Buy Buy Buy or Sell Sell Sell?

[Joeboy]

If you however feel compelled by yourself to buy a dip and you have accumulated emergency funds that you have been pilling up over a period of time without any emergencies happening you can decide to take a part of the excess to buy a dip.

I don’t seem to share in this sentiment of one being compelled to buy in the dip by using his emergency funds to accumulate in such dip because for me I think it all still boils down to investing in bitcoin be it Dip buying or not. And why should a long term investor be compelled to buy bitcoin in the dip knowing fully well that he or she isn’t ready or prepared with a reserve funds for such dip buying. just as it’s advisable to invest in bitcoin with our discretionary income, and Dip buying being one of the bitcoin accumulation pattern isn’t an exception and should be done by a discretionary income if not a reserve funds available for such dip and not with our emergency funds. Emergency funds is meant to be used for a real life emergencies, and should be readily available and accessible because you can need it at any time.
Dip buying is not by force or is it a must buy and that is why we ought to be careful with this dip buying so as not to mess up with our finances. Dip buying makes sense when you’re already prepared with a reserve funds to use and accumulate more in such a reduced price, if not, you just have to focus more on figuring out a discretionary income to regularly accumulate bitcoin as you’ve initially been doing with your ongoing DCA and gradually build up your portfolio.

That's right, emergency funds are safety cushion, and as such they should never be used for dip buying, coz doing otherwise simply puts that person and his investment at risk anytime an unexpected situation turns up. As the name implies, Emergency fund should only be used to tackle real life emergency situation.  Dip buying is best done when an investor already has a reserve funds or some form of other extra cash gotten from certain monetary source like gift from friends etc......And honestly speaking is best that folks continue using their discretionary income to DCA as usual as they  can while building a reserve on the other side, and when the dips comes, they can take advantage of that without distorting their investment or even financial stability.

[Churchillvv]

Snip

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That's right, emergency funds are safety cushion, and as such they should never be used for dip buying, coz doing otherwise simply puts that person and his investment at risk anytime an unexpected situation turns up. As the name implies, Emergency fund should only be used to tackle real life emergency situation.  Dip buying is best done when an investor already has a reserve funds or some form of other extra cash gotten from certain monetary source like gift from friends etc......And honestly speaking is best that folks continue using their discretionary income to DCA as usual as they  can while building a reserve on the other side, and when the dips comes, they can take advantage of that without distorting their investment or even financial stability.

I don’t know who gave you guys this type of orientation that emergency funds can’t be used for something like this or it should be rigid everyone must follow one pattern which was coined by another person but I’m here to disagree with you that emergency funds can be used to buy the dip , as long as it is able to cover you for at least 3 to 6 months then taking a little out of it to buy the dip won’t kill you so stop putting everyone to just one direction and disputing ideas or inspirations which can be tested and probably work out just because you have a specific belief system on ways to acquire bitcoin.

[Qhunman]

I don’t know who gave you guys this type of orientation that emergency funds can’t be used for something like this or it should be rigid everyone must follow one pattern which was coined by another person but I’m here to disagree with you that emergency funds can be used to buy the dip , as long as it is able to cover you for at least 3 to 6 months then taking a little out of it to buy the dip won’t kill you so stop putting everyone to just one direction and disputing ideas or inspirations which can be tested and probably work out just because you have a specific belief system on ways to acquire bitcoin.

As far as I know, Tapping into your Emergency funds to buy Bitcoin no matter how little is wrong. Emergency funds are created to protect your Bitcoin investment and must remain untapped except when you're dealing with an Emergency situation. They is what is called a Reserve funds,it is used to cover extra expenses. What you needed to buy the Dip is a Reserve Funds. Tapping into your Reserve fund is the appropriate thing you should have done rather tapping into your Emergency funds to buy Bitcoin that would seems you're Gambling.

[Churchillvv]

I don’t know who gave you guys this type of orientation that emergency funds can’t be used for something like this or it should be rigid everyone must follow one pattern which was coined by another person but I’m here to disagree with you that emergency funds can be used to buy the dip , as long as it is able to cover you for at least 3 to 6 months then taking a little out of it to buy the dip won’t kill you so stop putting everyone to just one direction and disputing ideas or inspirations which can be tested and probably work out just because you have a specific belief system on ways to acquire bitcoin.

As far as I know, Tapping into your Emergency funds to buy Bitcoin no matter how little is wrong. Emergency funds are created to protect your Bitcoin investment and must remain untapped except when you're dealing with an Emergency situation. They is what is called a Reserve funds,it is used to cover extra expenses. What you needed to buy the Dip is a Reserve Funds. Tapping into your Reserve fund is the appropriate thing you should have done rather tapping into your Emergency funds to buy Bitcoin that would seems you're Gambling.

I like to put it to you that your idea of purchasing bitcoin is bond around a certain limit and in life you can’t always be at one spot, not even bitcoin itself stays in one spot right now it’s breaking patterns hence I am of the opinion you seem to be retarded to think that using your emergency fund which basically won’t be all but a part of it to grab an opportunity of buying in discount is wrong just because you learnt one principle of economics how we reserve funds is as good as it helps you to grab opportunities like the dips, in my view and experience of life flexibility makes you more productive and efficient than rigidity not even live is rigid, emergency funds can’t be limited to bad experiences or situations emergency can also be a very quick drop of bitcoin that you seem to stand an opportunity to grab a share of bitcoin that on a normal would take a long time to achieve yet you are doing the rest of your investment as normal.

[JayJuanGee]

With extra cash you can boost returns, but it does break that strict consistency and can expose you to larger drawdowns if the market dips right after you pile in. Using discretionary income for those extra buys is a good way to keep your core DCA safe while still taking advantage of opportunities.
Just keep buying the same amount regardless of market moves, and you’re basically averaging out the price over time.

If conditions are declining, regardless of the funds you use, you'll still experience a loss after buying, unless the price itself can remain stable after buying with discretionary funds or whatever funds you've set aside. However, your suggested option is also a good one if your goal is to continue buying regularly and averaging the price over time, as price drops and rises vary significantly from month to month. Regardless, I expect Bitcoin to surpass $100,000 again by the end of this month and return to its most recent ATH level next month.

You have made some valid points, but where I have a little problem is the statement in your last line, that you expect Bitcoin to surpass $100,000 again by the end of this month. How sure are you about that statement? You know it can be very misleading since we can only be predicting the price and not sure of the next minute price. Offcourse, we know that Bitcoin can go up to that, or even fall below where it is now, and we can't really be certain about its price at the end of the month or even the year. Due to its volatility, it  can spring up or down, and investors are just left with the mindset of consistent buys and Hodl since it can still become a store of value in future, even though we are not sure. So stating that you expect bitcoin to surpass $100,000 is not a sure statement to make to me

Bitcoin is already a store of value.

The mere fact that bitcoin has volatility does not disqualify it from being a store of value.

Zoom out a wee bit to see how well bitcoin has stored value through the years especially for anyone holding (and/or putting additional value in) for 4 years or longer..  Sure, you could get caught up in short term fluctuations in BTC's price,yet that is not really telling you very much about how bitcoin has been able to store value for those who are trying to store for longer timelines.  

