Balancing Financial security and Bitcoin Accumulation

[liasbaa]

Your idea of taking profits is pretty vague, liasbaa, and it does not seem like an investor kind of a mindset, especially if investors are taking 4-10 years or longer to build up their bitcoin holdings.  Why would we be thinking about "taking profits?" Are we looking at dollar profits?  What is the point that you are wanting to make with your "profits taking" ideas?  What are you planning to do with such "profits?"   Are you of the opinion that everyone is motivated by "profits" whether they are in bitcoin for the long term or the short term?  What level of profits should motivate you?  

I am trying to say in this paragraph is to keep accumulating Bitcoin as long as you have a steady stream of income or a source of discretionary income. My main point is not to tempt investors to take short term profits because many are ready to take their long term investments to the trading stage if they see a pumping season. It is not a good sign for investors to sell Bitcoin for a small profit before accumulating it for the long term.

For example, you are accumulating Bitcoin with a long term plan through a DCA strategy through discretionary income. The target is 4-10 years but within 3 years you see a pumping in the price, greed is a big barrier for investors to achieve their goals. What I am trying to say is that DCA is a great way to achieve your main Bitcoin holding target.

[Alonso_]

I doubt that trying to apply all three strategies is a good idea to apply merely for the sake of applying all three strategies.  DCA works for almost all situations, and there might be situations where lump sum and/or buying the dip might serve as good supplements.

Generally buying the dip might be a good strategy to apply if someone already has invested a good amount at once (such as lump sum) so then buy the dip could just serve as a way to protect in case the BTC price ends up dropping after a large amount of BTC had already been bought at one price.

There could be other situations where buy the dip works, but there are trade offs in doing it, so perhaps some of my quibbling is when guys try to assert buy the dip as if it were absolutely the right thing to do and to act as if there were not trade-offs.

And of course, guys are free to choose the kinds of trade offs that they want to make, yet it seems a bit self deceptive if they plan to employ some kind of a buy the dip strategy and then to present the situation as if there weren't any tradeoffs.

You’re right, I think it’s very bizarre to applying all three strategies at once when you can actually apply the DCA through buying Bitcoin and it would be more efficient and can always cover for other strategies, I know most people who have a very large amount of money saved somewhere could actually want to exercise buying Bitcoin through the lump sum which I think it’s also good for them, and can still decide to be buying through the DCA every week on a regular basis, but buying the dip can actually be more appreciated if we have an opportunity of saving some money for the dip, while we can still continue buying Bitcoin on a regular basis.
So I think there are ways that individual investors could actually try approaching the market that would be more lucrative and efficient for them.

[Hardyrobust]

I doubt that trying to apply all three strategies is a good idea to apply merely for the sake of applying all three strategies.  DCA works for almost all situations, and there might be situations where lump sum and/or buying the dip might serve as good supplements.

Generally buying the dip might be a good strategy to apply if someone already has invested a good amount at once (such as lump sum) so then buy the dip could just serve as a way to protect in case the BTC price ends up dropping after a large amount of BTC had already been bought at one price.

There could be other situations where buy the dip works, but there are trade offs in doing it, so perhaps some of my quibbling is when guys try to assert buy the dip as if it were absolutely the right thing to do and to act as if there were not trade-offs.

And of course, guys are free to choose the kinds of trade offs that they want to make, yet it seems a bit self deceptive if they plan to employ some kind of a buy the dip strategy and then to present the situation as if there weren't any tradeoffs.

You’re right, I think it’s very bizarre to applying all three strategies at once when you can actually apply the DCA through buying Bitcoin and it would be more efficient and can always cover for other strategies, I know most people who have a very large amount of money saved somewhere could actually want to exercise buying Bitcoin through the lump sum which I think it’s also good for them, and can still decide to be buying through the DCA every week on a regular basis, but buying the dip can actually be more appreciated if we have an opportunity of saving some money for the dip, while we can still continue buying Bitcoin on a regular basis.
So I think there are ways that individual investors could actually try approaching the market that would be more lucrative and efficient for them.

All the strategies have advantages and disadvantages. Buying the dip isn't and exceptions and more over the stress of timing the market and waiting can make an investor to miss market opportunities. For a newbie I won't recommend buying the dip as the best strategy for them to start with. Just like jayjayjuangee has rightly pointed out , an investor that has lump sum with huge amount can make use of buying the dip as this will act as a hedge incase of sudden decline in price of bitcoin. DCA strategy still stands as a good strategy and doing DCA shouldn't stop anyone from buying the dip provided the extra cash is there.

[Nightwatchmare]

Many New Users See Bitcoin as an asset where they can make a Guaranteed profit within a few weeks or months And this mentality leads them to pour money into the market for daily expenses Emergency funds or other important needs.This is the biggest misconception. The main condition for investing in Bitcoin is to do it with money that, even if lost, will not endanger your lifestyle or financial stability, Otherwise it is no longer an investment but a gamble in the guise of an investment. For this reason, when the market goes against your expectations, the necessary money will Force you to sell it before the optimal time. A real investor does not make decisions under the pressure of short term price fluctuations and lets time work in his favor, but when the invested money becomes necessary for life, both patience and strategy break down. The problem is with wrong expectations and using the wrong source of money. Bitcoin demands a long-term perspective and financial discipline, but not risking the necessary money in the hope of quick profits.

