Buy Buy Buy or Sell Sell Sell?

[Sticky Bomb]

It is not a bad idea to buy bitcoin during the dip but waiting for bitcoin to dip before buying is something that isn't great. Especially for a no coiner or low coiner , it won't be appropriate to be waiting for the dip as the good buying time as you have said before venturing or starting to invest in bitcoin, to me there is no time that isn't a good buying time as long as there is discretionionary funds available for that. If the dip is considered as the only good time to buy bitcoin many investors may end up being a no coiner or a low coiner while waiting for a good buying time to occur which is a dip as you have said.

Buying on the low price is an additional opportunity for investors. If the mentality of buying on the low price is seen as the main goal, it is risky. It is difficult to predict when the market will fall and rise in a volatile market. Due to which time may pass and not be started due to waiting. However, it is not entirely correct to buy at any time just because you have extra money. It can be risky to continue buying hastily without a plan. Regular investment should be considered as the main method. And if you face low price during regular investment, then you can buy from the extra money. If someone observes the market excessively during long-term investment and expects downturn, then a trading mentality may come. There is no need to worry or wait excessively about the downturn. While the downturn brings additional opportunities, it should not be seen as the only opportunity.

Buying whenever your discretionary income is available is a very good practice, it ensures consistency and commitment to your accumulation journey, there is no need to wait until you face a low price before buying and holding bitcoin, you are proclaiming a trading attitude in your writeup. DCA is a periodic purchase activity and different investors have distinct periods their discretionary income becomes available, its best if they don't start speculating on the price or timing the market before they buy. It is a better discipline to make a habit of buying when your discretionary income arrives, that way you can consistently increase your portfolio and put some into building backup funds which is the best cashflow management practice while using DCA.

[JayJuanGee]

[edited out]

Because without the thought of selling, people may likely not sell even if they’ve actually reached a state of overaccumulation, as they still keep on accumulating even if they’ve already passed the accumulation stage.

You may be correct.
There are some guys who are quite anxious to transition into selling their bitcoin.. and there are other guys who want to make sure that they have a sufficient level above overaccumulation so that they do not end up making any mistakes in regards to selling too much bitcoin too soon... or potentially to knock themselves outside of overaccumulation status.

So take the guy with a $30k per year income who might have had been accumulating bitcoin fairly aggressively for the past 10 years (since April of 2016) at $100 per week, and so over the past 10 years he invested right around $52k and he had accumulated right around 12 BTC.  He surely has enough to quit his job and to even support himself at right around $70k per year.... yet he is nervous about whether he has enough bitcoin to totally complete his job and he may or may not need to continue to accumulate bitcoin.. since even if he does not accumulate any more bitcoin, if he also does not withdraw from his stack, with the passage of time, his stack will continue to provide a higher and higher withdrawal rate possibilities and at some point he might be willing to get started to withdraw from his stash and that he may well not need to continue to stack more bitcoin.

If a similar income level guy had ONLY been stacking at $100 per week for slightly more than 6 years, and he had invested $33k, yet he had ONLY accumulated right around 1.2 BTC, then there is a BIG difference between the two guys with ONLY a 4 year difference in their stacking time.. so sometimes guys might have dilemmas, and other times, they might not have yet accumulated enough coins to really justify transitioning from accumulation into maintenance.. and maybe at some later point might start to feel able to start to withdraw from their bitcoin stash at a rate they consider to be reasonable and sustainable..

So it is difficult to know if a guy is continuing to stack because he does not know what else to do, or if he might be continuing to stack because his calculations are not establishing enough of a overaccumulation cushion to help him to feel sufficiently comfortable in changing his bitcoin accumulation practices.  In the end, I think that the stack size and some kind of a reasonable valuation should be able to help guys to figure out if they have accumulated enough bitcoin (or more than enough).

I agree with you that a lots of guys in bitcoin space tend to fall into that accumulations phase. It's obvious that some investors don't really know what thier next steps in bitcoin investment or accumulation should be, so some keep accumulating bitcoin as usual, thinking that it's thier safest move even when they try to calculate base on thier targets, they may still feel unsafe yet, as if they haven’t actually stacking enough that will lead them to thier target or long-term goals.  That thoughts or doubts rather can truly make it hard to pause or change strategies. However, if one has already committed to investing a fixed amount of money either weekly or monthly, over time it would actually creates a clear position after a several years, when one reviewing his total amounts they hold, against thier initial goals and with the present market value should help them decide whether they have actually reached a comfortable level or even gone beyond it, at that points it becomes reasonable that one should start using some profits for a purpose instead of accumulating endlessly without directions.

I doubt that we need to consider our starting to withdraw from our bitcoin as taking profits, even though perhaps after 2-3 cycles or more, we likely would have considerable profits, yet if we are withdrawing from our bitcoin, we consider what the total value of the holdings in order to figure out how much we are able to withdraw from it on a monthly, quarterly, annual or whatever might be the periods that we might start to withdraw from it.

