Buy the DIP, and HODL!

[Troytech]

So, the punchline is that due to my errors, my lack of properly keeping enough cash on hand, there remains a certain quantity of my BTC that I ended up selling in the price range between $3,800 to $4,200 that I was not able to buy back.. which probably was around 1-2% of my then BTC stash that was not able to be bought back.. .. except, I suppose later that I probably ended up buying some of that back at higher prices.. but even that is not really clear in terms of whether my BTC stash might have had ended up being forever reduced by 1-2% because of the price point in which they were sold and the fact that BTC prices were near bottom prices.. so ultimately it was a mistake of selling low rather than selling high.. and then never being able buy back at lower than the sell point (except for my mentioning that about half of it did seem to have had been bought back, so instead of shaving off 3-4% of my BTC stash the end result was only 1-2% of my BTC stash having had been shaved off.

this has helped a lot to showing the importance of making proper plan on how we use our reserve funds so we don't necessarily sell our holdings at a cheaper price because what we've set out as our emergency funds isn't enough to meet up with the issue at hand.  For your situation, it's even not all that emergency case since you already hard plans on making such expenses and this is also what happens when we feel that we are waisting away certain funds as it's not bringing us interest and that it's better we invest it into a small project since we've not seen any possibility of an emergency happenjng anytime soon and when it finally happens that we have to fix issues with our funds our holding becomes the most trusted source to fall back on.

Maybe while making plans for our emergency funds, factors like how much from our monthly income will be going into emergency should be properly spelt out and a strict measure regarding the need to never touch it except for real cases of emergency be set out. But then, outside of an unplanned situation, thier might be cases when we have personal projects like marriage or cases when we might have a child coming into the family which directly means that our expenses will become more than what it use to be and a need to necessarily adjust how much we allocate to our DCA, house upkeep and how much should be kept out for emergency situation and this all calls for a meticulous planning process if we don't want to sell our holdings at the wrong time.

As simple and basic as the concept of proper planning and implementation of how much we keep out as our emergency fund and when best to spend it his, it could make a whole difference in terms of how possible it is to keep our holding without touching or selling it until we meet our accumulation goal.

Your very right about this, sometimes it's better we stick with the plan we have made, I his case I guess it was an issue of trying to take the opportunity and buy on that dip but you know thigns never go as planned and he ended up needing the money sooner than he expected although he had already been expecting to make that expense, what I have personally learnt from this is stick to the plan and at times its better we miss some opportunities that come our way than take them.

We could also liken this experience to someone that had a good financial cushion or had good reserves, floats and emergency funds, and a dip happens in bitcoin and he had been buying down the dip with DCA and some lump sums and eventually exhausted his reserves and spend able floats and decided to use some of his emergency funds to still buy hoping to build it back soonest, and unexpectedly an emergency occurs and it lead him to a stae of panic an he had no other asset that he could liquidate(you know its not a bad idea to liquidity lesser grade asset than bitcoin) or any other cash to take from and had no other choice than to sell some portion of his asset to solve such problems. And just imagine he was a beginner and had not acquired much, this could make him sell of everything he had acquired and have to start all over. IMO never use emergency funds for any other thing than to solve emergencies, its our investment insurance.

[1715345569]

1715345569

[Salahmu]

In as much as I like your consistent on Bitcoin investment but one thing you should also consider is the possible fees you could incurred while making a withdrawal on every buy to your wallet, although as investors whose plan is to hold for a very long time it will not be advisable holding your investment on a decentralized exchanges because anything is possible so buying from an exchange and withdrawing to your wallet is actually the best but to be on a safer side in terms the fees of withdrawal you could strategize your withdrawal in such a way that if your accumulation is on a weekly basis you could accumulate for two or three months and withdraw all at once instead withdrawing at every buy which will cost you more.

Keeping Bitcoin on any type of exchange, decentralized or centralized is a big no. We should be wise about where we're keeping our bitcoins. If you have no hardware wallet yet, you should keep it on wallets like Electrum, Bitcoin core, Blue wallet or any of likes that provides your key.
But, wait a minute. Who does keeps his bitcoins on decentralized exchanges? I know that there could be some but really, people still keeping bitcoins there? Because if it's on a DEX, I am sure that it's not a Bitcoin that's on its own network but probably on different chains like wrapped BTC.

Hardly for a beginner to go around using these hardware wallet if they are not much familiar with it talk more of using a decentralized wallet or exchange.

Mate, I think you are wrong here; all bitcoin wallets are decentralized because only you have ownership of your private key, which you use to control your bitcoin. If you advise a newbie not to use a decentralized wallet to hold his bitcoin, that means you are indirectly telling that newbie to make use of a centralized wallet to hold his bitcoin.

Your argument here is pointless. Didn't you see the part where i mentioned that it is a first step for beginners to buy from a centralized exchange and after learning about security measure for a wallet then they can transfer their investment over there. Let me ask you a question. Where do you buy your bitcoin? Do you buy from a CEX or DEX? If you tell me you buy from a CEX then you are nothing but a hypocrite, because you made it sound like a Centralized exchange is a bad area for bitcoin to pass through.

Oh perhaps i have been too aggressive here Let me make my point more clear and address this concern. For a beginner its more important to understand between security and ease of use. So my suggestions  was;

A beginner should consider a trusted centralized exchange (at least some level of trust generally) with strong security to get started and learn how to buy deposit and then buy bitcoin. Gradually as they become more comfortable they can learn security measure and how they can secure their holding s in decentralized wallet for total control over their bitcoin.

Al last its all about finding the right balance between security and easy to use exchanges or wallet regardless of our level of experiences as an investor.

It is just funny for you to say that my view is pointless. There is no way I said that buying bitcoin on a centralized exchange is bad for newbies or those who have been in bitcoin for years. You said in your comment that it will be hard for a newbie to make use of a decentralized wallet. I want to ask you a question: What do you understand by a decentralized wallet? 

Well without stressing this particular conversation too much I think what @Dailyscript is trying to state is that for those beginners who are just starting there investment it will be wise for them to maintain there investment on the centralized exchange in other to have a good understanding about the platform and how to secure there wallet before moving it to there private wallet. I think there is sense in what he is saying and I never realized it before posting about it earlier, so actually in as much as holding our Bitcoin is not advisable on Centralized exchanges but for the safety of the beginners we shouldn't expect them to buy and move there Bitcoin to there personal wallet immediately when they have no idea about what it takes to secure there personal wallet, so like @Dailyscript observed, at first they should hold it in the CEX till they are more knowledgeable on how to secure there private wallet.

[Hewlet]

Many times emergency funds are form of cash that are very liquid but they may well not be earning any interest or gaining value, so there could be some sense that those funds are neither working for you and that they might be losing  value as fast as you can build them up, so in that sense, you might have quite a bit of hesitancy in holding very much value in cash and/or cash equivalents,

I was considering a possibility where we can store our emergency funds in other asset that could retain the value we put in it, since generally cash suffers from inflation and you know there are possibilities that our emergency funds would not be used in very long period of time and could sit around for up to 6 months without been used to do anything especially if we follow a strict rule to only touch it when we have a real emergency, but the flaw to this plan IMO would be that we expect our emergency fund to be in some way very readily available when we want to use or when we encounter an emergency cause this could potentially be a huge problem for us if our emergency fund is not around when we want it. And secondly I think there are very few asset that we can consider to be very stable to hold value in such short term and how easily it would be for us to convert back to fait if we need it, this is just an idea so I would like to hear your opinion on it or if it should be written off entirely?

No that's a bad idea. The reason for having an emergency fund is so that we can have quick access to cash during an emergency. The availability of the cash during pressing times is what makes it an emergency fund. I understand that you are looking for a way so that inflation wont meet up with the cash kept for emergency funds since it looks somehow like savings in general. But think of it the other way, cash value is more stable and wont experience sudden drops like other assets would do.

this makes a whole lot of sense. In a real practical situation, emergency funds needs to be in fiat form if it's going to be useful because in most cases, investing part of your emergency fund into a business or another viable asset will entail you're going to sell off the business to meet the emergency situation which for me is a bad strategy that's bent on frustrating you and iether put your business in big loss and and possibly damage your reputation as someone that's not capable of running an effective business.

Let's say you have an emergency fund of about $1k at the end of the year and because you feel it's just laying dormant, you decide to shift like $600 into a business which is supposed to yield some incentives over a period of time and then an emergency situation comes in and you need to sort it out with at least $900 within a short period of time. Do you think you will be able to sell out your business the same amount you used in investing into it? The chances are damn slim and the reality is that you have to pass through series of stress to see someone that's in need of what you've invested part of the money into and that at the same time have the fiat all complete to enable you sort out your issues. And what that will do to you is that you might end up selling your business at a low price that's as low as $300 or lesser and because you might not want to go into such loss, you've indirectly exposed your holding to being tampered with.

Instead of what you plan, retain your cash for emergencies funds and see if you can diversify with percentage of cash that you put inside bitcoin investment (maybe 5-10% ) out of the 30% to invest in short term assets that might offer slightly higher or average returns which may be used to support the emergency fund and foster the rate at which you accumulate your bitcoin. This way you can maintain a stable financial income flow while buying more bitcoin.

and this is also a better option. It's even good that you have a chunk of funds you can take advantage of during any possible dip so you can stack up more. The thing is that over diversification of our funds into several things can become some sort of distraction is disguise and so it's only best we focused on what we're sure is working and put in as much resource as we have into it. Probably when you've attained a status where you can boldly work out into iether to upgrading your life or possibly executing a project you've longed for then it's now okay to push your profits into them.

