We have many investors out there who can afford to build their backup fund before they invest, and we also have those who can build their backup funds within a month, so it definitely depends on your earnings. Bitcoin investment is not something you must do with all your income, you can buy according to your earnings, and don’t invest everything in Bitcoin. Even if it’s just $10 or $20 you can afford monthly or weekly, it can grow in value over time.
Yeah, it’s true but do you know that those who can not build their backup funds are more than those who can afford to build backup funds before investing? So in this case we should stop using that words that they need to have back funds before starting invest, because it will discourage most newbie’s that have interest to invest in the Bitcoin.
Guys are fucking retarded and/or gamblers if they start to buy bitcoin and they have absolutely no back up funds.
If they do not have back up funds then they cannot assure that they have discretionary funds.
If they do not have discretionary funds they cannot invest in bitcoin, since they would be using money that they need for their expenses.
If they use money that is meant to be for their expenses, then that is gambling not investing.
There are probably already way too many guys who get into bitcoin, and they think that they are going to turn over their investment in a short time (such as less than 4 years), and that is trading (or gambling) - not investing. I personally don't recommend either trading or gambling when it comes to bitcoin.
I do understand that there are some beginners who are not psychologically ready to commit to 4-10 years or longer, and I would not discourage those guys from investing into bitcoin, even though they are not able to commit, so long as they are using discretionary funds to buy bitcoin, since what can happen is that a guy can get started buying bitcoin and continue to look into bitcoin and thereby come to the realization that to be investing, the timeline is 4-10 years or longer.. ... So, it could take a bit of studying and looking into bitcoin before guys are able to figure out the difference between trading and investing and also come to realize that bitcoin is an investment, not a trade.
For sure, this thread is about investing and not about trading, even though surely from time to time, ideas about trading and/or even ideas about shitcoins end up having to be discussed to a certain level in order to help guys to both come to better understand the difference between trading and investing and also to come to realize that bitcoin and shitcoins are not the same thing, even though there are all kinds of mainstream sources and even a lot of guys in the regular world who neither know the difference between bitcoin and shitcoins and/or they do not know how to talk about bitcoin or to come to focus on bitcoin first kinds of ideas.. rather than getting into disinformation about shitcoins.
Bitcoin investment is not a do or die thing, It’s not necessary to have a backup fund before investing in Bitcoin, the most important thing is having discretionary income. If an individual cannot get discretionary income from their earnings, it is not encouraged to invest because the person has more responsibilities than their income, and they may end up using funds for other things for their investment.
So many misinterpret about the Bitcoin investments it’s not important that a person who has interest to invest in the Bitcoin most get the backup funds before he/she can invest in the Bitcoin, in as far they can able to start up investments with any amount of money i think its not necessary that they most have the backup funds; once they start the investment they will build the backup funds later.
If a new investor has extra funds they can use that fund as an emergency fund and allocate a large part of their discretionary income to regularly invest in Bitcoin. If you don’t have an emergency fund when you start investing in Bitcoin you should set aside a small amount of discretionary income to cover emergencies.
Emergency funds and/or back up funds is something that guys build up over time, so even if they are starting out with a small level of back up funds, their ongoing investing into bitcoin and simultaneously adding funds to their back back up funds will likely cause the back up funds to grow and grow and grow.
Surely, at the same time, from time to time, guys might have errors in their calculations of their income and/or their expenses, so it may well be the case that from time to time, guys have to tap into some of the value of the back up funds to cover basic expenses, so they may not always be making progress of their building of their back up funds, yet at the same time, it would seem that if guys are serious about their bitcoin investing and also serious about putting themselves into a stronger financial (and psychological) situation, then they would ongoingly be giving a certain level of priority in making sure that they are not overly depleting their back up funds and their back up funds are going to help to offset various expenses and perhaps even to offset some emergency situations if they may end up falling into a kind of emergency situation that lasts for a bit of time and/or might have impacts on lowering their income and/or increasing their expenses in ways that they had not expected to happen.. and perhaps in such a way that they are able to use their back up funds rather than ending in a situation where they had to tap into their bitcoin at a time that was not of their own choosing.
By the way, I will mention that sometimes guys will get cocky and they will presume that they are in a strong financial situation based on their bitcoin going up in considerably large ways and that their bitcoin holdings are in considerably large profits... so they might even consider themselves eager to tap into their bitcoin based on their bitcoin being "in profits," yet their having had tapped into their bitcoin may well was not a good idea or a good practice and it may well put them into a wrong mindset in regards to an ongoing need that may well exist for them to continue to build their bitcoin rather than taking chances with selling some of their bitcoin while they might have had told themselves that they were in the midst of ongoingly building their bitcoin through buys and/or accumulation.