It is likely that the picture starts to become more clear when we get to that stage of considering withdrawal.  Frequently, i like to consider that there may well end up being some gap in the time when a guy is accumulating and then when he starts to withdraw.. so perhaps there could be 8-ish years accumulating and then a few years (perhaps even a full cycle) of neither buying nor selling (perhaps mere maintenance), and then perhaps withdrawal would start after the maintenance phase.

[edited out]

One thing I’ve understood is when you practice something for a long time it becomes a habit and a disciplined investor will most likely find it difficult to stop buying even when he has reached over accumulation.
Then again another thing is over accumulation is relative, it all depends on the individual’s goal and financial performance. While the one with 12BTC might be struggling with his discipline to keep buying or not the other with 1.2BTC might be thinking he’s okay with his stack.
We can’t say for sure what level is over accumulation for people, they have to determine that for themselves.

Yeah.. hahahahaha

Some guys will come to dumb conclusions and they will either stop accumulating bitcoin way too soon and/or they will sell too many bitcoin too soon, and then end up having fun staying poor...since they might have had let 10 years pass without realizing that their bitcoin accumulation (if any?) had ended up being way too whimpy within the context of their own finances, psychology and/or goals.

There can be objectively better or worse choices that guys can make, and sometimes guys don't really recognize their own situations until they had already screwed up, so they get 10 years down the road, and they realize that they fucked up.. they either stopped accumulating bitcoin way too soon, or they sold way too many too soon, and so after 10 years, they are still in a position where they are feeling like they are just getting started when they should instead be much further down the road towards making progress, and frequently they had been failing/refusing to act, and in the context of bitcoin the action tends to be ongoing, persistent, consistent, regular and perhaps even aggressive buying of bitcoin until the numbers start to make sense that such letting off of the ongoing buying of bitcoin might start to make sense.

[Gallar]

You are partially correct because someone who has gotten to overaccumulation stage doesn't necessarily need to wait for dip before accumulating because they will be using some of their investment to get other things that they consider necessary ( withdrawing some of their Bitcoin and selling to get something necessary) so due to this, they have to also be accumulating little by little with their discretionary income even though they will not be consistent as before because the dip may take long time to come.

An investor who have reached his over accumulation stage don't need to be consistent in buying bitcoin again only if he decides to increase his bitcoin size to a higher one.

However, if he doesn't have plans to increase his bitcoin size, he can only buy at the dip to cover up whatever, amount he has withdrawn. You should take not that you don't need to be tapping from your bitcoin investment often because you have reached your over accumulation stage but once in a while using the sustainable withdrawal method so that, you don't sell too many bitcoin too soon.

If someone has reached the point of accumulating Bitcoin, the first thing they should do is not sell their Bitcoin, especially if they haven't reached their holding target. It's possible they'll reach their Bitcoin accumulation target before they reach their holding target. So, at that point, I think it's better to continue holding Bitcoin until the time they set, as that would be much better, in my opinion.

Furthermore, even during the holding process, even if they've met their target, if I were in that position, I would continue my buying routine at least until my holding target is truly reached. It would be a shame to stop or reduce the intensity of our Bitcoin investment just because our initial target has been met. So, if I'm at that point, I'll continue investing. As long as I have the discretionary funds, I won't stop until my holding target is reached.

[Bigthraex]

You are partially correct because someone who has gotten to overaccumulation stage doesn't necessarily need to wait for dip before accumulating because they will be using some of their investment to get other things that they consider necessary ( withdrawing some of their Bitcoin and selling to get something necessary) so due to this, they have to also be accumulating little by little with their discretionary income even though they will not be consistent as before because the dip may take long time to come.

An investor who have reached his over accumulation stage don't need to be consistent in buying bitcoin again only if he decides to increase his bitcoin size to a higher one.

However, if he doesn't have plans to increase his bitcoin size, he can only buy at the dip to cover up whatever, amount he has withdrawn. You should take not that you don't need to be tapping from your bitcoin investment often because you have reached your over accumulation stage but once in a while using the sustainable withdrawal method so that, you don't sell too many bitcoin too soon.

If someone has reached the point of accumulating Bitcoin, the first thing they should do is not sell their Bitcoin, especially if they haven't reached their holding target. It's possible they'll reach their Bitcoin accumulation target before they reach their holding target. So, at that point, I think it's better to continue holding Bitcoin until the time they set, as that would be much better, in my opinion.

Furthermore, even during the holding process, even if they've met their target, if I were in that position, I would continue my buying routine at least until my holding target is truly reached. It would be a shame to stop or reduce the intensity of our Bitcoin investment just because our initial target has been met. So, if I'm at that point, I'll continue investing. As long as I have the discretionary funds, I won't stop until my holding target is reached.

I agree that once someone has built a strong Bitcoin position the approach can change but stopping completely is not always wise. Even at that stage small steady buying with extra income still helps maintain and grow the position especially since dips are not always predictable. It also reduces the need to time the market and keeps you involved without pressure.

At the same time selling should be controlled and not frequent because it can reduce your holdings too early. It makes more sense to withdraw only when necessary and still keep the main goal in mind which is long term growth. So the balance is to keep holding strong limit selling and continue buying when possible instead of fully switching to only buying dips.

