JJG’s Outline of Bitcoin Investment Ideas

[AYOBA]

Investment should always be done with our discretionary income. And investing in bitcoin with discretionary income and applying the DCA strategy shows that we are embark on a long term journey so no need for us to get frustrated or panic over any market conditions instead we seeing dips should be a big opportunity for us to use our DCA strategy and accumulate at lower price and keep the consistency in proper Check.

Reasons why most of the investors didn’t get good results in their investment is because they refused to use their discretionary income to invest, and without the discretionary income I don’t think the investments will go well as they plan. So in this case using our discretionary income will be the best option for every investments, and since the DCA as also be introduced it has make the investments to become easier.

Emergency funds and reserve funds will be a good help to us to keep up with any situations that comes up unaware without not  going to our holdings and seeing it as option to sell. Emergency funds and reserve funds saves us from such fortune.

Yeah, that’s why they said that when it come to investments we should invest the amounts of money that that we can afford to lose, because if we use all our money without having some money on grand if an emergency comes up it will be a big problems.

[Sonia_123]

[edited out]

While it's good to invest aggressively when a person can, it's still not proper to go overboard with it. Being overaggressive can be costly because it means going out of the right way by either going beyond discretionary income or putting in more than you can afford which is totally wrong because investment is not meant to cause financial and psychological pressure. Most people get the idea of aggressive accumulation wrongly that's why they end up doing it wrongly. We are expected to be able to know our aggressive limit since we know how much we can take.

I agree with you, there's no universal amount for aggressive accumulation and it's totally the decision of every investor to determine how aggressive they go and when they do it since we all have different situations, expenses and even discretionary fund. In the end ones aggressiveness is determined by how much of their discretionary income they can put into buying Bitcoin and not how much they earn or how much discretionary income they have.
Each investor need to set their own rule of aggressiveness based on their own situation in a way that they form a balance approach by considering other uses of the discretionary fund and not just focusing on a certain category and not neglecting the others.

Our measurement of our total quantity of discretionary funds that we have available will show us the absolute maximum that we could put into bitcoin, yet an overwhelming majority of the time, it is not going to be to our advantage to maximize our bitcoin investment based on how much discretionary funds that we have available.  For example, if we have been investing $100 per week into bitcoin for the past 20 weeks from our discretionary income, and maybe we have also been building up our back up funds with $50 per week, and maybe we have been discretionarily consuming around $50 per week during that same time, yet maybe we also have some special event coming up.  For example, perhaps our sister is getting married within the next 6 weeks, and we have several family members coming from out of town, and maybe we know that there is a certain level of poverty and difficulty in the family, and perhaps for the next 6 weeks we may well need to help the family and invest around $40 per week into the wedding and the various preparations, so after some consideration we decide that we will ONLY be able to invest around $80 per week into bitcoin for the next 6 weeks, and we would save only $40 and discretionarily consume only $40.. So we are trying to find a balance and to contribute towards the expenses of the family, even though we don't have to do that... but we consider such contribution is the best thing to do.  

Of course, not everyone is going to decide the same in terms of how much to allocate or what kinds of changes to make to our budget based on other discretionary ways that we could spend our available discretionary funds.

I agree with your point, and example here is well understood, now just because we have enough of our discretionary income to buy bitcoin doesn’t mean we should always invest the maximum amount all the time. Financial planning is also matter in investment, because is all about balancing long term goals with present responsibilities.

And my own opinion is that a sustainable strategy is one that can always stick for a years, because whenever life changes, investing consistently while maintaining the real life situation is always better than over committing and later forced to stop investing altogether. And for the example of reducing bitcoin buying temporarily to support a family event shows that being a flexible is not a bad thing, that’s the sign of good money management, we can still continue buying bitcoin gradually while still taking care of important obligation and still maintaining our emergency funds.

The sustainable strategy remains the DCA strategy that allows you to invest at any point in time either daily,weekly and monthly, it is suitable for everyone both old and new investors, rich and poor as long as you can figure out your discretionary income.

Using your discretionary income means you have sort all your bill and what is left is what you are using to invest in Bitcoin if you still have some expenses left that has not being sorted out that means you don't have a discretionary income untill you have finalized your monthly expenses and then you have left over then you can proudly say you have discretionary income.

