Should I wait or save a little?

[LonelyEcho]

Hello everyone. I am new here. I am trying to learn a lot about Bitcoin. I read in various threads that people are talking about two types of investment methods. I wanted to participate in their discussion. But some of them are giving more priority to the DCA method. Again, someone is saying that waiting for the DIP is less risky. I posted it on our local board to make the matter clear. I would be grateful if our experts here could clarify a few things.

I read that DCA means buying in small increments. If I have a lot of extra money in the beginning, should I invest most of it? Or should I start investing in small increments?

One thing to know is that I can invest a small amount every month from my monthly income.

Another big thing is buying in DIP. I have read many times that everyone is talking about the opportunity to buy in DIP. If you wait to buy in DIP, the risk is less. But I cannot agree with this statement. Please clarify the matter in a simple way.

 The reason I disagree is that no one knows when the price will come down. Suppose I waited 6 months or 8 months to buy in DIP. Suddenly the price increased to 170k and then the price decreased to 125k. This is more than the current price. If I wait like this, I feel like I will have to settle for less profit instead of the excess profit.

I don't know if anything like this happens. If it does, then waiting seems risky.

So why does everyone talk about buying in DIP?

Those who are experienced in the above issues, please tell me from your real experience so that the matter can be clear. I don't want to do anything based on assumptions. I want to learn from your real experience and implement it in my life.

[Kagaru]

Well as far as i know i try to explain, First of all i want to say "Don't try to time the market. Spend time in the market." If you are patient, and understand the risks, it is possible to profit in crypto.

DCA is a strategy where you invest the same amount of money at a fixed time (say once a month) at any price. It is especially effective when someone wants to invest for the long term and does not want to time the market. Since you said, you can invest a part of your monthly income, DCA is suitable for you.

And the strategy of buying DIP is more like a hunter waiting for an opportunity. But you have brought up a very good point "no one knows when the price will come down." Exactly. Many times while waiting for DIP, the main train gets lost. I am saying this from my own experience.

So, my advice if you want to invest a large sum of money at once, then divide it and put it in the DCA model. Suppose you have funds for 6 months of DCA now then spread it in 6 installments. In this way, you will get profit if the price falls, and if the price gradually increases, you can also get on the train.
You can also keep some funds separate for DIP. Suppose the market suddenly went into a very big correction, then you can use that fund.

[igebotz]

The reason I disagree is that no one knows when the price will come down. Suppose I waited 6 months or 8 months to buy in DIP. Suddenly the price increased to 170k and then the price decreased to 125k. This is more than the current price. If I wait like this, I feel like I will have to settle for less profit instead of the excess profit.

Sounds like someone who is interested in Short term gains; if you're that person then Bitcoin is not for you cause you won't make any profit from it and may be forced to sell at loss. Dip doesn't matter if you're in for a long term let say 2-4 years at least cause the new ATH always surpasses the previous ones.

If you have too much spare money on you there's no reason to not go all in and DCA monthly to increase your stash - ignore the price entirely. If you're looking for a short term gain, invest in altcoins.

Ps: If you're unsure if any investment, do not invest.

[BIT-BENDER]

You are the one making it complicated for yourself thinking about dip when it has to do with Bitcoin, they more you think about it the more you may create panic for yourself or have indecision.
It's your money in the first place so don't take any advice without first doing your research.

But I will tell you this work at your pace, after you have made up your mind to go for Bitcoin then you should structure a way to invest it could be weekly, monthly or what you decide but make sure you are also keeping emergency funds for yourself because it will help you to hold your Bitcoin longer and not touch when something pressing comes up.

[Kelward]

 The reason I disagree is that no one knows when the price will come down. Suppose I waited 6 months or 8 months to buy in DIP. Suddenly the price increased to 170k and then the price decreased to 125k. This is more than the current price. If I wait like this, I feel like I will have to settle for less profit instead of the excess profit.

I don't know if anything like this happens. If it does, then waiting seems risky.

So why does everyone talk about buying in DIP?

Those who are experienced in the above issues, please tell me from your real experience so that the matter can be clear. I don't want to do anything based on assumptions. I want to learn from your real experience and implement it in my life.

You have successfully answered your question and I can't agree less with you, there's no reason to wait for the perfect dip before you buy Bitcoin. Bitcoin don proof say im be store of value because im get di potentials to de reach ATH after every dip. So if your goal na to de buy and hodl for di long term you no go mind di current price wey you want to buy am because you de sure say you go make profit in the future. Dat dip wey you de wait for before you buy fit to no happen again and if you misuse di money e mean say you don miss dat buying opportunity.