In the end, guys have to decide for themselves how to handle any cashflow situation that they come accross and also consider where they are at in their bitcoin accumulation journey and perhaps even try to figure out how serious they are about bitcoin investment and bitcoin accumulation.. since sometimes, guys may well get a wee bit too cocky early in their bitcoin accumulation journey (including in their first cycle) and then when 10 years down the road ends up coming, they end up having way less bitcoin than they could have had based on their own losses of bitcoin accumulation focus.
It is important to deposit Bitcoin in the DCA method in the long term and to have an emergency fund to protect your holdings because while it is important to accumulate assets, it is even more important to focus on maintaining them because it is better to be prepared for emergencies that may arise.
These are correct perspectives, and it can take some time to build up the back up funds and also build up bitcoin holdings, yet there may well be some guys who had been accumulating bitcoin and also strengthening their cashflow management practices by building and maintaining back up funds, yet sometimes they can also end up making mistakes in terms of how large of a back up they are keeping and also perhaps making sure that certain aspects of their funds are not allowed to become overly small - since surprises in regards to loss of income and/or increased expenses might end up lasting for a while and several issues end up coming up at the same time, so having the extra funds can surely provide a cushion so bitcoin does not have to be tapped into when that was not the choosen way of building and/or managing the bitcoin holdings.
If a new investor has extra funds they can use that fund as an emergency fund and allocate a large part of their discretionary income to regularly invest in Bitcoin. If you don’t have an emergency fund when you start investing in Bitcoin you should set aside a small amount of discretionary income to cover emergencies.
It is important to deposit Bitcoin in the DCA method in the long term and to have an emergency fund to protect your holdings because while it is important to accumulate assets, it is even more important to focus on maintaining them because it is better to be prepared for emergencies that may arise.
I want to add that every investor have their peculiarities so there is no need specifying what portion of their discretionary income should be used for emergency funds or investment funds,
each person will figure this out. The most important thing is to get started and every other thing will follow naturally including the conviction that they need to set of back up funds and every other thing that is needed to ensure that the investment is safe and not exposed to unplanned sell off.
When I started, I did not have emergency funds because I never knew about it. It was when I became active in this forum that I learnt many things including the emergency funds concept and other fantastic things that makes the investmemt process seamless. New investors that started from the knowledge they gained in this forum are truly lucky because they will start very well.
Guys can still end up fucking up, even if they might believe that they are doing everything correct.
Of course, if a guy makes it through a whole cycle or even a cycle and a half (such as 6 years), then he probably had gone through quite a variety of situations that allows him to prepare for various extreme ups and downs that might end up playing out and sometimes the time period (or the amount of price movement) of the up or the time period of the down (or the amount of price movement) is just way beyond expectations, so he has to figure out some way(s) to adapt and make sure that he is sufficiently comfortable with what he is doing and where he is at in terms of his progress (and sometimes seemingly lack of progress).
You also suggested that guys will just "figure things out," which probably is not true, since some guys end up making mistakes, even when they might have had already put decently good systems and practices in place. I will agree with your seeming presumption that ongoing practice and experience tends to be a good teacher, and guys can look at what they are doing and even tweak what they are doing from time to time to try to make it more comfortable for their psychology and/or their finances, yet sometimes guys will still have doubts, second guess themselves and get lured into some kinds of inferior practices (such as trying to trade) or getting sucked into shitcoins because they lose their patience.
Guys are responsible for striking the better of balances, yet even smart guys will sometimes make some pretty large and/or irreversible mistakes...and probably one of the advantages of having a forum like this, which seems to be what you were suggesting, is that each of us can bat around some of our ideas, and even sometimes propose some specific ideas and/or formulas.. and guys can give their counter ideas (and/or sometimes agree with us), yet in the end, each of us is responsible for our own choices and our own screw ups to the extent that we might end up making any of them, and surely some mistakes might just hurt a bit, when they happen, and other mistakes might really end up setting guys back in severe ways in terms of what they might have had thought to be their reasons for involving themselves in bitcoin.
Even though I have some confidence in several of my bitcoin investment ideas and my past practices, it can also become difficult to relate to some of the dilemmas of the newer guys since for sure some aspects of my historical approaches to bitcoin are likely not to work in the same ways as they had worked out for me..and even in recent times, I have experienced more and more frustrated feelings and perspectives in terms of the directions of aspects of bitcoin and the various ways that guys are exposing themselves to paper bitcoin rather than real bitcoin and that there seem to be quite a few ways that directly holding and/or transacting in bitcoin is ongoingly being attacked... which surely undermines some aspects of bitcoin's ongoing value propositions.
