Buy the DIP, and HODL!

[JayJuanGee]

To me, I think the essence of all this which I think is best, is don't do more than yourself, invest with what you can do away with for a very long period of time, that's why the DCA accumulating strategy is the best because you will be accumulating Bitcoin through the DCA method either weekly or monthly according to your financial strength, and as long as you have a source of income to be funding the DCA accumulating strategy either weekly or monthly you wouldn't be compelled in tempering with your investment just because of some financial needs.

But if you are doing more than yourself, by investing more money, and part of the money that would have cover up for your well-being, at some point, when having a serious financial needs, and your emergency funds are not enough, you will be force to temper with your investment, before you know it, that will be the beginning of the end for that investment, because that will be how you will be eating it bit by bit till it runs out, so it's very important to invest according to your level or I say it like don't do more than yourself, just cut your coat according to your size when DCAing , then you are good to go.

Everyone needs to tailor his investment accordingly to his financial status and also the amount that would be comfort with, two persons might be earning equal amount and having equal financial stability but would be comfortable with different allocation, Mr A might be okay with an aggressive 25% weekly and Mr B might be okay with 10% weekly despite been at same level with Mr A and this might be due to each of them having different risk tolerance relating to investing in bitcoin or having all their value in only one asset.

You made a very good and interesting point but I want to point out one aspect of your statement that does not quite sit well with me. That is the aspect of using "risk tolerance" as a factor for investment. In the example you gave, it should not be ability to bear risk that should determine what percentage each of them will allocate to Bitcoin, rather it should be dependent on their individual needs. Using risk appetite as basis for determining the amount to allocate to Bitcoin might seem like Bitcoin is all about risk, a way of amplifying the risk of Bitcoin. So, needs is a better factor to consider and for this case, Mr A might have needs that requires up to 50% of his income while Mr B might have needs that requires just 30% of his income. Under these two scenarios, Mr B will have more leverage to allocate higher amount into Bitcoin than Mr A.

Meanwhile, when I said needs, I am referring to basic needs and any other thing of importance that cannot wait. These are the factors that can force an investor to sell his Bitcoin. Besides these needs, the other major consideration should be emergency funds which covers unforeseen circumstances.

Those are mere hypothetical to explain the mental situation of two different persons with equal needs and every other necessities in place. Mr A feels comfortable and okay with an aggressive 25% allocation to bitcoin and that doesn't seem to bother him or give him a sence of over allocation to bitcoin whereas Mr B feels okay with his 10% whimpy investment despite knowing he could allocate more to bitcoin.

I applaud you for playing around with various hypothetical persons and going back and forth to attempt to flesh out various considerations that might come into place depending on where a person is with his finances, yet within this one paragraph you seem to be mixing up ideas and framing them in confusing ways.  And, many times, guys are struggling to even consistently hold aside 10% of his income for investing, so it begins to be a bit unrealistic to be describing scenarios that guys have 50% or even 70% of their income available for investing, even though surely there are some people who are able to do that, but they tend to be exceptions rather than common kinds of scenarios... but it is possible, but not very realistic to be describing those kinds of outlier scenarios.. and maybe some of those were pushed more by @Moreno233 rather than by @teamsherry.

First, I would like to review that frequently a person can attempt to make a ballpark idea regarding how much of his income he is going to put into bitcoin, so maybe aiming for somewhere between 5% and 25% of his total income; however, he should not be able to come up with his exact target amount if he does not have some kind of an assessment of what his discretionary income is, so if his income and his expenses are almost the same, then he does not have any discretionary income, so he should not be investing into anything until he figures out how he can either increase his income and/or how to decrease his expenses so that he has a discretionary amount that he would be able to invest into bitcoin.

Of course, people with higher incomes have more abilities to actually make sure that they have some discretionary income, and sometimes folks with lower income have very few abilities to either increase their income or to cut their expenses because they are already living in such a way that they have little to no cushion... so those people cannot choose to invest into bitcoin or anything else until they figure out a way to increase or even create a situation in which they have discretionary income.

Second, I doubt that the concepts of whimpy versus aggressive have to do with how much you choose to invest, but instead they are choices about how much of your discretionary income that you invest.  So if you already figure out that on a monthly basis you have $2k coming in every month and you have $1,600 in expenses, so then you have figured out that you have $400 of discretionary income that you may well be able to invest into bitcoin, and so maybe the whimpy investor might invest $10 per week into bitcoin and the aggressive investor might invest $100 per week.. but of course, there are levels in between in terms of how much this person could choose to invest, and they might even choose to play it by ear, and some weeks they invest the least amount of $10 (by their own choice) and other weeks they choose to invest the maximum, but most of the weeks they choose to invest somewhere in the middle $50-$70, and so the higher that they are investing within their discretionary income, then the more aggressive that they are being, and if they have figured out all of their calculations correctly, then they would not be classified as overly aggressive, unless they were investing more than $100 per week and then putting themselves in a situation in which they are going above their discretionary income and therefore gambling and/or being reckless in terms of possibly putting themselves in a position that they might need some of the money that they had invested into bitcoin for their monthly expenses.

I made this hypothetical to picture that there is a risk or possibility that your investment in bitcoin might not do well or even go to zero and both persons knows and recognize this fact, this brings us to a point that everyone should invest money he won't miss cause its also possible for your investment not to do well, Mr B might before conscious of this and decides to have more cash than investing in bitcoin and Mr A choses otherwise.

I mostly agree with this part.

Those are mere hypothetical to explain the mental situation of two different persons with equal needs and every other necessities in place. Mr A feels comfortable and okay with an aggressive 25% allocation to bitcoin and that doesn't seem to bother him or give him a sence of over allocation to bitcoin whereas Mr B feels okay with his 10% whimpy investment despite knowing he could allocate more to bitcoin.

