Buy the DIP, and HODL!

[sotelorene]

Actually bitcoin investment is different from gambling because gambling is something that has to do with a prediction and on the process anything can happen but bitcoin investment is something that can last for long time why investing on it so there is a total difference between bitcoin investment and gambling some people may think that gambling is the same thing as a bitcoin investment but that is a total line because of lack of understanding but if you understand bitcoin very well you know that bitcoin is being used as a currency why gambling cannot be used as a currency so Bitcoin is a store value why gambling is not an a store value so that is a different between both of them

What you said is correct, many people compare Bitcoin with gambling, which are actually two different things. There is a difference between the two. No investment is risk-free. All investments have more or less risk. Bitcoin investment is short-term or long-term, but there is a possibility of risk. However, in the case of gambling, the risk potential seems to be higher. If the Bitcoin currency market price is low, then the risk potential increases. However, Bitcoin can increase in price over time due to volatility. However, Bitcoin seems to be reliable in terms of investment and it is proven.

You seems to be contradicting things here, you first said gambling and investing in Bitcoin are two different thing and later you said there is no difference between the two which makes me to wonder which side you in. But I will like to tell you for free that Bitcoin investment and gambling Bitcoin is not same thing they are totally different because investment is for long term while trading is for short term and there is a high chance of making loss in trading or gambling and greed and impatient folks always like to take the risk because they want to become rich in a blink of an eye and most times they found themselves in depressed state.

[POPOLUV]

Actually bitcoin investment is different from gambling because gambling is something that has to do with a prediction and on the process anything can happen but bitcoin investment is something that can last for long time why investing on it so there is a total difference between bitcoin investment and gambling some people may think that gambling is the same thing as a bitcoin investment but that is a total line because of lack of understanding but if you understand bitcoin very well you know that bitcoin is being used as a currency why gambling cannot be used as a currency so Bitcoin is a store value why gambling is not an a store value so that is a different between both of them

Clearly different and what you said is correct, investing is the activity of allocating as much of your money as possible with the aim of making a profit in the long run while avoiding inflation, your profit depends on knowledge, market research and analytical skills (but I have no doubts about Bitcoin), while gambling is just an activity that runs on probability, your profit is 90% dependent on luck, the only similarity is that these two activities both have a risk side.

The reason why many still try to compare gambling to investment is because both deal with uncertainty. But investment is to some extent , because some investment have guarantee that they will grow with time like land for an instant, land tend to increase in value as time goes and as the area is located becomes more established, they are actually different when come to gambling and investing, though there’s no guarantee in bitcoin but Bitcoin as proven to be reliable when come to investment due to its past performance and the potential in it .

to be honest with you, those folks that are still comparing gambling to investment up till now, instead of considering DCA strategy which has make investing in Bitcoin so easy for all investors without having the fear of losing all their discretionary income that they use to invest, should be people that called themselves investors and which their basic work is to monitor the price of Bitcoin in the parallel market to know when to gamble and it is the same set of gamblers that will parade themselves on social media in scamming on how they can make quick money through trading in Bitcoin, at such we should very careful to the best way to follow when it comes to investing in Bitcoin, than regretting of wasting income all in the name of making quick money within a short period of time.

[MusaPk]

You seems to be contradicting things here, you first said gambling and investing in Bitcoin are two different thing and later you said there is no difference between the two which makes me to wonder which side you in. But I will like to tell you for free that Bitcoin investment and gambling Bitcoin is not same thing they are totally different because investment is for long term while trading is for short term and there is a high chance of making loss in trading or gambling and greed and impatient folks always like to take the risk because they want to become rich in a blink of an eye and most times they found themselves in depressed state.

Comparing Bitcoin investment with gambling is like comparing apple with oranges. In fact there is some comparison between apple and oranges but not Bitcoin and gambling. Bitcoin is now 17 year old and we have its price price going from $1 to $126000. Moreover we now have very clear idea that Bitcoin price goes up with time and its most profitable investment for long term. There are risks in all type of investment and Bitcoin investment risk can be reduced significantly if we follow DCA strategy.   

[Jaksonhard]

You seems to be contradicting things here, you first said gambling and investing in Bitcoin are two different thing and later you said there is no difference between the two which makes me to wonder which side you in. But I will like to tell you for free that Bitcoin investment and gambling Bitcoin is not same thing they are totally different because investment is for long term while trading is for short term and there is a high chance of making loss in trading or gambling and greed and impatient folks always like to take the risk because they want to become rich in a blink of an eye and most times they found themselves in depressed state.

Comparing Bitcoin investment with gambling is like comparing apple with oranges. In fact there is some comparison between apple and oranges but not Bitcoin and gambling. Bitcoin is now 17 year old and we have its price price going from $1 to $126000. Moreover we now have very clear idea that Bitcoin price goes up with time and its most profitable investment for long term. There are risks in all type of investment and Bitcoin investment risk can be reduced significantly if we follow DCA strategy.   

