Buy the DIP, and HODL!

[Justbillywitt]

I just entered this topic for about an hour, and I will start looking at the details from today. But I have been looking at this topic for an hour with ideas and my mind is useful enough to invest. I will start investing according to everyone's idea and make my investment long term.  Because everyone here says long term investment is only more profitable, I will definitely show you the scenario of investing with proof from the day I start investing. So I am interested enough to invest now.

There's no need to show us proof of your bitcoin investment when you start investing in bitcoin because it isn't advisable to show your bitcoin online so that you will not be attacked. If you invest with everyone's ideas, you will not hold your bitcoin for a long term because you will not have enough money left to take care of your unforeseen problems. As a newbie, I will advise you to invest in bitcoin with the DCA strategy so that you will be accumulating bitcoin and also take care of your emergencies as they arise. The DCA strategy will help to control the volatile part of bitcoin in your portfolio and also control your emotions in deciding when to buy bitcoin. With the DCA strategy, you can also buy bitcoin even if the price is increasing or decreasing.

To get something good we have to do the right thing at the right time. Every dip is a golden opportunity to buy bitcoins. “You can't afford to invest a lot of money at once?” No problem, you invest using the DCA method. Remember that, it is possible to earn big from Bitcoin, when our investment Portfolio  is high, and this investment Portfolio, we should grow as much as possible with each dip of Bitcoin. The higher our investment Portfolio, the higher the earning potential.

I divide my fund into three parts, first part I will invest, second part I will save for later investment, and third part emergency fund. Emergency fund is what I keep in case I invest and I don't have to sell the investment if I face danger. Because I don't earn normally, I am currently studying, so what I have saved for investment is the money taken from my parents for tiffin and some special purpose. I keep funds strictly for my most urgent needs and to meet the basic needs of people.

The second part that you kept that you will use to invest later, what's the logic behind it? Since you are not doing monthly or weekly DCA purchase, why didn't you invest it with the first investment, because I the best time to invest was yesterday. If you are doing a DCA on weekly or monthly basis it would have been a different case. The one you kept to invest later, what if procastination sets it and your attention is diverted and the money is used for something else. Or are you waiting for more dip before you can use the second part to invest? Waiting is dangerous, invest when the money is available and don't wait for a later date. You already had your emergency funds secured and that's good enough, the one that's left for investment, should go into investment immediately without delay. If we wait for tomorrow we might regret, wishing we entered all in when we got our first buy. 

[avp2306]

Technically you should not be using emergency funds to buy dips.. but you can use reserve funds.  Yeah of course people call these things different things, but the idea of emergency funds is to have money to live and to pay for your expense if an actual emergency takes place or if you lose your income for some reason, you have a little bit of breathing space.

Reserve funds would be extra money, so you should never dip into your emergency funds for anything other than needing to live because you ran out of other money.

I think this has been discussed some months back. Money that is kept for an emergency is not to invest in bitcoin and if anyone wants to invest in Bitcoin then extra funds Shou be made available if only the person is really ready to invest. There are some banking apps that one can use to lock funds by weekly, monthly and yearly. The person can choose the plan he wants and I normally select two plans to lock my funds in weekly and monthly because I don't know when the dip would come and if it comes, and fall under the weekly plan then I would use it to buy the dip and I will wait for the monthly plan again and once it unlocked I would use the money to buy the dip again. So with that you don't have to spend your emergency funds again.

Now if you buy the dip with the emergency money and something happens within the week and you don't have extra money to solve the emergency need, you have to make a sale of the bitcoin investment you initiated in the week to solve the emergency and if the dip is below the purchase price of bitcoin then you are at the losing side of the investment because you did plan well for the investment. Always keep the emergency funds down the emergency purpose and not buy the dip.

Any investor who is using his emergency fund to accumulate bitcoin when there's a dip is going against the rule of keeping an emergency fund before investing in bitcoin. That investor will never hold his bitcoin for the long term because, when an emergency hits him, he will not think twice about selling his bitcoin, even though he is at a loss to sort out his life. You know, before you start your day, you have to brush your teeth, and you wake up one morning and notice that your toothpaste is finished. That one is not an emergency because we know we are meant to make provisions for it. An emergency is when you have a delay in your weekly or monthly salary payment at the place of your work. You can use the money you kept for emergencies to live with until you receive your weekly or monthly salary payment. You should also replace the money when you receive your salary to make your emergency fund healthy enough to help you out for a long time.

No good investor that will see emergency fund as something to play with in as much as having the intention to hold long term is the aim of that investor, because is not a matter of using it and later replace back reason been that emergency is unforseen circumstances that can't give you sign before it take place

The example I gave in my post above is clear for you to know that a delay in someone's weekly or monthly salary payment is a good emergency that will make that person use his emergency fund to cover up until the person receives his salary. For instance, you used to receive your monthly payment at the end of each month, but something happened at the place of your work, and you got paid on the 10th of the new month. You will have no choice but to use your emergency fund to sort out your bills because you never expected that your salary payment would be delayed.

I understand your point regarding on that situation but actually the emergency fund should be the less option to be chosen by some individuals since they might doing the wrong thing on their investment since once they touch that funds for sure every time you think you want to buy something you will always resort to take that money and use it for unwanted things. That's why its better to forget about the emergency funds and always use your extra funds on investment. If there's a delay of salary will occur then delay your investment because there's no race on accumulating of bitcoin since any time you can buy this whenever you have funds to use. We always have a choice and for sure salary will not be delayed for months since usually the delay only take for few days so with that there's no really point to use our emergency fund just to buy bitcoin.

[Miles2006]

Technically you should not be using emergency funds to buy dips.. but you can use reserve funds.  Yeah of course people call these things different things, but the idea of emergency funds is to have money to live and to pay for your expense if an actual emergency takes place or if you lose your income for some reason, you have a little bit of breathing space.

Reserve funds would be extra money, so you should never dip into your emergency funds for anything other than needing to live because you ran out of other money.

I think this has been discussed some months back. Money that is kept for an emergency is not to invest in bitcoin and if anyone wants to invest in Bitcoin then extra funds Shou be made available if only the person is really ready to invest. There are some banking apps that one can use to lock funds by weekly, monthly and yearly. The person can choose the plan he wants and I normally select two plans to lock my funds in weekly and monthly because I don't know when the dip would come and if it comes, and fall under the weekly plan then I would use it to buy the dip and I will wait for the monthly plan again and once it unlocked I would use the money to buy the dip again. So with that you don't have to spend your emergency funds again.

Now if you buy the dip with the emergency money and something happens within the week and you don't have extra money to solve the emergency need, you have to make a sale of the bitcoin investment you initiated in the week to solve the emergency and if the dip is below the purchase price of bitcoin then you are at the losing side of the investment because you did plan well for the investment. Always keep the emergency funds down the emergency purpose and not buy the dip.

Any investor who is using his emergency fund to accumulate bitcoin when there's a dip is going against the rule of keeping an emergency fund before investing in bitcoin. That investor will never hold his bitcoin for the long term because, when an emergency hits him, he will not think twice about selling his bitcoin, even though he is at a loss to sort out his life. You know, before you start your day, you have to brush your teeth, and you wake up one morning and notice that your toothpaste is finished. That one is not an emergency because we know we are meant to make provisions for it. An emergency is when you have a delay in your weekly or monthly salary payment at the place of your work. You can use the money you kept for emergencies to live with until you receive your weekly or monthly salary payment. You should also replace the money when you receive your salary to make your emergency fund healthy enough to help you out for a long time.

No good investor that will see emergency fund as something to play with in as much as having the intention to hold long term is the aim of that investor, because is not a matter of using it and later replace back reason been that emergency is unforseen circumstances that can't give you sign before it take place

The example I gave in my post above is clear for you to know that a delay in someone's weekly or monthly salary payment is a good emergency that will make that person use his emergency fund to cover up until the person receives his salary. For instance, you used to receive your monthly payment at the end of each month, but something happened at the place of your work, and you got paid on the 10th of the new month. You will have no choice but to use your emergency fund to sort out your bills because you never expected that your salary payment would be delayed.

If challenges like salary payment or other challenges comes up an investor can always rely on their floating or reserve funds till further notice, an investor can decide to build their emergency funds depend on their income and choice but, I personally build my emergency funds time to time cause it stands as an alternative not because I  want to withdraw each time I encounter challenges. An emergency funds can always stand and accessible, it’s not proper using your emergency funds always settling every needs without replacing back the money, emergency funds is not meant to stay empty rather build this fund along side with your invest is important. When gotten to a balanced portfolio with your investment (mature investment) an investor can diversify, All this depend on an investor planning and income.

[Salahmu]

I divide my fund into three parts, first part I will invest, second part I will save for later investment, and third part emergency fund. Emergency fund is what I keep in case I invest and I don't have to sell the investment if I face danger. Because I don't earn normally, I am currently studying, so what I have saved for investment is the money taken from my parents for tiffin and some special purpose. I keep funds strictly for my most urgent needs and to meet the basic needs of people.