Even on a long term investment, no one can guarantee that they are going to make 100% profit from Bitcoin if they hold for a long term. We are only advised not to invest money that we might need anytime soon, because the market might not work as we expected. You can see that there are many coins on the market, but no one is hyping them or suggesting them for long term investment because no coin has ever done well as bitcoins for many years.

Everyone invest in Bitcoin, believing that its future price will be better than today, but if you ask, nobody can actually predict where Bitcoin will reach tomorrow, whether it will go higher than this or it will go lower than today, but every investor that is out there believes that its future will be better than today due to history of Bitcoin.

Bitcoin market does not work as investors expect, so you should not rush into investing. You need to make a plan for investment Bitcoin and accumulation regardless of price through discretionary income. If you are still afraid of losing money and fear that its value will decrease a lot in the future you should still running with DCA method. Because Bitcoin price will rise after the correction although this is an assumption it has repeatedly broken ATH and entered new height. Therefore Bitcoin accumulation is the best for all kind of investors.

My argument is that accumulation Bitcoin through the DCA process through discretionary income will be a convenient financial endeavor for investors. You just need to accumulation Bitcoin regularly and do it continuously for 4-10 years. Any review of Bitcoin price history or fundamental structure analysis shows that its price is likely to reach an unprecedented high in the future.

There is no specific time or period Bitcoin market will work according to investors' expectations, so it is not a good reason for someone to delay his investment to the time or period Bitcoin market will favor investors because that time will never come. If investors have available discretionary income, they can start accumulating Bitcoin because being in the game is the means investors can luckily benefit from the Bitcoin market. Anyone that is still afraid of losing money in Bitcoin investment should not even bother to invest in Bitcoin because if the price of Bitcoin decreases, the person will panic and sell his/her Bitcoin. There is no guarantee of getting profits from Bitcoin investment, so before people invest in Bitcoin, they should have the conviction that Bitcoin investment is not a scheme to get rich quickly and that they can lose their money in Bitcoin investment.

[Gost ms]

You’re right, I think it’s very bizarre to applying all three strategies at once when you can actually apply the DCA through buying Bitcoin and it would be more efficient and can always cover for other strategies, I know most people who have a very large amount of money saved somewhere could actually want to exercise buying Bitcoin through the lump sum which I think it’s also good for them, and can still decide to be buying through the DCA every week on a regular basis, but buying the dip can actually be more appreciated if we have an opportunity of saving some money for the dip, while we can still continue buying Bitcoin on a regular basis.
So I think there are ways that individual investors could actually try approaching the market that would be more lucrative and efficient for them.

If you are a new investor, then even if you have a lot of money, you should adopt the DCA method. Because the Bitcoin market is very volatile, no one can say what will happen in the market. So if a new person invests a lot of money at once and if the market falls after some time, he may panic and sell his holdings. So a new investor should not think of buying DIP until he is able to build confidence in Bitcoin.

If an experienced investor suddenly gets some money or gets a lot of money, then he can buy using any investment method

[Umulala-alala]

You’re right, I think it’s very bizarre to applying all three strategies at once when you can actually apply the DCA through buying Bitcoin and it would be more efficient and can always cover for other strategies, I know most people who have a very large amount of money saved somewhere could actually want to exercise buying Bitcoin through the lump sum which I think it’s also good for them, and can still decide to be buying through the DCA every week on a regular basis, but buying the dip can actually be more appreciated if we have an opportunity of saving some money for the dip, while we can still continue buying Bitcoin on a regular basis.
So I think there are ways that individual investors could actually try approaching the market that would be more lucrative and efficient for them.

If you are a new investor, then even if you have a lot of money, you should adopt the DCA method. Because the Bitcoin market is very volatile, no one can say what will happen in the market. So if a new person invests a lot of money at once and if the market falls after some time, he may panic and sell his holdings. So a new investor should not think of buying DIP until he is able to build confidence in Bitcoin.

If an experienced investor suddenly gets some money or gets a lot of money, then he can buy using any investment method

If you have big money as a bitcoin investor and it is your discretionary income i don't see anything wrong by trying to invest with it at ones, an investor who is holding BTC for a long time will not be afraid of market volatility because bitcoin must dip and it will also increase, it is trader that will be afraid or panic when the market is dipping because his intentions will always be to buy low and when the price of bitcoin increases, if you have alot of cash as your discretionary income and you want to buy bitcoin with it all i don't think that's a sin the most important thing is that you use to buy a valuable asset as bitcoin and your investment plan is for long term like 4-10 and above.

[Bigjoe33]

If you are a new investor, then even if you have a lot of money, you should adopt the DCA method. Because the Bitcoin market is very volatile, no one can say what will happen in the market. So if a new person invests a lot of money at once and if the market falls after some time, he may panic and sell his holdings. So a new investor should not think of buying DIP until he is able to build confidence in Bitcoin.

If an experienced investor suddenly gets some money or gets a lot of money, then he can buy using any investment method

If you have big money as a bitcoin investor and it is your discretionary income i don't see anything wrong by trying to invest with it at ones, an investor who is holding BTC for a long time will not be afraid of market volatility because bitcoin must dip and it will also increase, it is trader that will be afraid or panic when the market is dipping because his intentions will always be to buy low and when the price of bitcoin increases, if you have alot of cash as your discretionary income and you want to buy bitcoin with it all i don't think that's a sin the most important thing is that you use to buy a valuable asset as bitcoin and your investment plan is for long term like 4-10 and above.

