JJG’s Outline of Bitcoin Investment Ideas

[cozytrade]

And there people that even if you advice them to have discretionary funds and emergency funds they won't take it seriously but with time they would know how important it is and that way people will not take chances next time and that is why some people will always tell you that experience is the best teacher and it is true when you tell them they don't believe then they will learn the hard way after selling what they own.

I don’t know why people are getting this wrong, it’s not important to have emergency funds before starting Bitcoin investments but a lots are still never getting the facts about it. Bitcoin is a great asset that each an everyone can start with any amounts of money, not until he/she wait to get the discretionary fund or emergency fund before they can invest, because if that should be the case I’m sure that a lots will never be able to invest in the Bitcoin; we all know that learn and getting experience on the investments works is good, but not that it’s important to seek for emergency funds first we should stop confusing people that have interest to invest especially newbie’s.

I believe that's a valid bit of advice on both counts. Yes, anyone can invest in Bitcoin with a little bit, but having an emergency fund of some size might cause undue delays. It is still, however, sensible risk-management strategy to have some sort of cushion of finances. It's main goal isn't to make someone eligible to invest. But to make sure they don't have to sell Bitcoin in times of emergency. New investors should be advised to invest wisely. Build their portfolio over time and avoid dabbling in investing in Bitcoin.

[Tetu100]

Bitcoin investment is a suitable income and should be maintained by Bitcoin no matter what the situation is. However, it should not be used for fixed amounts because you may not always have enough money, while the amount of money you have should be invested as it is, it is better to invest in Bitcoin for your family by leaving extra expenses.
This will reduce the likelihood of your Bitcoin investment facing danger in the future, and you can use this opportunity to create an opportunity to hold Bitcoin investment for the long term.

Bro, to be very sincern with you what you wrote down here is absolutely not making sense I'm sorry about that, but I just have to be very sincere with you. I'm afraid because if you continue writting like this couple with your rank in the forum their will be a problem because you rank and everything about your account will be question. We are actually here for each other and I'm urging you to work on your writting ability, make more of research on things you didn't understand for a better understanding. I like being straight to someone, because even a newbie can't write this. However, you chances of improvement lyes on how you take this, think about it.

[Queen uloma]

Bitcoin investment is a suitable income and should be maintained by Bitcoin no matter what the situation is. However, it should not be used for fixed amounts because you may not always have enough money, while the amount of money you have should be invested as it is, it is better to invest in Bitcoin for your family by leaving extra expenses.
This will reduce the likelihood of your Bitcoin investment facing danger in the future, and you can use this opportunity to create an opportunity to hold Bitcoin investment for the long term.

Bro, to be very sincern with you what you wrote down here is absolutely not making sense I'm sorry about that, but I just have to be very sincere with you. I'm afraid because if you continue writting like this couple with your rank in the forum their will be a problem because you rank and everything about your account will be question. We are actually here for each other and I'm urging you to work on your writting ability, make more of research on things you didn't understand for a better understanding. I like being straight to someone, because even a newbie can't write this. However, you chances of improvement lyes on how you take this, think about it.

You’re right, and I understand everything you’re saying, sometimes a person needs honest correction in order to improve. But the manner in which the person was corrected matters alot. If criticism is too harsh, it can make someone lose morale instead of encouraging them to do better. If someone’s writing is not clear enough or it does not make sense, the best thing is to point out where the problem comes from and advise them to read more, do more research, and practice how  to express their ideas.

Everyone  started from somewhere, and even good writers today didn’t just wake up and become an expert suddenly. Constructive criticism is better than insults. If we can really be for one another as a community it will be very cool, let us correct people with respect, while we are still being truthful.

[Gost ms]

Because from the beginning the emergency fund must still exist and we cannot rule it out. We must keep preparing an emergency fund for at least a few months of your life because we do not know what will happen in the future which makes this have to keep minimizing the risk not only about your investment but your life in the future.

Investing in Bitcoin is very important and more important than that is an emergency fund, because the emergency fund is the protection of your Bitcoin investment. However, this emergency fund is not very important. Those who give more importance to Bitcoin investment may forget about the importance of the wallet. Everything is more important, but among them, collecting the keys to the wallet is the most important because your future depends on your roof.