[teamsherry]

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There is nothing really wrong with those kinds of conclusions - except for a realization that emergency funds tend to be denominated in the fiat in which bills are paid because assets can suffer liquidity events at the same time, then you are fucked  because everything might be going down in value at the same time, and you are forced to sell some things because you did not have enough cash.  Think about what happened March 2020 as an extreme example, but it is still an example of something that could happen and you would not want to be caught on the wrong side in which you had to sell either your assets and/or your bitcoin at a time that they had just taken around a 50% or more draw down in a day and with no clarity in sight when they were going to stop going down.....

so sometimes if you are going to end up wanting to be cute in regards to making sure that your various kinds of emergency funds, reserves and/or float is working for you while in storage for a long time, is that you would still have the first 3 months or so in cash or cash equivalents that are easy to draw upon, maybe in a combination of physical, in banks, in other kinds of accounts that may or may not be interest bearing.

When shit hits the fan, you have to largely be prepared already in advance to be able to weather through the situation... maybe the bad situation only lasts a month or two, or maybe it ends up lasting several months, even 6 months or more, and so there might be some point in which you are also looking at your bitcoin as one of your forms of liquidity that you need something and you are running out of resources, and surely there could be cases in which you are in that situation, and maybe there could have had been ways that you could have better protected yourself.

Maybe I can give my own example?

Through 2017 and early 2018, I had been planning for some construction that I knew was going to cost a certain amount that was probably equal to 3-5% of the value of my then BTC stash, and so I had set aside about half of the expenses that I had calculated were boint to come due in January, February, March and April 2019.

As we likely realize throughout 2018, BTC spot prices went down from around $19,666 and down to a low of around $3,124, so throughout 2018, I was buying BTC on the way down with my designated cash and keeping in mind my construction cost bills were coming due in early 2019 - yet what ended up happening is there were higher costs than expected and the bills started coming due in October, November and December 2018, so really a few months earlier than expected.. and .. so there was some point around November 2018, that I was getting close to running out of cash from all of my various sources, and I ended up selling around 3.5% of my then BTC holdings (at various prices in the $3,800 to $4,200 range), and maybe over the next several  months I ended up buying back around 50% of what I had sold, yet the overall lesson was that I had made a mistake in properly planning and maintaining enough funds to both cover all of the extra expenses but also to sufficiently prepare for the level of the BTC price drop that ended up playing, which largely likely meant that I was buying back way too much BTC on the way down from $19,666 to $3,124 and I should have had held more of those cash reserves (that were dedicated towards buying bitcoin) in my cash reserves that should have had been dedicated for paying for my construction expense.

So, the punchline is that due to my errors, my lack of properly keeping enough cash on hand, there remains a certain quantity of my BTC that I ended up selling in the price range between $3,800 to $4,200 that I was not able to buy back.. which probably was around 1-2% of my then BTC stash that was not able to be bought back.. .. except, I suppose later that I probably ended up buying some of that back at higher prices.. but even that is not really clear in terms of whether my BTC stash might have had ended up being forever reduced by 1-2% because of the price point in which they were sold and the fact that BTC prices were near bottom prices.. so ultimately it was a mistake of selling low rather than selling high.. and then never being able buy back at lower than the sell point (except for my mentioning that about half of it did seem to have had been bought back, so instead of shaving off 3-4% of my BTC stash the end result was only 1-2% of my BTC stash having had been shaved off.

Thanks for the clarification, emergency funds are far much better to have in cash than I assets, you know I was only thinking that it was smart to save our emergency funds in asset but considering the potential risk that it could bring to our investment.

IMO saving our emergency funds in other asset rather than cash would actually be a misuse of our emergency funds, cause our emergency fund should be readily available to use at any time we have an emergency and your experience just proves it better.

But I already mentioned the idea that the cash in your emergency fund.. perhaps up to 3 months expenses is likely going to suffer from not earning any interest or growing but instead ongoingly shrinking in value, which means that more and more funds will likely have to be added to the emergency funds and if you are lucky (and you don't have any emergency), then you may well end up ongoingly maintaining an emergency fund for 20-30 years or longer that continues to get larger and larger in terms of its nominal dollar value, but none of that money (up to around 3 months of your expenses) is earning any income nor interest, just continuing to debase in its value.. but it is a cost of staying safe and hoping that you actually never have to use it.. but it is also likely keeping your rich too. .because you would also never have to touch your BTC investment (or any of your other investments) at a time that is not completely of your own choosing.

Let's say that you spend 20 years investing into something like BTC at 15% per year, so after 6.67 years, you have invested a year's of your income, and so after 20 years you have invested around 3x of your yearly income, but at the same time you have continued to maintain at least 3 months of an emergency fund and sometimes you would have an extra 6-18 months of reserves and float, and so much of that cash was not really working through the last 20 years, but hopefully your bitcoin was working during that time and sufficiently made up for the fact that your various forms of cash were not working.. and you can do these kinds of calculations to figure out whether it was worth it to maintain these various systems including calculating if it would have had been better to use your BTC and/or your other investments as your emergency fund, which surely is a kind of sloppy behavior that we see people do and we see normies get reckt as fuck too and they end up having fun staying poor because they never get ahead and they are always gambling with their money.. so by the time they maybe could have had been to fuck you status, instead they are having to work until they die and they also might not even be able to increase their standard of living because they failed/refused to properly invest and/or to properly protect their investments.

Having cash around isn't such a bad idea as long as it would keep us rich and protect our bitcoin investment( this is due to the fact that our bitcoin portfolio would be doing well if we keep if for longer ), we dont want a situation where by a health challenge uncalled for happens and the only option around is to sell off some of our asset, the thign about emergency is that we don't know when it would happen and we don't know how much expenses it would cost us to solve such a problem, so keeping huge amount of emergency funds or allowing your emergency funds to grow over time is not such a bad idea in general and it worth it even if we have to pay the price of knowing that we would be earning no interest from hoarding fait or keeping such huge cash around us.

But at in a case where we feel we have too much of cash around in our emergency and reserves, would it be wise to put some into bitcoin when, let's say I'm having over a year of emergency funds and I feel I have too much of cash kept lieung around could I put at least 10% of that into bitcoin or keep or working for, like diversifying into some other asset ?

once you have 3 months of cash, you could potentially have some things that are cash equivalents that might take a month or two to cash in, but they hold their value.  When you start to try to keep your emergency fund in too many other kinds of assets, then you surely run the risk of them all being volatile in the same direction, which is opposite of the dollar (or whatever fiat you use), of course, the richer you become, the less you have to worry about these matters because you likely have all kinds of various assets to draw from and you might not be as concerned if some of them are down or up when it comes time for you to use any of them, and you may also be so much in profits that any emergency might only be 1-2% of your total wealth, versus a more poor person who might get completely wiped out from any small emergency.. especially if he does not set asides funds and cushions to protect himself. .and it can take time to both build up those kinds of protection systems and also get into the practice of using them in such a way that you don't get your own false sense of security because you end up depleting them or using them and then when the real emergency comes, you are fucked because you did not maintain your emergency funds, your reserves and/or your cash float properly..

No one is going to hold your hand either, so if you fuck up, it is completely on you to figure out what kind of balances to make to make sure that you are investing aggressively enough while at the same time, making sure that you maintain sound financial practices in the direction of how you maintain your emergency fund, reserves and float.

When you put it this way, I think it would be better to just focus on bitcoin untill the rich effect starts to come in on your portfolio maybe when you have already invested up to four years of your income and a lot of combining effect has come in over the years then we can think of diversifying or having thoughts to put cash in other assets, yeah it would be a he'll of an experience if we encounter an emergency and we don't have any cash around, so it's left for everyone to figure out how much he feel its okay for him to have in his emergency funds( which should be at least 3months of expenses) and also when he feels he woudl be okay to start considering other asset, cause if anyone ends up fucking up he won't be expecting any pity from anyone and all the responsibility still falls on him for his mistake.

[Kwarkam]

Buying bitcoins little by little and withdrawing them to a personal wallet is the most effective way. I've been doing it for a few months and now I think I'm pretty successful even though I only have a few bitcoins at the moment. But I hesitate to buy again when the price of bitcoin becomes too expensive. Do you have an opinion? Unfortunately I just found out about this forum, if I knew about it a long time ago maybe I would have more bitcoins. Even though I've known about bitcoin for a long time, I was hesitant to start buying bitcoin for a long time before finally deciding to start buying it on binance

When Bitcoin prices become more expensive, you may stop for a moment to wait for a correction. You can buy it again when the Bitcoin price drops and accumulate it. That's what investors usually do.

However, when people use the DCA method, they may continue buying Bitcoin until they have decided to stop buying it. They just wait or continue buying Bitcoin, depending on their respective plans.

Many people feel it is too late to buy Bitcoin because some have known about it for a long time. But they just decided to invest the money in Bitcoin. So it all depends on each person's plan to continue buying Bitcoin or postpone it until the Bitcoin price declines or experiences a correction.