DCA method na di best strategy for investors wey want to hodl Bitcoin for a long term, e go help dem to de focused on their long term accumulation. But before you go start DCA method you need to make sure say you get discretionary funds. E no de good to use funds for essential expenses like food and rent to de buy Bitcoin. Di implication be say wen di need for essential expenses arise you go de forced to sell your Bitcoin prematurely. Bitcoin investment de very profitable but no be matter of life and death, make sure say your essential needs de on ground before you buy Bitcoin.

[Gozie51]

 The reason I disagree is that no one knows when the price will come down. Suppose I waited 6 months or 8 months to buy in DIP. Suddenly the price increased to 170k and then the price decreased to 125k. This is more than the current price. If I wait like this, I feel like I will have to settle for less profit instead of the excess profit.

Buying at what price exactly? You didn't mention that. However, if you bought below $125k and price rose to $170j and fell back to $125k, you will still be in profit to the extent of the price difference between $125k down to how much you bought. But if you bought above $125k then you will be at loss to the difference of how much you bought from $125k.

So why does everyone talk about buying in DIP?

It is a time of the price that you think the price has come lower or very low so that you have better and bigger profit margin if the price starts to rise in your favour. For example, if in June, the price of bitcoin is $110k and you buy at that time. And in July, the price increase to $113k and starts to bull then you are lucky to buy at the right time, which can be regarded as the dip.

But on the contrary, if you buy at $110k in June and in July the price dipped to $105k then you will be at a loss maybe temporarily until the price starts to increase above your entry point. With this example, you can't compare your profit margin to the first example because the first buy profit will be higher.

Buying the dip is simply buying at a lower price but the challenge is knowing the dip. Because, you can buy today and thinking you have bought dip but the price keeps falling. Therefore, you need to DYOR before investing.

[ruykeri]

You have described two investments through this. If you can buy Bitcoin at a dip, that is good, but no one knows when the dip will actually come. If the dip does not come and the price continues to rise, then you have missed the opportunity and will remain a no-coiner or low-coiner for many days. Suppose the price keeps falling, but many times it is difficult to identify the real dip. Sometimes the comparative price decreases and then remains stable for a few days, and then the price decreases by a lot. Again, the price may rise again before the price falls. Now if you can invest by following DCA, then the investment will not be affected by the price being low or high. If you do DCA, you can buy Bitcoin at the average price. Here, even if the price decreases or increases, there is no mental instability. Because if you do DCA for a long time, you will make a profit at the end of the day. DCA is basically relatively safe, easy for new investors, and less risky than the dip. Many experienced investors invest according to DCA and opportunistic dips. They do regular DCA, but when they see that the price has dropped significantly, they invest more aggressively than expected so that they can buy more Bitcoins at a lower price.

[Barikui1]

.
If you have too much spare money on you there's no reason to not go all in and DCA monthly to increase your stash - ignore the price entirely. If you're looking for a short term gain, invest in altcoins.

I think it would be better you add a disclaimer to your statement that it's not a financial advice, because this guy is a newbie that knows little or nothing about the crypto industry, so telling him to invest in alt coin if he is looking for short term gains can be very dangerous because he doesn't really knows how to analyze a coin to know if it's good or not  for short term investment, or he might even invest in meme coin thinking that it's alt coin, and you and I knows how dangerous meme coin are when it comes to volatility, so the only coin he should focus on for now is Bitcoin, because it stands as a safe heaven for newbie investors, since it can't fall or collapse as most alt or meme coin does in the market.
So I would only advice that he sticks to Bitcoin till he is mature enough in the space to gamble on alt or meme coin.

[Bigjoe33]

Hello everyone. I am new here. I am trying to learn a lot about Bitcoin. I read in various threads that people are talking about two types of investment methods. I wanted to participate in their discussion. But some of them are giving more priority to the DCA method. Again, someone is saying that waiting for the DIP is less risky. I posted it on our local board to make the matter clear. I would be grateful if our experts here could clarify a few things.

I read that DCA means buying in small increments. If I have a lot of extra money in the beginning, should I invest most of it? Or should I start investing in small increments?

One thing to know is that I can invest a small amount every month from my monthly income.