Are you contradicting yourself? Because one moment you say that emergency fund is very important and the next moment you say that emergency fund is not that important. Emergency fund is definitely important, but more important than emergency fund is to start investing. Waiting to start investing for emergency fund is not the right decision at all. If a person has a source of discretionary income, then he can start investing and can invest and create emergency fund in parallel.

But yes, investing with zero emergency fund is very risky, so while starting investment it is better to keep the emergency fund amount at a minimum level but it is not mandatory. If a person has zero emergency fund amount, then if he wants to buy aggressively, then his risk will be much higher.

When a person invests, he can divide his discretionary income into three levels such as emergency fund, investment and extra expenses. In this way, if a person is able to divide his fund, then he will be able to keep money for investment and emergency fund and extra expenses. But how much money to keep in which part is completely his personal decision

[Tmoonz]

People should know that our discretionary income isn't meant only for buying bitcoin, people who tell themselves that buying bitcoin is the only purpose of the discretionary income are the ones who don't have a problem with saying that they can use their emergency fund to buy bitcoin because as far as they are concerned anything that has to do with their discretionary income is about bitcoin investment, they should know that aside from bitcoin investment there are other things you can use the discretionary income for.

discretionary income of course we can use for whatever we can afford, and for people who are wise in managing their finances they will use this discretionary income well as dividing it to be saved whether it is a reserve fund or emergency fund or even investment. A person who already has a fixed income certainly has discretionary income and is strongly advised to be able to use this discretionary income wisely.

In addition, we ourselves have other needs that must be considered as well as basic needs, paying bills or others. And it is true that you said this discretionary income is not only aimed at buying bitcoins. But the point is that it should be used as wisely as possible so that it does not become a wasted expense.

This is not actually true having a fixed income doesn't certainly make you to have a discretionary income, there are those who has a fixed income but it is not enough to take care of their basic needs, I guess the fixed income you are talking about is having a stable source of income and if that be the case you are not actually on the right track with what you said about having a fixed income. However, discretionary income is what we need to buy bitcoin and whenever it is being figured out buying Bitcoin is a good option instead of spending it on things that can not add value to you.

[Rockstarguy]

Bitcoin investment is a suitable income and should be maintained by Bitcoin no matter what the situation is. However, it should not be used for fixed amounts because you may not always have enough money, while the amount of money you have should be invested as it is, it is better to invest in Bitcoin for your family by leaving extra expenses.
This will reduce the likelihood of your Bitcoin investment facing danger in the future, and you can use this opportunity to create an opportunity to hold Bitcoin investment for the long term.

Bro, to be very sincern with you what you wrote down here is absolutely not making sense I'm sorry about that, but I just have to be very sincere with you. I'm afraid because if you continue writting like this couple with your rank in the forum their will be a problem because you rank and everything about your account will be question. We are actually here for each other and I'm urging you to work on your writting ability, make more of research on things you didn't understand for a better understanding. I like being straight to someone, because even a newbie can't write this. However, you chances of improvement lyes on how you take this, think about it.

It is unfortunate some people don't even do their research before coming here; they just express themselves based on their understanding and what they think so confidently. There are so many people from whom they can learn, and they should also do their research to confirm if they are truly gaining the right knowledge. This is a place that encourages learning, and it would make sense and be interesting if people made an extra effort to ensure they are providing the right information and expressing it well in writing too. Some people have refused to learn but choose to pursue their own interests.

[gracreavix]

Bitcoin investment is a suitable income and should be maintained by Bitcoin no matter what the situation is. However, it should not be used for fixed amounts because you may not always have enough money, while the amount of money you have should be invested as it is, it is better to invest in Bitcoin for your family by leaving extra expenses.
This will reduce the likelihood of your Bitcoin investment facing danger in the future, and you can use this opportunity to create an opportunity to hold Bitcoin investment for the long term.

Bro, to be very sincern with you what you wrote down here is absolutely not making sense I'm sorry about that, but I just have to be very sincere with you. I'm afraid because if you continue writting like this couple with your rank in the forum their will be a problem because you rank and everything about your account will be question. We are actually here for each other and I'm urging you to work on your writting ability, make more of research on things you didn't understand for a better understanding. I like being straight to someone, because even a newbie can't write this. However, you chances of improvement lyes on how you take this, think about it.