Actually I don't know the reason why you decided to divide your investment funds but however since you have established your emergency funds I don't think there is need for the third one but one thing you must understand is that your emergency funds should be higher than your expenses so that it will not affect your investment when the needs arises, so perhaps since you are currently studying, one of the best way you should go about your investment is to take it a little by little.

for example if your intention is for $20 weekly you could bring it down a bit a meet your financial state maybe $10 could also be considered on a weekly basis and also one thing you should also know is that sometimes your accumulation period could varies because since you are still a student that doesn't have a source of income you could sometimes not be able to meet up the weekly basis, so perhaps you should be able to adjust your accumulation method if should incase the need arises.

[Obim34]

The example I gave in my post above is clear for you to know that a delay in someone's weekly or monthly salary payment is a good emergency that will make that person use his emergency fund to cover up until the person receives his salary. For instance, you used to receive your monthly payment at the end of each month, but something happened at the place of your work, and you got paid on the 10th of the new month. You will have no choice but to use your emergency fund to sort out your bills because you never expected that your salary payment would be delayed.

I understand your point regarding on that situation but actually the emergency fund should be the less option to be chosen by some individuals since they might doing the wrong thing on their investment since once they touch that funds for sure every time you think you want to buy something you will always resort to take that money and use it for unwanted things. That's why its better to forget about the emergency funds and always use your extra funds on investment. If there's a delay of salary will occur then delay your investment because there's no race on accumulating of bitcoin since any time you can buy this whenever you have funds to use. We always have a choice and for sure salary will not be delayed for months since usually the delay only take for few days so with that there's no really point to use our emergency fund just to buy bitcoin.

At first, we should be able to differentiate between emergency funds and reserve funds, there should be a clear disparity between both. Emergency funds are funds kept for rear circumstances that may happen, like health problems, fire outbreak and incidents that requires very quick attention but when we say reserve funds, it's more of a funds kept to cover up expenses, those reasons might be slightly known or not. Talking about salary, what should be used in that case is reserve funds and not emergency funds, we all know how the economic situation is, sometimes people get paid earlier or later but the fact is that they must surely be paid, so delay of payment it's not an emergency case.

Emergency funds are important, do not talk of it as less important, we should know when the urgency of resolving an emergency happens, what pops to the mind is to sell off ones investment and your attention may not go for watching the price if it's lower or higher than what was used to enter the market and this will cost losing ones accumulated portfolio that should have been avoided by simply keeping aside both emergency funds and that of the reserve funds.

[Smilevictorobinna]

Technically you should not be using emergency funds to buy dips.. but you can use reserve funds.  Yeah of course people call these things different things, but the idea of emergency funds is to have money to live and to pay for your expense if an actual emergency takes place or if you lose your income for some reason, you have a little bit of breathing space.

Reserve funds would be extra money, so you should never dip into your emergency funds for anything other than needing to live because you ran out of other money.

I think this has been discussed some months back. Money that is kept for an emergency is not to invest in bitcoin and if anyone wants to invest in Bitcoin then extra funds Shou be made available if only the person is really ready to invest. There are some banking apps that one can use to lock funds by weekly, monthly and yearly. The person can choose the plan he wants and I normally select two plans to lock my funds in weekly and monthly because I don't know when the dip would come and if it comes, and fall under the weekly plan then I would use it to buy the dip and I will wait for the monthly plan again and once it unlocked I would use the money to buy the dip again. So with that you don't have to spend your emergency funds again.

Now if you buy the dip with the emergency money and something happens within the week and you don't have extra money to solve the emergency need, you have to make a sale of the bitcoin investment you initiated in the week to solve the emergency and if the dip is below the purchase price of bitcoin then you are at the losing side of the investment because you did plan well for the investment. Always keep the emergency funds down the emergency purpose and not to buy the dip.

Emergency funds are not a part of your cashflow.  You seem to be talking about some kind of a float.  Emergency funds are something that you build up and then you likely never will have to touch.. ever..  they are usually something .like 3-6 months of your expenses, so if you lose your job or you get hit by a bus, but you are still living, you might have some expenses but unable to work for 3-6 months, but if you are managing your money well, you may well have other funds such as reserves and a float that you would use prior to even dipping into your emergency funds.  

Let me use the example that I used from the other thread:

If you have an income that is around $1.6k to $3.8k per month, and most of the time you receive around $2,400, and you have expenses that are usually $1,800 to $2,200 per month, and most of the time the expenses are $2,000, then that is around $400 in disposable income, but surely it varies, so minimally you should likely be holding around $6,600 in cash to cover 3 months of your expenses.

yes you might have other money that is extra cash float or that you are holding in reserves for other purposes, maybe for buying on the dip or just for using when your income might be low.  You could spend 20-30 years or more never touching your emergency fund because if you have fluctuations in your cashflow, you would tap into your reserves and your float first, so hopefully you never get into a situation that you even need to touch your emergency fund.. because if you do, then shit is really hitting the fan at that point... and your situation has become more dire.. .. so in some sense if you are using your float and your reserves you can continue to buy BTC every week since buying BTC may well be a priority for anyone who is trying to build their stash... but whether they are able to build their BTC $50 per week or $100 per week or some other amount is going to vary on other ways that they are managing their cash, since it is good to be aggressive, but it is not good to put yourself into a situation that you don't have any money and you have to dip into your emergency fund.

another thing is that people who don't invest, might not even be in the practice of maintaining an emergency fund. ..and that might be part of the reason that they are poor and don't invest...because they are not managing their money well.. and so if someone is brand new to bitcoin and they do not have an emergency fund, they may well have to invest smaller amounts into BTC wheil they are building their emergency fund, and once the emergency fund gets up to 6 months then they can be more aggressive in their BTC investing.  

Another mistake that poor people make is to use their investment (BTC in this case) as their emergency fund.. and yeah, they are going to have fun staying poor, because you should not have to dip into your BTC ever, except upon a time that you have already chosen based on criteria that you had already set.. whether that is 1-2 cycles down the road or reaching some level or whatever that criteria might be.

A lot of people don't know the importance of building and maintaining an emergency fund, reserves and a float when it comes to Bitcoin  investment, because without these things, ones financial stability is never ensured, especially for individuals with limited financial resources.
It'll be no different from using one's Bitcoin holdings as a form of trading or gambling because whenever an emergency arises, they'll always dip into their Holdings which will definitely lead to depletion of funds, rather than building it.

The availability of Emergency funds, reserves and float gives one a form or security whenever unexpected expenses, financial shock and emergencies surfaces. This approach makes sure that one's basic needs are met, thereby minimizing the possibilities of dipping into one's Investments.

In order for one's Bitcoin investment to grow significantly, there's need for one to always have a very solid financial foundation because the absence of a solid foundation would definitely lead to depletion of investment and could often hinder the potential for long-term financial success.

It's also worth noting that having an emergency fund, reserves and float is just as essential as the investment itself because without it, there wouldn't be any investment to start with, because surely, emergencies will occur and you'll always sort them out.

I agree with you that one should first exhaust his reserve's and float before dipping into the emergency fund, so is very important to have a reserve and a float funds it helps protect your investment and keep it going without tampering it.
With your reserve's, float and emergency funds no emergency can make you dip into your investment.

[Sim_card]

No good investor that will see emergency fund as something to play with in as much as having the intention to hold long term is the aim of that investor, because is not a matter of using it and later replace back reason been that emergency is unforseen circumstances that can't give you sign before it take place

The example I gave in my post above is clear for you to know that a delay in someone's weekly or monthly salary payment is a good emergency that will make that person use his emergency fund to cover up until the person receives his salary. For instance, you used to receive your monthly payment at the end of each month, but something happened at the place of your work, and you got paid on the 10th of the new month. You will have no choice but to use your emergency fund to sort out your bills because you never expected that your salary payment would be delayed.

If challenges like salary payment or other challenges comes up an investor can always rely on their floating or reserve funds till further notice, an investor can decide to build their emergency funds depend on their income and choice but, I personally build my emergency funds time to time cause it stands as an alternative not because I  want to withdraw each time I encounter challenges. An emergency funds can always stand and accessible, it’s not proper using your emergency funds always settling every needs without replacing back the money, emergency funds is not meant to stay empty rather build this fund along side with your invest is important. When gotten to a balanced portfolio with your investment (mature investment) an investor can diversify, All this depend on an investor planning and income.

Emergency funds should not be tampered with or used for your needs, and being replaced back. Emergency funds is always there as stand by at all the time and not to be spent only when a real emergency happens that needs to be taken care of immediately if not it will worsen the situation of things that will lead to more damage . For instance, if you lost your job, or the roof of your house was pulled of by storm. You can rely on your emergency funds for the mean time till you get another job, so that you don't sell your bitcoin to survive during when you don't have a job. Your income should be divided, whereby you have set aside for your needs.

If a real emergency happens, and you use the funds like the example, I gave above, when you get a new job, you can then replace/build back your emergency funds. This is why we should have a good size of emergency funds, so that whatever emergency that happens, it can sustain us. It is also good because that is what will also consider how aggressive we will be when accumulating bitcoin through DCA in a particular time.