Umulala-alala, I think you misunderstood Gost ms, he wasn't saying that a big investor can't invest with a big amount of money which is his discretionary all at once, No. To my understanding, what Gost ms was saying is that it may not be too nice for a newbie investor to go all in with his investment even though he has alot of discretionary since he is not familiar with the market or have much idea about it. He is of the opinion that it will be better the newbie starts small, accumulating bitcoin gradually using the DCA strategy while he slowly learns how the market works and how to go around it, and I completely agree with him.

Its better that an investor who just entered into accumulating Bitcoin should start out with just little amount DCA since he knows nothing or has no experience in Bitcoin investment or have not developed any confidence in Bitcoin. He could begin his accumulation with a lower amount of DCAing, while investigating, he could learn few other ways and/or better ways to manage his income and investment, and still gain more better hopes and confidence in the value of Bitcoin generally, and at this point, he can willingly increase his DCAing amount to any level that suits him and his cash flow.

Starting out with a big amount of DCA by a newbie might put more pressure on the investor, and just Maybe, if the price swings as usual, maybe downwards, the new investor might panic too much or get scared of the situation. But in the other hand, if he started his investment in low terms, getting better understanding about the market and investments, generally, and after some levels of learning and improvements in investment can decide to improve on his investment amount, then he is on a more balanced ground and understands better the character of Bitcoin

[JayJuanGee]

[edited out]

Oh okay, thanks, I get what you mean. I think I will probably have to beat my head around it and try to create something for myself.  But to be honest, I am not really that good with this whole finance and structuring side of things, so it feels a bit complex for me sometimes. Excel too, i am not familiar with it, so I can’t relate with all of those formulas and some other things.

You start with the basics in regards to your income and your expenses and you expand as your interests grow into wanting to look at other areas.  You can look around and perhaps see some models that are similar to what you would like to make. and then copy from the models and/or maybe tailorize some parts to your own circumstances.

But, I still get/understood the idea behind what you explained though, at least on a basic level. Even if I can’t execute it clearly yet. I can relate to the logic behind it..

If it is easier to start with paper, then there is nothing wrong with starting there.. I had a lot of paper systems in the 90s, yet once I moved some of them over to excel, I found that I was spending less time re-writing and more time expanding and/or analyzing.

Once you have systems in place they might be easier to follow, yet frequently it can take time to make the systems and also to make the systems in such a way that you feel empowered by them rather than burdened.

And also, about playing around with my own ideas and gradually creating a system that is good for me, I will definitely try to do that.

 Good.

You don't need to start with anything overly sophisticated in the beginning, and even if you don't have Excel, you can use various paper versions, even though the power of something like Excel allows you to copy and paste so that you don't have to keep on changing or rewriting the pages. I had a lot more paper versions in my earlier years, and there had even been some recent times that I felt that I had to visualize some of my ideas on paper before I ended up later putting them into something like Excel.. or some other way of looking at the data... and yeah, even sometimes sharing information on this forum will help to inspire figuring out how to frame certain questions or to try to measure past performance or current status or future projections... Sometimes you might not be able to realy do future projections until you might figure out current status and/or even past performance information...  So current status and/or past performance information might put you in a better framework in order to project into the future in ways that are more realistic and practical rather than fantasies... so sometimes even when we are projecting, we might consider our base-case scenario to be conservative, and maybe our best case scenario would be a bit of a fantasy, but it would still be attempted to be tethered to potential outcomes that really could happen rather than just blindly guessing.

Sometimes when you have structure for some of your information compilation pieces, it will inspire you in regards to how to structure some other pieces... So for example, if you take out a loan, you can project your loan amount and your payments and the interest rate. but then that same format might inspire you for how to structure other tables that you might create.  I recall before getting into bitcoin, I had bought several different kinds of index funds, and I had created a separate column for each of the index funds so that I could monitor the extent to which they were going up or down in value and the extent to which I was continuing to buy them, so the quantity of my shares were changing, yet at some point I ended up getting out of those various index funds, yet some of the ways that I had been trying to track them, ended up getting transported into my ways of creating separate tables to monitor my bitcoin accumulation and even the various places that I was holding the bitcoin.. and perhaps noting the extent to which there might have had been issues in regards to how they were held...

So then if i was able to categorize ways that bitcoin was being held, then I would also categorize other investments, and/or assets that I had, but I might have had felt it better to put some of that on a different table even though the totals might end up getting referred to (and even linked to) in other tabs or other spreadsheets... So basics can expand and keep on building and we might learn how to write certain formulas.. so for example, we might put in the date, but then we copy and past, and if we put a "+1" into the formula or a "+ 30" then the next time that date is pasted it will add a day or it will add 30 days respectively... which can also be done with other formulas that are used.. so we might learn how to use one formula and then learn another formula and then realize that there might be short-cuts to how we are compiling our information. so we learn little by little and some formulas might be used in some spreadsheets (tabs) but not in others.

Okay, I get you. I am slowly getting the picture of what you are saying, especially the idea that this thing does not have to be perfect or complex from day one. Starting small, even messy, and just trying to see where I currently stand feels more realistic for me than jumping straight into heavy projections.

I think the reason I kind of find all this finance stuff tricky is because I never had any background in it at all.

 Much of the skills are basic and you can learn on your own through practice and maybe looking up some formulas when you feel like applying them... so you might have some data input cells and/or columns.. but then you find that you have one of your column is a total.. so then you put a formula in so that it adds up column C and Column D and then the total would go in column E.