Honestly, in my opinion, I think this is baseless. This is based on the assumption that Bitcoin falls back to the price you bought it at or lower, which in reality, as it is now, is not likely... For example, at the beginning of the year Bitcoin was around 42k , and it's climbed up to 70+ during the course of these 4 months, and given all the dips, hasn't quite dipped down to that initial 42k we started  the year with, and then relating this to what you said, if somebody bought Bitcoin at 42k and is waiting for  that dip from 66k to that 42k, is not likely.
And then, you mentioned people feeling it's too late with the reason of knowing it for long.. actually, that should be a core reason to get involved. Having 'known' Bitcoin for however long that 'long' you mentioned is, and seeing the past performances of Bitcoin, that should encourage you to dive in, because you should know that there isn't unlimited units in circulation,  whales are doing their thing and all that. I think knowing about a cryptocurrency for long being a reason not to go into it, should only be in the context of shitcoins,  seeing their past records should be enough to keep you away from them, that's if they last long enough to have a past record long enough to learn from.
I also think that buying Bitcoin, if you're a long-term investor, using DCA or not, should have nothing to do with looking out of dips , and buying Bitcoin should be a 'now' action, in present tense. In some sense, there's no need to wait for corrections, you keep buying in bits however you are able to keep up
Before you go into Bitcoin, know what the fuck it is you're buying, you're buying BITCOIN for crying out loud, have that in mind. Don't take your past experiences with shitcoins to measure btc, sometimes this makes people panic and sell off. You also should know that Bitcoin is a stay longer earn better thing, so you'll streamline your investment funds in a way that you can keep depositing, and not starve off..
You also should know why you're doing Bitcoin.
About the DCA thing. I feel I should say this, don't put in all your money at once in btc, you'll find that you'd trade in no time.  However, the aggression you invest with is all up to you, just do the smart thing

[Kwarkam]

Many times emergency funds are form of cash that are very liquid but they may well not be earning any interest or gaining value, so there could be some sense that those funds are neither working for you and that they might be losing  value as fast as you can build them up, so in that sense, you might have quite a bit of hesitancy in holding very much value in cash and/or cash equivalents,

I was considering a possibility where we can store our emergency funds in other asset that could retain the value we put in it,

There is nothing really wrong with those kinds of conclusions - except for a realization that emergency funds tend to be denominated in the fiat in which bills are paid because assets can suffer liquidity events at the same time, then you are fucked  because everything might be going down in value at the same time, and you are forced to sell some things because you did not have enough cash.  Think about what happened March 2020 as an extreme example, but it is still an example of something that could happen and you would not want to be caught on the wrong side in which you had to sell either your assets and/or your bitcoin at a time that they had just taken around a 50% or more draw down in a day and with no clarity in sight when they were going to stop going down.....

so sometimes if you are going to end up wanting to be cute in regards to making sure that your various kinds of emergency funds, reserves and/or float is working for you while in storage for a long time, is that you would still have the first 3 months or so in cash or cash equivalents that are easy to draw upon, maybe in a combination of physical, in banks, in other kinds of accounts that may or may not be interest bearing.

When shit hits the fan, you have to largely be prepared already in advance to be able to weather through the situation... maybe the bad situation only lasts a month or two, or maybe it ends up lasting several months, even 6 months or more, and so there might be some point in which you are also looking at your bitcoin as one of your forms of liquidity that you need something and you are running out of resources, and surely there could be cases in which you are in that situation, and maybe there could have had been ways that you could have better protected yourself.

Maybe I can give my own example?

Through 2017 and early 2018, I had been planning for some construction that I knew was going to cost a certain amount that was probably equal to 3-5% of the value of my then BTC stash, and so I had set aside about half of the expenses that I had calculated were boint to come due in January, February, March and April 2019.

As we likely realize throughout 2018, BTC spot prices went down from around $19,666 and down to a low of around $3,124, so throughout 2018, I was buying BTC on the way down with my designated cash and keeping in mind my construction cost bills were coming due in early 2019 - yet what ended up happening is there were higher costs than expected and the bills started coming due in October, November and December 2018, so really a few months earlier than expected.. and .. so there was some point around November 2018, that I was getting close to running out of cash from all of my various sources, and I ended up selling around 3.5% of my then BTC holdings (at various prices in the $3,800 to $4,200 range), and maybe over the next several  months I ended up buying back around 50% of what I had sold, yet the overall lesson was that I had made a mistake in properly planning and maintaining enough funds to both cover all of the extra expenses but also to sufficiently prepare for the level of the BTC price drop that ended up playing, which largely likely meant that I was buying back way too much BTC on the way down from $19,666 to $3,124 and I should have had held more of those cash reserves (that were dedicated towards buying bitcoin) in my cash reserves that should have had been dedicated for paying for my construction expense.

So, the punchline is that due to my errors, my lack of properly keeping enough cash on hand, there remains a certain quantity of my BTC that I ended up selling in the price range between $3,800 to $4,200 that I was not able to buy back.. which probably was around 1-2% of my then BTC stash that was not able to be bought back.. .. except, I suppose later that I probably ended up buying some of that back at higher prices.. but even that is not really clear in terms of whether my BTC stash might have had ended up being forever reduced by 1-2% because of the price point in which they were sold and the fact that BTC prices were near bottom prices.. so ultimately it was a mistake of selling low rather than selling high.. and then never being able buy back at lower than the sell point (except for my mentioning that about half of it did seem to have had been bought back, so instead of shaving off 3-4% of my BTC stash the end result was only 1-2% of my BTC stash having had been shaved off.

After taking much thoughts on this and yeah considering the fact that @teamsherry is trying to find a way to keep inflation out of her cash and also your explanation here I don't think it's worth the risk to put your emergency funds in any asset, most asset suffer liquidity and volatility and even the most stable of them like gold can at times also have price fluctuations and Idea of an emergency fund is availability and always ready to use when emergency occurs, like from your experience when you bought much bitcoin because you felt you wouldn't be needing the money in such a short period of time and it wasn't your fault but life happens and things never go as planned and you ended up selling some of your bitcoin to pay for the construction expenses.

And if it was a person still in his accumulation stage that were to be in such situation, it would have resulted in him potentially losing all his asset to pay off such bills.

With all this put together I think your right and it's better to have our emergency funds in cash, we have also been making our decision here based on risk ratio and how certain the an event would occur and when it comes to emergencies we never know when it would happen and we should be always prepared for such since its our insurance that our bitcoin investment stays working and we don't have to touch it prior to its maturity, so certainly having cash reserves around is necessary to our investment, but what's to worry if our bitcoin investment keeps on doing well then it's possible that it could cover for the cash that is suffering inflation and has not been working.

Well said, there's this tosay,  emergency funds are supposed to be readily available and should be as stable as possible,as having them in cash doesn't imply any interests or actual appreciations, but at a fixed price....still to hit the basics and have it readily available, I don't think it's best to have emergency funds in assets, as they can suffer fluctuation and some other factors that can really really bar the readily available thing.  What I'm saying here is, most of the ways to add value to emergency funds (aside literally increasing the amount, by allocation), are really volatile.

[Justbillywitt]

Bitcoin market from 70 thousand dollars suddenly touched 66 thousand dollars, although I lost some money due to this temporary dumping of the market, I still see this change in the market as a big opportunity to make profit by investing. 

The price of Bitcoin naturally and a few days ago was 70 thousand dollars at that time many investors invested and some investors were waiting for the price of Bitcoin to drop a bit. That's why some investors were waiting for the price of Bitcoin to fall because they would have the opportunity to buy more Bitcoins at a relatively low price. Opportunities have arisen for these investors because the market is dumping a bit, at this time if those investors invest in Bitcoin and wait for a few days, they can make good profits in a short period of time. I already have enough amount of investment, then after seeing this temporary dumping of the market, I am planning to add some more amount of investment to my total investment.

I have made a deposit account which I have paid a few days ago, I want to withdraw the money instead of keeping it in the bank and invest in bitcoins because the price of bitcoins is relatively low now. If I invest now and hold for a short period of time, I will still get a good amount of profit from my new investment, which I will not get if I keep the money in the bank. 
Hopefully this will definitely be the best step for me in investing and I will be able to invest all the money in my deposit account and achieve success.

Be careful on how you go about this thing. With your explanation it's seems like you are in for this short time profit hunting in bitcoin investment and you might get hurt along the way depending on the approach you have Decided to use. Yes you are right that money kept in bank will not yield you any profit as compared to when invested in bitcoin. But you have to understand that for you to see substantial profit in bitcoin you don't have to have this short term mentality that you are chasing, using all your deposit in the bank to buy bitcoin and waiting for it to rise a little for you to take profit is not very healthy. What happens if bitcoin doesn't rise within the time frame you were expecting it to rise so you take your Little profit? It simply means that you will sell your bitcoin at a reduced price for you to feed since your expectations were not met. We don't have control over the market to know the exact time it will recover, that's why we invest in it for a long term, so that no matter what happens along the way, we are not bothered because we already have all this planned out, on how to run our life without panicking. Don't use all your savings and invest in bitcoin and hoping to get good profit within days or months, it will backfire you and you won't like the experience. Rather have a long term mentality when investing in bitcoin, and when you are in for the long term, you have to make sure that your emergency funds are in place.

