Buy the DIP, and HODL!

[SmartGold01]

There is no beed emphasizing too much on the benefits of having a large Bitcoin reserves and it potential profits merging compared to having just few bitcoin, i was DCA with almost 100% of my monthly income before,  because have hard free supplied of almost everything and leaved in my parent house, so it was so easy for me to put down all my earning into for my Bitcoin accumulations for some time almost 2 year accumulations with 100%all in funds that speed up my accumulation process, and within that time i have hard series of profits increases in proportion to my total accumulated amount of Bitcoin.
But few months ago i started living in my own apartment, and since then my Bitcoin accumulation has dropped below 30% of my monthly earning,s, and taken records of my profits merging within that space of time, it can't be compared in any way with what I use to earn as profits when I was all in 100% monthly, which is normal considering the amount I am investing in Bitcoin at the current stage.
But all the same, the DCA approach has become one of the most useful Bitcoin accumulation tools that have helped many investors to be able to accumulate Bitcoin all the way down while taking chances in the various discounted prices presented by Bitcoin from time to time.

I can get the mental picture of what you are saying and sometimes trying to increase your DCA level always ended up into wants or needs since you didn't spare some money or reserved some of it to back it for the next month expense before your monthly salaries comes in always put you in a tension. Do I say had ones experienced this as well but, that doesn't stops you from DCA'ing since you are yet to be in a family mood like some of us here who have kids that are really on our neck trying to make us got distracted with our DCA percentages.

That is why to always keep your DCA amount increase or a regular basis looking for additional cash could also help to retain that percentages you were having before ( That is to say, instead of dropping from 100 percent as previous alternative work could had been more better) although it's not a compulsion but just trying maintain your previous standard until you got to your desired point of accumulation.

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[JayJuanGee]

Today.  Which one would you rather be?  The one who has 20 BTC has much greater profits 3x more profits since his cost are only around $333 per BTC as compared to the one with 100 BTC and a cost that is 3x higher per BTC.  Total portfolio value is $520k for the one with 20 BTC and $2.6 million for the one with 100 BTC.

I will rather be the second guy who used DCA to accumulate 100BTC because it is an easy way for you do accumulate without facing many challenges on the price movement of bitcoin. The only challenge that someone using DCA method is when the source of income is not steady, but if it is, you will worry less because you are sure of accumulating a significant amount in a long period of time. Another thing that I observe is that those that prefer to buy at the dip, are not prepared to increase the number of their portfolio with a significant amount because nobody knows when bitcoin price will dip. But they think it is the wisest strategy unknown to them that the dip will come like a thief in the night, when they have spent the money, they intend to use because they have giving up on waiting for bitcoin price dip or an unforeseen circumstance came to devour the fund planned to use for DCA. This is the reason why I said that they are like people that are not prepared or ready to invest due to the current price of bitcoin at that moment.

There is no beed emphasizing too much on the benefits of having a large Bitcoin reserves and it potential profits merging compared to having just few bitcoin, i was DCA with almost 100% of my monthly income before,  because have hard free supplied of almost everything and leaved in my parent house, so it was so easy for me to put down all my earning into for my Bitcoin accumulations for some time almost 2 year accumulations with 100%all in funds that speed up my accumulation process, and within that time i have hard series of profits increases in proportion to my total accumulated amount of Bitcoin.
But few months ago i started living in my own apartment, and since then my Bitcoin accumulation has dropped below 30% of my monthly earning,s, and taken records of my profits merging within that space of time, it can't be compared in any way with what I use to earn as profits when I was all in 100% monthly, which is normal considering the amount I am investing in Bitcoin at the current stage.
But all the same, the DCA approach has become one of the most useful Bitcoin accumulation tools that have helped many investors to be able to accumulate Bitcoin all the way down while taking chances in the various discounted prices presented by Bitcoin from time to time.

A large number of normies (normal people) have troubles saving/investing up to 10% of their income into anything (including but not limited to bitcoin), and so it can sometimes be quite difficult to get into a kind of routine in which you are able to set-aside 10% of your income to invest into bitcoin.  And, so accordingly, anything above 10% to 30% seems like icing on the cake and fortune, and like you said there may be some instances in which some folks are able to save somewhere close to 100% of their income.. and those might be unusual kinds of circumstances, but also potentially fortunate kinds of circumstances when they are managed in a responsible way.. including that sometimes, even someone with 100% provided, still might find some ways that s/he wants to spend income for recreational and/or consumptive purposes... which is not an evil, since there are times in which people need to balance their psychology and maybe even their physicality with recreation and/or consumption that costs money.

[Odohu]

The only challenge that someone using DCA method is when the source of income is not steady

This was my thinking too and I even made a comment referencing an entrepreneur.  Thankfully, JJG explained convincingly, how this can be achieved. From that explanation, you can actually know your financial inflow within a certain period like a year, from that you can know what to set aside and plan your DCA accordingly.  You must not be earning fixed income monthly or werkly before you can perform DCA, even when your inflow is not regular, you can take average with a time period and as soon as you have any bulk funds, you can start off with the part that fits into the average you have worked out already and before it is exhausted,  you would have receieved another inflow base on your calculations.

i was DCA with almost 100% of my monthly income before,  because have hard free supplied of almost everything and leaved in my parent house,

This reminds me of the good old days when my parents were providing practically everything I needed. Imagine I knew about Bitcoin then, most of the monies I spent on things I can't even remember would have been properly preserved in Bitcoin.