You have made a great point. Gambling relies solely on luck Bitcoin has historical data that can be analysed, it has clear contract terms that are visible to everyone, and we've seen a 17-year history of all-time highs and lows. The growth of Bitcoin from a few hundred dollars to more than $100k signifies a long-term increase in value and is not a result of chance or luck. Bitcoin does, however, have volatility just like any other investment and thus you need to employ a strategy. Examples of such strategies are dollar-cost averaging which helps mitigate both emotional and financial risks associated with the investment. As such, it would be fair to classify bitcoins as an investment (long-term) rather than a gamble (short-term).

[ChocolateBitcoinK]

You seems to be contradicting things here, you first said gambling and investing in Bitcoin are two different thing and later you said there is no difference between the two which makes me to wonder which side you in. But I will like to tell you for free that Bitcoin investment and gambling Bitcoin is not same thing they are totally different because investment is for long term while trading is for short term and there is a high chance of making loss in trading or gambling and greed and impatient folks always like to take the risk because they want to become rich in a blink of an eye and most times they found themselves in depressed state.

Comparing Bitcoin investment with gambling is like comparing apple with oranges. In fact there is some comparison between apple and oranges but not Bitcoin and gambling. Bitcoin is now 17 year old and we have its price price going from $1 to $126000. Moreover we now have very clear idea that Bitcoin price goes up with time and its most profitable investment for long term. There are risks in all type of investment and Bitcoin investment risk can be reduced significantly if we follow DCA strategy.   

Wait another ten years, and just watch how much higher Bitcoin goes, if you think about it 10 years ago, many people would not have believed in Bitcoin. As much as Bitcoin has improved since the past 10 years ago to now, it can improve much more in the next 10 years from now. This is what many big Bitcoin experts believe and according to their view, it can go to a level in the next 10 years that we can never imagine. It can improve eye-catchingly, and those who enter the recruitment field for the next 10 to 12 years from now, and can survive, their success can be at a level that they would not have gotten from anything else. Bitcoin is the best and those who understand this can survive with it, and their success can be skyrocketing.

[Davidloki]

Actually bitcoin investment is different from gambling because gambling is something that has to do with a prediction and on the process anything can happen but bitcoin investment is something that can last for long time why investing on it so there is a total difference between bitcoin investment and gambling some people may think that gambling is the same thing as a bitcoin investment but that is a total line because of lack of understanding but if you understand bitcoin very well you know that bitcoin is being used as a currency why gambling cannot be used as a currency so Bitcoin is a store value why gambling is not an a store value so that is a different between both of them

You are very correct that bitcoin investment is different from gambling. I think most people get this misconception of putting investment and gambling in the same bracket, because they both had to do with risk, but what we should understand is that the risk in investment is lower than than of gambling. Gambling had to do with prediction and your chances of losing a gamble is about 98%, because I think gambling has to do with luck and not that you are good at predictions, unlike investment that has to do with planning and strategy. Using bitcoin investment as a yardstick, we all know that bitcoin have been around for years and its has proven that it can be a good investment in a long term. when you invest in bitcoin in a long term your risk becomes less, because you really don't care if bitcoin drops or rises. You really don't care if you are making loss at that point, because its a long term investment, and you can even purchase more when the price drops, then in the long run you can still make profit. Please I don't want you to get me wrong, every investment has to do with risk, so bitcoin also has its own risk, but unlike gambling that the outcome is decided almost immediately, because you are only hoping your predictions are right and once you did not get it right, you lost your money.
Despite bitcoin investment being less riskier than gambling, its should also be advised that we should invest with what we can afford to lose and that goes to gambling too, because its a wrong idea to invest all your income in a single investment, because there are possibilities that investment might go wrong. The most important concept of this discussion is to make it clear that investment and gambling are not the same.

[PhilosopherKing]

Even if the risks are different in gambling versus investing in bitcoin, the expression "don't invest more than you can afford to lose" applies to both, which means that you shoudl not invest (or gamble) any more than you can afford to lose.
Of course, you still might calculate them differently, even though the same overarching principle of not investing (or gambling) any more than you can afford to lose applies to both of them.

That's true. When we experience losses impacted by risks that may be beyond our capabilities this will significantly impact our efforts in both areas. We may experience losses in both investments (or gambling) beyond our expectations.

This is why Mister Jayjuagee said something like people should not invest any more than they can afford to lose, which is true. Following suite ensure that the loss do not happen beyond your expectations.