Another thing might be that Mr A and Mr B responsibilities are not the same, and Mr B have a high responsibility than Mr A which will make Mr B not to be able to invest 25% because that is more than his discretionary income. Another reason that is that Mr A might have a strong faith in bitcoin a d chose to buy aggressively using DCA method because he feels that this is the best opportunity for him to invest aggressively and increase his bitcoin faster. On the other hand Mr B might not have not have strong believe in bitcoin just like Mr A, and decided to invest only 10% of his income using DCA until he builds his believe and knowledge on bitcoin, he might decide to increase his amount.

The percentage of fund an individual can allocate to Bitcoin is really immaterial and if we want to work out a number for such, it will amount to a futile exercise. Individual responsibilities differs and there are no two person that have the same needs and the same responsibilities.

@JayJuanGee have helped a lot in explaining the important things to do as regard buying and holding Bitcoin. Such as using the DCA method while also making provisions for emergency funds. If we follow this process, every individual can easily work out what percentage of his funds to put into Bitcoin. How aggressive an investor should be depends on many other factors which I think should be topic for another day so we don't make it appear like competition.

I think that it can be helpful to attempt to describe concepts of whimpy versus aggressive, yet surely sometimes the context gets lost and for example, it might well make sense for some newbie investor into bitcoin to purposely start out whimpy in the way that he is investing into bitcoin, and only become more aggressive as he both gets used to investing into bitcoin and as he might be ensuring that he is maintaining a practice of building and keeping an emergency fund, a reserve and a float, and we likely realize that a person who has more cushion in his various forms of cash (whatever he calls them), he will have more abilities to be more aggressive because he is more informed about his situation, and yeah, the competition between kinds of investors and kinds of approaches may well more be suited to be a competition that a person has with himself rather than feeling any need to compete with anyone else, and maybe even if a guy might choose to compare various versions of himself, so he might be using terms such as whimpy versus aggressive in order to compare various versions of himself (or various approaches that he could choose to take) in terms of how much of his discretionary income that he might be using to invest into bitcoin or even other kinds of practices that he might choose in terms of when (and how much) within his own pay period to buy his BTC.

[sportbitcoin]

When it comes to bitcoin investment, we should not invest all of our money in it so that we will always be able to solve our financial needs when they arise.

This discussion has been treated more than ones here, so I believe every investors or a beginner should be able to understand the concept that keeps their investment healthy and running however I believe this is one of the reasons why at @JayJuanGee introduce the method and the reason why an investor should have an emergency funds and also a reserve funds was actually because of a situation like this so that with a proper utilization of it an investors could hardly run into a problem no matter how it may be, however just like you said is not an investment wise to put in everything you have on investment because with the lack emergency funds or reserve funds their is a big chance of getting into trouble on the process.

I think you need to follow some small rules for investing. If you rush to invest when you don't, you will face big losses. We need to know some good rules for investing and what are they.  Apply and invest.

We should invest only as much as we will not face any problem and after investing we can live happily and peacefully with our family. There are some people who think of investing with money loan. If they face loss after investing, then  I prepare to invest thoughtfully when I think about how they will repay the loan and how they will manage the family. If we want to do good all the time, we must have a good interest in investing.

[Rustam Meraj]

Your right about all that but I think you seem to mis understand the hypothetical, in this case it is not about needs or disposable income available it's more about two different investors with equal financial situation and equal discretion income and disposable income that choses to allocate different percentage and that is due to the risk or proximity of the investment not doing well.

Let me explain as I've understood.

MR A Understands the fact that bitcoin has a probability of not giving him any returns or going to zero and still choses to give 25% to bitcoin without putting himself on any pressure and is totally comfortable with it and it does not bother him, but MR B despite being in the same situation like Mr A doesn't go well with having too much in bitcoin and rather decides that it would be better to have only 10% in bitcoin and have the rest in cash.

You see they both have everything equal on both sides but they don't chose the same allocation to bitcoin because they don't both agree that it would be good to be aggressive in bitcoin based on the fact that it could also not give any returns and that should be seen as risk tolerance.

In both cases there is risk level in mattering. And you are right that Mr A has more confidence about Bitcoin and he really believes in. So he is putting 25% of his income in Bitcoin. And I am sure if he believes in Bitcoin so definitely he will be in huge profit at certain point. Mr  B will also be in profit but due to low investment he can't get much like Mr A will get.

That is the game of mind. If your mind is saying you shouldn't invest much just because of loss fear so you can't invest much.
But if you believe on anything you don't listen mind you just invest in it and wait for the better time.

[boty]

I think you need to follow some small rules for investing. If you rush to invest when you don't, you will face big losses. We need to know some good rules for investing and what are they.  Apply and invest.

We should invest only as much as we will not face any problem and after investing we can live happily and peacefully with our family. There are some people who think of investing with money loan. If they face loss after investing, then  I prepare to invest thoughtfully when I think about how they will repay the loan and how they will manage the family. If we want to do good all the time, we must have a good interest in investing.

Of course, it is very important to be able to consider various things before deciding to enter an investment and also to have good planning so that we can carry out investments that can provide benefits from the investments we make.

Indeed, there is nothing wrong with deciding to invest as much as possible in order to have a happy life in the future, but we also need to leave savings for the needs we need because we don't know for sure when we will have these needs so we don't have to take the funds we have. we invest for necessary needs.

[Essential10]

I think you need to follow some small rules for investing. If you rush to invest when you don't, you will face big losses. We need to know some good rules for investing and what are they.  Apply and invest.

We should invest only as much as we will not face any problem and after investing we can live happily and peacefully with our family. There are some people who think of investing with money loan. If they face loss after investing, then  I prepare to invest thoughtfully when I think about how they will repay the loan and how they will manage the family. If we want to do good all the time, we must have a good interest in investing.

It's important to follow the rules, of course, but I think the most important thing is how well you can continue to invest the wealth you invest in the future. If you can regularly add money to invest your assets then you can continue the investment process as per the rules.
Of course, one should invest for future life. Start investing with courage, but don't show courage where you have to invest through a loan process. If you are a normal person then you cannot take big loan, even if you continue investment process with small loan money in long term investment process you will naturally face big loss. Of course we have to focus on additional income projects instead of focusing on loan projects, from where money can be earned and money can be invested. If you have a strong interest in investing then you must find new small income sources, small income projects will collectively grow into a big income source in the future. Investing can only proceed when the incoming sources work consistently.