[JayJuanGee]

The only challenge that someone using DCA method is when the source of income is not steady

This was my thinking too and I even made a comment referencing an entrepreneur.  Thankfully, JJG explained convincingly, how this can be achieved. From that explanation, you can actually know your financial inflow within a certain period like a year, from that you can know what to set aside and plan your DCA accordingly.  You must not be earning fixed income monthly or weakly before you can perform DCA, even when your inflow is not regular, you can take average with a time period and as soon as you have any bulk funds, you can start off with the part that fits into the average you have worked out already and because it is exhausted,  you would have receieved another inflow base on your calculations.

I like to think about the non-steady income in a couple of parts.

The first part is just figuring out what is your worst-case scenarios, what are your best case scenarios and what is your average... So then with that information you can try to project ahead, and most likely mostly using some combination of the worst-case scenarios and the average in order to figure out how much money you need to keep in your emergency fund in order to cover those situations in which the worst-case scenarios ended up playing out rather than the average case scenarios.

So, even though not necessarily likely worst-case scenarios could end up playing out for 6-12 months or more, and so the emergency cash fund should be able to cover the gap between what you need to live and what kind of income is coming in.  Hopefully, you are already spending (your monthly expenses) somewhere less than your average case scenario which should then cause for an ability to invest (or DCA) with part of the amount that you are living below your average case scenario. and sure if the worse case scenario persists for a long time, you may well end up needing to either reduce or eliminate your DCA purchases of bitcoin, but if you have planned in advance you should not necessarily need to stop your DCA, and for sure, you do not want to end up putting yourself in a position in which you end up having to sell any of your BTC during periods in which worse case scenarios are playing out.. which likely would mean that you had not sufficiently prepared in terms of your emergency fund and/or the ways that you had been choosing to live in order to make sure that you are generally living below the amount of your average case scenarios rather than spending more than that.

[Ryu_Ar1]

Looking at what you said at the beginning of the sentence and at the end, I actually think it has a contradiction.
You say having a strategy and not rushing is a must-have but on the other hand you want to try first by investing $100 every time you have a salary and dividing it into several months.
Honestly, I don't really understand your current strategy whether you want to try to do DCA or lum slump like my discussion with @Baby Shoes before.
I don't consider it a mistake but I think you should start trying to be clearer in your investment scheme especially if the goal is DCA.

I don't really disagree with anything that you are saying Ryu_Ar1.. but it just seems that you might be suggesting that there are ways to really be active in DCA beyond merely just figuring out how much for each period and applying it..

Accordingly, I would suggest that anyone who is trying to strategize with buying on dips for part of his/her income that is allocated to buy BTC is not engaging in pure DCA, and there really is nothing wrong with supplementing a DCA strategy with some variation of buying on dip.

Remember a pure DCA would strictly be looking at how much income you have coming in and what are your expenses (including making sure that your emergency fund is covered), and then whatever that is left over would be used to buy BTC, so the weekly, monthly or twice a month amount may well differ depending upon variation of cashflow and variation of expenses. 

Now if a conscious choice is made to ONLY spend part of what is left on buying BTC right away, and the other portion is used for buying on dips, then there is no longer a strict DCA practice going on, and there is nothing wrong with deviating from a strict DCA as long as you realize that part of what you are doing is DCA and the other part is attempting to strategize to buy on dips.

So I think that part of my point is that anyone who is trying to strategize in regards to his/her DCA is applying some kind of a variation of DCA.. and there is really nothing wrong with that.

I might be a little bit defensive in this case for the sentence that you thickened in my previous opinion.
What I mean by it doesn't matter in this case because I don't really care what other people do about how they do the strategies they do because it won't hurt me and it's up to them whether to do what they do whether it's about DCA or buying with momentum utilization by spending their money / buying on a large scale when they want to.
The point is the suggestion where I suggest to do DCA and indeed I also still do not fully know more and understand well about some sub DCA that is pure or there are some other variables as you said but what I realize with DCA it will make us more comfortable in making investments because as we have discussed in the previous few pages, with DCA we are not too worried that the budget from DCA interferes with other needs of our expenses in one month because we have prepared and budgeted for it from the beginning when we know the income we receive.
Of course maybe when I understand more about DCA I might also do something like what you said by adding variables to DCA itself but for now I will only focus on DCA which might be pure if I look at what I do and the definition of pure DCA itself.

I still agree with what you said in the point where we invest only to spend part of what is left to buy BTC immediately it will be very risky for our needs in everyday life because we also still have to be charged with needs and all the necessities for us so we don't have to force it all in because this is used for the long term. Do not let you think about the long term that is too far away but do not think about life for tomorrow so that being aggressive is not really recommended especially when there is already a DCA strategy that we run as long as if other people still do that I don't really care because I don't really care the most important thing is that I do according to what I believe that when DCA is not really recommended to do other strategies so that the results are maximized but maybe you can still add variations or other variables to the DCA section as you said.

[Agbamoni]

Today.  Which one would you rather be?  The one who has 20 BTC has much greater profits 3x more profits since his cost are only around $333 per BTC as compared to the one with 100 BTC and a cost that is 3x higher per BTC.  Total portfolio value is $520k for the one with 20 BTC and $2.6 million for the one with 100 BTC.

I will rather be the second guy who used DCA to accumulate 100BTC because it is an easy way for you do accumulate without facing many challenges on the price movement of bitcoin. The only challenge that someone using DCA method is when the source of income is not steady, but if it is, you will worry less because you are sure of accumulating a significant amount in a long period of time. Another thing that I observe is that those that prefer to buy at the dip, are not prepared to increase the number of their portfolio with a significant amount because nobody knows when bitcoin price will dip. But they think it is the wisest strategy unknown to them that the dip will come like a thief in the night, when they have spent the money, they intend to use because they have giving up on waiting for bitcoin price dip or an unforeseen circumstance came to devour the fund planned to use for DCA. This is the reason why I said that they are like people that are not prepared or ready to invest due to the current price of bitcoin at that moment.

