Buy the DIP, and HODL!

[Salahmu]

You can still end up overinvesting and getting your self into the same kind of lack of an emergency fund, even with DCA.

DCA does not completely reduce the problem of overinvesting, but surely it can manage the overinvestment temptations that cause people (maybe moreso newbies, but it can happen to anyone who is overly investing and not sufficiently preparing emergency funds and projecting out cashflows for a sufficient amount of time in advance)..

I get the point now, even with the use of DCA strategy without the plan for emergency funds investment could go very bad were as  you could be lack of funds when emergency needs will arise and as such you will be left with no option but to sell from your investment, perhaps I overemphasize DCA on one direction which is to solve the problem of overinvesting and risk management for accumulating a bit by bit forgetting the need for emergency funds which is very important and essential which will help and spice up DCA strategy knowing fully well that as your accumulating using DCA method your also adjusting to your emergency funds.

[SmartGold01]

I think what I noticed and experienced from some investors or some people is that since they had missed the previous opportunities for not investing when the price were very minute they thought they could cover it at a go but, this is where they are getting it wrongly because rushing to invest what they didn't know the whole concepts might likely lead them in a bigger lost and in a higher risk without applying technicalities.

Trying to make up for losses and then adding more risk in order to make up for losses is not a good mental or financial framework. because strategies should be made in ways that do not devolve into gambling.. even if you might have made a big loss.. I think that another name for continuing to double down is Martingale betting.. so surely sometimes it does work, but sometimes it gets to become so big that there is no way to recover from it... or maybe the losses become so great that it takes years to recover, even though there was no real reason to be taking the risks in the first place, but then when the mistakes are made they just keep doubling and doubling and doubling.. and sometimes it ends up working and other times, it ends up with a forced stop..and having to start from a reckt position.. which might mean never recovering or perhaps taking several years to recover... depending on how soon that the person might have decided to give up rather than keeping on going.

This is the most challenging thing to do especially those who so much values their money, and the Martingale betting theorem is sometime that can be very frustrating (this theorem only applicable to those who has a stable income) to keep up doubling doubling doubling otherwise, those who are trying to brace up and to filter out their little savings in order to meet up with their accumulation processes can never or would find it very difficulty in adapting that Martingale betting theory as I believe it take an extra mile (mind) to keep losing while one continuously doubling the lost.

However whomever that is determined to make progress and success can never see it as a much challenging task haven known the value of what they are venturing into in general, that is why whomever that gets to their reckt position always finds it very difficulty trying to restore back from the beginning as a fresher then they would learned from their mistakes and I don't doubt such people always turned out the best in the market since they are learning from experience.

[bitLeap]

You can still end up overinvesting and getting your self into the same kind of lack of an emergency fund, even with DCA.

DCA does not completely reduce the problem of overinvesting, but surely it can manage the overinvestment temptations that cause people (maybe moreso newbies, but it can happen to anyone who is overly investing and not sufficiently preparing emergency funds and projecting out cashflows for a sufficient amount of time in advance)..

I get the point now, even with the use of DCA strategy without the plan for emergency funds investment could go very bad were as  you could be lack of funds when emergency needs will arise and as such you will be left with no option but to sell from your investment, perhaps I overemphasize DCA on one direction which is to solve the problem of overinvesting and risk management for accumulating a bit by bit forgetting the need for emergency funds which is very important and essential which will help and spice up DCA strategy knowing fully well that as your accumulating using DCA method your also adjusting to your emergency funds.

Or it can be said that a good strategy like DCA will be an unprofitable strategy if it is not done well or does not have a good plan. I understand that some people may feel so excited about investing that they start to overlook things that they shouldn't overlook. That may be a very good goal for the future, but it shouldn't burden us in the present, as we still have to live our lives and figure out how to keep our investments from getting distracted by other things due to a lack of measured planning.

[adultcrypto]

You can still end up overinvesting and getting your self into the same kind of lack of an emergency fund, even with DCA.

DCA does not completely reduce the problem of overinvesting, but surely it can manage the overinvestment temptations that cause people (maybe moreso newbies, but it can happen to anyone who is overly investing and not sufficiently preparing emergency funds and projecting out cashflows for a sufficient amount of time in advance)..

I get the point now, even with the use of DCA strategy without the plan for emergency funds investment could go very bad were as  you could be lack of funds when emergency needs will arise and as such you will be left with no option but to sell from your investment, perhaps I overemphasize DCA on one direction which is to solve the problem of overinvesting and risk management for accumulating a bit by bit forgetting the need for emergency funds which is very important and essential which will help and spice up DCA strategy knowing fully well that as your accumulating using DCA method your also adjusting to your emergency funds.

