JJG’s Outline of Bitcoin Investment Ideas

[impulse709]

I understand that it's not an excuse to stop investing in Bitcoin forever but it's just a part of it. Anyone who has a steady income, and is able to save money beyond the essentials. Can start investing at manageable amounts and continue to save for an emergency at the same time. The key is balance. Emergencies happen without warning and if you don't have a financial buffer, it becomes more likely that you might sell Bitcoin at the most inopportune time, just to cover the emergency. It's important to get a head start. But it's a responsible attitude to risk that keeps investors invested for the long haul. Not a short-term monetary issue.

That's true, because investing doesn't require any rules or requirements. I think investing is very easy. Once we meet our needs I believe we are worthy of investing in Bitcoin. Moreover the amount we need to invest in Bitcoin doesn't have to be large or small it can be as much as we can afford and doesn't make things difficult for us personally when we want to start investing. This is why many people currently say it's easy and focused if we have the intention to start investing.

And I completely agree with one of your words the word "balance" has many meanings. I understand it to be one of them balance is directed toward basic needs which we must prioritize first. After that I think there's nothing wrong with them continuing their efforts with investment. Investment is the second part of what we do. Balance will be achieved based on us setting the direction and goals of our actions. If we set a balance pattern like that we won't have a good time to meet the needs we must meet and I think investing will go according to our wishes.

Buying may be easy, but holding it for a long time, even during a recession, is not easy. Perhaps buying Bitcoin is very easy for us because we do not have to apply to a company or get a certificate from an organization. But after buying, continuing with consistency is the key. Because this is where people start facing a difficult road. Meeting their necessary expenses, determining the amount of investment, keeping cash aside for emergencies are all part of the investment plan. These things do not happen automatically after starting. I am not in favor of starting late, but it may be realistic to start small, learn regularly, and increase the purchase amount when the situation is tough. Although starting is easy, it is probably better for you to have a personal rule to survive in the long run. Because if you do not have it, then even that simple investment may become difficult during the first major recession or emergency.

It's not the buying that's the hard part, it's the long-term holding of Bitcoin. A small unit can be purchased by anyone, but the discipline to persist in building up even during down markets and to not be influenced by emotion when selling is essential and requires a plan. For this reason, I think there should always be a certain amount of Bitcoin in your investment plan and an emergency fund. They work together. If you have to sell your bitcoins at an inopportune moment, then you are less likely to do so, if you have an unexpected expense. It's OK to get small, but patience, consistency and good financial management are key to a successful long-term investment in Bitcoin.

[Agbam]

An emergency fund is indeed a building block of a good bitcoin investment plan, and I agree. If not, even those who know what they believe may have to sell their assets when the market is down to pay their bills. That's why I believe it is a better idea to create a financial buffer first and then ramp up buying bitcoin. Meanwhile, being emotionally invested in an emergency fund doesn't prevent you from making emotional errors of judgment, such as greed or panic. The will for discipline, patience, and a long-term plan is still required for investors. Bitcoin is rewarding individuals who are able to hold through the volatility. And with proper financial planning. That is a lot easier!

You are right. In Bitcoin investment, a backup fund reduces the risk of selling Bitcoin in an emergency. But to hold for a long time, you first need a strong mentality and full control over your emotions. Because the price of Bitcoin is very volatile in the short term. So, to protect yourself from panic selling if the price keeps falling, you need to first make your mindset strong. After that, proper financial management can protect you from selling Bitcoin at the wrong time.

I really don’t get the aspect of strong mentality you’re talking about. In most cases, guys that panic during bitcoin down trend are those that go beyond their discretionary  fund to accumulate Bitcoin, they tend to watch the market every move so they can sell when there is down trend to avoid seeing the the price of their stash reduce.
Theirs is a reason it’s always advice to invests with your discretionary fund, so a guy don’t start panicking when Bitcoin is in it correction phase. As an investor aspiring to go into Bitcoin investment, it’s only wise that you come in with a long term goal because Bitcoin doesn’t reward those that are desperate.

Strong mentality has to do with understanding how Bitcoin works and planning for it accordingly for the long term. You’re right Bitcoin doesn’t reward the desperate, so guys who over do it by going beyond their discretionary and those who get in for just the short term goals are usually the ones panicking.

Trading bitcoin is not favourable, guys have to understand and know this. The best thing is to invest with the discretionary money alongside having an emergency fund and maintain consistency.

[Tongley]

I really don’t get the aspect of strong mentality you’re talking about. In most cases, guys that panic during bitcoin down trend are those that go beyond their discretionary  fund to accumulate Bitcoin, they tend to watch the market every move so they can sell when there is down trend to avoid seeing the the price of their stash reduce.
Theirs is a reason it’s always advice to invests with your discretionary fund, so a guy don’t start panicking when Bitcoin is in it correction phase. As an investor aspiring to go into Bitcoin investment, it’s only wise that you come in with a long term goal because Bitcoin doesn’t reward those that are desperate.

I cannot agree with you on this. Because it is very natural for a new person to be afraid. Whether a person uses discretionary money or uses the required amount of money, if he does not have faith in it, he will definitely be afraid and sell his holdings. If a person has faith in it that Bitcoin will recover again and if he has strong faith in Bitcoin, he will not be afraid.

Being afraid is not a big deal but deciding to sell his holdings out of fear is the biggest stupid decision. Initially, a person needs to build up so much faith in Bitcoin that he does not sell his holdings during the decline. Gradually, when a person starts facing market volatility and is able to build more strong faith in the market, he will definitely not sell his holdings out of fear.