[Tungbulu]

[edited out]

One thing I’ve understood is when you practice something for a long time it becomes a habit and a disciplined investor will most likely find it difficult to stop buying even when he has reached over accumulation.
Then again another thing is over accumulation is relative, it all depends on the individual’s goal and financial performance. While the one with 12BTC might be struggling with his discipline to keep buying or not the other with 1.2BTC might be thinking he’s okay with his stack.
We can’t say for sure what level is over accumulation for people, they have to determine that for themselves.

Yeah.. hahahahaha

Some guys will come to dumb conclusions and they will either stop accumulating bitcoin way too soon and/or they will sell too many bitcoin too soon, and then end up having fun staying poor...since they might have had let 10 years pass without realizing that their bitcoin accumulation (if any?) had ended up being way too whimpy within the context of their own finances, psychology and/or goals.

There can be objectively better or worse choices that guys can make, and sometimes guys don't really recognize their own situations until they had already screwed up, so they get 10 years down the road, and they realize that they fucked up.. they either stopped accumulating bitcoin way too soon, or they sold way too many too soon, and so after 10 years, they are still in a position where they are feeling like they are just getting started when they should instead be much further down the road towards making progress, and frequently they had been failing/refusing to act, and in the context of bitcoin the action tends to be ongoing, persistent, consistent, regular and perhaps even aggressive buying of bitcoin until the numbers start to make sense that such letting off of the ongoing buying of bitcoin might start to make sense.

There’s a lot of truth in what you’ve said and I do agree with you here, inasmuch as I do feel like it kinda leans heavily on the idea that there’s kinda like a particular right path everyone failed to follow. The truth is that, a lot of folks who ended up behind after 10 years didn’t do so solely because they were lazy or even clueless. Some of these guys ended up there because the strategy/plan they chose to follow never really aligned with their actual life. Income changes, priorities shifts, fear or confidence suddenly shows up during the bull runs. Those ain’t just mistakes, as long as we are humans, they’ll most likely happen eventually, especially in our interactions with an asset that’s as volatile as Bitcoin.

On the consistency part, I completely agree with you 100%. I’ve come to realize that a lot of those who ended up regret things later on were either those who weren’t consistent, those who went too fast and ended up burning out too quickly, or those who couldn’t keep up with the market anymore and decided to stop accumulating just because things became uncertain at some point. It has been proven that the market tends to reward consistency and determination more than emotional decision making. But the phrase “aggressive buying until it makes sense to stop” can turn out to be a dangerous advice to someone, especially if they haven’t really defined what “makes sense” actually means for them. They can easily misinterpret this statement to suit their own personal preferences without really understanding what you really mean. So if they don’t really have the clarity about what makes sense means, they’ll most likely keep moving the goalpost.

Another problem investors often encounter is selling too quickly, but the truth is that, this decision is mostly driven by uncertainty than it is poor judgment. Imagine a situation where someone never really built that conviction or have that plan for what they’re really accumulating bitcoin for, sure these are not required for someone who wants to start accumulating bitcoin, which is in the early stages of the accumulation, but it’s compulsory for every investor to build that conviction and have that goal along the line, else they’ll most likely cash out the moment the feel they’re in profit or begin to feel pressured or uncertain at some point, which makes them more of a gambler than an actual investor. We can’t say this decision was due to weakness, but some missing piece of the puzzle. So the real problem goes beyond just the decision to cash out early, but not really knowing the reason why you were actually HODLing.

So in my opinion, the real mistake isn’t just about selling too much or quitting quickly, it’s actually engaging without a structure or a real target, because when folks have clear targets and goals, risk tolerance, and how Bitcoin accumulation fits into their overall financial life, then even if they end up making some stupid moves or make some silly decisions, it’ll most likely not set them back completely the way you described. But an investor is merely reacting and making decisions based on price and narratives, then they’ll find out that even after 10 years, they’ll almost just at a spot or maybe moving in circles.

[The Founding Titan]

One thing I’ve understood is when you practice something for a long time it becomes a habit and a disciplined investor will most likely find it difficult to stop buying even when he has reached over accumulation.
Then again another thing is over accumulation is relative, it all depends on the individual’s goal and financial performance. While the one with 12BTC might be struggling with his discipline to keep buying or not the other with 1.2BTC might be thinking he’s okay with his stack.
We can’t say for sure what level is over accumulation for people, they have to determine that for themselves.

It's hard to know for certain when a person has hit over-accumulation and because of that we can end actually end up in a situation where people think they've hit over accumulation and stop accumulating only to find out that they were wrong and shouldn't have stopped accumulating, it's a really tricky situation so instead of stopping before hitting over-accumulation thinking you've hit it it's better to accumulate beyond the level you think is over-accumulation for you, that way you might just be able to save yourself from stopping to accumulate prematurely and also over-accumulation might be different for different people as well so it's natural for what a person see as over-accumulation to not be overscc for another.

I agree that once someone has built a strong Bitcoin position the approach can change but stopping completely is not always wise. Even at that stage small steady buying with extra income still helps maintain and grow the position especially since dips are not always predictable. It also reduces the need to time the market and keeps you involved without pressure.