[Tungbulu]

I divide my fund into three parts, first part I will invest, second part I will save for later investment, and third part emergency fund. Emergency fund is what I keep in case I invest and I don't have to sell the investment if I face danger. Because I don't earn normally, I am currently studying, so what I have saved for investment is the money taken from my parents for tiffin and some special purpose. I keep funds strictly for my most urgent needs and to meet the basic needs of people.

but one thing you must understand is that your emergency funds should be higher than your expenses so that it will not affect your investment when the needs arises, so perhaps since you are currently studying, one of the best way you should go about your investment is to take it a little by little.

I think you must have gotten the idea of an emergency fund wrong. An Emergency fund isn't the money you use for your daily, weekly or even monthly expenses. It's infact funds you stash up somewhere for Emergencies and unforeseen circumstances and situations that may arise in the future, things that would require you to spend a huge amount of money to sort out the emergency.
This is different from the money you use to sort your expenses.
Asides your Emergency funds/Reserve, you can equally have other revenues that fetches you money for your expenses.

[letteredhub]

Technically you should not be using emergency funds to buy dips.. but you can use reserve funds.  Yeah of course people call these things different things, but the idea of emergency funds is to have money to live and to pay for your expense if an actual emergency takes place or if you lose your income for some reason, you have a little bit of breathing space.

Reserve funds would be extra money, so you should never dip into your emergency funds for anything other than needing to live because you ran out of other money.

I think this has been discussed some months back. Money that is kept for an emergency is not to invest in bitcoin and if anyone wants to invest in Bitcoin then extra funds Shou be made available if only the person is really ready to invest. There are some banking apps that one can use to lock funds by weekly, monthly and yearly. The person can choose the plan he wants and I normally select two plans to lock my funds in weekly and monthly because I don't know when the dip would come and if it comes, and fall under the weekly plan then I would use it to buy the dip and I will wait for the monthly plan again and once it unlocked I would use the money to buy the dip again. So with that you don't have to spend your emergency funds again.

Now if you buy the dip with the emergency money and something happens within the week and you don't have extra money to solve the emergency need, you have to make a sale of the bitcoin investment you initiated in the week to solve the emergency and if the dip is below the purchase price of bitcoin then you are at the losing side of the investment because you did plan well for the investment. Always keep the emergency funds down the emergency purpose and not to buy the dip.

Emergency funds are not a part of your cashflow.  You seem to be talking about some kind of a float.  Emergency funds are something that you build up and then you likely never will have to touch.. ever..  they are usually something .like 3-6 months of your expenses, so if you lose your job or you get hit by a bus, but you are still living, you might have some expenses but unable to work for 3-6 months, but if you are managing your money well, you may well have other funds such as reserves and a float that you would use prior to even dipping into your emergency funds.  

Let me use the example that I used from the other thread:

If you have an income that is around $1.6k to $3.8k per month, and most of the time you receive around $2,400, and you have expenses that are usually $1,800 to $2,200 per month, and most of the time the expenses are $2,000, then that is around $400 in disposable income, but surely it varies, so minimally you should likely be holding around $6,600 in cash to cover 3 months of your expenses.

yes you might have other money that is extra cash float or that you are holding in reserves for other purposes, maybe for buying on the dip or just for using when your income might be low.  You could spend 20-30 years or more never touching your emergency fund because if you have fluctuations in your cashflow, you would tap into your reserves and your float first, so hopefully you never get into a situation that you even need to touch your emergency fund.. because if you do, then shit is really hitting the fan at that point... and your situation has become more dire.. .. so in some sense if you are using your float and your reserves you can continue to buy BTC every week since buying BTC may well be a priority for anyone who is trying to build their stash... but whether they are able to build their BTC $50 per week or $100 per week or some other amount is going to vary on other ways that they are managing their cash, since it is good to be aggressive, but it is not good to put yourself into a situation that you don't have any money and you have to dip into your emergency fund.

another thing is that people who don't invest, might not even be in the practice of maintaining an emergency fund. ..and that might be part of the reason that they are poor and don't invest...because they are not managing their money well.. and so if someone is brand new to bitcoin and they do not have an emergency fund, they may well have to invest smaller amounts into BTC wheil they are building their emergency fund, and once the emergency fund gets up to 6 months then they can be more aggressive in their BTC investing.  

Another mistake that poor people make is to use their investment (BTC in this case) as their emergency fund.. and yeah, they are going to have fun staying poor, because you should not have to dip into your BTC ever, except upon a time that you have already chosen based on criteria that you had already set.. whether that is 1-2 cycles down the road or reaching some level or whatever that criteria might be.

A lot of people don't know the importance of building and maintaining an emergency fund, reserves and a float when it comes to Bitcoin  investment, because without these things, ones financial stability is never ensured, especially for individuals with limited financial resources.
It'll be no different from using one's Bitcoin holdings as a form of trading or gambling because whenever an emergency arises, they'll always dip into their Holdings which will definitely lead to depletion of funds, rather than building it.

The availability of Emergency funds, reserves and float gives one a form or security whenever unexpected expenses, financial shock and emergencies surfaces. This approach makes sure that one's basic needs are met, thereby minimizing the possibilities of dipping into one's Investments.

In order for one's Bitcoin investment to grow significantly, there's need for one to always have a very solid financial foundation because the absence of a solid foundation would definitely lead to depletion of investment and could often hinder the potential for long-term financial success.

It's also worth noting that having an emergency fund, reserves and float is just as essential as the investment itself because without it, there wouldn't be any investment to start with, because surely, emergencies will occur and you'll always sort them out.

I agree with you that one should first exhaust his reserve's and float before dipping into the emergency fund, so is very important to have a reserve and a float funds it helps protect your investment and keep it going without tampering it.
With your reserve's, float and emergency funds no emergency can make you dip into your investment.

I do agree with what you all have said about making available a solid emergency funds, reserve and float. But the possibility of all of these be put in place depends very much on the size of the income of the investor. An investor with little size of income can't literally manage to keep into place all of these requirements strongly as dyke for his bitcoin investment.

Which is why my suggestion would be that as people invest in bitcoin they should always spread their reach for income source as to enlarge the size of your income to be capable to make room for emergency funds, reserve and float for a sure success to your bitcoin investment no matter the challenge that may arise.  For no matter how much big what you earn from a single source is, it is never enough reason to stay reliable on it, go for other means as multiple income source is also the secret to achieving a successful investment plan.

[JayJuanGee]

Fair enough in regards to the further explanation in regards to the various things that earlier adopters might have done, and surely there has been a decent amount of variance, and yeah some may have sold too many too soon, and others may have just sold portions of their stack. Some may have had conviction from the beginning and others developed their conviction later, and surely it would be difficult to characterize in general kinds of ways, since there surely have been some folks who might have had approached BTC in similar ways as me, and surely there are differences in the financial circumstances of folks and even their technical knowledge, and including considering details of their too.

surely people approach on btc investment differs, expecially in technical aspect. that is why we have different categories of investors and there approaches. the list below shows 11 types of investor.
1. The Beginner
2. The Bitcoin Maximalist
3. The HODLer
4. The Trader
5. The FOMOer
6. The Hunter
7. The Traditional Investor
8. The Ecosystem Expert
9. The Crypto Native
10. The Early Adopter
11. The Whale
The 11 types of cryptocurrency investors
you are right , newbies investor can never be compeard to the crypto native or whales in regards to your explanation of people approach on Bitcoin investment differs expecially technical aspects. if you read through the link I Sheard , the crypto Native suits your explanation even though it didn't appear as thought,  

Yeah, but how could we give too many shits about shitcoins in this thread.  The explanation that involves some kind of a need to learn about shitcoins seems a bit problematic to me.

but for now i see it as the perfect Match when classifying investor and there level of understanding and long expirenced in the ecosystem. sometimes I see you @JJG as one of them, i.e the crypto native. if you read down to the crypto native   you will come across a statement like this
      Traits of a crypto native:
1. Lived through multiple market cycles.
2. Used to the high volatility.
3. Understand the technological and financial aspects of crypto.
another one I would have also considered is the ecosystem expert. but I think you will be in good position to explain more better or trow more light to this link I shared.

There is a lot of mixing of shitcoin ideas in that article, so there are some good ideas in the article, but it surely is mixed up with shitcoin ideas, and it cannot even describe bitcoin maximalism without pumping some shitcoin ideas in there.

Of course, I acknowledge that shitcoins exist and are going to continue to exist, but I still would consider a lot of needs to learn about and to mostly focus on bitcoin without getting overly distracted into shitcoins, including vague references to crypto as if bitcoin was just one of he options instead of the one that all of the others is copying and correlated to.

So maybe if the article had been written from a bitcoin first perspective and acknowledge shitcoins as largely copy cats and/or affinity scams upon bitcoin, then they might have been able to describe the categories a bit better.

So that article does not really address very well some of my earlier points in regards to how various bitcoiners might have come into bitcoin in terms of their fitting into some level of early adopter and how their portfolio and personal learning may have developed and evolved through the time that they have been into bitcoin and perhaps some of them distracted (or lured) into shitcoins.. .and no I don't even consider shitcoins to be a complete waste of time, since there may well be some ways in which the various options to transact in different ways could be helpful in regards to bitcoin's freedom and self-sovereignty aspect, which surely freedom and self-sovereignty seem to be under attack in many ways in recent times.