[Sim_card]

When it comes to bitcoin investment, we should not invest all of our money in it so that we will always be able to solve our financial needs when they arise.

This discussion has been treated more than ones here, so I believe every investors or a beginner should be able to understand the concept that keeps their investment healthy and running however I believe this is one of the reasons why at @JayJuanGee introduce the method and the reason why an investor should have an emergency funds and also a reserve funds was actually because of a situation like this so that with a proper utilization of it an investors could hardly run into a problem no matter how it may be, however just like you said is not an investment wise to put in everything you have on investment because with the lack emergency funds or reserve funds their is a big chance of getting into trouble on the process.

I think you need to follow some small rules for investing. If you rush to invest when you don't, you will face big losses. We need to know some good rules for investing and what are they.  Apply and invest.

We should invest only as much as we will not face any problem and after investing we can live happily and peacefully with our family. There are some people who think of investing with money loan. If they face loss after investing, then  I prepare to invest thoughtfully when I think about how they will repay the loan and how they will manage the family. If we want to do good all the time, we must have a good interest in investing.

Investing in bitcoin is not like a physical business, that you can take loan for in order to make profit after some years and pay back the loan. That cannot work on bitcoin investment because bitcoin is volatile, and the only way you can make profit in bitcoin with rest of mind and peace, is when you invest and hodli for a long time. Taking loan to invest in bitcoin is from fry pan to fire, because when your loan is due, you must pay up or else you will be arrested or given additional years, depending on you and the loan giver understanding and agreement, but you will also service the loan or the percentage will increase. If bitcoin is in the bear market or anytime bitcoin price dips, you might have high blood pressure, and your health will be at stake. In fact, so many disadvantages that I didn't even mentioned on taking loan to invest in bitcoin.

Bitcoin investment is done for the future, because that is when bitcoin will have shown itself to the whole world that she is King of wealth, and a lot of investors that bought earlier and now, that were able to build and grow their bitcoin stash without selling will benefit a lot. This is why if you don't have your discretionary income, there is no need to invest in bitcoin. This is because it is better that you use your own money that you have assigned to buy bitcoin weekly or monthly regularly using DCA strategy, so that you can start building up your bitcoin investment portfolio gradually nonstop for a long period of time. You will be investing with ease and without tension, as long as you have your emergency funds, reserve funds and floats to take care of whatever expenses. If you don't have money, you need to get something doing to give you income, and if your income is small that you do not have any discretionary income after taking care of important needs. You should find a second means of income, so that you can have a discretionary income to invest in bitcoin using DCA method which allows you to buy bitcoin at any price level. Regular buying is very important.

[Marvelockg]

When it comes to bitcoin investment, we should not invest all of our money in it so that we will always be able to solve our financial needs when they arise.

This discussion has been treated more than ones here, so I believe every investors or a beginner should be able to understand the concept that keeps their investment healthy and running however I believe this is one of the reasons why at @JayJuanGee introduce the method and the reason why an investor should have an emergency funds and also a reserve funds was actually because of a situation like this so that with a proper utilization of it an investors could hardly run into a problem no matter how it may be, however just like you said is not an investment wise to put in everything you have on investment because with the lack emergency funds or reserve funds their is a big chance of getting into trouble on the process.

I think you need to follow some small rules for investing. If you rush to invest when you don't, you will face big losses. We need to know some good rules for investing and what are they.  Apply and invest.

We should invest only as much as we will not face any problem and after investing we can live happily and peacefully with our family. There are some people who think of investing with money loan. If they face loss after investing, then  I prepare to invest thoughtfully when I think about how they will repay the loan and how they will manage the family. If we want to do good all the time, we must have a good interest in investing.

investing with anything that's related to a loaned money is directing inciting bad debt on yourself and money that's loaned in itself has a specific date you're supposed to pay it back which means that your investment timeframe is totally dependent on how long the owner of the money is willing to allow you access to it and that makes it a bad source of bitcoin investment option as it won't encourage you to HODL for the long term and if you're only able to buy your Bitcoin from loaned money, it directing means you will not be able to continue buying more Bitcoin and that you have a combination of so many issues you've got to fix ranging from payment of debt, sorting out emergency funds and even being able to take care of yourself while still accumilating your Bitcoin and these will all go put you in a tight corner where you might be forced to sell off your holding at a time that's far below your target.

As much as it's necessary to think about investing into Bitcoin, it's also necessary to know that the source of our investment should primarily come from us and not from a third party of any kind. Maybe some bunch of motivational speakers like Robert kiyosaki that are of the school of thought that you can always get yourself in debt just so you can invest into real estate or those kind of shit might have sent a wrong message to some folks to believing you can take up a loan to buy Bitcoin but that's just mere shit. The idea of using the DCA methord in stacking up Bitcoin has made it possible for even the low class to get some chunk of Bitcoin without necessary getting it through loan. It's even better to DCA with as low as $50 per week than buying $2k worth of Bitcoin with a loaned money you will be required to pay back in a small time frame of say six months or so.

[Barikui1]

To me, I think the essence of all this which I think is best, is don't do more than yourself, invest with what you can do away with for a very long period of time, that's why the DCA accumulating strategy is the best because you will be accumulating Bitcoin through the DCA method either weekly or monthly according to your financial strength, and as long as you have a source of income to be funding the DCA accumulating strategy either weekly or monthly you wouldn't be compelled in tempering with your investment just because of some financial needs.

But if you are doing more than yourself, by investing more money, and part of the money that would have cover up for your well-being, at some point, when having a serious financial needs, and your emergency funds are not enough, you will be force to temper with your investment, before you know it, that will be the beginning of the end for that investment, because that will be how you will be eating it bit by bit till it runs out, so it's very important to invest according to your level or I say it like don't do more than yourself, just cut your coat according to your size when DCAing , then you are good to go.

