We all stress about how much our funds might shrink when bitcoin takes a hit. Imagine you buy $100 worth of bitcoin today, and then it drops to $40,000 or lower. Your investment could fall to around $60-$50, but think about how much better off you'd be if you invested $100 when bitcoin is at that $40,000 level in the first place.
You wouldn’t even need bitcoin to surpass $100,000 to see your cash double. That $100 could turn into $200 even before bitcoin hits that $100k milestone. The last couple of years have shown us that bitcoin can definitely get past that $100k mark.
So instead of fretting, think about how much you wanna invest if bitcoin keeps dropping.
the difference in your $100 investment
19 replies 117 views
paul_omegaFull Member
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#2Jun 11, 2020, 04:53 AM
Well, this is just trying to make a point but, you really shouldnt leave it at $100 you know, JayJuanGee would always advise you do this weekly, actually using $100 to DCA or more and when you cant afford more, you can always go with whats just okay with you so long as you stay consistent in your investment.
Should anyone just invest with $100 and wait for a year or a couple of years pending when Bitcoin bullrun happens for the money to double, I dont think that person has done just with their investment, that would be wasting good years just to earn $100 more.
alexwalletSenior Member
Posts: 347 · Reputation: 1933
#3Jun 11, 2020, 11:01 AM
What if it reaches $20k? Or it never reaches $40k?
If your profil target is just double, you'll exit early at $80k (unless you don't know how to exit the market and sell lower than planned). And those who bought at $60k to exit the next bullrun will likely get a higher return than you. So, what's the difference?
Not everyone gets the chance to buy at the lowest price with one shot. If you don't want to lose, don't enter
The worry is mostly for short-term traders; folks who look at it in the long term don't really worry about it much. Buy BTC at $60,000... if it drops to $40K a few months later, that shouldn't be a big deal until one sells it at a loss. Let it sit there until BTC price is back up, maybe at $100K or $200K. Now that is the patience that is needed sometimes. Why accept to sell it off at a loss always just because the price has dropped?
Look, if you are just sitting and waiting for Bitcoin to magically drop to $40k, I hate to break it to you, but you might end up with squat. Lets say it bounces off $55k, shoots straight back to the moon, and you are still sitting there, empty-handed, clutching your buy order that never hit. Congrats, you played yourself. Seriously, this whole Ill buy the bottom thing? Even the so-called experts mess that up all the time.
Why not just DCA-ing it? It is a proven method that has the best track record for removing the stress of market timing.
raven_sigmaFull Member
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#6Jun 11, 2020, 10:07 PM
investors is not afraid of bearish, the investors that will be afraid of bearish season are novice or freshers in bitcoin investment, will be the one that will be afraid of bitcoin investment.....
This the best time to invest in bitcoin is now, i know that some people will be afraid of investing in bitcoin...i believe that people that know about Bitcoin very well, will continue to invest in bitcoin...
SwiftPixelFull Member
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#7Jun 12, 2020, 05:24 PM
$100 is just an example given by the OP and not necessarily advising anyone to invest $100 and wait for years to get profit. On the other hand, it also suggests how one should not wait for value to double before making $200 out of the $100 invested. Instead, we should focus more on how to take advantage of every dip and invest what the person can do. As the price is recovering, there is profit added to each of the bitcoins acquired in batches with different prices, and if I understand the OP correctly, his statement is no different from DCA.
It's seems you're talking of being consistent with buying bitcoin even when the initial price at which you bought bitcoin has dropped down thereby reducing the value of your funds when valued in $. Of course, that's consistency with bitcoin investment, which matters a lot, even in market dip but there shouldn't be a target for buying the dip because it looks like you're just in to double your funds and zoom off at any little uptrend that adds up to your funds, and not that you're really in for accumulation towards long term period.
cold5tor4geSenior Member
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#9Jun 15, 2020, 01:03 AM
despite the inconsistent drafting of the statement, what I know for sure with Bitcoin is that, in every cycle Bitcoin always breaks price benchmark, so no matter how the price fall and your portfolio dropped significantly, it can't be as much as that, saying if you bought Bitcoin at current market Bitcoin worth $1000= 0.00149BTC which cant drop down to $60 worth it the price of Bitcoin dropped to $40,000k as you predicted also
Always hold your Bitcoin regardless of the price actions panicking in Bitcoin is what maje alot of gullible investors to lose their money.
This is definitely for those who have a vision of buying bitcoin and holding it as an investment for the long term future, not for people who will be investing for short term gains because we all know that the best time to invest for short term gains is when the market is green and the prices are going up, this is usually the best time those investing for short term profit fomo in to try to catch the top from time to time and make some profit for their selves.