There is no beed emphasizing too much on the benefits of having a large Bitcoin reserves and it potential profits merging compared to having just few bitcoin, i was DCA with almost 100% of my monthly income before,  because have hard free supplied of almost everything and leaved in my parent house, so it was so easy for me to put down all my earning into for my Bitcoin accumulations for some time almost 2 year accumulations with 100%all in funds that speed up my accumulation process, and within that time i have hard series of profits increases in proportion to my total accumulated amount of Bitcoin.
But few months ago i started living in my own apartment, and since then my Bitcoin accumulation has dropped below 30% of my monthly earning,s, and taken records of my profits merging within that space of time, it can't be compared in any way with what I use to earn as profits when I was all in 100% monthly, which is normal considering the amount I am investing in Bitcoin at the current stage.
But all the same, the DCA approach has become one of the most useful Bitcoin accumulation tools that have helped many investors to be able to accumulate Bitcoin all the way down while taking chances in the various discounted prices presented by Bitcoin from time to time.

A live of a bachelor is never easy, this is just you living alone just for some few months and your level of Bitcoin accumulation has dropped drastically to a ratio of 3:10
I am wondering how it will become, once you start making babies and have a home, maybe it will get below the 3:10 accumulation.
You got to try brother, the responsibility is much to what we receive as salary.

I like to think about the non-steady income in a couple of parts.

The first part is just figuring out what is your worst-case scenarios, what are your best case scenarios and what is your average... So then with that information you can try to project ahead, and most likely mostly using some combination of the worst-case scenarios and the average in order to figure out how much money you need to keep in your emergency fund in order to cover those situations in which the worst-case scenarios ended up playing out rather than the average case scenarios.

So, even though not necessarily likely worst-case scenarios could end up playing out for 6-12 months or more, and so the emergency cash fund should be able to cover the gap between what you need to live and what kind of income is coming in.  Hopefully, you are already spending (your monthly expenses) somewhere less than your average case scenario which should then cause for an ability to invest (or DCA) with part of the amount that you are living below your average case scenario. and sure if the worse case scenario persists for a long time, you may well end up needing to either reduce or eliminate your DCA purchases of bitcoin, but if you have planned in advance you should not necessarily need to stop your DCA, and for sure, you do not want to end up putting yourself in a position in which you end up having to sell any of your BTC during periods in which worse case scenarios are playing out.. which likely would mean that you had not sufficiently prepared in terms of your emergency fund and/or the ways that you had been choosing to live in order to make sure that you are generally living below the amount of your average case scenarios rather than spending more than that.

Another factor can be based on the increase in price of goods and services in a country, whereby the persons salary no longer meets the requirements of the things that is needed to sustain one's self. I think that have enough effect to alter one's DCAing in accumulating Bitcoin

[JayJuanGee]

I like to think about the non-steady income in a couple of parts.

The first part is just figuring out what is your worst-case scenarios, what are your best case scenarios and what is your average... So then with that information you can try to project ahead, and most likely mostly using some combination of the worst-case scenarios and the average in order to figure out how much money you need to keep in your emergency fund in order to cover those situations in which the worst-case scenarios ended up playing out rather than the average case scenarios.

So, even though not necessarily likely worst-case scenarios could end up playing out for 6-12 months or more, and so the emergency cash fund should be able to cover the gap between what you need to live and what kind of income is coming in.  Hopefully, you are already spending (your monthly expenses) somewhere less than your average case scenario which should then cause for an ability to invest (or DCA) with part of the amount that you are living below your average case scenario. and sure if the worse case scenario persists for a long time, you may well end up needing to either reduce or eliminate your DCA purchases of bitcoin, but if you have planned in advance you should not necessarily need to stop your DCA, and for sure, you do not want to end up putting yourself in a position in which you end up having to sell any of your BTC during periods in which worse case scenarios are playing out.. which likely would mean that you had not sufficiently prepared in terms of your emergency fund and/or the ways that you had been choosing to live in order to make sure that you are generally living below the amount of your average case scenarios rather than spending more than that.

Another factor can be based on the increase in price of goods and services in a country, whereby the persons salary no longer meets the requirements of the things that is needed to sustain one's self. I think that have enough effect to alter one's DCAing in accumulating Bitcoin

That does not really change anything that I say.. if the change comes from changes in income or changes in expenses, there still are likely going to be needs to reassess from time to time, and some people still are going to have much more steady income as compared with others, and some people might have erratic extremes that cause their worse case scenarios to be $0.. and maybe they are always living on the edge too.. so they are barely able to meet their monthly expenses, and maybe some of those people should not be investing into bitcoin (even though the choice is theirs to make, but sometimes people make bad choices that amount to gambling, but they believe that they are investing.. but they do not really have enough of a cash flow or even an emergency fund to be in a position to be able to invest anything, but sometimes they still will invest and their choice to invest might end up being the wrong decision, even though everyone is free to make their own decisions, even when they make bad decisions and believe that they are working to make themselves better when they are not).

[Agbamoni]

I like to think about the non-steady income in a couple of parts.

The first part is just figuring out what is your worst-case scenarios, what are your best case scenarios and what is your average... So then with that information you can try to project ahead, and most likely mostly using some combination of the worst-case scenarios and the average in order to figure out how much money you need to keep in your emergency fund in order to cover those situations in which the worst-case scenarios ended up playing out rather than the average case scenarios.