People need to get one thing clear at bitcoin and it is the importance of risk management. Bitcoin is uncertain but with risk management, you only get to put what you can afford to loose. And when you do that, only then can you position yourselves in positions that volatility cannot force you to make bad decisions

[Jamestown70]

Actually bitcoin investment is different from gambling because gambling is something that has to do with a prediction and on the process anything can happen but bitcoin investment is something that can last for long time why investing on it so there is a total difference between bitcoin investment and gambling some people may think that gambling is the same thing as a bitcoin investment but that is a total line because of lack of understanding but if you understand bitcoin very well you know that bitcoin is being used as a currency why gambling cannot be used as a currency so Bitcoin is a store value why gambling is not an a store value so that is a different between both of them

You are very correct that bitcoin investment is different from gambling. I think most people get this misconception of putting investment and gambling in the same bracket, because they both had to do with risk, but what we should understand is that the risk in investment is lower than than of gambling. Gambling had to do with prediction and your chances of losing a gamble is about 98%, because I think gambling has to do with luck and not that you are good at predictions, unlike investment that has to do with planning and strategy. Using bitcoin investment as a yardstick, we all know that bitcoin have been around for years and its has proven that it can be a good investment in a long term. when you invest in bitcoin in a long term your risk becomes less, because you really don't care if bitcoin drops or rises. You really don't care if you are making loss at that point, because its a long term investment, and you can even purchase more when the price drops, then in the long run you can still make profit. Please I don't want you to get me wrong, every investment has to do with risk, so bitcoin also has its own risk, but unlike gambling that the outcome is decided almost immediately, because you are only hoping your predictions are right and once you did not get it right, you lost your money.
Despite bitcoin investment being less riskier than gambling, its should also be advised that we should invest with what we can afford to lose and that goes to gambling too, because its a wrong idea to invest all your income in a single investment, because there are possibilities that investment might go wrong. The most important concept of this discussion is to make it clear that investment and gambling are not the same.

To be honest, after weighing the risk of gambling and Bitcoin investment, 80 percent of risk in Bitcoin lies on the Holders mindset to manage his Bitcoin portfolio. If you want to invest in Bitcoin and you’re equip with the right mindset and knowledge, I barely see any reason why you will want to sell or gamble your Bitcoin for peanuts.

If you think gambling as another option, it’s just a sorry case, because you never know when to stop until your investment is on a brink of collapsing. Seriously, there’s this mindset that drives gamblers to keep gambling, whenever they place a bet on whatever gambling site they’re into and turns out they almost won but lost, they’ll be like, let me try this one more time, maybe I didn’t take the right step, I’m closer to bagging those wins and on and on that’s how the money keeps going.

[Mehmet69]

This is why Mister Jayjuagee said something like people should not invest any more than they can afford to lose, which is true. Following suite ensure that the loss do not happen beyond your expectations.

People need to get one thing clear at bitcoin and it is the importance of risk management. Bitcoin is uncertain but with risk management, you only get to put what you can afford to loose. And when you do that, only then can you position yourselves in positions that volatility cannot force you to make bad decisions

Yes, you are right. To start investing in a new situation, we should invest the amount of money that we can afford to lose. Because most new investors invest experimentally at first. In this, they invest an uncontrolled amount of money without understanding it. And after some time, when they face a financial crisis, they are forced to sell their investments. Short-term investment in Bitcoin has never made anyone profitable. As a result of short-term investment plans, many new investors have not been able to hold their investments properly.

If we want to invest in Bitcoin, we should invest using discretionary income. That is, the investment can be easily increased by investing with the money that is left after meeting our daily needs. This remaining money is called discretionary income. That is, the amount of money that we can afford to lose.

[Alonso_]

Frequently, I suggest that any member who might be tempted to trade his bitcoin or to get involved in shitcoins, then I recommend against either of those, yet if the member cannot resist such temptation, then at least if they might decide to limit their exposure to either trading and/or shitcoins to no more than 10% the size of their bicoin investment, then at least they might be able to satisfy their curiosity without putting too much of their bitcoin investment funds at risk.. and they can still stay mostly focused on bitcoin investing.

Part of the problem with traders/shitcoiners (aka gamblers) is that they cannot control their own level of degeneracy and their inclinations to be sucked into not knowing when to stop, so maybe the best that they can do for themselves to try to get over their addiction is to at least limit their exposure, which would still allow them to address their curiosity yet without getting sucked into gambling with large portions of their time, energies and value... so yeah, not only limit the amount of money they put in, but also limit their time and energy that they put into such trading/shitcoining.

I am not sure how else to attempt to help those kinds of folks to attempt to help themselves besides suggesting that they attempt to self-impose some kind of a reasonably strict limit.