The essence of DCA is to eliminate the tendency of investing under duress such as forfeiting your basic needs so you can buy bitcoin. This might not be the best approaching as it can drain you psychologically and even deny you peace of mind. The reason for accumulating wealth is for the peace and comfort it brings, this means that any method you are adopting that does not give you this peace can never be regarded as DCA. Howbeit, we can make acceptable sacrifices to be able to secure the future but we should be able to have some limits.

When you hear DCA, the first thing that should come to your mind is buying Bitcoin in a way it will not affect your urgent needs. Like JJG have said, DCA can help you manage the problem of overinvesting because it does not require buying at bulk

Your frequently going through a need to cash out of some assets that you do not want to is likely a sign that you are overinvested in those assets and/or your emergency fund is not large enough.. and sure, you likely already know that... but you might be spending a bit too much time trying to make sure that your value is "working" and then you end up overdoing it and not having enough of the "nonworking" asset/currency that you need to pay your expenses.

I have been in this situation before, where I was frequently selling my Bitcoin to meet basic needs. Until today, I never realized it was poor planning that got me into that situation. There was never emergency funds in place because I just bought the Bitcoin when I had huge amount of money thinking I will save it for the future.

That may be a very good goal for the future, but it shouldn't burden us in the present, as we still have to live our lives and figure out how to keep our investments from getting distracted by other things due to a lack of measured planning.

To be honest, some people are too busy planning for the future that they actually forget to live now. It is very important we plan for today as well as the future so that we do not use the money we saved to threat sicknesses caused by negligence of today's needs of our body and health. Applying DCA is one sure way of investing while also taking care of present needs.

[Agbamoni]

You can still end up overinvesting and getting your self into the same kind of lack of an emergency fund, even with DCA.

DCA does not completely reduce the problem of overinvesting, but surely it can manage the overinvestment temptations that cause people (maybe moreso newbies, but it can happen to anyone who is overly investing and not sufficiently preparing emergency funds and projecting out cashflows for a sufficient amount of time in advance)..

I get the point now, even with the use of DCA strategy without the plan for emergency funds investment could go very bad were as  you could be lack of funds when emergency needs will arise and as such you will be left with no option but to sell from your investment, perhaps I overemphasize DCA on one direction which is to solve the problem of overinvesting and risk management for accumulating a bit by bit forgetting the need for emergency funds which is very important and essential which will help and spice up DCA strategy knowing fully well that as your accumulating using DCA method your also adjusting to your emergency funds.

In this scenario, it depends on whether overinvesting means you've used your emergency fund or this month's rent for your investments. If you require these funds for your bills, it's advisable to withdraw them. Tightening up and assuming you'll be fine even if you lose these funds is not recommended. In my opinion, dollar-cost averaging requires less effort, and it spreads out the risks, effectively removing the emotional aspect, including the risk of overinvesting.

What could lead someone to overinvest when practicing dollar-cost averaging? If a person is using their emergency fund, they are no longer employing dollar-cost averaging, instead, it becomes a direct investment whenever they have cash available. Dollar-cost averaging is explicitly periodic, with investments made at set time intervals, not whenever funds are available. It can be seen as a form of market timing because you're holding back money from investing in order to invest it at a different time.

One of the advantages I find in dollar-cost averaging is that the amount you're investing typically isn't significant enough to cause anxiety about your investments. Constantly adding a small amount can be easily overlooked as you consistently follow this approach.

[Raflesia]

I get the point now, even with the use of DCA strategy without the plan for emergency funds investment could go very bad were as  you could be lack of funds when emergency needs will arise and as such you will be left with no option but to sell from your investment, perhaps I overemphasize DCA on one direction which is to solve the problem of overinvesting and risk management for accumulating a bit by bit forgetting the need for emergency funds which is very important and essential which will help and spice up DCA strategy knowing fully well that as your accumulating using DCA method your also adjusting to your emergency funds.

After all, emergency fund is something that is important in financial management so regardless of whether we invest or not, emergency fund should always be there and should have a part of the income that we get from our salary or business.
Therefore, I sometimes do not really agree with most people who put the emergency fund post but used for investment, even though it can be done because in the end if our emergency fund is not used then it can be used as one of the additions to maintain our investment but in this case the main function of the emergency fund is not used for that.
Investments, especially DCA, should be budgeted in advance from our income and must distinguish which one is used as an investment and which one is used as an emergency fund, do not let it be equated because in my opinion the calculation becomes a little troublesome if it is equated and can interfere with each other's needs both in investment and emergency funds that are prepared.