Also having excess discretionary income means you had less expenses for the month which now gives you the privilege to increase your back up fund and reserve funds for the days that you might need them when you find yourself in a more difficult situation so that you don't temper with your bitcoin investment and become a low or no coiner.

[Humblevirus]

It is left for individual to decide how much knowledge they will want to have trying to learn about bitcoin before they can start investing, but for an individual who already have a discretionary income available and wants to invest with the DCA method he doesn’t need to waste much time trying to learn bitcoin thoroughly before he can start buying with the DCA. He can start buying bitcoin and invest with the DCA and hold if his discretionary income is available and as time goes on while he’s ongoing DCAing he will be able to understand more and gain further knowledge. Market price fluctuations is inevitable In bitcoin so for a long term investor it’s always best to approach the market with a discretionary income when our basic needs are being met then using the cash we won’t be needing anytime soon.

Discretionary funds are the most important aspect of starting a Bitcoin investment. As long as someone has discretionary funds, it is easy to start investing in Bitcoin, and other things, including further learning about Bitcoin, can follow.Through the process of accumulating Bitcoin, it becomes easier to learn. In fact, it is not always necessary to encourage someone to seek extensive Bitcoin knowledge before they begin investing. Therefore, nobody should wait until they have learned everything before starting their Bitcoin investment, because doing so may result in lost time and missed opportunities.As you said, it is always good for newbies to start their Bitcoin accumulation through the DCA strategy because it makes accumulation easier and reduces fear in the investor's mind. This is because they are approaching Bitcoin gradually by investing small amounts over time. It also allows them to buy Bitcoin at different price levels.

[JayJuanGee]

To me what i understand about aggressive buy or aggressive invest in Bitcoin is buying Bitcoin consistently whenever someone have discretionary income. It is not bad for investors to make use of aggressive buy if they are not doing it beyond their discretionary income so that they will build up their various back up funds that will allow them to always sustain their Bitcoin investment, so investors that are going to buy Bitcoin consistently or aggressively should always buy within their discretionary income so that they will not start gambling with their Bitcoin investment and in the end they sell their Bitcoin investment to take care of their living expenses.

Your main point is correct that aggressive buying should not be understood as something where an investor puts his essential expenses, emergency fund or family responsibilities at risk by buying Bitcoin. Aggressive buying is basically accumulating Bitcoin with more importance than he can afford.

Your description seems to be mixing up "aggressive" bitcoin buying with "overaggressive" bitcoin buying @Saltysugar99, since aggressive bitcoin buying is merely prioritizing bitcoin buying, versus overaggressive represents if a guy had gone too far in his bitcoin buying by either spending beyond his discretionary funds or otherwise not sufficiently protecting his finances and/or psychology.

If a person calculates his income, expenses, backup fund and risk tolerance and sees that he can allocate a large amount of discretionary income to Bitcoin on a regular basis, then it can be aggressive accumulation. But if he buys Bitcoin with money for basic needs, then it is not aggressive investment but rather becomes like bad investment management and like gambling.

your second example is overaggressive, which yeah we should pay attention so that our bitcoin buying, even if aggressive, does not get so extreme that we end up becoming "overaggressive" in our balancing of our expenses and/or back up funds that we might keep, too.

An investor can invest aggressively in DCA if he wants. For example, if his weekly discretionary income is good, emergency fund is ready, and his living expenses are secure, then he can increase the regular buying amount. Again, if his income decreases or expenses increase, it is normal to reduce the amount. This does not mean that the strategy has become weak, but rather that he is continuing to accumulate Bitcoin according to his real financial condition.

This is a good example.  I agree with you in terms of the need for each of us to pay attention that we sometimes might need to adjust the frequency and/or quantity of our bitcoin buys so that we account for changes in in our income and/or expenses.

So aggressive buying can be good, but it must be controlled aggressive. Trying to buy more Bitcoin without strengthening your discretionary income, backup fund, emergency fund and cashflow system can create danger in the long run. Because the goal of an investor should not just buy Bitcoin, but rather create a position so that even if market volatility comes, he can hold it without panic selling.

Another good point.  If guys get sloppy in their bitcoin accumulation and/or their cashflow management, the might get caught off guard at some later point, since sometimes we might not even realize that we are overdoing it until further down the road, and then if we go overboard in one direction or another, we won't be able to go back and fix our earlier mistakes, especially if several years might pass and then we realize that we either been too whimpy or we had been too aggressive... ..