Everyone needs to tailor his investment accordingly to his financial status and also the amount that would be comfort with, two persons might be earning equal amount and having equal financial stability but would be comfortable with different allocation, Mr A might be okay with an aggressive 25% weekly and Mr B might be okay with 10% weekly despite been at same level with Mr A and this might be due to each of them having different risk tolerance relating to investing in bitcoin or having all their value in only one asset.

You made a very good and interesting point but I want to point out one aspect of your statement that does not quite sit well with me. That is the aspect of using "risk tolerance" as a factor for investment. In the example you gave, it should not be ability to bear risk that should determine what percentage each of them will allocate to Bitcoin, rather it should be dependent on their individual needs. Using risk appetite as basis for determining the amount to allocate to Bitcoin might seem like Bitcoin is all about risk, a way of amplifying the risk of Bitcoin. So, needs is a better factor to consider and for this case, Mr A might have needs that requires up to 50% of his income while Mr B might have needs that requires just 30% of his income. Under these two scenarios, Mr B will have more leverage to allocate higher amount into Bitcoin than Mr A.

Meanwhile, when I said needs, I am referring to basic needs and any other thing of importance that cannot wait. These are the factors that can force an investor to sell his Bitcoin. Besides these needs, the other major consideration should be emergency funds which covers unforeseen circumstances.

Those are mere hypothetical to explain the mental situation of two different persons with equal needs and every other necessities in place. Mr A feels comfortable and okay with an aggressive 25% allocation to bitcoin and that doesn't seem to bother him or give him a sence of over allocation to bitcoin whereas Mr B feels okay with his 10% whimpy investment despite knowing he could allocate more to bitcoin.

I applaud you for playing around with various hypothetical persons and going back and forth to attempt to flesh out various considerations that might come into place depending on where a person is with his finances, yet within this one paragraph you seem to be mixing up ideas and framing them in confusing ways.  And, many times, guys are struggling to even consistently hold aside 10% of his income for investing, so it begins to be a bit unrealistic to be describing scenarios that guys have 50% or even 70% of their income available for investing, even though surely there are some people who are able to do that, but they tend to be exceptions rather than common kinds of scenarios... but it is possible, but not very realistic to be describing those kinds of outlier scenarios.. and maybe some of those were pushed more by @Moreno233 rather than by @teamsherry.

First, I would like to review that frequently a person can attempt to make a ballpark idea regarding how much of his income he is going to put into bitcoin, so maybe aiming for somewhere between 5% and 25% of his total income; however, he should not be able to come up with his exact target amount if he does not have some kind of an assessment of what his discretionary income is, so if his income and his expenses are almost the same, then he does not have any discretionary income, so he should not be investing into anything until he figures out how he can either increase his income and/or how to decrease his expenses so that he has a discretionary amount that he would be able to invest into bitcoin.

Of course, people with higher incomes have more abilities to actually make sure that they have some discretionary income, and sometimes folks with lower income have very few abilities to either increase their income or to cut their expenses because they are already living in such a way that they have little to no cushion... so those people cannot choose to invest into bitcoin or anything else until they figure out a way to increase or even create a situation in which they have discretionary income.

Second, I doubt that the concepts of whimpy versus aggressive have to do with how much you choose to invest, but instead they are choices about how much of your discretionary income that you invest.  So if you already figure out that on a monthly basis you have $2k coming in every month and you have $1,600 in expenses, so then you have figured out that you have $400 of discretionary income that you may well be able to invest into bitcoin, and so maybe the whimpy investor might invest $10 per week into bitcoin and the aggressive investor might invest $100 per week.. but of course, there are levels in between in terms of how much this person could choose to invest, and they might even choose to play it by ear, and some weeks they invest the least amount of $10 (by their own choice) and other weeks they choose to invest the maximum, but most of the weeks they choose to invest somewhere in the middle $50-$70, and so the higher that they are investing within their discretionary income, then the more aggressive that they are being, and if they have figured out all of their calculations correctly, then they would not be classified as overly aggressive, unless they were investing more than $100 per week and then putting themselves in a situation in which they are going above their discretionary income and therefore gambling and/or being reckless in terms of possibly putting themselves in a position that they might need some of the money that they had invested into bitcoin for their monthly expenses.

Thank you sir, for breaking it down to the lowest understanding, because this is the exact situation I found myself in late last year that I started buying Bitcoin true the dca accumulating method,  during that period due to how excited I was as a newbie not having much knowledge of Bitcoin and how it works, I was in the opinion that the more Bitcoin in my possession, the more money I will make, not even knowing that holding is another thing all together, so that spur me to invest more than I can afford from my monthly salary, which wasn't that easy for me, because toward the end of the month when I can no longer fend for my basic needs, I will just have to fall back to my holding, and withdraw a fraction of my holding just to survive till I have been paid my monthly salary, and of a truth, that actions I took limited me so much.

So with time, I started gaining knowledge from this forum about Bitcoin and  how to go about it, so the moment I stop buying aggressively, and I started buying according to what I can afford, and the money for my monthly upkeep being kept aside, I observe that I no longer struggled to consolidate to my holding as before, so that's why I believe that if an investor can invest according to money he can do away without, holding wouldn't be that difficult, as long as his source of income never runs dry.

[Justbillywitt]

Your right about all that but I think you seem to mis understand the hypothetical, in this case it is not about needs or disposable income available it's more about two different investors with equal financial situation and equal discretion income and disposable income that choses to allocate different percentage and that is due to the risk or proximity of the investment not doing well.

Let me explain as I've understood.

MR A Understands the fact that bitcoin has a probability of not giving him any returns or going to zero and still choses to give 25% to bitcoin without putting himself on any pressure and is totally comfortable with it and it does not bother him, but MR B despite being in the same situation like Mr A doesn't go well with having too much in bitcoin and rather decides that it would be better to have only 10% in bitcoin and have the rest in cash.