[Odusko]

It seems that you are getting DCA mixed up with other kinds of investing (such as lump sum investing), because DCA overcomes each of those items in your list because once you get started, then DCA makes it easy to overcome each of the items, because all you need to do is pick an amount.. $100 per week set it and forget it..... and if you think that $100 per week would cramp your lifestyle too much, a different amount could be chosen.

We can determine the amount that can be allocated for DCA needs based on weekly or monthly income, at least an investment allocation of $30-50 can be reached by all economic classes for the lowest amount to realize the DCA strategy per week.

Even though this figures are realistic, to truly demonstrate the power of compounding and little beginning, we could go as low as $10 per week and spread it over five years. This will achieve the same result and the person performing the DCA will not even know he was spending money on anything... his lifestyle, expenditure and everything will be going smoothly, without any financial stress meanwhile he will not even know he is making futuristic investment that can even be his greatest achievement.

If I want to teach somebody about Bitcoin and how to start investing in it, I will simply teach them to apply DCA with as little as $10 per week. Irrespective of the social status or the asset class, this is feasible and affordable and there is high chance I will be able to convince the person instead of telling someone to invest huge amount of money at one.

Like it has been abundantly emphasized here, the DCA method is truly the game changer for those who want to make maximum use of the opportunities offered by Bitcoin, it handles all the psychological hindrances that many people face in Bitcoin accumulation and management.

I think what I noticed and experienced from some investors or some people is that since they had missed the previous opportunities for not investing when the price were very minute they thought they could cover it at a go but, this is where they are getting it wrongly because rushing to invest what they didn't know the whole concepts might likely lead them in a bigger lost and in a higher risk without applying technicalities.

Another one of those technicalities are the DCA pattern it is the best way to kill fear and invest seamlessly without having to incur much lost or feeling that one is wasting their resources into what they didn't found profiting at the moments especially when it involves of teaching newbies or trying to lecture people on how they could go about their bitcoin investment journey. At my earlier age the DCA also helped me alot and I was able to accumulates as little as I can without attaching much feeling to it or without going under financial destress or do I say pressure before I sudden upgraded my knowledge towards having save from my paid which I don't feel it anymore because I know bitcoin a valuable assets which (In me I don't think anyone should missed it) without at least having some portion of it in their wallet for purposes as I believed tomorrow is pregnant who knows we could find a bitcoin at $1m.

DCA is applicable to timing and this timings have to be allocated with a certain amount of $ to be invested in Bitcoin at every bits and when we have a discounted price, Bitcoin accumulation is my risky if you go all in at once to buying a lump sum as stated by jj which is very correct and we must know that there is no late coming in DCA so there os no need to engage in over buying of Bitcoin at once that could effect our overall mindset and motivations to continue holding and accumulating.
Maintaining a consciousness of proper allocated sum and time in our DCA approach help us to minimize every opportunities that the market present without going too overly and also being up to date with our amount accumulated on a long stretch of time.

[Dr.Bitcoin_Strange]

You can still end up overinvesting and getting your self into the same kind of lack of an emergency fund, even with DCA.

DCA does not completely reduce the problem of overinvesting, but surely it can manage the overinvestment temptations that cause people (maybe moreso newbies, but it can happen to anyone who is overly investing and not sufficiently preparing emergency funds and projecting out cashflows for a sufficient amount of time in advance)..

I get the point now, even with the use of DCA strategy without the plan for emergency funds investment could go very bad were as  you could be lack of funds when emergency needs will arise and as such you will be left with no option but to sell from your investment, perhaps I overemphasize DCA on one direction which is to solve the problem of overinvesting and risk management for accumulating a bit by bit forgetting the need for emergency funds which is very important and essential which will help and spice up DCA strategy knowing fully well that as your accumulating using DCA method your also adjusting to your emergency funds.

Salahmu, as JJG has said, DCA would only help to manage the overinvesting temptation. Yeah, emphasizing DCA, it's either you already have a huge amount of money that is already set aside for bitcoin investing (example, $100k), but you don't just want to invest it at once because you feel the price will go down below what it is, and you start to invest using the DCA strategy. Secondly, if you are working for a monthly or weekly salary, you can also have an amount you always want to allocate to bitcoin, either weekly or monthly, at any time you get paid.