At the same time selling should be controlled and not frequent because it can reduce your holdings too early. It makes more sense to withdraw only when necessary and still keep the main goal in mind which is long term growth. So the balance is to keep holding strong limit selling and continue buying when possible instead of fully switching to only buying dips.

Stopping completely is risky, the kind between hitting over-accumulation and not reaching that level yet might not be a straight line, so even after a person thinks they've hit over accumulation it's better for them to accumulate some more, it will still be to their benefit if they can get some more bitcoin, sustained withdrawal can only be maintained if they've truly hit over-accumulation, it won't work if they haven't.

[Grace333]

I doubt that we need to consider our starting to withdraw from our bitcoin as taking profits, even though perhaps after 2-3 cycles or more, we likely would have considerable profits, yet if we are withdrawing from our bitcoin, we consider what the total value of the holdings in order to figure out how much we are able to withdraw from it on a monthly, quarterly, annual or whatever might be the periods that we might start to withdraw from it.

It is likely that the picture starts to become more clear when we get to that stage of considering withdrawal.  Frequently, i like to consider that there may well end up being some gap in the time when a guy is accumulating and then when he starts to withdraw.. so perhaps there could be 8-ish years accumulating and then a few years (perhaps even a full cycle) of neither buying nor selling (perhaps mere maintenance), and then perhaps withdrawal would start after the maintenance phase.

I agree to this fact and here is why. Since our investment timeline is not thesame as our accumulation timeline especially since every investor have their specific amount they can invest and begin to develop a feeling of being close to their overaccumulation stage. And this is mostly possible when investors frontload alot of bitcoin during their accumulation stage, that way they get to accumulate enough bitcoin even before their proposed long term investment timeline which they did set initially. If anyone gets to the overaccumulation stage the best they could do is to hold for the remaining timeline in their long term goal.

[GIF-JOBS]

Purchasing the dip isn't always about switching to trading mentality, some long term investors still look dips as opportunity to improve their average entry not as short term mindset and on risk, higher risk doesn't automatically means Loss it usually means higher volatility and big outcomes The key is whether that risk is managed properly and aligned with anybody.DCA remove emotion from the process and work well for individuals who want steady exposure without trying to time market but lump sum investment when some persons has the capacity.

Investors taking advantage of falling prices by aggressively buying is not inherently wrong, especially if they have previously purchased Bitcoin regularly without being affected by price declines. Therefore, such an approach shouldn't be considered inappropriate, as long-term investors also want to capitalize on certain moments, such as price drops, to inject larger amounts of new capital to purchase more Bitcoin during the downturn. But in general, long-term investors will clearly never abandon the DCA strategy they've used in the past under certain circumstances because it allows them to slowly move forward when buying Bitcoin and remain long-term investors, holding and accumulating as much Bitcoin as they can.

The dip has always been a good buying time, some investor takes advantage of it and stack more Bitcoin. There is nothing wrong if an investor choose to be aggressively when accumulating Bitcoin as long as he isn't overly been over aggressive where it will have to affect his Bitcoin accumulation, there are investors who get carried away with the dip by been over aggressively using money they aren't supposed to use to accumulate Bitcoin we can consider this to be wrong.

It is not a bad idea to buy bitcoin during the dip but waiting for bitcoin to dip before buying is something that isn't great. Especially for a no coiner or low coiner , it won't be appropriate to be waiting for the dip as the good buying time as you have said before venturing or starting to invest in bitcoin, to me there is no time that isn't a good buying time as long as there is discretionionary funds available for that. If the dip is considered as the only good time to buy bitcoin many investors may end up being a no coiner or a low coiner while waiting for a good buying time to occur which is a dip as you have said.

In the case of a long-term investment, continuity of purchase is most necessary, and for this we should definitely use the DCA strategy, because the DCA strategy is most effective for continuous purchase. Many people think that Bitcoin should only be bought during price drops, and for this they always wait for the market to fall, but what is the result of this waiting in the end? They can never actually buy, so the main thing is the mentality of continuous purchase. Those who only wait for price drops often reach a state where they can neither buy at a properly low price nor continue to invest regularly, they basically face failure, so instead of trying to buy only dips like this, it is a more effective method in the long run to develop the habit of regular investment within your financial capacity.

[Derekfunds]

I doubt that we need to consider our starting to withdraw from our bitcoin as taking profits, even though perhaps after 2-3 cycles or more, we likely would have considerable profits, yet if we are withdrawing from our bitcoin, we consider what the total value of the holdings in order to figure out how much we are able to withdraw from it on a monthly, quarterly, annual or whatever might be the periods that we might start to withdraw from it.

It is likely that the picture starts to become more clear when we get to that stage of considering withdrawal.  Frequently, i like to consider that there may well end up being some gap in the time when a guy is accumulating and then when he starts to withdraw.. so perhaps there could be 8-ish years accumulating and then a few years (perhaps even a full cycle) of neither buying nor selling (perhaps mere maintenance), and then perhaps withdrawal would start after the maintenance phase.