Actually it’s the only valid thing cos the best time to buy bitcoin is now, and the dip even makes it sweeter so you can’t say it’s misleading. So long as you have your discretionary you can start buying immediately and if you’re already investing now is the kind of time you’ll want to be aggressive and maybe use your reserves to buy more.

If you’re saying the statement is wrong or misleading, are you suggesting they wait till the market start going back up before they start buying?

All these are just misunderstanding between you too. I agree with you that the best time to buy Bitcoin was yesterday, and another best time to buy is now, wether it is a dip market or not, as long as your discretionary income is available and ready, buying and starting your Bitcoin accumulation journey is what you should do, their is no point in wasting time.

The only thing that is wrong is when you are waiting for the dip before buying, but as long as you are not waiting for it before buying, then it's never a problem even if you buy aggressively within the confinement of your discretionary income.

For whatever strategy you are using to accumulate bitcoin now is an added advantage to try to accumulate as much as possible. For those using the DCA strategy, accumulating constantly have been their routine so this period only an advantage to get more, while for those using the Buy the dip, this period is the actual time to strike, for some who might want to wait for more dip is on a risk because we don’t know when the dip will end.

I am not much of a fan of buying the dip strategies, especially for guys who already know that they are in their early accumulation phase, so it seems a bit distracting to be talking about ways to potentially assess our current price status or dip status to make proclamations about the extent to which to buy dips or not.

On the other hand, I frequently proclaim that the 200-WMA is a fairly reasonable bottom indicator, even though surely we have had historical periods in which the BTC price barely touched upon the 200-WMA and largely stayed above it, and then other times, such as between June 2022 and October 2023 that the BTC price spent a considerable amount of time below the 200-WMA, and even reached right around 25% to 35% below the 200-WMA on various days in November and December 2022.

Right now the 200-WMA is $61,850, and so even if guys might want to try to increase their aggressiveness level during dips like these, it still can be difficult to know how practical it is to really plan around increasing the aggressiveness of buys or just to make sure to stick with reasonable ongoing DCAing as income is coming in (especially as discretionary funds come available).

Another thing that many of us recognize and appreciate is that it can take a reasonably long time to build up a bitcoin investment stack size, and it can even take 4-10 years or longer just to build up the bitcoin holdings to a certain reasonable size, yet there also can be situations where some guys might be able to invest more aggressively based on other funds and/or investment that they might be able to invest into bitcoin or they might have high levels of discretionary funds so they are able to make faster progress in their reaching high levels of bitcoin accumulation that they might consider to be enough or more than enough bitcoin that also would tend to lessen their need for ongoing bitcoin accumulation and might cause them to strategize around buying on the dips and other changes in their accumulation practices, and even reaching overaccumulation status might also cause them to consider that they do not need to accumulate any more bitcoin.

So for every strategy you are using make sure you make most of this Dip and accumulate much investment. 

You seem to presume that you can identify the dip and that there is some kind of value for guys to increase their bitcoin buying aggressiveness based on your perception that there is a current sufficient dip.

But also even as we are trying to take advantage this period we should make sure we are buying within our discretionary income. We shouldn’t get carried away and involve the mindset of a trader in our investment.

Some guys may well be limited in their abilities to change their weekly DCA amount, and even if they had been accumulating bitcoin for quite a bit of time, even for a whole bitcoin cycle or more.

Since you have been registered here since April 2022 (4 years and a whole cycle) maybe you have changed some of your bitcoin accumulation strategies based on your perception of dips, and sure there could be some situations in which guys might have had been already able to accumulate a lot of bitcoin, so that they are strategizing around dips, yet I am not even sure if there are many guys who are in that kind of situation or if there are especially compelling reasons to get more excited about bitcoin accumulation, since many times the abilities of guys to make adjustment to their bitcoin accumulation tends to depend on both the quantity of discretionary funds that they have to work with and even how strongly they had already been able to build up their cashflow management systems/practices, which surely if guys had been holding back funds in order to buy on the dip, that does seem to be more like attempts to trade and/or gamble rather than trying to maintain a more steady DCAing practice that is based on buying bitcoin when funds are coming in, whether weekly or otherwise.

