Buy the DIP, and HODL!

[Tamaperdana]

There is an interesting tweet from Micheal Saylor which I came across and also shared in my local board. This tweet is great example of how DCA over long duration helps you.

What this tweet tells us is that Microstrategy is gathering Bitcoin from Sep 2020 at different prices and till now they have 628791 Bitcoins and the DCA price of each Bitcoin is 73k USD, while Price of Bitcoin at the time of tweet is 118k USD. That means Microstrategy is getting a profit of almost 45k on every Bitcoin they have. It's true that, If you don't stop buying Bitcoin, you won't stop making Money.  

...

Yes, that's why we should not give up on DCA on bitcoin when we have discretionary funds. Because although the DCA journey is time-consuming, the results are certainly worth it. Because by doing DCA we will not feel heavy, because we divide the discretionary funds that we have or every time we have discretionary funds to buy in bitcoin at a predetermined time and nominal. So we will not feel heavy to do DCA. In contrast to buying bitcoin with a lump sum strategy, of course for some people it will be quite heavy. Because the lumpsum strategy is buying with a large enough nominal at one time. That's why instead of doing a lump sum strategy it's better to just do DCA. Because DCA is much simpler and also more affordable for almost everyone. And until now I also continue to do DCA on bitcoin and hopefully I can continue to consistently do it.

[Sim_card]

Your point is valid, maximizing Bitcoin allocation early can accelerate long term gains, but it is also a higher risk approach. The challenge is that without a decent emergency fund, unexpected expenses could force you to sell Bitcoin at an unfavourable price, effectively turning a temporary dip into a real loss.

It's impossible for you to have a decent emergency funds in the beginning of your bitcoin accumulation phase because you need up to a year or two to be able to build up an emergency funds of three months of your income. This is the main reason why it's important to build your emergency funds with the same amount that you are using to DCA for a start til you have built up your emergency funds.

Emergency may come or not, therefore allocating more money to your emergency funds and allow your bitcoin investmet to be two times smaller than your bitcoin investment is wrong because of debasement of fiat currency overtime.

[Obulis]

I'm thinking and believing that there are guarantees for future rewards

profits is not guaranteed when investing in bitcoin in the long term but we have the positive mindset that we can be profitable in future since we are buying currently and will hodli for long because the odd of bitcoin price going uptrend is higher than downtrend based on history and bitcoin is still in her early stage.

This is the main reason why you are to invest with the amount of money that you can afford to lose and also set up other streams of income so that you don't plan to depend solely on your bitcoin invesment in future because the future is unpredictable and if bitcoin price goes against you, you will not feel disappointed and end up in regrets all the days of your life.

If you ONLY invest in bitcoin, then you are running a risk, yet truly anyone who is brand new to investment, then they are likely better off to focus on investing into bitcoin first, and build it up for a whole cycle or two, and then maybe at some point consider the extent to invest into other assets besides bitcoin and cash.

Surely there are some folks who come to bitcoin and they already have other investments, and so they can choose to keep some of those investments going or they can put everything into bitcoin and cash or they might have some other way or reallocating their investments that are in the investment portfolio.

These are not easy questions to answer since there are a lot of uncertainties in life, yet each of us is responsible for our allocation choices, whether they include bitcoin and/or other assets and how much of each, if any.  Many of us purposefully choose to allocate decently high into bitcoin since we consider it to be amongst the best, if not the best, assets that is currently available to anyone and everyone. .. and at the same time, it is not guaranteed.. so we have to make choices and we will suffer the consequences for any choices we make that involves either our acting to buy bitcoin or our failure to act... and our choice to act to buy bitcoin does not have to be all or nothing, since we can choose the way we go about accumulating bitcoin (if we go down that path) and our position size, too.

Deciding to invest in Bitcoin alone or as part of a diversified portfolio is quite complex. It's advisable for newbies to first get started with Bitcoin as this can be a strategic way for them to first gain experience and insight into the crypto market. And if they're able to accumulate Bitcoin and build their portfolio for the next one or two cycles, they must've already developed a solid strategy that'll enable them reach their financial goals in Bitcoin investment, and then they can reassess and consider diversifying into other assets.
And for those who already have an existing investment, their decision to allocate to Bitcoin or maintain their current portfolio is completely dependent on their individual financial goals, as well as their risk tolerance. Some folks might decide to rebalance their portfolio to include Bitcoin, and others may decide to choose maintaining their already existing investments, it all comes down to what the individual thinks is best for their financial goals.

Another very essential point that a lot of folks fail to take note of is the fact that Bitcoin investment doesn't really have to be an all or nothing proposition. It's okay if investors choose to allocate a portion of their portfolio to Bitcoin while still maintaining other investments too. This is a very good approach that allows for more flexibility as well as risk management, and also enabling investors to adapt to the potential changes in the market conditions...

Investment can be parallel and must not be that bitcoin should be made a number prior of our portfolios.
Some may have been investing on other assets before diversifying on bitcoin or the vice versa. The key point there is how do you achieve those financial goal? And the truth is that we just have to act base on the investment risks so it does not affect other assets and how we can maximize the edges of wealths by building more resourceful opportunities can also be essential.
The future is far away but can be dragged closely if we are too in a haste. So if you ain't hastening, bitcoin would have that satisfactory returns of the efforts and sacrifices you have made in the long run regardless to how much of bitcoin you bought but if in a haste, then you are probably going to miss out the good times in the future when you opts out before your designated duration. Of course price will always increase in the long time even while it fluctuates around the up and down trends. It can be probable referring to the market history and the market cap where bitcoin is getting more attractive globally.