I agree with you, emergency fund and bitcoin investment are supposed to work hand to hand. Many people focuses only on accumulating bitcoin but they forgot that life can bring expenses at any time. If someone does not have an emergency funds and when problem comes up, they may be forced to sell their bitcoin at the wrong time, maybe when the market is down. Which can actually make the person lose both money and future gains. That is why new investors are supposed to have an emergency funds and still continues to invest through DCA. DCA is a very good strategy because it helps to reduce stress of trying to predict the market, and it also helps to buy consistently and focus more on longterm investment. Emergency funds are very important it gives peace of mind and it also helps investors to avoid making financial decision mistakes especially during difficult situations.
Being forced to sell an investment fund at an emergency moment in the investment journey due to lack of emergency funds is always detrimental, be it in a bear market or a bull market. You may not need to expect a bigger loss than this if you are failing to achieve success. We cannot intentionally ignore the emergency fund from the investment plan, if the situation is different, it is under consideration.
Another point you mentioned is that new investors should have an emergency fund, which is wrong. The need for emergency funds is more for old investors than for new investors. When an investor's investment fund has taken a shape that becomes valuable to him, from that time until he achieves success, every investor should have an emergency fund. New (initial investors) investors should also have an emergency fund, but it is not as mandatory as for old investors.
You are correct Shadiq, that new investors do not need to have any kind of a fully developed emergency fund (back up funds) in order to get started investing in bitcoin, yet at the same time, everyone, including newbies, have to have some level of a cash cushion to be sure that he has enough money to make sure that he can cover any and all of his basic expenses until the next time that he gets payed.. and so in that sense, any newbie has to have a reasonable level of confidence that he is investing from his discretionary funds and not beyond his discretionary funds.
For sure, I have ongoingly shown myself as a BIG fan of newbies getting started buying bitcoin as soon as possible, so long as they have discretionary funds, yet at the same time, there has been a bit of a pattern with guys suggesting that no back up funds are needed to start (and surely part of the problem may well be with the name "emergency" funds, since it seems to me that in the real world, some guys keep extra funds and some guys do not. At the same time, it seems to me that any guy who might come to bitcoin and even try to proclaim that he is investing into bitcoin rather than gambling or trading it, then in order to take him seriously, he has to have some reasonable expectation that he is able to hold onto whatever bitcoin that he ended up buying and not forced to sell it within some relatively short period of time merely based on his lack of insight in terms of any basic expenses that he might have to cover in the coming week or two or prior to the time that he next expects to get paid.
For sure, any guy starting out investing into bitcoin and/or considering that he is going to invest in bitcoin is starting out from whereever he is at, and if his finances and/or organization in regards to his finances are in such a BIG mess that he cannot even determine the extent to which he has enough discretionary funds to get started buying bitcoin, then surely it would be best that the guy first figures out whether he has discretionary funds.... .. and so there can be levels in regards to the extent to which a bitcoin newbie might be organized or unorganized in regards to his finances, and surely if he does start buying bitcoin, he is starting from where he is at, and I personally think that as a default, a lot of normies (whether they are in bitcoin or not) tend to maintain a certain amount of cash cushion, so they are not tending to "live on the edge," yet at the same time, guys have to make some preliminary assessment regarding where they are at and if they have enough discretionary funds to get started buying some bitcoin, whether that is $100 worth of bitcoin, $10 worth of bitcoin or some other amount and/or if they might make tentative preliminary plans to buy every week at some similar rate.
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We create emergency funds to meet urgent needs. Creating an emergency fund is very important in investment because any financial problem should not cause any shortage in the investment. Therefore, when deciding to invest, priority should be given to emergency funds. In addition, financial stability is important to continue the investment continuously. Therefore, the right amount should be determined without keeping a large part of the discretionary income in investment. So that financial priority is given in every case. However, there is no such mandatory requirement that an emergency fund should be created before investing. If someone is sure that he will not have any financial problems after investing, then an emergency fund can be created along with investing.
Why so much drama Rabata? Newbies to bitcoin may well be making an assessment regarding whether to start investing into bitcoin based on their assessment of their level of discretionary funds. If they determine that they have discretionary funds sufficient to get started, then they can also determine how much of their discretionary funds they will allocate towards buying bitcoin, how much to put into their back up funds (and how much they put into their back up funds may well depend upon how much back up funds are already there), and they can also decide how much they are going to discretionarily consume... .. and so maybe another factor might be to consider the when might be the next time they expect to get paid, if they have any expectation of receiving any income in the foreseeable future.