But I think overinvesting in bitcoin is also a simple problem you can avoid if you always have it repeating or if you want to prevent it from happening. The way I think it can be avoided is by having your budget planned so well, either before you receive your salary or after you have received your salary.

When you are close to receiving your salary or after you have received it, you just have to take your time and make a budget, and while doing so, never forget to also add some funds to emergency funds, then allocate the amount  you want into bitcoin.

[JayJuanGee]

You can still end up overinvesting and getting your self into the same kind of lack of an emergency fund, even with DCA.

DCA does not completely reduce the problem of overinvesting, but surely it can manage the overinvestment temptations that cause people (maybe moreso newbies, but it can happen to anyone who is overly investing and not sufficiently preparing emergency funds and projecting out cashflows for a sufficient amount of time in advance)..

Hmm, It really depends on how they execute the DCA, more likely 90% of the DCA supports or beginners execute it in the wrong way. Aggressive accumulation is not good at all, even if it's done with the DCA, You should shape it into the smart DCA with your own decision-making power.

I do think that in many cases, DCA is going to help people who might have tendencies to try to overly time the market, but if they establish and aggressive DCA that uses near or all of the cash reserves every month without sufficiently creating an emergency fund they could get themselves into trouble.

The essence of DCA is to eliminate the tendency of investing under duress such as forfeiting your basic needs so you can buy bitcoin. This might not be the best approaching as it can drain you psychologically and even deny you peace of mind. The reason for accumulating wealth is for the peace and comfort it brings, this means that any method you are adopting that does not give you this peace can never be regarded as DCA.

That's not correct @adultcrypto.  Just because DCA has an ability to bring peace of mind, and less needs to worry about your investment, it does not completely remove the possibility that some people might still worry or that some other BTC investment strategy might bring them more peace of mind because it suits them better to be lump sum investing, buying on dips and/or whatever other strategies that they choose.    They may well need to be more active with their investment, and perhaps that is what you were aiming to say. .that DCA allows someone to be an active investor without having to be active... whereas some other strategies might take a bit more managing.. but not even that is completely true because there could be ways that someone is able to set up the parameters for whatever system that s/he follows that is even less worrisome for them (and even less active) than DCA. 

Lump sum buy bitcoin one time and then completely forget it for 20 years.. that's pretty inactive and it might even give that person a lot of peace of mind to just not think about bitcoin for 20 years or whatever might be his/her timeline.

Don't get me wrong.  I do think that DCA is the best for an overwhelming majority of normies.. but people are surely free to choose their own variation of systems and even truly/sincerely believe that it is better for them.. and perhaps they are correct in terms of their personality and/or their financial circumstances.

Howbeit, we can make acceptable sacrifices to be able to secure the future but we should be able to have some limits.

When you hear DCA, the first thing that should come to your mind is buying Bitcoin in a way it will not affect your urgent needs. Like JJG have said, DCA can help you manage the problem of overinvesting because it does not require buying at bulk

Fair enough.. and some people are not able to buy in bulk anyhow, and some people are able to buy in bulk, but they might find it to be more helpful to figure out a way to pace out their investment into bitcoin through some kind of a DCA approach.

Your frequently going through a need to cash out of some assets that you do not want to is likely a sign that you are overinvested in those assets and/or your emergency fund is not large enough.. and sure, you likely already know that... but you might be spending a bit too much time trying to make sure that your value is "working" and then you end up overdoing it and not having enough of the "nonworking" asset/currency that you need to pay your expenses.

I have been in this situation before, where I was frequently selling my Bitcoin to meet basic needs. Until today, I never realized it was poor planning that got me into that situation. There was never emergency funds in place because I just bought the Bitcoin when I had huge amount of money thinking I will save it for the future.

Failing to sufficiently establish either an emergency fund and/or sufficient reserve funds for other kinds of regular expenses is an easy mistake to make.. .and sometimes you can see it in theory, but when it comes to practice, you might have to practice for a long time to be able to figure out the level of balance that works for your actual situation rather than what it looks like on paper.

[adultcrypto]

The essence of DCA is to eliminate the tendency of investing under duress such as forfeiting your basic needs so you can buy bitcoin. This might not be the best approaching as it can drain you psychologically and even deny you peace of mind. The reason for accumulating wealth is for the peace and comfort it brings, this means that any method you are adopting that does not give you this peace can never be regarded as DCA.