So, even though not necessarily likely worst-case scenarios could end up playing out for 6-12 months or more, and so the emergency cash fund should be able to cover the gap between what you need to live and what kind of income is coming in.  Hopefully, you are already spending (your monthly expenses) somewhere less than your average case scenario which should then cause for an ability to invest (or DCA) with part of the amount that you are living below your average case scenario. and sure if the worse case scenario persists for a long time, you may well end up needing to either reduce or eliminate your DCA purchases of bitcoin, but if you have planned in advance you should not necessarily need to stop your DCA, and for sure, you do not want to end up putting yourself in a position in which you end up having to sell any of your BTC during periods in which worse case scenarios are playing out.. which likely would mean that you had not sufficiently prepared in terms of your emergency fund and/or the ways that you had been choosing to live in order to make sure that you are generally living below the amount of your average case scenarios rather than spending more than that.

Another factor can be based on the increase in price of goods and services in a country, whereby the persons salary no longer meets the requirements of the things that is needed to sustain one's self. I think that have enough effect to alter one's DCAing in accumulating Bitcoin

That does not really change anything that I say.. if the change comes from changes in income or changes in expenses, there still are likely going to be needs to reassess from time to time, and some people still are going to have much more steady income as compared with others, and some people might have erratic extremes that cause their worse case scenarios to be $0.. and maybe they are always living on the edge too.. so they are barely able to meet their monthly expenses, and maybe some of those people should not be investing into bitcoin (even though the choice is theirs to make, but sometimes people make bad choices that amount to gambling, but they believe that they are investing.. but they do not really have enough of a cash flow or even an emergency fund to be in a position to be able to invest anything, but sometimes they still will invest and their choice to invest might end up being the wrong decision, even though everyone is free to make their own decisions, even when they make bad decisions and believe that they are working to make themselves better when they are not).

I see the points you are making, also same reason why most people sells of there investment because they have no left over money to carry out some expenses or emergencies . The best way they think of is to sell out there investment which is not helping due to wrong decision at the very beginning

[ginsan]

~~.. and maybe even having some ideas about how long it might take to replenish that fund in the future.. 3-6 months?  maybe a year? 

That's what hinders my investment rate if I have to act aggressively in a bear market situation. Yes, to cover emergency fund reserves will take time and that could hinder one of the DCA options that I have done so far. So at this point the cushion we have is not too strong to move aggressively in accumulating BTC so I have to adjust this step well so as not to disturb me at the DCA level at each stage. However, for those who have large emergency fund reserves, they can certainly move more aggressively in the last few days to accumulate BTC below $26k. In this case, every decision is certainly supported by their financial aspects and will not interfere with their DCA strategy.

[Kodec5]

~~.. and maybe even having some ideas about how long it might take to replenish that fund in the future.. 3-6 months?  maybe a year?

That's what hinders my investment rate if I have to act aggressively in a bear market situation. Yes, to cover emergency fund reserves will take time and that could hinder one of the DCA options that I have done so far. So at this point the cushion we have is not too strong to move aggressively in accumulating BTC so I have to adjust this step well so as not to disturb me at the DCA level at each stage. However, for those who have large emergency fund reserves, they can certainly move more aggressively in the last few days to accumulate BTC below $26k. In this case, every decision is certainly supported by their financial aspects and will not interfere with their DCA strategy.

Why most people aggressively invest in Bitcoin others still sees it as a ton of luck or risk. Bitcoin has so many factors compiled together so as to successfully achieve enough profits at its bull run, factors like risk management and market analysis are all to be put together.

[JayJuanGee]

~~.. and maybe even having some ideas about how long it might take to replenish that fund in the future.. 3-6 months?  maybe a year? 

That's what hinders my investment rate if I have to act aggressively in a bear market situation.

You don't "have to" be aggressive at any time that is other than what you want, and the level of your aggressiveness is like a sliding scale in which if you are choosing to be more aggressive than your usual level, you don't have to go all the way.. and frequently when you feel that you are able to be aggressive, that is because you have already measured your situation sufficiently enough to know how aggressive you feel comfortable being.

If you are brand new to bitcoin and you have not even really figure out your own financial situation, then your attempts to be aggressive would likely end up crossing over into gambling because you have not spent enough time studying the specifics of your finance and/or psychology in order to figure out how aggressive that you can be, and likely in the very beginning you might choose to error on the side of being a bit whimpy and maybe you would end up ONLY investing $10 per week when you are pretty sure that you could afford $60 to $100 per week, but you error on the side of being whimpy because you are still sorting through figuring out your budget both in terms of your finances and also in terms of your psychology.

Yes, to cover emergency fund reserves will take time and that could hinder one of the DCA options that I have done so far.

Well sometimes you can do both, and you could be new to investing in bitcoin or into anything, and you realize that you ONLY have about 2-3 weeks worth of savings.. and so you want to get to 6 months ideally, but you might be willing to live with 3 months as a kind of less preferred scenario.. and so your realizing that you don't even have the basics in place may still not end up precluding you from putting some of your money in bitcoin while you are working from getting your emergency fund up from 2-3 weeks and then up to 3 months and then up to 6 months, so there could be ways that you continue to build both rather than completely staying out of investing.. because part of your power would be that you have identified where you are wanting to get to and that you are working on getting there rather than someone who is investing without actually identifying to where you are wanting to get.

So at this point the cushion we have is not too strong to move aggressively in accumulating BTC so I have to adjust this step well so as not to disturb me at the DCA level at each stage. However, for those who have large emergency fund reserves, they can certainly move more aggressively in the last few days to accumulate BTC below $26k.