Another big thing is buying in DIP. I have read many times that everyone is talking about the opportunity to buy in DIP. If you wait to buy in DIP, the risk is less. But I cannot agree with this statement. Please clarify the matter in a simple way.

 The reason I disagree is that no one knows when the price will come down. Suppose I waited 6 months or 8 months to buy in DIP. Suddenly the price increased to 170k and then the price decreased to 125k. This is more than the current price. If I wait like this, I feel like I will have to settle for less profit instead of the excess profit.

I don't know if anything like this happens. If it does, then waiting seems risky.

So why does everyone talk about buying in DIP?

Generally, as a newbie, it's best you accumulate Bitcoin using the DCA strategy, it's a method that allows you accumulate Bitcoin in small amounts weekly or monthly depending on when you income comes in. And most importantly, before embarking on this investment, it must be done from your discretionary income. Your discretionary funds is the extra cash left with you after you must have settled your basic needs or expenses. So with this discretionary, you can now invest in Bitcoin gradually.

Note that using only your discretionary for investment is so important because if you use your main income to invest in Bitcoin without settling your basic needs, then how would you survive when need arises like food stuffs, Tp fair and other needs. And secondly, if the price of Bitcoin falls, you would panic and immediately want to sell to get your money back. So you see why it's important that you first settle your basic needs first before using the left discretionary to carry out your investment.

Buying the Dip isn't bad, but as a begginer, it's better your start with the DCA as I mentioned earlier. With time, while you are building up your Bitcoin holdings, and also building up your emergency funds and other back up funds along side, then you can think of buying the Dip if opportunity presents itself if you have extra cash saved for it.

Sounds like someone who is interested in Short term gains; if you're that person then Bitcoin is not for you cause you won't make any profit from it and may be forced to sell at loss. Dip doesn't matter if you're in for a long term let say 2-4 years at least cause the new ATH always surpasses the previous ones.

If you have too much spare money on you there's no reason to not go all in and DCA monthly to increase your stash - ignore the price entirely. If you're looking for a short term gain, invest in altcoins.

Ps: If you're unsure if any investment, do not invest.

Yea! You actually right. A newbie that has extra cash or spare money gotten from discretionary can as well just increase his DCA accumulation amount and keep stacking instead of waiting to buy the Dip, and sure he would learn more about the market and how things work as he keeps buying. Waiting for the Dip seems just like waiting for what you are not sure of, thereby wasting quality time that could have been used to accumulate bitcoin in small quantities using the said DCA.

And lastly, one shouldn't invest in any investment one is not sure of. Even though we know investments are risky, Bitcoin not left out, but Bitcoin have proven over the years of it's worth and potential value is we Hodl for long.

[Tmoonz]

Well as far as i know i try to explain, First of all i want to say "Don't try to time the market. Spend time in the market." If you are patient, and understand the risks, it is possible to profit in crypto.

DCA is a strategy where you invest the same amount of money at a fixed time (say once a month) at any price. It is especially effective when someone wants to invest for the long term and does not want to time the market. Since you said, you can invest a part of your monthly income, DCA is suitable for you.

From the first statement you where not being specific about the crypto you are talking about and that can be misleading, the concept of the topic is centered on Bitcoin and not crypto in general, newbies coming in to the thread might think that you are talking about all the cryptos whereas it Bitcoin we are discussing here.
Secondly there are lot of flexibilities in utilizing the DCA strategy of accumulating Bitcoin, it is not limited to only using same amount of money nor at a fixed time , with DCA investment can be made with a different amount and on different intervals of time and it will still be considered to be called DCA.

[igebotz]

I think it would be better you add a disclaimer to your statement that it's not a financial advice, because this guy is a newbie that knows little or nothing about the crypto industry, so telling him to invest in alt coin if he is looking for short term gains can be very dangerous because he doesn't really knows how to analyze a coin to know if it's good or not  for short term investment, or he might even invest in meme coin thinking that it's alt coin, and you and I knows how dangerous meme coin are when it comes to volatility, so the only coin he should focus on for now is Bitcoin, because it stands as a safe heaven for newbie investors, since it can't fall or collapse as most alt or meme coin does in the market.
So I would only advice that he sticks to Bitcoin till he is mature enough in the space to gamble on alt or meme coin.

A newbie rank in the forum agreed but we don't know his level of experienced in crypto space and besides my statement was just an "IF" statement and not an advice 

Experience is the best teacher, we have all experienced loss/liquidation in crypto at some point in our early journey. Newbies learn best from experience, allow them to make mistakes so they learn from experience and real quick too.