[edited out]

The DCA method is indeed one of the best strategies for BTC but many investors fail because they lack the mental fortitude and knowledge. Without these two, they usually just follow the crowd. When the price drops they panic and stop DCA or even sell at a loss. I mean, the DCA method is good for Bitcoin investment but without confidence in Bitcoin the DCA method will also be useless if there is a sharp decline.

So, the best advice to avoid panicking when the market price fluctuates is to learn Bitcoin thoroughly before DCA so that you have confidence that when a sharp decline occurs you will consider it a discount.

I should not have to repeat myself in my own thread.

You should know better, since I ongoingly advocate getting started ASAP as soon as the beginner is able to assess that he has sufficient discretionary funds.  Your assertion about a need for prior knowledge contradicts my own ongoing repetition.  Have you even read this thread?  Are you even attempting to stay on topic of the thread? or are you just wanting to bring your own ideas without at least attempting to address my own ongoing repetition on the point of getting started ASAP.

In essence, DCA without understanding is the same as slow gambling. But DCA coupled with understanding and patience is one of the most sensible ways to build wealth in BTC.

Get the fuck out of here with your nonsense exaggerated and presumptuous proclamations that suggest that there are certain specific knowledge prerequisites in getting started in bitcoin investing (buying) that goes beyond being able to determine discretionary funds and having common sense.

[Razmirraz]

Investment should always be done with our discretionary income. And investing in bitcoin with discretionary income and applying the DCA strategy shows that we are embark on a long term journey so no need for us to get frustrated or panic over any market conditions instead we seeing dips should be a big opportunity for us to use our DCA strategy and accumulate at lower price and keep the consistency in proper Check.

Reasons why most of the investors didn’t get good results in their investment is because they refused to use their discretionary income to invest, and without the discretionary income I don’t think the investments will go well as they plan. So in this case using our discretionary income will be the best option for every investments, and since the DCA as also be introduced it has make the investments to become easier.

Using discretionary income to invest is the key to financial success because it allocates "cold money" that does not interfere with survival, especially combined with DCA, this strategy becomes very optimal. Investing in Bitcoin takes time (long term) for the asset value to increase, using discretionary income gives investors the space to let the money be invested in the long term and not easily panic when the market drops "psychological shocks often trigger panic selling (selling at a loss)".

This investment combination is ideal for buying assets with strong fundamentals like Bitcoin, as it helps investors avoid the risk of buying at the wrong time while protecting their money from inflation. Ideally, investing in Bitcoin should begin with discretionary income, then combine it with DCA, plus time and knowledge to secure the asset, this combination is part of the safety formula for retail investors with limited capital.

[alankasman]

Your description seems to be mixing up "aggressive" bitcoin buying with "overaggressive" bitcoin buying @Saltysugar99, since aggressive bitcoin buying is merely prioritizing bitcoin buying, versus overaggressive represents if a guy had gone too far in his bitcoin buying by either spending beyond his discretionary funds or otherwise not sufficiently protecting his finances and/or psychology.

Each word has a different meaning so in my opinion, after understanding what you said earlier your statement is correct. Both words have their own distinct meanings. Don't equate the two meanings with one meaning. This statement of ours can easily confuse many people in understanding the two meanings.

Doing it with prioritization has a different meaning because if someone prioritizes it of course every time they have income they already think about the income they have received which they will use to accumulate Bitcoin while those who do it in an aggressive way of course they do it with whatever amount of capital they have they all use it to accumulate Bitcoin without leaving anything for their survival needs so what I need to ask is how will someone who does it in an aggressive way experience losses that make them lose a lot of money because they are too aggressive in doing it is this someone who is right in investing in Bitcoin?

[Abbatty]

Some guys may well be limited in their abilities to change their weekly DCA amount, and even if they had been accumulating bitcoin for quite a bit of time, even for a whole bitcoin cycle or more.

Since you have been registered here since April 2022 (4 years and a whole cycle) maybe you have changed some of your bitcoin accumulation strategies based on your perception of dips, and sure there could be some situations in which guys might have had been already able to accumulate a lot of bitcoin, so that they are strategizing around dips, yet I am not even sure if there are many guys who are in that kind of situation or if there are especially compelling reasons to get more excited about bitcoin accumulation, since many times the abilities of guys to make adjustment to their bitcoin accumulation tends to depend on both the quantity of discretionary funds that they have to work with and even how strongly they had already been able to build up their cashflow management systems/practices, which surely if guys had been holding back funds in order to buy on the dip, that does seem to be more like attempts to trade and/or gamble rather than trying to maintain a more steady DCAing practice that is based on buying bitcoin when funds are coming in, whether weekly or otherwise.

