Buy the DIP, and HODL!

[Joy- maker]

Investment should be given priority first, when you have no investment, then why are you creating an emergency fund ? and for what to protect? First you have to start the main thing, start investing first and then make all the necessary arrangements to protect the investment. Those who delay starting investment by considering other aspects, and focus on creating an emergency fund before starting investment, this is basically a delay in investment, and it does not benefit you but rather it sets you back further. First of all, you have to start investing, otherwise the market may go beyond our capabilities, due to which our mentality may change and we may even move away from the investment.

Frankly speaking you are not sounding realistic here, saying that one don't need to have emergency fund if he or she is not investing in bitcoin or in something else is a very wrong thing to say, why because as a human being that you are, you need to have emergency fund to enable you handle unforseen circumstances when they occur. so even if you are not investing in bitcoin or in something else set up an emergency fund and build it to a solid level, so that you will be able to handle unexpected problems without panic or dept when they happen.

And those who are waiting to build their emergency fund and back up fund first before they can get started with bitcoin are delaying their Bitcoin investment journey, because they don't have to set up emergency fund and back first before they can get started with bitcoin. They can actually get started with bitcoin without emergency fund and back up fund, and then build those two fund's alongside their Bitcoin investment.

[Ryu_Ar1]

Very true, and that’s why I started out lately to not be using all my discretionary income to accumulate and invest in bitcoin, even though I still make sure I sorted out my primary basic needs. As a matter of fact I tend to put a higher percentage of my discretionary income into my emergency funds and then use a lesser percentage for my bitcoin accumulation because I believe that bitcoin investment is a gradual process since I’m not in for a short quick profit, it doesn’t matter how little I buy but what matters most is my consistency in those my little buy and holding for the long term goal knowing fully well that my emergency funds is there to always shield my investments so I won’t sell when is not of my own choosing even if I’m in some sort of a profit.

First, basic needs and discretionary needs are different because discretionary needs can be determined after our basic needs are well met.
Secondly, making investments with a total of discretionary funds is obviously a little complicated because this will relate to several other funds that must be prepared including reserve funds and emergency funds that must still exist. When you invest with discretionary funds maybe for the first month it can be done but afterwards you will be confused with what happens especially when you need an emergency fund or reserve fund as a form of our resilience in conditions in everyday life.

This aggressive action will only make us weak even though the initial goal is to maximize investment but the decision to use all discretionary funds can also be a situation that brings us into trouble later.
Even though aggressiveness is sometimes considered a good condition for some situations, we must also be able to try to stabilize in terms of needs, so I personally prefer to stay in a more relaxed investment where I can still have a reserve fund as well as an emergency fund but my investment continues to grow every month.

[Agbam]

Very true, and that’s why I started out lately to not be using all my discretionary income to accumulate and invest in bitcoin, even though I still make sure I sorted out my primary basic needs. As a matter of fact I tend to put a higher percentage of my discretionary income into my emergency funds and then use a lesser percentage for my bitcoin accumulation because I believe that bitcoin investment is a gradual process since I’m not in for a short quick profit, it doesn’t matter how little I buy but what matters most is my consistency in those my little buy and holding for the long term goal knowing fully well that my emergency funds is there to always shield my investments so I won’t sell when is not of my own choosing even if I’m in some sort of a profit.

Yeah while it’s good to invest in emergency and back up funds it’s also important to invest a larger percentage of your discretionary into your bitcoin investment in order to accumulate more in the process. Emergency funds can have a limit or an amount bracket to which you can stop stacking but bitcoin is for the long term and requires more accumulation.

It’s easier to reach your backup funds goal than your bitcoin investment goal, so I’ll like to think that giving more percentage of discretionary to bitcoin is better but I also know that our capacities and goals are different so  you can choose to do what’s best for you but make sure to do the right thing.

[JayJuanGee]

Surely there can be circumstances in which we end up having emergencies that might end up going beyond the size of our various back up funds and our emergency funds that end up causing us to have to dip into our bitcoin stash, so we cannot necessarily predict or prevent all negative contingencies that might befall us that end up diverting or destroying our bitcoin accumulation progress... and yeah, there are age and health situations that might come up that we might not have had anticipated.

You are right about emergencies. We cannot prevent them from happening or predict the exact date it might occur but at least we know what's is at stake when we don't have strong backups fund.  When we don't have emergency fund, our bitcoin investment would be at stake as we might be tempted or end up tampering with it. Some emergencies might exceeds what our various emergency fund can handle. Regarding that,we should seek financial assistance from friends and families, maybe it would help instead of tampering with our bitcoin.  Our bitcoin should be the last option except when every other options failed .

Yep.  If guys have other funds in various forms, then he has options, and yeah, he might have some social options too.. that he might build over the years, so he knows that he might be able to get funds from other people, up to a certain point.. so then he might have to weigh from which one to spend first.. and the fewer options that he has, then he might end up having to resort to his bitcoin.. which he is attempting to avoid.,. and surely even when the various back up funds are getting close to being exhausted, he might be able to finds some less preferable and inconvenient ways to increase his income and/or cut some of his expenses. .so sometimes even having certain talents or a certain set of connections might help to generate some temporary income or an ability to cut some expenses based on people who are known or social relations that are in place.

Very true, and that’s why I started out lately to not be using all my discretionary income to accumulate and invest in bitcoin, even though I still make sure I sorted out my primary basic needs. As a matter of fact I tend to put a higher percentage of my discretionary income into my emergency funds and then use a lesser percentage for my bitcoin accumulation because I believe that bitcoin investment is a gradual process since I’m not in for a short quick profit, it doesn’t matter how little I buy but what matters most is my consistency in those my little buy and holding for the long term goal knowing fully well that my emergency funds is there to always shield my investments so I won’t sell when is not of my own choosing even if I’m in some sort of a profit.

Investing higher percentage of your discretionary income into Bitcoin makes your investment journey stressful because you wouldn't have that freedom financially to stack up a tangible emergency and reserve funds very quick.