You see they both have everything equal on both sides but they don't chose the same allocation to bitcoin because they don't both agree that it would be good to be aggressive in bitcoin based on the fact that it could also not give any returns and that should be seen as risk tolerance.

In both cases there is risk level in mattering. And you are right that Mr A has more confidence about Bitcoin and he really believes in. So he is putting 25% of his income in Bitcoin. And I am sure if he believes in Bitcoin so definitely he will be in huge profit at certain point. Mr  B will also be in profit but due to low investment he can't get much like Mr A will get.

That is the game of mind. If your mind is saying you shouldn't invest much just because of loss fear so you can't invest much.
But if you believe on anything you don't listen mind you just invest in it and wait for the better time.

We don't determine who believe more in bitcoin by the size of our investments, what really determine the size of our investment is our financial capacity. Two investors can have same trust and believe in bitcoin but one with more money will have a bigger portfolio because he financial capacity is more than the other one who has less portfolio, but that doesn't mean that the  one with less portfolio in bitcoin doesn't believe in bitcoin. It's all about staying within your limit and not over doing yourself. You have to understand that at the end of the day it's about investing what you can be able to lose that will not affect your life negatively.

[Mayor of ogba]

-snip-

Now that the price of bitcoin is low the goal is to buy more Bitcoin and hodl because it will surely yield more profit. When you believe in hodling their won't be any feeling of doubt of bitcoin.

But unfortunately, not all of them can do it. Lack of budget is the most common problem that thwarts accumulation plans for every investor, they also don't need to force themselves to get a budget by any means just because they want to accumulate on dip. You can accumulate at any time as long as you have a budget, but I don't think you should force it.

Consider that you still need a lot of money to meet your daily, weekly and monthly needs. In fact, you still have to consider unexpected costs, bills and so on, so there's nothing you need to force even if the price is being corrected.

By the way, bitcoin fell by 3.6% in the last 24 hours. This may be the time to do some accumulation if you have a budget.

When it comes to bitcoin investment, we should not invest all of our money in it so that we will always be able to solve our financial needs when they arise. We all know that not all investors are financially okay with buying the bitcoin dip, and if they are concerned about buying the dip, they might temper their emergency funds to buy the dip because their income source can't cover their expenses. And when an emergency happens, they will depend on their bitcoin investment to solve it. It is not easy to hold bitcoin for the long term, so we need to adopt a strategy that will allow us to accumulate bitcoin without struggling to solve our daily problems. This is why it is good to accumulate bitcoin with the DCA strategy because you will make provisions for an emergency fund that will allow you to take care of your unforeseen problems and also accumulate bitcoin even when it is in a dip.

It somehow put you on huge risk if you invest all your money on it since you might really be affected so bad once you see a correction happened in the market which could lead to bad decision you take. So much better only to spend the extra amount you have and try to work on it to make your balance grow.

If people invest all their money in a bitcoin investment, it is not only a dip market that will make them make a bad decision with their bitcoin investment. Since they have invested all their money in bitcoin, when their financial needs arise, they will not wait for bitcoin to dip before they make bad decisions. From the day they can't afford something necessary in their lives, they will depend on their bitcoin investment to afford it. There was a guy who sold his bitcoin investment to get himself a computer because he had invested all of his money in bitcoin.

[Ambatman]

Snip

Please check your quoting. It's difficult to see which and which is your personal thought.
 

About holding though, I believe we all aware about why it is been advised to hold
Trading is a zigzag way of falling deeper into losses without knowing.
HODL helps circumvent this. In my country land is a necessity
It's something everybody wants /need to have to be branded successful.
Take owning a Bitcoin as a necessity
A need rather than a want. It would help you hold for a very long time.

Mind you everybody have their own plans based on various circumstances so there's no definite time for how long one should hold
It's dictated by our personal plan but would you sell all your land when you know you would later need it?
Don't forget unlike Bitcoin Fiat is a depreciating asset
A year or two ago, #150 could buy a bag of water (20pcs) now it could barely afford 5.
Sometimes I go to old thread especially one about Pizza and saw that Theymos sold some amount of Bitcoins for couple of dollars
Imagine then he held
This would be the same thing people years to come would say when they join the forum.
They would see people selling their Bitcoin for $70K, $100K and be like imagine this people held.
 
Don't go all in in any investment like has been mentioned countless times
Invest what you can afford to loss
Take it like you paying a bill for a service you enjoying.
Currently ain't really focused on Bitcoins price nor have I checked how much have accumulated
I like good surprises, I want to check one day and be like "How did I get this rich "Lol.
I know my average price but don't to check how many unit I have.
Nobody is saying don't collect profit but make sure the reason is worth it.
I do trade once in a while to get the adrenaline running but a fact is I detest it
A fancy way to make losses or minute gains.
A living proof that trading is not the best in a long run be an investor rather than a Trader.
Personal opinion. Thanks for reading I guess

[Miles2006]

Your right about all that but I think you seem to mis understand the hypothetical, in this case it is not about needs or disposable income available it's more about two different investors with equal financial situation and equal discretion income and disposable income that choses to allocate different percentage and that is due to the risk or proximity of the investment not doing well.

Let me explain as I've understood.

MR A Understands the fact that bitcoin has a probability of not giving him any returns or going to zero and still choses to give 25% to bitcoin without putting himself on any pressure and is totally comfortable with it and it does not bother him, but MR B despite being in the same situation like Mr A doesn't go well with having too much in bitcoin and rather decides that it would be better to have only 10% in bitcoin and have the rest in cash.

You see they both have everything equal on both sides but they don't chose the same allocation to bitcoin because they don't both agree that it would be good to be aggressive in bitcoin based on the fact that it could also not give any returns and that should be seen as risk tolerance.

In both cases there is risk level in mattering. And you are right that Mr A has more confidence about Bitcoin and he really believes in. So he is putting 25% of his income in Bitcoin. And I am sure if he believes in Bitcoin so definitely he will be in huge profit at certain point. Mr  B will also be in profit but due to low investment he can't get much like Mr A will get.