I agree to this fact and here is why. Since our investment timeline is not thesame as our accumulation timeline especially since every investor have their specific amount they can invest and begin to develop a feeling of being close to their overaccumulation stage. And this is mostly possible when investors frontload alot of bitcoin during their accumulation stage, that way they get to accumulate enough bitcoin even before their proposed long term investment timeline which they did set initially. If anyone gets to the overaccumulation stage the best they could do is to hold for the remaining timeline in their long term goal.

Apart from institutions, organization and Government I don't think it will be that easy for an individual to get to their overaccumulation before theire set target or goal because it takes a good and handsome discretionary income to do that and some individual may not want to do that and another factor that can make someone get to their overaccumulation stage before time is if the number or fraction they want to hold is small because there is no way someone will be accumulating gradually that they won't pass some levels of Bitcoin surge and in their overaccumulation stage they can decide to sell some.

[MissNonFall9]

It will be a very wrong strategy for newbies who are just getting started In bitcoin investment and have not accumulated decent amount of bitcoin to their portfolio to start their investment journey with the dip buying as their main strategy since it have the tendency of making them to wait until the price drops to their desired dip before they can buy bitcoin, and the question now is, what if the dip doesn’t drop to their desired price that means they will end up not buying bitcoin at all after waiting for too long. Truly everyone will be happy to buy bitcoin at a very cheap price but considering how volatile bitcoin is we don’t know when that dip will come so instead of waiting for a dip we are not sure weather it will happen or not it will be better we just focus our main buying strategy using the DCA method which will allow us to buy bitcoin at any market price with just a discretionary income available at our disposal either weekly or monthly basis. After all, even while we are ongoingly buying bitcoin with this strategy, it doesn’t still stop us from purchasing bitcoin in a lump sum when the need arises especially if an additional or extra money comes to our income either as a bonus from work, or we win a lottery or from wherever the additional money May comes from we can decide to lump sum with it even while still DCAing. And again if along the line also while DCAing and the dip presents itself we will still be able to take advantage of such dip and buy even more at such a reduced price especially if we have a reserve funds and even if we don’t have reserve funds we will still partake of it as we are ongoingly buying with the DCA using our available discretionary income. Newbies should be more focused on buying regularly with the DCA with just their discretionary income to gradually build their portfolio to a point where they are able to reach their accumulation target or perhaps over accumulation and hold for years, after which even they decide to slow down a bit with their accumulation and choose to be buying during dips it won’t be a problem for them at that time.

I agree with you that following DCA is very effective in sustaining our investment in Bitcoin with our discretionary income. And in addition, I give equal importance to forming a reserve fund with it when the income level increases, although many disagree with this. We can use this reserve fund to exploit market uncertainty, such as when Bitcoin occasionally drops in price, we can use that fund to deposit more Bitcoin without folding our hands in fear. And being able to deposit more Bitcoin at a lower price gives us peace of mind and flexibility. So in my opinion, following DCA is our foundation and the special fund is a strategic tool for us.

[Grace333]

I doubt that we need to consider our starting to withdraw from our bitcoin as taking profits, even though perhaps after 2-3 cycles or more, we likely would have considerable profits, yet if we are withdrawing from our bitcoin, we consider what the total value of the holdings in order to figure out how much we are able to withdraw from it on a monthly, quarterly, annual or whatever might be the periods that we might start to withdraw from it.

It is likely that the picture starts to become more clear when we get to that stage of considering withdrawal.  Frequently, i like to consider that there may well end up being some gap in the time when a guy is accumulating and then when he starts to withdraw.. so perhaps there could be 8-ish years accumulating and then a few years (perhaps even a full cycle) of neither buying nor selling (perhaps mere maintenance), and then perhaps withdrawal would start after the maintenance phase.

I agree to this fact and here is why. Since our investment timeline is not thesame as our accumulation timeline especially since every investor have their specific amount they can invest and begin to develop a feeling of being close to their overaccumulation stage. And this is mostly possible when investors frontload alot of bitcoin during their accumulation stage, that way they get to accumulate enough bitcoin even before their proposed long term investment timeline which they did set initially. If anyone gets to the overaccumulation stage the best they could do is to hold for the remaining timeline in their long term goal.

Apart from institutions, organization and Government I don't think it will be that easy for an individual to get to their overaccumulation before theire set target or goal because it takes a good and handsome discretionary income to do that and some individual may not want to do that and another factor that can make someone get to their overaccumulation stage before time is if the number or fraction they want to hold is small because there is no way someone will be accumulating gradually that they won't pass some levels of Bitcoin surge and in their overaccumulation stage they can decide to sell some.

It does apply to everyone as it depends solely on the persons financial status, discretionary income and the timeline. Usually those who are still around their 20s or 30s have more leverage when it come to how long they can decide their timeline to be, so with a longer timeline yet with a small discretionary income one can still get to the overaccumulation stage since it also depends on their financial status and what they classify to huge amount of money. Hypothetically speaking, a folk who earns around $2000 monthly with a $250 discretionary can invest $100 into bitcoin, $100 for emergency fund while $50 for discretionary consumption if this investors goes on a decade timeline he would be investing $12000 which is approximately 6 months of his monthly income. Now for someone living within his means $10000 can be a huge amount of money for them. So when we talk about the overaccumulation stage you should know that it's an emotional response tied to their risk tolerance.