That's not correct @adultcrypto.  Just because DCA has an ability to bring peace of mind, and less needs to worry about your investment, it does not completely remove the possibility that some people might still worry or that some other BTC investment strategy might bring them more peace of mind because it suits them better to be lump sum investing, buying on dips and/or whatever other strategies that they choose.    They may well need to be more active with their investment, and perhaps that is what you were aiming to say. .that DCA allows someone to be an active investor without having to be active... whereas some other strategies might take a bit more managing.. but not even that is completely true because there could be ways that someone is able to set up the parameters for whatever system that s/he follows that is even less worrisome for them (and even less active) than DCA. 

This is well understood and thank you for the patience to explain this to me. From this discussion I have realised that DCA is just one part to it and that there are other ways to achieving the same result and all depends on what the person is comfortable with. The other point you made about active investors is also very correct.

In trading, there are day traders, swing traders(those that hold trade for couple of days) and position traders( those that hold for months and years). The category anyone belong to depends on what suit his personality. Now I understand personality also play key role in approach as regards to buying Bitcoin and investing in general.

Failing to sufficiently establish either an emergency fund and/or sufficient reserve funds for other kinds of regular expenses is an easy mistake to make.

Unfortunately,  it took me this long to realise it was a big mistake. Now that I know better, my approach will be different.

[BigBos]

The essence of DCA is to eliminate the tendency of investing under duress such as forfeiting your basic needs so you can buy bitcoin. This might not be the best approaching as it can drain you psychologically and even deny you peace of mind. The reason for accumulating wealth is for the peace and comfort it brings, this means that any method you are adopting that does not give you this peace can never be regarded as DCA. Howbeit, we can make acceptable sacrifices to be able to secure the future but we should be able to have some limits.

When you hear DCA, the first thing that should come to your mind is buying Bitcoin in a way it will not affect your urgent needs. Like JJG have said, DCA can help you manage the problem of overinvesting because it does not require buying at bulk

I don't really agree with this because basically when we talk about DCA I think the pressure is still there and one of the psychological factors about greed is still very big and of course we also have to have a big reference in consistency which I could call it a pressure that we have to be aware of.
But on the other hand DCA clearly makes us more comfortable in investing because we don't need to feel that we are burdened with the existing pressure and that's what makes me personally suggest DCA as one of the right strategies for us to live with, especially for beginners and people who have modest income.

[BABY SHOES]

but you don't just want to invest it at once because you feel the price will go down below what it is, and you start to invest using the DCA strategy. Secondly, if you are working for a monthly or weekly salary, you can also have an amount you always want to allocate to bitcoin, either weekly or monthly, at any time you get paid.

Indeed, that is my current method, when I receive a weekly or monthly salary, I always make an allocation for Bitcoin, the amount specified, for example 10% or 20%, actually that is enough, the rest I can cover my other needs for a month.

But I think overinvesting in bitcoin is also a simple problem you can avoid if you always have it repeating or if you want to prevent it from happening. The way I think it can be avoided is by having your budget planned so well, either before you receive your salary or after you have received your salary.

It's too important to invest but not think about other things, even though it's a simple matter, when someone is consistent in investing in Bitcoin using the DCA strategy, for example, they will definitely make a fixed allocation when they receive a bonus from their salary, perhaps a little increase or it could also be increased. For me, an emergency fund is both important things too.

When you are close to receiving your salary or after you have received it, you just have to take your time and make a budget, and while doing so, never forget to also add some funds to emergency funds, then allocate the amount  you want into bitcoin.

To make it more balanced, the 10% DCA bitcoin 15% emergency fund is the right allocation depending on how much salary you receive, but I have prepared both, including an emergency fund and consistent DCA.

Actually, I have prepared an emergency fund before but only covers 2 months, but I want to increase it to 6 months and then after that I will increase the bitcoin allocation more.

[Salahmu]

The essence of DCA is to eliminate the tendency of investing under duress such as forfeiting your basic needs so you can buy bitcoin. This might not be the best approaching as it can drain you psychologically and even deny you peace of mind. The reason for accumulating wealth is for the peace and comfort it brings, this means that any method you are adopting that does not give you this peace can never be regarded as DCA. Howbeit, we can make acceptable sacrifices to be able to secure the future but we should be able to have some limits.

