Buy the DIP, and HODL!

[Lord b]

y
We having been discussing about the DCAing accumulation process for some time now but haven't put into consideration on how to take profits.
I might be wrong and will gladly ascept any correction but I think their should be a time to invest and a time to begin taking profits, one step needs to be attained first before taking the other.
It is best to live the investment from your DCAing to mature after completing the budget reaching a significant price during the bull run it can also be from personal decision and the way we view the market.

You're still thinking short term and in such cases you should just take your profit like every normal trader but when you talk of accumulation of btc and using dca as a risk proof investment strategy then you start seeing the market in a different light and even when you've made some profit you'll tend to view it as an opportunity to invest more

Think of it as a business strategy,how many big cooperations or firms do you ever see their investors or shareholders sell their shares simply because the stock value is increasing and they've made considerable profit?? Of course none or rather very few instead they double down on it and invest more because the profit only signals that they're on the right trend and the business is likely to grow and amass even more profit

Why take profit when you can hold out for a couple more years,I think unless you have a critical life challenge that inevitably requires you to sell out all you ow,I seriously think this a wrong and hurtful approach to investment

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[Mayor of ogba]

Anyone who looks at Bitcoin's past history is bound to believe that investing in Bitcoin and holding that investment for a long time is the most profitable of all. You will see where Bitcoin's journey started and where it stopped. Since 2009 till now, Bitcoin's popularity has increased as well as the value of Bitcoin has increased a lot. There are many investors who are just watching the market but haven't dared to invest. Those investors have been watching the market for years and missing opportunities and regretting not being able to invest. Investing in a short-term plan by understanding the market may give you some profit, but if you hold your bitcoins for a long period of time, bitcoins will give you much more than you expect. We cannot covet a small amount of gain for the sake of this much, we must aim for something much bigger.

That is why investors who already believe in Bitcoin will still hold their Bitcoin even though the price is still low. In fact, they will continue to buy Bitcoin as long as the price is still low because they know it is their chance to get it at that low price. They will not want to lose the opportunity to buy and keep Bitcoin because they believe that it will return to its highest price in the future. And this has been applied again by investors still confident in Bitcoin. They don't panic when there is a correction but will look for the right time to buy more Bitcoin. We must be able to buy Bitcoin, too, and we already know the DCA method, which will be a way for us to buy Bitcoin regularly.

I do not think that any of those following this discussion still have doubts in Bitcoin. They believe in Bitcoin and have seen the opportunities it presents that is why they followed this discussion even up to this page 260 with over 5000 messages. When we all believe in Bitcoin already, the challenge then becomes how to go about accumulating and managing the accumulated funds because it is not just enough to buy Bitcoin, but being able to manage it well is equally important.

What we should be more concerned is how to strategize to be able to conveniently buy Bitcoin, hold it and make it a continuous process. That is indeed what the many contributors are emphasizing, giving great ideas that when utilized will address the issue of panic sells, quest for quick profits, FOMO and other challenges that many Bitcoin investors face.

Anyone starting his Bitcoin career will first address key issues such as:

• His cashflow: If regular or unpredictable as that will influence his step 2 below.
• His method of buying: If it it will be bulk purchase or applying the DCA method
• Emergency funds: This will take care of unexpecting developments that make him to sell his Bitcoin at the time he did not envisage

If these are well taken care of, it becomes easy to start the Bitcoin journey with target and the emotional rest needed to manage the assets properly.

I also think anyone starting his Bitcoin accumulation journey should know that Bitcoin is not a quick get-rich-soon scheme, and also be aware of the volatility part of Bitcoin so that it will enable the person to hold his Bitcoin for the long term, even though there is a drop in Bitcoin price because he/she already knows that is one of the characteristics of Bitcoin.

[adultcrypto]

Just like what @JJG said in his earlier post that, there are fours ways which an investor should prepare on when he wants to start his bitcoin accumulation, which are having plans to buy on the dip, lump summing and the superior of all the DCA method, and the fourth one is your emergency funds that will cover 3-6 months duration. The emergency funds is more important because if you don't have it ready, there is no way that you will succeed in your bitcoin accumulation journey. You will end up ruining it because you don't have what you will fall back on to use, when the unexpected and unforeseen challenges arises, which must be taken care of. This is why I make my emergency funds my priority as I am investing using the three methods to accumulate bitcoin depending on the rate of my cash inflow at that moment.

You are talking about taking profit while Dcaing, it means that you are killing the purpose of Dcaing, which is to increase your bitcoin portfolio during your accumulation stage. It is good to aim at long term profit and not short term profit so that you don't end up making wrong decisions that will lead to you regretting your actions through out the rest of your life. This is because there are mistakes that we take that we might not be able to correct anymore and they will live with us and it will be too late for us to do anything than regret.

Sell not but hodli and see that your investment is worth hodling for the future.

In fact, the four points you have mentioned have become the main calculations for someone when planning an investment in Bitcoin. let's say if someone has passive income every month and they are able to set aside 10% regularly every month then their investment planning will of course not be disturbed because they get passive income every month.

The percentage of income to set aside for Bitcoin investment depends on a lot of factors. It is possible the total income is not even enough for meet the basic needs, in this case what the person need is to work out other sources of income to increase the cashflow before thinking about investing in Bitcoin if the Bitcoin must be safely held for long. Another scenario could be that the income is so big that one can even set aside 50% to invest in Bitcoin and it will not affect the needs of the investor or the emergency funds. Therefore, there is no fixed percentage of funds to set aside for Bitcoin investment rather, it should be calculated keeping in mind the basic needs of the investors as well as the need to set aside some emergency funds.

Apart from that, if they are beginners, they should not be too selfish to buy aggressively because they need to strengthen their mentality when the price of Bitcoin changes suddenly. Because beginners often panic when prices fall because they are not experienced enough to deal with situations when prices fall drastically. For that reason, I agree with all the points which deserve to be a priority for us in accumulating Bitcoin for long-term investment.

The best thing a beginner Bitcoin investor should learn is the DCA method. It is easy to apply and address all the concerns that comes with emotional business like Bitcoin investment. In other words, the DCA approach saves the new Bitcoin investor a lot of energy, time and money because by just adopting the DCA method, the chances of mistakes and regrets have been reduced or possibly eliminated.

I do not think that any of those following this discussion still have doubts in Bitcoin. They believe in Bitcoin and have seen the opportunities it presents that is why they followed this discussion even up to this page 260 with over 5000 messages. When we all believe in Bitcoin already, the challenge then becomes how to go about accumulating and managing the accumulated funds because it is not just enough to buy Bitcoin, but being able to manage it well is equally important.

What we should be more concerned is how to strategize to be able to conveniently buy Bitcoin, hold it and make it a continuous process. That is indeed what the many contributors are emphasizing, giving great ideas that when utilized will address the issue of panic sells, quest for quick profits, FOMO and other challenges that many Bitcoin investors face.

Anyone starting his Bitcoin career will first address key issues such as:

• His cashflow: If regular or unpredictable as that will influence his step 2 below.
• His method of buying: If it it will be bulk purchase or applying the DCA method
• Emergency funds: This will take care of unexpecting developments that make him to sell his Bitcoin at the time he did not envisage

If these are well taken care of, it becomes easy to start the Bitcoin journey with target and the emotional rest needed to manage the assets properly.

I also think anyone starting his Bitcoin accumulation journey should know that Bitcoin is not a quick get-rich-soon scheme, and also be aware of the volatility part of Bitcoin so that it will enable the person to hold his Bitcoin for the long term, even though there is a drop in Bitcoin price because he/she already knows that is one of the characteristics of Bitcoin.

The volatile nature of Bitcoin is not much of a big issue for long term investment. No matter how the spike is, you can buy and hold because before starting, you believe in Bitcoin to appreciate over time. Besides, you will not be in a rush to sell before the market drops or buy before the market rise, you already budgeted the funds for investment.

[JayJuanGee]

Just like what @JJG said in his earlier post that, there are fours ways which an investor should prepare on when he wants to start his bitcoin accumulation, which are having plans to buy on the dip, lump summing and the superior of all the DCA method, and the fourth one is your emergency funds that will cover 3-6 months duration. The emergency funds is more important because if you don't have it ready, there is no way that you will succeed in your bitcoin accumulation journey. You will end up ruining it because you don't have what you will fall back on to use, when the unexpected and unforeseen challenges arises, which must be taken care of. This is why I make my emergency funds my priority as I am investing using the three methods to accumulate bitcoin depending on the rate of my cash inflow at that moment.

I think that everything you say is correct, except you do not need to establish your emergency fund in advance, but it may well be a great idea to establish it somewhat parrallel to your BTC investment until your emergency fund reaches a certain status, and of course, if you were to come in BIG to bitcoin (with a large lump sum or something like that), then it would be more important to make sure that you have an emergency fund that is in place that is at least accounting for the amount of your lump sum.

Let's go back to the example of the guy who has expenses around $1k per month and maybe an income of $1,500, so he has $500 extra that he could invest into BTC, and if he already has $1k emergency fund set up, then it is not really adequate, and maybe he needs to get to $3k in his emergency fund, so maybe he would be able to invest $250 into BTC and $250 into his emergency fund every month until he reaches his 3 months minimum.... and maybe it takes him 8-12 months before his emergency fund reaches $3k (3 months) and also maybe his BTC investment is over $2k by that time, too.. and then at that point he may start to feel that he has a bit more flexibility getting his emergency fund having 3 months expenses and into having 6 months, and maybe it takes him another 2 more years to get his emergency fund up to that level and then maybe he has more than $8k invested into bitcoin and something close to a 6 month emergency fund... which seems fair progress and surely as the guy builds wealth, he is going to likely have more more flexibility in the ways that he holds his value, and surely there is some urges to keep as much value in bitcoin, but once the emergency fund is well established then maybe he will be able to start to invest $125 or more per week into bitcoin, and maybe he had been able to increase his income and reduce his expenses, but if not at least he is on stronger grounds, but he did not wait to get started buying bitcoin, even though he ended up not being able to buy as much bitcoin until he had his emergency fund better established.. and sure maybe once the guy gets to 3 months, he might choose to be more risky and to invest a higher portion into bitcoin and maybe it takes him 4 years or more to get his emergency fund up to the 6 months level.

At the same time, I mentioned that if maybe he comes straight out with a desire to lump sum invest $5k into bitcoin, but he ONLY has 1 month's emergency fund, and maybe he would be better off to put ONLY around $3k into bitcoin and to use the other $2k for his emergency fund and then go into DCA investing at that point, since he is would then have used the lump sum to make sure that his emergency fund is in place, since he is starting out more aggressively into bitcoin... and so in that sense I am ONLY attempting to clarify rather than disagree with you Frankolala.