[Frankolala]

I agree to this fact and here is why. Since our investment timeline is not thesame as our accumulation timeline especially since every investor have their specific amount they can invest and begin to develop a feeling of being close to their overaccumulation stage. And this is mostly possible when investors frontload alot of bitcoin during their accumulation stage, that way they get to accumulate enough bitcoin even before their proposed long term investment timeline which they did set initially. If anyone gets to the overaccumulation stage the best they could do is to hold for the remaining timeline in their long term goal.

For me, I don't think that it's good to use a timeline that you will use to accumulate bitcoin instead, it's better to use a bitcoin target because you will be more focused since you have a target you are trying to meet up with. Unlike, when you're using a timeline.

If you are using a timeline for your bitcoin accumulation how will you know that you have reached your over accumulation stage when you don't have a bitcoin target. I don't have an investment timeline since I will love to hodli bitcoin till old age. If I have reached my bitcoin over accumulation stage, I can tap little profits using the sustainable withdrawal method and hodli for some years and buy back when there's a dip.

[Sarah_Jannat42]

Why would a long term investor be thinking about "profits?"

You must be mixing up investing with trading.

An investor may well have a timeline of 4-10 years or longer and surely, if he does not have age or health concerns that might limit his investment timeline, then it would likely be prudent for an investor to be considering 10 years or longer for his bitcoin investment, so it might take one or two cycles just to accumulate enough bitcoin to potentially be able to consider selling some bitcoin (like shaving it off) at some point later down the road, yet I cannot see how an investor would be thinking about buying and selling both at the same time, since there likely is going to be a period of buying (aka accumulating bitcoin) and then maybe there is a period of just holding and/or maintaining before the selling might start to kick in at some later date, providing that enough or more than enough bitcoin were accumulated in the accumulating and/or maintaining phases of the investor's bitcoin journey.

Actually, if I had talked about wealth creation without the profit aspect, then the topic might have been presented nicely. But I didn't want to confuse trading with long-term investment in Bitcoin.

I don't like trading at all. Because it is a very complicated subject, although there is a possibility of getting rich and poor quickly from here, which is a cause of great mental unrest. I am a peace-loving person and considering my age, I might be able to invest for two cycles. But my point is, is it possible to build significant wealth in one cycle? And does investing with a single cycle in mind indicate trading? I would be very glad if you let me know.

[Sticky Bomb]

If someone has reached the point of accumulating Bitcoin, the first thing they should do is not sell their Bitcoin, especially if they haven't reached their holding target. It's possible they'll reach their Bitcoin accumulation target before they reach their holding target. So, at that point, I think it's better to continue holding Bitcoin until the time they set, as that would be much better, in my opinion.

Furthermore, even during the holding process, even if they've met their target, if I were in that position, I would continue my buying routine at least until my holding target is truly reached. It would be a shame to stop or reduce the intensity of our Bitcoin investment just because our initial target has been met. So, if I'm at that point, I'll continue investing. As long as I have the discretionary funds, I won't stop until my holding target is reached.

I agree that once someone has built a strong Bitcoin position the approach can change but stopping completely is not always wise. Even at that stage small steady buying with extra income still helps maintain and grow the position especially since dips are not always predictable. It also reduces the need to time the market and keeps you involved without pressure.

If you have a good stash of bitcoin already built out but have not reached your accumulation target, then there is no need stopping, as long as you still have discretionary income coming in, however you can determine if you would be more comfortable with only buying dips and keep drawing nearer to your target, the important thing for such an investor is that he keeps adding to his portfolio and don't sell until he reaches his holding target.

At the same time selling should be controlled and not frequent because it can reduce your holdings too early. It makes more sense to withdraw only when necessary and still keep the main goal in mind which is long term growth. So the balance is to keep holding strong limit selling and continue buying when possible instead of fully switching to only buying dips.

An investor should actually desist from selling until he reaches overaccumulation status and even if he should take profits, he shouldn't take such that would see him go below his accumulation target. Optionally, the investor can even see that he has more time before the termination of his holding period and can choose to reset his target and get back into accumulation phase and it is to his own advantage since the more quantity you've stacked, the more profits he would enjoy in the future if bitcoin continues to perform well and you can sustainably withdraw more from it and sustain yourself for a longer duration.

[Sim_card]

I agree that once someone has built a strong Bitcoin position the approach can change but stopping completely is not always wise. Even at that stage small steady buying with extra income still helps maintain and grow the position especially since dips are not always predictable. It also reduces the need to time the market and keeps you involved without pressure.

You don't need to stop accumulating till you have reached your bitcoin target. Only if you don't have a discretionary income at a particular time for some reasons. Ongoingly, accumulating bitcoin persistently and consistently overtime is the best.