There is no reason to believe that bitcoin's store of value attributes are going to disappear into the future, even though the upside appreciation is likely to slow down relative to its historical performance.

Also one of the reasons that I prefer to assess the value of my own BTC (and I suggest that others do something similar) based on the 200-WMA (which would be a bottom price) is so that I don't get distracted by the short term ups and downs in the spot price.  Bitcoin's 200-WMA has so far ongoingly gone up, and it never has gone down, so there seems to be some reasonable store of value element in that always up dynamic (at least so far), and of course, if we are buying and selling we are going to be doing that at BTC's spot price, which so far has tended to spend an overwhelming majority of its time at least 25% higher than the 200-WMA.

You are absolutely correct and this also depend on your discretionary income because how big or small, is what causes the variation in our DCA accumulation, if our discretionary income is huge we would decide to increase our accumulation amount and if it is low we can also decide to reduce so that it doesn't cause problem and if it is constant then our DCA accumulation amount will also remain constant for that particular point in time untill there is a change.

What can be a challenge for an investor to invest a particular amount of money into bitcoin weekly using DCA method boils down to his basic needs and monthly expenses. If your income is $300 weekly and your discretionary income is $100, you will see that sometimes, his basic needs and expenses will be above $200 which is the actual money to take care of himself. It can be $220, you can see that his discretionary income has reduced to $80, he will buy less sats.

On a different week, he can have a lesser expenses of $170, at this point the investor has $130 as his discretionary income with $30 extra. He can buy more bitcoin with his discretionary income. You don't need to force yourself to that's compulsory for you to buy the exact amount of bitcoin weekly only if you're accumulating in relatively whimpy way.

FTFY

The fact of the matter is that how aggressive or how whimpy a person chooses to be is quite discretionary.. meaning guys can choose the levels..

and sure you are technically correct that if a person sets his weekly DCA to be an exact amount each week, he will likely need to make sure that he does not overdo it, so he has to set it to such an amount that is not going to get him into trouble.. so if he is just ignoring his weekly DCA and just allowing his DCA to trigger every week at a set amount, then surely he is not being as aggressive as he may well not investing into bitcoin as aggressively as he could be, yet it is still possible that he might have figured out a way to set a fairly aggressive amount and then if his cashflow gets him in trouble, he just has some extra back up funds that will allow for such irregularities in his cashflow.

It seems to me that the longer a person is in bitcoin, then he may well end up holding more cash, just for a variety of reasons and merely because he can, so he might no longer be concerned about how aggressively he is adding to his bitcoin stash.. Even if he has not reached his overaccumulation goal, he can see that he is well on his way and even perhaps ahead of his expected schedule.. so he might start to consider that he can relax his bitcoin accumulation and perhaps make more space for extra dollars to be available rather than ongoingly maximizing his bitcoin investment as he had been doing in the first few years of his bitcoin investment.  So in that regard, without knowing details, we cannot really proclaim another person is being too aggressive or too whimpy, even if we would have had drawn the lines in different ways.

Maybe we could say that instead of setting your DCA to automatically withdraw at $70 each week, why don't you perform your weekly DCA's manually, and sure you might have some weeks that are going to still end up $70, yet overall you are likely going to average more like $100 or even $120 per week based on your actual income, yet guys have to figure out if they want to squeak the extra DCA.. and sure in 10 years instead of investing an average of $70 per week, if the guy ended up investing $120 per week, he would end up with $62,400 invested into bitcoin rather than $36,400, so that could make a pretty BIG difference in terms of both the amount invested but also the amount that the BTC might have had appreciated in value over the 10 years...

yet again, these are trade offs and some guys would rather be a little less aggressive so that they are not as worried about sometimes running out of cash.. and perhaps they can make adjustments every few months for the extent to which they might have extra cash piling up that could have had been put into bitcoin, so maybe they have their weekly DCA going, yet every 2-3 months they will do an extra lump sum based on whatever extra level of cash they had building up during that time.

[edited out]

Who would want to see his portfolio declined? No one, specially newbies. But that's why we called "diamond hands', those investors that doesn't care or at least not scared and don't panic even if their portfolio went down so hard in the current dip from $125k->$90k'ish. They are still going to hold on it and would never sell despite the current crash or any indication that we are in the bear season already. For new investors, if they do their study of the market, and praying that the market dipping to their price to re-enter, then this is the perfect opportunity for them no doubt about it. They could start as early as today to invest, DCA, and get ready their discretionary funds and go and buy within their budget.

Newbies should be happy that the price fell, yet surely there are some newbies who might have had lump sum invested a lot in higher prices, such as anywhere between $110k and $126k, so then if they keep buying small amounts, they still have a large portion that they had already invested. 

Of course that could have had happened.  The BTC price was completely above $100k between early May and early November, so anyone coming into bitcoin int he past 6 months is likely to have quite a few BTC that are more expensive than the current price... yet if anyone is in bitcoin for 4-10 years or longer as an investor, then he would likely just keep buying whether weekly or otherwise.  Sure it could be possible that he does not have very much money for additional buys because he already put a bunch of his free money into bitcoin.

Whether newbie or not, there are needs to be prepared for BTC price moves in either direction, which is also part of the rationale to attempt to preserve some abilities to continue to buy bitcoin on a weekly basis rather than just buying once and forgetting about it.  I am not much of a fan for holding back to buy dips, yet a person who might have had front loaded his investment at higher prices, then that kinds of a guy might have been in a better position to have had kept some of the money available for buying on dips in order to potentially off-set the lump sum investment that he had made at that then current price.

I don’t know who gave you guys this type of orientation that emergency funds can’t be used for something like this or it should be rigid everyone must follow one pattern which was coined by another person but I’m here to disagree with you that emergency funds can be used to buy the dip , as long as it is able to cover you for at least 3 to 6 months then taking a little out of it to buy the dip won’t kill you so stop putting everyone to just one direction and disputing ideas or inspirations which can be tested and probably work out just because you have a specific belief system on ways to acquire bitcoin.

As far as I know, Tapping into your Emergency funds to buy Bitcoin no matter how little is wrong. Emergency funds are created to protect your Bitcoin investment and must remain untapped except when you're dealing with an Emergency situation. They is what is called a Reserve funds,it is used to cover extra expenses. What you needed to buy the Dip is a Reserve Funds. Tapping into your Reserve fund is the appropriate thing you should have done rather tapping into your Emergency funds to buy Bitcoin that would seems you're Gambling.

We might be arguing about semantics and the truth of the matter is that the various kinds of back up funds are fungible, yet each of us likely needs to set boundaries between his funds in order to know how far he is going to authorize himself to draw down his various back up funds... so part of the reason that emergency funds has such a label (or seems that it should be) so that guys can put their own alert in terms of how far they might be willing to draw down their various back up funds for non-emergency purposes, and then to say that it is too risky to draw the back up funds down any further because those remaining funds are emergency funds.