[laijsica]

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There is nothing really wrong with those kinds of conclusions - except for a realization that emergency funds tend to be denominated in the fiat in which bills are paid because assets can suffer liquidity events at the same time, then you are fucked  because everything might be going down in value at the same time, and you are forced to sell some things because you did not have enough cash.  Think about what happened March 2020 as an extreme example, but it is still an example of something that could happen and you would not want to be caught on the wrong side in which you had to sell either your assets and/or your bitcoin at a time that they had just taken around a 50% or more draw down in a day and with no clarity in sight when they were going to stop going down.....

so sometimes if you are going to end up wanting to be cute in regards to making sure that your various kinds of emergency funds, reserves and/or float is working for you while in storage for a long time, is that you would still have the first 3 months or so in cash or cash equivalents that are easy to draw upon, maybe in a combination of physical, in banks, in other kinds of accounts that may or may not be interest bearing.

When shit hits the fan, you have to largely be prepared already in advance to be able to weather through the situation... maybe the bad situation only lasts a month or two, or maybe it ends up lasting several months, even 6 months or more, and so there might be some point in which you are also looking at your bitcoin as one of your forms of liquidity that you need something and you are running out of resources, and surely there could be cases in which you are in that situation, and maybe there could have had been ways that you could have better protected yourself.

Maybe I can give my own example?

Through 2017 and early 2018, I had been planning for some construction that I knew was going to cost a certain amount that was probably equal to 3-5% of the value of my then BTC stash, and so I had set aside about half of the expenses that I had calculated were boint to come due in January, February, March and April 2019.

As we likely realize throughout 2018, BTC spot prices went down from around $19,666 and down to a low of around

Thanks for the clarification, emergency funds are far much better to have in cash than I assets, you know I was only thinking that it was smart to save our emergency funds in asset but considering the potential risk that it could bring to our investment.

IMO saving our emergency funds in other asset rather than cash would actually be a misuse of our emergency funds, cause our emergency fund should be readily available to use at any time we have an emergency and your experience just proves it better.

But I already mentioned the idea that the cash in your emergency fund.. perhaps up to 3 months expenses is likely going to suffer from not earning any interest or growing but instead ongoingly shrinking in value, which means that more and more funds will likely have to be added to the emergency funds and if you are lucky (and you don't have any emergency), then you may well end up ongoingly maintaining an emergency fund for 20-30 years or longer that continues to get larger and larger in terms of its nominal dollar value, but none of that money (up to around 3 months of your expenses) is earning any income nor interest, just continuing to debase in its value.. but it is a cost of staying safe and hoping that you actually never have to use it.. but it is also likely keeping your rich too. .because you would also never have to touch your BTC investment (or any of your other investments) at a time that is not completely of your own choosing.

Let's say that you spend 20 years investing into something like BTC at 15% per year, so after 6.67 years, you have invested a year's of your income, and so after 20 years you have invested around 3x of your yearly income, but at the same time you have continued to maintain at least 3 months of an emergency fund and sometimes you would have an extra 6-18 months of reserves and float, and so much of that cash was not really working through the last 20 years, but hopefully your bitcoin was working during that time and sufficiently made up for the fact that your various forms of cash were not working.. and you can do these kinds of calculations to figure out whether it was worth it to maintain these various systems including calculating if it would have had been better to use your BTC and/or your other investments as your emergency fund, which surely is a kind of sloppy behavior that we see people do and we see normies get reckt as fuck too and they end up having fun staying poor because they never get ahead and they are always gambling with their money.. so by the time they maybe could have had been to fuck you status, instead they are having to work until they die and they also might not even be able to increase their standard of living because they failed/refused to properly invest and/or to properly protect their investments.

Having cash around isn't such a bad idea as long as it would keep us rich and protect our bitcoin investment, we dont want a situation where by a health challenge uncalled gor happens and the only option around is to sell off some of our asset, the thigj about emergency is that we don't know where it would happen and we don't know how much expenses it would cost us to solve such a problem, so keeping huge amount of emergency funds or allowing your emergency funds to grow over time is not such a bad idea in general and it worth it even if we have to pay the price of knowing that we woudl be earning no interest from hoarding fait or keeping such huge cash around us.

But at in a case where we feel we have too much of cash around in our emergency and reserves, would it be wise to put some into bitcoin when, let's say I'm having over a year of emergency funds and I feel I have too much of cash kept lieung around could I put at least 10% of that into bitcoin or keep or working for, like diversifying intonsome other asset ?

I don't think you need to have cash to keep yourself rich. If you have a heavy enough portfolio of bitcoins you have solvency enough. Because since you have invested in Bitcoin and are with it, it is the foundation of your own and family's economy.Your cash flow will determine what you should do even though I think most of these funds don't last more than 2 or 3 months.Your health insurances are by your side, and if you want to do something big on a budget like buying a house or buying a car...I'm saying these are essential but that's not what emergency funds are for.

If you have enough cash, instead of keeping 10%, keep more like 20% to increase the digits in BTC portfolio. Keeping the emergency fund a year seems pointless. If you want to diversify, Bitcoin DCAing strategy is easy for you.

[Winterfrost]

Bitcoin market from 70 thousand dollars suddenly touched 66 thousand dollars, although I lost some money due to this temporary dumping of the market, I still see this change in the market as a big opportunity to make profit by investing. 

The price of Bitcoin naturally and a few days ago was 70 thousand dollars at that time many investors invested and some investors were waiting for the price of Bitcoin to drop a bit. That's why some investors were waiting for the price of Bitcoin to fall because they would have the opportunity to buy more Bitcoins at a relatively low price. Opportunities have arisen for these investors because the market is dumping a bit, at this time if those investors invest in Bitcoin and wait for a few days, they can make good profits in a short period of time. I already have enough amount of investment, then after seeing this temporary dumping of the market, I am planning to add some more amount of investment to my total investment.

I have made a deposit account which I have paid a few days ago, I want to withdraw the money instead of keeping it in the bank and invest in bitcoins because the price of bitcoins is relatively low now. If I invest now and hold for a short period of time, I will still get a good amount of profit from my new investment, which I will not get if I keep the money in the bank. 
Hopefully this will definitely be the best step for me in investing and I will be able to invest all the money in my deposit account and achieve success.

Be careful on how you go about this thing. With your explanation it's seems like you are in for this short time profit hunting in bitcoin investment and you might get hurt along the way depending on the approach you have Decided to use. Yes you are right that money kept in bank will not yield you any profit as compared to when invested in bitcoin. But you have to understand that for you to see substantial profit in bitcoin you don't have to have this short term mentality that you are chasing, using all your deposit in the bank to buy bitcoin and waiting for it to rise a little for you to take profit is not very healthy. What happens if bitcoin doesn't rise within the time frame you were expecting it to rise so you take your Little profit? It simply means that you will sell your bitcoin at a reduced price for you to feed since your expectations were not met. We don't have control over the market to know the exact time it will recover, that's why we invest in it for a long term, so that no matter what happens along the way, we are not bothered because we already have all this planned out, on how to run our life without panicking. Don't use all your savings and invest in bitcoin and hoping to get good profit within days or months, it will backfire you and you won't like the experience. Rather have a long term mentality when investing in bitcoin, and when you are in for the long term, you have to make sure that your emergency funds are in place.

the problem with some folks is that they ignore some key fundamentals which is what's necessary for effective decision making. Once you're looking at investing all your fortune into an asset that's as volatile as Bitcoin without making proper plans and you're expecting an immediate profit within intervals of weeks or few months, it goes to show you don't even know how investing into an asset as Bitcoin works and that you're possibly gambling with your money or possibly in search of anything that's available to double or multiply your funds. Now here is the take; as promising as investing into Bitcoin his, if you go about it with the wrong mentality You're invariably going to face similar fate with folks that Hold on to shit coins and continue waiting for the moment when it will become bullish and it never happens.

For you to effectively invest into Bitcoin and get the necessary profit, you must fix these key variables right;

1. Know the amount you can comfortably allocate into your investment that won't affect your needs
2. Device a stacking methord that works well for you based on your financial strength and this is where using DCA methord, bulk purchase or front loading comes into play
3. Set out an emergency fund that serves as a wall to protect your holding
4. Stay disciplined such that emotions and unnecessary event don't come up to take off your holdings.
5. And then you can work on ensuring that your holding is safe and secured from any intruder or hackers
6. as an important point, take off every sense of ponzi scheme mentality that makes you feel like you can just invest into Bitcoin today and get the expected profit in no time. You've got to be patient so you can stack up a good amount of bitcoin before thinking about making any profit. At the stage of your accumulation, if you're just concerned about making quick profit, then you obviously need to have a rethink.

[Stablexcoin]

and this is also a better option. It's even good that you have a chunk of funds you can take advantage of during any possible dip so you can stack up more. The thing is that over diversification of our funds into several things can become some sort of distraction is disguise and so it's only best we focused on what we're sure is working and put in as much resource as we have into it. Probably when you've attained a status where you can boldly work out into iether to upgrading your life or possibly executing a project you've longed for then it's now okay to push your profits into them.

Don't get it all wrong diversification is good but as much as we a starting to diversify we should not neglect the main investment which is Bitcoin. We know that bitcoin in the long term has a better higher return. If we excessively diversify our fiat into multiple assets we could end up missing out on the significance and important investment (Bitcoin) by spreading our money too thin.

Tracking and managing a large number of investments can be so time-consuming, that the energy that should have been put into a few will not be directed to so many. This can distract an investor from staying informed and making strategic decisions on bitcoin which is the potential strongest investment. However, if well planned we can get a balance (a balance that aligns with your risk tolerance, investment goals, and level of involvement in diversification you're comfortable with). One good way to balance it is to not just diversify for the sake of it. Choose assets, businesses, or any investment with strong fundamentals alongside Bitcoin.