[edited out]

In fact, the four points you have mentioned have become the main calculations for someone when planning an investment in Bitcoin. let's say if someone has passive income every month and they are able to set aside 10% regularly every month then their investment planning will of course not be disturbed because they get passive income every month. But for those who work odd jobs, of course they have to manage the allocation of their funds as best as possible to keep the investment they plan running smoothly, such as setting aside a little for an emergency fund because if they don't have an income at that time of course they have an emergency fund to keep buying Bitcoin regularly.

I am not sure what distinction that you are trying to make ginsan in terms of bringing up passive income.  I think that many people invest because they are trying to get to a status in which they can have passive income, but if someone might already have passive income, then that would not really be telling us very much about anything that the guy might do better, except that maybe he might have more time that he might be able to dedicate to studying bitcoin, since he does not have a regular job, but it also could be the case that either he expects his passive income might not be able to sustain him in the future, or he is investing with part of his passive income because he is wanting to create circumstances in which his investments might be able to increase his income in the future.  Which money from investment tends to be passive income, even though there maybe be some work involved in managing it.. or learning about the ways that you are investing, whether in bitcoin or anything else..and of course, we are mostly focusing on bitcoin in this particular thread.

Apart from that, if they are beginners, they should not be too selfish to buy aggressively because they need to strengthen their mentality when the price of Bitcoin changes suddenly. Because beginners often panic when prices fall because they are not experienced enough to deal with situations when prices fall drastically. For that reason, I agree with all the points which deserve to be a priority for us in accumulating Bitcoin for long-term investment.

I doubt that the justification for being aggressive has to do with whether someone is a beginner or not, and maybe the beginner has to be more careful about his level of aggressiveness, and since presumptively he would be in the earlier stages of learning about his investment, but as the person gets more and more systems in place and learns about his investment (and his cashflow situation) he thereby would be in a better position to increase his aggressiveness level.

If you took profit once, or it is not a regular thing, then it is okay to take profit. Do not just make it a regular thing because that is where it will affect the profit you are supposed to make from DCaing which should be the increase of your portfolio. Also if you are to make a withdrawal from what you have been DCAing, try so that it is not a very big amount that affects or takes out amount of money equal to what you will DCA for like three weeks. What I mean is, if you must withdraw, there should be a limit to what you plan to withdraw from what you are DCAing.

We having been discussing about the DCAing accumulation process for some time now but haven't put into consideration on how to take profits.
I might be wrong and will gladly ascept any correction but I think their should be a time to invest and a time to begin taking profits, one step needs to be attained first before taking the other.
It is best to live the investment from your DCAing to mature after completing the budget reaching a significant price during the bull run it can also be from personal decision and the way we view the market.

We are not talking about those kinds of "taking profits" or figuring out when to take profits matters in this thread, and that is one of those concepts that traders try to impose upon you as if it were some kind of a prerequisite to figure out what your exit strategy is or is going to be.

Most likely if you have have an investment plan that is 4-10 years or more, then you may well can start to address those kind of taking profits matters or converting into other ways of managing your BTC holdings down the road.

And, sure there is nothing wrong with making sure that you are able to exit your investment if you were to need to exit, because no one should invest into anything if they have no way of exiting.. and surely one of the problems can be that there are ongoing attacks upon bitcoin, so that sometimes some of us might have gotten into bitcoin in certain kinds of ways that do not really allow us to get out in the same ways, including that exchanges lock up and close down and various other ways of getting out of BTC might end up drying up.. so it could be a bit concerning regarding knowing whihc kind of ways of liquidating bitcoin are going to be available by the time we enter into a stage where we are no longer accumulating, and we might want to trade and we might want to sell some or all. even though selling all does not seem like a great strategy either .. especially if someone might have spent 4-10 years or longer investing into bitcoin, so what would be the purpose of getting out?  to buy a lambo? or maybe some other purpose(s)?

If you took profit once, or it is not a regular thing, then it is okay to take profit. Do not just make it a regular thing because that is where it will affect the profit you are supposed to make from DCaing which should be the increase of your portfolio. Also if you are to make a withdrawal from what you have been DCAing, try so that it is not a very big amount that affects or takes out amount of money equal to what you will DCA for like three weeks. What I mean is, if you must withdraw, there should be a limit to what you plan to withdraw from what you are DCAing.

Sometimes taking the profits ones could be the beginning of your investment downfall because I have seen were someone who invested on Bitcoin and when he realized that his investment has gotten some profits so he now decided to sell off all the accumulated Bitcoin in other to have a good profits but with the intention of buying it immediately the price drops a little but actually little did he realize that he had made the greatest mistake on his investment because after selling his Bitcoin the price has increased so much that if he decided to buy the same amount he had bought before the number of Bitcoin he will get will not be the same even joining with the profits he had gotten he will not be able to get that amount, so he became disoriented that if he had known he would have not taking this decision and now a little profits he was chasing has cost him not only his investment but also with the chance of getting back to the investment because of the price increament of Bitcoin. So actually my point is that in as much as you feel that taking profits ones from your investment is good but however you should also think about impossibility of getting back to the Bitcoin accumulation after selling your investment.

That is quite a common problem of bitcoin in terms of guys who sell way too much too soon and then they become bitter.. and they keep waiting for dips that do not end up coming, even though they might have thought that they were smarter than everyone else by selling and making good profits.

[Churchillvv]

That is the last choice when that will be taken by us in the end when it is a difficult situation and there is no other way we can do because it is already inconvenient to deal with some difficult situations then I think it is not a problem to sell a small part of the portfolio that we have to support so that our lives survive but of course there is another note that this can be done if we have already profited from it and when we have been doing DCA for a long time I think we have definitely benefited from the previous DCA so selling for very urgent needs is not a problem if it is the last choice and the only option left because we must realize that even though investing in bitcoin is important but supporting the current life to survive well is much more important. The only option left because we must realize that even though investing in bitcoin is important, supporting life today so that it survives well is far more important.

Of course I will partially agree with you for some reason but never completely. Though some times situations where our life's depend on our investment, we probably don't give an f* of what it will cost us but as long as we are alive it's the best option.

So this where most of us here in this thread gets it's all wrong because emergency funds are savings that are might to bail us put of situations that would have cost us our investment rather it will only take your emergency funds instead of your investment, that is the core purpose of emergency funds.
but most of you don't really understand this fact, if you're preparing yourself for investment, your emergency fund should be a priority for you in order to survive all kind of waves including the life threatening issues that was supposed to cost you your investment. This emergency funds should not just be for a mere car repair issues or minor medical issues but contain both the funds that will probably drive you away from all kind of problem that will seek you to attempt with your investment.

If you wish to understand Bitcoin investment very well I will suggest you go to JJG’s Outline of Bitcoin Investment Ideas thread there you will read more about both emergency funds and all the methods of Bitcoin accumulations.

I think for now I'll just follow up a bit till I can grab what your saying fully, I'll try my best to keep following on this thread. I can see a I've got a lot to learn here. What kind of wallet is best for holding, I just keep mine on Binance, do u think its okay?. If mistakes are inevitable, I'll make sure my back up funds are always in place.

Buddy! Yeah you've got alot of learning to do not just here in this thread but the forum generally. but as long as you keep up here you will for sure get aquatinted with the buy the dip and hodl knowledge and I will suggest you read further to comprehend everything that is being discussed here by reading this thread JJG’s Outline of Bitcoin Investment Ideas

For wallet, it's best to hodl a good stash of Bitcoin in a secured wallet and not an exchange like binance. A self custodial wallet is most advised and for such you can create a cold wallet on an airgapped devices to be more secured with you holdings. but if you're just holding a very low amount of Bitcoin you can probably still keep it on an exchange wallet for some time but as soon as it hits a $500 and above then you should move to a good wallet like I have suggested above.

[Tmoonz]

what kind of emergency are we talking about here?.

Emergency funds is very important, because you will need it to take care of any expenses that arises that is out of budget. You said that you are staying with your parents, but it is not everything that you need that your parents will provide for you. For example, taking your girlfriend out or if she is in condition and needs your help financially. There are some emergencies that occurs that are not of our power to stop them and that is why you need to gave an emergency funds always reasy so that you don't go back to sell your bitcoin investment. So for you to be successful in your bitcoin joutney, an emergency funds is very important. Dor people that have some kind of business running, there businesses can be used to take care of their emergency funds.

I agree with you, an emergency fund is very important, because it is something that must be paid attention to, there will be a situation where we will experience something sudden and of course it requires funds to overcome it, such as an accident or other things, so we have an emergency fund it will help us to overcome something that can happen suddenly. Of course, even though we have parents, it doesn't mean that the needs we need can be provided or fulfilled by our parents, at least we also have to have good thoughts, by not burdening our parents to fulfill our wishes.

If you have a fairly serious problem that must be resolved with finances that may be quite large, that doesn't mean you have to sell your bitcoin investment. because in my opinion, selling Bitcoin investments certainly cannot be done haphazardly, it must be done and carefully. If someone already has a business then in my opinion it is mandatory for them to think about an emergency fund and have one.

Always having the concept of the thread in mind which is learning various strategies of accumulating Bitcoin for longer time will maximize best understanding, of which having an emergency fund is a key factor that should be infact be prioritize because it does not only help an investor to hold on to his investment it also help from not borrowing in an emergency which at most time attract interest fee at payback time. Bitcoin is in it's journey to the permanent cite it's limited in nature makes it very unique, is a store of value and wealthy. Bitcoin investment is a long time investment that any one venturing in to it should know in other to obtain what should be obtainable. Having an emergency fund will definitely make an investor hold more longer than planned. Hold as long as you can.

[Gallar]

We having been discussing about the DCAing accumulation process for some time now but haven't put into consideration on how to take profits.
I might be wrong and will gladly ascept any correction but I think their should be a time to invest and a time to begin taking profits, one step needs to be attained first before taking the other.
It is best to live the investment from your DCAing to mature after completing the budget reaching a significant price during the bull run it can also be from personal decision and the way we view the market.

The context of profit taking from the perspective of the person doing DCA on Bitcoin can be said to be different for each person. The reason is that DCA is a purchasing strategy that is always synonymous with periodic purchases and usually has a long period of time. So you are either right or not right in this context. Because for bitcoin investors who have been doing DCA for a long time (6-7 years ago) and their DCA goals have reached the end point. Maybe profit taking can be done now or when Bitcoin is in a bull market. But for people new to DCA, I don't think these years are a good time. Because even though the price of bitcoin has soared high, for example DCA has just started or the target has not been achieved. It is very likely that investors who carry out DCA will not sell their bitcoin assets first.