You are very much on the right track.  The person who spent more time getting his/her shit together and has a strong emergency fund is going to be very much in a better position to deploy some of those extra reserves, and it takes time to get yourself into those kinds of strong positions, especially if you had not previously really identified with specifics where you want to be. (or need to be).  Even sometimes when you are in a position of strength, you sometimes might make some mistakes that will weaken your strength for several months until you build back up to where you should be but sometimes mistakes do happen... but if you had been in a position of strength, you are in a much better position to make mistakes than you are if you are already starting out from a position of weakness... so yeah, if you had been in a position of weakness and you make the same mistakes as the person who is in a position of strength, you might end up taking yourself out of the game, and the person in the position of strength has lived to fight another day, even if that person had gotten weakened from his/her mistakes.

In this case, every decision is certainly supported by their financial aspects and will not interfere with their DCA strategy.

Yeah, but what does that tell you?  Probably it tells you where you want to get to being rather than being resentful or jealous about people who happen to be in a better position than you.  There are always going to be people who are in better positions than you, but the more and more and more that you work on your own situation (and to improve it) then the more you are going to see that there are people in situations that are much worse than your own situation, and especially when it comes to bitcoin, we might look back in 2033 and see that there are people who are just getting into bitcoin who are way better off than you had been in 2023, however, you end up being way better off than them because you spent the last 10 years investing into bitcoin and they are just getting started, 10 years later than you... even if they are starting with more capital than what you had when you started, they are never going to be able to catch up to you.

Just imagine the person who spent $3k in 2015 to buy right around 10 bitcoin, and any person now is going to have to spend $265k in or to even attempt to get close to accumulating 10 bitcoin, so sometimes the underdog who is persistent and knows that bitcoin is a good place to put value is going to pass up some of his/her peers who are more wealthy than him because of their failure/refusal to try to find out about bitcoin and/or their failure/refusal to take any kinds of actions (even de minimus actions) to build up any kind of a bitcoin holdings, and so if you are building and accumulating bitcoin for 10 years, then you are quite likely going to pass them up in a lot of measures.. .. and of course, your passing them up is not guaranteed, but it is a kind of an asymmetric bet in which you can figure out how aggressive that you want to be and to potentially end up profiting from the upside if the upside ends up playing out.

[Odohu]

I like to think about the non-steady income in a couple of parts.

The first part is just figuring out what is your worst-case scenarios, what are your best case scenarios and what is your average... So then with that information you can try to project ahead, and most likely mostly using some combination of the worst-case scenarios and the average in order to figure out how much money you need to keep in your emergency fund in order to cover those situations in which the worst-case scenarios ended up playing out rather than the average case scenarios.

So, even though not necessarily likely worst-case scenarios could end up playing out for 6-12 months or more, and so the emergency cash fund should be able to cover the gap between what you need to live and what kind of income is coming in.  Hopefully, you are already spending (your monthly expenses) somewhere less than your average case scenario which should then cause for an ability to invest (or DCA) with part of the amount that you are living below your average case scenario. and sure if the worse case scenario persists for a long time, you may well end up needing to either reduce or eliminate your DCA purchases of bitcoin, but if you have planned in advance you should not necessarily need to stop your DCA, and for sure, you do not want to end up putting yourself in a position in which you end up having to sell any of your BTC during periods in which worse case scenarios are playing out.. which likely would mean that you had not sufficiently prepared in terms of your emergency fund and/or the ways that you had been choosing to live in order to make sure that you are generally living below the amount of your average case scenarios rather than spending more than that.

Thank you for adding further clarification to this; I consider this information very helpful and I know other people do too. A lot of people in this forum might actually fall into this category of unsteady cashflow and this information will be very helpful for those who will be able to digest and implement it.

From your explanation, it is obvious that a simple averaging of upper and lower limits might not be  as efficient as keeping in mind the worst-case situation. As student, it is easy getting $10 per week for low income country oike mine  but sometimes it gets as high as $50. For a student in this situation that want to start investing in Bitcoin, a DCA of $10 per week will be more feasible

[Wind_FURY]

I like to think about the non-steady income in a couple of parts.

The first part is just figuring out what is your worst-case scenarios, what are your best case scenarios and what is your average... So then with that information you can try to project ahead, and most likely mostly using some combination of the worst-case scenarios and the average in order to figure out how much money you need to keep in your emergency fund in order to cover those situations in which the worst-case scenarios ended up playing out rather than the average case scenarios.

So, even though not necessarily likely worst-case scenarios could end up playing out for 6-12 months or more, and so the emergency cash fund should be able to cover the gap between what you need to live and what kind of income is coming in.  Hopefully, you are already spending (your monthly expenses) somewhere less than your average case scenario which should then cause for an ability to invest (or DCA) with part of the amount that you are living below your average case scenario. and sure if the worse case scenario persists for a long time, you may well end up needing to either reduce or eliminate your DCA purchases of bitcoin, but if you have planned in advance you should not necessarily need to stop your DCA, and for sure, you do not want to end up putting yourself in a position in which you end up having to sell any of your BTC during periods in which worse case scenarios are playing out.. which likely would mean that you had not sufficiently prepared in terms of your emergency fund and/or the ways that you had been choosing to live in order to make sure that you are generally living below the amount of your average case scenarios rather than spending more than that.

Thank you for adding further clarification to this; I consider this information very helpful and I know other people do too. A lot of people in this forum might actually fall into this category of unsteady cashflow and this information will be very helpful for those who will be able to digest and implement it.