When you hear DCA, the first thing that should come to your mind is buying Bitcoin in a way it will not affect your urgent needs. Like JJG have said, DCA can help you manage the problem of overinvesting because it does not require buying at bulk

I don't really agree with this because basically when we talk about DCA I think the pressure is still there and one of the psychological factors about greed is still very big and of course we also have to have a big reference in consistency which I could call it a pressure that we have to be aware of.
But on the other hand DCA clearly makes us more comfortable in investing because we don't need to feel that we are burdened with the existing pressure and that's what makes me personally suggest DCA as one of the right strategies for us to live with, especially for beginners and people who have modest income.

Yeah even when using DCA method the pressure is still there but with a limited aggressiveness of accumulating but perhaps understanding the concept of DCA very well I don't  think you will be pressured using DCA method because you can only be presured when only focusing on accumulating without knowing there could be other serious needs that will arise and needs immediate attention and if perhaps you don't have emergency funds then you became presured and panicking, So is just like what Jay was saying that even with DCA method we can still end up overinvesting  and getting ourselves into the same pressure but if only we can accumulate with the plans of having an emergency reserved funds we can hardly be pressured.

[CryptSafe]

The guarantee of a monthly cash inflow gives us ease of mind. We can think clearly because we don't need to think about our monthly expenses. Saving a portion of our wages and investing them for long-term growth gives us confidence about our future, and we think of ourselves as cleavers and long-term visionaries. When things turn against them, they think of themselves as stupid; this is human nature.

Not to use your investment (in bitcoin) when emergencies arise is a strong statement but not a practical one. When people don't have money to cover emergency expenses, they tend to sell their assets. If you are investing in bitcoin as a retirement plan, then you should not sell it, but in times of emergency, your senses will tell you to sell it.

I would say if you are thinking for long-term and Also doing BTC accumulation its good idea. in case if it is me who is doing BTC accumulation i would never withdraw my BTC until i reach my planned goal. I think this time is very smart we also need to smart as we know this is the time where alot of people having good cash inflow by doing from different kinda online jobs and physical jobs as well.

they just need to prepare themselves  to overcome their emergency situation somehow So that they need not to withdraw their accumulated BTC in the form of funds as emergency situation.

The only thing that can resolve our emergency needs is money. As I have mentioned, it is easy to say that I won't touch my BTC holdings if any emergencies arise, but it is hard to do if you don't have any side income or any other source to assist you in resolving that issue. This happens to me many time. I tried my best not to sell part of my holding, but the situation forced me to do that.

Truly money can resolve our urgent needs but in some cases when money is not available, the available should go in for it or possibly take the place of the money to solve the problem. Most times things happen that no one bargained for but you will have no option but to respond accordingly. These experiences are sometimes among the reasons one needs to invest. Irrespective of the nature of the investment, for instance, bitcoin that you have direct access to when you are in urgent need that requires a financial commitment and you have no cash at hand and in your account but you have crypto assets. It is expected of you to sort yourself out.  That is good because when you have enough to sustain yourself and more, you invest the excess so as to serve you when you are in urgent need and the investment as the case may generate income as time goes by.

[Agbamoni]

Most times things happen that no one bargained for, but you will have no option but to respond accordingly. These experiences are sometimes among the reasons one needs to invest. Irrespective of the nature of the investment.

I completely agree with the notion that unexpected and unforeseen circumstances might arise, compelling you to address those issues first. However, these challenges shouldn't drive you to invest aggressively without thoroughly considering the nature of your investments. It would be unwise for any rational individual to let their emotions lead them into making hasty decisions driven by ignorance. Such a strategy poses an immediate threat to your financial health and could escalate into a other problems.

Some people might even think of taking loans to invest, hoping to recover the funds they spent on resolving these issues. While some may not appreciate the concept of low-volume accumulation, which involves not buying aggressively and focusing on risk control, I believe in the importance of maintaining an emergency fund, diversifying investments, and managing risk. Sure, I might envy those who took a reckless all-in approach if Bitcoin performs as we all hope, but I'll be OK and sleep better at night in the fact that I didn't ignore the nature of Bitcoin investment and went all in.

[Ruttoshi]

Investments, especially DCA, should be budgeted in advance from our income and must distinguish which one is used as an investment and which one is used as an emergency fund, do not let it be equated because in my opinion the calculation becomes a little troublesome if it is equated and can interfere with each other's needs both in investment and emergency funds that are prepared.

Lack of preparation is what will make an investor have problems on what fraction from his income that he will assign for regular DCA. It is not a healthy practice for one to equate his emergency funds and investment funds, especially when you are investing in bitcoin. It is only someone that lives where everything is provided for him, that is when you can think like that because you have less expenses, but still you will need an emergency funds to take care of some personal things, like if you have a girlfriend, going to have fun and so on.