Additionally, you wouldn't have more of that freedom of having discretionary income for consumption which I sees as unavoidable since at some point in our investment journey, we will want to gamble, buy some cigarettes, tip a friend or a waiter, so not investing higher percentage of your discretionary income is very necessary for freedom, at least 60% is fair if you ask me.

Surely keeping some money for optional consumption can serve a lot of purposes, including psychological well-being, so for example, there might be some opportunity to go on a weekend trip, and the trip might cost $200, and maybe there are funds that are being held for flexible reasons.. and choices may well have to be made, since the $200 might be well spent on such consumption, and there could be lifetime regrets in having had missed the opportunity when it was available...

and like you suggest Futurexxx, the nature of discretionary spending might have a lot of subjective element involved in terms of how high of a priority to give such extra optional spending, in which some guys might consider the spending to be completely wasteful and other guys might decide that they want to have the option to spend money on the thing that they want and to control and/or balance their choices in ways that they personally prioritize and no one else might agree with certain parts of their choices... and even if guys have some of these kinds of spending pieces that seem completely irrational, they also might know that they also have put in place certain limits for themselves in regards to how much of their income they are going to allow themselves to spend on such seemingly whimsical spending matters.

By the way, if we know that we have desires to be whimsical with our money, we might still allow ourselves to partake in such whimsicalities, while at the same time trying to put some kind of a strict limitation on the amount that we dedicate for such, so maybe we tell ourselves that no more than 10% of our discretionary money can be used for our whimsical spending.. so we still have those freedoms to be whimsical, but we also have put systems in place (that are an amount that we specifically chose for ourselves) to control how much we partake in such whimsicalities an potentially limit the amount of damage that such whimsical behaviors will end up doing to our investment systems and practices that we have decided to put in place and to prioritize for what we believe to be for our own good and for our own future self.

[edited out]

But the moment we realized this kind of thing, it’s better to start considering to allocate funds for emergencies as soon as possible. Even if it’s just a small amount from our income, it will be a great help when the day comes we will be needing it. And it’s also to prevent having to sell our other investments just because we are prepared for such emergencies.

Well.  If we have a variety of investments, we likely need to figure out priorities, and surely some investments are more volatile and some are more liquid than others.  So sometimes we might need to reallocate some of our other investments so that we are not forced to sell some (or all) of our bitcoin merely because it happens to be the most liquid asset that we happen to have available... so surely if we prioritize our bitcoin investment, we may well have to take various preventative measures in terms of other assets (investments) that we hold, and surely we might realize that certain of our investments are not very liquid, yet we value those assets less than our bitcoin investment, so we may well have to proactively take measures to liquidate some of our illiquid assets (and either put them in bitcoin or put them in some other liquid kind of a holdings) so that we do not end up having to touch our bitcoin when we would have had preferred to take it from the less liquid asset first...

So for example, let's say that we hold an index fund, and that index fund is mostly available Monday through Friday during normal business days, and we also know that it would take around 2 weeks before we could sell and convert such asset to dollars or whatever is our local currency.  We might know that our bitcoin can be available within 1 calendar day or perhaps even faster than that... so we might realize that we need to act in advance.  We also might own some property or even share ownership in property or in a business, and we know that it would take several months to liquidate that value... so we might need to take that into account too in regards what we are holding and what proportion of value we are holding in various assets.  A few years ago, I had decided to begin to withdraw from an index fund because I wanted it to generate cash (or an cash income) for me on a monthly basis, so then having that extra cash coming in from that index fund, I have been given an additional cushion of money that causes me to have less worry about selling any of my bitcoin and even potentially to use some or that money to buy more bitcoin from time to time.. even though I consider myself to not be accumulating bitcoin as I had been doing more than 10-ish years ago...so sometimes we can take actions in regards to some of the other investments assets that we have in order to reinforce our prioritization of holding and maintaining and perhaps even building our bitcoin holdings.

Well, I understand what you mean, and is that how you do it yourself by investing in bitcoin? So you prepare your emergency fund alongside your investments.

I had previously made an investment, but it didn't go well because I didn't prepare an emergency fund. Although I thought I could take out a loan to deal with urgent situations, I didn't do it because I didn't want to get involved in borrowing or lending money, even to people I know. So, I sold the Bitcoin investment I had made.

This is actually an interesting situation to be in, I wonder what if you never invested in bitcoin but still spent your discretionary income on other not so relevant things, how would you have handled the urgent situations that came up for you to deal with because the idea is always that if you don't have an emergency fund ready you might end up having to sell your bitcoin but if you didn't have bitcoin available to you then get yourself out of that bind? This concept just came to my mind and it has really got me wondering.

Even though I don't have any Bitcoin investments and I do encounter problems, such as urgent situations, that can be handled with an emergency fund. In my opinion, whether you have Bitcoin investments or not, you still need an emergency fund. That's what you should pay attention to in life. Moreover, if you want to invest, you must really consider other factors, such as an emergency fund.

Maybe we are distracting people with the idea of emergency fund.

Fuck emergency funds for whatever random purpose.. it does not matter..

We are specifically talking about protecting our bitcoin investment, and so the extent that you keep other emergency funds and blah blah blah.. The main context that we are talking about is making sure that we are able to both build up our bitcoin investment and to minimize the chances that we might have to tap into our bitcoin at a time that is not of our choosing... so if we end up screwing things up and then we have to tap into our bitcoin, then in some sense we have failed.

Sure, if an Emergency is big enough then we may well have no choice but to tap into our bitcoin to save our life or perhaps the life of some other person(s) in which we feel some financial obligation to save.

And with Bitcoin's current price decline, I personally don't think it's wrong to start investing again, but you should really pay attention to other things, such as an emergency fund.

You have already screwed up in your own prior failure/refusal to sufficiently protect your bitcoin, and so now you want to tell us that we need to establish an emergency fund first, merely because you fucked up.  You are surely not a good role model on either the bitcoin investment or the cashflow management topic..

There are lessons I've learned from my previous experiences, and I will evaluate and improve them.