That is the game of mind. If your mind is saying you shouldn't invest much just because of loss fear so you can't invest much.
But if you believe on anything you don't listen mind you just invest in it and wait for the better time.

We don't determine who believe more in bitcoin by the size of our investments, what really determine the size of our investment is our financial capacity. Two investors can have same trust and believe in bitcoin but one with more money will have a bigger portfolio because he financial capacity is more than the other one who has less portfolio, but that doesn't mean that the  one with less portfolio in bitcoin doesn't believe in bitcoin. It's all about staying within your limit and not over doing yourself. You have to understand that at the end of the day it's about investing what you can be able to lose that will not affect your life negatively.

From my understanding, an investor faith in Bitcoin can determine buying Bitcoin agressively or rather with a little amount. From the illustration above, we have two set of investors, investor A and B whereby both investor choose to invest separately despite their financial status being equal. Personally, when it comes to investment choice one ought to think careful and their allocation monthly or weekly should be in position, for example I don't expect anyone to buy Bitcoin using 100% monthly or weekly all in the name of being aggressive besides from my study people who invest like this end up selling before reaching their target. Note, my approach towards Bitcoin investment will determine my believe and at the same time investor still have responsibilities, needs to settle, holding an emergency fund etc so by the time an investor will consider all this factor monthly or weekly will definitely determine their accumulation approach.

[Iamgoat]

It's important to follow the rules, of course, but I think the most important thing is how well you can continue to invest the wealth you invest in the future. If you can regularly add money to invest your assets then you can continue the investment process as per the rules.
Of course, one should invest for future life. Start investing with courage, but don't show courage where you have to invest through a loan process. If you are a normal person then you cannot take big loan, even if you continue investment process with small loan money in long term investment process you will naturally face big loss. Of course we have to focus on additional income projects instead of focusing on loan projects, from where money can be earned and money can be invested. If you have a strong interest in investing then you must find new small income sources, small income projects will collectively grow into a big income source in the future. Investing can only proceed when the incoming sources work consistently.

If I am in a position to advise a friend, I will strongly advise them not to invest with loans. Especially if they are not currently managing businesses with assets that can be replaced with the initial loan taken as per the value of the loan meant to be returned. If not for big businesses who have multiple streams of income and insurance, taking loan for another investment should be discouraged. Otherwise, I will advise my friend to invest with the profits they've realized from their existing businesses, however small. Every businessman or woman has a vision, such visions can be translated as one's business foresight for the future. But, come to think about it, the future is just an imagination which every one builds in their subconscious mind. Planning for the future is essential, but planning for the present is even more important. In a nutshell, whatever decision you intend to take for the future, should not be detrimental to the present.

[letteredhub]

When it comes to bitcoin investment, we should not invest all of our money in it so that we will always be able to solve our financial needs when they arise.

This discussion has been treated more than ones here, so I believe every investors or a beginner should be able to understand the concept that keeps their investment healthy and running however I believe this is one of the reasons why at @JayJuanGee introduce the method and the reason why an investor should have an emergency funds and also a reserve funds was actually because of a situation like this so that with a proper utilization of it an investors could hardly run into a problem no matter how it may be, however just like you said is not an investment wise to put in everything you have on investment because with the lack emergency funds or reserve funds their is a big chance of getting into trouble on the process.

It is as a result of the problems of emergency needs that every investor is advised to make room for savings aside while carrying on with the DCA  investment plan. An investor is more likely to make success in his investment having an existing savings plus a reliable income source as it is a dyke against challenges that could make investor tamper with his investment. A good investor should be able to delineate a systematically way of investing because it is out of a lack of knowledge that newbie investors do go all in while investing in bitcoin.

[JayJuanGee]

[edited out]

Thank you sir, for breaking it down to the lowest understanding, because this is the exact situation I found myself in late last year that I started buying Bitcoin true the dca accumulating method,  during that period due to how excited I was as a newbie not having much knowledge of Bitcoin and how it works, I was in the opinion that the more Bitcoin in my possession, the more money I will make, not even knowing that holding is another thing all together, so that spur me to invest more than I can afford from my monthly salary, which wasn't that easy for me, because toward the end of the month when I can no longer fend for my basic needs, I will just have to fall back to my holding, and withdraw a fraction of my holding just to survive till I have been paid my monthly salary, and of a truth, that actions I took limited me so much.

So with time, I started gaining knowledge from this forum about Bitcoin and  how to go about it, so the moment I stop buying aggressively, and I started buying according to what I can afford, and the money for my monthly upkeep being kept aside, I observe that I no longer struggled to consolidate to my holding as before, so that's why I believe that if an investor can invest according to money he can do away without, holding wouldn't be that difficult, as long as his source of income never runs dry.

Yes.. so one level of mistake of overinvesting is not to project out your expenses well enough, so then your BTC ends up serving as an emergency fund, which is not what you want to have, whether the BTC price is up or down, you want to mostly be keep building your BTC stack, even if you are in profits, especially if you are still in earlier times of building your stash.

So yeah having various cashfloats can help you to never have to touch your BTC, except as a very last resort.. and so the way that you structure your cash reserves can vary, and personally, I think that there should be some cash reserves that you never have to touch almost no matter what, except a true emergency.. and if you are already anticipating irregular cashflows (income), then that is not an emergency, and if you already have bad health and you expect that you might have some extra medical expenses, those are not emergencies either..... so frequently cash reserves and cash floats will be used to address cashflow irregularities or expense irregularities that you may or may not anticipate, and so you might go 20-30 years or more without ever touching your actual emergency funds, and so if you never have to touch your emergency fund, you are also never going to have to touch your bitcoin, so yeah, it can take a long ass time to build all of these kinds of reserves that may also allow you to invest more aggressively into bitcoin once you have various kinds of cash reserves in place.. ..