It has been so long that I have been doing it, so I cannot remember where I learned each of the matters.. I might have learned from some books or even some courses I took or by asking someone or even by playing around or through Excel's help menu.  These days you can ask Google or even ask some LLM (Large language model) and you might get the answer about the mechanics to show you how to do it.

I’m actually an engineer by training, studied engineering and all that, but somewhere along the line I lost interest in it as a whole and just found myself gradually drawn to finance and investing instead.

 If you are an engineer then you might have had learned some similar kinds of math, logic and even presentation skills.

That is when I started reading books on finance and investments just to understand how things work. Bitcoin came later in that journey, and since then I have been learning bit by bit. So I can not fully relate to everything yet because it is still kind of new to me, but I am definitely catching up through a lot of personal studying.

I would imagine that you use for personal finance is easier than what is used in engineering, so sometimes it is just practice and finding a reason to use it, when you might even be wanting to solve  a problem... so for example you might want to project forward various future scenarios for your own financial future based on current known factors and perhaps also accounting for various scenarios based on certain unknowns such as if the inflation  rate is 2%, 6% or 10% or some other number, and then you have various scenarios for bitcoin's growth too...so sometimes you will have certain things you want to plug in that are somewhat personalized or personal variables that might even relate to your own income scenarios and/or various expenses that you might choose to incur.  So you may welll have motivations to create such projections..
 

Also, quick question are you into accounting or something? Because honestly, you are really good with this finance and structuring stuff, and I really admire that.

For me, it is just practice, and experimenting.. There is a lot that i don't really know how to do very well... but sometimes I will just make up ways to put information together and then try to come up with my own interpretations of what the information means.. which might even involve some stealing of information that I found that others had done.

I had some training and practice in some related areas that would sometimes involve investigating and then putting together reports that would involve assessing facts and logic and then making recommendations.  I recall that I even had some jobs that I had been doing in years past, in which bosses would direct me towards solving problems that might involve putting together some charts and tables or reading of some financial information, so sometimes I did receive assignments in which I might end up using Excel.. which caused me to sometimes look at information that had been presented through Excel or even having to put together my own information that related to the topic that might involve using excel.  I remember that one of my colleagues had put together some flow charts that were on excel, and so then once the Template was there, then the flow sheet could be used to look at similar information or even to prepare certain kinds of information and to group together certain information or to say that this piece of information has a, b and c characteristics and this other piece of information has a, d and  f characteristics... so then maybe there would be several pieces that would be put together so that we could see those pieces of information all in one visual... which might help us to reach better conclusions or come up with different theories in relation to the information when we would see the information presented with those pieces of information on one page.

The same thing could be true when you put some of your own information together.  So you might know all of the components but then when you put them together you might see them in a different light.

Also remember that bank books (cheque books) used to be done on paper, but you can put your checkbook into an Excel spreadsheet, and then maybe you can have some accounts relate to each other or some fields that overlap or you can combine some of them.  You could have a principle account and then you could have various sub accounts that link to the principle account.

[edited out]

For example, you are accumulating Bitcoin with a long term plan through a DCA strategy through discretionary income. The target is 4-10 years but within 3 years you see a pumping in the price, greed is a big barrier for investors to achieve their goals. What I am trying to say is that DCA is a great way to achieve your main Bitcoin holding target.

You are correct. Regular people may well get distracted by short-term profits, and they might be tempted either to sell or to discontinue their buying.

We cannot stop folks from doing what might not be in their better interest, and they might rather want to take the sure deal of cashing out rather than continuing to invest in bitcoin, even though it may well be better for them to keep building their bitcoin holdings since they had not yet reached their accumulation target.  So, yeah, some guys get distracted off their target and their having had gotten distracted might cause it to become difficult or maybe even almost impossible for them to reach the target that they could have had been able to reach if they had just stayed following their original plan.  Sometimes a certain set of ritual, perhaps ongoing buying and/or reviewing status towards goals can help to reinforce the staying on target for the goals.  Sometimes folks might not even realize that they had lost their way at some point in the journey... so it can sometimes be difficult to figure out ways to help people to stay on target to make sure that they are engaging in practices that help themselves rather than hurting themselves.

[Brizi5000]

Your idea of taking profits is pretty vague, liasbaa, and it does not seem like an investor kind of a mindset, especially if investors are taking 4-10 years or longer to build up their bitcoin holdings.  Why would we be thinking about "taking profits?" Are we looking at dollar profits?  What is the point that you are wanting to make with your "profits taking" ideas?  What are you planning to do with such "profits?"   Are you of the opinion that everyone is motivated by "profits" whether they are in bitcoin for the long term or the short term?  What level of profits should motivate you?  

I am trying to say in this paragraph is to keep accumulating Bitcoin as long as you have a steady stream of income or a source of discretionary income. My main point is not to tempt investors to take short term profits because many are ready to take their long term investments to the trading stage if they see a pumping season. It is not a good sign for investors to sell Bitcoin for a small profit before accumulating it for the long term.

For example, you are accumulating Bitcoin with a long term plan through a DCA strategy through discretionary income. The target is 4-10 years but within 3 years you see a pumping in the price, greed is a big barrier for investors to achieve their goals. What I am trying to say is that DCA is a great way to achieve your main Bitcoin holding target.

the income must not be steady before we can accumulate and invest in bitcoin because there are those who works as contractors, they don't get to receive money or salaries steady weather weekly or monthly salary, the only time they can get money sometimes is after they might have gotten and finished a particular contract. such people doesn't have a steady income stream are you going to suggest that since their income is not always stable or steady that they should not be buying bitcoin? what is only needed is discretionary income to buy with and not a steady stream of income.