You are right, many people tend to have tight or predictable budget, so their DCA amount is what actually survives after their needs have been sorted. So most times to them increasing investment funds is not realistic without cutting off basic needs or earning more, while reducing it makes them feel like they are failing at accumulating. So for these people I would say DCA is less of a choice and more of necessity. They don’t make plans for Dip but instead they stack up when they have good earning.

I still get your point on holding back funds in other to by the dip seems more like a gamble or trading. Because sometime the Dip might not come and we will have that cash sitting idle instead with DCA that cash would have been buying all along.

[Olatundespo]

I Have not been active on this thread  for a while now, I was  busy with other things but obviously  I'm back again  as it's one of my favorite  threads  where I see different  ideas from different  people. I can see that alot has  been said going  through  the thread  this morning, contributions are topnotch  the lasted discussion  I saw was about taking  advantage  of the current  dip and accumulate  as much as you can and that's absolutely  perfect  if you have you way you should  probably  increase  your DCA if it won't  affect  you basic needs and daily  enpenses, this is because  you're  actually  getting  to buy lot cheaper  and once the price correct  you lose that opportunity  and it might tKe a while to get the low price  to buy again to taking  advantage  of this time can't  be over emphasize  it's just the best thing to do at the moment.

Yes, many people are talking about this issue because of the current low price of Bitcoin. Most are actually emphasizing holding and continuing to invest regularly. But in reality, it is not known how many people are able to control their emotions and stay away from panic selling at this time. Some are panic selling at this time, some are holding mentally strong. Some are investing aggressively, because many have been waiting for this kind of price drop for a long time. Those who hold at this moment and can continue investing patiently will actually be successful in the future. Because such a fall in the price of Bitcoin has been observed in the past, but Bitcoin has turned around time and again. So long-time holders are now having to test their patience.

How you view the decline in the price of Bitcoin will determine how successful an investor you will be in the future. You have examples of people were scared and withdrew some of their capital due to fear of losing it. I have identified those who will regret that decision in the future. Bitcoin has declined many times in the past but recovered its value in the market within a short period of time. Consistent accumulation are a great opportunity for smart investors to get the dip period of Bitcoin to increase their holdings at a low price. This is why long term investors are advised to keep a reserve fund available because they can meet small emergencies through this fund. In bearish periods like the current price you can create opportunities to increase Bitcoin holdings. I think you should have a long term Bitcoin accumulation mindset and you will gradually become patient.

[Proty]

Your description seems to be mixing up "aggressive" bitcoin buying with "overaggressive" bitcoin buying @Saltysugar99, since aggressive bitcoin buying is merely prioritizing bitcoin buying, versus overaggressive represents if a guy had gone too far in his bitcoin buying by either spending beyond his discretionary funds or otherwise not sufficiently protecting his finances and/or psychology.

Each word has a different meaning so in my opinion, after understanding what you said earlier your statement is correct. Both words have their own distinct meanings. Don't equate the two meanings with one meaning. This statement of ours can easily confuse many people in understanding the two meanings.

Doing it with prioritization has a different meaning because if someone prioritizes it of course every time they have income they already think about the income they have received which they will use to accumulate Bitcoin while those who do it in an aggressive way of course they do it with whatever amount of capital they have they all use it to accumulate Bitcoin without leaving anything for their survival needs so what I need to ask is how will someone who does it in an aggressive way experience losses that make them lose a lot of money because they are too aggressive in doing it is this someone who is right in investing in Bitcoin?

Accumulating bitcoin aggressively shouldn't be done with all your income and it is wrong for you to think that it is only when someone used all there income for buying bitcoin that is when they are being aggressive. Aggressive buying of bitcoin is determined by the percentage of discretionary income used in accumulating bitcoin. Someone that used %80 of there discretionary income for buying bitcoin is being aggressive. Therefore, it is not necessarily that they must used all there hard earned money for buying bitcoin before they can be seen as being aggressive.