From your explanation, it is obvious that a simple averaging of upper and lower limits might not be  as efficient as keeping in mind the worst-case situation. As student, it is easy getting $10 per week for low income country oike mine  but sometimes it gets as high as $50. For a student in this situation that want to start investing in Bitcoin, a DCA of $10 per week will be more feasible

Good for you ser. You're still a student, single, AND YOUNG. I'm confident that the start of your Bitcoin journey EARLY in your life will give you a better probability of building a good portfolio by the time of your retirement. You are currently front-running BlackRock, and the other asset managers, if they haven't bought any Bitcoin yet.

Keep working, keep learning.

 

Furthermore, percentage change of the money supply in the United States from one year ago. It's down by -3.7%. That's another deflationary month since December, 2022. This might cause an economic crash in that region that could be a contagion for other regions.

https://fred.stlouisfed.org/graph/?graph_id=248494#0

Perhaps it's good to use half of what you're regularly using for DCA, and save it for a DIP?

[Ryu_Ar1]

Another factor can be based on the increase in price of goods and services in a country, whereby the persons salary no longer meets the requirements of the things that is needed to sustain one's self. I think that have enough effect to alter one's DCAing in accumulating Bitcoin

IMO when you say the actual salary factor it doesn't change any views on the DCA issue.
Indeed, now we are in a really difficult condition and sometimes the income we have is very sufficient with expenses that are getting more and more expensive, but when we understand and can manage those needs well, investing and doing DCA will not be hampered by that because we can adjust the budget we have from the income in a month for daily needs including unexpected needs and to be in investment.
I think we already understand and can be flexible with something like this because of course the initial concept should start when thinking that this investment is only a portion or a few per cent of what we collect from the monthly salary.

[JayJuanGee]

[edited out]

From your explanation, it is obvious that a simple averaging of upper and lower limits might not be  as efficient as keeping in mind the worst-case situation. As student, it is easy getting $10 per week for low income country oike mine  but sometimes it gets as high as $50. For a student in this situation that want to start investing in Bitcoin, a DCA of $10 per week will be more feasible

Exactly.  It is good if you put some kind of a number on it, so yes, in a case like that, the hypothetical person (student) may well end up creating his DCA at $10 per week, and maybe s/he would have certain time frames in which s/he would increase the DCA for those particular weeks in which the income that ended up coming in was greater than $10.. and maybe s/he would wait for the whole month to go by in order to make sure that all of the expenses are in and that the emergency fund is sufficiently filled prior to adding the surplus income to the DCA.. and sometimes in those kinds of cases, it might be good to add the earlier months surplus to the next month, unless you end up being happy just making a lump sum investment (which would be the same as DCA, just on a monthly rather than weekly basis) with the surplus that is determined at the end of each month.

Sometimes when regular habits are made to trajectory out the expenses and the income, you will be able to determine right away if you are receiving income that would be considered surplus because if your emergency fund is already full and you have already accounted for the worse case scenario in your monthly (or even 6 month projection of income and expenses), then whenever any extra money comes in that is beyond the worse case scenario, you would be able to spend all of that extra money on bitcoin DCA or whatever else you end up choosing to use it for.. and surely in this case we are trying to focus on when you are going to know that extra income is available for bitcoin DCA and there are always going to be some other competing interests, but if you are early in your bitcoin accumulation journey then surely you may end up putting most of your extra income into your bitcoin accumulation budget and then allocating that extra income to whatever category of accumulation that you deem most fitting (lump sum, DCA and/or buying on dips).

I already told the story of my tight cashflow in 2015 and 2016 in which I had already figured out my budget with enough of an exactness that I would automatically buy BTC right away with half of any extra income that would come in during that time (still pretty early in my BTC accumulation even though I had done most of it in 2014), and the other half of that extra income would just go into my reserves.. and in order to account for whatever other expenses that I had and sometimes income coming i would have some of its own costs that might need to get plugged into my expenses.. and so for example even something as simple as selling piece of furniture or selling a car, a bicycle or a some kind of service, there might be some potential hidden cost that the half set aside would potentially cover (not an exact science, but still worked pretty well for me during that time of my bitcoin accumulation journey).

[Agbamoni]

I like to think about the non-steady income in a couple of parts.

The first part is just figuring out what is your worst-case scenarios, what are your best case scenarios and what is your average... So then with that information you can try to project ahead, and most likely mostly using some combination of the worst-case scenarios and the average in order to figure out how much money you need to keep in your emergency fund in order to cover those situations in which the worst-case scenarios ended up playing out rather than the average case scenarios.

So, even though not necessarily likely worst-case scenarios could end up playing out for 6-12 months or more, and so the emergency cash fund should be able to cover the gap between what you need to live and what kind of income is coming in.  Hopefully, you are already spending (your monthly expenses) somewhere less than your average case scenario which should then cause for an ability to invest (or DCA) with part of the amount that you are living below your average case scenario. and sure if the worse case scenario persists for a long time, you may well end up needing to either reduce or eliminate your DCA purchases of bitcoin, but if you have planned in advance you should not necessarily need to stop your DCA, and for sure, you do not want to end up putting yourself in a position in which you end up having to sell any of your BTC during periods in which worse case scenarios are playing out.. which likely would mean that you had not sufficiently prepared in terms of your emergency fund and/or the ways that you had been choosing to live in order to make sure that you are generally living below the amount of your average case scenarios rather than spending more than that.