 It is expected that our emergency funds should be higher than thye one that we are investing so that they will be no ugly suituation that will make you go and sell from your bitcoin that you are buying, this shows that you are ready to continue using your DCA pattern to keep on accumulating till you get to your bitcoin target. We need cash to survive and we need our investment to grow for a better life in the nearest future or at old age, this is why there must always be a reserve of emergency funds to take care of whatever should be taken care on, your investment can keep on growing as you keeping on DCAing.

Lump sum buy bitcoin one time and then completely forget it for 20 years.. that's pretty inactive and it might even give that person a lot of peace of mind to just not think about bitcoin for 20 years or whatever might be his/her timeline.

Don't get me wrong.  I do think that DCA is the best for an overwhelming majority of normies.. but people are surely free to choose their own variation of systems and even truly/sincerely believe that it is better for them.. and perhaps they are correct in terms of their personality and/or their financial circumstances.

I understand what you mean, because as long as you are happy with how you invested your money in bitcoin, and holding your long, you will be peaceful because you know that you will make good profit at the given period of time. What I see in the DCA pattern, is like you said the active buying of bitcoin, no matter how long it takes you to continue buying, maybe ten years or more. Another reason why I like the DCA method is that it create room for you to see reason why you need to increase your bitcoin portfolio from your initial bitcoin target because, you will become use to assigning a certain amount for regular DCAing, which will become part of your weekly, or monthly practice. DCA will also give you a proper insight of bitcoin market for you to come up with a strategy on how to be flexible with the market, irrespective of the price of bitcoin, as long as you keep on accumulating.

 For instance, an investor can come up with a DCA strategy, that if the price of bitcoin is at 20k-25k, he will use 20% for DCA, at 26k-30k, he will use 15% and at 30k up, he will use 10% and so on, because he has a fixed amount of money assigned for DCA. While people who buy at dip, don't have much practice in their buying, just only to follow news and keep on expecting for the dip, that they don't know when it will come, or the people that buy at lump will only buy once in a while based on when they have accumaulated enough cash that they feel it is time for them to buy again.

[Kodec5]

Truly money can resolve our urgent needs but in some cases when money is not available, the available should go in for it or possibly take the place of the money to solve the problem. Most times things happen that no one bargained for but you will have no option but to respond accordingly. These experiences are sometimes among the reasons one needs to invest. Irrespective of the nature of the investment, for instance, bitcoin that you have direct access to when you are in urgent need that requires a financial commitment and you have no cash at hand and in your account but you have crypto assets. It is expected of you to sort yourself out.  That is good because when you have enough to sustain yourself and more, you invest the excess so as to serve you when you are in urgent need and the investment as the case may generate income as time goes by.

I am trying to gather fact on what you said here.
Do you mean funds can be used to invest in Bitcoin, just to keep as emergency fund? Or you mean at a point of emergency the best option to resolve problems is by tampering ones investment.
I do not think it necessary to invest your emergency fund in Bitcoin, because you are not yet into sorting out any issue at that moment and you feel using the money to invest is the best. The rate of Volatility in Bitcoin is high and you are placing yourself at a 50:50 risk. I believe it is not advisable.

I also think there are better option when your emergency fund can't meet up with challenges at the time instead of tampering with your investment. A loan can be collected from Family, Freinds or any Financial services but not your investment

[CryptSafe]

Truly money can resolve our urgent needs but in some cases when money is not available, the available should go in for it or possibly take the place of the money to solve the problem. Most times things happen that no one bargained for but you will have no option but to respond accordingly. These experiences are sometimes among the reasons one needs to invest. Irrespective of the nature of the investment, for instance, bitcoin that you have direct access to when you are in urgent need that requires a financial commitment and you have no cash at hand and in your account but you have crypto assets. It is expected of you to sort yourself out.  That is good because when you have enough to sustain yourself and more, you invest the excess so as to serve you when you are in urgent need and the investment as the case may generate income as time goes by.

I am trying to gather fact on what you said here.
Do you mean funds can be used to invest in Bitcoin, just to keep as emergency fund? Or you mean at a point of emergency the best option to resolve problems is by tampering ones investment.
I do not think it necessary to invest your emergency fund in Bitcoin, because you are not yet into sorting out any issue at that moment and you feel using the money to invest is the best. The rate of Volatility in Bitcoin is high and you are placing yourself at a 50:50 risk. I believe it is not advisable.