It is also true that when we are brand new to investing into bitcoin, we might not have very many back up funds, so we are building them up, and surely in our first year or so investing into bitcoin, we might not even be able to build our back up funds and/or our bitcoin investment up to 3 months of our expenses. .and it could take even longer to build up our back up funds to 3 months of our expenses if we end up tapping into them from time to time, so surely it can take some practice to figure out how much to put in each (the back up funds and the bitcoin investment) and how to continue to build each..  Some guys might be willing to take more chances to either invest into bitcoin or to not build up their back up funds since they are wanting to buy the dip and so they could inadvertently end up putting themselves at more risk than they had expected when they are ongoingly engaging in those kinds of behaviors. 

None of us can exactly tell another guy what his line needs to be, yet sometimes guys might put themselves into their own pickle without realizing it, because they had been taking more risk than they should have had been doing, and so then by the time, they are in a pickle, then they cannot go back and fix their errors since they might end up having to tap into some of their bitcoin at a time that was not of their own choosing which could hamper their progress when they should have had been buying bitcoin on dips like our current dips, but instead they are selling to cover some of their expenses that had unexpectantly come in and they do not have any other funds to cover such extra expenses (which also might include some temporary loss of income, too).

[edited out]

I like to put it to you that your idea of purchasing bitcoin is bond around a certain limit and in life you can’t always be at one spot, not even bitcoin itself stays in one spot right now it’s breaking patterns hence I am of the opinion you seem to be retarded to think that using your emergency fund which basically won’t be all but a part of it to grab an opportunity of buying in discount is wrong just because you learnt one principle of economics how we reserve funds is as good as it helps you to grab opportunities like the dips,

Buying bitcoin at a discount is not an emergency, yet if you have extra emergency funds, you may well be referring to reserve funds since you had assigned flexibility to such funds that involves the ability to use them to buy bitcoin.

you can call them whatever you like, but if you are mixing up emergency funds and reserve funds, then you might not know exactly where your border is... so for example, if you have more than 3 months of your expenses in a back up funds and maybe you even have close to 5 months, and you call all of those back up funds emergency funds.  maybe some guys would call 3 months of that as emergency funds and the other 2 months would be reserve funds, so that you have more flexibility with the reserve funds, but calling the 3 months portions emergency funds is a way of you setting your own self-imposed limit in regards to how low you will go and that you have (on your own) determined that you are not going to go below a certain point for your BTC buys.. since that would be your emergency funds rather than your reserve funds.. .

So then it may not really matter what you call them, yet you could still get yourself into trouble if you are not attempting to draw a line in regards to how low you can go or if you end up drawing the line too low and then once you buy the bitcoin with those funds, then you could be in trouble if some emergency (such as loss of income and/or increase in expenses) were to come after you had already used the money to buy bitcoin... not even accounting for which way the BTC price might end up going from the time of your purchase.. maybe the BTC price continues to go down after your purchase?

in my view and experience of life flexibility makes you more productive and efficient than rigidity not even live is rigid,

You self impose your rigidity, and yeah, other guys might have different limits, and also guys might use differing terms, yet hopefully each of us might be able to recognize that there is importance in keeping certain kinds of cash cushions, whether we call them emergency funds, reserve funds or back up funds... and if we end up getting so excited about the dip that we overly use up our reserve funds which causes us to end up tapping into our emergency funds, then maybe we have even gone beyond our own self-imposed limits?  and maybe we won't even realize that we went beyond our limits until a few weeks later and some shit goes down, and maybe not even unexpected shit, but our income might shrink and/or our expenses might go up and then we are in a situation where we might have had contributed to our own emergency situation in circumstances that would have not otherwise have had been an emergency and so then maybe whatever cash that we have remaining is on the low side.. and then maybe bitcoin had taken another dip down from $92k and then it goes to $82k and we really want to buy bitcoin at those $82k prices, but we have absolutely no money because we had some extra expenses and/or loss of income, and we end up having to sell bitcoin at a time that we would have had preferred to have had been buying some...

No one can determine those boundaries except you, and on the face of it, buying the dip does not fit in the category of an emergency, even though it may well fit into a category in which we had purposefully holding some extra reserve funds on the side to be able to buy bitcoin with those funds. and those funds were dedicated to either buying ourselves a new Iphone 17 (when we already have the iphone 15) or alternatively, buying bitcoin.

emergency funds can’t be limited to bad experiences or situations emergency

They can be.  Each guy can figure out which things fit into which categories, and some guys have determined that they won't let their cash go below a certain point absent specific kinds of expenses or otherwise that they ran out of reserve funds and the have to then decide is it better to buy bitcoin with that $1,500 or to buy your daugher the birthday gift that you ahd promised that you were going to buy by no later than November 24th... so then you are left with a dilemma about how to use the money since you don't have any other funds.  Sometimes those kinds of dilemmas happen, and many of us want to keep a sufficient enough cash cushion so that we will not get put into a dilemma of following through with our promise to our daughter or to buy bitcoin on the dip..  No one else can answer the question for you or to impose the limits on you (except maybe if you let your wife do it), so we are tending to impose those limits on ourselves in order to hopefully give ourself some cushion and perhaps to determine which funds are for what and how low we will allow our funds go before we might have to start taking emergency actions, so for example some guys don't want to tap into their emergency funds no matter what, unless they might know that it is merely a 1-3 days of a cash shortage that will be replenished..so they purposefully create categories, and when their funds are used up in the various categories the situation becomes more and more dire..  and perhaps they might even consider that they might have to go get another job or they might have to sell something from their garage if certain parts of their backup funds (whether they call it emergency funds, reserve funds, daughter birthday fund or something else) go below certain amounts.

can also be a very quick drop of bitcoin that you seem to stand an opportunity to grab a share of bitcoin that on a normal would take a long time to achieve yet you are doing the rest of your investment as normal.

Sure, you might have specific funds that you already have set aside for that dip... and it might even have alternative possible uses (like I mentioned buy the Iphone 17 or buy some bitcoin and wait to buy the iphone 17 in 3 months).  I doubt it is disputable even if guys might be referring to these funds in different ways and they might even have strict ideas about only limited kinds of exceptions to dip into emergency funds and bitcoin being in a dip is not an emergency and/or it does not fit in their way of conceptualizing the limitations on the emergency funds that they are not going to tap into unless it fits certain categories of reasons to override and to get money from it...and many of us consider the use of emergency funds as something that needs to be replaced as soon as possible yet other forms of reserve funds are optional to replace them or not.

[Gallar]

]
As a Bitcoin investor dedicated to the DCA strategy, I believe we must adhere to it diligently. Having too many principles will negatively impact our investments and our mentality. Therefore, the main point of Bitcoin investment is to focus on one goal and one strategy. I believe this is better than worrying about what will happen when the Bitcoin market drops, or anything else. Essentially, we must remember that we are investing in Bitcoin for the long term, and we don't need to take actions that will cause us headaches right now.

It's better to use safer and more consistent methods to stay sane when investing in Bitcoin. Believe me, when you use multiple methods when investing in Bitcoin, your mindset will gradually change, especially regarding your perspective on long-term investments. So, there's no need to be confused or panic when Bitcoin prices drop just let it be. The most important thing is to remain consistent with the DCA strategy we're implementing in Bitcoin.