Gambling has a way of messing with out minds in the sense that, having a near miss could increase your motivation to return back to that previous strategy and modify it a little bit that it will work for you. Now the problem is, you can continue investing in this loop for a very lengthy amount of time especially when the near miss gets tighter and tighter. This is the experience people who trade shitcoin and bitcoin get, and that is how they end up generalizing their experience to all that concerns bitcoin as well. I've been around that circle before and trust me it's not something anyone would like to do with their money most especially using some part of their bitcoin to test the idea, from 10% they could end up using up to 50% after being so close to profitablity. Besides 10% could be a lot of money depending on how long and aggressive that person might have accumulated his/her bitcoin. However, I'll recommend they test their curiosity with a part of their reserved fund since they feel like gambling, besides it's a part of their discretionary income ment for leisure activities and other wants.

I think that in part you are missing the point Makus.  Sure, you get the idea that gambling is bad and difficult to control, but your idea of using reserve funds sounds like a fantasy.

If guys want to gamble, then how the fuck you going to help them to try to control themselves or to give some guidelines if you are merely suggesting to use some fantasy fund called the reserve funds?  From where are they going to get the money to fund the reserve funds, and why would they use that for gambling rather than putting it into bitcoin or putting it into their back up funds?  And it takes a long time to both build up back up funds and to create various parameters for the back up funds, including some of them are emergency funds and some of therm are reserve funds (and some are float too).   You are just saying not to gamble until they reach a certain level of wealth.

That is nonsense. 

Right from the start, they are already thinking about shitcoins and they are thinking about gambling and they have money in front of them in which they are thinking about bitcoin and their back up funds too.

It is ridiculous if you think that there is some pool of money that just exists in magic that they can draw from without having tradeoffs.  Perhaps on a practical level you don't even know what reserve funds mean.  They don't just pop out of no where and come available.. otherwise everything is easy if funds are unlimited.

If guys are investing in bitcoin and they are building their back up funds, then there is not just some magic and never ending fund that exists that allows them to figure out how to gamble too.. by putting some of that extra amount in shitcoins and/or trading.

You might need to think about the situation a bit more in order to figure out how to give some actual suggestion that relates to their bitcoin investing and any back up funds that they might be building.

Go ahead.  Give a better example.

What you wrote so far hardly makes any sense and it is not tethered to reality.,

Why don't you describe some kind of a hypothetical person who you imagine to bea ble to invest in bitcoin and also gamble with their reserve funds?  What do the numbers (or percentages) look like?  

Do some of the work rather than just throwing out some vague ideas that make little to no sense in terms of putting them into practice in a way that has some potential level of logic..

I think you are over reacting reserve funds isn't meant to imply some magical pool of money that appears out of no where, of course every dollar can only go one place that's exactly the point the practical aspect is not wait until you are rich or dont gamble until some fantasy level of wealth. you are right that building buffers takes time that's why the pictures isn't all absolutes but about order proportion.

Your reserve funds are funds that you can use for any other expenses including buying bitcoin when the dip comes if that is what you want,it can also be used for saving for items which you want to get at any time, it serves as a backup funds in other to prevent you investment from being tempered which can make you become a low coiner or no coiner, if not there to protect your investment .

You could be more specific specific with what you’re doing, you can’t use that for all expenses, which is why you can be more specific, you might not be able to determine how much reserves funds you might have available considering when you have a reserved funds, your reserves funds might not even be enough to take care of all your expenses, which is why you should separate between Emergency funds and reserved funds, I think your reserved funds would not be enough to take care of all your need, especially when you’ve been into retirement, which is why I also think that you can have a different approach of having other cashflow even after retirement you would still have that intention to keep buy and accumulating bitcoin.

[ZeroVinsonN]

Even if the risks are different in gambling versus investing in bitcoin, the expression "don't invest more than you can afford to lose" applies to both, which means that you shoudl not invest (or gamble) any more than you can afford to lose.
Of course, you still might calculate them differently, even though the same overarching principle of not investing (or gambling) any more than you can afford to lose applies to both of them.

That's true. When we experience losses impacted by risks that may be beyond our capabilities this will significantly impact our efforts in both areas. We may experience losses in both investments (or gambling) beyond our expectations.
This is to prevent further losses, so the general principle in calculating should be to avoid losses that exceed our responsibility in terms of the amount of losses from investing (or gambling) as both have the same value.

Even though gambling and Bitcoin investment are two totally different things but due to uncertainties that they both share being that you can be unlucky and lose your money in gambling and Bitcoin is volatile you don't know when you will get your profit. But we have to note that Bitcoin risk and gambling risks are not on the same level, gambling is far riskier because there is high chances that you will lose all your money without any hope of recovery while in Bitcoin recovering loses is very possible. If you're an investor and also a gambler the percentage of the amount that you can afford to loose for both shouldn't be the same. Bitcoin amount should be higher than gambling because it is a store of value while gambling depends on luck to win.