Apart from that, if we talk about the right time to invest, actually for people who do DCA every time it is the right time. Because if you don't know for sure, DCA is a purchase that doesn't look at how expensive the asset is when you want to make the purchase (Bitcoin). But more precisely, just focus on the consistency of routine purchases every day, week, month or even year. So the conclusion is that the majority of times are very appropriate for bitcoin investors who carry out DCA to make purchases.

DCA is an investment strategy in which a person systematically invests a small amount of money in an asset over a certain period of time, whatever the price of the asset at that time.

Source: https://bengkulu.harianhaluan.com/reportase/amp/23811284004/mengenal-dca-dalam-investasi-crypto

[JayJuanGee]

It seems that I have already described some of this in earlier posts, so generally you want to hold 3-6 months of your expenses in some kind of way that would be mostly in the type of currency that you use to pay your bills, and sure some people even hold value in the dollar rather than their local currency because it tends to hold value better.. but none of that is guaranteed either... so when you invest into something that is as potentially volatile as bitcoin, you don't want to have to cash out at time that is not of your own choosing.. think of the March 2020 event.. if you had been forced to sell your bitcoin during that dip, you would have been screwed in terms of getting it back for even close to the sell price.  There are a lot of ways that people can have emergency expenses, and yeah, you might not have as many if you are relying on your parents as your emergency fund... but maybe that would cause that you don't need as much of an emergency fund, and you might have to consider if something happens with your parents or your reliance on them as an emergency fund.. and I am not going to be the one to determine how adequate your emergency fund is.. or if your practices of thinking through your own situation is sound enough..

I think i need to also work on my mindset as I work on my capital and strategies cause if I'm not prepared in such a way that I've made my decision not to touch or sell my bitcoin because of any dip that happens and from your senerio from march 2020 some dips can happen and make it look like as tho I didn't plan well, so I think in my preparation I should keep a standard to never sell until I reach my goal, since a rush sell intended to cover up and buy at a cheaper price could in turn back fire at me. I think setting standards would also be of good help to me as a beginner.

ONLY you are in a position to figure out your exact balances, and usually you want to put enough into bitcoin so that you won't feel bad if the BTC price goes up since you would have already put enough in that you feel that you have a bit of a stake, yet the balance goes in the other direction too, so as I already mentioned your first full cycle, and maybe even longer could be difficult in terms of getting a kind of balance that is comfortable for you, and you can ONLY do so much about your income and your expenses.. so you have to work with what you have, and even if you believe that you do not have a lot of income, you have to still realize that you are ahead of a lot of people in the world who still do not either appreciate bitcoin and they have not taken actions to invest into it... so sometimes a fairly modest investment approach can pay off quite well while you are still figuring things out. 

Remember just a few days ago, you said that you ONLY just made your first $10 purchase, so that already put you ahead of those who had not taken any actions, so maybe if you just consider whatever you are doing is making progress so long as you don't overdo it and cause yourself to get reckt because you over did it.. and at the same time, you seem to be still studying about the plusses and minuses of bitcoin, so there should be nothing wrong with starting out with a relatively modest investment approach until you get your bearings.

I plan on building up my emergency funds from saving from my monthly income, since this is more reliable, and since you've been stressing on the importance of having a backup fund in case of market opportunities like major dips, this could also favour me if I buy at such opportunities. But if I can't meet up with this high strategies, cause I still think it might take a while for me to fully understand the way the market works, would you consider it wise, I buy majorly at dips and dca regularly for safety and to insure I buy at all times than to lump sum without giving a kind of spice to it.

Ultimately the choices is yours, and you are completely responsible for whatever you do, and we are largely just brainstorming in these kinds of threads because no one is going to help you if you screw up and we are not going to take blame if you follow what we suggest and then it does not end up working out for you. 

Many of us will take from our own experiences, and for me, when I first got into bitcoin, I set up a 6 month budget.  I added up  all the cash that I had available that I was authorizing to go into bitcoin, and I also added up my expected cashflow for those upcoming next six months.  One of my advantages is that I had already been investing for more than 20 years when I got into bitcoin, so I pretty much already had my emergency fund in place.

So what i am suggesting is that if you establish your budget, and let's say that you have figured out that you have around $400 to $800 in income every month, and you have around $300 in expenses every month, you have about $600 saved up, and so you could try to figure out what to do from there, once you have all the numbers. So if you already know that your income exceeds your expenses by between $100 and $500 per month depending on your income, and then you know that you have about 2 months of an emergency fund, so you should probably build it up between 3-6, but you can invest in bitcoin and beef up your emergency fund at the same time. 

You can kind of figure out if you are buying BTC every week or if you are going to wait for certain times in the month, and if you figure out your 6 months budget for bitcoin the you could divide it by 26 or maybe you divide it by 13 so then you have a budget every week or every two weeks.  If you do not end up lump summing to get started, then you could divide part of your weekly/biweekly allowance into DCA and buying on dips... maybe you decide that no  matter what you will buy $10 per week DCA, and then you will build up your buying on dip fund until it gets to $100 or $200 and then once it reaches certain sizes, then you might increase your weekly DCA because you have more in reserve for buying on dips and you could also use your emergency fund as such a measure. Once your emergency fund reaches a certain size, then maybe you decide to increase your DCA by a certain size and/or your buying on dip fund.

You could have situations in which some months you have some extra money come in or some expenses that get greatly reduced, and you can decide which bucket to put that extra money into, and the more you practice, the more it will start to become naturally to you which category to put it into, and maybe after you get up to a certain amount of BTC, whether $500 or $1k, then you figure out some private wallet to move it into... hardware wallets (such as the Trezor) are good, but maybe you want to make sure you get up to a certain amount of BTC before you buy a hardware wallet.

So maybe after 3-4 months you end up figuring out or even receiving an extra $600, and maybe the default would be to divide it into 3 and invest 1/3 into DCA, lump sum and buy on dips, but if your emergency fund is not quite bolstered, then maybe you would decide to divide it into 4 parts... there are a lot of possibilities and no real right answers, even though some ways of going about it are probably preferred to others, and you likely will make some mistakes along the way, but if they are just small mistakes it is easier to learn and recover, but if you end up making some BIG mistakes, like you decide to just throw everything into bitcoin, and then you end up having an emergency and/or the BTC price moves against you, then you could end up losing all or most of your investment, and sometimes guys will lose several years worth of investing and putting systems into place because they make big mistakes and they cannot figure out how to get out of the mistake and then they end up doubling down or some other kind of gambling behavior rather than just accepting that losses along the way will sometimes happen.

By spice I mean when lump sum are just done as they should when I'm just buying in large quantities than I normally through dca, this time I use my lump sum amounts to buy only at dips. Or should this emergency fund be for a totally different senerio where a major dip happens that nobody expects and I use that money to take advantage of it.

You should be able to more or less pre-describe the reason that you are holding any extra money in certain funds and in certain ways, but one of the problems when you try to be too smart about it, then sometimes you could end up panicking if you are holding too much cash and waiting for dips that do not end up happening, and then if the BTC price ends up going up 15% or more, then you start to speculate that you should have just been buying all along with it instead of holding it, so these are not easy balances, either way.. As a beginner, you probably should be allocating more towards either buying right away or DCA rather than holding for dips, but I cannot really tell you for sure what is going to pay off the most in the end, because I don't really know either, especially short-term price moves -

...yet if the you spend a certain amount investing and even overinvesting at certain price points, then you might feel that you need to protect yourself by keeping some extra cash on the side to have ready for dips because you had concluded that you already over did it.. and you want to have some extra cash in case there is a dip.. but if you are just starting in bitcoin, it is not very likely that you have bought too much, since you have ONLY so far proclaimed to have had bought $10.. so it would be difficult to perceive to have too much BTC, at least at this point in your BTC investment journey, you don't have any problem of having too much all at once... unless maybe you go and buy $500 and then start to feel stressed about it. then at that point it might be good to have some extra cash available to buy on dips, in case there is a dip from whatever point you bought the $500 worth..   

For a start I think I can use two strategies, lump sum and dca since I can manage that for now, is it also possible I lump sum on dips, since its buying with a huge percentage of your capital each month, can I use lump sum in a way that i set it to buy at any dip that occurs in the market while I use dca to be on a safe side since the market is unpredictable?

That sounds mostly reasonable to be combining your practices and then also monitoring how it goes which might allow you to learn from if you are balancing matters out well.  None of us is going to feel comfortable if we run out of cash and the BTC price dips, and maybe we buy but then it keeps dipping, so then we might start to wonder if we structured our dip buys good enough or maybe we can just use DCA if the BTC price keeps dipping and we don't have any extra money at that time..  

The longer that you are in bitcoin, then the more that you should be able to build up your reserves in various places, but even experienced investors might run out of cash or feel that they don't have enough cash to take advantage of dips and then they get concerned about if they might want to sell some and to buy back lower.. which I believe is one of the worst mistakes, even though quite a few people engage in that kind of behaviors, but if you have a regular cashflow coming in, then you can keep buying, but if you had been buying BTC for 4 years and then it dips a lot then you might feel that you are not getting as much advantage from the dip because you are buying lower, but your BTC holdings might have lost 50x or 100x or more than the amount that you ended up being able to buy.. because let's say you had been buying $100 per week of BTC for the last 4 years, so you had invested around $21k and you have more than 1 BTC, and if you are still investing at the same rate, but the BTC price drops 20% from $49k to $39k, then at today's prices you lost around $10k, but you might have been able to buy $100 or maybe $200 worth of bitcoin at those prices, depending on how long the prices stay down at the 20% dip levels.

From what your implying I believe that a having a reserve fund is good incase of dips, tho during long period of accumulation sudden dips that could go up to 20% could seem as a loss, but if my time frame and goal is still far I think, this could be to my advantage if I've had my reserve fund in Check and I'm still dcaing, cause surely bitcoin has surely shown price improvement and I'll end up buying more during those dips since price are low.

You can really never know - especially now there are so many people who believe that we are more likely in the earlier stages of a bull market rather than a bear market or flat, which would justify lump sum and aggressive DCA.. but that could also end up being wrong.  When I got in, there ended up being 2-3 years in which my holdings were mostly not in profits, although since I continued to DCA especially in 2014 (a down year) and 2015 a mostly a flat year, my average cost per BTC came down from $1k to below $500, but then I ended up having some mistakes in 2017 that likely brought my costs back up to $750, and these days I just like to say that my costs per BTC are around $1k, since it is a nice round number. and so i am not sure how much it matters if I say that my holdings are 42x in profits or if I try to use a lower number to say that my holdings are 52x or 62x or more in profits.  At a certain point the profit levels might not matter as much as just figuring out how to plan your maintenance after you have reached the stages in which you feel that you have enough or more than enough BTC, versus if you are in the earlier accumulation stages, you just should probably be focussing on accumulating and not so worried about the price, but instead worried about your keeping yourself from making mistakes in which you lose your accumulation and your building of the your stack..

so lets say if you first set your goal that you want to get 1 million sats, and then you want 2 million, and then you want 5 million and then 10 million and then 21 million and then 50 million, and etc etc.. and maybe it won't really matter how much you pay for them, as long as you are using extra money that you have and you are not putting yourself into any bad money situation while you continue to build your stack size... after you are doing these things for a while, then you can readjust your goals and rethink about where you are at, where you came from and where you want to go.