You’re right, and I understand everything you’re saying, sometimes a person needs honest correction in order to improve. But the manner in which the person was corrected matters alot. If criticism is too harsh, it can make someone lose morale instead of encouraging them to do better. If someone’s writing is not clear enough or it does not make sense, the best thing is to point out where the problem comes from and advise them to read more, do more research, and practice how  to express their ideas.

Everyone  started from somewhere, and even good writers today didn’t just wake up and become an expert suddenly. Constructive criticism is better than insults. If we can really be for one another as a community it will be very cool, let us correct people with respect, while we are still being truthful.

I concur with you. The manner at which someone is corrected matters. He or she might take the correction or not. Harsh criticism makes someone not to improve but stair up anger and resentment in them. But a calm and well constructive criticism aimed at correction will make someone take correction.

But we can sell address the issue. Poor quality post don't just affect the person who dropped it. But future newbies who will read it. Because Bitcointalk forum is an archive. But as one used soft criticism to address the issue is ok. But the person in question becomes the problem when the mistake it repeated more often.

[ASloveapg]

And there people that even if you advice them to have discretionary funds and emergency funds they won't take it seriously but with time they would know how important it is and that way people will not take chances next time and that is why some people will always tell you that experience is the best teacher and it is true when you tell them they don't believe then they will learn the hard way after selling what they own.

I don’t know why people are getting this wrong, it’s not important to have emergency funds before starting Bitcoin investments but a lots are still never getting the facts about it. Bitcoin is a great asset that each an everyone can start with any amounts of money, not until he/she wait to get the discretionary fund or emergency fund before they can invest, because if that should be the case I’m sure that a lots will never be able to invest in the Bitcoin; we all know that learn and getting experience on the investments works is good, but not that it’s important to seek for emergency funds first we should stop confusing people that have interest to invest especially newbie’s.

You are right, there is no obligation to create a complete emergency fund and then invest in starting an investment. An investor can create an emergency fund after starting an investment or along with starting an investment. However, he can consider for himself how long an investor can live with an empty fund. Everyone's lifestyle is different, so he can decide for himself by considering who has what expenses and when and what he may need. However, if an investor thinks that he is unlikely to have an emergency need after starting an investment and that he does not have an emergency situation, then he can start without creating a fund. However, I think that every investor needs an emergency fund and should not stay with an empty fund for a long time after starting. An emergency fund should also be created along with investing, even if it is a very small amount. Because this is what will protect our investment in unexpected situations.

[Muba20]

Investing in Bitcoin is very important and more important than that is an emergency fund, because the emergency fund is the protection of your Bitcoin investment. However,this emergency fund is not very important. Those who give more importance to Bitcoin investment may forget about the importance of the wallet. Everything is more important, but among them, collecting the keys to the wallet is the most important because your future depends on your roof.

And about your bolded sentence, you were on the right track about emergency funds being as a protection to our bitcoin investments but you still did said it isn’t important, which you are just making confusion.
Emergency funds is important but the main pillar of this journey is discretionary income that is emergency fund is important but not as much as discretionary income.

You are creating another importance competition by correcting the wrong importance of one. @Popkon6's statement was certainly misleading, but isn't calling an emergency fund less important than an additional income creating a new unnecessary comparison?

Both emergency funds and additional income or discretionary income are important but in their own right. The job of an emergency fund is to protect your investments in bad situations. And discretionary income is the source from which you can build an emergency fund and invest without stress. It can be said that discretionary income is the fuel for saving and the shield for saving emergency funds. Both can be important in their own right. So the wrong importance competition here is meaningless.

[sotelorene]

People should know that our discretionary income isn't meant only for buying bitcoin, people who tell themselves that buying bitcoin is the only purpose of the discretionary income are the ones who don't have a problem with saying that they can use their emergency fund to buy bitcoin because as far as they are concerned anything that has to do with their discretionary income is about bitcoin investment, they should know that aside from bitcoin investment there are other things you can use the discretionary income for.

discretionary income of course we can use for whatever we can afford, and for people who are wise in managing their finances they will use this discretionary income well as dividing it to be saved whether it is a reserve fund or emergency fund or even investment. A person who already has a fixed income certainly has discretionary income and is strongly advised to be able to use this discretionary income wisely.