[JayJuanGee]

Your idea of taking profits is pretty vague, liasbaa, and it does not seem like an investor kind of a mindset, especially if investors are taking 4-10 years or longer to build up their bitcoin holdings.  Why would we be thinking about "taking profits?" Are we looking at dollar profits?  What is the point that you are wanting to make with your "profits taking" ideas?  What are you planning to do with such "profits?"   Are you of the opinion that everyone is motivated by "profits" whether they are in bitcoin for the long term or the short term?  What level of profits should motivate you?  

I am trying to say in this paragraph is to keep accumulating Bitcoin as long as you have a steady stream of income or a source of discretionary income. My main point is not to tempt investors to take short term profits because many are ready to take their long term investments to the trading stage if they see a pumping season. It is not a good sign for investors to sell Bitcoin for a small profit before accumulating it for the long term.

For example, you are accumulating Bitcoin with a long term plan through a DCA strategy through discretionary income. The target is 4-10 years but within 3 years you see a pumping in the price, greed is a big barrier for investors to achieve their goals. What I am trying to say is that DCA is a great way to achieve your main Bitcoin holding target.

the income must not be steady before we can accumulate and invest in bitcoin because there are those who works as contractors, they don't get to receive money or salaries steady weather weekly or monthly salary, the only time they can get money sometimes is after they might have gotten and finished a particular contract. such people doesn't have a steady income stream are you going to suggest that since their income is not always stable or steady that they should not be buying bitcoin? what is only needed is discretionary income to buy with and not a steady stream of income.

The more irrregular a person's income and/or expenses, then the more challenging for him to determine the extent to which he has discretionary funds available, so if he makes mistakes with his determination of his having discretionary funds, then he might suffer from that - unless he merely keeps larger amounts of cash reserves in order to cushion his financial flows in order to account for potential mistakes in his determination of his having discretionary funds available.

[ZeroVinsonN]

There is not perfect time to buy bitcoin, or should I say that everytime is a perfect time to buy bitcoin, don't end up growing regret and doubt about your investment because of the time you started investing instead try to make the most of it regardless, stay consistent, stay disciplined and be ready to HODL for long term, don't pressure yourself unnecessarily by trying to time the market either, even people who rightfully initiate the buy the DIP strategy don't wait for a dip but are ready for it when it comes so that they can take maximum advantage of it.

You cannot have both.  When you prepare for the dip to take maximum advantage of it, there are trade offs, and sure there can be times in which having some money for buying the dip is a good thing rather than using all of it to buy at whatever the price is.  Guys with more discretionary income (and perhaps other investments/savings) have more options to save resources for the dip, and it may or may not be a good idea to do so, yet describing buying the dip as if it does not have trade offs, is an incorrect way of describing it, even if some reasonable balance has been reached by persons who choose to supplement their DCA with such strategies.

I see your point and it makes alot of sense as it will make more sense for an investor to keep accumulating bitcoin with the DCA method than expect to buy the DIP, I am very much against waiting for a DIP when you can just keep accumulating with the DCA especially since there I not guarantee that a dip will happen so it just makes more sense to invest with the DCA.
It was Christmas last week and most of now all work places give Christmas bonuses to their employees and while a person might have alot more to spend their discretionary on there is still the chance that most of that bonus ends up not being used which means that an investor can decide to use it to buy bitcoin, they could spread out over a few weeks and DCA with it increasing how much they buy or if a dip happens (to an extent we are still experiencing a DIP right now) they can decide to buy the DIP with the money thereby taking advantage of the opportunity that presented itself to them to buy the DIP.

[Hardyrobust]

Your idea of taking profits is pretty vague, liasbaa, and it does not seem like an investor kind of a mindset, especially if investors are taking 4-10 years or longer to build up their bitcoin holdings.  Why would we be thinking about "taking profits?" Are we looking at dollar profits?  What is the point that you are wanting to make with your "profits taking" ideas?  What are you planning to do with such "profits?"   Are you of the opinion that everyone is motivated by "profits" whether they are in bitcoin for the long term or the short term?  What level of profits should motivate you?  

I am trying to say in this paragraph is to keep accumulating Bitcoin as long as you have a steady stream of income or a source of discretionary income. My main point is not to tempt investors to take short term profits because many are ready to take their long term investments to the trading stage if they see a pumping season. It is not a good sign for investors to sell Bitcoin for a small profit before accumulating it for the long term.

For example, you are accumulating Bitcoin with a long term plan through a DCA strategy through discretionary income. The target is 4-10 years but within 3 years you see a pumping in the price, greed is a big barrier for investors to achieve their goals. What I am trying to say is that DCA is a great way to achieve your main Bitcoin holding target.

the income must not be steady before we can accumulate and invest in bitcoin because there are those who works as contractors, they don't get to receive money or salaries steady weather weekly or monthly salary, the only time they can get money sometimes is after they might have gotten and finished a particular contract. such people doesn't have a steady income stream are you going to suggest that since their income is not always stable or steady that they should not be buying bitcoin? what is only needed is discretionary income to buy with and not a steady stream of income.

The more irrregular a person's income and/or expenses, then the more challenging for him to determine the extent to which he has discretionary funds available, so if he makes mistakes with his determination of his having discretionary funds, then he might suffer from that - unless he merely keeps larger amounts of cash reserves in order to cushion his financial flows in order to account for potential mistakes in his determination of his having discretionary funds available.