Hopefully, you can learn for yourself and not end up screwing up in the opposite direction because you end up over compensating for your prior screw up.

No mate, you must not prepare an emergency funds before you can get started with bitcoin accumulation and investment, once you’re able to figure out a discretionary income to use and invest in bitcoin it is advisable you get started immediately with your bitcoin accumulation and along the line you can be preparing some funds for your emergency funds as you’re already ongoing accumulating bitcoin. Emergency funds requires you to have at least 3-4 months of your expenses which is something you can not just be able to build in a day or months, and besides that keeping an emergency funds aside for bitcoin investment whereas you don’t have any bitcoin stash or portfolio to protect doesn’t make real sense, so the most important thing to do first is to be able to get started with your bitcoin accumulation immediately your discretionary income is ready and as time goes on while you’re investment is ongoing, you can be building your emergency funds along side while accumulating and investing in bitcoin. You must not wait to build your emergency funds first before getting started with your bitcoin accumulation and holding for the long term goal.

Well, I understand what you mean, and is that how you do it yourself by investing in bitcoin? So you prepare your emergency fund alongside your investments.

I had previously made an investment, but it didn't go well because I didn't prepare an emergency fund. Although I thought I could take out a loan to deal with urgent situations, I didn't do it because I didn't want to get involved in borrowing or lending money, even to people I know. So, I sold the Bitcoin investment I had made.

I know I likely already responded to your situation, which is that you likely need to figure out some reasonable amount to invest in bitcoin so that you are not depleting any back up funds that you have, and if you are getting into situations where you need to take out loans, then you are not sufficiently living within your means and you are likely not generating enough discretionary income to be investing into bitcoin.  You should be trying to work up to higher level of investments in bitcoin, so you might well need to start out with smaller amounts so that you never have to sell your bitcoin, and of course, you can build up both your emergency funds and your bitcoin at the same time, yet it sounds as if you already have problems managing your money so you need to figure out ways to not over do things so that you don't put yourself into similar situations in the future so that you dont' have to end up selling any of your bitcoin for 10 years or longer. ..and surely some people might need to take close to 20 years before they might have had been able to build up a large enough bitcoin stash.

It seems I really need to pay attention to the funds I allocate to Bitcoin. Previously, I was a bit overzealous, allocating more to Bitcoin than to my emergency fund.

There is nothing wrong with allocating more to bitcoin, yet there still needs to be some kind of funds to cover various cashflow situations that might come up that relate to loss of income and/or increases in expenses.. and so each of us have to figure out how to make such balances, without putting ourselves into a place that we have to tap into our bitcoin at a time that is not completely of our own choosing.

Many times normal people might come to bitcoin, and they might already have a practice in place that they have 2-6 weeks of various back up funds available for irregularities that might occur in regards to their income and/or their expenses.  Many folks have a certain level of pride in which they don't want to put themselves into a position in which they have to ask others for a bailout.. so they have systems in place to bail themselves out from any shortages in cash that they might end up experiencing.

So if a person comes to bitcoin and they already have some back up funds in place, then they are off to a good start, yet if people come to bitcoin and they do not hae those systems and/or practices in place, then they likely have to figure out how to get into better cashflow management practices... and surely with something like bitcoin, p;art of the eason that we have to build greater back up funds is because bitcoin tends to be very volatile and very liquid, so we have to have systems in place where we are not tempted to touch our bitcoin for 4-10 years or longer.. perhaps even greater than 10 years would be our goal since less than 10years would ONLY apply to folks who have health and/or age reasons for not being able to commit to longer periods such as greater than 10 years.

In the future, I'll try reversing this, allocating less to Bitcoin than to my needs and emergency fund. This has been a valuable lesson for me, and thank you for the advice. Hopefully, I can improve in the future and avoid making the same mistake again.

Hopefully you can get some kind of a reasonable balance without overreacting or overcompensating and/or failing/refusing to learn the right kind of a lesson. It can take a long time to build a bitcoin investment and also to strengthen existing cashflow management systems/practices - including that there are some special peculiarities in regards to protecting our bitcoin  - even though surely in a worse case situation, we may well not have any choice but to tap into our bitcoin and/or potentially to completely use our bitcoin to respond to such emergency situation, yet at the same time, there tends to be quite a bit of high importance to try to not put ourselves into any emergency situation due to our own sloppiness and/or lack of preparedness.. and yeah, it can take a while and even sometimes we might have to do work or engage in some kinds of employment that we would prefer not to do.. but we are at the same time trying to make sure that we are both investing into bitcoin from our discretionary income and also that we are making sure that we are building and/or maintaining strong cashflow management systems/practices.  

Most times no one is going to be available to hold our hand and/or to make sure that we are allocating correctly into each of the categories, so hopefully we can figure out ways to learn and to continue to build at the same time so that we are not faced with situations where we have to start over.

[edited out

Indirectly this means referring to our readiness whether we are able to survive in that period or not and this condition that must be the focus is how our mental readiness and how we still manage emotions because sometimes when we see a few percent profit our greedy soul to take advantage quickly always happens and it happens for most especially those fomo who always say that what he does is the truth by taking quick profits.

I don't really understand the meaning of excess accumulation here? Is it about how we continue to accumulate directly and turn aggressive or is it just a figure of speech where we don't really care about the price conditions and don't sell (just hodl) and continue to accumulate?

I use the term overaccumulation to describe a situation in which a person has accumulated enough or more than enough bitcoin, so then options open up in terms of being able to start to sustainably withdraw based on price and/or based on time.

For example, in the beginning of 2016, a person had a $30k per year income and over the past 10 years he had been accumulating bitcoin at $100 per week, and his income had gone up to $50k now.  He would like to quit his job and start to live off of his bitcoin, yet he does not want to quit his job until he is sure that he can withdraw at $80k per year from his bitcoin.