9 individual factors,

those are really 9 factor that influences people's decition on how to invest in bitcoin I would have loved to add more but I guess you have summarised all. it may be listed as 9 factor but deep diving into it it is actually more than 30 factors but summarised into 9.

Yeah.. there are likely subcomponents and sometimes quite a bit of detail within the categories, so there may even be better ways of describing some of them and pointing out some of the important sub factors within the factors.  I just like to use it as an easy go to reference, but sometimes we might talk about one or two of the factors and how someone might try to figure out where they might be in regards to one or another of the factors, including how any of the factors can change in time, but still there could be some consistency within some of them over time too, which truly should mean that a person is going back to reassessing his factors from time to time and maybe making material changes to his approach to bitcoin based on some of the changes of some of the factors (and yeah, he might even end up being wrong in terms of his assessment of the factors and his chosen approach towards addressing such factors.

By the way, I am claiming that my average cost per BTC is right around $1k, so yeah, I bought bitcoin cheaper and more expensive than that.  I think that the lowest that I bought BTC was around $182.. but surely I did not buy very much because I had run out of money, and really when the BTC is dipping that low, sometimes we will run out of money, and I ran out of money for a lot of 2015 during the time that the BTC prices were in the $200s, and surely I have some purchases in the $200s, but really there sometimes can be difficulties buying when the BTC price is so low, especially if you already have a bunch of BTC and your costs happen to be way higher than the then current price.

I guess by then you didn't have discretionary income or was not yet knowledgeable about deliscretionary/ reserved fund or haven't been making attempts of keeping emergency or reserved fund. otherwise you wouldn't have allowed that golden opportunity of buying cheaper slip you off.  

Things happen in life, and there are degrees in which we have to make adjustments if our cashflows dry up or our expenses go up, and so there can be varying ways to consider whether prior practices were successful.  I consider that to be a fairly successful period of my life, even though I was going through tight cashflow times, and yeah there could be ways to second-guess how I dealt with it and if I could have had dealt with it better, but overall I feel pretty good about that period, especially since I did not sell any bitcoin and I continued to buy, even though there were periods in which I was not able to buy (or did not feel that I could buy based on my own then balancing efforts).

I do think that some of my thoughts have evolved through the years, and also my ways of describing things, so there were likely periods in which I already knew about various practices, but I likely organized them in my head in different ways than I do these days.  Even before i got into bitcoin in late 2013, I had already been investing (including using DCA techniques) for more than 20 years, and yeah frequently I consider myself to be and to have had been pretty conservative, even with my starting to get into BTC in late 2013 and the way that I ended up choosing to start my investment was based on a 6 month budget that I established for myself and then divided that 6-month budget into 26 weekly parts, so it is was like a weekly allowance that I gave myself.. that I ended up extending an additional 6 months after the 1st six months had run itself.

It can be difficult to say which changes would be made, since we deal with situations from our current knowledge set and we try to learn along the way, and frequently there are going to be mistakes that might be known in the moment but other mistakes might not be clear until later down the road, but sometimes even the mistakes have levels of materiality, so that there might not necessarily be a change that needs to be made since we cannot necessarily know BTC's short-term price direction. .

and we could even end up getting our long-term predictions wrong, while at the same time, there can end up coming a decent amount of satisfaction that long term predictions end up playing out even more bullish than anticipated (in some ways).. since if I had said to myself that I would like my bitcoin returns to at least return on average similar to the returns of my other investments (which was largely 6% on average), but I was willing to accept a lower performance level, and surely if I might even say that in the first few years bitcoin was either negative or barely reaching 6% per year performance after 2.5 years and maybe even getting into its 3rd year, but after that the performance ended up making up for the short-falls of the earlier years... so maybe even now I might say, bitcoin has returned me around 75% per year on average over the last 10.5-ish years, and yeah there are guys who are claiming that it doubled every year or more, but I am not sure if those are necessarily representative results in regards to what happens to a large number of normies in the real world.

and I guess these where the predicament and scenerio that have captivated and change you. by making you putting emergency and reserved fund at first before anything,

You seem to be misreading what happened.  I already had an emergency fund and reserves, which is part of the reason I never had to sell any BTC.. even though I had several months in which I was not able to buy BTC.. and I suppose part of the reason that I had concluded that it was not necessary to continue buying BTC is because I had already been buying a lot of BTC during all of 2014, and in late 2014 (prior to my emergency situation), I had already come to the conclusion that I had already accumulated enough BTC, and perhaps if I had ONLY learned about BTC, and I had not already spent a year accumulating BTC, I might have considered that situation differently, but I can ONLY deal with the facts of my situation. and really I think that I considered any additional BTC that I had accumulated during 2015 to be a kind of overaccumulation, especially since by late 2014, I had considered that I had invested about 10% of the value of my quasi-liquid investment fund into bitcoin, and so even though when I started in BTC I had not realized that I was going to have a 10% target, I had come to that conclusion in late 2014, and by the time we got to mid-to-late 2015, I was getting close to around 13.5% of the value of my quasi-liquid investment fund into BTC, so at that point, I considered that I had gone from my then established target accumulation level into a state of overaccumulation.

because if you had it then Bitcoin was at $200s you would have accumulated alot by now.

Sure there might have been some people who came into BTC in late 2014 and even in 2015 who acquired their BTC at that price level, but I have my doubts, and anyone buying throughout 2014 (such as myself) already had conviction in regards to bitcoin, so yeah sure, you can Monday morning quarter-back the situation, and say that you should have waited. You should have saved your money for the dip that everyone knew was coming, and frequently those kinds of claims are a bunch of bullshit, and you can see the same thing happened in 2022.. The BTC price dropped from $69k down to $15,479, and we did not see folks backing up their trucks and buying BTC between $16k and $19k.. yeah sure there were some who still had money to buy, but a lot of folks did not have a lot of money left by the time that the BTC price got down to those levels, and so they used their floats and their reserves, and surely you should know that you don't use emergency funds for buying BTC.. you use emergency funds to live and to avoid having to sell your BTC in order to live.

but surely I believe no room for regrets because there is no time that is too late to invest in bitcoin but the level of your accumulation and consistency matters and haven discretionary fund to keep the train moving.

You cannot invest into anything if you don't have discretionary income.  So whether you know what it is called or not, your income needs to exceed your expenses in order for you to be able to invest into anything whether bitcoin or anything else.. otherwise, you are gambling if you are using money that you need for your expenses to invest..

And so with my own situation, I came into bitcoin thinking that I was going to hold whatever I bought for at least a year, but most likely at least 2 years, yet these days I think that many of us know more about bitcoin, and any new investor should be able to commit to investing 4 years or longer.. of course, people are going to be scared and even some of them want to try to play the wave that is likely less than 4 years, and so I consider those folks to be traders and/or gamblers rather than investing, even if some of them might end up changing their minds and decide to stay longer.. just like I continued to stay longer rather than ever making any radical moves to sell large portions of my holdings.. which also could be considered a bit of controversial stance - since we know that in 2018, the correction was in the ballpark of 85%, so that can cause regrets from a lot of folks in terms of not having had sold much or even any BTC during the earlier price rise.

Also, I made several mistakes along the way, which I expect others to have had made some mistakes along the way too, whether they are earlier adopters or not.. and the concept of early adopter is surely a relative term, since it is likely that anyone getting in below $1k will be considered an early adopter to some, and anyone getting in below $10k will also be considered an early adopter to others. .maybe a bit later down the road, even though newbies to bitcoin likely realize that it is quite unlikely that either sub $10k or even sub 20k or $30k will ever be reached again.. Surely the lower the price, the more confidence that we might have that such prices are not likely to ever be reached again (absent some breaking of bitcoin).

it might be true but I doubt that " the lower the price the more confident that we might that such price is likely not to be reached again" because Bitcoin is volatile and anything volitille can not be predicted uprightly. despite bitcoin is the best investment, it can even fall to 0 even as we don't think of that. let's say around the ending part of 2021 Bitcoin made it way up to around $46,886.08 per btc. and fall way below $20k around 2022. surely most people never thought of btc to fall below $20k in late 2022 after hitting $46,886.08 around December 2021.

You got your numbers wrong.. Bitcoin went to nearly $65k in early 2021 and it went to $69k in late 2021, so yeah there were a lot of people expecting BTC prices to go higher in 2021 and perhaps even into 2022, but instead we got right around a 77% correction down to $15,479... , and yeah many folks did not expect bitcoin to go below the 200-WMA, and that was then around $22k, and so the BTC price ended up going around 35% below the 200-WMA.. which was more than expected, and even some folks expecting the BTC price to go lower after that.