[Tmoonz]

Thanks for the clarification, emergency funds are far much better to have in cash than I assets, you know I was only thinking that it was smart to save our emergency funds in asset but considering the potential risk that it could bring to our investment.

An emergency funds also known as a contingency fund is meant to be a financial safety net or cushion and not as an asset which should be readily available to be accessed when there is need for unforseen circumstances, it should be kept readily available to be use for it's true emergency and should be replenish as soon as possible.

[Dorkylickjj]

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But I already mentioned the idea that the cash in your emergency fund.. perhaps up to 3 months expenses is likely going to suffer from not earning any interest or growing but instead ongoingly shrinking in value, which means that more and more funds will likely have to be added to the emergency funds and if you are lucky (and you don't have any emergency), then you may well end up ongoingly maintaining an emergency fund for 20-30 years or longer that continues to get larger and larger in terms of its nominal dollar value, but none of that money (up to around 3 months of your expenses) is earning any income nor interest, just continuing to debase in its value.. but it is a cost of staying safe and hoping that you actually never have to use it.. but it is also likely keeping your rich too. .because you would also never have to touch your BTC investment (or any of your other investments) at a time that is not completely of your own choosing.

Let's say that you spend 20 years investing into something like BTC at 15% per year, so after 6.67 years, you have invested a year's of your income, and so after 20 years you have invested around 3x of your yearly income, but at the same time you have continued to maintain at least 3 months of an emergency fund and sometimes you would have an extra 6-18 months of reserves and float, and so much of that cash was not really working through the last 20 years, but hopefully your bitcoin was working during that time and sufficiently made up for the fact that your various forms of cash were not working.. and you can do these kinds of calculations to figure out whether it was worth it to maintain these various systems including calculating if it would have had been better to use your BTC and/or your other investments as your emergency fund, which surely is a kind of sloppy behavior that we see people do and we see normies get reckt as fuck too and they end up having fun staying poor because they never get ahead and they are always gambling with their money.. so by the time they maybe could have had been to fuck you status, instead they are having to work until they die and they also might not even be able to increase their standard of living because they failed/refused to properly invest and/or to properly protect their investments.

Having cash around isn't such a bad idea as long as it would keep us rich and protect our bitcoin investment, we dont want a situation where by a health challenge uncalled gor happens and the only option around is to sell off some of our asset, the thigj about emergency is that we don't know where it would happen and we don't know how much expenses it would cost us to solve such a problem, so keeping huge amount of emergency funds or allowing your emergency funds to grow over time is not such a bad idea in general and it worth it even if we have to pay the price of knowing that we woudl be earning no interest from hoarding fait or keeping such huge cash around us.

But at in a case where we feel we have too much of cash around in our emergency and reserves, would it be wise to put some into bitcoin when, let's say I'm having over a year of emergency funds and I feel I have too much of cash kept lieung around could I put at least 10% of that into bitcoin or keep or working for, like diversifying intonsome other asset ?

I don't think you need to have cash to keep yourself rich. If you have a heavy enough portfolio of bitcoins you have solvency enough. Because since you have invested in Bitcoin and are with it, it is the foundation of your own and family's economy.Your cash flow will determine what you should do even though I think most of these funds don't last more than 2 or 3 months.Your health insurances are by your side, and if you want to do something big on a budget like buying a house or buying a car...I'm saying these are essential but that's not what emergency funds are for.

If you have enough cash, instead of keeping 10%, keep more like 20% to increase the digits in BTC portfolio. Keeping the emergency fund a year seems pointless. If you want to diversify, Bitcoin DCAing strategy is easy for you.

You guys fail to read through people's post, he is rather trying to explain how keeping cash and emergency funds around would help your bitcoin portfolio excel since its a guarantee that you won't be touching it or selling sooner than it reaches its maturity, you know we plan on holding bitcoin for up to 4-10 years for minimum( although this should differ based on individual preference and situation, like age and how long they want to keep on accumulating) and up to 20 years if you are even younger, so what would be the guarantee that within this period you won't sell of your holdings, you can't rely on discipline or mere passion to do that, although this are necessary the only way to actually have an insurance that you won't sell of your holdings is by having emergency funds around that would help you in cases that would have lead to you selling of your bitcoin, let's say a health challenge or an accident or my be property damage that you need some money to solve and if you don't have any emergency fund around, you would have no other option than to dip into your bitcoin and if you are still early you might end up selling everything off. Although it's left for everyone to figure our balance for ourselves based on our situation its good to have at least 3 months of emergency funds around as a financial cushioin to be safe.

Ultimately you have to figure out your own balances that relate to the various resources that you might have available to you, how steady is any income and/or expenses that you have and how likely are you going to end up needing the extra funds, because the emergency fund, once you establish it, you should not be dipping into it.  It would just be there and always available.  Of course, since you do not want to our need to dip into your emergency fund, then many of the times if you might have shortages of cash, you would be working with your reserves and your float.. so yeah you gotta figure out how much of those various categories to keep available, and surely the larger your BTC stash gets, then that also might affect the extent that you might feel that you need to be diversified in other assets... whether that be in cash or otherwise.. .. sometimes we could think about various other forms of investments (besides bitcoin) as ways of holding cash in different kinds of ways and to be able to earn interest or yield or dividends or that it might also appreciate but be something other than bitcoin, even though bitcoin and cash will tend to be way more liquid while other forms of assets may well be less liquid, but holding value in various ways will give you options to spend from the less valuable assets prior to touching your bitcoin in the event that you might conclude that bitcoin might be the best of your investments that you don't want to touch or being playing around with until it reaches a certain size in which you would thereby start to authorize yourself  to start to dip into it. within systems and under circumstances that you have already established for yourself, once you get to such an overaccumulation level  that could take 4-10 years or longer just to build your BTC holdings to such levels.

Thanks for clarifying me on this, I think I have to my own calculations and know how much I would be able to give to building up my emergency funds, from your explanation I understand the importance of having emergency funds around to keep our holdings safe from any situation that would potentially lead to selling our bitcoin, once we have our emergency funds up to three months of expense in, we won't be touching it unless it's an actual emergency, so it's more like an investment insurance for our bitcoin.

[I_Anime]

, if you're a long-term investor, using DCA or not, should have nothing to do with looking out of dips , and buying Bitcoin should be a 'now' action, in present tense. In some sense, there's no need to wait for corrections, you keep buying in bits however you are able to keep up

yeah there's no need for one to wait for correction or any dips for thinking of accumulating bitcoin, you can see that the performance of Bitcoin the past months as proven that already, like some folks that bought bitcoin during the price range of $45k and stop accumulating while , waiting for bitcoin to dip to the price range of $30k . But shocking to them  bitcoin didn't moved their way but instead kept on surging till it hit it's new ATH which Is around $73k (which is going to beat later creating a new one ). And they endup missing out big time , instead of using  DCA method or strategy to accumulate more bitcoin while they wait for the dip .

Before you go into Bitcoin, know what the fuck it is you're buying, you're buying BITCOIN for crying out loud, have that in mind. Don't take your past experiences with shitcoins to measure btc, sometimes this makes people panic and sell off. You also should know that Bitcoin is a stay longer earn better thing, so you'll streamline your investment funds in a way that you can keep depositing, and not starve off..
You also should know why you're doing Bitcoin

there's where most newbies are getting it wrong , though most of us here have been given a certain scar by shitcoins back then we where dealing with it . And has effect alot of users confidence in investing in this space that is why there are some folks that will quickly sell there bitcoin whenever there's a slight dip in market thinking that bitcoin won't bounce from that dip. Because of the experience they got from a certain shitcoins that dip with their funds without ever thinking of recovering . That one need to stay away or minimise any urge he or she have in investing in shitcoins. And focus that urge in accumulating more Bitcoin for long-term holding. Like I said earlier bitcoin far different from other coins .

About the DCA thing. I feel I should say this, don't put in all your money at once in btc, you'll find that you'd trade in no time.  However, the aggression you invest with is all up to you, just do the smart thing

well as an investor that have a fixed mindset for holding bitcoin for long-term investment, with some good cashflow may decide to buy large quantity of bitcoin using lump-summing, to give himself a nice start up in his accummulation . Before using DCA to accumulate more Bitcoin , because having a good cashflow he can be able to handle his financial situation without depending or taking his investment as his only option. But someone that don't have much cashflow should focus on using DCA strategy, because if such individual go all in his investment without any backup he may endup selling his investment too early .

[Obim34]

In as much as I like your consistent on Bitcoin investment but one thing you should also consider is the possible fees you could incurred while making a withdrawal on every buy to your wallet, although as investors whose plan is to hold for a very long time it will not be advisable holding your investment on a decentralized exchanges because anything is possible so buying from an exchange and withdrawing to your wallet is actually the best but to be on a safer side in terms the fees of withdrawal you could strategize your withdrawal in such a way that if your accumulation is on a weekly basis you could accumulate for two or three months and withdraw all at once instead withdrawing at every buy which will cost you more.

Keeping Bitcoin on any type of exchange, decentralized or centralized is a big no. We should be wise about where we're keeping our bitcoins. If you have no hardware wallet yet, you should keep it on wallets like Electrum, Bitcoin core, Blue wallet or any of likes that provides your key.
But, wait a minute. Who does keeps his bitcoins on decentralized exchanges? I know that there could be some but really, people still keeping bitcoins there? Because if it's on a DEX, I am sure that it's not a Bitcoin that's on its own network but probably on different chains like wrapped BTC.