But on the other hand though, investing in bitcoin for a long term purpose is a very good idea and for those interested, now is the best time to buy, and it's a good idea to use the DCA strategy, buying at intervals as price continues to drop, this is how new millionaires are made during the bull run.
To me, present day storm is good market help instead of failure. People wait to see perfect bottom, but they will be too scared to put in time when they see set buy price at major safety level such as $50,000 or $40,000, and this will turn drop into huge money success.
History has shown us that Bitcoin can make famous comebacks and through planning your buys today, you will know that you will be on same boat as it lines up into next famous jump by year end price guess to reach 150,000.
We are sad because the price drops below the purchase price. But we are smart and can accumulate again. Waiting is indeed boring and difficult, but we have to do it for a better gain. In situations like this, we have to hold on, right? Because greater achievements do not come quickly. We need patience to achieve all of that. But the problem is, many people do not have the patience to wait.
boss_wizardSenior Member
Posts: 270 · Reputation: 1192
#13Jun 15, 2020, 01:23 PM
It was harder than it seems for sure even though your statement is logical.
$100 to $60, no biggie. $10000 to $6000 welp you just lost $4000 but it's unrealized loss, as long as you're still holding your coin dearly without doing unnecessary exercise of reducing the holding after dump or even selling it. You will be fine.
The feeling of seeing the the value of your investment is what make it more difficult than you imagined it to be. I'm not sure if there are that many people who are able to mantain calm demeanor after seeing their saving goes down half in value even with the prospect of easy 2x in case of good market.
With DCA, you avoid this risk by buying time to time, if market is bearish you will have lower entry price.
It is expected that people who decide to invest in Bitcoin should have some basic knowledge. The market goes up and down at anytime, so you should be prepared and also get used to it. Investors might reduce their interest in Bitcoin if the price becomes less volatile. Instead of complaining about the price drop, take advantage of it. The bear period is the time to buy Bitcoin at a discounted price. Then you have to be patient to wait until the bull season when the price appreciates. There is no need to worry; just get the right information.
If only that's how the majority thinks, the price wouldn't be going down 40% from the ATH. Unfortunately, that's not how the market works. It seems it's the other way around. Many are fearful when they should be greedy and greedy when they should be fearful. Instead of looking for funds to take advantage of the cheaper price, many are busy entertaining wild imaginations about Bitcoin facing an impending death.
There is only one scenario where I worry about Bitcoin price, and that is when I have money saved in Bitcoin that I plan to use for something soon. Sometimes, I keep money I plan to use for a project in about 4 months in Bitcoin. Part of the reason I do that is to save it, so I won't spend it, and another reason is just incase It can increase by a percentage or two. So when the opposite happens, I get worried because I plan to use the money soon.
But when it comes to my long-term holding, I would only get worried when Bitcoin price doesnt increse significally after a long period, like 4 years. If by the end of 2028, for example, bitcoin is still at around $70k, then I can be worried. This is something that is not impossible; it is theoretically possible, but the chances of that happening are extremely small to the extent that it is almost impossible right now, so I don't really have much to worry about.
It doesn't mean I like the price dip, or I don't care, but it doesn't worry me.
To avoid any form if FOMO or complications in Bitcoin accumulation, using a continuous process like the DCA method is highly recommended. This will make the investor present in the market no matter what the price will be, he will not feel left out or nurture a feeling of regrets for not entering the market too early or too late. Waiting for the market to drop to a certain level is not efficient since there is no guarantee that the market will get there and when it will. Finally, if you have a target set in how much Bitcoin you want to accumulate and hold, it will help eliminate these anxieties over price because you are looking at the quantity and not the price as it happens that whatever the price is, the quantity never change.
As I always say you should buy bitcoin (or rather convert your centralized inflationary fiat into decentralized deflationary bitcoin) to achieve financial sovereignty, not to make profit because bitcoin was made to liberate you from the corrupt centralized banking system not to make you rich. The value appreciation over time is the cherry on top not the cake itself
But of course when this silly little drop is over (whether in weeks or months) the next leg up will be to cross $200k.
It's not that hard, if $100 is your monthly allowance or what you can afford to invest in Bitcoin do not go all into Bitcoin, you should do it using $25 per week, as the price of Bitcoin goes down you will be at a upper advantage too because you will end up having more satoshi than you buying $100 Bitcoin in one go.
cryptolordFull Member
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#20Jun 16, 2020, 04:59 AM
It really depends on your ability. That's why it's always recommended to invest your discretionary income, never force yourself to invest an amount you're not prepared to lose.
Investing money in Bitcoin is more advisable for the long term. For example, if that $100 USD is your discretionary income, you're less worried about its value dropping, as it will eventually rise again. But if it's money you need for the short term, you'll likely sell the Bitcoin, and you'll likely turn unrealized losses into real losses.