Yeah sure, anything can happen and we should be financially and psychologically prepared for a variety of scenarios, but it still remains a good idea to make sure that you are also prepared for UP.. No problem preparing for down, but the problem that an overwhelming majority of folks have is their failure/refusal to adequately prepare for up... So there are ways that you can prepare for both, and most times, I don't spend a lot of time focusing on preparing for down, even though surely there are needs to make such preparations, but instead I prefer to make sure people are prepared for up.. which continues to be the overwhelming majority of the problem that an overwhelming majority of the population has, and perhaps even some of the members of this forum... failure/refusal to adequately/sufficiently prepare for up. and also fucking around with trading (or shitcoins).. which also takes away from adququate/sufficient preparations for up.

but it fell to $16k in the late December 2022 in 1 year interval. meaning that no level passed can be assumed to be likely not to be reached again.

Use the 200 WMA for your largely measure of bottom and stop fucking around thinking about outrageously bearish scenarios.  Yeah sure they can happen, and yeah sure you should be prepared, but it is more important to be preparing for up rather than thinking about downity scenarios that may or may not happen....including continuing to keep the 200-WMA as your approximation of bottom BTC prices.. even though sometimes it might get broken.. but it tends to go up and there is no reason to conclude that it is not going to continue to go up. .even though surely it is not guaranteed, as you suggested, but if you ever want to potentially advantage by having a stake in bitcoin, and even a lighter stake if you are so obsessed with bitcoin going to zero scenarios, then you have to be buying BTC and making sure that you continue to have some.. but hey you do what you like if you fail refuse to buy bitcoin and/or to keep a sufficient and/or adequate stash of it.

[edited out

What you said is actually a good thing, but you need to understand that in Bitcoin investment, it's very important to have a source of income that keeps you going, because if it's from the money for upkeep from your parents that you divided and use part of it to invest, it will definitely be unsustainable on the longer run, because I believe that the emergency fund you are talking about wouldn't be enough to weather the storm when in serious financial needs, and that may compel you to temper with your investment, so it's best you have a source of income.

Another thing why I said so is that, like 20% of your income will be enough to invest in Bitcoin, and the remaining 80% can take care of your emergency funds and other expenses, but this investment plan you are using will definitely not be sustainable on the longer run.

You also don't seem to know what is an emergency fund.  An emergency fund would be built up and set aside and it would be the value of something like 3 months or more of your expenses... so once you build it up you do not need to touch it.  The part that you seem to be referring to having extra float in your monthly cashflow is not an emergency fund. that is merely extra float.. so if you want to take some of that extra float and designate it towards an emergency fund, or towards reserves or towards something that you are saving up for, then no problem with that, it gets transferred out of your monthly float and into some kind of reserves and/or an emergency fund.

So if someone had an income and 80% is expenses, then they only have 20% that can be used for investing and/or building up reserves and/or an emergency fund (that is also called discretionary income since it is income beyond their expenses).. .Many times it is difficult for anyone to even be in a situation in which they have 10% to 20% or more of their income as discretionary.. unless they are living with their parents and their parents is supporting most if not all of their expenses. .or if they happen to have a job that is relatively high paying as compared to their expenses in life.

[edited out]

being too technical as regards the kind of investor you are is not really necessary the way I look at it because at the end of the day, even if you're a beginner or you  fall into any of those category of people you tend to outline as the types of investors, it doesn't change the narrative that what's expected of anyone that's investing into Bitcoin is that they buy Bitcoin and HODL it while adding more Bitcoin during several consecutive times which is what we've come to know as DCA. Whatever category of investor you fall under doesn't really make any difference and to be even honest, some of those things You're talking about are just mere ideas that tend to describe a particular set of people that are already in involved in Bitcoin maybe for the short term benefit and doesn't in any way mean that everyone  have to make attempt to fall into any of the category You've outlined here.

Every real Bitcoin investor should think of himself as an HODLer that's building his bitcoin for the long term purpose and any sort of idea like categorizing yourself as an hunter, FOMOer or even trader doesn't fit into the real niche of Bitcoin investments but might possibly become a setback that might hinder the holder from for being able to continue to DCA for a long.

You are correct.  Those categories may well serve as distractions in terms of really helping to understand what is bitcoin or how to be an investor into bitcoin, since there are several ways that the category descriptions result in making it appear as if trading or getting involved in shitcoins is some kind of a positive attribute in terms of being a more sophisticated "crypto" person... so yeah, there may be a bit of a distracting element in the framing of those categories, even if there still might be a few good ideas in there, there surely is a lot of crap ideas within those category descriptions, too.

[edited out]

As a student that is not working allocating 20 percent from the money het gets from his parents might just be too much, he needed to allocate a more conservative percentage of  about 5 to 10 percent in to Bitcoin and use the rest for his other needs so that he can be accumulating Bitcoin without stress or seeing it as a burden or struggling as a student that is no working but depends on his parents. However it is better to comfortablely go wimpy without struggling thou it will take a longer period of time to arrive at a good size of Bitcoin which is better than being a no coiner.

Huh???   We do not have enough facts to know.  Surely when a person lives with their parents, they may well be living in an artificial world in which their parents are paying for most of their expenses.. so there might be more liberty to invest more than someone else would be able to invest.  So yeah sometimes people living with their parents are not contributing to expenses, but others might have obligations to contribute to household expenses.  I am not going to automatically assume that he has expenses that restricts his ability to invest higher amounts into bitcoin.

Another thing might be that his parents might have certain expectations that he buys things with the money that they give him, so they might not like the idea that he is investing into bitcoin with money that they are expecting to be used for his living expenses.. and so they might decide to reduce the amount they give if he were to tell them that he is investing with part of it... We don't have enough facts to know those things either, since some parents would appreciate any kid who might be considering various ways to invest or to be frugal, but they might not necessarily agree with bitcoin as an investment choice.. but then that could also vary too in terms of their knowledge or at least that maybe they should be grateful if he is not investing into shitcoins, to the extent that they know the difference.

[edited out]

The example I gave in my post above is clear for you to know that a delay in someone's weekly or monthly salary payment is a good emergency that will make that person use his emergency fund to cover up until the person receives his salary. For instance, you used to receive your monthly payment at the end of each month, but something happened at the place of your work, and you got paid on the 10th of the new month. You will have no choice but to use your emergency fund to sort out your bills because you never expected that your salary payment would be delayed.

From my own perspective, that is not a very good example in order to need to dip into your emergency fund, since you should have cash float and reserves for those kinds of things to the extent that there is going to be some expectations that there are going to be varying glitches in your cashflow and expenses from time.  Another thing is that if you are keeping larger amounts in your emergency fund, then you might well be taping into it more, but really that is what differentiates an actual emergency fund from a float and/or reserve funds, since floats and reserve funds would be something in which you would regularly be dipping into for various reasons, and sometimes you might end up depleting your float and your reserves and have to dip into your emergency fund, which surely should not end up happening hardly ever.. and maybe you make some mistakes or whatever, but most of the times you should be keeping enough of a float and/or reserves, so that you never end up having to touch your actual emergency funds absent and actual emergency, but yeah, if you run out of float and reserves then it is better to use your emergency fund than to use your bitcoin at a time that would not be of your own choosing, and if you end up having to use up two weeks of your emergency fund (for something that may or may not have had been reasonably foreseeable), then it could take you a month or two to build it back up.. depending on other aspects of your financial situation.

[edited out]

I do agree with what you all have said about making available a solid emergency funds, reserve and float. But the possibility of all of these be put in place depends very much on the size of the income of the investor. An investor with little size of income can't literally manage to keep into place all of these requirements strongly as dyke for his bitcoin investment.

Which is why my suggestion would be that as people invest in bitcoin they should always spread their reach for income source as to enlarge the size of your income to be capable to make room for emergency funds, reserve and float for a sure success to your bitcoin investment no matter the challenge that may arise.  For no matter how much big what you earn from a single source is, it is never enough reason to stay reliable on it, go for other means as multiple income source is also the secret to achieving a successful investment plan.

The same principles apply whether you are poor or you are rich.  You need to figure out ways to maintain an emergency fund, reserves and float, and you are the one that needs to figure out the size of  those things.

Of course, if you add additional income then your discretionary income would end up going up, but having another job does not take away the need for establishing good financial practices, even though having a second source (or multiple sources) of income does likely help to alleviate some of of the pressures if one of your income sources dries up then you would have back up sources of income.. but you still need an emergency fund, reserves and float... especially if you want to lessen the likelihood that you would need to tap into your bitcoin investment at a time that is other than your completely own choosing (not that you get forced into it based on you lack of adequate preparations).

[Mayor of ogba]

Technically you should not be using emergency funds to buy dips.. but you can use reserve funds.  Yeah of course people call these things different things, but the idea of emergency funds is to have money to live and to pay for your expenses if an actual emergency takes place or if you lose your income for some reason, you have a little bit of breathing space.

Reserve funds would be extra money, so you should never dip into your emergency funds for anything other than needing to live because you ran out of other money.

I think this has been discussed some months back. Money that is kept for an emergency is not to invest in bitcoin and if anyone wants to invest in Bitcoin then extra funds Shou be made available if only the person is really ready to invest. There are some banking apps that one can use to lock funds by weekly, monthly and yearly. The person can choose the plan he wants and I normally select two plans to lock my funds in weekly and monthly because I don't know when the dip would come and if it comes, and fall under the weekly plan then I would use it to buy the dip and I will wait for the monthly plan again and once it unlocked I would use the money to buy the dip again. So with that you don't have to spend your emergency funds again.

