JJG’s Outline of Bitcoin Investment Ideas

[JayJuanGee]

However, if someone has the means to pay back the loan, I would say it is not a bad idea for that person to take a loan to invest in Bitcoin, whether the person is a newbie or not, because they have the means to repay the money without relying entirely on the Bitcoin investment.The reason why many people are against taking a loan to invest in Bitcoin is that there is a possibility that they may not be able to pay back the loan. So let us understand that taking a loan can be either bad or good depending on a person reason for taking the loan to invest in Bitcoin and their ability to repay it.

I can't stop asking myself that, what could possibly make someone to go take out loan to invest in bitcoin, is it that they run out of discretionary funds? Of course if that's the case, they should wait patiently until they figure out Thier discretionary income to continue from where they stopped rather than taking out loan I think that's what every professional would do.

It would be completely retarded if a person took out a loan to buy bitcoin and if they don't have discretionary income and/or discretionary funds to be able to pay off the loan.

[edited out]

I don't think that there's any more level of aggressiveness he can be apart from using his reserve funds to buy at the dip based on his own price target. If he wants to go more aggressive that should boil down to his DCA amount from their regular discretionary income and not buying on the dip because his reserve funds is there to handle that.

I don't know why folks like to focus on buying aggressively only on the dip that it's not certain since it may come or not instead of just ongoingly buying Bitcoin with DCA and buy aggressively, whenever you can with DCA. It's just similar like saying you are only going to buy aggressively only at the dip and keep on piling up funds for the dip instead of just using the money to add to your DCA when the dip isn't sure.  That's another way of slowing down your accumulation pace.

I am generally of the opinion that guys who are strategizing for dips that may or may not happen, and/or waiting for the dip are investing in a less aggressive way, relatively speaking.

They can do what they like.  I don't recommend very much strategizing around dips that may or may not happen rather than putting systems and practices in place in which buying is tending to be ongoing, persistent, consistent and regular, and those are ways to try to be as aggressive as we can without over doing it.

I myself put this reserve fund and emergency fund in the needs category, so when I receive my income there I divide it for daily needs, for savings, and for emergency funds and then the rest I allocate to bitcoin with a minimum amount that I have set myself.

It seems confusing to use the term savings in this context since savings is reserve funds, and so there are two kinds of back up funds which are emergency funds and reserve funds.  You seem to be putting back up funds in the same category as basic expenses, and they are not.  Basic expenses are those that have to be taken care of that month and they cannot be deferred.  After you account for basic expenses, then you have discretionary funds and from the discretionary fund you can decide how much prioritiy you are going to give to back up funds, investing and/or discretionary consumption. 

Hmm, maybe I should change my approach as you suggestedby covering my needs first and only then allocating the remaining funds (discretionary funds) to my reserve fund, emergency fund, and investments. This is a valuable lesson for me, and I’ll give it a try. This is one of the uses of forums, to share knowledge which is certainly useful for each other.

Regardless, money management is something that needs attention in this context. With good money management, we’ll be able to allocate our funds effectively. I believe someone will face difficulties if they don’t have good money management irregular spending could make it hard for them to even meet their basic needs.

If guys are ongoingly striving to learn and they are practicing, then likely they will continue to improve what they are doing and to tailor what they are doing to their own cashflow situation and various other personal factors.

I doubt that that guys should expect perfection, and they are likely to make mistakes, and maybe even not realize the extent of some of their mistakes until many years later, and even our opinions might change, from time to time, too.

[edited out]

I am using the DCA strategy and I also have a reserve funds that I have kept to be used whenever there is a dip as I'm speaking to you now right now I have used almost all my reserve funds to accumulate bitcoin during this dip, I only accumulate aggressively with my reserve funds during a dip in Bitcoin price I don't accumulate aggressively when bitcoin price is stable or high in price the reason why I do this is because I know that Bitcoin always bring us an opportunity to accumulate with less price so I always make good use of that opportunity when it comes.

You are full of shit.  You have no fucking clue if the BTC price is going to go lower or not, so when you choose to buy on dips you are making a trade off and you are largely gambling that the BTC price is going to go down.

And, sure, it could be possible that you were able to get some more bitcoin as compared with if you had been buying bitcoin steadily, yet the fact that you have only been registered here for less than 9 months would not even be close to a long enough of a track record for you to really know what the fuck you are talking about, even if you might have had gotten lucky this time.  Are you wanting to tell me that you have been in bitcoin more than 9 months?  If you have ONLY been in bitcoin for 9 months, then yeah, the last 9 months bitcoin's price has been trending down, and so what if you had been waiting for the BTC price to go down and you ended up being correct (this time).

If you are fucking around trying to time price versus guys who are regularly buying bitcoin and focusing on increasing their discretionary funds so that they can buy regularly, persistently, ongoingly, consistently and perhaps even aggressively, then the longer period of time, such as more than a couple of cycles (such as over 8 years or more), you are likely not going to be outperforming the guys who are focused on persistently buying bitcoin... but yeah, it might also depend on the various other know it all ways you might be fucking up your own thinking about bitcoin by having dumbass ideas that you can predict the ups and downs of the BTC price rather than focusing on ongoing accumulating by buying only techniques.  Are you trading also, and are you also fucking around with shitcoins since you supposedly got bitcoin so figured out?

[As-Soon-As]

Not having our emergency funds should not stop us from getting started with our bitcoin investment as we can start immediately if there is any discretionary income available and as a new investor they can buying with your discretionary income and still be building up there emergency funds along the line as they are ongoingly buying bitcoin, first thing first we needed to get started with is having our discretionary income available then emergency funds follows.