Determining the price of Bitcoin is a challenge, but Bitcoin is cheaper today than in the future because the price of Bitcoin has surpassed the highest price in Barbara's history. While you should not rush into investing in Bitcoin, using the DCA strategy, if you have a source of income from which you can spend a portion of the profit on your valuable work and invest the remaining money, then you can continue to invest weekly or monthly through DCA.  Again, it is not uncommon for new investors to do this by considering the history of Bitcoin according to their knowledge because Bitcoin has a history, but what they see is that Bitcoin has been able to increase its price to the highest in history at the present time and they continue to invest in Bitcoin considering this positive aspect because they also want to make a profit because they want to spend a large amount of Bitcoin so that they can achieve high profits, but they should refrain from such short-term plans because the price of Bitcoin fluctuates almost all the time, which can scare them because if they are new to investing, it is better for them to use the DCA strategy because the DCA strategy relieves you of the hassle of guessing market timing. And by investing for a long time, you can strengthen your investment over time.

[Yes, you’re right that long term holders have been rewarded, but yet it’s still not a guarantee that long term rewards will continue to happen in future. So, profits are not guaranteed in Bitcoin even though we know that bitcoin is among the best, if not the best.  Therefore, investing with you can afford to lose, will give you edge to stand the volatility of Bitcoin and That’s the more reason why it’s advisable to invest with your discretionary funds.

Again, apart from your Bitcoin investment, one also need to devise other means of of generating income even now and in the future

About the future of BTC has been a serious quest by all (new and old). Such is life, imagine those that bought Bitcoin using DCA and discretionary funds 2 years ago and still have it till now, I guess that's what one is hoping by implications in future  (and that's why the word guarantee future is always flying out). Let me not say guarantee any more but Bitcoin might definitely hit a standard say a $100k+ standard that will be unlike it should it fall behind it__not undermining its volatility anyways..
Then talking about DCA with discretionary fund approach to stacking Bitcoin, ur Bitcoin asset becomes an automatic discretionary fund even if profit is not made. For sure the target is to make profit but DCA And discretionary funds approach can likewise become a profitable venture should Bitcoin keep to a higher hight above what it's bought right now..

As of other investment, that's a good idea. Not having other thing (s) to get money has left some people in conditions that they can handle ordinarily but can't because of little or no savings... Not to forget, not having others means of income (to a discretionary point and or DCA approach) stopped some people from investing in Bitcoin in the past.

[cxtreenal]

Your point is valid, maximizing Bitcoin allocation early can accelerate long term gains, but it is also a higher risk approach. The challenge is that without a decent emergency fund, unexpected expenses could force you to sell Bitcoin at an unfavourable price, effectively turning a temporary dip into a real loss.

It's impossible for you to have a decent emergency funds in the beginning of your bitcoin accumulation phase because you need up to a year or two to be able to build up an emergency funds of three months of your income. This is the main reason why it's important to build your emergency funds with the same amount that you are using to DCA for a start til you have built up your emergency funds.

Emergency may come or not, therefore allocating more money to your emergency funds and allow your bitcoin investmet to be two times smaller than your bitcoin investment is wrong because of debasement of fiat currency overtime.

I agree with you that emergencies may or may not arise while investing, but we should be prepared for them. It would be a good idea to set aside a portion of our discretionary funds for an emergency fund if we can set a long term target for Bitcoin accumulation. I think the amount that should be allocated for an emergency fund should be 1/4 or less of the amount allocated for Bitcoin. This method allows you to maintain fund management while in DCA. The two years you mentioned to build three month emergency fund is fine, although it might be a good idea to set aside some of our bonuses from work and save some for an emergency fund. Fiat is constantly depreciating, due to inflation, we have to buy products at skyrocketing prices, so holding Bitcoin is essential for you as an alternative financial security.

[Jostern]

My example is largely to show that a guy might have a lot of things going on that causes him inabilities to have any assurances regarding the steadiness of his income, but he can still determine that he has enough discretionary funds in which he can choose to buy bitcoin with some of those discretionary funds, whether he continues at $100 per week or some other amount that he might consider to be adjustments to his weekly buys based on ongoing changes in his income and/or expenses situation.

Another example, might involve a guy who uses debt to help to smooth over his cash flow circumstances, and he might use some of the debt to buy bitcoin and other parts to increase his future income earning potentials.  There can be good uses of debt, even though complicated, but if the terms of the debt are reasonably good, the guy could embark on using debt to bolster his finances and to get him through transitionary periods, and he may well even have ways to pay the debt that are based on future income that might not yet be established but he already has various ideas about where he might be able to get future income based on whatever he has going on or maybe some doors he considers that the capital might help him to open.

You’re absolutely right, I’ve come to understand that there are a lot of things that could as well Make us vulnerable to making bad decisions concerning our finances, which would probably be a reason that we might not be able to have enough Discretionary income to be able to accumulate more Bitcoin into our portfolio and also try to stack up more Bitcoin into our portfolios, having an unfavorable lifestyle management strategy where we could be able to control ourselves when we have our income that we take care of our expenses and managing expenses which could be very important, sometimes it might as well be different for us that we find it very difficult to be able to successfully manage our expenses and sometimes we tends to overspend on things that aren’t important or necessary, mostly self control could actually help us when we might as well find it very difficult to be able to control ourselves, we’ve to be conscious and disciplined to be able to control and manage our finances when we have it depending on weekly and monthly basis, so we could be able to stay in line with accumulating more bitcoin into our portfolio. We might as well decide to cut out and adjust some unnecessary expenditure to have more availability of discretionary income.