Now if you buy the dip with the emergency money and something happens within the week and you don't have extra money to solve the emergency need, you have to make a sale of the bitcoin investment you initiated in the week to solve the emergency and if the dip is below the purchase price of bitcoin then you are at the losing side of the investment because you did plan well for the investment. Always keep the emergency funds down the emergency purposes and not to buy the dip.

Emergency funds are not a part of your cashflow.  You seem to be talking about some kind of a float.  Emergency funds are something that you build up and then you likely never will have to touch.. ever..  they are usually something .like 3-6 months of your expenses, so if you lose your job or you get hit by a bus, but you are still living, you might have some expenses but unable to work for 3-6 months, but if you are managing your money well, you may well have other funds such as reserves and a float that you would use prior to even dipping into your emergency funds.  

Let me use the example that I used from the other thread:

If you have an income that is around $1.6k to $3.8k per month, and most of the time you receive around $2,400, and you have expenses that are usually $1,800 to $2,200 per month, and most of the time the expenses are $2,000, then that is around $400 in disposable income, but surely it varies, so minimally you should likely be holding around $6,600 in cash to cover 3 months of your expenses.

yes you might have other money that is extra cash float or that you are holding in reserves for other purposes, maybe for buying on the dip or just for using when your income might be low.  You could spend 20-30 years or more never touching your emergency fund because if you have fluctuations in your cashflow, you would tap into your reserves and your float first, so hopefully you never get into a situation that you even need to touch your emergency fund.. because if you do, then shit is really hitting the fan at that point... and your situation has become more dire.. .. so in some sense if you are using your float and your reserves you can continue to buy BTC every week since buying BTC may well be a priority for anyone who is trying to build their stash... but whether they are able to build their BTC $50 per week or $100 per week or some other amount is going to vary on other ways that they are managing their cash, since it is good to be aggressive, but it is not good to put yourself into a situation that you don't have any money and you have to dip into your emergency fund.

another thing is that people who don't invest, might not even be in the practice of maintaining an emergency fund. ..and that might be part of the reason that they are poor and don't invest...because they are not managing their money well.. and so if someone is brand new to bitcoin and they do not have an emergency fund, they may well have to invest smaller amounts into BTC wheil they are building their emergency fund, and once the emergency fund gets up to 6 months then they can be more aggressive in their BTC investing.  

Another mistake that poor people make is to use their investment (BTC in this case) as their emergency fund.. and yeah, they are going to have fun staying poor, because you should not have to dip into your BTC ever, except upon a time that you have already chosen based on criteria that you had already set.. whether that is 1-2 cycles down the road or reaching some level or whatever that criteria might be.

A lot of people don't know the importance of building and maintaining an emergency fund, reserves and a float when it comes to Bitcoin  investment, because without these things, ones financial stability is never ensured, especially for individuals with limited financial resources.
It'll be no different from using one's Bitcoin holdings as a form of trading or gambling because whenever an emergency arises, they'll always dip into their Holdings which will definitely lead to depletion of funds, rather than building it.

The availability of Emergency funds, reserves and float gives one a form or security whenever unexpected expenses, financial shock and emergencies surfaces. This approach makes sure that one's basic needs are met, thereby minimizing the possibilities of dipping into one's Investments.

In order for one's Bitcoin investment to grow significantly, there's need for one to always have a very solid financial foundation because the absence of a solid foundation would definitely lead to depletion of investment and could often hinder the potential for long-term financial success.

It's also worth noting that having an emergency fund, reserves and float is just as essential as the investment itself because without it, there wouldn't be any investment to start with, because surely, emergencies will occur and you'll always sort them out.

I agree with you that one should first exhaust his reserve's and float before dipping into the emergency fund, so is very important to have a reserve and a float funds it helps protect your investment and keep it going without tampering it.
With your reserve's, float and emergency funds no emergency can make you dip into your investment.

I do agree with what you all have said about making available a solid emergency funds, reserve and float. But the possibility of all of these be put in place depends very much on the size of the income of the investor. An investor with little size of income can't literally manage to keep into place all of these requirements strongly as dyke for his bitcoin investment.

Which is why my suggestion would be that as people invest in bitcoin they should always spread their reach for income source as to enlarge the size of your income to be capable to make room for emergency funds, reserve and float for a sure success to your bitcoin investment no matter the challenge that may arise.  No matter how much big what you earn from a single source is, it is never enough reason to stay reliable on it, go for other means as multiple income source is also the secret to achieving a successful investment plan.

Even though an investor doesn't have a good income source to keep a reserve and float funds, it is okay, but the investor should always make provisions for emergency funds, even if he has to reduce the money he will be using to accumulate bitcoin weekly or monthly just to build up emergency funds. It is important to have emergency funds when investing in bitcoin so that if any emergency happens, you will have what to use to settle the emergency and not depend on your bitcoin portfolio to solve it.

[Justbillywitt]

Technically you should not be using emergency funds to buy dips.. but you can use reserve funds.  Yeah of course people call these things different things, but the idea of emergency funds is to have money to live and to pay for your expense if an actual emergency takes place or if you lose your income for some reason, you have a little bit of breathing space.

Reserve funds would be extra money, so you should never dip into your emergency funds for anything other than needing to live because you ran out of other money.

I think this has been discussed some months back. Money that is kept for an emergency is not to invest in bitcoin and if anyone wants to invest in Bitcoin then extra funds Shou be made available if only the person is really ready to invest. There are some banking apps that one can use to lock funds by weekly, monthly and yearly. The person can choose the plan he wants and I normally select two plans to lock my funds in weekly and monthly because I don't know when the dip would come and if it comes, and fall under the weekly plan then I would use it to buy the dip and I will wait for the monthly plan again and once it unlocked I would use the money to buy the dip again. So with that you don't have to spend your emergency funds again.

Now if you buy the dip with the emergency money and something happens within the week and you don't have extra money to solve the emergency need, you have to make a sale of the bitcoin investment you initiated in the week to solve the emergency and if the dip is below the purchase price of bitcoin then you are at the losing side of the investment because you did plan well for the investment. Always keep the emergency funds down the emergency purpose and not to buy the dip.

Emergency funds are not a part of your cashflow.  You seem to be talking about some kind of a float.  Emergency funds are something that you build up and then you likely never will have to touch.. ever..  they are usually something .like 3-6 months of your expenses, so if you lose your job or you get hit by a bus, but you are still living, you might have some expenses but unable to work for 3-6 months, but if you are managing your money well, you may well have other funds such as reserves and a float that you would use prior to even dipping into your emergency funds.  

Let me use the example that I used from the other thread:

If you have an income that is around $1.6k to $3.8k per month, and most of the time you receive around $2,400, and you have expenses that are usually $1,800 to $2,200 per month, and most of the time the expenses are $2,000, then that is around $400 in disposable income, but surely it varies, so minimally you should likely be holding around $6,600 in cash to cover 3 months of your expenses.

yes you might have other money that is extra cash float or that you are holding in reserves for other purposes, maybe for buying on the dip or just for using when your income might be low.  You could spend 20-30 years or more never touching your emergency fund because if you have fluctuations in your cashflow, you would tap into your reserves and your float first, so hopefully you never get into a situation that you even need to touch your emergency fund.. because if you do, then shit is really hitting the fan at that point... and your situation has become more dire.. .. so in some sense if you are using your float and your reserves you can continue to buy BTC every week since buying BTC may well be a priority for anyone who is trying to build their stash... but whether they are able to build their BTC $50 per week or $100 per week or some other amount is going to vary on other ways that they are managing their cash, since it is good to be aggressive, but it is not good to put yourself into a situation that you don't have any money and you have to dip into your emergency fund.

another thing is that people who don't invest, might not even be in the practice of maintaining an emergency fund. ..and that might be part of the reason that they are poor and don't invest...because they are not managing their money well.. and so if someone is brand new to bitcoin and they do not have an emergency fund, they may well have to invest smaller amounts into BTC wheil they are building their emergency fund, and once the emergency fund gets up to 6 months then they can be more aggressive in their BTC investing.  

Another mistake that poor people make is to use their investment (BTC in this case) as their emergency fund.. and yeah, they are going to have fun staying poor, because you should not have to dip into your BTC ever, except upon a time that you have already chosen based on criteria that you had already set.. whether that is 1-2 cycles down the road or reaching some level or whatever that criteria might be.

A lot of people don't know the importance of building and maintaining an emergency fund, reserves and a float when it comes to Bitcoin  investment, because without these things, ones financial stability is never ensured, especially for individuals with limited financial resources.
It'll be no different from using one's Bitcoin holdings as a form of trading or gambling because whenever an emergency arises, they'll always dip into their Holdings which will definitely lead to depletion of funds, rather than building it.

The availability of Emergency funds, reserves and float gives one a form or security whenever unexpected expenses, financial shock and emergencies surfaces. This approach makes sure that one's basic needs are met, thereby minimizing the possibilities of dipping into one's Investments.