See, starting Bitcoin investment is the most important thing, even if you do not have an emergency fund, start investing in Bitcoin. Because if you start investing in Bitcoin, you will definitely be able to increase your income later and you will be running around looking for different sources of income on your own.
So we give the most importance to starting Bitcoin investment, many people are afraid to start investing in Bitcoin, but if you hold Bitcoin investment for a long time, then there is no fear. Your source of income will be good, you will not have to keep Bitcoin investment for a long time, it will become easy, as a result, you will get the opportunity to form an emergency fund with your strategy.
So if any new Bitcoin investor wants to start, then you can definitely start, because the time you are wasting will not be returned at all. Now the price of Bitcoin is under high pressure to sell in a cheap market, so if you buy Bitcoin at a low price and hold it for a long time, you will definitely be successful.

[JayJuanGee]

Not having our emergency funds should not stop us from getting started with our bitcoin investment as we can start immediately if there is any discretionary income available and as a new investor they can buying with your discretionary income and still be building up there emergency funds along the line as they are ongoingly buying bitcoin, first thing first we needed to get started with is having our discretionary income available then emergency funds follows.

See, starting Bitcoin investment is the most important thing, even if you do not have an emergency fund, start investing in Bitcoin. Because if you start investing in Bitcoin, you will definitely be able to increase your income later and you will be running around looking for different sources of income on your own.
So we give the most importance to starting Bitcoin investment, many people are afraid to start investing in Bitcoin, but if you hold Bitcoin investment for a long time, then there is no fear. Your source of income will be good, you will not have to keep Bitcoin investment for a long time, it will become easy, as a result, you will get the opportunity to form an emergency fund with your strategy.
So if any new Bitcoin investor wants to start, then you can definitely start, because the time you are wasting will not be returned at all. Now the price of Bitcoin is under high pressure to sell in a cheap market, so if you buy Bitcoin at a low price and hold it for a long time, you will definitely be successful.

Investing into bitcoin is not guaranteed to be successful.

Also, if a person starts investing with bitcoin with absolutely no backup funds, then that would be problematic, so there is a need to have some back up funds when starting.

Frequently active forum guys (including myself) will suggest building back up funds and the bitcoin holdings at the same time, and so we should not either negate back up funds or to suggest that they are not needed.

Yet, there is a certain importance in getting started from where-ever the newbie bitcoiner is at, especially if he knows that he has discretionary funds.

If a newbie bitcoiner is feeling a bit lost about how to get started and he is not even sure about his abilities to manage his cashflows, and he might even be confused about the status of his cashflows, yet if he is at least able to figure out that he has discretionary funds, then he can get started and maybe even using 1/3 of his discretionary funds to buy bitcoin, 1/3 to put into his back up funds and 1/3 for discretionary consumption.. and if he is not even confident about the amount that he is putting into bitcoin based on his lack of comfort and even his lack of knowledge, then he could purposefully reduce the amount that he puts into bitcoin in or that he can simultaneously spend time improving his knowledge of bitcoin and also getting more comfortable with the strengthening of his cashflow management.

[Big Dirams]

Investing into bitcoin is not guaranteed to be successful.

Also, if a person starts investing with bitcoin with absolutely no backup funds, then that would be problematic, so there is a need to have some back up funds when starting.

Frequently active forum guys (including myself) will suggest building back up funds and the bitcoin holdings at the same time, and so we should not either negate back up funds or to suggest that they are not needed.
Yet, there is a certain importance in getting started from where-ever the newbie bitcoiner is at, especially if he knows that he has discretionary funds.

If a newbie bitcoiner is feeling a bit lost about how to get started and he is not even sure about his abilities to manage his cashflows, and he might even be confused about the status of his cashflows, yet if he is at least able to figure out that he has discretionary funds, then he can get started and maybe even using 1/3 of his discretionary funds to buy bitcoin, 1/3 to put into his back up funds and 1/3 for discretionary consumption.. and if he is not even confident about the amount that he is putting into bitcoin based on his lack of comfort and even his lack of knowledge, then he could purposefully reduce the amount that he puts into bitcoin in or that he can simultaneously spend time improving his knowledge of bitcoin and also getting more comfortable with the strengthening of his cashflow management.

You are right going into bitcoin investment without having plans on our emergency funds then surely the journey will be a risky move and we don’t advise any newbie investors investing in bitcoin should make such approach.
If availability of discretionary income is in check then we can start our investment journey without no doubts and even start as soon as possible but making availability of our emergency funds is what we should focus on next without wasting much time and it shouldn’t take long because we don’t know when we might face any emergency.

And it a smart idea to build our emergency funds and our holding together, as a bitcoin investor we showing neglect making availability of our back up funds before starting our investment because it will save us from alot of unforeseen risks.

[JayJuanGee]

Investing into bitcoin is not guaranteed to be successful.
Also, if a person starts investing with bitcoin with absolutely no backup funds, then that would be problematic, so there is a need to have some back up funds when starting.

Frequently active forum guys (including myself) will suggest building back up funds and the bitcoin holdings at the same time, and so we should not either negate back up funds or to suggest that they are not needed.
Yet, there is a certain importance in getting started from where-ever the newbie bitcoiner is at, especially if he knows that he has discretionary funds.