Any form of investment will always come with a level of risk since there really is no 100% guarantee of success although success rate differ with each investment and bitcoin is no different, success isn't guaranteed but it's success rate is relatively high compared to some others and for that reason bitcoin investment should never be compared to gambling for any reason, if anyone wants to go about comparing gambling to trading then they are welcome to do so but it should end at that, the fact that both involves risk taking shouldn't be the reason why anyone should be comparing them.
Bitcoin investment has an amazing track record over the years, it's not impeccable but it has shown a good level of consistency which is probably the only thing it has in common with gambling since gambling has also shown a consistency to lead people into abject poverty over the years whereas bitcoin investment has actually pulled people out of poverty over the years, people definitely shouldn't be comparing the two.

[ejikeme24]

Comparing Bitcoin investment with gambling is like comparing apple with oranges. In fact there is some comparison between apple and oranges but not Bitcoin and gambling. Bitcoin is now 17 year old and we have its price price going from $1 to $126000. Moreover we now have very clear idea that Bitcoin price goes up with time and its most profitable investment for long term. There are risks in all type of investment and Bitcoin investment risk can be reduced significantly if we follow DCA strategy.   

i think traders is the reason why folks keep comparing Bitcoin investment with gambling, Because there are people who are trading with their Bitcoin and also Lossing them just as it is when you're gambling with Fiat. And this made most people especially those that doesn't understand Bitcoin investment to start thinking that Bitcoin investment is like gambling, I think they are mistaken traders to investors since they don't know  their differences,  they just feel that they are all the same.

 so obviously the traders are the ones bringing this misconception Because if they had invest and HODL for long term there will be no misconception and also, there's no way they will keep incurring losses even though we are not sure about the outcome if we HODL for Long term, but I believe there will be changes compared to when we are trading it for short term profit.

[JayJuanGee]

Actually bitcoin investment is different from gambling because gambling is something that has to do with a prediction and on the process anything can happen but bitcoin investment is something that can last for long time why investing on it so there is a total difference between bitcoin investment and gambling some people may think that gambling is the same thing as a bitcoin investment but that is a total line because of lack of understanding but if you understand bitcoin very well you know that bitcoin is being used as a currency why gambling cannot be used as a currency so Bitcoin is a store value why gambling is not an a store value so that is a different between both of them

Even if the risks are different in gambling versus investing in bitcoin, the expression "don't invest more than you can afford to lose" applies to both, which means that you shoudl not invest (or gamble) any more than you can afford to lose.

Of course, you still might calculate them differently, even though the same overarching principle of not investing (or gambling) any more than you can afford to lose applies to both of them.

They both have their risk factors which is why investing what you can't can afford to lose or with the discretionary is the best approach.

You got the expression wrong.. even though you seem to understand it.  You are investing with money that you do not need versus money that you might need in the future.

However investing in Bitcoin is less riskier than gambling, it has a good strategy that helps manage risk and doesn't require one to depend on luck for rewards like gambling,

You are correct.  There are games of luck and games of skill, and they are not absolute categories, so they are on a spectrum with bitcoin surely being way further towards the skill side of the equation rather than the chance side of the equation.

Even with shitcoining and trying to trade bitcoin, there could be some skills involved, yet in the end, there is likely way more luck than skills, even though guys may end up making errors in how they are analyzing the kinds and/or levels of skills versus luck that ends up getting employed when screwing around with shitcoins and/or trading bitcoin.

Surely in the beginning of our bitcoin investment, we likely don't know very much about it and/or we might not even be very good at cashflow management, yet we can improve our cashflow management skills so that we can feel more and more comfortable in putting more and more of value into bitcoin - and most likely with a DCA approach in which we can adjust the level of our aggressiveness based on our own psychology and/or finances.

We never completely get rid of the risk, yet we can lessen the risk through strengthening our cashflow management systems/practices and by choosing a level of aggressiveness that is appropriate to our circumstances.

In bitcoin investing, if we do not employ any leverage, we can still end losing 100% of what we had invested into it, so we should be weighing that possible outcome with another aspect in which bitcoin has asymmetric upside possibilities, and likely is amongst the best, if not the best place for us to be putting time, energy and value.. yet as a newbie we might not know, and so hopefully newbies study bitcoin and study their own cashflow management practices while they are investing and also adjust their position size to the level of their knowledge.  If they do not know very much then the should be holding back a bit in the amount they invest until they become more comfortable with their investment amount and also the cashflow management systems practices that the build and maintain.

If guys screw up in regards to their level of aggressiveness or their cashflow management practices, they will end up suffering the consequences of their screw ups, yet at the same time, if they are a person of common sense who is ongoingly attempting to learn and to apply learnings at a prudent and reasonable level, then it would be most likely that their mistakes would end up being small and things to learn from rather than major mistakes... ... and they have to use their common sense to figure out their levels and what things they need to learn.. so if they suck at math, they may well need to practice their math, yet they do not need to delay getting started investing in bitcoin merely because they have various things that they feel that they need to learn and/or get better at.