In order for one's Bitcoin investment to grow significantly, there's need for one to always have a very solid financial foundation because the absence of a solid foundation would definitely lead to depletion of investment and could often hinder the potential for long-term financial success.

It's also worth noting that having an emergency fund, reserves and float is just as essential as the investment itself because without it, there wouldn't be any investment to start with, because surely, emergencies will occur and you'll always sort them out.

I agree with you that one should first exhaust his reserve's and float before dipping into the emergency fund, so is very important to have a reserve and a float funds it helps protect your investment and keep it going without tampering it.
With your reserve's, float and emergency funds no emergency can make you dip into your investment.

I do agree with what you all have said about making available a solid emergency funds, reserve and float. But the possibility of all of these be put in place depends very much on the size of the income of the investor. An investor with little size of income can't literally manage to keep into place all of these requirements strongly as dyke for his bitcoin investment.

No matter the size of your income, you can make provisions for, emergency funds, reserve and float. All you have to do is just assign a certain percentage to all of the funds you are to keep aside, you can say emergency funds will get 5% of your monthly income, 10% will go to  reserve funds, 20% investment and so on. If you can be able to put everything in percentage it will be a bit easier for you. Immediately your salary comes in you will know before hand how much you are putting in each funds account. You can't say your salary is too small and neglect to make provisions for any of the funds which you are expected to set aside, if you do it your investment will be tempared with on the long run. No matter the range of your salary, please always make provisions for emergency funds, reserve and float. It will save you lots of troubles in the future.

[teamsherry]

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I agree with you on the percentage range the student should be alloting to his bitcoin accumulation, given the fact that his parents are still sorting his bills. Academic work comes with a lot of financial responsibilities, you should be able to strike a balance between what you have to spend on your day to day routine as a student and the amount you keep for your investment. Bitcoin investment is not sprint but a marathon race, which allows you time to accumulate little by little over time.

Speaking of beign conservative as a student in your bitcoin investment I'll like to speak as one, IMO a student is no different from any other investor like a family man with responsibility and more expenses or any other person, what matters is how well he can manage his income and how much disposable income he can make available to him, yeah your are right by considering that his source of income might be his parents and this can be inconsistent a times but it doesn't change the fact that we invest with our disposable income and that can be 20%, 10% or what ever the student  and afford.

My point is simple, been a student doesn't change the fact that you can approach your invest the right way, which means to consider that if you want to get more bitcoin you must invest more, so if income is a problem you can consider having a part time job to get a consistent income for that and that shouldn't also be a reason to be stupid or put yourself in a difficult situation, the advantage is yours for discovering bitcoin at a young age but what good is that if you mess it up or don't take good advantage of it, the end point is there is a line between aggressiveness and overly aggressive, so as a student I believe that also applies to me and I should invest as I should.

[Smilevictorobinna]

Another DIP buying opportunity might be coming! I'm not sure how low, or if this correction continues to fall under $40,000, but buying some Bitcoin with any sort of discount should definitely be "greeted" with open arms. Don't miss the opportunity!

Buy the DIP, and HODL!

The 40k price level has been tested for several times, and the more often the price kisses or visits a support or resistance level, the weaker the level becomes, so I think we have right now another great opportunity to buy more Bitcoin, So, I have set some market orders way down to $38k should the price continues to dip down because $38k is another important level of support for the Bulls to fight, to try to push the price back up to continue the trend.

I'm happy to have passed this stage in my Bitcoin journey, at least I know what I am doing and what to look out for, I have develop a method of building my Bitcoin portfolio that helps me buy effortlessly without having to be confused. Those who are yet should do same, chose your method of buying and work with it to avoid distractions because building Bitcoin portfolio could turn emotional exercise if not followed with rules.

To be specific, I adopted the DCA method some time ago and I have been using same to build my portfolio. I'm happy with the result so far and I'm glad I was able to make the decision to use it. I could buy at the dip once in a while depending if I got excess of my projected income. When I do this, I buy when the market drops and become a little stable within a zone. I don't usually care if it goes further than that after all, the DCA method is in place to buy if it gets lower.

The early one develop a strategy in buying Bitcoin, the better because a strategy saves a lot of energies and time.

[avp2306]

The example I gave in my post above is clear for you to know that a delay in someone's weekly or monthly salary payment is a good emergency that will make that person use his emergency fund to cover up until the person receives his salary. For instance, you used to receive your monthly payment at the end of each month, but something happened at the place of your work, and you got paid on the 10th of the new month. You will have no choice but to use your emergency fund to sort out your bills because you never expected that your salary payment would be delayed.

I understand your point regarding on that situation but actually the emergency fund should be the less option to be chosen by some individuals since they might doing the wrong thing on their investment since once they touch that funds for sure every time you think you want to buy something you will always resort to take that money and use it for unwanted things. That's why its better to forget about the emergency funds and always use your extra funds on investment. If there's a delay of salary will occur then delay your investment because there's no race on accumulating of bitcoin since any time you can buy this whenever you have funds to use. We always have a choice and for sure salary will not be delayed for months since usually the delay only take for few days so with that there's no really point to use our emergency fund just to buy bitcoin.

Emergency funds are important, do not talk of it as less important, we should know when the urgency of resolving an emergency happens, what pops to the mind is to sell off ones investment and your attention may not go for watching the price if it's lower or higher than what was used to enter the market and this will cost losing ones accumulated portfolio that should have been avoided by simply keeping aside both emergency funds and that of the reserve funds.

Read again my post if I said something emergency funds is less important. Maybe you read it faster that's why you got confuse and post wrong regarding on my statement.

What I'm pointing out when I quote Mayor of ogba is Emergency funds should be the less option he should take when finding some money to invest since its very  wrong to use it immediate investment just like what he said he will use it when there's a salary delayed and he will grab his emergency funds to invest it on bitcoin.

Emergency funds should be prioritize to have since this could save you if everything on your side will fuck up especially when you are facing financial troubles in future since this could save your ass in this situation.

[Judith87403]

weekly or monthly salary payment is a good emergency that will make that person use his emergency fund to cover up until the person receives his salary. For instance, you used to receive your monthly payment at the end of each month, but something happened at the place of your work, and you got paid on the 10th of the new month. You will have no choice but to use your emergency fund to sort out your bills because you never expected that your salary payment would be delayed.

It seems you are confusing reserve funds for and emergency funds because that's actually not the work of emergency funds but however when we talk about emergency funds they are money kept aside that can not be expected to yield profits or use to solve daily needs however is mostly established for a purpose and for more crucial things, however when you talk about daily needs you are actually referring to reserve funds because those are the work of reserve funds they are some amounts of money that is removed from either monthly salary or other sources and save to help and sorts out any needs that would arise on the process of accumulation or holding.

[Greyhats]

No matter the size of your income, you can make provisions for, emergency funds, reserve and float. All you have to do is just assign a certain percentage to all of the funds you are to keep aside, you can say emergency funds will get 5% of your monthly income, 10% will go to  reserve funds, 20% investment and so on. If you can be able to put everything in percentage it will be a bit easier for you. Immediately your salary comes in you will know before hand how much you are putting in each funds account. You can't say your salary is too small and neglect to make provisions for any of the funds which you are expected to set aside, if you do it your investment will be tempared with on the long run. No matter the range of your salary, please always make provisions for emergency funds, reserve and float. It will save you lots of troubles in the future.

This is exactly how I do it, I have a % allocation of my disposable income that gets split up into the different places. The one thing to note, and most people don't do this but its a good practice to do is when your emergency fund is fully funded you should continue to add % based on the inflation rate in your country. This is ensure the buying power stays relative to your market. 3 months is good place to start as coverage for your emergency fund, and then you got options to go to 6,12,15,18 months etc. I personally capped it out at 18 months, but have been doing this a long time, 3-6months can usually deal with most things to be honest.

% based division of disposable income is nice too, because when you get a salary increase or even like "bonus" or "unexpected windfall" you can apply the same % divisions to spread it out into your different places.

Keep stacking

[Dailyscript]

weekly or monthly salary payment is a good emergency that will make that person use his emergency fund to cover up until the person receives his salary. For instance, you used to receive your monthly payment at the end of each month, but something happened at the place of your work, and you got paid on the 10th of the new month. You will have no choice but to use your emergency fund to sort out your bills because you never expected that your salary payment would be delayed.

It seems you are confusing reserve funds for and emergency funds because that's actually not the work of emergency funds but however when we talk about emergency funds they are money kept aside that can not be expected to yield profits or use to solve daily needs however is mostly established for a purpose and for more crucial things, however when you talk about daily needs you are actually referring to reserve funds because those are the work of reserve funds they are some amounts of money that is removed from either monthly salary or other sources and save to help and sorts out any needs that would arise on the process of accumulation or holding.

Thank you for clarifying him i hope this time he doesn't get confused anymore about the whole things, because its a serious issue that over the period of time that dude has follow this thread he is still contradicting emergency fund to reserve funds. Let me add to what you have said so far.