If a newbie bitcoiner is feeling a bit lost about how to get started and he is not even sure about his abilities to manage his cashflows, and he might even be confused about the status of his cashflows, yet if he is at least able to figure out that he has discretionary funds, then he can get started and maybe even using 1/3 of his discretionary funds to buy bitcoin, 1/3 to put into his back up funds and 1/3 for discretionary consumption.. and if he is not even confident about the amount that he is putting into bitcoin based on his lack of comfort and even his lack of knowledge, then he could purposefully reduce the amount that he puts into bitcoin in or that he can simultaneously spend time improving his knowledge of bitcoin and also getting more comfortable with the strengthening of his cashflow management.

You are right going into bitcoin investment without having plans on our emergency funds then surely the journey will be a risky move and we don’t advise any newbie investors investing in bitcoin should make such approach.
If availability of discretionary income is in check then we can start our investment journey without no doubts and even start as soon as possible but making availability of our emergency funds is what we should focus on next without wasting much time and it shouldn’t take long because we don’t know when we might face any emergency.

And it a smart idea to build our emergency funds and our holding together, as a bitcoin investor we showing neglect making availability of our back up funds before starting our investment because it will save us from alot of unforeseen risks.

I did not say anything about focusing on emergency funds "next."  In fact I suggested getting the fuck started buying bitcoin and building back up funds simultaneously as getting started.  Surely guys can exercise their judgement in terms if they think that they might need to give more focus on bitcoin or more focus on their back up funds, yet there is no universal rule regarding how to do it, even though if a guy ends up screwing things up because he ended up focusing too much on one versus the other (bitcoin versus back up funds or vice versa), then he has to pay the costs of any mistakes that he might end up making, so I would think that guys don't want to end up suffering stress due to mistakes that they made that they could have had avoided.

[Big Dirams]

Investing into bitcoin is not guaranteed to be successful.
Also, if a person starts investing with bitcoin with absolutely no backup funds, then that would be problematic, so there is a need to have some back up funds when starting.

Frequently active forum guys (including myself) will suggest building back up funds and the bitcoin holdings at the same time, and so we should not either negate back up funds or to suggest that they are not needed.
Yet, there is a certain importance in getting started from where-ever the newbie bitcoiner is at, especially if he knows that he has discretionary funds.

If a newbie bitcoiner is feeling a bit lost about how to get started and he is not even sure about his abilities to manage his cashflows, and he might even be confused about the status of his cashflows, yet if he is at least able to figure out that he has discretionary funds, then he can get started and maybe even using 1/3 of his discretionary funds to buy bitcoin, 1/3 to put into his back up funds and 1/3 for discretionary consumption.. and if he is not even confident about the amount that he is putting into bitcoin based on his lack of comfort and even his lack of knowledge, then he could purposefully reduce the amount that he puts into bitcoin in or that he can simultaneously spend time improving his knowledge of bitcoin and also getting more comfortable with the strengthening of his cashflow management.

You are right going into bitcoin investment without having plans on our emergency funds then surely the journey will be a risky move and we don’t advise any newbie investors investing in bitcoin should make such approach.
If availability of discretionary income is in check then we can start our investment journey without no doubts and even start as soon as possible but making availability of our emergency funds is what we should focus on next without wasting much time and it shouldn’t take long because we don’t know when we might face any emergency.

And it a smart idea to build our emergency funds and our holding together, as a bitcoin investor we showing neglect making availability of our back up funds before starting our investment because it will save us from alot of unforeseen risks.

I did not say anything about focusing on emergency funds "next."  In fact I suggested getting the fuck started buying bitcoin and building back up funds simultaneously as getting started.  Surely guys can exercise their judgement in terms if they think that they might need to give more focus on bitcoin or more focus on their back up funds, yet there is no universal rule regarding how to do it, even though if a guy ends up screwing things up because he ended up focusing too much on one versus the other (bitcoin versus back up funds or vice versa), then he has to pay the costs of any mistakes that he might end up making, so I would think that guys don't want to end up suffering stress due to mistakes that they made that they could have had avoided.

I do agree with you but you missed my punch lines. What I meant about focusing on back up funds after making availability of our discretionary income doesn’t mean we shouldn’t start our journey of investment or maybe procrastinate our investment all because of back up funds Nope but what I was insinuating was that if we didn’t get to start our journey with back up funds then we shouldn’t hesitate to look for other means to make availability of our back up funds but our investment should start right away not until we make availability of back up funds.

Waiting for back up funds is just procrastination and that not what a good investor will apply to their journey, start to buy as soon as possible when the discretionary funds is in place.

[Halifat]

Investing into bitcoin is not guaranteed to be successful.
Also, if a person starts investing with bitcoin with absolutely no backup funds, then that would be problematic, so there is a need to have some back up funds when starting.

Frequently active forum guys (including myself) will suggest building back up funds and the bitcoin holdings at the same time, and so we should not either negate back up funds or to suggest that they are not needed.
Yet, there is a certain importance in getting started from where-ever the newbie bitcoiner is at, especially if he knows that he has discretionary funds.

If a newbie bitcoiner is feeling a bit lost about how to get started and he is not even sure about his abilities to manage his cashflows, and he might even be confused about the status of his cashflows, yet if he is at least able to figure out that he has discretionary funds, then he can get started and maybe even using 1/3 of his discretionary funds to buy bitcoin, 1/3 to put into his back up funds and 1/3 for discretionary consumption.. and if he is not even confident about the amount that he is putting into bitcoin based on his lack of comfort and even his lack of knowledge, then he could purposefully reduce the amount that he puts into bitcoin in or that he can simultaneously spend time improving his knowledge of bitcoin and also getting more comfortable with the strengthening of his cashflow management.