He looks at his bitcoin and he sees that over the past 10-ish years, he had invested about $52k, and he had accumulated 15.26 BTC.  He also looks at the current amount of BTC that he would need to start to withdraw at $80k per year, and he sees that it is 14.0757, so he sees that he has enough BTC to start his $80k per year withdrawal rate and to meet the minimum threshold level to be able to start to withdraw at his target of $80k per year, and he sees that he also has nearly 1.1 BTC extra.. so he feels even more comfortable that he more than meets the minimal level of BTC for his desire start to the process of withdrawing at $80k per year and he has a bit of an overaccumulation cushion of nearly 1.1 BTC so that he can continue to monitor his withdrawal rate once he gets started and to continue to make sure that he does not deplete the dollar value of his current BTC holdings faster than his holdings would be growing in value in spite of his plan to start to withdraw $6,666 per month and at the same time, he considers that it is going to be quite likely that he is going to be able to increase his dollar withdrawal rate by 7% each subsequent year, so in year 2, he will withdraw $85.6k, year 3 he will withdraw $91.6k, year 4 he will withdraw $98k - etc etc etc.. and he will continue to monitor to make sure that his bitcoin is growing in its dollar value faster than the rate that he is withdrawing from his holdings.

Each of us is responsible to figure out how many bitcoin we need, and if we have determined that we have reached overaccumulation status, we should put systems in place that don't cause us to get knocked out of overaccumulation status, once we are in such status.. and for the hypothetical guy I describe, he is starting with nearly a 1.1 BTC cushion, which surely likely gives him a decent amount of cushion that he will not easily get knocked out of overaccumulation status unless he screws something up in relation to the rate of what he considers to be a sustainable withdrawal level.

[Alonso_]

Yes sure!!, that’s how I do it now, although when I started investing I wasn’t preparing for any emergency funds, I was only just buying as much as I can afford, before I got on the forum and then I learnt how good it is to prepare an emergency funds for my bitcoin investment and not only that I also learnt I can prepare my emergency funds along side while I’m accumulating bitcoin.

You need to build up your emergency fund anytime you can, even you did not reserve your money for it in the past, you can start doing it since today. It's never too late to reserve money for your emergency fund as if you did not need it in the past, it means you were lucky enough but accidents might come in the future.

Fortunately, you already realized importance of an emergency fund and your Bitcoin investment portfolio has been built a long time, so from now you won't have to seriously invest in Bitcoin with income. Let's split part of your income for emergency fund as it is very vital for your life and helpful for your investment result as well.

With good emergency fund, you have very small or almost no risk of selling your bitcoin for money used for urgent needs. This reduces if not eliminates risk of selling with loss price and that means you have good plan and financial preparation through emergency fund for avoiding controllable loss.

If someone is brand new to bitcoin, he may well assess his cash situation, his income and his expenses, and then figure out how much he has to invest into bitcoin.

If a guy had been investing into bitcoin for a while and then realizes that he has little to no back up funds, then he needs to assess how urgent it might be to fix his current situation so that he is not putting his bitcoin at risk.... If he has no back up funds and his bitcoin is the only thing that he has besides his regular income, then he is likely engaging in too much risk, and if any thing happens where he does not have enough money to cover the situation, then that will be his own fault for maintaining such a set up and likely using money that he needs for his expenses to invest into bitcoin.

If guys don't make sure that they are adequately protected with back up funds, then they ONLY have themselves to blame if they end up tapping into their bitcoin at a time that is not of their choosing... and yeah, some guys tap into their bitcoin way too soon and they feel o.k. to tap into them if they happen to be in profits, yet it may well not be a good idea, even though they are in profits, since anyone serious about building up a bitcoin investment for 4-10 years or longer in a way that really empowers them, then they would be and should be figuring out ways to avoid tapping into their bitcoin before it has reached decently large sizes in which perhaps they are close to being able to start to sustainably withdraw from it.

By the way, if a person is investing into bitcoin for more than 10 years, it may well be the case that his bitcoin is worth several times more than the amount that he had put into it, yet at the same time, we cannot really know in advance what the assessment of the bitcoin value is going to be when it comes to 10 years or more down the road of building up the stack size and perhaps maintaining it for several years before entering into a phase in which they are authorizing themselves to start to sell some bitcoin, whether price based sustainable withdrawal or time based sustainable withdrawal.. ..

You’re very correct, For we plebs that are just buying bitcoin that haven’t gotten to one circle, I think it’s very important and vital to figure out my expenses and how I can possibly take care of my expenses, and also try to adjust to some certain things and adapt how things possibly work with making our bitcoin investments works perfectly, fixing our current situation is very important and adjusting to everything that we are doing to make Bitcoin investments successful.

When I started investing in Bitcoin some years ago, I had to try to be investing on a regular basis, I will not dispute the fact that I have had some down and lows with my investments, I have to figure out my flaws with adjusting to my lifestyle and buying of Bitcoin, I have to try and stop some unnecessary lifestyle and tried to figure out a means of having more discretionary income in my disposal, and also had to figure out my backup funds to be more comfortable with my Bitcoin investments.

I will say for newbies who wants to start buying bitcoin this new year should just keep buying and staying consistent and also try also figure backup funds to be more efficient with buying bitcoin.

[JayJuanGee]

Very true, and that’s why I started out lately to not be using all my discretionary income to accumulate and invest in bitcoin, even though I still make sure I sorted out my primary basic needs. As a matter of fact I tend to put a higher percentage of my discretionary income into my emergency funds and then use a lesser percentage for my bitcoin accumulation because I believe that bitcoin investment is a gradual process since I’m not in for a short quick profit, it doesn’t matter how little I buy but what matters most is my consistency in those my little buy and holding for the long term goal knowing fully well that my emergency funds is there to always shield my investments so I won’t sell when is not of my own choosing even if I’m in some sort of a profit.

Yeah while it’s good to invest in emergency and back up funds it’s also important to invest a larger percentage of your discretionary into your bitcoin investment in order to accumulate more in the process. Emergency funds can have a limit or an amount bracket to which you can stop stacking but bitcoin is for the long term and requires more accumulation.

