@JayJuanGee I was feeling a little troubled to quote, so I am writing this directly as a reply to
your post. I am now pretty much clear on the issue of fund management. Since I have some money saved, that will be my back-up fund. Because no one never know when will need money for any problem, maybe I have not faced any major economical problem in the past , that is why I do not think the importance of a back-up fund is so high, but if there is any problem after starting to buy Bitcoin, then my investment may be lost.
Of course, the longer that we are in bitcoin the larger oru bitcoin investment becomes - not only from the money we put into it, but also from any price appreciation that it might have experienced.
For many guys who have been into bitcoin for a very long period of time, bitcoin has become their main source of wealth, even if they might have other investments. Some guys came to bitcoin with already existing good sized investments in other assets, and maybe they put some portion of their wealth into bitcoin, it could be 5% to 25% or some other portion, yet with the passage of the years, the bitcoin had outperformed each and everyone of their other assets and maybe even in spectacular ways, so then bitcoin becomes a much higher allocation - as long as they just let the bitcoin investment ride and if they did not reallocate into the other assets.
The bitcoin might end being so liquid and available that some of it or even all of it could end up serving as their emergency fund, and they can make the choice for it to do that.. especially for larger emergencies that might go beyond the regular cash funds (or back up funds that they have available).
Newer investors should want to NOT have their bitcoin serving at all as their emergency fund, maybe for at least a whole cycle or maybe even a couple of cycles.
It seems to me that during the first 1-2 cycles, then newer investor has to purposefully and intentionally place barriers between any expenses that he might experience and his bitcoin stash. So whether his bitcoin is in profits or losses, he should want to avoid spending any of it, except maybe spend and replace.
It may well be the case that many guys spend 10--20 years or longer making various investments and they never experience any financial emergencies, and perhaps part of the reason for their not experiencing emergencies is because they are organized an they have already put various financial cushions into place.
And, even if they have some situation that arises to some periods of loss of income and/or increased expenses, they are ongoingly taking actions to make sure that they don't run out of money.
Your organization skills and finding a good balance will not save you from all negative situations, yet it probably will save you from a lot of situations in which you are already mitigating the chances of emergencies and/or lessening the impact of such cashflow shortages when they do end up happening.
Because since I have been trying to decide on an investment for more than 4 years, any kind of financial problem may arise in the meantime.
Right now, I do not have much extra expenses, I am staying with my small family, so I can buy a little more Bitcoin regularly without any kind of financial problem. If I can invest the entire $100 or more in a few months, it will be about 13% of my income.
These days, I tend to recommend that beginners to bitcoin invest anywhere between 5% to 25% to start out, yet of course, each guy has to figure out what works for him, and it might be good to start out a little conservative as you are getting used to investing every week, and there can even be ways to try to gamify the situation.
I recall that when I started in late 2013, I did a review of my situation, and I ended up setting myself a budget for 6 months. I looked at an amount of money that I had available (that I was bringing over from another investment), and I also looked at how much money I expected to be able to add each week based on my expected income.
So then once I figured out the total that I wanted to invest over the next 6 months (that I figured to be easily within my budget and a fair amount to get started) I divided the total by 26, in order to give me a weekly budget for the next 26 weeks. When the 26 weeks was almost over, I reviewed the situation, and then I pretty much figured out a way to give myself an additional budget of the same amount for the next 26 months, so then after I spent those two budgets I had a whole year investing into bitcoin, and I figured that at around that time in late 2014, I had invested about 10% the size of my then existing quasi-liquid investment portfolio into bitcoin... So I started to feel that I had invested enough... but then the BTC price stayed low for the whole of 2015 so I continued to invest and towards the end of 2015, I started to conclude that I had put about 13.5% into bitcoin, so I felt overinvested. .. which then triggered me to make different plans.
I think that I have different ideas now in regard to what constitutes overinvested and what to do about it, as compared to my 2014 and my 2015 assessment of what constituted overinvestment and what to do about it. So, in those regards, it seems that if any of us spends a few years investing into bitcoin, it would be good if we might be assessing what might be our various targets and if we might change what we are doing based on our reaching such targets.. Personal BTC accumulation targets can surely have both time-based elements and/or price-based elements..
With time, I may be able to increase it according to the situation. Even if after a few days I feel that I can buy Bitcoin weekly, then it will be possible to start that too. It all depends on the time situation and my decision.