But if this strategy is so important could I replace it with lump sum for a start, cause I'm still building up my portfolio, so those lump sum capital could go into my savings while I keep it for dips, but what I'm considering is would they always be dips and if I say lump sum is better, what's is the need of lump summing if its not going to give me a better advantage. If your okay with this I think I could go with dca and dip buys for  a start.

Another way of thinking about lump sum investing is that it is way of front loading your investment and you do it either towards the beginning or you do it once you have established conviction about the investment and you feel that you need more BTC in order to be better prepared for up.  Buying on the dip is a different thing, but it still can be done in a lump sum kind of way.  I am not that excited about ideas that involve waiting to buy, unless you really feel that you have enough BTC to be prepared for up... but yeah, if you are a scaredy cat about BTC then you might wait or you take a whimpy position, and that is up to you.. because you may well be preparing for dips that do not end up happening and in the meantime you are insufficiently/inadequately prepared for up.. but in the end it is up to you regarding how to balance out making sure that you are prepared for up, while at the same time making sure that you are prepared for down too, just in case it happens..

You may well feel screwed if the BTC price goes down after you had already invested all $200 and then you don't have anything left, and then you may well feel screwed if BTC prices go up and you still are sitting on some cash.  In the beginning it is almost a no win situation and you just try to balance it out as best as you can, and maybe after a few years investing you start to feel that you have everything in place.  You have figured out your budget and you have some reserves for buying on dips and you have built and established an emergency fund.. and maybe you have figured out some ways in increase your cash flows and to decrease your expenses... but you still are likely going to always have some tensions in terms of trying to figure out how many BTC you need and how long it is going to take to accumulate as many BTC as you believe that you need.. especially if your goals might be to reach some variation of fuck you status...

and if you think about it, there are a lot of people who work 30-40 years or more and they do not reach fuck you status, so if you are able to actually reach it or maybe even reach it in 15-20 years, then you end up both reaching it and cutting the time in half.. and none of that is guaranteed.. You just need to do your best under your own particular circumstances.

I believe in other to avoid that tension I would set a big goal, then start with smaller targets or milestone, this emotion strategy would be good for me to avoid the tension around the time frame for accumulation and how many I would accumulation within that time frame.

For sure, you can set goals and then adjust them along the way... you want to have reachable and aspirational goals, and you likely could even set up some worse case, best case and medium case scenario kinds of projections, and the medium case scenarios should be the most likely to play out, but you still could end up having scenarios where either worse case or best case end up playing out... or sometimes it might appear that a worse or a best case start to play out and then BTC could surpise and bring it back to the middle, and surely once some past events play out, then your future scenarios might end up changing, so you might have an excel spreadsheet that has various scenarios and plans and then you save them and update them and then 1-5 years down the road you might revisit some of your earlier projections to compare with what you were projecting as compared to what ended up playing out.

If you are still living with your parents, then I will assume that you are on the younger side maybe lower 20s or less, and so sometimes it can take a while to both build up your investment portfolio but also to figure out your targets (or how easy or difficult it might be to reach them), so surely you can plan out targets of 1 year, 3 years, 5 year, 10 year and 20 year and maybe even further out and some other variations of timelines, and your actions are going to be much more concrete in the shorter term, but your ability to meet shorter term targets or to adjust them would likely be more measurable in the short-term in order to potentially keep you on track for the longer term... sometimes it will seem that you are not making very much progress, even if you might be ongoingly making efforts and even reasonably adjusting from time to time...and sometimes large dips can feel as if you might have had been set back 1-3 years or more, but then those perceptions might end up being false perceptions or they could become realized perceptions in which you might make some mistakes that ends up causing losses to your progress and sometimes difficulties to make up at later dates.. which in the BTC world, some BTC hodlers make mistakes of selling too much BTC too early and then they become disgruntled or maybe they end up holding too much on exchanges that get hacked or go into bankrupcy or rug pulling them, so there are various measures that each of us should try to take in order to lessen the impact of our various mistakes along the way.. It is almost inevitable that we are going to make various mistakes along the way.

I think for now I'll just follow up a bit till I can grab what your saying fully, I'll try my best to keep following on this thread. I can see a I've got a lot to learn here. What kind of waller is best for holding, I just keep mine on Binance, do u think its okay?. If mistakes are inevitable, I'll make sure my back up funds are always in place.

You probably need to research, including other threads. 

I think that up to $500 to $1k it can be o.k. to keep your funds on exchanges, and a lot of people recommend Electrum as a private wallet.... but I am not used to that one.  Bluewallet is good, but still that is a hot wallet and so you might be careful in terms of keeping too many funds on your phone, or maybe something like Trezor.. once you get up in the area of a couple thousand dollars it would be good to have a hardware device as your wallet, but you still have to learn about what you want and what are the trade offs and the need to be careful about how much of your BTC you hold with 3rd parties rather than keeping your own.. In the long run, you probably would want to have 90% or so of your BTC in your own various forms of self-custody rather than being held on or through 3rd party services.

For now I think I would start with dca with my little allowance and then use my monthly income to set up a system that can generate a substantial amount for investment. Cause if poor income and management could be a deficiency in accumulation where I might have to dip my hand back in my portfolio then I guess my first real move here should be to fix that and get my finance in order. What do you think about this.

You are describing the creation and building of an emergency fund, which surely could be life saving (and save your investment) .. and having an emergency fund will tend to give a lot of peace of mind when the BTC price starts to move against you.. which it will do from time to time.. especially the longer that you are involved in investing in it and building the size of your BTC stash.

By the way, you mentioned at least 2 bitcoin, but then you are also talking about investment numbers that would likely be quite lower than the amounts needed to reach 2 bitcoin, and I am not even necessarily suggesting that you need to get to 2 bitcoin, but if you consider that $100 per week would be $5,200 over 1 year and $52k over 10 years, you would almost need to be crazy to believe that there are very high chances that you would be able to accumulate BTC for less than $52k by averaging out your buys over the next 10 years, and that is why I had been saying that even $200 per week would be optimistic for reaching 1 BTC even with $104k invested over 10 years, so if you expect to reach 2 bitcoin or more in 10 years, then you would likely need to average around $400 per week over 10 years, and there is a bit of a presumption that you would be able to do that from the start since it is more likely that $400 per week now is going to get you more BTC than it is going to get you 10 years from now... and surely you are not even hinting at being able to have that kind of money to be able to invest now or to consistently be able to do it without putting yourself into a pickle in which you end up not having an emergency fund. ...

Surely, I am not going to tell you to NOT have high goals because sometimes goals can be reached and/or exceeded, and surely even with my getting involved in bitcoin in 2013, I had created goals for myself to be able to achieve in the next 6 months and then maybe to extend beyond the 6 months, and I was able to exceed my goals, but that was mainly because the cost per BTC was going down during that time, rather than up... so then my expectation of my average cost per BTC ended up going down because I was mostly anticipating how many bitcoins (or satoshis) I would be able to get for a certain amount of cashflow that I expected to spend over the first 6 months and then extending into the second 6 months, and each time adjusting some of my expectations based on expected dollar cashflows and also considering best case and worse case scenarios, and even though falling prices did cause worse case scenarios in terms of how the value of my BTC holdings was then going, but it created best case scenarios for being able to accumulate more BTC (as perverted as that kind of perspective seems).. because people can really call you names when you keep investing into something that is continuously loosing value (or at least its spot price continued to go down throughout 2014 and even into 2015, even though the very end of 2015 did end up being an UP year)..

I think I would keep my investment personal in other not to get your same experience and I would unwise not to take not of the fact that my goal is too high for now especially since I'm not having the capital in Check and if bad situation occurs on the long run I'd find my self in panic. I'll start small but I would still try my best to build my income to match the target. I know its possible but I still have to make sure I have a good plan.

I only mention how much commitment it would take to get to 2 BTC, which is a lot of money compared to investing $10, so there is no problem in terms of keeping your specifics personal, but if we start to talk about how many BTC that you might want to get in a certain amount of time, then we should attempt to be realistic about what kind of numbers (investing amounts) that you would need to meet in order to reach those kinds of numbers.  There is also nothing wrong with having lofty expectations (aspirational goals), but even folks with aspirational goals might also need to have more realistic goals that line up with what they are actually doing..and maybe it is not that BIG of a deal if you have some that are more easily reachable and others that are more difficult and some others that are not as likely but there could be some scenarios in which the further out ones could end up being reached or close to being reached and when they get closer, then the path towards reaching them might become more clear too.. so it likely does not hurt to make those kinds of plans and then revisit them from time to time.

[edited out]

You're still thinking short term and in such cases you should just take your profit like every normal trader but when you talk of accumulation of btc and using dca as a risk proof investment strategy then you start seeing the market in a different light and even when you've made some profit you'll tend to view it as an opportunity to invest more

Think of it as a business strategy,how many big cooperations or firms do you ever see their investors or shareholders sell their shares simply because the stock value is increasing and they've made considerable profit?? Of course none or rather very few instead they double down on it and invest more because the profit only signals that they're on the right trend and the business is likely to grow and amass even more profit

Why take profit when you can hold out for a couple more years,I think unless you have a critical life challenge that inevitably requires you to sell out all you ow,I seriously think this a wrong and hurtful approach to investment

It is also referred to as letting your winners ride... or allowing compounding to take place rather than getting in and out and then sometimes maybe hardly having any compounding effect, including fees and taxes that might result from such in and out behaviors.

[Mayor of ogba]

Just like what @JJG said in his earlier post, there are fours ways which an investor should prepare on when he wants to start his bitcoin accumulation, which are having plans to buy on the dip, lump summing and the superior of all the DCA method, and the fourth one is your emergency funds that will cover 3-6 months duration. The emergency funds is more important because if you don't have it ready, there is no way that you will succeed in your bitcoin accumulation journey. You will end up ruining it because you don't have what you will fall back on to use, when the unexpected and unforeseen challenges arises, which must be taken care of. This is why I make my emergency funds my priority as I am investing using the three methods to accumulate bitcoin depending on the rate of my cash inflow at that moment.