A bitcoin investors is not limited to any of the strategies. So it is wrong to say that an investor should focus on only one strategy. As long as the discretionary income is there an investor can buy the dip while doing DCA . This will not in any way affect the investor negatively as you may think. It will help the investor to increase or exploits the advantages that comes with this strategies.

Yes, you're right, investing in Bitcoin isn't monotonous, and it all depends on the investor's approach. So, whether you choose to use one or two strategies, it's certainly possible. But here, I just want to share that it's better to invest in Bitcoin without using too many strategies. I think too many strategies can be a bit confusing. So, I think using just one strategy, DCA, is better than using multiple strategies. But I also know that everyone has different opinions on this, so I'm not forcing anyone to follow my advice. I'm simply sharing my experience investing in Bitcoin. I've been investing in Bitcoin for several years and have tried several strategies, and of all of them, DCA has proven to be the easiest and most comfortable for me to implement in my Bitcoin investments. So, I'll stick with this, because I've found DCA to be truly a good fit for my Bitcoin investments.

[Barrykbest]

I don’t know who gave you guys this type of orientation that emergency funds can’t be used for something like this or it should be rigid everyone must follow one pattern which was coined by another person but I’m here to disagree with you that emergency funds can be used to buy the dip , as long as it is able to cover you for at least 3 to 6 months then taking a little out of it to buy the dip won’t kill you so stop putting everyone to just one direction and disputing ideas or inspirations which can be tested and probably work out just because you have a specific belief system on ways to acquire bitcoin.

As far as I know, Tapping into your Emergency funds to buy Bitcoin no matter how little is wrong. Emergency funds are created to protect your Bitcoin investment and must remain untapped except when you're dealing with an Emergency situation. They is what is called a Reserve funds,it is used to cover extra expenses. What you needed to buy the Dip is a Reserve Funds. Tapping into your Reserve fund is the appropriate thing you should have done rather tapping into your Emergency funds to buy Bitcoin that would seems you're Gambling.

I like to put it to you that your idea of purchasing bitcoin is bond around a certain limit and in life you can’t always be at one spot, not even bitcoin itself stays in one spot right now it’s breaking patterns hence I am of the opinion you seem to be retarded to think that using your emergency fund which basically won’t be all but a part of it to grab an opportunity of buying in discount is wrong just because you learnt one principle of economics how we reserve funds is as good as it helps you to grab opportunities like the dips, in my view and experience of life flexibility makes you more productive and efficient than rigidity not even live is rigid, emergency funds can’t be limited to bad experiences or situations emergency can also be a very quick drop of bitcoin that you seem to stand an opportunity to grab a share of bitcoin that on a normal would take a long time to achieve yet you are doing the rest of your investment as normal.

Talking about flexibility, using emergency funds to buy the dip can actually backfire. Emergency funds are meant for unexpected real-life situations like medical needs, job loss, or urgent repairs  not for investment opportunities, even if the market looks perfect.
What you’re describing sounds more like reserve funds, which are extra savings you purposely keep flexible for things like short-term opportunities. Mixing them up can put you in a tight spot later. If you drain your emergency funds to buy Bitcoin and something unexpected happens, you might end up having to sell your coins at a loss just to cover expenses.
So yes, flexibility matters but there should always be a clear line between your safety net (emergency fund) and your growth fund (investment reserve). That’s how you protect yourself both financially and mentally during volatile markets.

[Barikui1]

Talking about flexibility, using emergency funds to buy the dip can actually backfire. Emergency funds are meant for unexpected real-life situations like medical needs, job loss, or urgent repairs  not for investment opportunities, even if the market looks perfect.

You are actually right and I think that we both share the same sentiment on this issue here, an emergency funds is strictly reserved for emergency purpose, so investing with it is like gambling with your investment which may likely not ends well if carried out.
The funds kept aside to buy aggressively or accumulate during the dip is reserve funds, not emergency funds that stands as the last layer of protection to your Bitcoin investment.

[Bigjoe33]

As a Bitcoin investor dedicated to the DCA strategy, I believe we must adhere to it diligently. Having too many principles will negatively impact our investments and our mentality. Therefore, the main point of Bitcoin investment is to focus on one goal and one strategy.

It's better to use safer and more consistent methods to stay sane when investing in Bitcoin. Believe me, when you use multiple methods when investing in Bitcoin, your mindset will gradually change, especially regarding your perspective on long-term investments.

Focusing on a particular strategy is cool as it allows you to be consistent and dedicated to your accumulation. But I want to add that I believe an investor is not in any way limited to one accumulation strategy. I believe an investor who has a long term plan and have over the years in consistent DCA buys saved up some extra cash in reserve funds can as well buy from the Dip to increase his stash size and still not be distracted from his long term investment plan. Even the lump sum, he could also buy if he financially stable enough looking at his back up funds he has kept, while the weekly or monthly DCAing is still on, because he must ensure that the weekly or monthly DCAing should NOT be put on hold, it must be running.

So I believe we can still do some Dip buying or lump sum, depending on your back up funds strength which you have kept aside, but the DCA still ongoing and not be distracted from our main goal of consistent accumulation of Bitcoin and Hodl for long. Anything different from this without proper thoughts and plans might screw up the investment plan and can lead to distraction from the initial plan.

[Gost ms]

Talking about flexibility, using emergency funds to buy the dip can actually backfire. Emergency funds are meant for unexpected real-life situations like medical needs, job loss, or urgent repairs  not for investment opportunities, even if the market looks perfect.

You are actually right and I think that we both share the same sentiment on this issue here, an emergency funds is strictly reserved for emergency purpose, so investing with it is like gambling with your investment which may likely not ends well if carried out.
The funds kept aside to buy aggressively or accumulate during the dip is reserve funds, not emergency funds that stands as the last layer of protection to your Bitcoin investment.

You should never buy aggressively with reserve funds. Reserve funds are created to meet future big expenses, etc. Reserve funds are created for many reasons. However, if you invest or buy aggressively with reserve funds, then if you have to make any big expenses, how will you deal with them at that time, then you will have to take money from your emergency fund. But taking money from emergency funds for such small expenses will never be the right decision.

It will be very good to divide the funds into three levels. Such as emergency fund, reserve fund, cash. If a person divides his funds in this way into three levels, then it will be very good for him. If there is any kind of financial crisis, he can take money from cash to deal with the financial crisis. If it is not possible to deal with the financial crisis with cash, then the reserve fund, if not able to deal with the reserve fund, then the emergency fund has to be used.

If someone wants to buy aggressively during the downturn. Then he can save money separately to buy aggressively during the decline. However, it would be better to invest consistently than to save money to buy aggressively during the decline. Because the decline is an unknown future, no one can say when the decline will occur. If you do not wait for the decline and continue to buy consistently, it will be good for your portfolio.