At the same time selling should be controlled and not frequent because it can reduce your holdings too early. It makes more sense to withdraw only when necessary and still keep the main goal in mind which is long term growth. So the balance is to keep holding strong limit selling and continue buying when possible instead of fully switching to only buying dips.

when you sell during your accumulation phase, it will depreciate your bitcoin portfolio and anything that makes you sell once, it can still trigger you to sell again and before you know it you have changed from a long-term bitcoin investor to a trader. This is why you don't need to sell a dime till you have reached your over accumulation stage.

You need to prevent every actions that will lead you to sell your part of your bitcoin when you haven't reach your over accumulation stage by setting up an emergency funds and other backup funds to take care of any unforseen circumstances that will play out during your bitcoin accumulation phase and don't buy bitcoin with money that's not your discretionary income.

[Victorybit1]

I agree to this fact and here is why. Since our investment timeline is not thesame as our accumulation timeline especially since every investor have their specific amount they can invest and begin to develop a feeling of being close to their overaccumulation stage. And this is mostly possible when investors frontload alot of bitcoin during their accumulation stage, that way they get to accumulate enough bitcoin even before their proposed long term investment timeline which they did set initially. If anyone gets to the overaccumulation stage the best they could do is to hold for the remaining timeline in their long term goal.

For me, I don't think that it's good to use a timeline that you will use to accumulate bitcoin instead, it's better to use a bitcoin target because you will be more focused since you have a target you are trying to meet up with. Unlike, when you're using a timeline.

If you are using a timeline for your bitcoin accumulation how will you know that you have reached your over accumulation stage when you don't have a bitcoin target. I don't have an investment timeline since I will love to hodli bitcoin till old age. If I have reached my bitcoin over accumulation stage, I can tap little profits using the sustainable withdrawal method and hodli for some years and buy back when there's a dip.

Surely setting a target 🎯 will make you more serious and focus in achieving it although using timelines for your Bitcoin investments journey is not bad but setting a target makes you have a purpose and a goal, if there is one thing I have learnt about humans is that once there is something to achieve, the work ethic is way up on another level. The best move to take when the over accumulation is reached is always to sell off good profit atleast there is a welcome idea to enjoy the fruit of your labor and also you have more opportunities to buy any possible dip that comes around.

[Joeboy]

There’s a lot of truth in what you’ve said and I do agree with you here, inasmuch as I do feel like it kinda leans heavily on the idea that there’s kinda like a particular right path everyone failed to follow. The truth is that, a lot of folks who ended up behind after 10 years didn’t do so solely because they were lazy or even clueless. Some of these guys ended up there because the strategy/plan they chose to follow never really aligned with their actual life. Income changes, priorities shifts, fear or confidence suddenly shows up during the bull runs. Those ain’t just mistakes, as long as we are humans, they’ll most likely happen eventually, especially in our interactions with an asset that’s as volatile as Bitcoin.

On the consistency part, I completely agree with you 100%. I’ve come to realize that a lot of those who ended up regret things later on were either those who weren’t consistent, those who went too fast and ended up burning out too quickly, or those who couldn’t keep up with the market anymore and decided to stop accumulating just because things became uncertain at some point. It has been proven that the market tends to reward consistency and determination more than emotional decision making. But the phrase “aggressive buying until it makes sense to stop” can turn out to be a dangerous advice to someone, especially if they haven’t really defined what “makes sense” actually means for them. They can easily misinterpret this statement to suit their own personal preferences without really understanding what you really mean. So if they don’t really have the clarity about what makes sense means, they’ll most likely keep moving the goalpost.

Another problem investors often encounter is selling too quickly, but the truth is that, this decision is mostly driven by uncertainty than it is poor judgment. Imagine a situation where someone never really built that conviction or have that plan for what they’re really accumulating bitcoin for, sure these are not required for someone who wants to start accumulating bitcoin, which is in the early stages of the accumulation, but it’s compulsory for every investor to build that conviction and have that goal along the line, else they’ll most likely cash out the moment the feel they’re in profit or begin to feel pressured or uncertain at some point, which makes them more of a gambler than an actual investor. We can’t say this decision was due to weakness, but some missing piece of the puzzle. So the real problem goes beyond just the decision to cash out early, but not really knowing the reason why you were actually HODLing.

So in my opinion, the real mistake isn’t just about selling too much or quitting quickly, it’s actually engaging without a structure or a real target, because when folks have clear targets and goals, risk tolerance, and how Bitcoin accumulation fits into their overall financial life, then even if they end up making some stupid moves or make some silly decisions, it’ll most likely not set them back completely the way you described. But an investor is merely reacting and making decisions based on price and narratives, then they’ll find out that even after 10 years, they’ll almost just at a spot or maybe moving in circles.

And that why it is very necessary that folks take a personal assessment so they could very well understand their financial capacity so they don't get financially burned out in the course of their acccumulation.... Surely from my own viewpoint, I consider aggressive buying as that which make a whole lot of sense since it very well increases the pace at which folks accumulate their Bitcoin... But yet again some folks may not have the capacity to go aggressive due to the limitedness of their discretionary income and so they would rather take a wimpy approach which is reasonable and very much understandable since it is better that folks end up a low coiner than to remain a no coiner...