I think there are people who could go some extra mile just to take out some loans to be able to afford some things like what we could call a basic mortgage payment, just to buy some extra stuff for themselves and the family as well, like buying some clothes and buy some shoes and also buying things like cars on a mortgage payment, it’s actually the reality for them, and there are guys who must have been into different business before coming into bitcoin investment, they could actually be comfortable with there own desired strategy of accumulating bitcoin which they could feel comfortable with, and there could be others as well who are from some wealthy family, they could actually decide to tell their parents or family members of their investments in bitcoin and they could come up with some comfortable loans for themselves that will be able to help to adjust to expenditures of accumulating and having more discretionary income, well I will be comfortable of taking loans or mortgage for the purpose of having more discretionary income to accumulate more bitcoin instead of taking a mortgage for some unnecessary expenses that wouldn’t be beneficial to my Bitcoin investment.

[Regardme]

Your point is valid, maximizing Bitcoin allocation early can accelerate long term gains, but it is also a higher risk approach. The challenge is that without a decent emergency fund, unexpected expenses could force you to sell Bitcoin at an unfavourable price, effectively turning a temporary dip into a real loss.

It's impossible for you to have a decent emergency funds in the beginning of your bitcoin accumulation phase because you need up to a year or two to be able to build up an emergency funds of three months of your income. This is the main reason why it's important to build your emergency funds with the same amount that you are using to DCA for a start til you have built up your emergency funds.

Emergency may come or not, therefore allocating more money to your emergency funds and allow your bitcoin investmet to be two times smaller than your bitcoin investment is wrong because of debasement of fiat currency overtime.

Prioritizing  emergency funds is very important for financial stability, especially when you want to start your investment journey using DCA. Also allocating some money  to emergency fund while start DCAing is a very solid advice because that would ensure that one isn’t left vulnerable while chasing a long term goal.

Again, your statement of it being impossible for someone having a decent emergency funds at the beginning of Bitcoin accumulation doesn’t seem to be so correct. Because there are so persons who have build up an emergency funds even before going into investing in Bitcoin. Most people build emergency funds through regular income and budgeting, thereby prioritizing and strengthening their financial security. They might have been working for years now, probably have been building up their emergency funds all these years, then now decides to start investing in bitcoin this year using DCA method

[Futurexxx]

Then talking about DCA with discretionary fund approach to stacking Bitcoin, ur Bitcoin asset becomes an automatic discretionary fund even if profit is not made. For sure the target is to make profit but DCA And discretionary funds approach can likewise become a profitable venture should Bitcoin keep to a higher hight above what it's bought right now..

I never wanted to respond to this but I am just too confused by this statement here, please @obulis can you please throw more light on what you are trying to say?
Because I don't know how your Bitcoin asset will become a discretionary funds all of a sudden, or am I the only one misinterpreting the bold statement, please if you really understand what you wanted to say, come and throw more light on it so that we can understand , because this seems misleading if it's what am thinking.

[blackberrman]

Your point is valid, maximizing Bitcoin allocation early can accelerate long term gains, but it is also a higher risk approach. The challenge is that without a decent emergency fund, unexpected expenses could force you to sell Bitcoin at an unfavourable price, effectively turning a temporary dip into a real loss.

It's impossible for you to have a decent emergency funds in the beginning of your bitcoin accumulation phase because you need up to a year or two to be able to build up an emergency funds of three months of your income. This is the main reason why it's important to build your emergency funds with the same amount that you are using to DCA for a start til you have built up your emergency funds.

Emergency may come or not, therefore allocating more money to your emergency funds and allow your bitcoin investmet to be two times smaller than your bitcoin investment is wrong because of debasement of fiat currency overtime.

Prioritizing  emergency funds is very important for financial stability, especially when you want to start your investment journey using DCA. Also allocating some money  to emergency fund while start DCAing is a very solid advice because that would ensure that one isn’t left vulnerable while chasing a long term goal.

Again, your statement of it being impossible for someone having a decent emergency funds at the beginning of Bitcoin accumulation doesn’t seem to be so correct. Because there are so persons who have build up an emergency funds even before going into investing in Bitcoin. Most people build emergency funds through regular income and budgeting, thereby prioritizing and strengthening their financial security. They might have been working for years now, probably have been building up their emergency funds all these years, then now decides to start investing in bitcoin this year using DCA method

Having an emergency fund is very important, you never know when you will face a problem where you can spend a large amount of money, so in case you are not financially affected, create an emergency fund so that you can handle the situation, for this reason, you need to be quite aware before starting to invest because if you invest in Bitcoin, you have to do it for the long term because the long term will help you increase your wealth, even if you do not own a large amount of money, you can still invest because to invest you only need a portion of your income source, even if it is a small amount, you can invest weekly or monthly using the DCA strategy. In this way, if your investment continues for a long time, you can strengthen your wealth which will bring security in your retirement life.

[JayJuanGee]

My example is largely to show that a guy might have a lot of things going on that causes him inabilities to have any assurances regarding the steadiness of his income, but he can still determine that he has enough discretionary funds in which he can choose to buy bitcoin with some of those discretionary funds, whether he continues at $100 per week or some other amount that he might consider to be adjustments to his weekly buys based on ongoing changes in his income and/or expenses situation.

Another example, might involve a guy who uses debt to help to smooth over his cash flow circumstances, and he might use some of the debt to buy bitcoin and other parts to increase his future income earning potentials.  There can be good uses of debt, even though complicated, but if the terms of the debt are reasonably good, the guy could embark on using debt to bolster his finances and to get him through transitionary periods, and he may well even have ways to pay the debt that are based on future income that might not yet be established but he already has various ideas about where he might be able to get future income based on whatever he has going on or maybe some doors he considers that the capital might help him to open.