You are right going into bitcoin investment without having plans on our emergency funds then surely the journey will be a risky move and we don’t advise any newbie investors investing in bitcoin should make such approach.
If availability of discretionary income is in check then we can start our investment journey without no doubts and even start as soon as possible but making availability of our emergency funds is what we should focus on next without wasting much time and it shouldn’t take long because we don’t know when we might face any emergency.

And it a smart idea to build our emergency funds and our holding together, as a bitcoin investor we showing neglect making availability of our back up funds before starting our investment because it will save us from alot of unforeseen risks.

I did not say anything about focusing on emergency funds "next."  In fact I suggested getting the fuck started buying bitcoin and building back up funds simultaneously as getting started.  Surely guys can exercise their judgement in terms if they think that they might need to give more focus on bitcoin or more focus on their back up funds, yet there is no universal rule regarding how to do it, even though if a guy ends up screwing things up because he ended up focusing too much on one versus the other (bitcoin versus back up funds or vice versa), then he has to pay the costs of any mistakes that he might end up making, so I would think that guys don't want to end up suffering stress due to mistakes that they made that they could have had avoided.

I actually get your point cleared and I agree with what you have said here, this is where some of us are getting it wrong when we talk about emergency funds when we talk about emergency funds, building your investment and emergency fund simultaneously is actually the best way to do it is just let for you to break your discretionnary income into two, for instance 80% for your bitcoin investment or 85% and use 15% or 20% for your emergency funds, they have to make sure that their investment is bigger than their emergency funds because if you set your target weekly, it may be they will be almost 2 - 3 weeks without any emergency arises and this percentage will continue to accumulate which is why you put more focus on your bitcoin accumulation because it have to be consistently to have huge accumulation.

[Tetu100]

Investing into bitcoin is not guaranteed to be successful.

Also, if a person starts investing with bitcoin with absolutely no backup funds, then that would be problematic, so there is a need to have some back up funds when starting.

Frequently active forum guys (including myself) will suggest building back up funds and the bitcoin holdings at the same time, and so we should not either negate back up funds or to suggest that they are not needed.
Yet, there is a certain importance in getting started from where-ever the newbie bitcoiner is at, especially if he knows that he has discretionary funds.

If a newbie bitcoiner is feeling a bit lost about how to get started and he is not even sure about his abilities to manage his cashflows, and he might even be confused about the status of his cashflows, yet if he is at least able to figure out that he has discretionary funds, then he can get started and maybe even using 1/3 of his discretionary funds to buy bitcoin, 1/3 to put into his back up funds and 1/3 for discretionary consumption.. and if he is not even confident about the amount that he is putting into bitcoin based on his lack of comfort and even his lack of knowledge, then he could purposefully reduce the amount that he puts into bitcoin in or that he can simultaneously spend time improving his knowledge of bitcoin and also getting more comfortable with the strengthening of his cashflow management.

You are right going into bitcoin investment without having plans on our emergency funds then surely the journey will be a risky move and we don’t advise any newbie investors investing in bitcoin should make such approach.
If availability of discretionary income is in check then we can start our investment journey without no doubts and even start as soon as possible but making availability of our emergency funds is what we should focus on next without wasting much time and it shouldn’t take long because we don’t know when we might face any emergency.

You are right, because problem don't show signs before coming. Before you know it is all over you and in a situations were you didn't make neccesary arrangement for your emergency funds to take care of it when it comes, your investment holdings becomes what you will use in solving or puting things in order which is very unsafe for our investment. However, it's more better preparing ahead of time than starting preparation when you already in the mess. So the point am trying to make is that immediately you get started with your investment journey using your discretionary funds, no need wasting time in building up your emergency funds, immediately start building up every neccesary support funds alongside your investment plan so as to stay prepared in case of emergency arises.

[BluebloodCXVI]

You are right going into bitcoin investment without having plans on our emergency funds then surely the journey will be a risky move and we don’t advise any newbie investors investing in bitcoin should make such approach.
If availability of discretionary income is in check then we can start our investment journey without no doubts and even start as soon as possible but making availability of our emergency funds is what we should focus on next without wasting much time and it shouldn’t take long because we don’t know when we might face any emergency.

And it a smart idea to build our emergency funds and our holding together, as a bitcoin investor we showing neglect making availability of our back up funds before starting our investment because it will save us from alot of unforeseen risks.

Whether someone should decide to build emergency funds alongside their bitcoin investment is totally dependent on their overall financial predicament; i don’t think there’s a one size fits all approach for it because some people can comfortably build their emergency funds while stacking up bitcoin while some other people may need to focus on a cash cushion first.
And certainly, emergency fund isn’t only valuable when it is complete because even a modest cash buffer can still help to reduce the chances of a person having to sell their bitcoin to solve minor issues. Maybe you should be focusing on building a financial setup that will continue to allow you to keep accumulating bitcoin consistently instead of interrupting your plan every time an unexpected expense show up.

[JayJuanGee]

[edited out]

I actually get your point cleared and I agree with what you have said here, this is where some of us are getting it wrong when we talk about emergency funds when we talk about emergency funds, building your investment and emergency fund simultaneously is actually the best way to do it is just let for you to break your discretionnary income into two, for instance 80% for your bitcoin investment or 85% and use 15% or 20% for your emergency funds, they have to make sure that their investment is bigger than their emergency funds because if you set your target weekly, it may be they will be almost 2 - 3 weeks without any emergency arises and this percentage will continue to accumulate which is why you put more focus on your bitcoin accumulation because it have to be consistently to have huge accumulation.