As student, it is easy getting $10 per week for low income country oike mine  but sometimes it gets as high as $50. For a student in this situation that want to start investing in Bitcoin, a DCA of $10 per week will be more feasible

You're hitting on a point that I found very interesting, investing as a student can be very difficult because there are other factors that could come up impromptu to spend money on in the school. Am not talking about student who spend so much on alcohol, hookers 😂😂 or whatever. I meant sometimes you might be asked to get a handout, textbook or to print some document so urgently and that alone can spoil the plan of investing the $10 every week. Don't you think it is best to set a monthly target or per semester so that withing that period you can invest huge whenever there is more money left in the week and invest less when the money let for a week is little but at the end you meet your target.

Another factor can be based on the increase in price of goods and services in a country, whereby the persons salary no longer meets the requirements of the things that is needed to sustain one's self. I think that have enough effect to alter one's DCAing in accumulating Bitcoin

IMO when you say the actual salary factor it doesn't change any views on the DCA issue.
Indeed, now we are in a really difficult condition and sometimes the income we have is very sufficient with expenses that are getting more and more expensive, but when we understand and can manage those needs well, investing and doing DCA will not be hampered by that because we can adjust the budget we have from the income in a month for daily needs including unexpected needs and to be in investment.
I think we already understand and can be flexible with something like this because of course the initial concept should start when thinking that this investment is only a portion or a few per cent of what we collect from the monthly salary.

This should be brought into a stated fact that inflation can harm one's level of DCAing.
If there should be an inflation in a country economy and the salary of that person remains the same there must be an effect on the person's method of accumulating Bitcoin. Not minding the emergency and most people get into debt as a result of there salary not meeting up to there basic need

[JayJuanGee]

I like to think about the non-steady income in a couple of parts.

The first part is just figuring out what is your worst-case scenarios, what are your best case scenarios and what is your average... So then with that information you can try to project ahead, and most likely mostly using some combination of the worst-case scenarios and the average in order to figure out how much money you need to keep in your emergency fund in order to cover those situations in which the worst-case scenarios ended up playing out rather than the average case scenarios.

So, even though not necessarily likely worst-case scenarios could end up playing out for 6-12 months or more, and so the emergency cash fund should be able to cover the gap between what you need to live and what kind of income is coming in.  Hopefully, you are already spending (your monthly expenses) somewhere less than your average case scenario which should then cause for an ability to invest (or DCA) with part of the amount that you are living below your average case scenario. and sure if the worse case scenario persists for a long time, you may well end up needing to either reduce or eliminate your DCA purchases of bitcoin, but if you have planned in advance you should not necessarily need to stop your DCA, and for sure, you do not want to end up putting yourself in a position in which you end up having to sell any of your BTC during periods in which worse case scenarios are playing out.. which likely would mean that you had not sufficiently prepared in terms of your emergency fund and/or the ways that you had been choosing to live in order to make sure that you are generally living below the amount of your average case scenarios rather than spending more than that.

As student, it is easy getting $10 per week for low income country oike mine  but sometimes it gets as high as $50. For a student in this situation that want to start investing in Bitcoin, a DCA of $10 per week will be more feasible

You're hitting on a point that I found very interesting, investing as a student can be very difficult because there are other factors that could come up impromptu to spend money on in the school. Am not talking about student who spend so much on alcohol, hookers 😂😂 or whatever. I meant sometimes you might be asked to get a handout, textbook or to print some document so urgently and that alone can spoil the plan of investing the $10 every week. Don't you think it is best to set a monthly target or per semester so that withing that period you can invest huge whenever there is more money left in the week and invest less when the money let for a week is little but at the end you meet your target.

Even though you are moving around the facts a bit @Agbamoni, you are not really changing them significantly enough in  order to be saying anything different from what @Odohu or I was trying to say.

If you have an income that comes in for a semester or twice a year for school, then you can surely divide that up for however, many weeks are within each semester.. .. and then even choose NOT to actually use any of the weekly allowance to buy bitcoin until after you know for sure what your weeks expenses are going to be, whether they are basic expenses or the more extravagant hookers, lambos and blow (or alcohol) type of expenses.

To me, it seems that @Odohu was suggesting that the income or the expenses were not as steady as what you are describing having a set amount for each semester... but then if there might be some side incomes or even side expenses, that could cause the weekly budget to vary, then there can be some flexibility in terms of whether $10 per week would be available for the purchase of bitcoin on the worst of the weeks or whether $50 might be available on the weeks in which there was more surplus cash available.

Another factor can be based on the increase in price of goods and services in a country, whereby the persons salary no longer meets the requirements of the things that is needed to sustain one's self. I think that have enough effect to alter one's DCAing in accumulating Bitcoin

IMO when you say the actual salary factor it doesn't change any views on the DCA issue.
Indeed, now we are in a really difficult condition and sometimes the income we have is very sufficient with expenses that are getting more and more expensive, but when we understand and can manage those needs well, investing and doing DCA will not be hampered by that because we can adjust the budget we have from the income in a month for daily needs including unexpected needs and to be in investment.
I think we already understand and can be flexible with something like this because of course the initial concept should start when thinking that this investment is only a portion or a few per cent of what we collect from the monthly salary.