The scenarios you gave really did justice to your assertion that it's possible to have a discretionary fund and thus still continue to accumulate Bitcoin even without a stable income. I carefully read through every paragraph, and although I read to a point that almost conflicted with my perspective about not investing with one's backup funds, because from your scenario you suggested that in a situation where an individual losses his job and has no more income coming in, they'll live off of their emergency fund, and also get a discretionary income from the same emergency fund which of course makes more sense now because losing one's job is an actual emergency, and surely one can live off of their emergency fund until they get another job or called back to their previous job. And I love the fact that you also mentioned that it's entirely an individual decision to continue accumulating Bitcoin at this point, even though it is very possible to have a discretionary fund and thus, still continue Investing in Bitcoin.

And then I have just one question, or maybe a scenario that I'll need to be clarified on.
A situation where an investor has successfully accumulated enough emergency fund, let's say 3-4 months of their living expenses, and then they lose their current job and starts living off of their emergency fund and of course continued Investing in Bitcoin, while they hunt for another job, and then unfortunately they exhausted their emergency fund, even though they managed to cut down their expenses to the minimal, because surely there are countries, especially the third world countries that have not too many job opportunities and thus folk happen to be in one of this country and he's unable to secure another job for the next 4 to 5 months, or let's assume a dispute broke out in that country that led to war and it affected the country's economy and job market, thereby making it even more difficult and challenging for the individual to secure a new employment. In such scenario, what would be the next step to take, giving that their emergency and other backup funds have completely dried up leaving him with his Bitcoin investment which is is determined never to touch.

You seem to be fighting a bit with the scenario that I gave, and giving your own version which seems a bit more desperate than the version that I had described.  Of course,  my version is one in which the guy already has a lot of back up funds in various forms, and even when he lost his job, he figured out some ways to cut down a lot of his expenses from $900 per month to $500 per month during his process of looking for a new job.

In my version, the guy has 3 months of emergency funds if his expenses were to remain the same at $900 per month (since he has $2,700 in his emergency funds), he also has $5k in other non-bitcoin investments and he has $1,800 in his back up.  He is not short of funds, and maybe I made it a bit unrealistic.. since in my hypothetical he had been able to figure out ways to decrease his expenses from $900 per month to $500 per month (maybe he gets a roommate to share expenses?), and even though he is contemplating a trip that would cost him $700, he still has enough funds to do that, and the trip has some likelihood (75% I estimated in the example) to lead to a fairly lucrative job of $2,900 for 3 weeks work).   The example does not need to be as extreme as mine in order for such a guy to be able to decide both to continue to buy bitcoin and/or to plan for some extra expenditures that he might undertake and/or even for him to not be desperate in his search for another position, since as I mentioned the guy in my example is seeking to improve his employment and his future pay, which might take some time to build such a thing.

In your example, you are painting a more desperate situation, so the guy is likely not going to have as many options, and surely, I had never suggested continuing to buy bitcoin if the emergency funds (or all that is left in the back up funds) is down to ONLY 3 months of expenses.  By the time you get down to ONLY have 3 months of expenses left in your budget, you are getting to a pretty desperate situation, so you are going to have more urgency in regards to increasing the income and/or cutting any further expenses, and from my own perspective it would not be a good idea to keep buying bitcoin in those circumstances, even if the BTC price were to dip.

Now in my own situation, as the guy depletes more and more of his funds and maybe he is not having luck finding better employment, so he might have to resort to doing something right away and taking whatever he can get to improve his income situation.  There are degrees to these matters, and surely having decently high levels of back up funds would create more options, yet the more a guy is uncertain about his abilities to earn future income, the the more likely that he is going to have to cut his expenses and perhaps even reduce or completely stop buying bitcoin until his circumstances improve.  Surely if he is running out of back up funds and even in my situation the guy had some other investments that added up to around $5k, so if he gets to a point that he has depleted all his cash, and he only has the bitcoin investment and the other $5k non-bitcoin investment, then he has to choose between which ones of those he would spend from next. 

Tough decisions, and guys are not necessarily going to choose in the same way or even make the right choices when they are trying to figure out how to pay their expenses when their income might have had completely dried up or maybe it had just gotten reduced and became more sporadic.. since there still sometimes could be jobs that a guy could do, yet if they guy had gotten hit by a bus, and so maybe he is recovering from his injuries, he might not have as many options as a guy who had not suffered some health event and/or injuries.

Another thing with the situation that you describe, the guy does not seem to have as many options, and he is just seeking whatever employment that he can get and hoping that he can get employment before his money runs out, so he may well not even be in a position that he can seek higher paying employment and he may well not be in a position to continue to buy bitcoin unless he gets someone telling him that he is going to start his new position next week and it will be x, y or z pay, and so at that point, even though he had not gotten paid yet he has higher levels of certainty that his income is going to continue to come in.. yet I personally don't have a lot of confidence to count on money being in available to me if it is dependent upon various actions of other people or various events in the future that had not happened.. so sometimes we need to be careful in regards to spending money that has not yet reached us, even though there are some circumstances that we might have more confidence that the money will be coming on the date that it is expected to come.

I get the logic behind having an emergency fund before buying Bitcoin, but in reality, it is  not always practical,especially for someone with a small or irregular discretionary income. Waiting months to build a fund before getting any exposure can mean missing out entirely if the price moves significantly in the meantime..........imagine someone has $100 left after covering basic needs each month. If they spend five months saving $500 for emergencies before buying any Bitcoin, they risk sitting on the sidelines while the price rises 30 to 40%. Instead, they could put $20 into Bitcoin right away and use the remaining $80 to start building their emergency fund, adjusting the balance as they go. This way, they are in the market early but still working toward financial security.

An emergency fund is still essential because it stops you from panic selling Bitcoin when life throws you an unexpected bill. But it doesn’t need to be fully built before your first satoshi. A balanced approach is buy small amounts of Bitcoin early, build the fund in parallel, and never dip into it for investments... that keeps you both protected and invested.