For example, if some bitcoin newbie were to lack a lot of confidence, then they adjust their weekly investment amount downward, and so maybe even if they know that based on their current income/expenses situation, they would be able to comfortably invest $100 per week without any problems.  At the same time, if such bitcoin newbie were to identify several areas of discomfort (perhaps overviewing their assessment of their personal factors), then they may well purposefully choose to invest $30 per week instead of $100 per week until they sort out some of their discomforts and then perhaps slowly raise the amount that they put into bitcoin as their comfort level gets better. and better and better regarding various factors.. so maybe, for example, 4 weeks later they are investing $50 per week, and then 10 weeks later they are investing $75 per week, and then maybe 20 weeks later they are investing $135 per week... etc. etc. etc.  

Each person, whether bitcoin newbie or not, has to ongoingly pay attention to their comfort levels and the speed at which they might choose to increase (or even decrease) their weekly bitcoin investment amounts.

anyways investors still need to ensure that investment is being done with what they can spare from their discretionary and not the other way round cause they think Bitcoin investment is less riskier, an investor would be doing himself more harm than good if they invest with funds asides their discretionary likewise a gambler who gambles with funds asides what they can afford to lose.

Sure.   One thing with discretionary funds is that they can be used to invest, consume and/or save.  The definition of the term discretionary is that you can do what you want with them.. yet the doing what you want fits into those three categories, and so we will frequently suggest that guys could (in theory) use 100% of his discretionary funds to invest, but then he would be potentially neglecting the two other categories of saving and/or consuming, and also we come to realize that if he had not previously saved up enough back up funds, then he may well end up miscalculating and investing into bitcoin beyond the level of his discretionary funds.  

So, that is a bit of an easy to identify mistake to see that a guys is investing beyond his discretionary funds.   Furthermore any new (or existing investor) also needs to figure out some kind of reasonable balance for each of these three categories so he is not getting himself into trouble financially and/or psychologically or perhaps with various relationships and/or obligations that he has that might be part of his discretionary spending balances.

Just as a default, perhaps, a brand new investor might consider dividing 1/3 for each of the three categories, just to get used to organizing himself in terms of the categories, and then of course, after he gets used to the categories, he can make adjustments to increase or decrease in one category or another.

[Tamaperdana]

Your reserve funds are funds that you can use for any other expenses including buying bitcoin when the dip comes if that is what you want,it can also be used for saving for items which you want to get at any time, it serves as a backup funds in other to prevent you investment from being tempered which can make you become a low coiner or no coiner, if not there to protect your investment .

Yes, if the situation allows, reserve funds can be used to invest in Bitcoin, but I personally rarely do that. I personally feel that investing with my discretionary funds is sufficient. Furthermore, I personally don't think reserve funds should be used for other purposes, as they act as a buffer or second line of defense before emergency funds. Reserve funds are also allocated for planned needs, such as vacations, vehicle taxes, and home renovations. Therefore, I personally don't dare use reserve funds to invest in Bitcoin. Reserve funds are money that will definitely be used someday, so using them now to invest in Bitcoin for a very long period of time, like 10 years, I don't think is appropriate. Reserve funds are different from emergency funds, where you don't know when you'll use them. With reserve funds, you already know when you'll use them. That's why it's so important to keep them.

[Curious T]

The reason why many still try to compare gambling to investment is because both deal with uncertainty. But investment is to some extent , because some investment have guarantee that they will grow with time like land for an instant, land tend to increase in value as time goes and as the area is located becomes more established, they are actually different when come to gambling and investing, though there’s no guarantee in bitcoin but Bitcoin as proven to be reliable when come to investment due to its past performance and the potential in it .

The guarantee or lack of guarantee is not what separates gambling from investment. If it were so, then there is no difference because investments do not guarantee returns, not even the land you speak of. We have seen scenarios where the value of a land depreciates instead of appreciating due to insecurity in the area or other things like a lack of development, and so on. There are no guarantees in both gambling and investments.

The main difference is that one is a game of chance where you have no power over the outcome and the house always has an edge, while the other is a calculated business where you have ownership of the asset.

[Publictalk792]

Sure.   One thing with discretionary funds is that they can be used to invest, consume and/or save.  The definition of the term discretionary is that you can do what you want with them.. yet the doing what you want fits into those three categories, and so we will frequently suggest that guys could (in theory) use 100% of his discretionary funds to invest, but then he would be potentially neglecting the two other categories of saving and/or consuming, and also we come to realize that if he had not previously saved up enough back up funds, then he may well end up miscalculating and investing into bitcoin beyond the level of his discretionary funds.  