This should be brought into a stated fact that inflation can harm one's level of DCAing.
If there should be an inflation in a country economy and the salary of that person remains the same there must be an effect on the person's method of accumulating Bitcoin. Not minding the emergency and most people get into debt as a result of there salary not meeting up to there basic need

This point has already been addressed several times including that if the inflation comes, then maybe a person has to make his/her emergency fund greater in order to account for the inflation, and maybe at some point s/he might have to lessen or discontinue DCA'ing into bitcoin.. but hopefully none of the inflation becomes so bad that the BTC accumulator has to sell BTC at a time that is other than any time of his/her own choosing... which also just signifies that there are needs to be careful in terms of not over investing and trying to anticipate expenses, including inflation. and sure sometimes inflation is truly beyond expectations, but it probably is not as much beyond expecation than most of us already know that it happens and it happens in some places more than in other places and sometimes we have to attempt to prepare for those kinds of things (which is another reason to be investing into bitocin for the long term.. maybe even 20-30 years and in that regard, even though the inflation is hurting in the short term, hopefully investing into bitcoin will give more options in the long run, but bitcoin is not going to give any options if you end up having to sell them early because you failed/refused to get your financial and psychological shit together enough in order to make sure that you don't get yourself reckt. and ONLY invest with your extra money, not the money that you need to live on.

[FinePoine0]

I like to think about the non-steady income in a couple of parts.

The first part is just figuring out what is your worst-case scenarios, what are your best case scenarios and what is your average... So then with that information you can try to project ahead, and most likely mostly using some combination of the worst-case scenarios and the average in order to figure out how much money you need to keep in your emergency fund in order to cover those situations in which the worst-case scenarios ended up playing out rather than the average case scenarios.

So, even though not necessarily likely worst-case scenarios could end up playing out for 6-12 months or more, and so the emergency cash fund should be able to cover the gap between what you need to live and what kind of income is coming in.  Hopefully, you are already spending (your monthly expenses) somewhere less than your average case scenario which should then cause for an ability to invest (or DCA) with part of the amount that you are living below your average case scenario. and sure if the worse case scenario persists for a long time, you may well end up needing to either reduce or eliminate your DCA purchases of bitcoin, but if you have planned in advance you should not necessarily need to stop your DCA, and for sure, you do not want to end up putting yourself in a position in which you end up having to sell any of your BTC during periods in which worse case scenarios are playing out.. which likely would mean that you had not sufficiently prepared in terms of your emergency fund and/or the ways that you had been choosing to live in order to make sure that you are generally living below the amount of your average case scenarios rather than spending more than that.

Thank you for adding further clarification to this; I consider this information very helpful and I know other people do too. A lot of people in this forum might actually fall into this category of unsteady cashflow and this information will be very helpful for those who will be able to digest and implement it.

From your explanation, it is obvious that a simple averaging of upper and lower limits might not be  as efficient as keeping in mind the worst-case situation. As student, it is easy getting $10 per week for low income country oike mine  but sometimes it gets as high as $50. For a student in this situation that want to start investing in Bitcoin, a DCA of $10 per week will be more feasible

It is better to invest in Bitcoin DCA method but since you are currently a student then Bitcoin is the best support for you to accumulate money. I think you should learn this method a bit because it will help you a lot in future. If you invest in bitcoins as a student, your portfolio will surely grow in your old age for long girls. And from here you can get help.

Learn and work

Source link: https://fredblog.stlouisfed.org/2021/05/savings-are-now-more-liquid-and-part-of-m1-money/?utm_source=series_page&utm_medium=related_content&utm_term=related_resources&utm_campaign=fredblog

[Rabata]

I like to think about the non-steady income in a couple of parts.

The first part is just figuring out what is your worst-case scenarios, what are your best case scenarios and what is your average... So then with that information you can try to project ahead, and most likely mostly using some combination of the worst-case scenarios and the average in order to figure out how much money you need to keep in your emergency fund in order to cover those situations in which the worst-case scenarios ended up playing out rather than the average case scenarios.

So, even though not necessarily likely worst-case scenarios could end up playing out for 6-12 months or more, and so the emergency cash fund should be able to cover the gap between what you need to live and what kind of income is coming in.  Hopefully, you are already spending (your monthly expenses) somewhere less than your average case scenario which should then cause for an ability to invest (or DCA) with part of the amount that you are living below your average case scenario. and sure if the worse case scenario persists for a long time, you may well end up needing to either reduce or eliminate your DCA purchases of bitcoin, but if you have planned in advance you should not necessarily need to stop your DCA, and for sure, you do not want to end up putting yourself in a position in which you end up having to sell any of your BTC during periods in which worse case scenarios are playing out.. which likely would mean that you had not sufficiently prepared in terms of your emergency fund and/or the ways that you had been choosing to live in order to make sure that you are generally living below the amount of your average case scenarios rather than spending more than that.

Thank you for adding further clarification to this; I consider this information very helpful and I know other people do too. A lot of people in this forum might actually fall into this category of unsteady cashflow and this information will be very helpful for those who will be able to digest and implement it.

From your explanation, it is obvious that a simple averaging of upper and lower limits might not be  as efficient as keeping in mind the worst-case situation. As student, it is easy getting $10 per week for low income country oike mine  but sometimes it gets as high as $50. For a student in this situation that want to start investing in Bitcoin, a DCA of $10 per week will be more feasible

It is better to invest in Bitcoin DCA method but since you are currently a student then Bitcoin is the best support for you to accumulate money. I think you should learn this method a bit because it will help you a lot in future. If you invest in bitcoins as a student, your portfolio will surely grow in your old age for long girls. And from here you can get help.

Learn and work

A student or a businessman or a job holder can collect bitcoins by following DCA if he wants. DCA can be more effective for students if they have the opportunity to earn some money on a regular basis as they have the potential to become a major asset before they start their career. Those students will definitely be able to become financially independent within a certain period of time than others because a student will have more time than others to grow his bitcoin portfolio which can be difficult for an employed person at times. So for those students who are aware and plan about Bitcoin accumulation through DCA and if they apply correctly that can help them get established in the student life.

[Hewlet]

I think it's great to buy some to hold and some to play a trader.