I understand that emergency funds are very important in Bitcoin investment, but that should not shift our focus away from starting well with our Bitcoin investment. We should give our Bitcoin investment more power than our emergency funds. So, I don't think it's a good idea when we have $100 left over after our basic needs are solved, to just invest $20 and put the remaining $80 into emergency funds. I think we should first start our Bitcoin investment with $60 or $70 and put like $30 or $40 into emergency funds. For me, it makes more sense to focus on building our Bitcoin investment first, rather than focusing solely on building emergency funds. If someone can't invest more of their discretionary funds into Bitcoin, then they should split it 50% each for emergency funds and Bitcoin investment. But I am not in support of investing very little in Bitcoin and pushing more funds into emergency savings.

It is possible that some persons had bad cashflow management practices prior to coming into bitcoin, yet I imagine many folks had already been in the habit of maintaining some kind of a financial cushion, whether 2-6 weeks or some other amount. So it is likely that few folks are starting to invest into bitcoin with absolutely no cash cushion.  So then like you suggest, Humblevirus, there is a choice regarding how fast to build up our back up funds as compared to building up our bitcoin holdings, and even if your ultimate goal is to get your back up funds to 3-4 months or more, there still can be some differences of opinions regarding how fast to build each of them (the bitcoin investment and the backup funds) and what are the reasons for building each at a certain rate... Question of what is being protected and how certain is the income and what happens if the income dries up what are various back up scenarios, and yeah sometimes there is importance to prepare for extreme scenarios, yet maybe we start out not as prepared for extreme scenarios yet as our bitcoin holdings get larger and larger we have more motivations to protect it, yet at the same time our total wealth is continuing to grow too and we are hopefully making progress in building in a variety of ways that we would have back up funds that we could tap into upon differing scenarios...

and yeah maybe in the first 3-6 months or more while we are in the initial stages of building our bitcoin and our back up funds, we may even understand that our bitcoin is serving a bit like an emergency fund because all of our back up funds are not going to get us through a variety of scenarios that could happen, yet we consider our ongoing building of both the bitcoin and the back up funds to be reasonably balanced including that we consider that our odds of getting through our first 3-6 months and even longer is good since we are ongoingly putting ourselves in better and better financial and psychological circumstances as compared with our practices prior to bitcoin, so we are little by little getting stronger and stronger and yeah, if we have some really big uncertainties regarding our income, then we might have to emphasize the back up funds more than the bitcoin, and if we have stronger certainties regarding our income (or back up income that we could get if we were to lose our job) then we would emphasize more on the bitcoin side of the building of our finances.

And even you, Humblevirus, by your forum registration date, you may have had been investing in bitcoin and building your back up funds for 2 to 2.5 years or maybe more, and you likely realize that the beginning stages might be the more difficult for any guy, yet surely each of us start from differing places regarding what kinds of back up resources we have available to us, and also some of us might have started out our bitcoin journey while screwing up with our cashflow management, or trying to trade, or shitcoining, or even lack of conviction (overly whimpiness) so we might have had started with bitcoin and got distracted and then maybe having to restart at a later date with better practices.

[ruykeri]

Your point is valid, maximizing Bitcoin allocation early can accelerate long term gains, but it is also a higher risk approach. The challenge is that without a decent emergency fund, unexpected expenses could force you to sell Bitcoin at an unfavourable price, effectively turning a temporary dip into a real loss.

It's impossible for you to have a decent emergency funds in the beginning of your bitcoin accumulation phase because you need up to a year or two to be able to build up an emergency funds of three months of your income. This is the main reason why it's important to build your emergency funds with the same amount that you are using to DCA for a start til you have built up your emergency funds.

Emergency may come or not, therefore allocating more money to your emergency funds and allow your bitcoin investmet to be two times smaller than your bitcoin investment is wrong because of debasement of fiat currency overtime.

Prioritizing  emergency funds is very important for financial stability, especially when you want to start your investment journey using DCA. Also allocating some money  to emergency fund while start DCAing is a very solid advice because that would ensure that one isn’t left vulnerable while chasing a long term goal.

Again, your statement of it being impossible for someone having a decent emergency funds at the beginning of Bitcoin accumulation doesn’t seem to be so correct. Because there are so persons who have build up an emergency funds even before going into investing in Bitcoin. Most people build emergency funds through regular income and budgeting, thereby prioritizing and strengthening their financial security. They might have been working for years now, probably have been building up their emergency funds all these years, then now decides to start investing in bitcoin this year using DCA method

What I personally think is that if you invest with discretionary income following DCA, you need to have both an emergency fund and a reserve fund. So that if you face any financial problem in the future, you don't have to sell Bitcoin. However, before starting investing, someone thinks in two ways: first create an emergency fund and then start investing or start investing while creating an emergency fund. However, what I think is more beneficial is to create an emergency fund along with investing in BTC. Let's say someone's income is $1000 per month, here his discretionary income is $250, which is about 25% of his income. So if he wants to create an emergency fund for 3 months first, then he has to wait at least 1 year if he wants to deposit his entire discretionary income. If he does not invest in Bitcoin in this one year, then he will miss out on this one year opportunity. So the most correct way i think is that if he wants to invest monthly, then he will invest some part of his discretionary income in Bitcoin and along with he will also continue to form an emergency fund with other part . In this way, he will not lose the opportunity of investing in Bitcoin. And the emergency fund will also be formed.

[Derekfunds]

Your point is valid, maximizing Bitcoin allocation early can accelerate long term gains, but it is also a higher risk approach. The challenge is that without a decent emergency fund, unexpected expenses could force you to sell Bitcoin at an unfavourable price, effectively turning a temporary dip into a real loss.