You are talking about taking profit while Dcaing, it means that you are killing the purpose of Dcaing, which is to increase your bitcoin portfolio during your accumulation stage. It is good to aim at long term profit and not short term profit so that you don't end up making wrong decisions that will lead to you regretting your actions through out the rest of your life. This is because there are mistakes that we take that we might not be able to correct anymore and they will live with us and it will be too late for us to do anything than regret.

Sell not but hodli and see that your investment is worth hodling for the future.

In fact, the four points you have mentioned have become the main calculations for someone when planning an investment in Bitcoin. let's say if someone has passive income every month and they are able to set aside 10% regularly every month then their investment planning will of course not be disturbed because they get passive income every month.

The percentage of income to set aside for Bitcoin investment depends on a lot of factors. It is possible the total income is not even enough for meet the basic needs, in this case what the person need is to work out other sources of income to increase the cashflow before thinking about investing in Bitcoin if the Bitcoin must be safely held for long. Another scenario could be that the income is so big that one can even set aside 50% to invest in Bitcoin and it will not affect the needs of the investor or the emergency funds. Therefore, there is no fixed percentage of funds to set aside for Bitcoin investment rather, it should be calculated keeping in mind the basic needs of the investors as well as the need to set aside some emergency funds.

Apart from that, if they are beginners, they should not be too selfish to buy aggressively because they need to strengthen their mentality when the price of Bitcoin changes suddenly. Because beginners often panic when prices fall because they are not experienced enough to deal with situations when prices fall drastically. For that reason, I agree with all the points which deserve to be a priority for us in accumulating Bitcoin for long-term investment.

The best thing a beginner Bitcoin investor should learn is the DCA method. It is easy to apply and address all the concerns that comes with emotional business like Bitcoin investment. In other words, the DCA approach saves the new Bitcoin investor a lot of energy, time and money because by just adopting the DCA method, the chances of mistakes and regrets have been reduced or possibly eliminated.

I do not think that any of those following this discussion still have doubts in Bitcoin. They believe in Bitcoin and have seen the opportunities it presents that is why they followed this discussion even up to this page 260 with over 5000 messages. When we all believe in Bitcoin already, the challenge then becomes how to go about accumulating and managing the accumulated funds because it is not just enough to buy Bitcoin, but being able to manage it well is equally important.

What we should be more concerned is how to strategize to be able to conveniently buy Bitcoin, hold it and make it a continuous process. That is indeed what the many contributors are emphasizing, giving great ideas that when utilized will address the issue of panic sells, quest for quick profits, FOMO and other challenges that many Bitcoin investors face.

Anyone starting his Bitcoin career will first address key issues such as:

• His cashflow: If regular or unpredictable as that will influence his step 2 below.
• His method of buying: If it it will be bulk purchase or applying the DCA method
• Emergency funds: This will take care of unexpecting developments that make him to sell his Bitcoin at the time he did not envisage

If these are well taken care of, it becomes easy to start the Bitcoin journey with target and the emotional rest needed to manage the assets properly.

I also think anyone starting his Bitcoin accumulation journey should know that Bitcoin is not a quick get-rich-soon scheme, and also be aware of the volatility part of Bitcoin so that it will enable the person to hold his Bitcoin for the long term, even though there is a drop in Bitcoin price because he/she already knows that is one of the characteristics of Bitcoin.

The volatile nature of Bitcoin is not much of a big issue for long term investment. No matter how the spike is, you can buy and hold because before starting, you believe in Bitcoin to appreciate over time. Besides, you will not be in a rush to sell before the market drops or buy before the market rise, you already budgeted the funds for investment.

What I mean is that before someone begins accumulating Bitcoin, he or she should know that Bitcoin used to reduce in price so that in the process of accumulating Bitcoin, he or she will not sell his or her Bitcoin because of Bitcoin's volatile part.

[Obim34]

We are not talking about those kinds of "taking profits" or figuring out when to take profits matters in this thread, and that is one of those concepts that traders try to impose upon you as if it were some kind of a prerequisite to figure out what your exit strategy is or is going to be.

Most likely if you have have an investment plan that is 4-10 years or more, then you may well can start to address those kind of taking profits matters or converting into other ways of managing your BTC holdings down the road.

And, sure there is nothing wrong with making sure that you are able to exit your investment if you were to need to exit, because no one should invest into anything if they have no way of exiting.. and surely one of the problems can be that there are ongoing attacks upon bitcoin, so that sometimes some of us might have gotten into bitcoin in certain kinds of ways that do not really allow us to get out in the same ways, including that exchanges lock up and close down and various other ways of getting out of BTC might end up drying up.. so it could be a bit concerning regarding knowing whihc kind of ways of liquidating bitcoin are going to be available by the time we enter into a stage where we are no longer accumulating, and we might want to trade and we might want to sell some or all. even though selling all does not seem like a great strategy either .. especially if someone might have spent 4-10 years or longer investing into bitcoin, so what would be the purpose of getting out?  to buy a lambo? or maybe some other purpose(s)?

Not stretching on the topic of selling DCA accumulated Bitcoin but considering there is always an exit point for every investors.

so that sometimes some of us might have gotten into bitcoin in certain kinds of ways that do not really allow us to get out in the same ways, including that exchanges lock up and close down and various other ways of getting out of BTC might end up drying up..

It is not considered appropriate holding your investment on any exchange for a long time, yes the amount you DCA might be small to move to a hardware wallet or to your electrium wallet which is why after much accumulation then all your Bitcoin should be moved down there. These exchanges are easily compromised by hackers and their long continuity to exist can not even be sworn on.

You're still thinking short term and in such cases you should just take your profit like every normal trader but when you talk of accumulation of btc and using dca as a risk proof investment strategy then you start seeing the market in a different light and even when you've made some profit you'll tend to view it as an opportunity to invest more

Think of it as a business strategy,how many big cooperations or firms do you ever see their investors or shareholders sell their shares simply because the stock value is increasing and they've made considerable profit?? Of course none or rather very few instead they double down on it and invest more because the profit only signals that they're on the right trend and the business is likely to grow and amass even more profit

Why take profit when you can hold out for a couple more years,I think unless you have a critical life challenge that inevitably requires you to sell out all you ow,I seriously think this a wrong and hurtful approach to investment

You said we'll, but in my context I never talked about a short term investment using the word Mature should indicate I am speaking in relative to a long term investment.
Even the process of accumulating through DCAing usually takes a longer time to get enough which might yet not be enough. Every investors has his own budget which will take certain number of years to accomplish, maybe a 4yrs accumulation plan or 6yrs depending on the investor and how he sees the market.

[Salahmu]

If you took profit once, or it is not a regular thing, then it is okay to take profit. Do not just make it a regular thing because that is where it will affect the profit you are supposed to make from DCaing which should be the increase of your portfolio. Also if you are to make a withdrawal from what you have been DCAing, try so that it is not a very big amount that affects or takes out amount of money equal to what you will DCA for like three weeks. What I mean is, if you must withdraw, there should be a limit to what you plan to withdraw from what you are DCAing.

Sometimes taking the profits ones could be the beginning of your investment downfall because I have seen were someone who invested on Bitcoin and when he realized that his investment has gotten some profits so he now decided to sell off all the accumulated Bitcoin in other to have a good profits but with the intention of buying it immediately the price drops a little but actually little did he realize that he had made the greatest mistake on his investment because after selling his Bitcoin the price has increased so much that if he decided to buy the same amount he had bought before the number of Bitcoin he will get will not be the same even joining with the profits he had gotten he will not be able to get that amount, so he became disoriented that if he had known he would have not taking this decision and now a little profits he was chasing has cost him not only his investment but also with the chance of getting back to the investment because of the price increament of Bitcoin. So actually my point is that in as much as you feel that taking profits ones from your investment is good but however you should also think about impossibility of getting back to the Bitcoin accumulation after selling your investment.

That is quite a common problem of bitcoin in terms of guys who sell way too much too soon and then they become bitter.. and they keep waiting for dips that do not end up coming, even though they might have thought that they were smarter than everyone else by selling and making good profits.

You are right @Jay is actually very common to most investors by always looking for a possible way to outsmart other investors by taking advantage of the market, perhaps that mindset of always intending to sell there Bitcoin because of the little profits they will actually make with the intention of buying back again has really crumbled so many investment so perhaps the earlier most investors realize the risk of selling there accumulated Bitcoin for a little profits the better for them because indirectly that method is like someone that's gambling with his investment.

One of the things I realized about most investors is that no matter there decision about there investment they easily get distracted from there investment decision if they see other investor who tries other ways of taking advantage of the market and it worked for them at first so perhaps to those investors that are looking for means to outsmart the market will easily follow that narrative and at last they will get cut up at the middle.

[Troytech]

ONLY you are in a position to figure out your exact balances, and usually you want to put enough into bitcoin so that you won't feel bad if the BTC price goes up since you would have already put enough in that you feel that you have a bit of a stake, yet the balance goes in the other direction too, so as I already mentioned your first full cycle, and maybe even longer could be difficult in terms of getting a kind of balance that is comfortable for you, and you can ONLY do so much about your income and your expenses.. so you have to work with what you have, and even if you believe that you do not have a lot of income, you have to still realize that you are ahead of a lot of people in the world who still do not either appreciate bitcoin and they have not taken actions to invest into it... so sometimes a fairly modest investment approach can pay off quite well while you are still figuring things out.  

Remember just a few days ago, you said that you ONLY just made your first $10 purchase, so that already put you ahead of those who had not taken any actions, so maybe if you just consider whatever you are doing is making progress so long as you don't overdo it and cause yourself to get reckt because you over did it.. and at the same time, you seem to be still studying about the plusses and minuses of bitcoin, so there should be nothing wrong with starting out with a relatively modest investment approach until you get your bearings.

I'm still trying to learn my way around bitcoin, but as you advised I think I should keep it basic for now and keep investing into bitcoin with dca, but I just have this feeling that i should also invest as much as I can cause for now that I have the advantage that I can't have any major challenge that causes me to spend money and I've already built up quite a source of income although from multiple places, your last example 8, I just want to see if I can fit myself in his shoes and follow out that plan, for now I don't think I can map out any major strategy for myself since I'll still be mixing things up and trying to find out which pattern of accumulation suits me best based on my income and expenses and also my back up funds cause I don't think I would love situation where the market is now experiencing a major dip I can't take advantage of. My basic would just be dca then I'll just  use dip buys  strategies for now . So I can I have a balance between how much I'm investing and also so I can have control In other not to act too reckless or quick around putting money In. Like you said major mistakes early investors make is putting themselves in a situation where they have to dip their hands in the investment or sell at a major dip with fear of loss and end up regretting as price recovers, I'm also human and I can see myself in such situations if I'm not careful about it. I'm thankful for this advice.