Hardly for a beginner to go around using these hardware wallet if they are not much familiar with it talk more of using a decentralized wallet or exchange.

Mate, I think you are wrong here; all bitcoin wallets are decentralized because only you have ownership of your private key, which you use to control your bitcoin. If you advise a newbie not to use a decentralized wallet to hold his bitcoin, that means you are indirectly telling that newbie to make use of a centralized wallet to hold his bitcoin.

Your argument here is pointless. Didn't you see the part where i mentioned that it is a first step for beginners to buy from a centralized exchange and after learning about security measure for a wallet then they can transfer their investment over there. Let me ask you a question. Where do you buy your bitcoin? Do you buy from a CEX or DEX? If you tell me you buy from a CEX then you are nothing but a hypocrite, because you made it sound like a Centralized exchange is a bad area for bitcoin to pass through.

Oh perhaps i have been too aggressive here Let me make my point more clear and address this concern. For a beginner its more important to understand between security and ease of use. So my suggestions  was;

A beginner should consider a trusted centralized exchange (at least some level of trust generally) with strong security to get started and learn how to buy deposit and then buy bitcoin. Gradually as they become more comfortable they can learn security measure and how they can secure their holding s in decentralized wallet for total control over their bitcoin.

Al last its all about finding the right balance between security and easy to use exchanges or wallet regardless of our level of experiences as an investor.

It is just funny for you to say that my view is pointless. There is no way I said that buying bitcoin on a centralized exchange is bad for newbies or those who have been in bitcoin for years. You said in your comment that it will be hard for a newbie to make use of a decentralized wallet. I want to ask you a question: What do you understand by a decentralized wallet?

Well without stressing this particular conversation too much I think what @Dailyscript is trying to state is that for those beginners who are just starting there investment it will be wise for them to maintain there investment on the centralized exchange in other to have a good understanding about the platform and how to secure there wallet before moving it to there private wallet. I think there is sense in what he is saying and I never realized it before posting about it earlier, so actually in as much as holding our Bitcoin is not advisable on Centralized exchanges but for the safety of the beginners we shouldn't expect them to buy and move there Bitcoin to there personal wallet immediately when they have no idea about what it takes to secure there personal wallet, so like @Dailyscript observed, at first they should hold it in the CEX till they are more knowledgeable on how to secure there private wallet.

Not just beginners alone, going on to get a private wallet without proper knowledge is what should be considered risky. Centralized wallets are not considered an appropriate option to hold and store Bitcoin due to hacks and impromptu shutdown of these exchanges. Beginners who DCA are also expected to hold in their centralized wallets as their portfolio is yet too small to transfer into their private wallet in order to lessen the fees.

Thanks for the clarification, emergency funds are far much better to have in cash than I assets, you know I was only thinking that it was smart to save our emergency funds in asset but considering the potential risk that it could bring to our investment.

An emergency funds also known as a contingency fund is meant to be a financial safety net or cushion and not as an asset which should be readily available to be accessed when there is need for unforseen circumstances, it should be kept readily available to be use for it's true emergency and should be replenish as soon as possible.

Since emergencies are unexpected, their should be funds strictly set aside for these unforseen circumstances. Like you said readily available not in any currency other than the country's fiat for easy access to funds.

[Roseline492]

Many times emergency funds are form of cash that are very liquid but they may well not be earning any interest or gaining value, so there could be some sense that those funds are neither working for you and that they might be losing  value as fast as you can build them up, so in that sense, you might have quite a bit of hesitancy in holding very much value in cash and/or cash equivalents,

I was considering a possibility where we can store our emergency funds in other asset that could retain the value we put in it, since generally cash suffers from inflation and you know there are possibilities that our emergency funds would not be used in very long period of time

When you talk about storing your Emergency funds to other assets, if i may asked what other assets could be good to store our Emergency funds?, actually one thing you should also consider is that most assets has a very high inflation and if perhaps you store all your emergency funds for months and you decided to make use of it and realize that 10% has left from your emergency funds, what then will become your emergency funds?. So actually emergency funds shouldn't be regarded as something or funds that could yield profit but in other words is being established for a certain purpose, so storing it on assets is totally not advisable.

[Bravut]

Bitcoin market from 70 thousand dollars suddenly touched 66 thousand dollars, although I lost some money due to this temporary dumping of the market, I still see this change in the market as a big opportunity to make profit by investing. 

The price of Bitcoin naturally and a few days ago was 70 thousand dollars at that time many investors invested and some investors were waiting for the price of Bitcoin to drop a bit. That's why some investors were waiting for the price of Bitcoin to fall because they would have the opportunity to buy more Bitcoins at a relatively low price. Opportunities have arisen for these investors because the market is dumping a bit, at this time if those investors invest in Bitcoin and wait for a few days, they can make good profits in a short period of time. I already have enough amount of investment, then after seeing this temporary dumping of the market, I am planning to add some more amount of investment to my total investment.

I have made a deposit account which I have paid a few days ago, I want to withdraw the money instead of keeping it in the bank and invest in bitcoins because the price of bitcoins is relatively low now. If I invest now and hold for a short period of time, I will still get a good amount of profit from my new investment, which I will not get if I keep the money in the bank. 
Hopefully this will definitely be the best step for me in investing and I will be able to invest all the money in my deposit account and achieve success.

Be careful on how you go about this thing. With your explanation it's seems like you are in for this short time profit hunting in bitcoin investment and you might get hurt along the way depending on the approach you have Decided to use. Yes you are right that money kept in bank will not yield you any profit as compared to when invested in bitcoin. But you have to understand that for you to see substantial profit in bitcoin you don't have to have this short term mentality that you are chasing, using all your deposit in the bank to buy bitcoin and waiting for it to rise a little for you to take profit is not very healthy. What happens if bitcoin doesn't rise within the time frame you were expecting it to rise so you take your Little profit? It simply means that you will sell your bitcoin at a reduced price for you to feed since your expectations were not met. We don't have control over the market to know the exact time it will recover, that's why we invest in it for a long term, so that no matter what happens along the way, we are not bothered because we already have all this planned out, on how to run our life without panicking. Don't use all your savings and invest in bitcoin and hoping to get good profit within days or months, it will backfire you and you won't like the experience. Rather have a long term mentality when investing in bitcoin, and when you are in for the long term, you have to make sure that your emergency funds are in place.

the problem with some folks is that they ignore some key fundamentals which is what's necessary for effective decision making. Once you're looking at investing all your fortune into an asset that's as volatile as Bitcoin without making proper plans and you're expecting an immediate profit within intervals of weeks or few months, it goes to show you don't even know how investing into an asset as Bitcoin works and that you're possibly gambling with your money or possibly in search of anything that's available to double or multiply your funds. Now here is the take; as promising as investing into Bitcoin his, if you go about it with the wrong mentality You're invariably going to face similar fate with folks that Hold on to shit coins and continue waiting for the moment when it will become bullish and it never happens.

For you to effectively invest into Bitcoin and get the necessary profit, you must fix these key variables right;

1. Know the amount you can comfortably allocate into your investment that won't affect your needs
2. Device a stacking methord that works well for you based on your financial strength and this is where using DCA methord, bulk purchase or front loading comes into play
3. Set out an emergency fund that serves as a wall to protect your holding
4. Stay disciplined such that emotions and unnecessary event don't come up to take off your holdings.
5. And then you can work on ensuring that your holding is safe and secured from any intruder or hackers
6. as an important point, take off every sense of ponzi scheme mentality that makes you feel like you can just invest into Bitcoin today and get the expected profit in no time. You've got to be patient so you can stack up a good amount of bitcoin before thinking about making any profit. At the stage of your accumulation, if you're just concerned about making quick profit, then you obviously need to have a rethink.

Well said. Generally everyone is fuel with there own decision and choice about what they do.  This guy is simply neglecting the fact that we only react in a financial market as past success doesn't guarantee same future result.  Like I would always say why most persons loss in the bitcoin market is over expectation, which turns them in to leverage irresponsible and become naive about there investment. Investing in bitcoin within a short-term horizon just to make profits off the market shows a greater height of quick money which isn't sustainable, I won't want anyone to take  such step like investing all your money into bitcoin is bad ( we must always note that we are in a financial market regardless).

What differentiate investors is the discipline, commitment, and risk management applied to there portfolio over time, not being impulsive about getting money quickly off the market but focusing on building a solid portfolio.

In a nutshell know and act within the means of your Risk Tolerance.

[danadc]

In a nutshell know and act within the means of your Risk Tolerance.

We manage our money and we know the risk under which we are exposing ourselves, but we have to see things from the correct point of view, there are no risks in bitcoin, only if you are going to make a quick investment but that does not make sense, if you buy bitcoin is long-term to make the investment as it is, if I buy today, my investment should be to seek benefits in about 3 or 4 years, but since we are so close to the halving it is a gift that we buy now because it may be that It will rise a lot, in 2024 or 2025, but that will rise, there is no doubt about that, so for me right now it is below $73k? It's a dip for me, is bitcoin going down? It is a dip for me, if it goes down more it is another dip for me, you have to buy in stages to then see the benefits.