It's impossible for you to have a decent emergency funds in the beginning of your bitcoin accumulation phase because you need up to a year or two to be able to build up an emergency funds of three months of your income. This is the main reason why it's important to build your emergency funds with the same amount that you are using to DCA for a start til you have built up your emergency funds.

Emergency may come or not, therefore allocating more money to your emergency funds and allow your bitcoin investmet to be two times smaller than your bitcoin investment is wrong because of debasement of fiat currency overtime.

Prioritizing  emergency funds is very important for financial stability, especially when you want to start your investment journey using DCA. Also allocating some money  to emergency fund while start DCAing is a very solid advice because that would ensure that one isn’t left vulnerable while chasing a long term goal.

Again, your statement of it being impossible for someone having a decent emergency funds at the beginning of Bitcoin accumulation doesn’t seem to be so correct. Because there are so persons who have build up an emergency funds even before going into investing in Bitcoin. Most people build emergency funds through regular income and budgeting, thereby prioritizing and strengthening their financial security. They might have been working for years now, probably have been building up their emergency funds all these years, then now decides to start investing in bitcoin this year using DCA method

The best thing to prioritize most in our Bitcoin investment is our discretionary income because without our discretionary income we can not invest in Bitcoin ( start Bitcoin investment) but one can start without emergency funds but will later build it up as time goes on and in life if you don't know what to prioritize you will find it difficult to succeed.

Based on what I have said so far, it is not impossible for someone not to have decent emergency funds at the beginning of their investment and it is not even wrong, like I said earlier you don't need emergency funds to start Bitcoin investment all one need to start is discretionary income and then emergency funds can be build up or work on later while you are accumulating your Bitcoin though this is based on capacity, some can have both before starting but it is not a must or criteria to have a decent emergency funds before starting Bitcoin investment.

[ndutndut]

Your point is valid, maximizing Bitcoin allocation early can accelerate long term gains, but it is also a higher risk approach. The challenge is that without a decent emergency fund, unexpected expenses could force you to sell Bitcoin at an unfavourable price, effectively turning a temporary dip into a real loss.

It's impossible for you to have a decent emergency funds in the beginning of your bitcoin accumulation phase because you need up to a year or two to be able to build up an emergency funds of three months of your income. This is the main reason why it's important to build your emergency funds with the same amount that you are using to DCA for a start til you have built up your emergency funds.

Emergency may come or not, therefore allocating more money to your emergency funds and allow your bitcoin investmet to be two times smaller than your bitcoin investment is wrong because of debasement of fiat currency overtime.

This is sound advice. Indeed, many people are still hesitant about investing because they focus on emergency funds. If you accumulate an emergency fund until you have enough, it will never be enough. Therefore, we should invest the same amount as our emergency fund. If you focus solely on the emergency fund, you won't be able to invest, and as you said, fiat currencies will continue to depreciate over time.

So, continue buying Bitcoin through the DCA method, weekly or monthly, in an amount equal to your emergency fund. My point is, don't get caught up in preparing an emergency fund and miss out on opportunities to invest in Bitcoin. An emergency fund is important, but you must also allocate your income for investment after allocating your emergency fund and your needs.

[Jaksonhard]

Your point is valid, maximizing Bitcoin allocation early can accelerate long term gains, but it is also a higher risk approach. The challenge is that without a decent emergency fund, unexpected expenses could force you to sell Bitcoin at an unfavourable price, effectively turning a temporary dip into a real loss.

It's impossible for you to have a decent emergency funds in the beginning of your bitcoin accumulation phase because you need up to a year or two to be able to build up an emergency funds of three months of your income. This is the main reason why it's important to build your emergency funds with the same amount that you are using to DCA for a start til you have built up your emergency funds.

Emergency may come or not, therefore allocating more money to your emergency funds and allow your bitcoin investmet to be two times smaller than your bitcoin investment is wrong because of debasement of fiat currency overtime.

Of course, it is important to know when one has an emergency before saving Bitcoin. This should be at least 6-7 months of his necessary expenses in the emergency fund. Yes, you are right, he can save some amount of Bitcoin every month until he accumulates his emergency fund. Which he will gradually accumulate his emergency fund and start saving Bitcoin with it.

There is no guarantee that an emergency will not come, when he invests some amount of money in Bitcoin, if at that time he needs money in an emergency, he can spend the money in his emergency fund, which will not put any pressure on his Bitcoin investment.

[yixichloro2xx]

Your point is valid, maximizing Bitcoin allocation early can accelerate long term gains, but it is also a higher risk approach. The challenge is that without a decent emergency fund, unexpected expenses could force you to sell Bitcoin at an unfavourable price, effectively turning a temporary dip into a real loss.

It's impossible for you to have a decent emergency funds in the beginning of your bitcoin accumulation phase because you need up to a year or two to be able to build up an emergency funds of three months of your income. This is the main reason why it's important to build your emergency funds with the same amount that you are using to DCA for a start til you have built up your emergency funds.

Emergency may come or not, therefore allocating more money to your emergency funds and allow your bitcoin investmet to be two times smaller than your bitcoin investment is wrong because of debasement of fiat currency overtime.

I understand the logic behind focusing on an emergency fund first, but waiting a whole year or two before stacking Bitcoin can cost you valuable entry opportunities. With fiat losing value over time, keeping too much in cash early on means your purchasing power is quietly shrinking........A better way might be to grow both at the same time but  not necessarily equally, but in a proportion that gives you quick access to emergency cash while still building your Bitcoin position. This keeps you financially flexible without missing out on potential upside. What matters is finding that balance where you are not overexposed to either risk or sudden expenses or lost Bitcoin buying power.