Fair enough. It seems that if you are actively reviewing matters, you are likely going to figure out some comfortable zone for yourself, and then perhaps make various adjustments along the way, and surely we would presume that you would be making progress towards you goals with the passage of time.
And, yeah, maybe in the very beginning the amounts are seeming quite low, yet they will continue to grow just based on your ongoing putting money into them.. .. so yeah, you can consider the extent to which you might need to tweak any of what you are doing or just keep plodding along with a plan that is working to keep you building your bitcoin investment and not necessarily causing you too much stress.
I have decided to start investing in Bitcoin after getting my salary next month. I will also share that experience on the forum.
The types of cryptos that exist outside of Bitcoin are called altcoins or shitcoins. I have no interest in these. There is a lot of negativity about shitcoin which I realized when I was studying about Bitcoin. Nothing compares to Bitcoin. I am not interested in any discussion related to shitcoin. I am trying to learn about investment to understand your posts . I have read many of your posts where the topics are explained in a very detailed and easy way. I may not be able to devote much time to the forum yet. In the future, I will have to do time management as well as investment management and fund management so that I can continue on the forum.
Surely with the BTC price we cannot really know, yet we can try to figure out our own actions based on things that we can control which is our bitcoin investment amount and our cashflow management practices, and even if you are saying that you are following my ideas, each of us likely realize that we are responsible for our own actions (or own inactions) and our own balances...
So if you do everything that I suggested "in a perfect way" and then it does not work out for you, then I am not taking any responsibility for your choices. Just thought that it is worth repeating that caveat that each of us is responsible for our choices and our actions, including when we choose not to act. I frequently tell guys to not come crying to me if it does not work out... hahahahahaha.
At the same time, it seems to me that the overwhelming majority of the world's population is still failing/refusing to act to buy bitcoin and to get meaningful exposure to bitcoin, which means that we are likely still early for the guys who are getting started in building their bitcoin investment and also building their cashflow management systems and practices in order to supplement their bitcoin investment.
Overall it does seem that you have the right ideas, and you likely will be interested in seeing how the investment into bitcoin plays out over 4 years and then another 4 years, and if you are monitoring the situation, it can be interesting to see how it plays out.. I am within a week or so (at the end of November) of my 12 years in bitcoin, so I have now officially come to being in bitcoin for 3 whole cycles. .and it has been an interesting journey, for sure..
Before there are few discussion about this building up their emergency funds since lots of people usually talk about their investment directly. That's why there are also lots of people fail its because they didn't consider or think about having that kind of funds and when emergency situation came they don't have a choice but to sell their assets bought and to bad for them if they sell during market downturns since time,money and effort will be wasted in that situation.
So to avoid getting pressured and sell their asset in wrong time people need to consider building up their emergency funds. Since it will help them succeed on investment and other things what they like to do.
Everyone has
experienced investment failure, but not everyone is able to correct it when starting a new chapter in their investment journey. It's important to understand the mistakes made in initial investments so we can correct them in future investments.
Many people also fail to understand the concept of investing in Bitcoin. Many invest for a short period of time, like one year, and calculate the profit—of course, this is an unintentional mistake. However, if they had a wise idea or suggestion to invest for retirement, they would have done so, but it's their ignorance that leads to mistakes.
I agree that emergency funds are important in investing. Even when starting out, we must prepare a solid plan to avoid being hampered by unwanted events.
Even though guys use the term investment for what they are doing in regards to bitcoin, I would not consider any timeline that is less than at least 4 years to be investing, it is trading.
Trading may or may not go well, and trading is a kind of gambling. People can do what they want, but I don't consider trading to be what I am talking about in this thread...
On the other hand give me a guy with at least a 4 year timeline and if he is mostly just ongoingly buying bitcoin, then sure he could be considered to be investing, yet some guys will get tempted into selling some bitcoin so that they can buy back cheaper, and as soon as they are selling with the intention of buying back cheaper, then from my point of view they are no longer investing but they are trading (at least that portion of their stash that they sold).
I am not against spend and replace and I am also not against engaging in some selling practices once a guy reaches over accumulation status, yet I have quite a few caveats in my own perspective in order that a guy might intend to keep himself in the category of an investor (from my point of view) rather than falling into trader/gambler status... which would be largely off-topic as far as the scope of this thread is concerned.
Did you (@whiteblue) have other ideas of "investment failures" or were you merely thinking in the context in which an investor falls into trading practices?