Your discretionary funds have 3 possibilities (not 2)

You figure out how much of your discretionary funds you want to use to 1) invest, 2) save (back up funds) and/or 3) discretionarily consume.

Even if you choose to discretionarily consume 0% of your discretionary funds, you should not be ignoring the category, and in reality almost all of us discretionarily consume to some degree, so even if you might get away without discretionarily consuming for several weeks, it is something that would not be healthy to continue trying to live in circumstances that you would be keeping your discretionary consumption at zero %. In other words, ongoing 0% discretionary consumption is not realistically sustainable for an overwhelming majority of normal peeps.

[edited out]

You are right, because problem don't show signs before coming. Before you know it is all over you and in a situations were you didn't make neccesary arrangement for your emergency funds to take care of it when it comes, your investment holdings becomes what you will use in solving or puting things in order which is very unsafe for our investment. However, it's more better preparing ahead of time than starting preparation when you already in the mess. So the point am trying to make is that immediately you get started with your investment journey using your discretionary funds, no need wasting time in building up your emergency funds, immediately start building up every neccesary support funds alongside your investment plan so as to stay prepared in case of emergency arises.

There is no reason to try to be all dramatic about various emergency situations, since almost anyone needs to be paying attention to how cashflows are happening, and there can any time that for some reason income goes down and basic expenses go up, and if the situation of low income and/or high basic expenses lasts for any kind of extended period of time, then whatever back up funds are available are going to shrink in size which then may well end up causing a total depletion of back up funds and then the only funds that are available is the bitcoin that was meant to be protected and grown for 4-10 years or longer, and then after a certain shorter amount of time, the bitcoin investor ends up selling some or all of his bitcoin at a time that was not of his own choosing, which surely becomes problematic, whether bitcoin prices might be high, low or sideways, the fact that the guy ended up not having a choice meant that he had messed up and/or he failed to prepare himself adequately for cashflow happenings that ended up playing out.

[The Founding Titan]

Investing into bitcoin is not guaranteed to be successful.
Also, if a person starts investing with bitcoin with absolutely no backup funds, then that would be problematic, so there is a need to have some back up funds when starting.

Frequently active forum guys (including myself) will suggest building back up funds and the bitcoin holdings at the same time, and so we should not either negate back up funds or to suggest that they are not needed.
Yet, there is a certain importance in getting started from where-ever the newbie bitcoiner is at, especially if he knows that he has discretionary funds.

If a newbie bitcoiner is feeling a bit lost about how to get started and he is not even sure about his abilities to manage his cashflows, and he might even be confused about the status of his cashflows, yet if he is at least able to figure out that he has discretionary funds, then he can get started and maybe even using 1/3 of his discretionary funds to buy bitcoin, 1/3 to put into his back up funds and 1/3 for discretionary consumption.. and if he is not even confident about the amount that he is putting into bitcoin based on his lack of comfort and even his lack of knowledge, then he could purposefully reduce the amount that he puts into bitcoin in or that he can simultaneously spend time improving his knowledge of bitcoin and also getting more comfortable with the strengthening of his cashflow management.

You are right going into bitcoin investment without having plans on our emergency funds then surely the journey will be a risky move and we don’t advise any newbie investors investing in bitcoin should make such approach.
If availability of discretionary income is in check then we can start our investment journey without no doubts and even start as soon as possible but making availability of our emergency funds is what we should focus on next without wasting much time and it shouldn’t take long because we don’t know when we might face any emergency.

And it a smart idea to build our emergency funds and our holding together, as a bitcoin investor we showing neglect making availability of our back up funds before starting our investment because it will save us from alot of unforeseen risks.

I did not say anything about focusing on emergency funds "next."  In fact I suggested getting the fuck started buying bitcoin and building back up funds simultaneously as getting started.  Surely guys can exercise their judgement in terms if they think that they might need to give more focus on bitcoin or more focus on their back up funds, yet there is no universal rule regarding how to do it, even though if a guy ends up screwing things up because he ended up focusing too much on one versus the other (bitcoin versus back up funds or vice versa), then he has to pay the costs of any mistakes that he might end up making, so I would think that guys don't want to end up suffering stress due to mistakes that they made that they could have had avoided.

I do agree with you but you missed my punch lines. What I meant about focusing on back up funds after making availability of our discretionary income doesn’t mean we shouldn’t start our journey of investment or maybe procrastinate our investment all because of back up funds Nope but what I was insinuating was that if we didn’t get to start our journey with back up funds then we shouldn’t hesitate to look for other means to make availability of our back up funds but our investment should start right away not until we make availability of back up funds.

Waiting for back up funds is just procrastination and that not what a good investor will apply to their journey, start to buy as soon as possible when the discretionary funds is in place.

Buying bitcoin isn't exactly expensive unless you want to buy alot at one and anyone in that situation can't say they won't be able to save up for their backup funds when they are busy buying what can be considered alot of bitcoin, both our investment and our backup funds come from our discretionary income so we don't have to look for other means to make our backup funds available because that will mean having to go outside of our discretionary income, if you are unsure of what to do then you can split your discretionary income 3 ways, 1 for buying bitcoin, 1 for your backup funds and the last for your discretionary spendings.

[Different patterns]

I myself put this reserve fund and emergency fund in the needs category, so when I receive my income there I divide it for daily needs, for savings, and for emergency funds and then the rest I allocate to bitcoin with a minimum amount that I have set myself.