Yes it is true. If somebody doesn't have a stable income, they may find it difficult to determine availability of discretionary income or the amount of discretionary they have. Since the income isn't stable they may end up using more than there discretionary income for buying bitcoin and this may put them into financial pressures they never expected. The best thing is to set aside a back up funds that is large so that incase they mistakenly used more than there discretionary income for buying bitcoin, they can always fall back to the reserve funds/ back up funds in other to be able to meet up with there expenses.

[POPOLUV]

I doubt that trying to apply all three strategies is a good idea to apply merely for the sake of applying all three strategies.  DCA works for almost all situations, and there might be situations where lump sum and/or buying the dip might serve as good supplements.

Generally buying the dip might be a good strategy to apply if someone already has invested a good amount at once (such as lump sum) so then buy the dip could just serve as a way to protect in case the BTC price ends up dropping after a large amount of BTC had already been bought at one price.

There could be other situations where buy the dip works, but there are trade offs in doing it, so perhaps some of my quibbling is when guys try to assert buy the dip as if it were absolutely the right thing to do and to act as if there were not trade-offs.

And of course, guys are free to choose the kinds of trade offs that they want to make, yet it seems a bit self deceptive if they plan to employ some kind of a buy the dip strategy and then to present the situation as if there weren't any tradeoffs.

You’re right, I think it’s very bizarre to applying all three strategies at once when you can actually apply the DCA through buying Bitcoin and it would be more efficient and can always cover for other strategies, I know most people who have a very large amount of money saved somewhere could actually want to exercise buying Bitcoin through the lump sum which I think it’s also good for them, and can still decide to be buying through the DCA every week on a regular basis, but buying the dip can actually be more appreciated if we have an opportunity of saving some money for the dip, while we can still continue buying Bitcoin on a regular basis.
So I think there are ways that individual investors could actually try approaching the market that would be more lucrative and efficient for them.

All the strategies have advantages and disadvantages. Buying the dip isn't and exceptions and more over the stress of timing the market and waiting can make an investor to miss market opportunities. For a newbie I won't recommend buying the dip as the best strategy for them to start with. Just like jayjayjuangee has rightly pointed out , an investor that has lump sum with huge amount can make use of buying the dip as this will act as a hedge incase of sudden decline in price of bitcoin. DCA strategy still stands as a good strategy and doing DCA shouldn't stop anyone from buying the dip provided the extra cash is there.

I totally agree with you because if actually a newbie was told from the beginning of his Bitcoin portfolio within or out side the forum that he needs to wait when the dip finally happens before considering of buying he/she is really missing out market opportunities were he could have accumulated so many Bitcoin with DCA strategy, like wise as i always advise to all newbies within the forum that the hours of investing is now, if have not started buying and if you have started buying it is not a bad idea of adding to the one that you have bought already to accumulate as much as you your discretionary income can carry.

[abaeze]

Your idea of taking profits is pretty vague, liasbaa, and it does not seem like an investor kind of a mindset, especially if investors are taking 4-10 years or longer to build up their bitcoin holdings.  Why would we be thinking about "taking profits?" Are we looking at dollar profits?  What is the point that you are wanting to make with your "profits taking" ideas?  What are you planning to do with such "profits?"   Are you of the opinion that everyone is motivated by "profits" whether they are in bitcoin for the long term or the short term?  What level of profits should motivate you?  

I am trying to say in this paragraph is to keep accumulating Bitcoin as long as you have a steady stream of income or a source of discretionary income. My main point is not to tempt investors to take short term profits because many are ready to take their long term investments to the trading stage if they see a pumping season. It is not a good sign for investors to sell Bitcoin for a small profit before accumulating it for the long term.

For example, you are accumulating Bitcoin with a long term plan through a DCA strategy through discretionary income. The target is 4-10 years but within 3 years you see a pumping in the price, greed is a big barrier for investors to achieve their goals. What I am trying to say is that DCA is a great way to achieve your main Bitcoin holding target.

the income must not be steady before we can accumulate and invest in bitcoin because there are those who works as contractors, they don't get to receive money or salaries steady weather weekly or monthly salary, the only time they can get money sometimes is after they might have gotten and finished a particular contract. such people doesn't have a steady income stream are you going to suggest that since their income is not always stable or steady that they should not be buying bitcoin? what is only needed is discretionary income to buy with and not a steady stream of income.

The more irrregular a person's income and/or expenses, then the more challenging for him to determine the extent to which he has discretionary funds available, so if he makes mistakes with his determination of his having discretionary funds, then he might suffer from that - unless he merely keeps larger amounts of cash reserves in order to cushion his financial flows in order to account for potential mistakes in his determination of his having discretionary funds available.

Yes it is true. If somebody doesn't have a stable income, they may find it difficult to determine availability of discretionary income or the amount of discretionary they have. Since the income isn't stable they may end up using more than there discretionary income for buying bitcoin and this may put them into financial pressures they never expected. The best thing is to set aside a back up funds that is large so that incase they mistakenly used more than there discretionary income for buying bitcoin, they can always fall back to the reserve funds/ back up funds in other to be able to meet up with there expenses.

It is true that if anyone have irregular income, they may misunderstand their discretionary fund, but does that mean they will not invest? Of course, they will, in that case, they should keep a reserve/emergency fund and start investing in Bitcoin or other investments later. If someone suspects that they may need this money, then it is no longer investment money, but investing with that money is like gambling with the investment money. The strongest protection for people with irregular income to invest in Bitcoin is to invest in small amounts, irregularly but with the understanding of the opportunity, never borrowing money.

