Can you see that to average is also good, bitcoin has dropped below $100000, that makes it 20% investment if you follow my strategy.
You sound like a gambler and/or a wannabe influencer.
You are new here (only been here since August), and you seem to think that you know where the BTC price is going in the short to medium term? Sure, we might have some hunches about it, yet part of the reason that so many newbies buy bitcoin at any price (aka some version of DCA) is because they either don't have any BTC or they have a low amount of BTC, so they have to prepare for UP in case it happens.
The ONLY way to prepare for UP is by buying BTC, and many guys take a whole cycle (that is 4 years) of ongoing buying of bitcoin before they start to feel somewhat prepared for UP. If you are not buying you are not preparing for up. Sure, you might get lucky and the BTC price might fall, yet it might not. If you are spending a lot of time waiting for something like $70k, not buying then you may well end up feeling a lot of FOMO when the price goes shooting up, and then you might be questioning yourself why you were so presumptuous about the BTC price and expecting it to go down and you could have had been buying, but you didn't because you were too busy waiting and trying to act like you knew where the BTC price was going to go (such as $70k), when the odds of the BTC price going to your anticipated price point was way lower than you had expected.
The third one is lump sum when you think that bitcoin price has fallen very well, you can use the remaining part of your money to buy bitcoin.
How it works
From your 100% money you earn weekly, set 30% aside to buy bitcoin
From the 30% use just 10% from it to DCA
Use 10% to average
Use the remaining 10% which you have saved up for months to buy lump sum if bitcoin fall to like $70000.
I do not know if bitcoin will fall to $70000, but if it does not fall to that price or the price you want to lump sum, that means you still invest 20% of you money on bitcoin.
Well op, I don't think lump sum is always carried out at Dip period or when the price of Bitcoin is down alone, I think it can be done anytime you have enough money in your discretionary to invest but the only advantage of purchasing at the dip is that one will purchase at cheaper price but I think that still doesn't change anything.
You are correct sotelorene.
OP is using the term lump sum incorrectly and in a misleading way.
In several ways, OP is trying to be creative (and proclaim that he is being innovative and supposedly smarter than everyone else) by setting up various systematic ways to buy the dip.
There is nothing wrong with buying the dip or even having various strategies to buy the dip, whether it is increasing your average buy amounts (in the context of DCA) during dip periods or holding back some of the amount that you could buy bitcoin in order to buy in large amounts when the BTC price dips (that is if the BTC price dips since no one can know if the BTC price is going to dip).
OP acts as if $70k BTC prices is a given, and if $70k BTC prices were actually a given, then 1) we should not buy any bitcoin until the BTC price gets to such certain lower price and 2) we should sell all of our bitcoin at current prices so that we can buy back at $70k. Both of those ideas are retarded, since at best there is a probability for BTC prices to go down to $70k, and it seems that the odds for bitcoin getting down to $70k are not very high at all, even if they are higher now as compared with the October 22 date that OP had started this thread.
The mere fact that we have had some dip since October 22 does not cause OP to be clairvoyant or to have any clue about BTC price direction beyond just getting lucky, at least down to our current drop to $93,961 within the last day-ish. Sure, the BTC price could drop further below $93,961, yet there is no guarantee of that, even though the price has been hovering close to that price in the past 24 hours-ish.
I have my doubts about if it is ever good for any bitcoin newbie to be in the practice of fucking around trying to time dips that may or may not happen, yet of course, each person can do whatever they want in regards to trying to accumulate bitcoin, and surely their plans might work out for them to get a better entry price than they otherwise would have had gotten, yet they still might be in a wrong kind of mindset in regards to the long term value proposition of bitcoin. So if they are really just trading bitcoin rather than investing long term into it, then they might be able to out-perform the bitcoin investor in the short-term (likely due to luck), but it is doubtful that they will outperform the investor in the longer term, especially if we are looking at a couple of cycles into the future.
By the way, OP has been registered on the forum since August, so I have my doubts that he is advantaged by fucking around with buying dips rather than just buying regularly, persistently, consistently, ongoingly and perhaps even aggressively. You don't buy aggressively by buying the dip, but instead you can buy aggressively once you have your finances in good order and you are able to maximize your use of your discretionary income for buying bitcoin... and of course, anyone buying aggressively has to be careful not to overdo it, and so any guy who buys overaggressively and does not make sure his cashflow management is in order, then he will have to suffer from his own misjudgments and hopefully he does not wreck himself, since there is a line between investing into bitcoin as aggressive as you can since you don't want to overdo it... which takes some common sense and practice and perhaps some holding back and some humbleness, too.
I personally consider bitcoin to be a much better investment than a trade, especially since bitcoin is likely the most pristine asset class in the world and it is open to everyone and anyone with a discretionary income, so it seems almost retarded to be trading it rather than building it up through ongoing accumulation of it, which is also known as investing.
Sure, if a guy maybe trades with 10% of the size of his bitcoin investment (and can keep himself confined to such limits), then sure maybe it is possible that he might be able to build his trading side up to the investment side and sustain it, yet I doubt it.. but it is not impossible, since there are a small number of folks who figure out actual ways to make trading sustainable and even more profitable than a buy and hold strategy.