[PhilosopherKing]

Talking about flexibility, using emergency funds to buy the dip can actually backfire. Emergency funds are meant for unexpected real-life situations like medical needs, job loss, or urgent repairs  not for investment opportunities, even if the market looks perfect.

You are actually right and I think that we both share the same sentiment on this issue here, an emergency funds is strictly reserved for emergency purpose, so investing with it is like gambling with your investment which may likely not ends well if carried out.
The funds kept aside to buy aggressively or accumulate during the dip is reserve funds, not emergency funds that stands as the last layer of protection to your Bitcoin investment.

You should never buy aggressively with reserve funds.

Why not? Reserve funds are those extra money outside of our emergency funds, and the major thing that makes a reserve funds what it is, is it's flexibility. Flexibility here means that it isnt locked up like emergency funds for one purpose only, rather it can be used to do anything, anything like meeting up with even our personal needs, it can even be used for buying the dip or any kind of aggressive buying which of course shouldn't be beyond your financial capacity.      Since reserve funds are flexible, the way you use it depends on your situation or what you reserved the money for.

[Father111]

This Bitcoin price action seems a bit different than other times. You will see that the price has been in a gradual and gradual downward trend and is currently at a lower price. The Bitcoin price is part of a temporary reaction that could soon start a bull run. DCA investors continue to buy Bitcoin regardless of the price, so the price drop is the right time for them to buy aggressively.

Real investors are not worried about the price of Bitcoin because most of them know that the price will increase significantly soon and the correction period is very short. The price correction may continue for a few more days and prudent investors are continuing to buy Bitcoin.

That's why you have DCA strategy so you don't have to be bothered with price action cause you can't actually tell the future , we are bearish at the moment , and same time the market can still take urge turn in to bullish anytime so we know we can't keep watching the market every time, so to avoid such stress that's where DCA comes in which is the purchasing of bitcoin with a fixed amount in a given time either weekly or monthly, at different price intervals either up or down  (which same time saying don't be bother with the market movement) because DCA is all about accumulating bitcoin no matter the market conditions either when the price is low or high.

You are right with your DCA explanation, but I just want to point something out that buying bitcoin through DCA must not be with a fixed amount. There are weeks or months that an investor might decide to go high or low with his DCA amount depending on the level of things that he might want to achieve within that time, and also depending on the level of inflow the investor got within that week or month. The point is just that DCA amount can vary from week to week or month to month. It mustn't be a fixed amount before it will be considered DCA.

I believe that buying Bitcoin with fixed versus variable amounts depends on the income nature of the investor since a fixed income earner might have carefully estimated his expenses for the period and identified his discretionary income from where he carves out the part of it he invest into Bitcoin and the remainder which he pushes into building out backup funds.

For an investor with variable income, maybe a contractor for example which handles varying quantity of projects in which some he would have more profits and some lesser, it's very important that the investor has a certain percentage of his discretionary income that he invest into Bitcoin on a normal setting and on the occasion he has a larger discretionary income from bigger profits, he can choose to increase his allocation into Bitcoin. That way the investor has flexibility of allocating funds to his portfolio since his discretionary income is variable.

To an investor with little portfolio, this bearish is the right time to start one's investment into Bitcoin because its cheaper  to accumulate reasonable Bitcoin using DCA to navigate through the market and hold for as long as possible in order to have the bullish of the coin to set in, where most investors activate sales in order to actualize more profits as  an investor...

[Crytohillss]

With extra cash you can boost returns, but it does break that strict consistency and can expose you to larger drawdowns if the market dips right after you pile in. Using discretionary income for those extra buys is a good way to keep your core DCA safe while still taking advantage of opportunities.
Just keep buying the same amount regardless of market moves, and you’re basically averaging out the price over time.

If conditions are declining, regardless of the funds you use, you'll still experience a loss after buying, unless the price itself can remain stable after buying with discretionary funds or whatever funds you've set aside. However, your suggested option is also a good one if your goal is to continue buying regularly and averaging the price over time, as price drops and rises vary significantly from month to month. Regardless, I expect Bitcoin to surpass $100,000 again by the end of this month and return to its most recent ATH level next month.

You have made some valid points, but where I have a little problem is the statement in your last line, that you expect Bitcoin to surpass $100,000 again by the end of this month. How sure are you about that statement? You know it can be very misleading since we can only be predicting the price and not sure of the next minute price. Offcourse, we know that Bitcoin can go up to that, or even fall below where it is now, and we can't really be certain about its price at the end of the month or even the year. Due to its volatility, it  can spring up or down, and investors are just left with the mindset of consistent buys and Hodl since it can still become a store of value in future, even though we are not sure. So stating that you expect bitcoin to surpass $100,000 is not a sure statement to make to me

Stacking to a steady DCA keeps things discipline but having a bit of flexible cash on the side really does help one take advantage of those dips without throwing off your whole strategy it is a kind of the best of both worlds , honestly your baseline plan to stay consistent and one still get the room to be opportunistic when the market cycle gives one a good setup.

Bitcoin is already a store of value.

The mere fact that bitcoin has volatility does not disqualify it from being a store of value.

Zoom out a wee bit to see how well bitcoin has stored value through the years especially for anyone holding (and/or putting additional value in) for 4 years or longer..  Sure, you could get caught up in short term fluctuations in BTC's price,yet that is not really telling you very much about how bitcoin has been able to store value for those who are trying to store for longer timelines.  

There is no reason to believe that bitcoin's store of value attributes are going to disappear into the future, even though the upside appreciation is likely to slow down relative to its historical performance.

Also one of the reasons that I prefer to assess the value of my own BTC (and I suggest that others do something similar) based on the 200-WMA (which would be a bottom price) is so that I don't get distracted by the short term ups and downs in the spot price.  Bitcoin's 200-WMA has so far ongoingly gone up, and it never has gone down, so there seems to be some reasonable store of value element in that always up dynamic (at least so far), and of course, if we are buying and selling we are going to be doing that at BTC's spot price, which so far has tended to spend an overwhelming majority of its time at least 25% higher than the 200-WMA.

You are absolutely correct and this also depend on your discretionary income because how big or small, is what causes the variation in our DCA accumulation, if our discretionary income is huge we would decide to increase our accumulation amount and if it is low we can also decide to reduce so that it doesn't cause problem and if it is constant then our DCA accumulation amount will also remain constant for that particular point in time untill there is a change.

What can be a challenge for an investor to invest a particular amount of money into bitcoin weekly using DCA method boils down to his basic needs and monthly expenses. If your income is $300 weekly and your discretionary income is $100, you will see that sometimes, his basic needs and expenses will be above $200 which is the actual money to take care of himself. It can be $220, you can see that his discretionary income has reduced to $80, he will buy less sats.

On a different week, he can have a lesser expenses of $170, at this point the investor has $130 as his discretionary income with $30 extra. He can buy more bitcoin with his discretionary income. You don't need to force yourself to that's compulsory for you to buy the exact amount of bitcoin weekly only if you're accumulating in relatively whimpy way.