[Troytech]

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It is just funny for you to say that my view is pointless. There is no way I said that buying bitcoin on a centralized exchange is bad for newbies or those who have been in bitcoin for years. You said in your comment that it will be hard for a newbie to make use of a decentralized wallet. I want to ask you a question: What do you understand by a decentralized wallet? 

Well without stressing this particular conversation too much I think what @Dailyscript is trying to state is that for those beginners who are just starting there investment it will be wise for them to maintain there investment on the centralized exchange in other to have a good understanding about the platform and how to secure there wallet before moving it to there private wallet. I think there is sense in what he is saying and I never realized it before posting about it earlier, so actually in as much as holding our Bitcoin is not advisable on Centralized exchanges but for the safety of the beginners we shouldn't expect them to buy and move there Bitcoin to there personal wallet immediately when they have no idea about what it takes to secure there personal wallet, so like @Dailyscript observed, at first they should hold it in the CEX till they are more knowledgeable on how to secure there private wallet.

I don't think there is any need to argue any further, and @dailyscript everyone is allowed to share his/her opinion, so it's bad saying it's pointless just because he disagrees with your point.

Going straight to the point, it's better for newbies or beginners to start with centralized exchanges cause its more friendly for beginners than decentralized exchanges, it also has lesser to no gas fees attached to buying bitcoin off the exchange and this is good cause most beginners Don have huge capital and can be starting with as little as 10$, so imagine how discouraging it would be for them to be paying for gas everything they have to move their asset to their decentralized wallets, so yeah it's better they state with centralized exchange then when they have accumulated much bitcoin they can now move to a self custodian wallet to store their bitcoin.

[JayJuanGee]

[edited out]

But at in a case where we feel we have too much of cash around in our emergency and reserves, would it be wise to put some into bitcoin when, let's say I'm having over a year of emergency funds and I feel I have too much of cash kept lieung around could I put at least 10% of that into bitcoin or keep or working for, like diversifying into some other asset ?

It seems that the more poor you are (and the fewer the investments that you have), the more important it is to both establish an emergency fund and also to maintain that emergency fund in cash rather than in any other assets.. especially the first at least 3 months of your living expenses.  The thing with richer folks is that they may well have several options, and sure there are a certain amount of rich folks who are not very liquid (meaning that they are not keeping very much of their wealth in cash), but richer folks are still more likely to have options between which asset to sell, so in that regard, they can choose what they believe to be the asset that they value the least, but they also might get stuck with having to sell an asset that is the most liquid to deal with their emergency.. and so I am not going to presume that rich people don't end up fucking up BIG time, but they do tend to have more resources available, and so a person who is not as rich will tend to have to be way more careful not to end up either recking himself or overly ending up; having to dip into their investment because of their failures to properly have enough reserves, and a lot of poor people never end up making hardly any progress in their getting themselves out of holes because they either fail to keep enough emergency funds and reserves (because they are getting too greedy trying to make sure all their capital is "working," and another major kind of mistake that they make will be to either not let their winners ride or to be dipping into their investment way too soon and not letting their investments compound... and surely either of those kinds of BIG mistakes can be made better through better use of emergency funds, and also maintaining and managing reserves and cashfloats.

But I already mentioned the idea that the cash in your emergency fund.. perhaps up to 3 months expenses is likely going to suffer from not earning any interest or growing but instead ongoingly shrinking in value, which means that more and more funds will likely have to be added to the emergency funds and if you are lucky (and you don't have any emergency), then you may well end up ongoingly maintaining an emergency fund for 20-30 years or longer that continues to get larger and larger in terms of its nominal dollar value, but none of that money (up to around 3 months of your expenses) is earning any income nor interest, just continuing to debase in its value.. but it is a cost of staying safe and hoping that you actually never have to use it.. but it is also likely keeping your rich too. .because you would also never have to touch your BTC investment (or any of your other investments) at a time that is not completely of your own choosing.

Let's say that you spend 20 years investing into something like BTC at 15% per year, so after 6.67 years, you have invested a year's of your income, and so after 20 years you have invested around 3x of your yearly income, but at the same time you have continued to maintain at least 3 months of an emergency fund and sometimes you would have an extra 6-18 months of reserves and float, and so much of that cash was not really working through the last 20 years, but hopefully your bitcoin was working during that time and sufficiently made up for the fact that your various forms of cash were not working.. and you can do these kinds of calculations to figure out whether it was worth it to maintain these various systems including calculating if it would have had been better to use your BTC and/or your other investments as your emergency fund, which surely is a kind of sloppy behavior that we see people do and we see normies get reckt as fuck too and they end up having fun staying poor because they never get ahead and they are always gambling with their money.. so by the time they maybe could have had been to fuck you status, instead they are having to work until they die and they also might not even be able to increase their standard of living because they failed/refused to properly invest and/or to properly protect their investments.

Having cash around isn't such a bad idea as long as it would keep us rich and protect our bitcoin investment( this is due to the fact that our bitcoin portfolio would be doing well if we keep if for longer ),

Sometimes we might get too greedy because we want all of our money to be working, and in something like bitcoin, it may well not be really very necessary - even though of course, there are no guarantees - but the essence is to want to stay invested, and if you end up getting very great returns on your bitcoin, then it might not matter  that you had 3 months to 9 months of your expenses continually available in cash and not working for you for 15-20 years or more.

There is something that is empowering about having the extra cash just being available, even though it is likely not only failing to earn interest but it is also likely half of its earlier value after 6-10 years.. and maybe also you are constantly having to add to your emergency fund because the first 5 years, you had kept $1k per month (so between $3k to $6k in your various emergency funds, reserves and float), but the next 5 years, you were no longer feeling comfortable with that amount, so you started to feel that you had to put $2k per month.. so $6k to $12k in the second 5 years.

we dont want a situation where by a health challenge uncalled for happens and the only option around is to sell off some of our asset, the thign about emergency is that we don't know when it would happen and we don't know how much expenses it would cost us to solve such a problem, so keeping huge amount of emergency funds or allowing your emergency funds to grow over time is not such a bad idea in general and it worth it even if we have to pay the price of knowing that we would be earning no interest from hoarding fait or keeping such huge cash around us.

You likely should feel reassured because maybe after 5-10 years investing, you end up getting up to 1-2 years of your income/expenses invested into bitcoin, and so maybe you would not feel as bad to be having all of that unworking capital just sitting around.

Another thing will be that if you try to be too whimpy on your emergency funds and reserves and you realize that the first 5 years, you always were able to get away with $3k to $6k in those funds.. ..  .. but then if the reality of the matter, is that your expenses and various complications in your finances have gone up, and you would be more justified to double your emergency funds and reserves, yet you choose to keep them the same as they had been previously, then no one is going to feel sorry for you, if you end up getting recked because you were being too stingy with your emergency funds/reserves, and you would ONLY have yourself to blame for your own failure/refusal to sufficiently assess your circumstances while your circumstances are likely to be changing from time to time and in need of adjustments that account for such changed circumstances.

But at in a case where we feel we have too much of cash around in our emergency and reserves, would it be wise to put some into bitcoin when, let's say I'm having over a year of emergency funds and I feel I have too much of cash kept lieung around could I put at least 10% of that into bitcoin or keep or working for, like diversifying into some other asset ?

Even guys who have pretty straight forward cashflow and pretty straightforward expenses, they are still likely are going to have some variance in their cashflow and/or what their reserve levels might reach.. so for sure the emergency funds would likely be the least flexible in terms of your never wanting to use them yet they still might have to grow from time to time to account for what is at minimum of 3 months worth of expenses... and  so there would likely be times in which you have a certain amount of emergency funds, a certain amount of reserves a certain amount of float, but also a certain amount that is just extra beyond those categories, so you will want to decide are you going to put that in to bitcoin or into something else... you have more options the more funds that you have, but of course, your own situation should be dictating to you where to put your funds.

Let's say that the guy has already been buying around 10% to 15% of his income in BTC for the past 5 years, and so he has invested close to 3/4 of year of his salary into bitcoin, but bitcoin has performed to such a level that it is about 1.5x his annual income,  He has emergency funds that are about 3 months of his income and various classifications of reserves that are around 4-5 months of his income, so some of his reserves are already assigned for buying BTC on dips and other parts of his reserves is his entertainment fund and another part of his reserves is dedicated to his transportation costs and another part of his reserves have been to save up to buy his daughter a bicycle and another part of his reserves is saving up for a vacation, and another part of his reserves is to pay for the construction of a storage shed, and so if he has extra money coming in then he can figure out if he wants to buy BTC with it or maybe he thinks that he should use some of that extra money to invest into something else...  My point is that the guy's circumstances and priorities should be helping to guide the extent to which his extra money goes into bitcoin or into something else, and if you notice, there can be certain parts of the guy's reserves that have higher priorities than others, and he sometimes, might have to dip from one portion of his reserves and to put it into something else, and he would spend from his reserves before he spent from his emergency fund, since no matter what he does not want his emergency fund to go any lower than 3 months (unless he really had an emergency and he had already spent from his reserves prior to dipping into his emergency fund).