It seems confusing to use the term savings in this context since savings is reserve funds, and so there are two kinds of back up funds which are emergency funds and reserve funds.  You seem to be putting back up funds in the same category as basic expenses, and they are not.  Basic expenses are those that have to be taken care of that month and they cannot be deferred.  After you account for basic expenses, then you have discretionary funds and from the discretionary fund you can decide how much prioritiy you are going to give to back up funds, investing and/or discretionary consumption. 

You make a valid point, it’s a good idea and also helpful to make or put a difference between the two, which are backup funds and basic expenses, backup funds or we call them emergency funds, serve as many different purpose because they always meant to prepare for unexpected event, not current obligations.while basic expenses are those essential costs that must be paid every month and normally cannot be postponed. After clear all the essential monthly expenses. the left funds become discretionary income, from there each person has to decide what to do or how to allocate it,Maintaining backup funds or personal spending, the priority won’t be same for everyone. The most important point is that the priorities are depend on everyone financial situation and long term goals.

[Obulis]

while the lump sum requires you buying in a very large quantity, I mean with a big amount, not minding wether we are in the up or down season.

Lump sum doesn't really mean that you must use a big amount of money to buy at once. You can even small amount of money to lump sum. You are right that lump sum means buying right away with the money disregard the price of bitcoin at that moment. It's called lump sum because the money doesn't come often but once in a while.

For instance, if you are given funds as gifts in an occasion or at work to motivate you. You can use that money to lump sum immediately, if you like or share it into two parts and lump sum with one part right away. While, you use the other part to either add to your DCA weekly amount or keep it to buy at the dip that may come or not. It all depends on the individual how he wants to use his lump sum to increase his bitcoin portfolio.

For the best decision, it must be based on a personal decision with a careful plan, what you explained is quite able to present how the steps must be taken between the steps in the purchase of bitcoin, whether it is a Lumpsum or a lump sum purchase, when getting gift money or there is unused money and especially the opportunity when a sharp price drop is happening Lump sum will be very useful to take more bitcoin from the market one of them like now.
 
Everything goes back to each of our preferences in the use of money and the way we think is good to take, because we cannot feel someone's situation and conditions, but this lump sum purchase when the decline is the right choice.

Buying bitcoin with a large amount when the price dips is not lump sum.  It is buying the dip.  There are different dynamics with lump sum as compared with buying the dip, and sure, you can choose to use some of your money for buying the dip, yet there are trade offs when you choose to defer based on hopeful price drops that may or may not end up happening.

Of course, so many guys get excited when they are able to buy more bitcoin than they would have had otherwise been able to buy based on the bitcoin price dropping, yet when they are ongoingly deploying that kind of a strategy, it might not really help them, especially if they are still relatively early in their bitcoin accumulation journey in which they might be better off to focus more on ongoing buying of bitcoin and even figuring out ways to increase their discretionary funds so that they can ongoingly buy bitcoin and not be fucking around so much with waiting for dips and/or thinking about dips that may or may not end up happening.

Without thinking twice the fucking waiting for Bitcoin to dip before buying is the major difference between waiting for the dip and lump sum. Just like DCA strategy doesn't care about the time and price, ordinarily lump sum doesn't care also. As long as the cash is available to accumulate Bitcoin you just lump sum. The other way round, waiting for the dip is keeping aside certain amount of dollars whether big or small in hope of Bitcoin dropping before buying which may or may not happen. Lump sum doesn't fucking wait for a dip to talk of perfect dip.

[Fash33]

[edited out]

I actually get your point cleared and I agree with what you have said here, this is where some of us are getting it wrong when we talk about emergency funds when we talk about emergency funds, building your investment and emergency fund simultaneously is actually the best way to do it is just let for you to break your discretionnary income into two, for instance 80% for your bitcoin investment or 85% and use 15% or 20% for your emergency funds, they have to make sure that their investment is bigger than their emergency funds because if you set your target weekly, it may be they will be almost 2 - 3 weeks without any emergency arises and this percentage will continue to accumulate which is why you put more focus on your bitcoin accumulation because it have to be consistently to have huge accumulation.

Your discretionary funds have 3 possibilities (not 2)

You figure out how much of your discretionary funds you want to use to 1) invest, 2) save (back up funds) and/or 3) discretionarily consume.

Even if you choose to discretionarily consume 0% of your discretionary funds, you should not be ignoring the category, and in reality almost all of us discretionarily consume to some degree, so even if you might get away without discretionarily consuming for several weeks, it is something that would not be healthy to continue trying to live in circumstances that you would be keeping your discretionary consumption at zero %. In other words, ongoing 0% discretionary consumption is not realistically sustainable for an overwhelming majority of normal peeps.

[edited out]

You are right, because problem don't show signs before coming. Before you know it is all over you and in a situations were you didn't make neccesary arrangement for your emergency funds to take care of it when it comes, your investment holdings becomes what you will use in solving or puting things in order which is very unsafe for our investment. However, it's more better preparing ahead of time than starting preparation when you already in the mess. So the point am trying to make is that immediately you get started with your investment journey using your discretionary funds, no need wasting time in building up your emergency funds, immediately start building up every neccesary support funds alongside your investment plan so as to stay prepared in case of emergency arises.