I plan on building up my emergency funds from saving from my monthly income, since this is more reliable, and since you've been stressing on the importance of having a backup fund in case of market opportunities like major dips, this could also favour me if I buy at such opportunities. But if I can't meet up with this high strategies, cause I still think it might take a while for me to fully understand the way the market works, would you consider it wise, I buy majorly at dips and dca regularly for safety and to insure I buy at all times than to lump sum without giving a kind of spice to it.

Ultimately the choices is yours, and you are completely responsible for whatever you do, and we are largely just brainstorming in these kinds of threads because no one is going to help you if you screw up and we are not going to take blame if you follow what we suggest and then it does not end up working out for you.  

Many of us will take from our own experiences, and for me, when I first got into bitcoin, I set up a 6 month budget.  I added up  all the cash that I had available that I was authorizing to go into bitcoin, and I also added up my expected cashflow for those upcoming next six months.  One of my advantages is that I had already been investing for more than 20 years when I got into bitcoin, so I pretty much already had my emergency fund in place.

So what i am suggesting is that if you establish your budget, and let's say that you have figured out that you have around $400 to $800 in income every month, and you have around $300 in expenses every month, you have about $600 saved up, and so you could try to figure out what to do from there, once you have all the numbers. So if you already know that your income exceeds your expenses by between $100 and $500 per month depending on your income, and then you know that you have about 2 months of an emergency fund, so you should probably build it up between 3-6, but you can invest in bitcoin and beef up your emergency fund at the same time.  

You can kind of figure out if you are buying BTC every week or if you are going to wait for certain times in the month, and if you figure out your 6 months budget for bitcoin the you could divide it by 26 or maybe you divide it by 13 so then you have a budget every week or every two weeks.  If you do not end up lump summing to get started, then you could divide part of your weekly/biweekly allowance into DCA and buying on dips... maybe you decide that no  matter what you will buy $10 per week DCA, and then you will build up your buying on dip fund until it gets to $100 or $200 and then once it reaches certain sizes, then you might increase your weekly DCA because you have more in reserve for buying on dips and you could also use your emergency fund as such a measure. Once your emergency fund reaches a certain size, then maybe you decide to increase your DCA by a certain size and/or your buying on dip fund.

You could have situations in which some months you have some extra money come in or some expenses that get greatly reduced, and you can decide which bucket to put that extra money into, and the more you practice, the more it will start to become naturally to you which category to put it into, and maybe after you get up to a certain amount of BTC, whether $500 or $1k, then you figure out some private wallet to move it into... hardware wallets (such as the Trezor) are good, but maybe you want to make sure you get up to a certain amount of BTC before you buy a hardware wallet.

So maybe after 3-4 months you end up figuring out or even receiving an extra $600, and maybe the default would be to divide it into 3 and invest 1/3 into DCA, lump sum and buy on dips, but if your emergency fund is not quite bolstered, then maybe you would decide to divide it into 4 parts... there are a lot of possibilities and no real right answers, even though some ways of going about it are probably preferred to others, and you likely will make some mistakes along the way, but if they are just small mistakes it is easier to learn and recover, but if you end up making some BIG mistakes, like you decide to just throw everything into bitcoin, and then you end up having an emergency and/or the BTC price moves against you, then you could end up losing all or most of your investment, and sometimes guys will lose several years worth of investing and putting systems into place because they make big mistakes and they cannot figure out how to get out of the mistake and then they end up doubling down or some other kind of gambling behavior rather than just accepting that losses along the way will sometimes happen.

With this proper explanation I just feel like going back to my book to look at things properly and prepare, cause at the end of the day I'm the one bearing the risk and if I don't have a good plan it might end up been too difficult for me and as much as I'll hate to admit I'm a little scared as a beginner just didn't want anyone to mock or talk down on it.

By spice I mean when lump sum are just done as they should when I'm just buying in large quantities than I normally through dca, this time I use my lump sum amounts to buy only at dips. Or should this emergency fund be for a totally different senerio where a major dip happens that nobody expects and I use that money to take advantage of it.

You should be able to more or less pre-describe the reason that you are holding any extra money in certain funds and in certain ways, but one of the problems when you try to be too smart about it, then sometimes you could end up panicking if you are holding too much cash and waiting for dips that do not end up happening, and then if the BTC price ends up going up 15% or more, then you start to speculate that you should have just been buying all along with it instead of holding it, so these are not easy balances, either way.. As a beginner, you probably should be allocating more towards either buying right away or DCA rather than holding for dips, but I cannot really tell you for sure what is going to pay off the most in the end, because I don't really know either, especially short-term price moves -

...yet if the you spend a certain amount investing and even overinvesting at certain price points, then you might feel that you need to protect yourself by keeping some extra cash on the side to have ready for dips because you had concluded that you already over did it.. and you want to have some extra cash in case there is a dip.. but if you are just starting in bitcoin, it is not very likely that you have bought too much, since you have ONLY so far proclaimed to have had bought $10.. so it would be difficult to perceive to have too much BTC, at least at this point in your BTC investment journey, you don't have any problem of having too much all at once... unless maybe you go and buy $500 and then start to feel stressed about it. then at that point it might be good to have some extra cash available to buy on dips, in case there is a dip from whatever point you bought the $500 worth..  

If waiting for dips could cause panic to me than I think it would be better I divide that waiting money I a ratio of 60/40 where I'll use the 60% for instant lump sums since at the same time we are unable to conclude the short term moves of the market which could be with us or against us, then I'll add that 40% to my emergency funds and wait for major dips even if it would happen once or sometimes not even in a month. but at same time if I wait too long for dips without seeing them in a way I'll still be safe cause I've been accumulating  and it would only help build my emergency funds for even better buying opportunities.

For a start I think I can use two strategies, lump sum and dca since I can manage that for now, is it also possible I lump sum on dips, since its buying with a huge percentage of your capital each month, can I use lump sum in a way that i set it to buy at any dip that occurs in the market while I use dca to be on a safe side since the market is unpredictable?

That sounds mostly reasonable to be combining your practices and then also monitoring how it goes which might allow you to learn from if you are balancing matters out well.  None of us is going to feel comfortable if we run out of cash and the BTC price dips, and maybe we buy but then it keeps dipping, so then we might start to wonder if we structured our dip buys good enough or maybe we can just use DCA if the BTC price keeps dipping and we don't have any extra money at that time..  

The longer that you are in bitcoin, then the more that you should be able to build up your reserves in various places, but even experienced investors might run out of cash or feel that they don't have enough cash to take advantage of dips and then they get concerned about if they might want to sell some and to buy back lower.. which I believe is one of the worst mistakes, even though quite a few people engage in that kind of behaviors, but if you have a regular cashflow coming in, then you can keep buying, but if you had been buying BTC for 4 years and then it dips a lot then you might feel that you are not getting as much advantage from the dip because you are buying lower, but your BTC holdings might have lost 50x or 100x or more than the amount that you ended up being able to buy.. because let's say you had been buying $100 per week of BTC for the last 4 years, so you had invested around $21k and you have more than 1 BTC, and if you are still investing at the same rate, but the BTC price drops 20% from $49k to $39k, then at today's prices you lost around $10k, but you might have been able to buy $100 or maybe $200 worth of bitcoin at those prices, depending on how long the prices stay down at the 20% dip levels.

From what your implying I believe that a having a reserve fund is good incase of dips, tho during long period of accumulation sudden dips that could go up to 20% could seem as a loss, but if my time frame and goal is still far I think, this could be to my advantage if I've had my reserve fund in Check and I'm still dcaing, cause surely bitcoin has surely shown price improvement and I'll end up buying more during those dips since price are low.

You can really never know - especially now there are so many people who believe that we are more likely in the earlier stages of a bull market rather than a bear market or flat, which would justify lump sum and aggressive DCA.. but that could also end up being wrong.  When I got in, there ended up being 2-3 years in which my holdings were mostly not in profits, although since I continued to DCA especially in 2014 (a down year) and 2015 a mostly a flat year, my average cost per BTC came down from $1k to below $500, but then I ended up having some mistakes in 2017 that likely brought my costs back up to $750, and these days I just like to say that my costs per BTC are around $1k, since it is a nice round number. and so i am not sure how much it matters if I say that my holdings are 42x in profits or if I try to use a lower number to say that my holdings are 52x or 62x or more in profits.  At a certain point the profit levels might not matter as much as just figuring out how to plan your maintenance after you have reached the stages in which you feel that you have enough or more than enough BTC, versus if you are in the earlier accumulation stages, you just should probably be focussing on accumulating and not so worried about the price, but instead worried about your keeping yourself from making mistakes in which you lose your accumulation and your building of the your stack..

so lets say if you first set your goal that you want to get 1 million sats, and then you want 2 million, and then you want 5 million and then 10 million and then 21 million and then 50 million, and etc etc.. and maybe it won't really matter how much you pay for them, as long as you are using extra money that you have and you are not putting yourself into any bad money situation while you continue to build your stack size... after you are doing these things for a while, then you can readjust your goals and rethink about where you are at, where you came from and where you want to go.

For now I think coming with a investment journal to properly track myself, it might seem a bit lame but I'm not very good with having numbers on my head, I seriously don't want to bother myself about much calculations for now, since dca offers me safety even if price fluctuates as it likes, even if we have a bull run or a bear market what I should be more focused on now is to keep investing even if small amount while I'm building up emergency funds and bigger capital for my next month, since I'm giving a weekly approach for my dca , I'll wait till next month before I start adding lump sums, cause I love the emotional safety that dca gives me.

You may well feel screwed if the BTC price goes down after you had already invested all $200 and then you don't have anything left, and then you may well feel screwed if BTC prices go up and you still are sitting on some cash.  In the beginning it is almost a no win situation and you just try to balance it out as best as you can, and maybe after a few years investing you start to feel that you have everything in place.  You have figured out your budget and you have some reserves for buying on dips and you have built and established an emergency fund.. and maybe you have figured out some ways in increase your cash flows and to decrease your expenses... but you still are likely going to always have some tensions in terms of trying to figure out how many BTC you need and how long it is going to take to accumulate as many BTC as you believe that you need.. especially if your goals might be to reach some variation of fuck you status...

and if you think about it, there are a lot of people who work 30-40 years or more and they do not reach fuck you status, so if you are able to actually reach it or maybe even reach it in 15-20 years, then you end up both reaching it and cutting the time in half.. and none of that is guaranteed.. You just need to do your best under your own particular circumstances.

I believe in other to avoid that tension I would set a big goal, then start with smaller targets or milestone, this emotion strategy would be good for me to avoid the tension around the time frame for accumulation and how many I would accumulation within that time frame.