It’s easier to reach your backup funds goal than your bitcoin investment goal, so I’ll like to think that giving more percentage of discretionary to bitcoin is better but I also know that our capacities and goals are different so  you can choose to do what’s best for you but make sure to do the right thing.

You are correct Agbam in regards to guys being able to figure out how much they want to dedicate towards building their bitcoin versus how much they want to dedicate towards building any back up funds that they have, and if they end up screwing up, no one is going to bail them out... so they are responsible for figuring out how to not screw things up in regards to a proper balance - since if they ever run into a situation in which their income has gone down and/or their expenses have gone up, then sure if the situation does not last very long, then they can recover in a quick and easy way and they do not need to have very many back up funds available.. yet if their cashflow shortage lasts for a month, two months, three months or more, they may well find that they are depleting any back up funds that they have, and so at some point they may well be down to ONLY having their bitcoin that remains as something in which they can tap into. 

These are not easy situations, and it is difficult for anyone outside of each of us to figure out what kind of balance that we need in terms of our income situation, our health, our age, our expenses and various ways that we might end up finding ourselves in a situation in which we are depleting most if not all of our back up funds... and if we had already been investing in bitcoin for more than a couple of cycles, then maybe we are already in a position that we could start to withdraw from our bitcoin, versus someone who is still early in his building of his bitcoin stash (perhaps guys in their first couple of years of building their bitcoin stash may well be most vulnerable to disruptions in their cashflow situation and challenges in regards to how much back up funds they need to keep in regards to their own circumstances.

[The Founding Titan]

Very true, and that’s why I started out lately to not be using all my discretionary income to accumulate and invest in bitcoin, even though I still make sure I sorted out my primary basic needs. As a matter of fact I tend to put a higher percentage of my discretionary income into my emergency funds and then use a lesser percentage for my bitcoin accumulation because I believe that bitcoin investment is a gradual process since I’m not in for a short quick profit, it doesn’t matter how little I buy but what matters most is my consistency in those my little buy and holding for the long term goal knowing fully well that my emergency funds is there to always shield my investments so I won’t sell when is not of my own choosing even if I’m in some sort of a profit.

First, basic needs and discretionary needs are different because discretionary needs can be determined after our basic needs are well met.
Secondly, making investments with a total of discretionary funds is obviously a little complicated because this will relate to several other funds that must be prepared including reserve funds and emergency funds that must still exist. When you invest with discretionary funds maybe for the first month it can be done but afterwards you will be confused with what happens especially when you need an emergency fund or reserve fund as a form of our resilience in conditions in everyday life.

This aggressive action will only make us weak even though the initial goal is to maximize investment but the decision to use all discretionary funds can also be a situation that brings us into trouble later.
Even though aggressiveness is sometimes considered a good condition for some situations, we must also be able to try to stabilize in terms of needs, so I personally prefer to stay in a more relaxed investment where I can still have a reserve fund as well as an emergency fund but my investment continues to grow every month.

I wouldn't even call them needs if they are discretionary but instead they are wants and should be classified as that, and you ar right, alot of people think that they need to invest in bitcoin with all of their discretionary income, they fail to remember that they are other things that we do with our discretionary income like saving for emergency and our reserve funds too, these all come from discretionary too although sometimes an investor can decide to be aggressive and invest a majority of their discretionary income in bitcoin but this usually happens when they've settled the other things they need to settle with their discretionary income so while we invest with our discretionary income its not every day you see someone investing with their entire discretionary income.

[Makus]

Very true, and that’s why I started out lately to not be using all my discretionary income to accumulate and invest in bitcoin, even though I still make sure I sorted out my primary basic needs. As a matter of fact I tend to put a higher percentage of my discretionary income into my emergency funds and then use a lesser percentage for my bitcoin accumulation because I believe that bitcoin investment is a gradual process since I’m not in for a short quick profit, it doesn’t matter how little I buy but what matters most is my consistency in those my little buy and holding for the long term goal knowing fully well that my emergency funds is there to always shield my investments so I won’t sell when is not of my own choosing even if I’m in some sort of a profit.

First, basic needs and discretionary needs are different because discretionary needs can be determined after our basic needs are well met.
Secondly, making investments with a total of discretionary funds is obviously a little complicated because this will relate to several other funds that must be prepared including reserve funds and emergency funds that must still exist. When you invest with discretionary funds maybe for the first month it can be done but afterwards you will be confused with what happens especially when you need an emergency fund or reserve fund as a form of our resilience in conditions in everyday life.

This aggressive action will only make us weak even though the initial goal is to maximize investment but the decision to use all discretionary funds can also be a situation that brings us into trouble later.
Even though aggressiveness is sometimes considered a good condition for some situations, we must also be able to try to stabilize in terms of needs, so I personally prefer to stay in a more relaxed investment where I can still have a reserve fund as well as an emergency fund but my investment continues to grow every month.

I wouldn't even call them needs if they are discretionary but instead they are wants and should be classified as that, and you ar right, alot of people think that they need to invest in bitcoin with all of their discretionary income, they fail to remember that they are other things that we do with our discretionary income like saving for emergency and our reserve funds too, these all come from discretionary too although sometimes an investor can decide to be aggressive and invest a majority of their discretionary income in bitcoin but this usually happens when they've settled the other things they need to settle with their discretionary income so while we invest with our discretionary income its not every day you see someone investing with their entire discretionary income.

A lot of investors have this wrong perception that while DCAing you always need to make it small, and doing otherwise is actually going against the plan. Well that to an extent is wrong because imagine a scenario whereby you got promoted or received a bonus pay for your work, after settling your basic needs as usual you can increase your bitcoin investment and probably your emergency fund while your reserve fund savings is kept thesame especially in times like this where bitcoin is currently in the dip. This is realistic because a lot of person did receive their holiday bonus pay and if you're probably wondering what to do with the extra cash then here the solution for you.
Discretionary funds basically are set aside to take care of our wants after the needs have been settled. Some examples of discretionary funds purpose: investing, gambling, gifting friends or family, hanging out....