There is no reason to try to be all dramatic about various emergency situations, since almost anyone needs to be paying attention to how cashflows are happening, and there can any time that for some reason income goes down and basic expenses go up, and if the situation of low income and/or high basic expenses lasts for any kind of extended period of time, then whatever back up funds are available are going to shrink in size which then may well end up causing a total depletion of back up funds and then the only funds that are available is the bitcoin that was meant to be protected and grown for 4-10 years or longer, and then after a certain shorter amount of time, the bitcoin investor ends up selling some or all of his bitcoin at a time that was not of his own choosing, which surely becomes problematic, whether bitcoin prices might be high, low or sideways, the fact that the guy ended up not having a choice meant that he had messed up and/or he failed to prepare himself adequately for cashflow happenings that ended up playing out.

You make a fantastic point, Some folks only focus so much on accumulating bitcoin, which is not a bad thing , that they underestimate the importance of managing their cash flow, and failing of bitcoin price is not the risk sometimes, the biggest risk can be a long period of higher living expenses or reduced of income, without enough emergency or backup funds, at a time investor may end up be forced to sell bitcoin to cover basic needs. That is why maintaining adequate backup funds is always part of good long term bitcoin investment strategy, those funds gives investors flexibility to handle unexpected financial challenges without interrupts the investment plan. The goal should always be to  put yourself in a position where you choose when to sell your bitcoin, than having circumstances make that decision for you.

[Princess Leah]

Buying bitcoin with a large amount when the price dips is not lump sum.  It is buying the dip.  There are different dynamics with lump sum as compared with buying the dip, and sure, you can choose to use some of your money for buying the dip, yet there are trade offs when you choose to defer based on hopeful price drops that may or may not end up happening.

Of course, so many guys get excited when they are able to buy more bitcoin than they would have had otherwise been able to buy based on the bitcoin price dropping, yet when they are ongoingly deploying that kind of a strategy, it might not really help them, especially if they are still relatively early in their bitcoin accumulation journey in which they might be better off to focus more on ongoing buying of bitcoin and even figuring out ways to increase their discretionary funds so that they can ongoingly buy bitcoin and not be fucking around so much with waiting for dips and/or thinking about dips that may or may not end up happening.

Without thinking twice the fucking waiting for Bitcoin to dip before buying is the major difference between waiting for the dip and lump sum. Just like DCA strategy doesn't care about the time and price, ordinarily lump sum doesn't care also. As long as the cash is available to accumulate Bitcoin you just lump sum. The other way round, waiting for the dip is keeping aside certain amount of dollars whether big or small in hope of Bitcoin dropping before buying which may or may not happen. Lump sum doesn't fucking wait for a dip to talk of perfect dip.

Imagine a newbie who bought when Bitcoin dipped to $80k then few months later Bitcoin dipped to $60k such person would likely panic which is why instead of buying only during dips a new especially should buy consistently which would help ease emotions that might trigger panic, buying during dips is not for people who ain't used to the market.

 That's why the DCA is mostly appreciated than other strategies, it helps kill the fear of lose when volatility downtrends occurs and people can still buy dips while doing the DCA so instead of just buying during dips, they can still be consistent with buying and take advantage of dips that would occur during that period.

[Charcol]

Investing into bitcoin is not guaranteed to be successful.
Also, if a person starts investing with bitcoin with absolutely no backup funds, then that would be problematic, so there is a need to have some back up funds when starting.

Frequently active forum guys (including myself) will suggest building back up funds and the bitcoin holdings at the same time, and so we should not either negate back up funds or to suggest that they are not needed.
Yet, there is a certain importance in getting started from where-ever the newbie bitcoiner is at, especially if he knows that he has discretionary funds.

If a newbie bitcoiner is feeling a bit lost about how to get started and he is not even sure about his abilities to manage his cashflows, and he might even be confused about the status of his cashflows, yet if he is at least able to figure out that he has discretionary funds, then he can get started and maybe even using 1/3 of his discretionary funds to buy bitcoin, 1/3 to put into his back up funds and 1/3 for discretionary consumption.. and if he is not even confident about the amount that he is putting into bitcoin based on his lack of comfort and even his lack of knowledge, then he could purposefully reduce the amount that he puts into bitcoin in or that he can simultaneously spend time improving his knowledge of bitcoin and also getting more comfortable with the strengthening of his cashflow management.

You are right going into bitcoin investment without having plans on our emergency funds then surely the journey will be a risky move and we don’t advise any newbie investors investing in bitcoin should make such approach.
If availability of discretionary income is in check then we can start our investment journey without no doubts and even start as soon as possible but making availability of our emergency funds is what we should focus on next without wasting much time and it shouldn’t take long because we don’t know when we might face any emergency.

And it a smart idea to build our emergency funds and our holding together, as a bitcoin investor we showing neglect making availability of our back up funds before starting our investment because it will save us from alot of unforeseen risks.

I did not say anything about focusing on emergency funds "next."  In fact I suggested getting the fuck started buying bitcoin and building back up funds simultaneously as getting started.  Surely guys can exercise their judgement in terms if they think that they might need to give more focus on bitcoin or more focus on their back up funds, yet there is no universal rule regarding how to do it, even though if a guy ends up screwing things up because he ended up focusing too much on one versus the other (bitcoin versus back up funds or vice versa), then he has to pay the costs of any mistakes that he might end up making, so I would think that guys don't want to end up suffering stress due to mistakes that they made that they could have had avoided.

I actually get your point cleared and I agree with what you have said here, this is where some of us are getting it wrong when we talk about emergency funds when we talk about emergency funds, building your investment and emergency fund simultaneously is actually the best way to do it is just let for you to break your discretionnary income into two, for instance 80% for your bitcoin investment or 85% and use 15% or 20% for your emergency funds, they have to make sure that their investment is bigger than their emergency funds because if you set your target weekly, it may be they will be almost 2 - 3 weeks without any emergency arises and this percentage will continue to accumulate which is why you put more focus on your bitcoin accumulation because it have to be consistently to have huge accumulation.