But then again, when compared side by side, aggressiveness will always be much more better than taking a wimpy accumulation  this is why it is important that folks don't just rely on their little Discretionary income... In the course of their accumulation, they should take the necessary steps to ensure that they build up other income sources that could bring in more Discretionary income so that the investor can invest aggressively so that the amount accumulated overtime start making sense...

On the part of having the right conviction, that's mostly true because the higher the conviction the less likely it is that folks sell their holding before they get to over-accumulation... Surely at the start it is not a must to have a perfect conviction, but yet again it is mandatory that folks build up this conviction in the course of their investments...

[Zackz5000]

I agree that once someone has built a strong Bitcoin position the approach can change but stopping completely is not always wise. Even at that stage small steady buying with extra income still helps maintain and grow the position especially since dips are not always predictable. It also reduces the need to time the market and keeps you involved without pressure.

At the same time selling should be controlled and not frequent because it can reduce your holdings too early. It makes more sense to withdraw only when necessary and still keep the main goal in mind which is long term growth. So the balance is to keep holding strong limit selling and continue buying when possible instead of fully switching to only buying dips.

Those who has gotten to their over accumulation can choose to sell part of their Bitcoin hodling and still be hodling the rest and some times accumulate during the dip, but as an investor who is still in their accumulation stage doesn't need to be selling and buying Bitcoin for me what the person is doing is trading/gambling but not an investment.

[SatsPH]

Why would a long term investor be thinking about "profits?"

You must be mixing up investing with trading.

An investor may well have a timeline of 4-10 years or longer and surely, if he does not have age or health concerns that might limit his investment timeline, then it would likely be prudent for an investor to be considering 10 years or longer for his bitcoin investment, so it might take one or two cycles just to accumulate enough bitcoin to potentially be able to consider selling some bitcoin (like shaving it off) at some point later down the road, yet I cannot see how an investor would be thinking about buying and selling both at the same time, since there likely is going to be a period of buying (aka accumulating bitcoin) and then maybe there is a period of just holding and/or maintaining before the selling might start to kick in at some later date, providing that enough or more than enough bitcoin were accumulated in the accumulating and/or maintaining phases of the investor's bitcoin journey.

Actually, if I had talked about wealth creation without the profit aspect, then the topic might have been presented nicely. But I didn't want to confuse trading with long-term investment in Bitcoin.

I don't like trading at all. Because it is a very complicated subject, although there is a possibility of getting rich and poor quickly from here, which is a cause of great mental unrest. I am a peace-loving person and considering my age, I might be able to invest for two cycles. But my point is, is it possible to build significant wealth in one cycle? And does investing with a single cycle in mind indicate trading? I would be very glad if you let me know.

Who would love trading? Yes, there could be some of us who do that, maybe as a job or side hustle. But you need to have a lot of time in your side and be in constant with your laptop or pc. And then it's like a game or gambling itself, because you are looking at what could be the future price as we all know, no one has the crystal ball to see what the future holds. So for the majority, it's very hard and complicated. As compare to just be a long term holder, just accumulate let's say in the first 4 year as a Bitcoin enthusiast, and then see how it goes. Of course it's not that easy too as there could be temptations along the way specially when you see your X amount investment has been profiting Y amount. However, if you really look for the bigger picture and thinking about building generational wealth, I would suggest just to continue to accumulate as much as we can. We just hit 20 million Bitcoin being mined already. So everyone is going to be fighting for the remaining. So it will be scarce and with that, demands goes up. Others have a target to own at least 1 BTC in their life time. To be part of that group. So it's really better to continue or period of buying before we start thinking of selling if we have at least enough in our Bitcoin journey of 1 BTC in our wallet.

[Salahmu]

I agree to this fact and here is why. Since our investment timeline is not thesame as our accumulation timeline especially since every investor have their specific amount they can invest and begin to develop a feeling of being close to their overaccumulation stage. And this is mostly possible when investors frontload alot of bitcoin during their accumulation stage, that way they get to accumulate enough bitcoin even before their proposed long term investment timeline which they did set initially. If anyone gets to the overaccumulation stage the best they could do is to hold for the remaining timeline in their long term goal.

For me, I don't think that it's good to use a timeline that you will use to accumulate bitcoin instead, it's better to use a bitcoin target because you will be more focused since you have a target you are trying to meet up with. Unlike, when you're using a timeline.

If you are using a timeline for your bitcoin accumulation how will you know that you have reached your over accumulation stage when you don't have a bitcoin target. I don't have an investment timeline since I will love to hodli bitcoin till old age. If I have reached my bitcoin over accumulation stage, I can tap little profits using the sustainable withdrawal method and hodli for some years and buy back when there's a dip.

What timeline are guys actually talking about? Or perhaps is it that you do not understand the Timeline @Grace333 was implying?, however I would like to ask you that since timeline is not to be used for accumulation what other period do you use to invest on Bitcoin so I would actually no if you understand what @Grace333 meant by the timeline, actually I usually don't use the word timeline to describe my accumulation period but however I prefer stating weekly which I use for my accumulation so if you refer this to the timeline you are talking about you will no is the meaning and is very important to have a period of week to be investing.