[Father111]

Among the three strategies mentioned an investor who just started accumulating bitcoin or who has not arrived at his accumulation stage should avoid the BUY THE DIP STRATEGY this is not for new investors but for those that has arrived at their accumulation stage because they have already stack portfolio with enough bitcoin. A new bitcoin investor should accumulate using the DCA strategy so that he won't wait for the dip before he can accumulate bitcoin because a new investor is supposed to be accumulating on a regular basis every weeks or every months and hodl for long period of time.

All strategies have their place and time for each investor, as strategies like buying on a price drop are typically preferred by investment firms with substantial capital and who already own a significant amount of Bitcoin. This means that what you said is clearly true: investors who already own more Bitcoin assets will use slightly different strategies than novice investors. Novice investors should indeed buy more frequently at any price within their available funds, as their goal is to own Bitcoin, not to seek low prices to buy Bitcoin. Therefore, it is clear that each investor can employ different strategies to facilitate their investment efforts over the long term.

Let's assume as an investor in Bitcoin, you adopted the dca strategy to accumulate your Bitcoin stash or portfolios over a period of time and you've seen that u are up there with your portfolio why then should you stopped the dca strategy that made your portfolio and prefer to buy the dip which may not come fast as one may think and why waisting time just to wait for the dip rather to keep accumulating using the dca and using an emergency funds to acquire Bitcoin during the dip which i believe that for you to have a portfolios in Bitcoin, you should have an emergency funds and discretional funds for Bitcoin accumulation.

So if you have built a portfolio using dca strategy as newbies, hence you should still use the dca and in other strategies to keep accumulating rather waiting for the dip may take as long as what?

[Bigjoe33]

 keep accumulating using the dca and using an emergency funds to acquire Bitcoin during the dip which i believe that for you to have a portfolios in Bitcoin, you should have an emergency funds and discretional funds for Bitcoin accumulation.

So if you have built a portfolio using dca strategy as newbies, hence you should still use the dca and in other strategies to keep accumulating rather waiting for the dip may take as long as what?

You are getting everything mixed up. You don't accumulate Bitcoin using your emergency funds, No! What you use to accumulate Bitcoin is your discretionary income(the money left over after settling basic needs). While you are building up your Bitcoin portfolio, you also build up your emergency funds alongside from that same discretionary income.
Take note that the emergency funds are not meant to be used in accumulating Bitcoin but kept readily available for emergency situations that may arise unexpectedly just as the name implies(emergency). So if you use the emergency funds to buy Bitcoin, what happens when emergency situations hut you, such as a flat tyre or change of tyre entirely, hospital bills, accident etc?

In your second line, I would like to say that maintaining a continuous and consistent DCA buys weekly or monthly depending on your cash flow is very important as it grows you portfolio over the years since it's something happening regularly. However, using any other strategies is okay but it must be from extra money saved up for it, like you must be prepared for such buys, else you should stick to DCA  buys and remain consistent

[Mr_Brilliant$]

Among the three strategies mentioned an investor who just started accumulating bitcoin or who has not arrived at his accumulation stage should avoid the BUY THE DIP STRATEGY this is not for new investors but for those that has arrived at their accumulation stage because they have already stack portfolio with enough bitcoin. A new bitcoin investor should accumulate using the DCA strategy so that he won't wait for the dip before he can accumulate bitcoin because a new investor is supposed to be accumulating on a regular basis every weeks or every months and hodl for long period of time.

All strategies have their place and time for each investor, as strategies like buying on a price drop are typically preferred by investment firms with substantial capital and who already own a significant amount of Bitcoin. This means that what you said is clearly true: investors who already own more Bitcoin assets will use slightly different strategies than novice investors. Novice investors should indeed buy more frequently at any price within their available funds, as their goal is to own Bitcoin, not to seek low prices to buy Bitcoin. Therefore, it is clear that each investor can employ different strategies to facilitate their investment efforts over the long term.

Let's assume as an investor in Bitcoin, you adopted the dca strategy to accumulate your Bitcoin stash or portfolios over a period of time and you've seen that u are up there with your portfolio why then should you stopped the dca strategy that made your portfolio and prefer to buy the dip which may not come fast as one may think and why waisting time just to wait for the dip rather to keep accumulating using the dca and using an emergency funds to acquire Bitcoin during the dip which i believe that for you to have a portfolios in Bitcoin, you should have an emergency funds and discretional funds for Bitcoin accumulation.

So if you have built a portfolio using dca strategy as newbies, hence you should still use the dca and in other strategies to keep accumulating rather waiting for the dip may take as long as what?

If DCA is what helped you build your position in the first place, stopping it because you are now in profit does not even make sense.. Why now waiting for dip ? waiting for a perfect dip just means doing nothing for a long time, and trust me you might miss out, because many people end up missing more upside than the dip they were hoping for..
DCA just removes those emotions and timing stress, because trying to catch dip just bring guesswork. Having separate emergency funds and discretionary money like you said also matters, so you will not be forced to sell or panic.. For me, steady accumulation is the best, and it is better than sitting and waiting hoping  the market will gives a discount that may not come anytime soon..

[PhilosopherKing]

 keep accumulating using the dca and using an emergency funds to acquire Bitcoin during the dip which i believe that for you to have a portfolios in Bitcoin, you should have an emergency funds and discretional funds for Bitcoin accumulation.

So if you have built a portfolio using dca strategy as newbies, hence you should still use the dca and in other strategies to keep accumulating rather waiting for the dip may take as long as what?

You are getting everything mixed up. You don't accumulate Bitcoin using your emergency funds, No! What you use to accumulate Bitcoin is your discretionary income(the money left over after settling basic needs). While you are building up your Bitcoin portfolio, you also build up your emergency funds alongside from that same discretionary income.
Take note that the emergency funds are not meant to be used in accumulating Bitcoin but kept readily available for emergency situations that may arise unexpectedly just as the name implies(emergency). So if you use the emergency funds to buy Bitcoin, what happens when emergency situations hut you, such as a flat tyre or change of tyre entirely, hospital bills, accident etc?