[GIF-JOBS]

Your idea of taking profits is pretty vague, liasbaa, and it does not seem like an investor kind of a mindset, especially if investors are taking 4-10 years or longer to build up their bitcoin holdings.  Why would we be thinking about "taking profits?" Are we looking at dollar profits?  What is the point that you are wanting to make with your "profits taking" ideas?  What are you planning to do with such "profits?"   Are you of the opinion that everyone is motivated by "profits" whether they are in bitcoin for the long term or the short term?  What level of profits should motivate you?  

I am trying to say in this paragraph is to keep accumulating Bitcoin as long as you have a steady stream of income or a source of discretionary income. My main point is not to tempt investors to take short term profits because many are ready to take their long term investments to the trading stage if they see a pumping season. It is not a good sign for investors to sell Bitcoin for a small profit before accumulating it for the long term.

For example, you are accumulating Bitcoin with a long term plan through a DCA strategy through discretionary income. The target is 4-10 years but within 3 years you see a pumping in the price, greed is a big barrier for investors to achieve their goals. What I am trying to say is that DCA is a great way to achieve your main Bitcoin holding target.

the income must not be steady before we can accumulate and invest in bitcoin because there are those who works as contractors, they don't get to receive money or salaries steady weather weekly or monthly salary, the only time they can get money sometimes is after they might have gotten and finished a particular contract. such people doesn't have a steady income stream are you going to suggest that since their income is not always stable or steady that they should not be buying bitcoin? what is only needed is discretionary income to buy with and not a steady stream of income.

The more irrregular a person's income and/or expenses, then the more challenging for him to determine the extent to which he has discretionary funds available, so if he makes mistakes with his determination of his having discretionary funds, then he might suffer from that - unless he merely keeps larger amounts of cash reserves in order to cushion his financial flows in order to account for potential mistakes in his determination of his having discretionary funds available.

Yes it is true. If somebody doesn't have a stable income, they may find it difficult to determine availability of discretionary income or the amount of discretionary they have. Since the income isn't stable they may end up using more than there discretionary income for buying bitcoin and this may put them into financial pressures they never expected. The best thing is to set aside a back up funds that is large so that incase they mistakenly used more than there discretionary income for buying bitcoin, they can always fall back to the reserve funds/ back up funds in other to be able to meet up with there expenses.

It is true that if anyone have irregular income, they may misunderstand their discretionary fund, but does that mean they will not invest? Of course, they will, in that case, they should keep a reserve/emergency fund and start investing in Bitcoin or other investments later. If someone suspects that they may need this money, then it is no longer investment money, but investing with that money is like gambling with the investment money. The strongest protection for people with irregular income to invest in Bitcoin is to invest in small amounts, irregularly but with the understanding of the opportunity, never borrowing money.

Of course, investing with money you can't afford to lose can sometimes be a bit like gambling, especially when you expect short-term success from Bitcoin. Those who think that now is a good time to buy, through unrealistic thinking, invest more money than they can afford, hoping that they will get success from it in a very short time, and later they will use this money to meet their needs and have fun with the profits they have made from this short-term investment, but is it a realistic decision to take these things as easy as that? Never, such a decision can only lead to losses, although many will not realize it at first, but when they have already lost, they will realize, but then there will be no other choice.

[Mr_Brilliant$]

You’re right, I think it’s very bizarre to applying all three strategies at once when you can actually apply the DCA through buying Bitcoin and it would be more efficient and can always cover for other strategies, I know most people who have a very large amount of money saved somewhere could actually want to exercise buying Bitcoin through the lump sum which I think it’s also good for them, and can still decide to be buying through the DCA every week on a regular basis, but buying the dip can actually be more appreciated if we have an opportunity of saving some money for the dip, while we can still continue buying Bitcoin on a regular basis.
So I think there are ways that individual investors could actually try approaching the market that would be more lucrative and efficient for them.

If you are a new investor, then even if you have a lot of money, you should adopt the DCA method. Because the Bitcoin market is very volatile, no one can say what will happen in the market. So if a new person invests a lot of money at once and if the market falls after some time, he may panic and sell his holdings. So a new investor should not think of buying DIP until he is able to build confidence in Bitcoin.

If an experienced investor suddenly gets some money or gets a lot of money, then he can buy using any investment method

Yeah, DCaing makes a lot of sense..  For any investors and even for new investors, DCA is not about profit first, it is you learning how to sit through the ups and down without panicking… Because for instant when someone goes all in early and the market drops, emotions will take over and that is when bad decisions start to happen..
DCA will help you build confidence with time..
Once you person understands Bitcoin and has been through or studied a few market cycles, you will understand the reason why majority of persons choose DCA..

[Bigjoe33]

 they should keep a reserve/emergency fund and start investing in Bitcoin or other investments later. If someone suspects that they may need this money, then it is no longer investment money, but investing with that money is like gambling with the investment money.

Why investing in other investments? Don't you think that bitcoin holds better future than the other investments you might be thinking of, or trying to invest in bitcoin and other investments all at once might cause the investor to loose concentration and may not reach his long term investment plan?