So the BIG tests of whether you are doing these things well and/or correctly will come during various kinds of times in which many negative things might be happening and you are still able to hold onto your bitcoin and maybe even continue to buy BTC when everyone else around you seem to be panicking.. .but none of what I am saying should necessarily stop any normie from regularly, consistently and persistently buying BTC through something like DCA and other methods, yet there surely is a lot of importance in making sure that you are keeping some cash cushions and having some decent ideas about how your income and your expenses might change from time to time, and if you decide to spend money on something that is not of your normal behaviors, you might really have to account that your purchase could end up affecting other things that you do down the road and even screw up some of your abilities to continue to buy bitcoin if you have not structured your various purchases, including bitcoin, in ways that also account for your keeping various cash cushions in place that you would use those cash cushions prior to your emergency fund and prior to your even having to come close to touching your BTC.

From my understanding, an investor faith in Bitcoin can determine buying Bitcoin agressively or rather with a little amount. From the illustration above, we have two set of investors, investor A and B whereby both investor choose to invest separately despite their financial status being equal. Personally, when it comes to investment choice one ought to think careful and their allocation monthly or weekly should be in position, for example I don't expect anyone to buy Bitcoin using 100% monthly or weekly all in the name of being aggressive besides from my study people who invest like this end up selling before reaching their target. Note, my approach towards Bitcoin investment will determine my believe and at the same time investor still have responsibilities, needs to settle, holding an emergency fund etc so by the time an investor will consider all this factor monthly or weekly will definitely determine their accumulation approach.

Surely if someone is investing 100% of his discretionary income into bitcoin that might be on the border of too aggressive because he might not be adequately accounting either his income or expenses, so there would be no room for mistakes, unless, he were to invest that amount at the end of the pay period rather than at the beginning, meaning that if he were to only make his investment of all his extra money right before his next check had arrived, so then he would be at least eliminating the possibility for mistakes, so then his next period starts again after his check for the next pay period arrived.

There could be some folks who say that they are doing 100% but they really are not because they are keeping various kinds of cash cushions, but then they could still be accurate in claiming that once they calculate their various kinds of cash cushions are in place, then they will invest 100% of their remaining cash into bitcoin, whether that is weekly or some other period of time of spreading out the buys.

[Promocodeudo]

At this particular point, I really don't think it's logical to be timing the market now because as an investor that we are, our primary concern now should have been how much Bitcoin can we accumulate, so as not to be left behind? So if we decide to be timing the market, it's a complete waste of time, because the bull run can start anytime and you will start feeling regret for not buying and accumulating now that is the best time to buy, so in order not to be in that kind of space, it's best we utilize this opportunity by accumulating more Bitcoin through the DCA method regardless of the current price now, because the amount of Bitcoin in your possession will definitely define how profitable you are going be, during the bull season, and another thing we should not forget is, we should only be thinking long term, because it's only a long term holder will definitely reap the full dividend of his or her holdings.

Their is no need timing the market because it is not a way of making profit from the market because the market can't be predicted.  This is the time to buy as much as you can and wait till the bull market gives the kind of profit you want. Real investors don't time the market because they know they will definitely get what they want from the market.  Most people that have the habit of timing and predicting the market are just so desperate to make money quick.

Now that the price of bitcoin is low the goal is to buy more Bitcoin and hodl because it will surely yield more profit. When you believe in hodling their won't be any feeling of doubt of bitcoin.

Market prediction is not part of Bitcoin investment, to me it is just a waste of energy and time, I think what every investor should be doing at all time is to keep hustling to acquire more asset and keep holding, the predictions that we see people do is just for trying of luck and at the end of the day once it happen the exact way the predicted it, they will see themselves as gurus in the system not knowing that that's the direction of the market at that moment, it has been said severally that Bitcoin price is been controlled by the market influx, though some events too can excalate the price to a profitable level but the truth is that this event may not really have an immediate effect on the price but gradually it will, this is why most people expect bullrun and halving to have a noticeable change in the price of Bitcoin and other cryptocurrency but it didn't happen that way but rather the market started creating a kind of panick that can lead some imvestor making a regrettable decision, lets keep holding and acquiring more assets to keep our portfolio more active.

[Cryptoprincess101]

Your right about all that but I think you seem to mis understand the hypothetical, in this case it is not about needs or disposable income available it's more about two different investors with equal financial situation and equal discretion income and disposable income that choses to allocate different percentage and that is due to the risk or proximity of the investment not doing well.

Let me explain as I've understood.

MR A Understands the fact that bitcoin has a probability of not giving him any returns or going to zero and still choses to give 25% to bitcoin without putting himself on any pressure and is totally comfortable with it and it does not bother him, but MR B despite being in the same situation like Mr A doesn't go well with having too much in bitcoin and rather decides that it would be better to have only 10% in bitcoin and have the rest in cash.

You see they both have everything equal on both sides but they don't chose the same allocation to bitcoin because they don't both agree that it would be good to be aggressive in bitcoin based on the fact that it could also not give any returns and that should be seen as risk tolerance.

In both cases there is risk level in mattering. And you are right that Mr A has more confidence about Bitcoin and he really believes in. So he is putting 25% of his income in Bitcoin. And I am sure if he believes in Bitcoin so definitely he will be in huge profit at certain point. Mr  B will also be in profit but due to low investment he can't get much like Mr A will get.

That is the game of mind. If your mind is saying you shouldn't invest much just because of loss fear so you can't invest much.
But if you believe on anything you don't listen mind you just invest in it and wait for the better time.

We don't determine who believe more in bitcoin by the size of our investments, what really determine the size of our investment is our financial capacity. Two investors can have same trust and believe in bitcoin but one with more money will have a bigger portfolio because he financial capacity is more than the other one who has less portfolio, but that doesn't mean that the  one with less portfolio in bitcoin doesn't believe in bitcoin. It's all about staying within your limit and not over doing yourself. You have to understand that at the end of the day it's about investing what you can be able to lose that will not affect your life negatively.