For sure, you can set goals and then adjust them along the way... you want to have reachable and aspirational goals, and you likely could even set up some worse case, best case and medium case scenario kinds of projections, and the medium case scenarios should be the most likely to play out, but you still could end up having scenarios where either worse case or best case end up playing out... or sometimes it might appear that a worse or a best case start to play out and then BTC could surpise and bring it back to the middle, and surely once some past events play out, then your future scenarios might end up changing, so you might have an excel spreadsheet that has various scenarios and plans and then you save them and update them and then 1-5 years down the road you might revisit some of your earlier projections to compare with what you were projecting as compared to what ended up playing out.

The approach your teaching is quite very professional cause I can see it involves some real documentation and futuristic thinking. Im really unskilled with creating senerios but I'll try as much as I can to adapt, even if I make little mistakes that makes me not to reach my intended yearly goal, but I think all for the better I'll learn. I'm putting my gain hopes on dca for now , lump sum and dip buys are just if I see opportunities. Until I really get a hang of the market I'll stick around dca.

If you are still living with your parents, then I will assume that you are on the younger side maybe lower 20s or less, and so sometimes it can take a while to both build up your investment portfolio but also to figure out your targets (or how easy or difficult it might be to reach them), so surely you can plan out targets of 1 year, 3 years, 5 year, 10 year and 20 year and maybe even further out and some other variations of timelines, and your actions are going to be much more concrete in the shorter term, but your ability to meet shorter term targets or to adjust them would likely be more measurable in the short-term in order to potentially keep you on track for the longer term... sometimes it will seem that you are not making very much progress, even if you might be ongoingly making efforts and even reasonably adjusting from time to time...and sometimes large dips can feel as if you might have had been set back 1-3 years or more, but then those perceptions might end up being false perceptions or they could become realized perceptions in which you might make some mistakes that ends up causing losses to your progress and sometimes difficulties to make up at later dates.. which in the BTC world, some BTC hodlers make mistakes of selling too much BTC too early and then they become disgruntled or maybe they end up holding too much on exchanges that get hacked or go into bankrupcy or rug pulling them, so there are various measures that each of us should try to take in order to lessen the impact of our various mistakes along the way.. It is almost inevitable that we are going to make various mistakes along the way.

I think for now I'll just follow up a bit till I can grab what your saying fully, I'll try my best to keep following on this thread. I can see a I've got a lot to learn here. What kind of waller is best for holding, I just keep mine on Binance, do u think its okay?. If mistakes are inevitable, I'll make sure my back up funds are always in place.

You probably need to research, including other threads.  

I think that up to $500 to $1k it can be o.k. to keep your funds on exchanges, and a lot of people recommend Electrum as a private wallet.... but I am not used to that one.  Bluewallet is good, but still that is a hot wallet and so you might be careful in terms of keeping too many funds on your phone, or maybe something like Trezor.. once you get up in the area of a couple thousand dollars it would be good to have a hardware device as your wallet, but you still have to learn about what you want and what are the trade offs and the need to be careful about how much of your BTC you hold with 3rd parties rather than keeping your own.. In the long run, you probably would want to have 90% or so of your BTC in your own various forms of self-custody rather than being held on or through 3rd party services.

I'll do some research about wallet, I'll also try trezor. Thanks

For now I think I would start with dca with my little allowance and then use my monthly income to set up a system that can generate a substantial amount for investment. Cause if poor income and management could be a deficiency in accumulation where I might have to dip my hand back in my portfolio then I guess my first real move here should be to fix that and get my finance in order. What do you think about this.

You are describing the creation and building of an emergency fund, which surely could be life saving (and save your investment) .. and having an emergency fund will tend to give a lot of peace of mind when the BTC price starts to move against you.. which it will do from time to time.. especially the longer that you are involved in investing in it and building the size of your BTC stash.

By the way, you mentioned at least 2 bitcoin, but then you are also talking about investment numbers that would likely be quite lower than the amounts needed to reach 2 bitcoin, and I am not even necessarily suggesting that you need to get to 2 bitcoin, but if you consider that $100 per week would be $5,200 over 1 year and $52k over 10 years, you would almost need to be crazy to believe that there are very high chances that you would be able to accumulate BTC for less than $52k by averaging out your buys over the next 10 years, and that is why I had been saying that even $200 per week would be optimistic for reaching 1 BTC even with $104k invested over 10 years, so if you expect to reach 2 bitcoin or more in 10 years, then you would likely need to average around $400 per week over 10 years, and there is a bit of a presumption that you would be able to do that from the start since it is more likely that $400 per week now is going to get you more BTC than it is going to get you 10 years from now... and surely you are not even hinting at being able to have that kind of money to be able to invest now or to consistently be able to do it without putting yourself into a pickle in which you end up not having an emergency fund. ...

Surely, I am not going to tell you to NOT have high goals because sometimes goals can be reached and/or exceeded, and surely even with my getting involved in bitcoin in 2013, I had created goals for myself to be able to achieve in the next 6 months and then maybe to extend beyond the 6 months, and I was able to exceed my goals, but that was mainly because the cost per BTC was going down during that time, rather than up... so then my expectation of my average cost per BTC ended up going down because I was mostly anticipating how many bitcoins (or satoshis) I would be able to get for a certain amount of cashflow that I expected to spend over the first 6 months and then extending into the second 6 months, and each time adjusting some of my expectations based on expected dollar cashflows and also considering best case and worse case scenarios, and even though falling prices did cause worse case scenarios in terms of how the value of my BTC holdings was then going, but it created best case scenarios for being able to accumulate more BTC (as perverted as that kind of perspective seems).. because people can really call you names when you keep investing into something that is continuously loosing value (or at least its spot price continued to go down throughout 2014 and even into 2015, even though the very end of 2015 did end up being an UP year)..

I think I would keep my investment personal in other not to get your same experience and I would unwise not to take not of the fact that my goal is too high for now especially since I'm not having the capital in Check and if bad situation occurs on the long run I'd find my self in panic. I'll start small but I would still try my best to build my income to match the target. I know its possible but I still have to make sure I have a good plan.

I only mention how much commitment it would take to get to 2 BTC, which is a lot of money compared to investing $10, so there is no problem in terms of keeping your specifics personal, but if we start to talk about how many BTC that you might want to get in a certain amount of time, then we should attempt to be realistic about what kind of numbers (investing amounts) that you would need to meet in order to reach those kinds of numbers.  There is also nothing wrong with having lofty expectations (aspirational goals), but even folks with aspirational goals might also need to have more realistic goals that line up with what they are actually doing..and maybe it is not that BIG of a deal if you have some that are more easily reachable and others that are more difficult and some others that are not as likely but there could be some scenarios in which the further out ones could end up being reached or close to being reached and when they get closer, then the path towards reaching them might become more clear too.. so it likely does not hurt to make those kinds of plans and then revisit them from time to time.

Okay I was thinking my approach was wrong by having high expectations, cause my initial plan and capital at hand based on my calculations and my expectations beign meet I could be able to accumulate at least half a bitcoin this year of the price to remain in the range of 40k-50k but since I don't know what to expect, I wanted to work with the approach of the guy from example 8 where I'll invest like half the money I dca and half in strategies lump sum since I intend to lump sum at dips too, but all this are been calculated based on the market initials and we don't know what to expect from bitcoin this year.

[mamesso]

I also think anyone starting his Bitcoin accumulation journey should know that Bitcoin is not a quick get-rich-soon scheme, and also be aware of the volatility part of Bitcoin so that it will enable the person to hold his Bitcoin for the long term, even though there is a drop in Bitcoin price because he/she already knows that is one of the characteristics of Bitcoin.

The presence of a Bitcoin ETF certainly shows that Bitcoin is increasingly being considered as a class asset for investment. Despite all the risks inherent with Bitcoin, its price has experienced a rapid increase with the total market capitalization skyrocketing.
Yes, the nature of Bitcoin is very speculative so it is not suitable as a get-rich-quick scheme. However, from the facts that have occurred in the Bitcoin market recently, investors who dared to take investment risks at an early stage have made large profits from the surge that occurred. Investors must withstand all the pressure that occurs in the market, the price decline is only a preparation for the spike before the halving, after the Halving takes place Bitcoin will reach a higher price than it is currently trading. So holding Bitcoin in the long term is a very good strategy, especially as it is almost entering the four yearly period.

[Miles2006]

Apart from that, if they are beginners, they should not be too selfish to buy aggressively because they need to strengthen their mentality when the price of Bitcoin changes suddenly. Because beginners often panic when prices fall because they are not experienced enough to deal with situations when prices fall drastically. For that reason, I agree with all the points which deserve to be a priority for us in accumulating Bitcoin for long-term investment.

I doubt that the justification for being aggressive has to do with whether someone is a beginner or not, and maybe the beginner has to be more careful about his level of aggressiveness, and since presumptively he would be in the earlier stages of learning about his investment, but as the person gets more and more systems in place and learns about his investment (and his cashflow situation) he thereby would be in a better position to increase his aggressiveness level.

I understand your point sir, the aggressive situation when dealing with bitcoin investment for beginners is not advisable and if focusing on buying only and forgetting to learn at that early stage the person might end up with another story, sometimes newbies focus more on buying aggressively cause of the profit and wanting to reach their target, although it's best for everyone to have a target when investing but not without  the investment knowledge, for example when I bought my first coin I started with just a little amount and as times goes each week I keep increasing gradually.
In terms of learning about investment this forum is the best place to learn about bitcoin and investing just like I have benefited more from other members in the forum concerning investing.

[ultrloa]

Apart from that, if they are beginners, they should not be too selfish to buy aggressively because they need to strengthen their mentality when the price of Bitcoin changes suddenly. Because beginners often panic when prices fall because they are not experienced enough to deal with situations when prices fall drastically. For that reason, I agree with all the points which deserve to be a priority for us in accumulating Bitcoin for long-term investment.

I doubt that the justification for being aggressive has to do with whether someone is a beginner or not, and maybe the beginner has to be more careful about his level of aggressiveness, and since presumptively he would be in the earlier stages of learning about his investment, but as the person gets more and more systems in place and learns about his investment (and his cashflow situation) he thereby would be in a better position to increase his aggressiveness level.

I understand your point sir, the aggressive situation when dealing with bitcoin investment for beginners is not advisable and if focusing on buying only and forgetting to learn at that early stage the person might end up with another story, sometimes newbies focus more on buying aggressively cause of the profit and wanting to reach their target, although it's best for everyone to have a target when investing but not without  the investment knowledge, for example when I bought my first coin I started with just a little amount and as times goes each week I keep increasing gradually.
In terms of learning about investment this forum is the best place to learn about bitcoin and investing just like I have benefited more from other members in the forum concerning investing.