In as much as emergency fund is crucial to an investor so that he wont tap into investment when unforeseen matter arises, one should always understand that having an emergency fund gives peace of mind, encourage investment flexibility and foster consistency in accumulation. Many would not understand the importance of emergency fund which is why they dont have one. But ill put it in brief now, emergency fund focuses on short-term needs and easy access to cash while the investor focuses on long term goals.

[Tungbulu]

Even though an investor doesn't have a good income source to keep a reserve and float funds, it is okay, but the investor should always make provisions for emergency funds, even if he has to reduce the money he will be using to accumulate bitcoin weekly or monthly just to build up emergency funds. It is important to have emergency funds when investing in bitcoin so that if any emergency happens, you will have what to use to settle the emergency and not depend on your bitcoin portfolio to solve it.

Exactly one of the reason I strongly preach against lump-summing as a formidable technique when accumulating bitcoin. Lump-summing could lead to aggressive accumulation that may affect other areas of your finance. People should always know that, inasmuch as your investment is necessarily important because it takes care of your long-term goals, there are also short-term goals one needs to meet, it could be from getting groceries to paying some bills at home.

When one adopts an aggressive pattern of investment, or should I say an over aggressive pattern of Bitcoin accumulation, through lump-summing, DCAing or any other accumulation strategy, one can easily forget the need for these short-term goals which are also important and immediately necessary for you to take care of them. Somee invest all their money without seeing the need to focus on these short-term needs, without even considering them as they prioritise their investment over every other thing.

Asides investment, Daily needs will arise, weekly needs will arise and there'll always be monthly bills to pay and most certainly, Emergencies will arise sometime in the future and all these needs to be well prepared for, and being too aggressive will never give you time to consider these facts and when eventually these needs comes up, they run to their investment, maybe take out the profits, (which isn't always the best thing to do in an investment See JJG's Power of Compounding Theory and it might perhaps give more insight to why it's a bad idea to always take out profits) or they ahead to sell a portion of their investment to sort out these things and sometimes at an unfavorable and unreasonable prices, due to lack of adequate preparation for these events.

The second part that you kept that you will use to invest later, what's the logic behind it? Since you are not doing monthly or weekly DCA purchase, why didn't you invest it with the first investment, because I the best time to invest was yesterday. If you are doing a DCA on weekly or monthly basis it would have been a different case. The one you kept to invest later, what if procastination sets it and your attention is diverted and the money is used for something else. Or are you waiting for more dip before you can use the second part to invest? Waiting is dangerous, invest when the money is available and don't wait for a later date. You already had your emergency funds secured and that's good enough, the one that's left for investment, should go into investment immediately without delay. If we wait for tomorrow we might regret, wishing we entered all in when we got our first buy.  

Have you also thought about the possibility that the reason he is feeling reluctant to invest that second part is because he could maybe feel he's being too aggressive in his accumulation and decided to maybe slow down a bit by also considering other necessities.
Or would you rather prefer he invested everything and when the need for that something else comes up and then he's forced to sell few days after buying?
If an investor is using the DCA accumulation strategy, and he chooses to DCA on a monthly basis, and this person lives off of $500 monthly, It sure wouldn't be a great idea to put the whole thing in your investment portfolio and neglecting other needs.

Rather than putting everything, I believe a more suitable approach could be to divide the monthly earning into 3 halves, one goes to your investment, the other goes to your Emergency funds and the last half you can save for the bills and needs that may arise, at least this way, even though some may think that you're not accumulating enough BTC on a monthly basis, but at least your sure that your investment is safe and you've made provision to cover other expenses, so something going all in isn't really the best approach.

I understand your point regarding on that situation but actually the emergency fund should be the less option to be chosen by some individuals since they might doing the wrong thing on their investment since once they touch that funds for sure every time you think you want to buy something you will always resort to take that money and use it for unwanted things. That's why its better to forget about the emergency funds and always use your extra funds on investment. If there's a delay of salary will occur then delay your investment because there's no race on accumulating of bitcoin since any time you can buy this whenever you have funds to use. We always have a choice and for sure salary will not be delayed for months since usually the delay only take for few days so with that there's no really point to use our emergency fund just to buy bitcoin.

You make a very valid point by also emphasizing a little on the benefits of not being too aggressive in one's Bitcoin accumulation, there's absolutely no needed to rush or substitute funds in your Emergency funds or reserve just to accumulate because your Emergency Funds and reserves are just as important as your investments, and like the name implies, any funds accumulated in the Emergency funds is meant for nothing more but an emergency, not for accumulating bitcoin because that's not infact an emergency as it can wait for a couple of days or weeks and you can buy anytime you have the money to buy.

Let's assume one's salary is delayed for a couple of days and you're on a monthly DCA, it's possible to wait that few days or even weeks until your salary is paid and you can go ahead to buy, rather than substituting money meant for emergency to BUY BTC.

The example I gave in my post above is clear for you to know that a delay in someone's weekly or monthly salary payment is a good emergency that will make that person use his emergency fund to cover up until the person receives his salary. For instance, you used to receive your monthly payment at the end of each month, but something happened at the place of your work, and you got paid on the 10th of the new month. You will have no choice but to use your emergency fund to sort out your bills because you never expected that your salary payment would be delayed.

I understand your point regarding on that situation but actually the emergency fund should be the less option to be chosen by some individuals since they might doing the wrong thing on their investment since once they touch that funds for sure every time you think you want to buy something you will always resort to take that money and use it for unwanted things. That's why its better to forget about the emergency funds and always use your extra funds on investment. If there's a delay of salary will occur then delay your investment because there's no race on accumulating of bitcoin since any time you can buy this whenever you have funds to use. We always have a choice and for sure salary will not be delayed for months since usually the delay only take for few days so with that there's no really point to use our emergency fund just to buy bitcoin.

At first, we should be able to differentiate between emergency funds and reserve funds, there should be a clear disparity between both. Emergency funds are funds kept for rear circumstances that may happen, like health problems, fire outbreak and incidents that requires very quick attention but when we say reserve funds, it's more of a funds kept to cover up expenses, those reasons might be slightly known or not. Talking about salary, what should be used in that case is reserve funds and not emergency funds, we all know how the economic situation is, sometimes people get paid earlier or later but the fact is that they must surely be paid, so delay of payment it's not an emergency case.

Emergency funds are important, do not talk of it as less important, we should know when the urgency of resolving an emergency happens, what pops to the mind is to sell off ones investment and your attention may not go for watching the price if it's lower or higher than what was used to enter the market and this will cost losing ones accumulated portfolio that should have been avoided by simply keeping aside both emergency funds and that of the reserve funds.

You've said it all.
A good investor must acknowledge his financial situation as well as sense possible occurrences that are liable to come up in the future and prepare for them. Knowing fully well that your salaries are often delayed or mostly delayed and not prepare for it by having a reserve or floating fund somewhere is just simply careless if you ask me, there are people who work in places where salaries are never delayed, and if peradventure he experiences a delay in salary payment for the first time and didn't prepare for it, then it's understandable at some point because he's never experienced a salary delay before, but a person who's experienced a delay in salary oftentimes, it's only reasonable and logical to always prepare for it.

And yeah, the importance of an Emergency Fund could never be be overemphasized because it's just as important as your Holding itself, because without the availability of the emergency fund, the safety of your investment isn't guaranteed as you'll tend to always look towards that direction whenever you have an emergency (which will surely occur in the long run). So investors should prioritize building their Emergency funds and reserves as much as they prioritize building up their portfolio, because the emergency fund offers your investment more security and safety.

And so with my own situation, I came into bitcoin thinking that I was going to hold whatever I bought for at least a year, but most likely at least 2 years, yet these days I think that many of us know more about bitcoin, and any new investor should be able to commit to investing 4 years or longer.. of course, people are going to be scared and even some of them want to try to play the wave that is likely less than 4 years, and so I consider those folks to be traders and/or gamblers rather than investing, even if some of them might end up changing their minds and decide to stay longer.. just like I continued to stay longer rather than ever making any radical moves to sell large portions of my holdings.. which also could be considered a bit of controversial stance - since we know that in 2018, the correction was in the ballpark of 85%, so that can cause regrets from a lot of folks in terms of not having had sold much or even any BTC during the earlier price rise.

It's always very important for investors to have a long-term perspective when considering Bitcoin investment because that's when one can really reap the actual benefits of Bitcoin.
With how impatient most investors who join the market today are, it's very easy for them to get caught up in the short-term market fluctuations and FOMO, but oneuat commit to a longer investment horizon when investing in Bitcoin because thatt way, you can be able to ride out the market volatility while focusing on the long-term trajectory and potential of Bitcoin.

The experience you've shared about yourself of initially hoping to HODLing for just a year or too but decided to consider a longer term of 4 years or longer investment horizon is a road map to how investors should perceive and embrace Bitcoin investment.

[Cryptoprincess101]

Reserved

I have seen you do something like this before and I thought it was a mistake or some network error from your browser but you making a repetition here makes it obvious that it is a deliberate act and I don't know the reason why you choose to reserve this space but I urge you to desist from this act.

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