This is part of the reasons why some persons fail in life because they want to be in same measures with others without evaluating themselves if they can be able to endure what another person can endure. Investing in Bitcoin doesn't mean one needs to have huge amount before engaging oneself and it has been discussed severely that we should endeavour to invest what we can endure because unforeseen circumstances can happen and the reverse be the case so in such situations how can you be able to handle your emotions when you have sacrificed all your income in such an investment? that is why an alternative to your funds is necessary so that in a situation where things doesn't work the way you plan, the emergency funds can stand as a yardstick to make plan B and you continue with your investment journey because if you must grow in your investment, you must look for a way to continue and restrategize in a case where your initial plan failed.

[Salahmu]

From my understanding, an investor faith in Bitcoin can determine buying Bitcoin agressively or rather with a little amount. From the illustration above, we have two set of investors, investor A and B whereby both investor choose to invest separately despite their financial status being equal. Personally, when it comes to investment choice one ought to think careful and their allocation monthly or weekly should be in position, for example I don't expect anyone to buy Bitcoin using 100% monthly or weekly all in the name of being aggressive besides from my study people who invest like this end up selling before reaching their target. Note, my approach towards Bitcoin investment will determine my believe and at the same time investor still have responsibilities, needs to settle, holding an emergency fund etc so by the time an investor will consider all this factor monthly or weekly will definitely determine their accumulation approach.

Surely if someone is investing 100% of his discretionary income into bitcoin that might be on the border of too aggressive because he might not be adequately accounting either his income or expenses, so there would be no room for mistakes, unless, he were to invest that amount at the end of the pay period rather than at the beginning, meaning that if he were to only make his investment of all his extra money right before his next check had arrived, so then he would be at least eliminating the possibility for mistakes, so then his next period starts again after his check for the next pay period arrived.

There could be some folks who say that they are doing 100% but they really are not because they are keeping various kinds of cash cushions, but then they could still be accurate in claiming that once they calculate their various kinds of cash cushions are in place, then they will invest 100% of their remaining cash into bitcoin, whether that is weekly or some other period of time of spreading out the buys.

In as much as investing 100% could be risk or over investing but with this method you have explained I think it will be very difficult to get into trouble during the accumulation process because you have already eliminated any possible risk that could arise along the line, actually this method has been very helpful for so many investors today and funny enough I have make use of this method sometimes, especially when I'm very close to receiving my monthly salary and by then I have cleared all possible needs that would arise so I will then putting 100% percent of my available funds at that moment while waiting for the salary to come so that I could balance the equation and from their continues my DCA.

Actually I only use that method whenever I feel I'm free from any needs and my monthly salary is very close, however it takes a proper understanding for an investor not to make a mistake on this method because like you have explained that investing 100% is only good before the pay period so that they will not ran into trouble but funny enough most investors will still be aggressive trying to be greedy.

[Justbillywitt]

It's important to follow the rules, of course, but I think the most important thing is how well you can continue to invest the wealth you invest in the future. If you can regularly add money to invest your assets then you can continue the investment process as per the rules.
Of course, one should invest for future life. Start investing with courage, but don't show courage where you have to invest through a loan process. If you are a normal person then you cannot take big loan, even if you continue investment process with small loan money in long term investment process you will naturally face big loss. Of course we have to focus on additional income projects instead of focusing on loan projects, from where money can be earned and money can be invested. If you have a strong interest in investing then you must find new small income sources, small income projects will collectively grow into a big income source in the future. Investing can only proceed when the incoming sources work consistently.

If I am in a position to advise a friend, I will strongly advise them not to invest with loans. Especially if they are not currently managing businesses with assets that can be replaced with the initial loan taken as per the value of the loan meant to be returned. If not for big businesses who have multiple streams of income and insurance, taking loan for another investment should be discouraged. Otherwise, I will advise my friend to invest with the profits they've realized from their existing businesses, however small. Every businessman or woman has a vision, such visions can be translated as one's business foresight for the future. But, come to think about it, the future is just an imagination which every one builds in their subconscious mind. Planning for the future is essential, but planning for the present is even more important. In a nutshell, whatever decision you intend to take for the future, should not be detrimental to the present.

If it's taking loan to invest in bitcoin, I won't support that. Taking lone to invest in bitcoin is something that we shouldn't try, because you will be putting unnecessary pressure on yourself. What happen when your loan is ready for repayment and your bitcoin maturity date hasn't arrived and there is no money to pay back, you will definitely resort to selling your bitcoin in order to repay your creditors and all your efforts will become fruitless in the end. For me instead of someone borrowing money to invest in bitcoin, it's best the person dispose items and properties the person don't have much need for them anymore and raise substantial amount that can be used for the investment. It is better that way, a good investment is the one you make and have peace and rest of mind.

[Dailyscript]

Surely if someone is investing 100% of his discretionary income into bitcoin that might be on the border of too aggressive because he might not be adequately accounting either his income or expenses, so there would be no room for mistakes, unless, he were to invest that amount at the end of the pay period rather than at the beginning, meaning that if he were to only make his investment of all his extra money right before his next check had arrived, so then he would be at least eliminating the possibility for mistakes, so then his next period starts again after his check for the next pay period arrived.

There could be some folks who say that they are doing 100% but they really are not because they are keeping various kinds of cash cushions, but then they could still be accurate in claiming that once they calculate their various kinds of cash cushions are in place, then they will invest 100% of their remaining cash into bitcoin, whether that is weekly or some other period of time of spreading out the buys.

You are very right here! Investing 100% of discretionary income into Bitcoin is generally not advisable. This is because the investor is jeopardizing everything he earns thereby putting them on high risk since Bitcoin is a highly volatile asset. Another reason is because one should not put all his eggs in one basket, diversification, emergency fund, business and small savings is really important for an investor so that they wont get to tap into their investment. If a person invest all his discretionary income into Bitcoin he leaves no room for a safety net.

No matter the price action I feel that there will be more work opportunities in the future. It is good to use for something meaningful just like investing but not all of them into one thing. IMHO People should stop (especially beginners) converting their discretionary income into Bitcoin until they have achieved the necessary mental balance they need of multiples business, emergency funds and month budget expenses. These application does not imply to the rich because they have more than enough to invest and enough to remain.