FTFY

The fact of the matter is that how aggressive or how whimpy a person chooses to be is quite discretionary.. meaning guys can choose the levels..

and sure you are technically correct that if a person sets his weekly DCA to be an exact amount each week, he will likely need to make sure that he does not overdo it, so he has to set it to such an amount that is not going to get him into trouble.. so if he is just ignoring his weekly DCA and just allowing his DCA to trigger every week at a set amount, then surely he is not being as aggressive as he may well not investing into bitcoin as aggressively as he could be, yet it is still possible that he might have figured out a way to set a fairly aggressive amount and then if his cashflow gets him in trouble, he just has some extra back up funds that will allow for such irregularities in his cashflow.

It seems to me that the longer a person is in bitcoin, then he may well end up holding more cash, just for a variety of reasons and merely because he can, so he might no longer be concerned about how aggressively he is adding to his bitcoin stash.. Even if he has not reached his overaccumulation goal, he can see that he is well on his way and even perhaps ahead of his expected schedule.. so he might start to consider that he can relax his bitcoin accumulation and perhaps make more space for extra dollars to be available rather than ongoingly maximizing his bitcoin investment as he had been doing in the first few years of his bitcoin investment.  So in that regard, without knowing details, we cannot really proclaim another person is being too aggressive or too whimpy, even if we would have had drawn the lines in different ways.

Maybe we could say that instead of setting your DCA to automatically withdraw at $70 each week, why don't you perform your weekly DCA's manually, and sure you might have some weeks that are going to still end up $70, yet overall you are likely going to average more like $100 or even $120 per week based on your actual income, yet guys have to figure out if they want to squeak the extra DCA.. and sure in 10 years instead of investing an average of $70 per week, if the guy ended up investing $120 per week, he would end up with $62,400 invested into bitcoin rather than $36,400, so that could make a pretty BIG difference in terms of both the amount invested but also the amount that the BTC might have had appreciated in value over the 10 years...

yet again, these are trade offs and some guys would rather be a little less aggressive so that they are not as worried about sometimes running out of cash.. and perhaps they can make adjustments every few months for the extent to which they might have extra cash piling up that could have had been put into bitcoin, so maybe they have their weekly DCA going, yet every 2-3 months they will do an extra lump sum based on whatever extra level of cash they had building up during that time.

[edited out]

Who would want to see his portfolio declined? No one, specially newbies. But that's why we called "diamond hands', those investors that doesn't care or at least not scared and don't panic even if their portfolio went down so hard in the current dip from $125k->$90k'ish. They are still going to hold on it and would never sell despite the current crash or any indication that we are in the bear season already. For new investors, if they do their study of the market, and praying that the market dipping to their price to re-enter, then this is the perfect opportunity for them no doubt about it. They could start as early as today to invest, DCA, and get ready their discretionary funds and go and buy within their budget.

Newbies should be happy that the price fell, yet surely there are some newbies who might have had lump sum invested a lot in higher prices, such as anywhere between $110k and $126k, so then if they keep buying small amounts, they still have a large portion that they had already invested. 

Of course that could have had happened.  The BTC price was completely above $100k between early May and early November, so anyone coming into bitcoin int he past 6 months is likely to have quite a few BTC that are more expensive than the current price... yet if anyone is in bitcoin for 4-10 years or longer as an investor, then he would likely just keep buying whether weekly or otherwise.  Sure it could be possible that he does not have very much money for additional buys because he already put a bunch of his free money into bitcoin.

Whether newbie or not, there are needs to be prepared for BTC price moves in either direction, which is also part of the rationale to attempt to preserve some abilities to continue to buy bitcoin on a weekly basis rather than just buying once and forgetting about it.  I am not much of a fan for holding back to buy dips, yet a person who might have had front loaded his investment at higher prices, then that kinds of a guy might have been in a better position to have had kept some of the money available for buying on dips in order to potentially off-set the lump sum investment that he had made at that then current price.

I don’t know who gave you guys this type of orientation that emergency funds can’t be used for something like this or it should be rigid everyone must follow one pattern which was coined by another person but I’m here to disagree with you that emergency funds can be used to buy the dip , as long as it is able to cover you for at least 3 to 6 months then taking a little out of it to buy the dip won’t kill you so stop putting everyone to just one direction and disputing ideas or inspirations which can be tested and probably work out just because you have a specific belief system on ways to acquire bitcoin.

As far as I know, Tapping into your Emergency funds to buy Bitcoin no matter how little is wrong. Emergency funds are created to protect your Bitcoin investment and must remain untapped except when you're dealing with an Emergency situation. They is what is called a Reserve funds,it is used to cover extra expenses. What you needed to buy the Dip is a Reserve Funds. Tapping into your Reserve fund is the appropriate thing you should have done rather tapping into your Emergency funds to buy Bitcoin that would seems you're Gambling.

We might be arguing about semantics and the truth of the matter is that the various kinds of back up funds are fungible, yet each of us likely needs to set boundaries between his funds in order to know how far he is going to authorize himself to draw down his various back up funds... so part of the reason that emergency funds has such a label (or seems that it should be) so that guys can put their own alert in terms of how far they might be willing to draw down their various back up funds for non-emergency purposes, and then to say that it is too risky to draw the back up funds down any further because those remaining funds are emergency funds.

It is also true that when we are brand new to investing into bitcoin, we might not have very many back up funds, so we are building them up, and surely in our first year or so investing into bitcoin, we might not even be able to build our back up funds and/or our bitcoin investment up to 3 months of our expenses. .and it could take even longer to build up our back up funds to 3 months of our expenses if we end up tapping into them from time to time, so surely it can take some practice to figure out how much to put in each (the back up funds and the bitcoin investment) and how to continue to build each..  Some guys might be willing to take more chances to either invest into bitcoin or to not build up their back up funds since they are wanting to buy the dip and so they could inadvertently end up putting themselves at more risk than they had expected when they are ongoingly engaging in those kinds of behaviors. 

None of us can exactly tell another guy what his line needs to be, yet sometimes guys might put themselves into their own pickle without realizing it, because they had been taking more risk than they should have had been doing, and so then by the time, they are in a pickle, then they cannot go back and fix their errors since they might end up having to tap into some of their bitcoin at a time that was not of their own choosing which could hamper their progress when they should have had been buying bitcoin on dips like our current dips, but instead they are selling to cover some of their expenses that had unexpectantly come in and they do not have any other funds to cover such extra expenses (which also might include some temporary loss of income, too).

[edited out]

I like to put it to you that your idea of purchasing bitcoin is bond around a certain limit and in life you can’t always be at one spot, not even bitcoin itself stays in one spot right now it’s breaking patterns hence I am of the opinion you seem to be retarded to think that using your emergency fund which basically won’t be all but a part of it to grab an opportunity of buying in discount is wrong just because you learnt one principle of economics how we reserve funds is as good as it helps you to grab opportunities like the dips,

Buying bitcoin at a discount is not an emergency, yet if you have extra emergency funds, you may well be referring to reserve funds since you had assigned flexibility to such funds that involves the ability to use them to buy bitcoin.

you can call them whatever you like, but if you are mixing up emergency funds and reserve funds, then you might not know exactly where your border is... so for example, if you have more than 3 months of your expenses in a back up funds and maybe you even have close to 5 months, and you call all of those back up funds emergency funds.  maybe some guys would call 3 months of that as emergency funds and the other 2 months would be reserve funds, so that you have more flexibility with the reserve funds, but calling the 3 months portions emergency funds is a way of you setting your own self-imposed limit in regards to how low you will go and that you have (on your own) determined that you are not going to go below a certain point for your BTC buys.. since that would be your emergency funds rather than your reserve funds.. .