In addition, we ourselves have other needs that must be considered as well as basic needs, paying bills or others. And it is true that you said this discretionary income is not only aimed at buying bitcoins. But the point is that it should be used as wisely as possible so that it does not become a wasted expense.

This is not actually true having a fixed income doesn't certainly make you to have a discretionary income, there are those who has a fixed income but it is not enough to take care of their basic needs, I guess the fixed income you are talking about is having a stable source of income and if that be the case you are not actually on the right track with what you said about having a fixed income. However, discretionary income is what we need to buy bitcoin and whenever it is being figured out buying Bitcoin is a good option instead of spending it on things that can not add value to you.

Can source of income be fixed? Well I don't really think if that is possible because income always vary with time and there are lots of factors that can cause that though it can be for a given period of time but it can not be permanent because it is either you are growing or you are not. However, even if someone has a fixed source of income there is no guarantee they will have a discrestionary income because expenses can sometimes chop all the money or almost all.

[Joeboy]

~snip~

Do you have to be working first to get an income? What is being paid by the parents can be called an income in this situation and if that payment isn't coming in then the person can't generate discretionary income.

Fyi

I understand your point though, you are classifying income as payment for the place of work whether it's private or you are working for someone else which also makes sense but that's not my point, my point is that in order for you to have money left behind after settling your essential needs you will need to get money first to settle those needs, if that money isn't coming in at all then you wouldn't have anything left behind.

You are still getting this wrong. There must not always be an inflow before folks can generate their discretionary income.. Surely majority of folks generate their discretionary income from a source of income, but then again, there are some folks who already have savings or inheritance that was passed to them from generations past, that too could count as a discretionary income even though there isn't necessarily an inflow of cash coming in.. As long as your expenses has been accounted for whatever money left is your Discretionary income regardless of whether there is an inflow or not...

[Hardyrobust]

Saying only those with stable income can sustain an investment for a long term can be misleading especially for those  with irregular income who wants to start accumulating bitcoin.For me I don't think  having a regular salary is the only way to accumulate Bitcoin consistently. What matters most  is being able to figure out your discretionary income whenever money comes in.

For example, someone who is self employed, runs a small business or a freelancer may not earn the same amount every month, but can still be able to set aside a portion of what  he earn every month for DCA. Though  the amount may change from month to month, but the habit of accumulating  remain the same.

For me consistency is not built only  on having a fixed monthly salary but on good money  management. The key is always to invest only what is left after taking care of your necessary needs.

That is the underlining fact and the most important thing that must be first put into consideration before any other thing follows. Thus we don't have to be so rich or to be as stable in our finance as expected but what really count is how we can be able to utilize the like we had by figuring out our discretionary funds which is I beleive is the ultimate as long as bitcoin investment is concern.

Starting to buy Bitcoin without discretionary income is actually a problem in the future, and it's probably not a good idea. But when you look at this as the ultimate goal, it leaves out a few important questions. For example, how regular is this money and how long can you hold on to it after investing?

Maybe you have $200 in discretionary income this month, but if your income drops next month, and you have to invest $100 and sell Bitcoin when you need it, then technically it's part of your discretionary income, but the plan wasn't sustainable.

buying bitcoin without discretionary income is trading and not investing in bitcoin because when the need for the money arise the person will have no other options but to sell the bitcoin in other to be able to satisfy the need. More used for investing in bitcoin is not money that will be needed for a short time because the money used for buying bitcoin will lock out for years hence there is need to use discretionary income for buying bitcoin. This will enable a long term investor to be able to hold bitcoin for a long time without being push into selling it before the time they actually planned.

[Grease5000]

I don’t know why people are getting this wrong, it’s not important to have emergency funds before starting Bitcoin investments but a lots are still never getting the facts about it. Bitcoin is a great asset that each an everyone can start with any amounts of money, not until he/she wait to get the discretionary fund or emergency fund before they can invest, because if that should be the case I’m sure that a lots will never be able to invest in the Bitcoin; we all know that learn and getting experience on the investments works is good, but not that it’s important to seek for emergency funds first we should stop confusing people that have interest to invest especially newbie’s.