I also think there are better option when your emergency fund can't meet up with challenges at the time instead of tampering with your investment. A loan can be collected from Family, Freinds or any Financial services but not your investment

In Crypto, you are advised to invest what you can afford to loss.  That is the point and as a smart investor you should be able to have a budget and plan of investment so as not to be in a situation whereby you will have to start looking for where to go borrow from to sustain yourself.  Always set out small portion of your income that you know would not bother you if you invest in them.

Emergency can happen at any time and when it happens, it always requires urgent attention to resolving it. In  that case one would need to fall back to their investment  to sort themselves out. When this occurs, you will have to acknowledge the fact that investments are much worth it. Investment to me sometimes is a back up plan otherwise what is the investment there for if I can not be able to use it for myself when the need arises.

[rachael9385]

You can still end up overinvesting and getting your self into the same kind of lack of an emergency fund, even with DCA.

DCA does not completely reduce the problem of overinvesting, but surely it can manage the overinvestment temptations that cause people (maybe moreso newbies, but it can happen to anyone who is overly investing and not sufficiently preparing emergency funds and projecting out cashflows for a sufficient amount of time in advance)..

I get the point now, even with the use of DCA strategy without the plan for emergency funds investment could go very bad were as  you could be lack of funds when emergency needs will arise and as such you will be left with no option but to sell from your investment, perhaps I overemphasize DCA on one direction which is to solve the problem of overinvesting and risk management for accumulating a bit by bit forgetting the need for emergency funds which is very important and essential which will help and spice up DCA strategy knowing fully well that as your accumulating using DCA method your also adjusting to your emergency funds.

It is good that you already know how important it is to keep emergency funds. Investing all of your salary in Bitcoin is not advisable because you can easily sell your coins when matters arise, so as you are investing some of your salary, you should also save some for emergency issues.
It is good to accumulate more BTC, but your accumulating strategy should be in a proper way. Although it is not a bad idea as you are using the DCA method to accumulate, you should also save funds for emergencies. An emergency can occur any moment, so it is good to get prepared for it so that when it comes you will not think about selling your coins.

Some people who don't save up for emergencies use the coins that they have accumulated for months or even years to sort out solutions to their emergency problems and, after they might have settled their emergency problems, they either start afresh to accumulate or they quit their investments, so instead of any of us to be in that category we should learn to save money for emergencies.

[Dr.Bitcoin_Strange]

but you don't just want to invest it at once because you feel the price will go down below what it is, and you start to invest using the DCA strategy. Secondly, if you are working for a monthly or weekly salary, you can also have an amount you always want to allocate to bitcoin, either weekly or monthly, at any time you get paid.

Indeed, that is my current method, when I receive a weekly or monthly salary, I always make an allocation for Bitcoin, the amount specified, for example 10% or 20%, actually that is enough, the rest I can cover my other needs for a month.

Yeah, it's a good approach. Normally, it's a wise idea for someone to make a budget on how to spend their salary; otherwise, they may end up spending all their salary and not still be able to satisfy all their needs for that month. Even if the person is not investing in any asset, they can roughly spend all their earnings on personal needs and still might not be able to keep some funds for emergencies. Which is why It is good to always have a budget design for how you will allocate your salary and what you want for that month, and while doing so, you should know how much you need to fulfill your needs, which should be able to serve you till the next month that you will receive your next salary, how much to put in your emergency fund, and how much you can invest in bitcoin. A good budget might help you to even spend less and help you to be contained with what you have until you receive your next payment.

When you are close to receiving your salary or after you have received it, you just have to take your time and make a budget, and while doing so, never forget to also add some funds to emergency funds, then allocate the amount  you want into bitcoin.

To make it more balanced, the 10% DCA bitcoin 15% emergency fund is the right allocation depending on how much salary you receive, but I have prepared both, including an emergency fund and consistent DCA.

Actually, I have prepared an emergency fund before but only covers 2 months, but I want to increase it to 6 months and then after that I will increase the bitcoin allocation more.

Do it in the way that is best comfortable for you, depending on how much you earn every week or month. Everybody's salary varies; some people can put more money into their bitcoin investment and only put less money into their emergency funds, and yet they will not be affected in any way; they will still have their needs contained until they receive their next salary and work out the new budget they also have for that month.

Some people can even invest 30% of their salary in bitcoin, 50% in their needs and bills for that month, and 20% in emergency funds, but that still depends on how much the person is earning.