No one is going to tell you if you have enough or too much, even though some practices might be more risky, and maybe you have a list of things that you want, but you only save up for them one item at a time, but you could still end up building up part of your reserves and then at some point redesigning it to something else, and maybe the part of your reserves that are dedicated towards buying BTC on dips have the highest priority, but if your wife does not get the vacation that you told her that you were going to pay for then, you might have to reconsider you priorities.

once you have 3 months of cash, you could potentially have some things that are cash equivalents that might take a month or two to cash in, but they hold their value.  When you start to try to keep your emergency fund in too many other kinds of assets, then you surely run the risk of them all being volatile in the same direction, which is opposite of the dollar (or whatever fiat you use), of course, the richer you become, the less you have to worry about these matters because you likely have all kinds of various assets to draw from and you might not be as concerned if some of them are down or up when it comes time for you to use any of them, and you may also be so much in profits that any emergency might only be 1-2% of your total wealth, versus a more poor person who might get completely wiped out from any small emergency.. especially if he does not set asides funds and cushions to protect himself. .and it can take time to both build up those kinds of protection systems and also get into the practice of using them in such a way that you don't get your own false sense of security because you end up depleting them or using them and then when the real emergency comes, you are fucked because you did not maintain your emergency funds, your reserves and/or your cash float properly..

No one is going to hold your hand either, so if you fuck up, it is completely on you to figure out what kind of balances to make to make sure that you are investing aggressively enough while at the same time, making sure that you maintain sound financial practices in the direction of how you maintain your emergency fund, reserves and float.

When you put it this way, I think it would be better to just focus on bitcoin untill the rich effect starts to come in on your portfolio maybe when you have already invested up to four years of your income and a lot of combining effect has come in over the years then we can think of diversifying or having thoughts to put cash in other assets, yeah it would be a he'll of an experience if we encounter an emergency and we don't have any cash around, so it's left for everyone to figure out how much he feel its okay for him to have in his emergency funds( which should be at least 3months of expenses) and also when he feels he woudl be okay to start considering other asset, cause if anyone ends up fucking up he won't be expecting any pity from anyone and all the responsibility still falls on him for his mistake.

I think that the longer that anyone invests, the more and more comfort that he should have about having had built various systems to protect his investment, but surely one of the problems becomes that sometimes people will start to unnecessarily take extra risks with some of their investment and not protecting themselves as much as they should, and surely there can be points in which your holdings are more vulnerable than others, yet sometimes we cannot always know while we are in the middle of the process, and we can ONLY do as much as we are able to do, in terms of making our own best and solid practices to make sure that we are sufficiently protecting our portfolios and perhaps being aggressive without over doing it.. . and sometimes normies (normal people)_ do not always realize when they are either overdoing it or they are too far on the whimpy side or too far on the aggressive side...

.......it also has lesser to no gas fees attached to buying bitcoin off the exchange and this is good cause most beginners Don have huge capital and can be starting with as little as 10$, so imagine how discouraging it would be for them to be paying for gas everything they have to move their asset to their decentralized wallets, so yeah it's better they state with centralized exchange then when they have accumulated much bitcoin they can now move to a self custodian wallet to store their bitcoin.

Bitcoin does not have "gas fees"

That is a shitcoin way of describing matters.  

If you are talking about bitcoin, then you might be referring to transaction fees or even exchange fees, perhaps?

[Troytech]

Bitcoin market from 70 thousand dollars suddenly touched 66 thousand dollars, although I lost some money due to this temporary dumping of the market, I still see this change in the market as a big opportunity to make profit by investing.  

The price of Bitcoin naturally and a few days ago was 70 thousand dollars at that time many investors invested and some investors were waiting for the price of Bitcoin to drop a bit. That's why some investors were waiting for the price of Bitcoin to fall because they would have the opportunity to buy more Bitcoins at a relatively low price. Opportunities have arisen for these investors because the market is dumping a bit, at this time if those investors invest in Bitcoin and wait for a few days, they can make good profits in a short period of time. I already have enough amount of investment, then after seeing this temporary dumping of the market, I am planning to add some more amount of investment to my total investment.

I have made a deposit account which I have paid a few days ago, I want to withdraw the money instead of keeping it in the bank and invest in bitcoins because the price of bitcoins is relatively low now. If I invest now and hold for a short period of time, I will still get a good amount of profit from my new investment, which I will not get if I keep the money in the bank.  
Hopefully this will definitely be the best step for me in investing and I will be able to invest all the money in my deposit account and achieve success.

Be careful on how you go about this thing. With your explanation it's seems like you are in for this short time profit hunting in bitcoin investment and you might get hurt along the way depending on the approach you have Decided to use. Yes you are right that money kept in bank will not yield you any profit as compared to when invested in bitcoin. But you have to understand that for you to see substantial profit in bitcoin you don't have to have this short term mentality that you are chasing, using all your deposit in the bank to buy bitcoin and waiting for it to rise a little for you to take profit is not very healthy. What happens if bitcoin doesn't rise within the time frame you were expecting it to rise so you take your Little profit? It simply means that you will sell your bitcoin at a reduced price for you to feed since your expectations were not met. We don't have control over the market to know the exact time it will recover, that's why we invest in it for a long term, so that no matter what happens along the way, we are not bothered because we already have all this planned out, on how to run our life without panicking. Don't use all your savings and invest in bitcoin and hoping to get good profit within days or months, it will backfire you and you won't like the experience. Rather have a long term mentality when investing in bitcoin, and when you are in for the long term, you have to make sure that your emergency funds are in place.

the problem with some folks is that they ignore some key fundamentals which is what's necessary for effective decision making. Once you're looking at investing all your fortune into an asset that's as volatile as Bitcoin without making proper plans and you're expecting an immediate profit within intervals of weeks or few months, it goes to show you don't even know how investing into an asset as Bitcoin works and that you're possibly gambling with your money or possibly in search of anything that's available to double or multiply your funds. Now here is the take; as promising as investing into Bitcoin his, if you go about it with the wrong mentality You're invariably going to face similar fate with folks that Hold on to shit coins and continue waiting for the moment when it will become bullish and it never happens.

For you to effectively invest into Bitcoin and get the necessary profit, you must fix these key variables right;

1. Know the amount you can comfortably allocate into your investment that won't affect your needs
2. Device a stacking methord that works well for you based on your financial strength and this is where using DCA methord, bulk purchase or front loading comes into play
3. Set out an emergency fund that serves as a wall to protect your holding
4. Stay disciplined such that emotions and unnecessary event don't come up to take off your holdings.
5. And then you can work on ensuring that your holding is safe and secured from any intruder or hackers
6. as an important point, take off every sense of ponzi scheme mentality that makes you feel like you can just invest into Bitcoin today and get the expected profit in no time. You've got to be patient so you can stack up a good amount of bitcoin before thinking about making any profit. At the stage of your accumulation, if you're just concerned about making quick profit, then you obviously need to have a rethink.

You know as much as strategy gives us an edge, having a good psychology is also better and would carry us a long way in our investment, how would someone have a mind set that buying low and selling high is the best strategy to approach bitcoin with just because he feels he would make quick profits from it and disregard a long term holding that is a more after and better option, having a good mindset is also as good as using the best strategy and knowing how to do all the calculations, cause if you don't have a good mindset, you would find yourself often gambling than investing.

One of the most common area that even bitcoiners have a poor psychology is that they fail to understand the worth of bitcoin itself as an asset and for that reason they also fail to be able to want to hold bitcoin for long, to them bitcoin is just  merely for profit making and that's why they may never get rich, cause how can you get rich when you don't have any bitcoin and end up selling evertime you make a little profit and the flaw to this strategy is that,

1. They would never have any bitcoin: after so many years of buying and selling, when they look at their portfolio there is no prove that they had actually bought Bitcoin at any time, and that is because they have been busy selling everything.

2.They would most likely remain poor : if you know about the compounding effect of bitcoin, then you would know that bitcoin favours long term holders more, and the more bitcoin you accumulate and the longer you keep, the more compounding value effect that would happen on your portfolio.

3. They would have more failures than success : while this might not be a general reality for many but one thign we know is that trying to time the market is not a very good thign cause you might be anticipating for the price to come to a particular level and it woudl never reach their, so you end up not buying and missing out and you have to wait till another dip which might not also come.

Another area that most bitcoiners fail to do is constantly reassessment of old strategies to see where there are doing it wrong, at times we might think that we are doing everything right, without knowing that we are on the wrong side, and that's why it is good to keep a journal or a record of all that you have been doing concerning your investment in bitcoin so you could easily spot out those mistakes and correct yourself, I personally use Google spreadsheet for now to save details on how much I've invested, detes and time an Di also keep a journal on what I'm doing, so I can easily find out where I'm faulty in my ways.

In conclusion been in bitcoin does not guarantee success, only doing the right thing and having a good mindset can guarantee such, yeah everything has its risk and we are investing with monet we won't miss, so potentially or if they is a possibility that bitcoin won't pay off we have to worry much about that.

Bitcoin does not have "gas fees"

That is a shitcoin way of describing matters.  

If you are talking about bitcoin, then you might be referring to transaction fees or even exchange fees, perhaps?

Thanks for the correction, I must have been misplacing words, when I first started DCA I was hooked up with self custody thign, so when ever I bough bitcoin I would have to transfer it to my wallet for storage, but that was eating me up cause I had to account an extra dollar to my buying to cover up the exchange fees( thanks for the correction, I actually though the fee was from bitcoin), but now I'm all good on that, I just accumulate and keep on the exchange and when I've had enough bitcoin like up to 500$ then I move it to my wallet, so I'll have lesser fees to pay( this is not composary to leave up to 500$, there are risk involved with trusting exchange, so apply with your risk tolerance and don't keep too much on exchange wallets).