So, that is a bit of an easy to identify mistake to see that a guys is investing beyond his discretionary funds.   Furthermore any new (or existing investor) also needs to figure out some kind of reasonable balance for each of these three categories so he is not getting himself into trouble financially and/or psychologically or perhaps with various relationships and/or obligations that he has that might be part of his discretionary spending balances.

Just as a default, perhaps, a brand new investor might consider dividing 1/3 for each of the three categories, just to get used to organizing himself in terms of the categories, and then of course, after he gets used to the categories, he can make adjustments to increase or decrease in one category or another.

Your idea of dividing more money into three equal parts, one-third to put in, one-third to spend and one-third to save, when prices of Bitcoin are high is highly smart way to managing money without becoming stressed. 1/3 rule makes sure that you won't become poor in case of market drop and spending part will allow you to have fun and enjoy life, and savings part will act as safety net in case of emergency you will not have to sell your Bitcoin at wrong time. This balance is also good to your personal relationships because being able to spend some money on shared experiences does not make family fight because of being too focused with crypto. Although normal habit among people is 50/30/20 rule, your way to group could be seen as much safer and healthier way to handle risky buys and still create future by dividing into three groups.

[SilverCryptoBullet]

Your idea of dividing more money into three equal parts, one-third to put in, one-third to spend and one-third to save, when prices of Bitcoin are high is highly smart way to managing money without becoming stressed. 1/3 rule makes sure that you won't become poor in case of market drop and spending part will allow you to have fun and enjoy life, and savings part will act as safety net in case of emergency you will not have to sell your Bitcoin at wrong time. This balance is also good to your personal relationships because being able to spend some money on shared experiences does not make family fight because of being too focused with crypto. Although normal habit among people is 50/30/20 rule, your way to group could be seen as much safer and healthier way to handle risky buys and still create future by dividing into three groups.

You can split your capital into some parts, three parts are like a minimum allocation slots but you can split your capital to more parts like four, five. The bottom line is you must have vital parts for spendings, savings for emergency, and one last part for investment which can help you improving your financial status with time.

The first two parts are most important and you should never invest without money saved for first two parts because if you invest without funds for spendings and urgent need, you will have pressure and risk of selling your bitcoin when you need money. It can even force you selling your bitcoins with lost exit price, that is harmful for your general finance while investment basically is to improve your finance, not to make it worse.

[ZeroVinsonN]

The reason why many still try to compare gambling to investment is because both deal with uncertainty. But investment is to some extent , because some investment have guarantee that they will grow with time like land for an instant, land tend to increase in value as time goes and as the area is located becomes more established, they are actually different when come to gambling and investing, though there’s no guarantee in bitcoin but Bitcoin as proven to be reliable when come to investment due to its past performance and the potential in it .

The guarantee or lack of guarantee is not what separates gambling from investment. If it were so, then there is no difference because investments do not guarantee returns, not even the land you speak of. We have seen scenarios where the value of a land depreciates instead of appreciating due to insecurity in the area or other things like a lack of development, and so on. There are no guarantees in both gambling and investments.

The main difference is that one is a game of chance where you have no power over the outcome and the house always has an edge, while the other is a calculated business where you have ownership of the asset.

You just mentioned Land as an asset so I have a question for you, how likely is it that the value of your land will drop down to ZERO? and by zero I mean that it will not have any form of value attached to it again making it completely useless, is this a scenario you think can happen very easily? Now try comparing it to gambling again and see the difference, once you lose in gambling then that particular money is gone, your asset might lose value but provided that you are investing in a good asset then it's value would most likely never drop to zero.

[JayJuanGee]

Sure.   One thing with discretionary funds is that they can be used to invest, consume and/or save.  The definition of the term discretionary is that you can do what you want with them.. yet the doing what you want fits into those three categories, and so we will frequently suggest that guys could (in theory) use 100% of his discretionary funds to invest, but then he would be potentially neglecting the two other categories of saving and/or consuming, and also we come to realize that if he had not previously saved up enough back up funds, then he may well end up miscalculating and investing into bitcoin beyond the level of his discretionary funds.  

So, that is a bit of an easy to identify mistake to see that a guys is investing beyond his discretionary funds.   Furthermore any new (or existing investor) also needs to figure out some kind of reasonable balance for each of these three categories so he is not getting himself into trouble financially and/or psychologically or perhaps with various relationships and/or obligations that he has that might be part of his discretionary spending balances.

Just as a default, perhaps, a brand new investor might consider dividing 1/3 for each of the three categories, just to get used to organizing himself in terms of the categories, and then of course, after he gets used to the categories, he can make adjustments to increase or decrease in one category or another.