What I personally think is that if you invest with discretionary income following DCA, you need to have both an emergency fund and a reserve fund. So that if you face any financial problem in the future, you don't have to sell Bitcoin. However, before starting investing, someone thinks in two ways: first create an emergency fund and then start investing or start investing while creating an emergency fund. However, what I think is more beneficial is to create an emergency fund along with investing in BTC. Let's say someone's income is $1000 per month, here his discretionary income is $250, which is about 25% of his income. So if he wants to create an emergency fund for 3 months first, then he has to wait at least 1 year if he wants to deposit his entire discretionary income. If he does not invest in Bitcoin in this one year, then he will miss out on this one year opportunity. So the most correct way i think is that if he wants to invest monthly, then he will invest some part of his discretionary income in Bitcoin and along with he will also continue to form an emergency fund with other part . In this way, he will not lose the opportunity of investing in Bitcoin. And the emergency fund will also be formed.

I get point, If someone waits until they have  fully built a 3 month emergency fund before touching Bitcoin, they risk losing a whole year or more of potential low  cost accumulation. With Bitcoins volatility, delaying entry can have a significant long term impact on overall returns.
The smarter approach is to split discretionary income between both goals. For example, with $250/month available, allocate a portion to Bitcoin and a portion to the emergency fund simultaneously. That way, you are protecting yourself from unexpected expenses while still building your Bitcoin stack consistently. This dual track strategy keeps you in the game and avoids the trap of having to sell BTC later to cover emergencies.

[icebar]

Your point is valid, maximizing Bitcoin allocation early can accelerate long term gains, but it is also a higher risk approach. The challenge is that without a decent emergency fund, unexpected expenses could force you to sell Bitcoin at an unfavourable price, effectively turning a temporary dip into a real loss.

It's impossible for you to have a decent emergency funds in the beginning of your bitcoin accumulation phase because you need up to a year or two to be able to build up an emergency funds of three months of your income. This is the main reason why it's important to build your emergency funds with the same amount that you are using to DCA for a start til you have built up your emergency funds.

Emergency may come or not, therefore allocating more money to your emergency funds and allow your bitcoin investmet to be two times smaller than your bitcoin investment is wrong because of debasement of fiat currency overtime.

Of course, it is important to know when one has an emergency before saving Bitcoin. This should be at least 6-7 months of his necessary expenses in the emergency fund. Yes, you are right, he can save some amount of Bitcoin every month until he accumulates his emergency fund. Which he will gradually accumulate his emergency fund and start saving Bitcoin with it.

There is no guarantee that an emergency will not come, when he invests some amount of money in Bitcoin, if at that time he needs money in an emergency, he can spend the money in his emergency fund, which will not put any pressure on his Bitcoin investment.

People can face emergencies at any time. No one knows exactly when it will happen, which is why being prepared in advance is definitely a good idea, especially for those who are interested in long-term investment in Bitcoin. If a reserve fund can be formed for a period of 3 months, it is definitely a good idea. There is no need for him to take extra time to form his reserve fund. If he forms a part of his discretionary income for the reserve fund and continues to invest in Bitcoin regularly with the other part, then he can increase the amount of Bitcoin at the same time and ensure his financial security in the long term. Profit cannot be guaranteed in investing in Bitcoin, but the possibility increases if you keep it for a long time.

[Popkon6]

@Bluedrem you can’t say only an investor with a fixed income can invest in bitcoin, using the word ONLY means there’s no other way or means to achieve that which is entirely wrong. Then you went ahead to talk about using a discretionary income, are you not now misunderstanding your self? Because you can have discretionary money without having fixed or stable income. I believe you know what’s needed but you’ve not fully grasped it.

I made a little typing mistake in that line. I was supposed to use the "? " symbol at the end of the sentence, but the symbol may have been accidentally deleted while posting. I asked him if he thought that only an investor with a stable income can invest in Bitcoin.
If you read the next part of my post, then I might have said that only a stable income can invest in Bitcoin. Bitcoin investment requires discretionary income.
Because a person's stable income = money needed to meet basic needs, he will not get additional money for investment, so he will not invest. And if he invests in Bitcoin from the money he has allocated to meet his basic needs, his investment will not be sustainable.
Actually, I asked him in that line to explain the need for discretionary income for Bitcoin investment that - how can a person invest in Bitcoin if he has a stable income if he does not have discretionary income.

To invest in Bitcoin, you definitely need income, not just investing in Bitcoin, in any case, if you want to fight for your life, then of course, earning money is the most important thing. If you can't earn money, then how will you survive, so the more income you have, the more Bitcoin investment you can make according to the DCO method. Because if the DCA method usually tries to increase the smallest amount every week, then of course, he will be able to live a better life and ensure his future financially.
To feel more comfortable financially, it is most important to collect Bitcoin according to the DCA method, someone I met fulfilled his dream of collecting Bitcoin according to the DCA method for a long time.
https://bitcointalk.org/index.php?topic=5553157.msg65667920#msg65667920

[SmartCharpa]

I understand that emergency funds are very important in Bitcoin investment, but that should not shift our focus away from starting well with our Bitcoin investment. We should give our Bitcoin investment more power than our emergency funds. So, I don't think it's a good idea when we have $100 left over after our basic needs are solved, to just invest $20 and put the remaining $80 into emergency funds. I think we should first start our Bitcoin investment with $60 or $70 and put like $30 or $40 into emergency funds. For me, it makes more sense to focus on building our Bitcoin investment first, rather than focusing solely on building emergency funds. If someone can't invest more of their discretionary funds into Bitcoin, then they should split it 50% each for emergency funds and Bitcoin investment. But I am not in support of investing very little in Bitcoin and pushing more funds into emergency savings.