You are correct that emergency funds are only to be used for solve emergency that may come up without us planning for it, so it should never ever be used to invest in bitcoin, period!!. Anyone using their emergency funds to invest will definitely get their investment fucked up when emergency needs arises. So as not to reck your investment, it is better to invest with your discretionary income. Discretionary income are the money that can be afforded to be loosed, so if you invest with it, you will not be pressured to sell away your bitcoin whenever the market dips or when you need urgent money for emergency.

[Umulala-alala]

Among the three strategies mentioned an investor who just started accumulating bitcoin or who has not arrived at his accumulation stage should avoid the BUY THE DIP STRATEGY this is not for new investors but for those that has arrived at their accumulation stage because they have already stack portfolio with enough bitcoin. A new bitcoin investor should accumulate using the DCA strategy so that he won't wait for the dip before he can accumulate bitcoin because a new investor is supposed to be accumulating on a regular basis every weeks or every months and hodl for long period of time.

All strategies have their place and time for each investor, as strategies like buying on a price drop are typically preferred by investment firms with substantial capital and who already own a significant amount of Bitcoin. This means that what you said is clearly true: investors who already own more Bitcoin assets will use slightly different strategies than novice investors. Novice investors should indeed buy more frequently at any price within their available funds, as their goal is to own Bitcoin, not to seek low prices to buy Bitcoin. Therefore, it is clear that each investor can employ different strategies to facilitate their investment efforts over the long term.

Let's assume as an investor in Bitcoin, you adopted the dca strategy to accumulate your Bitcoin stash or portfolios over a period of time and you've seen that u are up there with your portfolio why then should you stopped the dca strategy that made your portfolio and prefer to buy the dip which may not come fast as one may think and why waisting time just to wait for the dip rather to keep accumulating using the dca and using an emergency funds to acquire Bitcoin during the dip which i believe that for you to have a portfolios in Bitcoin, you should have an emergency funds and discretional funds for Bitcoin accumulation.

So if you have built a portfolio using dca strategy as newbies, hence you should still use the dca and in other strategies to keep accumulating rather waiting for the dip may take as long as what?

Your question is good it shows you want to know how you can be able to grow a good bitcoin portfolio first of all your emergency fund is to tackle your unforseen circumstances things that came unexpectedly and not for buying BTC.
As an investor who is growing a bitcoin portfolio you don't have any business waiting for the dip before you buy BTC, you where doing good using the dca strategy and your bitcoin portfolio was gradually increasing while then stoping when you have not reached your over accumulation stage you have to consistently be buying bitcoin with the dca strategy using your discretionary income which is money you can afford to loss. The dip should be an opportunity to buy aggressively or more if you have a reserve fund instead of waiting you can be dcaing.

[Loyang]

As a matter of fact I tend to put a higher percentage of my discretionary income into my emergency funds and then use a lesser percentage for my bitcoin accumulation because I believe that bitcoin investment is a gradual process since I’m not in for a short quick profit, it doesn’t matter how little I buy but what matters most is my consistency in those my little buy and holding for the long term goal knowing fully well that my emergency funds is there to always shield my investments so I won’t sell when is not of my own choosing even if I’m in some sort of a profit.

Before creating an emergency fund, we need to focus more on investment. A person should invest 60% of his discretionary income and 30% should be kept for emergency fund and 10% should be kept for extra expenses. If the money kept for extra expenses is not spent, then he can keep that 10% in emergency fund or invest it. Let me give you an example through a story, why a person needs to start investing first, a person bought a rope for the cow before buying it but he spent a lot of money on buying the rope now while buying the cow some money is less due to which he is not able to buy a good cow and now he has to wait for it. If that person had not bought the rope for the cow before but bought the cow first and if he had bought the rope after that then it would have been better for him and he would not have to face this situation now. Or if he had used the rope given with the cow for some days then he could have bought the rope later.

otherwise the market may go beyond our capabilities, due to which our mentality may change and we may even move away from the investment.

Bitcoin has become an asset. A good asset has a high value. No matter how high the value of Bitcoin is, Bitcoin can be purchased with a very small amount of money. A person can create a very nice portfolio by continuously purchasing with his discretionary $10 by adopting the DCA method. . A person moves away from investment due to the lack of proper humanity. If a person is able to maintain his humanity properly, then he will be willing to buy Bitcoin at any price.

[Barikui1]

You are correct that emergency funds are only to be used for solve emergency that may come up without us planning for it, so it should never ever be used to invest in bitcoin, period!!. Anyone using their emergency funds to invest will definitely get their investment fucked up when emergency needs arises. .

That's a terrible mistake that no investor should ever contemplate because to me, once you started investing or tempted to buy the dip with your emergency funds, you are no longer investing in Bitcoin, but you are now gambling with it, because if for an reasons emergency struck, the probability of selling off or selling part of your Bitcoin stash are very high, so it's a dangerous practice we all should avoid by all means because at that point, you are no longer investing, but you are now gambling with your investment.

[MainIbem]

You are correct that emergency funds are only to be used for solve emergency that may come up without us planning for it, so it should never ever be used to invest in bitcoin, period!!. Anyone using their emergency funds to invest will definitely get their investment fucked up when emergency needs arises. .

That's a terrible mistake that no investor should ever contemplate because to me, once you started investing or tempted to buy the dip with your emergency funds, you are no longer investing in Bitcoin, but you are now gambling with it, because if for an reasons emergency struck, the probability of selling off or selling part of your Bitcoin stash are very high, so it's a dangerous practice we all should avoid by all means because at that point, you are no longer investing, but you are now gambling with your investment.

Yeah it's not advisable, although people often argue that investing in Bitcoin could serve as an emergency fund for the future and it's not bad to risk one's emergency fund into investing in it but I disagree with that statement cause Bitcoin is volatile and an emergency situation could happen anytime since it's unpredictable, situations like lose of job, accidents and so can occur and the person who risk their emergency fund for Bitcoin investment would end up tampering with the portfolio they're trying to build with the emergency funds. It's indeed unhealthy for someone trying to grow a portfolio and hold for long-term, which is why the discretionary fund is best for investing and building a healthy portfolio instead of the emergency funds.