Just to clarify. There are three different methods to accumulating bitcoin through buying and sure of course they can also be combined and/or made into hybrids, yet in their pure form they are: 1) DCA , 2) Lump sum and 3) Buying on dip
It seems guys mostly know what DCA and buying on dip is, and to repeat lump sum is being discussed in this thread by OP and several other guys in a convoluted way, which is not even creating any separate category that goes beyond buying on dips. If you hold back money in order to buy dips that is not lump sum, even though you held back a bunch of money. For buying on dip, there tends to be a purposeful holding back of money in order to wait for when the price goes down. Of course, a guy can have money that is dedicated for some other thing, but then when he sees that the BTC price had dipped down to a certain point, he purposefully changes his authorization of the money for buying on the dip.
With buying on dips, there can be extreme targets or there could be systematic setting of buying a certain amount every 5% the BTC price drops and quite a few variations in regards to buying the dip for dips that may or may not end up happening. Of course, the smaller the expectation of the price drop, then the more likely that the dip could be filled, but it is still not guaranteed to dip at any particular time, even if all the charts say that it should blah blah blah.
Sure we cannot necessarily proclaim that there is any exact pure definition of what is lump sum, yet I frequently like to think about lump sum as some extra money that comes in or that we have authorized for the buying of bitcoin. Lump sum could apply at the beginning of our investment, when we are decidiing how to get started and we might already have a certain quantity of money that is available to invest into bitcoin, or maybe lump sum comes after we had already been investing in bitcoin for a year or some other time period.. such as a guy might have had been investing $100 per week for the past year (52 weeks is $5,200 invested), and so then perhaps all of a sudden he receives $2,600 as a bonus at work, so then he has a lump sum which is the equivalent of half a year of his earlier invested amount. When he gets the lump sum and if he already authorized the money for buying BTC, he can decide whether or how to divide the amount to buy right away, defer by time (dca) or defer by price (buy on dips that may or may not happen).
Secondly taking out 30% of our earning to save for Bitcoin investment is kinda too much if you ask me especially for newbie and as such I want to be believe this is only for some set of people that is people with huge source of income ( people who has capacity) because 30% is really big portion and the last time I checked, Bitcoin investment money should not be taken out rather it is gotten after our needs must have been attended to ( leftover).
Yes. OP is also being a bit sloppy and presumptuous in regards how any normal person might decide to allocate into bitcoin, and as you suggested many normal folks are not going to have even close to 30% of their income to even be available for investing, even if that were practical. An overwhelming majority of folks do not even have a habit of investing and/or saving up to 10% of their income, which frequently 10% is a good starting point to get a newbie investor (saver) into the habit of investing/saving. Of course, in recent times, no one is motivated to save since there have been great reductions in any interest rate that any financial institution is willing to pay for cash, since the money has been debasing so much whether we are referring to the dollar or any other fiat.. and many fiats have been debasing even worse than the dollar.
There are likely needs to try to be realistic if we are proposing systems of general applicability, even if it might be possible within OPs income versus expenses to accomplish 30%, it is not very common for normal people to be able to invest that much of their income.
Never be aggressive in Bitcoin investment. Many people may not have money saved, but for those who have been holding Bitcoin for a long time and follow the DCA method, dips are constantly being created.
I think it's best to become aggressive in Bitcoin if you want to maximize your profits.
Anyone who's done that in the past have got more Bitcoins now because they've been so aggressive when they've bought and accumulated it.
The advantage is always been to the consistent ones.
You are correct. Historically, bitcoin has performed so well that there have been advantages to those who consistently bought bitcoin (without fucking around with trading and/or shitcoins), and even if they were aggressive in their ongoing, regular and persistent bitcoin buying, so long as they did not overdo it. Each of us has to exercise some common sense so that we can figure out the difference between being aggressive in our bitcoin accumulation yet not over doing it.
DCA is not the reason why investor buy bitcoin and never care if the price is low or high, if you dont understand the volatility of Bitcoin the truth is that you cant be able to buy Bitcoin because that fear of volatility will still be there whenever you want to buy Bitcoin. The reason Bitcoin is a good strategy for investors is that investor can accumulate bitcoin no matter the price whenever they have the opportunity to accumulate bitcoin. Their are people who want to use the DCA method to accumulate bitcoin but they find it difficult because they are still worried about the volatility of the market.
any investor thats prepared to invest in Bitcoin but eventually becames afraid or pissed about volatility, either lacks awareness or understanding, the reason why DCA itself exist is to beat the market status at anytime, whether the market is in dip or upsurge, anyone using DCA method is not supposed to get bothered after all he or she is investing for a long-term and it's with his or her discretionary income consistently, any investor that understands that volatility is part of Bitcoin market, will not panick or get hyper because the nature of the market can not be changed and come to think of it, people just misunderstand this volatility of a thing, it is as if
they don't know that it is a two way thing, it is either favouring the dip or upsurge so why the misunderstanding.In the short to medium term, we likely have little to no clue which way the BTC price might go, yet part of the reason that we invest in bitcoin (and also employ DCA) is that we consider that there are decently good odds that the UP and down volatility will ultimately work itself out in terms of a trend that is upwards, and our average cost per BTC will likely end up being way less than whatever the BTC price might be later on down the road, such as 4-10 years or further into the future. So we might spend a cycle or two buying and then a cycle or two waiting or just maintaining our holdings (investment) and then later we can likely figure out some sustainable withdrawal from BTC, meaning we can largely just draw upon it as needed. Sure there are no guarantees that BTC's price trend will continue upwards, yet our speculation about that longer term upward trend is part of our justification for our ongoingly and consistently investing into bitcoin.
