined to keep buying and HODLing. And hopefully, Bitcoin hits a new ATH market price at the end of 2027. At this point, who makes more profits??
What the fuck are you talking about @Perfect-World. Sure, there is no problem to compare a guy who bought his bitcoin in or prior to 2025 to a guy who continued to accumulate bitcoin after 2025, yet at the same time, you are talking about taking profits within a 3-year period of time?
Are you fucking lost? What thread are you in? We are talking about investing in this thread, and not trading, and if you believe that 3-years or less happens to be a long enough investment timeline merely based on the bitcoin being "in profits" then it seems that you have different ideas about investing than what we are tending to talk about in this thread.
So go ahead. Tell us what the fuck you are talking about when you are seeming to want to proclaim that it is relevant to this thread to be buying bitcoin in 2025, 2026 and maybe into 2027 and then selling them (or wet dreaming over your bitcoins) because they may happen to be in profits.
Why should anyone here (including guys who might have had started accumulating bitcoin in 2025) be trying to make those kinds of trades and/or to handle their bitcoin in terms of the extent to which they might be in profits in 2027?
You registered here about a month ago, and sure, you could have had started buying bitcoin in 2025, yet I hardly consider those kinds of time frames to even be close towards anyone being able to really build a meaningful bitcoin portfolio (even if he had been frontloading his bitcoin holdings), and even if I consider that there could be guys who might have had been able to buy (or reallocate) 2-ish years of their income in 2025 and/or 2026, it still would be a challenge for me to to consider very many scenarios in which guys like that might have had been able to even consider to take profits (in an investment sense) whether we are talking about price-based sustainable withdrawal or time based sustainable withdrawal - even though surely, price-based sustainable withdrawal does seem to have quite a bit more flexibility in regards thresholds for starting to sell, even though I personally don't consider those as "times for taking profits," but instead potential ways to manage bitcoin holdings (for insurance purposes) for guys who want to sell portions of their bitcoin as the price goes up.. .. yet also there continues to be ongoing tensions when guys are starting to sell any of their bitcoin prior to reaching overaccumulation status and when they consider themselves to be still in their accumulation stage. You can seem quite a bit of my discussions on sustainable withdrawal in
my sustainable withdrawal thread.
Is it MrA who bought $50k and stopped buying at 2025 while HODLing till 2027 when Bitcoin had a new ATH? Or
MrB who bought the same amount($50k) at the end of 2025, and kept on buying through 2026-2027 till Bitcoin hits a new ATH?
Obviously, MrB would have made much more profits than MrA because he bought more and also HODL. Thus, while we are laying emphasis on HODLing, we should also know that buying consistently is also very much important in your investment journey.
Sure. It tends to be better to keep buying rather than buy and then sit on your hands, but still your timeline takes away from your point, even if you are either not planning to sell in 2027 or other discontinuations of buying in 2027 based on your seeming distraction by the idea of "profits.