[Jaksonhard]

First, basic needs and discretionary needs are different because discretionary needs can be determined after our basic needs are well met.
Secondly, making investments with a total of discretionary funds is obviously a little complicated because this will relate to several other funds that must be prepared including reserve funds and emergency funds that must still exist. When you invest with discretionary funds maybe for the first month it can be done but afterwards you will be confused with what happens especially when you need an emergency fund or reserve fund as a form of our resilience in conditions in everyday life.

This explanation is clear and makes perfect sense based on actual experiences with finances; the most crucial thing to remember about basic needs is that they take priority over all discretionary needs they are an absolute must! The only time that discretionary needs should play a part in investing is once basic needs have been accomplished. For example, although investing only with discretionary funds may seem simple and straightforward in the initial stages, if you do not have a plan in place to handle unforeseen expenses, investing with discretionary funds will quickly become a complicated process. Without adequate emergency and reserve accounts, any time you incur an unforeseen expense, even a minor expense, the stress of having to confront unexpected expenses will lead you to make poor financial decisions. Financial stability occurs only when you strike a balance between providing for your daily needs and having an adequate emergency fund for unexpected expenses prior to investing your surplus capital that you can afford to go without.

This aggressive action will only make us weak even though the initial goal is to maximize investment but the decision to use all discretionary funds can also be a situation that brings us into trouble later.
Even though aggressiveness is sometimes considered a good condition for some situations, we must also be able to try to stabilize in terms of needs, so I personally prefer to stay in a more relaxed investment where I can still have a reserve fund as well as an emergency fund but my investment continues to grow every month.

Your observation shows a proper understanding and mature outlook on investment strategies. There are many reasons why one would want to have a fast-growing strategy (aggressiveness), such as buying into the momentum and not missing out on an opportunity, but investing the majority of one's discretionary income puts your future financial position at risk. The markets are highly variable, and all of our life’s expenses occur without us having the luxury of timing (the market). While an aggressive approach works great for some scenarios, the key to long-term sustainability is balance. Having money available for emergencies or reserves alleviates a lot of stress and gives you the ability to react to the unknowns in your life.

[9ja Amaka]

Let's assume as an investor in Bitcoin, you adopted the dca strategy to accumulate your Bitcoin stash or portfolios over a period of time and you've seen that u are up there with your portfolio why then should you stopped the dca strategy that made your portfolio and prefer to buy the dip which may not come fast as one may think and why waisting time just to wait for the dip rather to keep accumulating using the dca and using an emergency funds to acquire Bitcoin during the dip which i believe that for you to have a portfolios in Bitcoin, you should have an emergency funds and discretional funds for Bitcoin accumulation.

So if you have built a portfolio using dca strategy as newbies, hence you should still use the dca and in other strategies to keep accumulating rather waiting for the dip may take as long as what?

Emergency funds are for emergencies not for anything else. What is used for investment is your discretionary income; you could be doing this wrong if you are using money for a different purpose, not your discretionary income to invest.

I know it can be new to many folks who started life, who would want to start an emergency. It surely will get to a point in their life where they have to be very diplomatic in making decisions, financial planning, etc.

[Alonso_]

You are correct that emergency funds are only to be used for solve emergency that may come up without us planning for it, so it should never ever be used to invest in bitcoin, period!!. Anyone using their emergency funds to invest will definitely get their investment fucked up when emergency needs arises. .

That's a terrible mistake that no investor should ever contemplate because to me, once you started investing or tempted to buy the dip with your emergency funds, you are no longer investing in Bitcoin, but you are now gambling with it, because if for an reasons emergency struck, the probability of selling off or selling part of your Bitcoin stash are very high, so it's a dangerous practice we all should avoid by all means because at that point, you are no longer investing, but you are now gambling with your investment.

I think some folks have been a victim of making that horrible mistake when they started investing in Bitcoin newly, because most of them are not aware of the huge mistakes they are making, because I don’t see any reason why someone will be investing in bitcoin outside his discretionary income, that is pure gambling and that Bitcoin portfolios would be worthless and doomed for failure.

Which is why basic understanding on how to map out ways of investing and holding, and trying to figure out a very sustainable strategies that could help our goals of holding Bitcoin for a very long term period, so when an emergency struck after using an emergency fund in buying a dip that came because of an opportunity that was unprecedented, so what do you do in that situation of an emergency needs, that would be as a failure of a proper planning.

[Zanab247]

You are correct that emergency funds are only to be used for solve emergency that may come up without us planning for it, so it should never ever be used to invest in bitcoin, period!!. Anyone using their emergency funds to invest will definitely get their investment fucked up when emergency needs arises. .

That's a terrible mistake that no investor should ever contemplate because to me, once you started investing or tempted to buy the dip with your emergency funds, you are no longer investing in Bitcoin, but you are now gambling with it, because if for an reasons emergency struck, the probability of selling off or selling part of your Bitcoin stash are very high, so it's a dangerous practice we all should avoid by all means because at that point, you are no longer investing, but you are now gambling with your investment.

Are you trying to say is not good to make use of emergency money to invest in BTC, if you know that you can afford to lose the emergency money you can invest it but if lost occur it will be hard for the investor to cope with the lost. Real potential investors will never plan of using emergency money to invest in BTC than to find other means where to get money to buy in the dip and hodl for long years, because that is the easiest way your mind will be at peace even though the bear run take a long years in the market. Emergency money is part of the risk some people are preaching about risk in cryptocurrency investment, you can use the emergency money to earn profit and you can also use it to experience lost but you can make a good decision.

Some people emergency money is bigger than some people capital,  because there are wealthy people and there are poor people, which there  will be different capital to invest in BTC. Moreover not all investors that use to sell off their BTC during bull run, because they know the price of BTC will not remain in that particular price than to hit higher when time comes for the price to take action to double up in the future.