It's better an investor concentrates on accumulating Bitcoin and trying to reach his initial investment plan and/or over accumulation stage rather than diversifying to other investments that may make him loose focus. Of course, bitcoin investment maybtike time to mature and yield profit, and that's why it is called investment and a long one at that, but if you are able to buy consistently and HODL, for a long time(4-10 years and above), it is worth the wait

[I_Anime]

Your idea of taking profits is pretty vague, liasbaa, and it does not seem like an investor kind of a mindset, especially if investors are taking 4-10 years or longer to build up their bitcoin holdings.  Why would we be thinking about "taking profits?" Are we looking at dollar profits?  What is the point that you are wanting to make with your "profits taking" ideas?  What are you planning to do with such "profits?"   Are you of the opinion that everyone is motivated by "profits" whether they are in bitcoin for the long term or the short term?  What level of profits should motivate you?  

I am trying to say in this paragraph is to keep accumulating Bitcoin as long as you have a steady stream of income or a source of discretionary income. My main point is not to tempt investors to take short term profits because many are ready to take their long term investments to the trading stage if they see a pumping season. It is not a good sign for investors to sell Bitcoin for a small profit before accumulating it for the long term.

For example, you are accumulating Bitcoin with a long term plan through a DCA strategy through discretionary income. The target is 4-10 years but within 3 years you see a pumping in the price, greed is a big barrier for investors to achieve their goals. What I am trying to say is that DCA is a great way to achieve your main Bitcoin holding target.

the income must not be steady before we can accumulate and invest in bitcoin because there are those who works as contractors, they don't get to receive money or salaries steady weather weekly or monthly salary, the only time they can get money sometimes is after they might have gotten and finished a particular contract. such people doesn't have a steady income stream are you going to suggest that since their income is not always stable or steady that they should not be buying bitcoin? what is only needed is discretionary income to buy with and not a steady stream of income.

The more irrregular a person's income and/or expenses, then the more challenging for him to determine the extent to which he has discretionary funds available, so if he makes mistakes with his determination of his having discretionary funds, then he might suffer from that - unless he merely keeps larger amounts of cash reserves in order to cushion his financial flows in order to account for potential mistakes in his determination of his having discretionary funds available.

Yes is possible that one can actually accumulate bitcoin without having any form of stable income . But is still advisable that you have other sources to make things smoother and easier . Because if one is a contract worker he or she won’t always know when is service would be needed , and sometime they can stay for a while without seeing any client , and such can literally affect the growth of one investment . So the best is having other sources that would help to cover that gap.

[Obulis]

You’re right, I think it’s very bizarre to applying all three strategies at once when you can actually apply the DCA through buying Bitcoin and it would be more efficient and can always cover for other strategies, I know most people who have a very large amount of money saved somewhere could actually want to exercise buying Bitcoin through the lump sum which I think it’s also good for them, and can still decide to be buying through the DCA every week on a regular basis, but buying the dip can actually be more appreciated if we have an opportunity of saving some money for the dip, while we can still continue buying Bitcoin on a regular basis.
So I think there are ways that individual investors could actually try approaching the market that would be more lucrative and efficient for them.

If you are a new investor, then even if you have a lot of money, you should adopt the DCA method. Because the Bitcoin market is very volatile, no one can say what will happen in the market. So if a new person invests a lot of money at once and if the market falls after some time, he may panic and sell his holdings. So a new investor should not think of buying DIP until he is able to build confidence in Bitcoin.

If an experienced investor suddenly gets some money or gets a lot of money, then he can buy using any investment method

If you have big money as a bitcoin investor and it is your discretionary income i don't see anything wrong by trying to invest with it at ones, an investor who is holding BTC for a long time will not be afraid of market volatility because bitcoin must dip and it will also increase, it is trader that will be afraid or panic when the market is dipping because his intentions will always be to buy low and when the price of bitcoin increases, if you have alot of cash as your discretionary income and you want to buy bitcoin with it all i don't think that's a sin the most important thing is that you use to buy a valuable asset as bitcoin and your investment plan is for long term like 4-10 and above.

Honestly, the advantages of DCA is very fine for a newbie, applying DCA strategy instead of lump sum or thinking of the dip will enable the newbies to grow in knowledge and also meet dip (that's buying at different price) as a result of obvious volatility. In as much as it is a personal decision on which approach to follow, newbies needs opportunity to grow past basics and DCA offer that chance of investing while learning or growing above basic knowledge.

[PhilosopherKing]

You are correct. Regular people may well get distracted by short-term profits, and they might be tempted either to sell or to discontinue their buying.

We cannot stop folks from doing what might not be in their better interest, and they might rather want to take the sure deal of cashing out rather than continuing to invest in bitcoin, even though it may well be better for them to keep building their bitcoin holdings since they had not yet reached their accumulation target.  So, yeah, some guys get distracted off their target and their having had gotten distracted might cause it to become difficult or maybe even almost impossible for them to reach the target that they could have had been able to reach if they had just stayed following their original plan.  Sometimes a certain set of ritual, perhaps ongoing buying and/or reviewing status towards goals can help to reinforce the staying on target for the goals.  Sometimes folks might not even realize that they had lost their way at some point in the journey... so it can sometimes be difficult to figure out ways to help people to stay on target to make sure that they are engaging in practices that help themselves rather than hurting themselves.

This is correct and that is the reason why people need to quit from their obsession over short term profit. The time when someone starts focusing on quick short profit, that that person is on the verge of drifting from their long term planning, and before they realize what is happening, they are already running to selling very early thereby fucking up their portfolio by becoming a no coiner

And when people begin selling before hitting their accumulation target, to get back on their plan will not be easy because they will start waiting for the perfect lower price which may never come. So it is better that people stop obsessing on short price pump and focus on their long plan