[Barikui1]

I think it would be better you add a disclaimer to your statement that it's not a financial advice, because this guy is a newbie that knows little or nothing about the crypto industry, so telling him to invest in alt coin if he is looking for short term gains can be very dangerous because he doesn't really knows how to analyze a coin to know if it's good or not  for short term investment, or he might even invest in meme coin thinking that it's alt coin, and you and I knows how dangerous meme coin are when it comes to volatility, so the only coin he should focus on for now is Bitcoin, because it stands as a safe heaven for newbie investors, since it can't fall or collapse as most alt or meme coin does in the market.
So I would only advice that he sticks to Bitcoin till he is mature enough in the space to gamble on alt or meme coin.

A newbie rank in the forum agreed but we don't know his level of experienced in crypto space and besides my statement was just an "IF" statement and not an advice 

Experience is the best teacher, we have all experienced loss/liquidation in crypto at some point in our early journey. Newbies learn best from experience, allow them to make mistakes so they learn from experience and real quick too.

Though you are right, we all have our own share of bad experience in the space that we hardly forget, but their are some crazy folks in our society that tends to pushes blame easily anytime they makes a bad decisions.

They will be like, I never wanted to do it, or invest in this or that asset, it was barikui1 that advice me to do such🤣🤣🤣
It's crazy though, but no wahala, nothing spoil.

[LonelyEcho]

The reason I disagree is that no one knows when the price will come down. Suppose I waited 6 months or 8 months to buy in DIP. Suddenly the price increased to 170k and then the price decreased to 125k. This is more than the current price. If I wait like this, I feel like I will have to settle for less profit instead of the excess profit.

Sounds like someone who is interested in Short term gains; if you're that person then Bitcoin is not for you cause you won't make any profit from it and may be forced to sell at loss. Dip doesn't matter if you're in for a long term let say 2-4 years at least cause the new ATH always surpasses the previous ones.

If you have too much spare money on you there's no reason to not go all in and DCA monthly to increase your stash - ignore the price entirely. If you're looking for a short term gain, invest in altcoins.

Ps: If you're unsure if any investment, do not invest.

I don't really want to lean towards short-term investments. I know that I won't be able to build my future with short-term investments. Because money doesn't come that easily. I don't want to keep my income as fiat money, but rather use it properly and save it for the future. I am currently employed. I have a plan that as long as I work, I will invest with extra money after meeting my family's needs and all my needs. I don't know how long I will be able to work. Let's assume that I will work for another 10 years or more. Then there may come a time when I will not be physically and mentally able to work. Thinking about that time, I have made this plan as a future security. When my income stops, I can meet my lifestyle and family needs from investments. That's all I want.

That's why I basically want to know from you which way of investing will be easier for me.

[andywolfer]

DCA is usually safer because you’re always in the market and don’t risk missing a big move. Waiting for dips sounds good, but no one can predict them, so you might end up buying higher later. Many people do both: steady DCA plus adding extra only when there’s a clear dip.

[WhoYouCantKill]

Dollar-cost Averaging is more secured for some users as you continue to buy regularly not trying to predict the market. It takes away the stress of timing and avoids missing out when the price continues rising. Purchasing the dip may give larger profits when you time it properly, yet no one may be able to consistently know where the bottom is. Lots of those who wait for dip mostly ends in purchasing higher. So, DCA is reliable more on the long-term, though dip-buying is mainly of gambling.

[ZeroVinsonN]

Hello everyone. I am new here. I am trying to learn a lot about Bitcoin. I read in various threads that people are talking about two types of investment methods. I wanted to participate in their discussion. But some of them are giving more priority to the DCA method. Again, someone is saying that waiting for the DIP is less risky. I posted it on our local board to make the matter clear. I would be grateful if our experts here could clarify a few things.

I read that DCA means buying in small increments. If I have a lot of extra money in the beginning, should I invest most of it? Or should I start investing in small increments?

One thing to know is that I can invest a small amount every month from my monthly income.

Another big thing is buying in DIP. I have read many times that everyone is talking about the opportunity to buy in DIP. If you wait to buy in DIP, the risk is less. But I cannot agree with this statement. Please clarify the matter in a simple way.

 The reason I disagree is that no one knows when the price will come down. Suppose I waited 6 months or 8 months to buy in DIP. Suddenly the price increased to 170k and then the price decreased to 125k. This is more than the current price. If I wait like this, I feel like I will have to settle for less profit instead of the excess profit.