Of course, our emergency funds should not go over our investing budget. I agree with you on this. because, at the same time, I believe that both must grow together, since Bitcoin will give us a good return, but it is also unpredictable, and without an emergency fund, we can end up selling our investment at a loss only to cover our emergency needs.

I believe we can set a 50% balance, as you said, by not putting too much into emergencies to the point where our Bitcoin investment is affected, but also not investing too much into Bitcoin that we have nothing to rely on as a backup. It's about finding a balance place where our investments can rise, at the same time, we still save for unexpected problems.

[Cryptohygenic]

@Bluedrem you can’t say only an investor with a fixed income can invest in bitcoin, using the word ONLY means there’s no other way or means to achieve that which is entirely wrong. Then you went ahead to talk about using a discretionary income, are you not now misunderstanding your self? Because you can have discretionary money without having fixed or stable income. I believe you know what’s needed but you’ve not fully grasped it.

I made a little typing mistake in that line. I was supposed to use the "? " symbol at the end of the sentence, but the symbol may have been accidentally deleted while posting. I asked him if he thought that only an investor with a stable income can invest in Bitcoin.
If you read the next part of my post, then I might have said that only a stable income can invest in Bitcoin. Bitcoin investment requires discretionary income.
Because a person's stable income = money needed to meet basic needs, he will not get additional money for investment, so he will not invest. And if he invests in Bitcoin from the money he has allocated to meet his basic needs, his investment will not be sustainable.
Actually, I asked him in that line to explain the need for discretionary income for Bitcoin investment that - how can a person invest in Bitcoin if he has a stable income if he does not have discretionary income.

To invest in Bitcoin, you definitely need income, not just investing in Bitcoin, in any case, if you want to fight for your life, then of course, earning money is the most important thing. If you can't earn money, then how will you survive, so the more income you have, the more Bitcoin investment you can make according to the DCO method. Because if the DCA method usually tries to increase the smallest amount every week, then of course, he will be able to live a better life and ensure his future financially.
To feel more comfortable financially, it is most important to collect Bitcoin according to the DCA method, someone I met fulfilled his dream of collecting Bitcoin according to the DCA method for a long time.
https://bitcointalk.org/index.php?topic=5553157.msg65667920#msg65667920

I hope we don't forget something that this discretionary income could be any form of resources that brings us the profits. It might be from a stable or unstable source of income.
Looking at the end to end of bitcoin price, having stable source of income is really safer for investors because you will always do your expenses including buying of bitcoin consistently and holding without the reason to turn back and sell out of panic for every reasons and without a stable source the investment plans may be intercepted because once you are indeed in need, there will be every reasons to sell. Although investing on bitcoin and make s successful dream can be tough for every category of investors with their financial differences while disciples is the key attributes to make those dreams reality.

[Sonia_123]

@Bluedrem you can’t say only an investor with a fixed income can invest in bitcoin, using the word ONLY means there’s no other way or means to achieve that which is entirely wrong. Then you went ahead to talk about using a discretionary income, are you not now misunderstanding your self? Because you can have discretionary money without having fixed or stable income. I believe you know what’s needed but you’ve not fully grasped it.

I made a little typing mistake in that line. I was supposed to use the "? " symbol at the end of the sentence, but the symbol may have been accidentally deleted while posting. I asked him if he thought that only an investor with a stable income can invest in Bitcoin.
If you read the next part of my post, then I might have said that only a stable income can invest in Bitcoin. Bitcoin investment requires discretionary income.
Because a person's stable income = money needed to meet basic needs, he will not get additional money for investment, so he will not invest. And if he invests in Bitcoin from the money he has allocated to meet his basic needs, his investment will not be sustainable.
Actually, I asked him in that line to explain the need for discretionary income for Bitcoin investment that - how can a person invest in Bitcoin if he has a stable income if he does not have discretionary income.

Having a steady income and not having discretionary income means your income is not enough to meet your daily expenses, therefore you have to get additional source of income if you really want to have a discretionary income to startup your bitcoin investment.

Discretionary income is the amount of left over you get after all your basic expenses has being taken care of, which you can afford to lose, therefore your discretionary income can be spent any other things that you want which is like shopping, getting an ice-cream, going to recreational centers to have fund, getting new clothes and footwears for yourself, going clubbing e.t.c.
Therefore if all these things your have spent your leftovers on are being converted to buying and starting up your bitcoin investment will be more achievable and beneficial to you in future than spending on present wants that might not be necessary or beneficial in future .

Discretionary income serves as your foundation or bedrock which your bitcoin investment can start from.

[laspol65]

Of course, it is important to know when one has an emergency before saving Bitcoin. This should be at least 6-7 months of his necessary expenses in the emergency fund. Yes, you are right, he can save some amount of Bitcoin every month until he accumulates his emergency fund. Which he will gradually accumulate his emergency fund and start saving Bitcoin with it.

There is no guarantee that an emergency will not come, when he invests some amount of money in Bitcoin, if at that time he needs money in an emergency, he can spend the money in his emergency fund, which will not put any pressure on his Bitcoin investment.

You will only allocate emergency funds for Bitcoin investment, despite having an emergency fund, you will have to increase your source of income. If you are in a working situation, you can work hard to earn more money so that you can add more money to your investment every week, but there are some other ways that you can follow to help you increase your money and if you have bad habits, you can abandon them. Because bad habits only waste money, that's why I say abandon bad habits because you can save some money from there and connect it to Bitcoin investment.
It will only depend on you how to increase your Bitcoin investment, these strategies must be known and saved for a long time, so it is most important to have a plan. Remember that nothing reaches its destination without a plan.