It's true that anyone can start investing in Bitcoin with a very small amount. Because  you don't need to be rich before  you start to buy bitcoin, However saying that an emergency fund is not important can mislead beginners. Because  if an unexpected expense comes up and you have no cash reserve, you may be forced to sell your Bitcoin at the wrong time, even if your long term plan was to hold.

It's not necessary I that one have to build an emergency first before they start buying bitcoin because it can be built  at the same time while also accumulating bitcoin by using some percentage of your discretionary income.

[Hardyrobust]

One point I would emphasize is that all stated above are interconnected. Using discretionary income becomes much easier when you have an emergency fund, and having both makes it easier to stick with a long-term holding strategy without being forced to sell during emergencies and difficult periods.

Because from the beginning the emergency fund must still exist and we cannot rule it out. We must keep preparing an emergency fund for at least a few months of your life because we do not know what will happen in the future which makes this have to keep minimizing the risk not only about your investment but your life in the future.

So when we have discretionary funds as much as possible you can divide it into several posts including for investment and emergency funds so that we can still buy bitcoin but on the other hand we have prepared ourselves when there are unexpected situations in our lives because we already have emergency funds to cover it.

So tell me, if one of us wants to invest now and doesn't have an emergency fund, will he wait for 1 year just to build an emergency fund?

Don't forget that building a full emergency fund can take up to 1-2 years. And wouldn't it be foolish to start chasing after things that he doesn't have yet?

In some cases, an emergency fund may already be in place. Because not only is it necessary to protect Bitcoin, but in real life, cash flow is also needed for sudden emergency expenses. But for those who don't have an emergency fund yet and want to start investing, we advise them to start as soon as they have discretionary income. After starting, they can decide for themselves. They can even invest and build an emergency fund at the same time with a portion of their discretionary income. This way, they can start without waiting and before they know it, they will have an emergency fund.

The separation given here between discretionary funds and emergency funds is inappropriate because emergency funds usually comes from discretionary funds but when separated as emergency funds the remaining funds still remains discretionary and from there Bitcoin investment funds can also be allocated say on a DCA strategy. Not having emergency funds available should not be a reason not to buy Bitcoin because gathering emergency funds can be gradual starting from anytime as much as discretionary funds is available some part can be allocated for emergency and the remaining used for buying Bitcoin. In cases like this the amount of Bitcoin to be bought probably on a DCA will be low compared to when there's certain amount of emergency funds already existing but there's no need waiting to heap emergency funds before starting to buy Bitcoin as long as there's discretionary funds available.

The source of money may be the same but the purpose of that money is not the same. Emergency funds come from our discretionary income but that is not the same as investable money.

Let me give you an example. Suppose I have $100 in discretionary income at the end of the month. Considering my financial situation, I set aside $50 for emergencies and bought Bitcoin with $50. Here, although the source of the two parts is the same, now their function is completely different. Now if I try to buy Bitcoin again with the emergency fund, the emergency fund will not be there.

The emergency funds is kept specifically for use in sorting out emergency situations and not to be used in buying bitcoin for investment. It is true that the emergency funds is gotten from the discretionary income but that doesn’t mean we should use the emergency funds to invest in bitcoin. Emergency situation can occur at any time so you don’t have to tend towards selling your bitcoin to sort the situation, you use your emergency funds to sort them out immediately.

People should know that our discretionary income isn't meant only for buying bitcoin, people who tell themselves that buying bitcoin is the only purpose of the discretionary income are the ones who don't have a problem with saying that they can use their emergency fund to buy bitcoin because as far as they are concerned anything that has to do with their discretionary income is about bitcoin investment, they should know that aside from bitcoin investment there are other things you can use the discretionary income for.

discretionary income isn't just for buying bitcoin rather the money can also be used for discretionary consumption. So it won't be a good idea for anyone that wants to buy bitcoin for them to used up all there discretionary income for doing this. Some percentage of discretionary income can be used for setting up reserves funds , other can either be use for discretionary consumption or for setting up an emergency funds. Anyone that is entertaining the idea that it is only for buying bitcoin that discretionary income can be used then the person is wrong.

[ASloveapg]

splitting discretionary income and emergency funds is the bedrock for any long-term play. get those two mixed up and u’ll be panic-selling when the market takes a dump, which is exactly how u break ur own framework. these aren't about hierarchy, they're just two insurance layers u need to keep running parallel. investing in btc should be about wealth preservation and growth, and the moment u’re forced to liquidate at a loss cuz u didn't have that cushion, ur whole strategy’s toast.