I don't know if anything like this happens. If it does, then waiting seems risky.

So why does everyone talk about buying in DIP?

Those who are experienced in the above issues, please tell me from your real experience so that the matter can be clear. I don't want to do anything based on assumptions. I want to learn from your real experience and implement it in my life.

At the end of the day all the different investment methods work, but as a newbie to bitcoin investment do you really pan on waiting for a very long for a DIP that might not even happen??? It's an unrealistic thing to do when you can start investing right away with DCA which has relatively lower psychological risk issues when compared with buying the DIP, and about having alot of extra cash in the beginning you can split this cash through a few weeks and invest them using the DCA or if you want to invest everything at once then you can do so using Lump sum purchase instead of spreading the money out over a long range, that said my advice would still be to DCA in the beginning so you don't put yourself through unnecessary stress when you do a Lump sum purchase and then the price of bitcoin drop and you start feeling like you are losing which can lead to you selling before you even start your investment journey.

[SmartCharpa]

From my own experience, there’s nothing good about waiting for the dip before buying or investing in Bitcoin, because you’re only trying to predict something you don’t have control over or even know if it will happen. Even as a newbie, just go and check what the first price of Bitcoin was compared to where it is today. I’m sure that alone will give you the answer, there is nothing good about chasing short term profit.

Now, what do you think is happening to those still waiting for the dip right now? They will just keep on waiting for a dip that might never come. Some months ago, Bitcoin price fell below $110k, and I believe there were people still waiting for it to drop below $100k before they invest. But look at where the price is today. You will see clearly that waiting for the dip or chasing short term gains is not the best way to invest in Bitcoin. The best plan is always long term.

[Marykeller]

If you are the type of investor that are interested in having a long term investment plan, whatever time you buy Bitcoin wouldn't give you much concern because the price of Bitcoin today wouldn't be the same in many years to come, that's an advantage.

Bitcoin, we all know, hasn't changed on that, to bring profits to us who are patient and have long-term goals. I don't think all that will change now, for history not to repeat itself for Bitcoin to increase over time to bring many profits for those who are patient and has a long term goal on Bitcoin

[Cryptoprincess101]

The reason I disagree is that no one knows when the price will come down. Suppose I waited 6 months or 8 months to buy in DIP. Suddenly the price increased to 170k and then the price decreased to 125k. This is more than the current price. If I wait like this, I feel like I will have to settle for less profit instead of the excess profit.

Sounds like someone who is interested in Short term gains; if you're that person then Bitcoin is not for you cause you won't make any profit from it and may be forced to sell at loss. Dip doesn't matter if you're in for a long term let say 2-4 years at least cause the new ATH always surpasses the previous ones.

If you have too much spare money on you there's no reason to not go all in and DCA monthly to increase your stash - ignore the price entirely. If you're looking for a short term gain, invest in altcoins.

Ps: If you're unsure if any investment, do not invest.

I like your advice to OP but the area i bolded in your reply is where i need a little bit explanation, is it a theory for the current ATH to surpass the previous ATH or you are just using past price performance to make your assertion. The reason for asking this question is in respect to the 2-4 years of investment you used as an example of a long-term investment even though you said ''at least''. In order to make it clearer, i want to know if it is norm for the previous ATH to surpass the current in every 4 years?

[Fiatless]

I don't really want to lean towards short-term investments. I know that I won't be able to build my future with short-term investments. Because money doesn't come that easily. I don't want to keep my income as fiat money, but rather use it properly and save it for the future. I am currently employed. I have a plan that as long as I work, I will invest with extra money after meeting my family's needs and all my needs. I don't know how long I will be able to work. Let's assume that I will work for another 10 years or more. Then there may come a time when I will not be physically and mentally able to work. Thinking about that time, I have made this plan as a future security. When my income stops, I can meet my lifestyle and family needs from investments. That's all I want.

That's why I basically want to know from you which way of investing will be easier for me.

If your plan is to invest and hodl for ten years or more and you are a salary earner, then adopt the DCA strategy.  The truth is that nobody can predict what the future holds for Bitcoin.  We might enter a bear season, but there is some speculation that due to massive institutional investments, the price might not drop drastically as it used to.

My advice will be don't look at the price, start buying. If you want someone who will forecast the future correctly, it might be difficult to find. This is why people speculate and not predict, because it might happen or the opposite.