So then it may not really matter what you call them, yet you could still get yourself into trouble if you are not attempting to draw a line in regards to how low you can go or if you end up drawing the line too low and then once you buy the bitcoin with those funds, then you could be in trouble if some emergency (such as loss of income and/or increase in expenses) were to come after you had already used the money to buy bitcoin... not even accounting for which way the BTC price might end up going from the time of your purchase.. maybe the BTC price continues to go down after your purchase?

in my view and experience of life flexibility makes you more productive and efficient than rigidity not even live is rigid,

You self impose your rigidity, and yeah, other guys might have different limits, and also guys might use differing terms, yet hopefully each of us might be able to recognize that there is importance in keeping certain kinds of cash cushions, whether we call them emergency funds, reserve funds or back up funds... and if we end up getting so excited about the dip that we overly use up our reserve funds which causes us to end up tapping into our emergency funds, then maybe we have even gone beyond our own self-imposed limits?  and maybe we won't even realize that we went beyond our limits until a few weeks later and some shit goes down, and maybe not even unexpected shit, but our income might shrink and/or our expenses might go up and then we are in a situation where we might have had contributed to our own emergency situation in circumstances that would have not otherwise have had been an emergency and so then maybe whatever cash that we have remaining is on the low side.. and then maybe bitcoin had taken another dip down from $92k and then it goes to $82k and we really want to buy bitcoin at those $82k prices, but we have absolutely no money because we had some extra expenses and/or loss of income, and we end up having to sell bitcoin at a time that we would have had preferred to have had been buying some...

No one can determine those boundaries except you, and on the face of it, buying the dip does not fit in the category of an emergency, even though it may well fit into a category in which we had purposefully holding some extra reserve funds on the side to be able to buy bitcoin with those funds. and those funds were dedicated to either buying ourselves a new Iphone 17 (when we already have the iphone 15) or alternatively, buying bitcoin.

emergency funds can’t be limited to bad experiences or situations emergency

They can be.  Each guy can figure out which things fit into which categories, and some guys have determined that they won't let their cash go below a certain point absent specific kinds of expenses or otherwise that they ran out of reserve funds and the have to then decide is it better to buy bitcoin with that $1,500 or to buy your daugher the birthday gift that you ahd promised that you were going to buy by no later than November 24th... so then you are left with a dilemma about how to use the money since you don't have any other funds.  Sometimes those kinds of dilemmas happen, and many of us want to keep a sufficient enough cash cushion so that we will not get put into a dilemma of following through with our promise to our daughter or to buy bitcoin on the dip..  No one else can answer the question for you or to impose the limits on you (except maybe if you let your wife do it), so we are tending to impose those limits on ourselves in order to hopefully give ourself some cushion and perhaps to determine which funds are for what and how low we will allow our funds go before we might have to start taking emergency actions, so for example some guys don't want to tap into their emergency funds no matter what, unless they might know that it is merely a 1-3 days of a cash shortage that will be replenished..so they purposefully create categories, and when their funds are used up in the various categories the situation becomes more and more dire..  and perhaps they might even consider that they might have to go get another job or they might have to sell something from their garage if certain parts of their backup funds (whether they call it emergency funds, reserve funds, daughter birthday fund or something else) go below certain amounts.

can also be a very quick drop of bitcoin that you seem to stand an opportunity to grab a share of bitcoin that on a normal would take a long time to achieve yet you are doing the rest of your investment as normal.

Sure, you might have specific funds that you already have set aside for that dip... and it might even have alternative possible uses (like I mentioned buy the Iphone 17 or buy some bitcoin and wait to buy the iphone 17 in 3 months).  I doubt it is disputable even if guys might be referring to these funds in different ways and they might even have strict ideas about only limited kinds of exceptions to dip into emergency funds and bitcoin being in a dip is not an emergency and/or it does not fit in their way of conceptualizing the limitations on the emergency funds that they are not going to tap into unless it fits certain categories of reasons to override and to get money from it...and many of us consider the use of emergency funds as something that needs to be replaced as soon as possible yet other forms of reserve funds are optional to replace them or not.

[Finebone]

To an investor with little portfolio, this bearish is the right time to start one's investment into Bitcoin because its cheaper  to accumulate reasonable Bitcoin using DCA to navigate through the market and hold for as long as possible in order to have the bullish of the coin to set in, where most investors activate sales in order to actualize more profits as  an investor...

I get your point that buying Bitcoin now that it's very cheap is good, especially if you are a low coiner, but be aware that, that little purchase you made is not what will change your financial status for ever, you need to keep on accumulating it consistently, because you can't just invest only $50 and be expecting to reap a million dollar what of bitcoin in the future, so consistent buying, even though your discretionary income is little is very important, so as to build a good stash of bitcoin that can change your financial situation forever.
Additionally, buying the dip with the aim of selling for more profit once it appreciate in value is not what investors do, that's what traders do, which is not the best way to build something huge in the future, so think and act like an investor, not as a trader.

[ruykeri]

Focusing on a particular strategy is cool as it allows you to be consistent and dedicated to your accumulation. But I want to add that I believe an investor is not in any way limited to one accumulation strategy. I believe an investor who has a long term plan and have over the years in consistent DCA buys saved up some extra cash in reserve funds can as well buy from the Dip to increase his stash size and still not be distracted from his long term investment plan. Even the lump sum, he could also buy if he financially stable enough looking at his back up funds he has kept, while the weekly or monthly DCAing is still on, because he must ensure that the weekly or monthly DCAing should NOT be put on hold, it must be running.

So I believe we can still do some Dip buying or lump sum, depending on your back up funds strength which you have kept aside, but the DCA still ongoing and not be distracted from our main goal of consistent accumulation of Bitcoin and Hodl for long. Anything different from this without proper thoughts and plans might screw up the investment plan and can lead to distraction from the initial plan.

While it may sound good to invest through dip-buying or lump sum along with DCA, in reality, it can create problems in various ways. Mixing multiple buying strategies together can have a negative impact on the main investment, DCA. Both dip-buying and lump sum decisions have to be made based on timing. Whereas Bitcoin is completely unpredictable. Therefore, if you make these two timing based investments, you have to think a lot about emotions, fear, and missing opportunities. Therefore, DCA should be your main plan. In addition, if you think that the price of Bitcoin has decreased a bit, then by doing DCA aggressively, you will get the opportunity to buy some extra Bitcoin at a low price.

[7juju]

If you however feel compelled by yourself to buy a dip and you have accumulated emergency funds that you have been pilling up over a period of time without any emergencies happening you can decide to take a part of the excess to buy a dip.