Many people sell because they do not have the mentality of losing or because they are afraid of falling. Besides, if someone invests from the money they need, then no one will want to lose it and it is normal to sell if the price drops. Basically, this kind of mentality is trading. A long-term investor does not need to pay extra attention to the market. Because he has to be mentally prepared in advance, he is ready to lose the money he is investing. And he is investing from the remaining money after fulfilling all his needs, that is, from the extra money. Emergency funds are necessary to deal with unexpected situations. Otherwise, an investor will be forced to break the investment in any need or unexpected situation. As you have said, the strategy will break. Just like that.

[Agbam]

What you have to understand is that when Bitcoin was created newly with the use of $10 you can accumulate a lot of Bitcoin but right now you cannot anymore because bitcoin price has increased so for you to be able to accumulate good amount of Bitcoin you need to put some strategy in place so you won't be dipping hands into your bitcoin investment and one of those things you need to set in place are emergency funds, if you decide to have a strong emergency funds before you start accumulating Bitcoin you are not totally wrong, you can do that if you feel that it is good for you or you can decide to accumulate bitcoin alongside building your emergency funds.

I don't know why you are saying one can invest in Bitcoin without having a stable income if you don't have a stable income how do you intend to be accumulating Bitcoin? Please I need your answer.

You’ve been here for quite a while and you still don’t know people don’t necessarily need to have a stable income before they can invest in bitcoin. Some persons have inconsistent jobs that gives them income (like contractors, Sales rep or consultants that earn on commissions, freelancers etc).

Their income might be unstable but if they’re able to account for their basic expenses and still have discretionary then they can be able to invest.
Sorting out discretionary is the only prerequisite for investing in bitcoin. As long as your able to meet your basic needs and still have money left over you’re good.

[Silikiem]

And there people that even if you advice them to have discretionary funds and emergency funds they won't take it seriously but with time they would know how important it is and that way people will not take chances next time and that is why some people will always tell you that experience is the best teacher and it is true when you tell them they don't believe then they will learn the hard way after selling what they own.

I don’t know why people are getting this wrong, it’s not important to have emergency funds before starting Bitcoin investments but a lots are still never getting the facts about it. Bitcoin is a great asset that each an everyone can start with any amounts of money, not until he/she wait to get the discretionary fund or emergency fund before they can invest, because if that should be the case I’m sure that a lots will never be able to invest in the Bitcoin; we all know that learn and getting experience on the investments works is good, but not that it’s important to seek for emergency funds first we should stop confusing people that have interest to invest especially newbie’s.

You are right, there is no obligation to create a complete emergency fund and then invest in starting an investment. An investor can create an emergency fund after starting an investment or along with starting an investment. However, he can consider for himself how long an investor can live with an empty fund. Everyone's lifestyle is different, so he can decide for himself by considering who has what expenses and when and what he may need. However, if an investor thinks that he is unlikely to have an emergency need after starting an investment and that he does not have an emergency situation, then he can start without creating a fund. However, I think that every investor needs an emergency fund and should not stay with an empty fund for a long time after starting. An emergency fund should also be created along with investing, even if it is a very small amount. Because this is what will protect our investment in unexpected situations.

The major aim is for investors not to delay getting started with bitcoin investment because of them not having an emergency funds available to them at the moment and not really because they think or feel that they are unlikely not going to have any emergency need or situation at the time of their startup, such assumption is wrong and highly delusional because emergency situations doesn’t plan itself nor does it pre-inform us before they can occur, they can occur at any moment and any seconds.

The emergency funds is really important for a bitcoin investor and not just a bitcoin investor but to all and sundry as it helps us not to tend towards selling off our assets or investments when in a emergency situations, that being said, not having it ready shouldn’t be a barrier why we shouldn’t get started with investing in bitcoin as we can always start buying bitcoin if we have available discretionary income and along the line we must make sure to build up the emergency funds while buying bitcoin in such a way that when we receive a discretionary income we can allocate some percentage of it towards buying bitcoin and hold and another percentage of it to be kept specifically for building the emergency funds, that way can help.