That's one of the mistake they commit since for rushing all things without having proper knowledge can brought them on worst situation that they didn't expect to happen.

So before starting up acquiring bitcoin as for their investment maybe much better for them if they invest sometime to learn a lot of information about this especially how volatile is the market then also the bitcoin price history so that they can get an idea and create some helpful strategy that can help them on their trades.

But for sure they can learn a lot of this thru what they can experience so everything there still tolerable especially if they commit mistake at their first buy. What's really important their is to learn a lesson regarding those decisions they do and use it as tool to make a good trading decision and became successful trader later on.

[Tmoonz]

Just like what @JJG said in his earlier post that, there are fours ways which an investor should prepare on when he wants to start his bitcoin accumulation, which are having plans to buy on the dip, lump summing and the superior of all the DCA method, and the fourth one is your emergency funds that will cover 3-6 months duration. The emergency funds is more important because if you don't have it ready, there is no way that you will succeed in your bitcoin accumulation journey. You will end up ruining it because you don't have what you will fall back on to use, when the unexpected and unforeseen challenges arises, which must be taken care of. This is why I make my emergency funds my priority as I am investing using the three methods to accumulate bitcoin depending on the rate of my cash inflow at that moment.

You are talking about taking profit while Dcaing, it means that you are killing the purpose of Dcaing, which is to increase your bitcoin portfolio during your accumulation stage. It is good to aim at long term profit and not short term profit so that you don't end up making wrong decisions that will lead to you regretting your actions through out the rest of your life. This is because there are mistakes that we take that we might not be able to correct anymore and they will live with us and it will be too late for us to do anything than regret.

Sell not but hodli and see that your investment is worth hodling for the future.

In fact, the four points you have mentioned have become the main calculations for someone when planning an investment in Bitcoin. let's say if someone has passive income every month and they are able to set aside 10% regularly every month then their investment planning will of course not be disturbed because they get passive income every month.

The percentage of income to set aside for Bitcoin investment depends on a lot of factors. It is possible the total income is not even enough for meet the basic needs, in this case what the person need is to work out other sources of income to increase the cashflow before thinking about investing in Bitcoin if the Bitcoin must be safely held for long. Another scenario could be that the income is so big that one can even set aside 50% to invest in Bitcoin and it will not affect the needs of the investor or the emergency funds. Therefore, there is no fixed percentage of funds to set aside for Bitcoin investment rather, it should be calculated keeping in mind the basic needs of the investors as well as the need to set aside some emergency funds.

Apart from that, if they are beginners, they should not be too selfish to buy aggressively because they need to strengthen their mentality when the price of Bitcoin changes suddenly. Because beginners often panic when prices fall because they are not experienced enough to deal with situations when prices fall drastically. For that reason, I agree with all the points which deserve to be a priority for us in accumulating Bitcoin for long-term investment.

The best thing a beginner Bitcoin investor should learn is the DCA method. It is easy to apply and address all the concerns that comes with emotional business like Bitcoin investment. In other words, the DCA approach saves the new Bitcoin investor a lot of energy, time and money because by just adopting the DCA method, the chances of mistakes and regrets have been reduced or possibly eliminated.

I do not think that any of those following this discussion still have doubts in Bitcoin. They believe in Bitcoin and have seen the opportunities it presents that is why they followed this discussion even up to this page 260 with over 5000 messages. When we all believe in Bitcoin already, the challenge then becomes how to go about accumulating and managing the accumulated funds because it is not just enough to buy Bitcoin, but being able to manage it well is equally important.

What we should be more concerned is how to strategize to be able to conveniently buy Bitcoin, hold it and make it a continuous process. That is indeed what the many contributors are emphasizing, giving great ideas that when utilized will address the issue of panic sells, quest for quick profits, FOMO and other challenges that many Bitcoin investors face.

Anyone starting his Bitcoin career will first address key issues such as:

• His cashflow: If regular or unpredictable as that will influence his step 2 below.
• His method of buying: If it it will be bulk purchase or applying the DCA method
• Emergency funds: This will take care of unexpecting developments that make him to sell his Bitcoin at the time he did not envisage

If these are well taken care of, it becomes easy to start the Bitcoin journey with target and the emotional rest needed to manage the assets properly.

I also think anyone starting his Bitcoin accumulation journey should know that Bitcoin is not a quick get-rich-soon scheme, and also be aware of the volatility part of Bitcoin so that it will enable the person to hold his Bitcoin for the long term, even though there is a drop in Bitcoin price because he/she already knows that is one of the characteristics of Bitcoin.

The volatile nature of Bitcoin is not much of a big issue for long term investment. No matter how the spike is, you can buy and hold because before starting, you believe in Bitcoin to appreciate over time. Besides, you will not be in a rush to sell before the market drops or buy before the market rise, you already budgeted the funds for investment.

 Volatile nature of Bitcoin is a big issue even for long time investment, it makes both the new investors who's intention is to learn more in the process and the old investors to experience or maximize FOMO and the fear of doubt and uncertainty Which are very common to investors, volatility should only be seen are a characteristic of Bitcoin to encourage investors not to sell but to hold and accumulate even more regardless the nature of the volatility which has made some investors to sell their investment.

[Hewlet]

I might be wrong and will gladly ascept any correction but I think their should be a time to invest and a time to begin taking profits, one step needs to be attained first before taking the other.

no one makes an investment without the intention of making profit, as a matter of fact, the reason why we are talking about the best way of investing in bitcoin is because we want to make profit out of our investment. It's not like any profit would be guaranteed if you don't invest in the first place.

Now talking about the best time to take off your investment is totally a personal situation because their are lots of factor that could lead one to stop holding on to his bitcoin which might include unplanned event or an opportunity that the individuals feels could give greater returns to his funds. But in an ideal process when all these factors are out of place, it's best to sell off your accumulation after the price of bitcoin has increased above the amount you bought it, using the DCA method puts you at an advantage while selling off your asset because it's almost 100% certain that you will sell it out in a price bigger than the one you bought it.

[Odohu]

I also think anyone starting his Bitcoin accumulation journey should know that Bitcoin is not a quick get-rich-soon scheme, and also be aware of the volatility part of Bitcoin so that it will enable the person to hold his Bitcoin for the long term, even though there is a drop in Bitcoin price because he/she already knows that is one of the characteristics of Bitcoin.

The presence of a Bitcoin ETF certainly shows that Bitcoin is increasingly being considered as a class asset for investment. Despite all the risks inherent with Bitcoin, its price has experienced a rapid increase with the total market capitalization skyrocketing.

For knowledge and the sake of those who are relatively new to Bitcoin, can you tell us some of the risks that are inherent in Bitcoin with respect to the caption of this thread? This will help us juxtapose the risks of Bitcoin and long term investment to be able to factor same into our decision making in the Bitcoin accumulation journey. Such answers will also help especially the new investors know if it is buying Bitcoin for long term is worth the risk that you are expected to tell us.

I have personally analyzed historic data of Bitcoin as a way of checking the risk factor of Bitcoin investment and possibly comparing same to other investment portfolios. All my findings shows that Bitcoin becomes mainly risky for day traders or short term traders who can be whipped out of the market with a single spike that can gap even their stop loss for those put one. These are the people plagued by the volatility of Bitcoin and all manner of risk that can be envisaged in Bitcoin. Apart from these short term investors, I think Bitcoin is not as risky as people say.

Following the mainstream media, it will be really challenging for new and small investors to join Bitcoin with relax minds because the risk of Bitcoin is what they sell to the public even more than the technology and the job Bitcoin was created to do. So, I understand when some people who might want to conform to the media.

Like I said before, I do not see much risk associated with Bitcoin for long term investors, even though we know that nothing is 100% guaranteed.

[Moreno233]

Volatile nature of Bitcoin is a big issue even for long time investment, it makes both the new investors who's intention is to learn more in the process and the old investors to experience or maximize FOMO and the fear of doubt and uncertainty Which are very common to investors, volatility should only be seen are a characteristic of Bitcoin to encourage investors not to sell but to hold and accumulate even more regardless the nature of the volatility which has made some investors to sell their investment.

Volatility is mainly a problem for short term investors because long time investment does not require you to be looking at the price of Bitcoin regularly. If I start buying Bitcoin today and set my mind that my investment will be held for at least 7years, why will I shake when the price drop sharply? Of course those buying at the dips might FOMO a little when there is market drop, because they will be contemplating the right entry point, but those that are using stable process like DCA are not bothered at all because whether price drop or not, they already set aside some part of money to be invested in Bitcoin at a certain time they have already planned irrespective of the price.

For those who are worried about the volatile nature of Bitcoin, the DCA method is highly recommended as the advantages are enormous. Not only this, there are many other advantages that the DCA method have which is the reason it dominate the discussion here. Many people are already applying it and you can see the testimonies by simply scrolling through the discussion.

[Yaunfitda]

Volatile nature of Bitcoin is a big issue even for long time investment, it makes both the new investors who's intention is to learn more in the process and the old investors to experience or maximize FOMO and the fear of doubt and uncertainty Which are very common to investors, volatility should only be seen are a characteristic of Bitcoin to encourage investors not to sell but to hold and accumulate even more regardless the nature of the volatility which has made some investors to sell their investment.

Volatility is mainly a problem for short term investors because long time investment does not require you to be looking at the price of Bitcoin regularly. If I start buying Bitcoin today and set my mind that my investment will be held for at least 7years, why will I shake when the price drop sharply? Of course those buying at the dips might FOMO a little when there is market drop, because they will be contemplating the right entry point, but those that are using stable process like DCA are not bothered at all because whether price drop or not, they already set aside some part of money to be invested in Bitcoin at a certain time they have already planned irrespective of the price.

And that is the main reason why trading or at least short term of it is not for everyone. We have heard horror stories here specially around 2018 wherein there are members who have experienced a first bull run 2017, thought that it will go like that forever. And they didn't take into account that the next cycle might be worst and that's what happen to the majority of them. They continue to short or day trade, to no success as the market make a U-turn.

For those who are worried about the volatile nature of Bitcoin, the DCA method is highly recommended as the advantages are enormous. Not only this, there are many other advantages that the DCA method have which is the reason it dominate the discussion here. Many people are already applying it and you can see the testimonies by simply scrolling through the discussion.

But for "smart" investors, well, volatility could be a friend to say the least. Not that it will affect us mentality, but used it to challenge us and then be intelligent to buy during the dip, or do the best strategy that is known to us, DCA. And then have the mental toughness to go day in, day out, daily grind or weekly to stack sats as much as we can and then just sell it when the time comes or necessary.