I don't support the idea of talking any money from your emergency funds account and buy bitcoin, even if you have kept it for a long time without any emergency happening yet. What if the emergency occurs the moment you removed the money? The reason why it is called emergency is because it's an unplanned disaster it can happen at anytime when it is not expected. So any idea of taking out money from your emergency funds account should be abolished. If it was reserved funds you were talking about it would have been better. Emergency funds should be strictly kept for emergencies as long as your holding exists.

[Ryu_Ar1]

If you however feel compelled by yourself to buy a dip and you have accumulated emergency funds that you have been pilling up over a period of time without any emergencies happening you can decide to take a part of the excess to buy a dip. Discretionary funds means to apply your discretion in spendings and when you have accumulated excess funds you can take some calculated risks for something that is worth it. Something of value that will benefit you if everything goes as planned like Bitcoin.

Emergency funds must remain in a fixed position where we will not even know what will happen when the funds are taken even if there is no serious condition that we have, it still cannot be disturbed because it could be the case that when we use our emergency funds, an emergency condition occurs afterwards.

I would rather say it is better to use a discretionary fund as some people have suggested in previous posts compared to using a reserve fund because of precisely this condition.
Even if we are pretty sure that there are no serious indications that will happen but still we will not know the future and it could be that one hour ahead, one day ahead or even one week ahead you can spend emergency fund money due to an unexpected thing that makes the fund must remain and cannot be used that is not in accordance with its post even if you want to do good things such as investing.
Do not let us become impulsive or even become aggressive with money conditions that cannot actually be disturbed.

[Tonimez]

If you however feel compelled by yourself to buy a dip and you have accumulated emergency funds that you have been pilling up over a period of time without any emergencies happening you can decide to take a part of the excess to buy a dip.

I don't support the idea of talking any money from your emergency funds account and buy bitcoin, even if you have kept it for a long time without any emergency happening yet. What if the emergency occurs the moment you removed the money? The reason why it is called emergency is because it's an unplanned disaster it can happen at anytime when it is not expected. So any idea of taking out money from your emergency funds account should be abolished. If it was reserved funds you were talking about it would have been better. Emergency funds should be strictly kept for emergencies as long as your holding exists.

Exactly, there's no bending of rules when it comes to emergency funds. It has to be held up for only emergency situations. Some investors sometimes play smart with their emergency funds maybe because of FOMO at dips or envisaged bull run. This situation has endangered many bitcoin portfolios over time. This however brings another idea into play, someone who gets too excited and probably due to FOMO invests with all lt part of his emergency funds is practically not an investor but a bitcoin trader because an investor doesn't see any dip as unprecedented. An investor focuses more on his bitcoin security than short term profit.

Reserved funds are multi-purpose and can serve in aggressive buys during dips or good markets conditions. What marks a real investor is financial discipline and it plays in all his actions as regards Bitcoin buying and selling. If I'm intentional about holding for at at least 10 or more years, why should I panic over sudden market variations? This should be personal, intentional and directional too. Any smart play with your emergency funds can damage all your efforts in gathering up your bitcoin and possesses high risk of selling at loss too.

[Alonso_]

This Bitcoin price action seems a bit different than other times. You will see that the price has been in a gradual and gradual downward trend and is currently at a lower price. The Bitcoin price is part of a temporary reaction that could soon start a bull run. DCA investors continue to buy Bitcoin regardless of the price, so the price drop is the right time for them to buy aggressively.

Real investors are not worried about the price of Bitcoin because most of them know that the price will increase significantly soon and the correction period is very short. The price correction may continue for a few more days and prudent investors are continuing to buy Bitcoin.

That's why you have DCA strategy so you don't have to be bothered with price action cause you can't actually tell the future , we are bearish at the moment , and same time the market can still take urge turn in to bullish anytime so we know we can't keep watching the market every time, so to avoid such stress that's where DCA comes in which is the purchasing of bitcoin with a fixed amount in a given time either weekly or monthly, at different price intervals either up or down  (which same time saying don't be bother with the market movement) because DCA is all about accumulating bitcoin no matter the market conditions either when the price is low or high.

You are right with your DCA explanation, but I just want to point something out that buying bitcoin through DCA must not be with a fixed amount. There are weeks or months that an investor might decide to go high or low with his DCA amount depending on the level of things that he might want to achieve within that time, and also depending on the level of inflow the investor got within that week or month. The point is just that DCA amount can vary from week to week or month to month. It mustn't be a fixed amount before it will be considered DCA.

I believe that buying Bitcoin with fixed versus variable amounts depends on the income nature of the investor since a fixed income earner might have carefully estimated his expenses for the period and identified his discretionary income from where he carves out the part of it he invest into Bitcoin and the remainder which he pushes into building out backup funds.

For an investor with variable income, maybe a contractor for example which handles varying quantity of projects in which some he would have more profits and some lesser, it's very important that the investor has a certain percentage of his discretionary income that he invest into Bitcoin on a normal setting and on the occasion he has a larger discretionary income from bigger profits, he can choose to increase his allocation into Bitcoin. That way the investor has flexibility of allocating funds to his portfolio since his discretionary income is variable.

To an investor with little portfolio, this bearish is the right time to start one's investment into Bitcoin because its cheaper  to accumulate reasonable Bitcoin using DCA to navigate through the market and hold for as long as possible in order to have the bullish of the coin to set in, where most investors activate sales in order to actualize more profits as  an investor...

I disagree with you, for a newbie who is starting investment, Everytime is right for someone to buy and accumulate bitcoin, we don’t only have the bearish market as the right time to accumulate bitcoin, now is always better to start an investment, you can always buy bitcoin with the DCA as someone who is really interested in accumulating Bitcoin, and I seems to be more confused with what you have said, how do you really activate sales when you’re still in your accumulation stage, I think you should focus more on buying bitcoin consistently instead of having a mindset that bearish period is the best time to buy bitcoin instead of accumulating consistently with DCA.

[Qhunman]

If you however feel compelled by yourself to buy a dip and you have accumulated emergency funds that you have been pilling up over a period of time without any emergencies happening you can decide to take a part of the excess to buy a dip.

I don't support the idea of talking any money from your emergency funds account and buy bitcoin, even if you have kept it for a long time without any emergency happening yet. What if the emergency occurs the moment you removed the money? The reason why it is called emergency is because it's an unplanned disaster it can happen at anytime when it is not expected. So any idea of taking out money from your emergency funds account should be abolished. If it was reserved funds you were talking about it would have been better. Emergency funds should be strictly kept for emergencies as long as your holding exists.

This is a very interesting question and a logical one in addition. Tapping into our emergency funds when we have a active Bitcoin investment is illogical. Emergencies doesn't happen fast isn't a good  reason why it should be tap to buy Bitcoin and cover other expenses. Folks takes years to build a strong emergency funds because they tap into it to cover other expenses. It's high time folks understand their can't build up a sufficient Emergency funds by tapping into it regularly. Emergency funds are held for Emergencies only. If we continue to tap it to foot our bills,it wouldn't be sufficient to withstand Emergencies when it occur unexpectedly.