Your discretionary income is not limited to just two parts, it can go in all three directions: investments, backups, discretionary consumption. And you are trying to put a specific ratio into the rule, which may be completely useless. The percentage of what an investor will put in Bitcoin and what percentage in an emergency fund depends on his income, expenses, responsibilities, job stability, previous savings, ability to withstand stress and his real situation. It is not based on a formula given by someone.

Another thing is that it is probably not right to make any obligation or rule that the part of investing in Bitcoin has to be larger than the emergency fund. Because there are many new investors here, if their financial situation is very weak, then their emergency fund may be more important in the beginning.

But I agree with you that investing and building an emergency fund at the same time is probably a good way.

[samadam007]

As long as the cash is available to accumulate Bitcoin you just lump sum. The other way round, waiting for the dip is keeping aside certain amount of dollars whether big or small in hope of Bitcoin dropping before buying which may or may not happen. Lump sum doesn't fucking wait for a dip to talk of perfect dip.

An investor having available cash does not necessarily mean he has to accumulate with lump sum. Some might choose another strategy that is base on their own plan, cash flow or risk tolerance.

The real problem is that waiting for dip can become a habit and slow down accumulation process cos if the dips don't come or if the market go higher first…..that why many long term BTC investors focus on consistent accunulation first and treat dip buying as something secondary, not the foundation of their strategy

[Sobz]

Your point is cleared and understandable, a lot of people get it wrong when they want to start their bitcoin investment, some people keep saying that emergency funds must be ready, which I disagree with them because emergency fund can be built alongside your investment. You can build the two simultaneously from your discretionary income. There's no any problem if you split your discretionary income like 80 - 20, 80% will go for your investment while 20 will stand for your emergency funds. 

In this case, regarding the emergency fund, I don't think there is a particular formula for going about it. I think it depends on the individual. If you believe that you must have an emergency fund before investing in Bitcoin, it is not a bad idea. If you also think you can build an emergency fund while investing in Bitcoin, that is also not a bad approach. The most important thing is having an understanding of the need for an emergency fund; this is even better. The main thing is to get started with investing in Bitcoin, and not having an emergency fund shouldn't be a reason to wait. As long as one understands the role of an emergency fund, it will definitely be part of the plan while investing in Bitcoin.

[Gragebox]

Your point is cleared and understandable, a lot of people get it wrong when they want to start their bitcoin investment, some people keep saying that emergency funds must be ready, which I disagree with them because emergency fund can be built alongside your investment. You can build the two simultaneously from your discretionary income. There's no any problem if you split your discretionary income like 80 - 20, 80% will go for your investment while 20 will stand for your emergency funds. 

In this case, regarding the emergency fund, I don't think there is a particular formula for going about it. I think it depends on the individual. If you believe that you must have an emergency fund before investing in Bitcoin, it is not a bad idea. If you also think you can build an emergency fund while investing in Bitcoin, that is also not a bad approach. The most important thing is having an understanding of the need for an emergency fund; this is even better. The main thing is to get started with investing in Bitcoin, and not having an emergency fund shouldn't be a reason to wait. As long as one understands the role of an emergency fund, it will definitely be part of the plan while investing in Bitcoin.

I completely agree that there isn't one universal rule about the need to create an emergency fund before starting to invest in Bitcoin. Each person has his or her own financial situation, income, and responsibility. As for me, I believe it is quite okay to begin investing in such assets with a small sum of money while simultaneously creating an emergency fund. Waiting for when all the finances become absolutely perfect will result in postponing the investment process for many years ahead. But it should be noted that it is necessary not to neglect the need for funds which could be used to cover any unforeseen expenses because otherwise, a person would be obliged to get rid of Bitcoin in unfavorable market conditions.

[Merit.s]

In this case, regarding the emergency fund, I don't think there is a particular formula for going about it. I think it depends on the individual. If you believe that you must have an emergency fund before investing in Bitcoin. it is not a bad idea . If you also think you can build an emergency fund while investing in Bitcoin, that is also not a bad approach. The most important thing is having an understanding of the need for an emergency fund; this is even better. The main thing is to get started with investing in Bitcoin, and not having an emergency fund shouldn't be a reason to wait. As long as one understands the role of an emergency fund, it will definitely be part of the plan while investing in Bitcoin.

I think is best to be a low coiner as soon as you decide to start your bitcoin investment with your discretionary income than staying more time as a no coiner because the price of bitcoin increases overtime and time waits for no man which is why you should use your time wisely to invest quick and grow your bitcoin portfolio overtime.

If you want to start waiting till you build your emergency funds up to three months of your monthly expenses, you will waste a lot of time and miss enough opportunities in the market that you should have used to build your bitcoin stash to a good size. This is why you should start buying bitcoin immediately, you have figured out your discretionary income as a brand new investor and build your emergency funds simultaneously with your bitcoin investment.

It takes an investor with low discretionary income a year or more to be his emergency funds of at least three months of his monthly expenses. You can share your discretionary income into three equal parts. The first 33.3% for your regular weekly DCA, the second 33.3% for building your emergency funds and the last 33.3% for your discretionary income. It's good to strike a balance between your bitcoin investment and your emergency funds at the beginning of your bitcoin investment in order to avoid mistake that will lead to delay in increasing your bitcoin stash overtime.