Your idea of dividing more money into three equal parts, one-third to put in, one-third to spend and one-third to save, when prices of Bitcoin are high is highly smart way to managing money without becoming stressed. 1/3 rule makes sure that you won't become poor in case of market drop and spending part will allow you to have fun and enjoy life, and savings part will act as safety net in case of emergency you will not have to sell your Bitcoin at wrong time. This balance is also good to your personal relationships because being able to spend some money on shared experiences does not make family fight because of being too focused with crypto. Although normal habit among people is 50/30/20 rule, your way to group could be seen as much safer and healthier way to handle risky buys and still create future by dividing into three groups.

You have mentioned that 50/30/20 rule previouosly and that 50/30/20 is retarded.   You continue to bring it up, even though it is retarded and it is confusing.

I am not talking about anything close to that since there is a need to talk about discretionary funs, which is what I was attempting to do and guys need to know the difference.

I know that sometimes I will also refer to general income from time to time, too.. yet if we are talking about investing and savings, those are both coming from discretionary funds, and some consumption will be from discretionary funds and other consumption will be from basic costs of living.  Guys need to figure out these differences for themselves so that they can organize themselves in regards to what they are doing and perhaps creating some investing guidelines and cashflow management guidelines for themselves.

Once guys figure out their discretionary funds then as a default starting point these guys might start to consider putting 1/3 of their discretionary funds in each of the three categories in terms of investing, savings and consumption  - yet of course, guys can adjust those ratios however they like because we are talking about discretionary funds, which means that guys can do whatever they like with such funds.. Once we are referring to discretionary funds, basic expenses have already been taken care of..

Perhaps one of the main problems with the 50/30/20 idea is that there is a need to figure out discretionary funds, so it makes hardly any sense to talk about 50/30/20 since it seems to be presuming something like 50% of the funds are discretionary, which is not very common to be true.. especially when we are talking about so many folks who struggle with there incomes/expenses.

This is repeated so many times that discretionary funds is what is left after subtracting basic expenses from income.  There is almost no way that people in poor countries would have 50% discretionary.. .. and even if they are getting into territories of 20% to 30% of their income discretionary, they are likely in a well paying job.

And, when I mentioned 1/3 in each of the categories, I was not talking about any kind of a rule.. but a starting framework, and guys have to tailor to their situation, and surely there are some guys who might be dealing with $500-$2000 per month in discretionary income, and other guys that might ONLY have $100 or less in discretionary income, and there can be a lot of variations and even abilities to increase discretionary income by increasing income and/or cutting expenses.

[Silikiem]

Sure.   One thing with discretionary funds is that they can be used to invest, consume and/or save.  The definition of the term discretionary is that you can do what you want with them.. yet the doing what you want fits into those three categories, and so we will frequently suggest that guys could (in theory) use 100% of his discretionary funds to invest, but then he would be potentially neglecting the two other categories of saving and/or consuming, and also we come to realize that if he had not previously saved up enough back up funds, then he may well end up miscalculating and investing into bitcoin beyond the level of his discretionary funds.  

So, that is a bit of an easy to identify mistake to see that a guys is investing beyond his discretionary funds.   Furthermore any new (or existing investor) also needs to figure out some kind of reasonable balance for each of these three categories so he is not getting himself into trouble financially and/or psychologically or perhaps with various relationships and/or obligations that he has that might be part of his discretionary spending balances.

Just as a default, perhaps, a brand new investor might consider dividing 1/3 for each of the three categories, just to get used to organizing himself in terms of the categories, and then of course, after he gets used to the categories, he can make adjustments to increase or decrease in one category or another.

Your idea of dividing more money into three equal parts, one-third to put in, one-third to spend and one-third to save, when prices of Bitcoin are high is highly smart way to managing money without becoming stressed. 1/3 rule makes sure that you won't become poor in case of market drop and spending part will allow you to have fun and enjoy life, and savings part will act as safety net in case of emergency you will not have to sell your Bitcoin at wrong time. This balance is also good to your personal relationships because being able to spend some money on shared experiences does not make family fight because of being too focused with crypto. Although normal habit among people is 50/30/20 rule, your way to group could be seen as much safer and healthier way to handle risky buys and still create future by dividing into three groups.

I think the focus here is bitcoin specifically and not just crypto because using the term crypto could mean any shitcoin as there are many crypto projects that are shitcoins with no real value, so it’s better we should be specific and  say bitcoin so that we don’t get mislead into investing in any shitcoins. Normally when starting out buying bitcoins it’s advisable we buy using our discretionary income after sorting out our basic financial needs and family obligations or expenses, in this way it’s more easier to be focused on your bitcoin investment because that’s even the more better way of finding the right balance between attending to your family or personal needs and your bitcoin investment instead of the 50/30/20 rule.