[Biggeno]

I really don’t get the aspect of strong mentality you’re talking about. In most cases, guys that panic during bitcoin down trend are those that go beyond their discretionary  fund to accumulate Bitcoin, they tend to watch the market every move so they can sell when there is down trend to avoid seeing the the price of their stash reduce.
Theirs is a reason it’s always advice to invests with your discretionary fund, so a guy don’t start panicking when Bitcoin is in it correction phase. As an investor aspiring to go into Bitcoin investment, it’s only wise that you come in with a long term goal because Bitcoin doesn’t reward those that are desperate.

I cannot agree with you on this. Because it is very natural for a new person to be afraid. Whether a person uses discretionary money or uses the required amount of money, if he does not have faith in it, he will definitely be afraid and sell his holdings. If a person has faith in it that Bitcoin will recover again and if he has strong faith in Bitcoin, he will not be afraid.

Being afraid is not a big deal but deciding to sell his holdings out of fear is the biggest stupid decision. Initially, a person needs to build up so much faith in Bitcoin that he does not sell his holdings during the decline. Gradually, when a person starts facing market volatility and is able to build more strong faith in the market, he will definitely not sell his holdings out of fear.

lol, I never though of Bitcoin as a religion to have much faith in first before a guy can get started in his investment base on how faith is defined, let’s assume a newbie has faith in Bitcoin that it’ll turn the way his faith has lead him to believe, and it doesn’t work out that way, what will be of his faith then. . If the newbie want, let him be overly religious  with Bitcoin, Bitcoin will still do it thing whenever it wants. Realistically speaking, a guy doesn’t believe or have conviction in a thing, until he has either tried it out or heard the other persons talk about it. But in this case, it’s best you start already with your discretionary fund and grow your conviction in Bitcoin as you go. In the stead of waiting until God knows when your conviction will get to a satisfactory level.

[Big Dirams]

lol, I never though of Bitcoin as a religion to have much faith in first before a guy can get started in his investment base on how faith is defined, let’s assume a newbie has faith in Bitcoin that it’ll turn the way his faith has lead him to believe, and it doesn’t work out that way, what will be of his faith then. . If the newbie want, let him be overly religious  with Bitcoin, Bitcoin will still do it thing whenever it wants. Realistically speaking, a guy doesn’t believe or have conviction in a thing, until he has either tried it out or heard the other persons talk about it. But in this case, it’s best you start already with your discretionary fund and grow your conviction in Bitcoin as you go. In the stead of waiting until God knows when your conviction will get to a satisfactory level.

In my opinion having faith in bitcoin is understanding and believing that bitcoin is something we can rely on and hope on because it has proven itself to be a reliable projects with great potentials and it has proven it self many years to be something worth giving a shot. 
And however the transparency of bitcoin on how transactions are made publicly and how it isn’t an individual projects or a project govern by the government then we should have faith in it but still that doesn’t mean bitcoin can’t go for dips or highs just because we have faith in it.
The price movement of bitcoin is govern by many factors but mainly on supplies and demands so you talking about faith in religious way isn’t applicable to this at all.

[Showlove01]

I understand that it's not an excuse to stop investing in Bitcoin forever but it's just a part of it. Anyone who has a steady income, and is able to save money beyond the essentials. Can start investing at manageable amounts and continue to save for an emergency at the same time. The key is balance. Emergencies happen without warning and if you don't have a financial buffer, it becomes more likely that you might sell Bitcoin at the most inopportune time, just to cover the emergency. It's important to get a head start. But it's a responsible attitude to risk that keeps investors invested for the long haul. Not a short-term monetary issue.

That's true, because investing doesn't require any rules or requirements. I think investing is very easy. Once we meet our needs I believe we are worthy of investing in Bitcoin. Moreover the amount we need to invest in Bitcoin doesn't have to be large or small it can be as much as we can afford and doesn't make things difficult for us personally when we want to start investing. This is why many people currently say it's easy and focused if we have the intention to start investing.

And I completely agree with one of your words the word "balance" has many meanings. I understand it to be one of them balance is directed toward basic needs which we must prioritize first. After that I think there's nothing wrong with them continuing their efforts with investment. Investment is the second part of what we do. Balance will be achieved based on us setting the direction and goals of our actions. If we set a balance pattern like that we won't have a good time to meet the needs we must meet and I think investing will go according to our wishes.

Buying may be easy, but holding it for a long time, even during a recession, is not easy. Perhaps buying Bitcoin is very easy for us because we do not have to apply to a company or get a certificate from an organization. But after buying, continuing with consistency is the key. Because this is where people start facing a difficult road. Meeting their necessary expenses, determining the amount of investment, keeping cash aside for emergencies are all part of the investment plan. These things do not happen automatically after starting. I am not in favor of starting late, but it may be realistic to start small, learn regularly, and increase the purchase amount when the situation is tough. Although starting is easy, it is probably better for you to have a personal rule to survive in the long run. Because if you do not have it, then even that simple investment may become difficult during the first major recession or emergency.

It's not the buying that's the hard part, it's the long-term holding of Bitcoin. A small unit can be purchased by anyone, but the discipline to persist in building up even during down markets and to not be influenced by emotion when selling is essential and requires a plan. For this reason, I think there should always be a certain amount of Bitcoin in your investment plan and an emergency fund. They work together. If you have to sell your bitcoins at an inopportune moment, then you are less likely to do so, if you have an unexpected expense. It's OK to get small, but patience, consistency and good financial management are key to a successful long-term investment in Bitcoin.

I know some people can be very emotional but the best to thing do first is to try not to use money outside your discrestionary income to invest in Bitcoin because you will definitely be emotional when the price is going down and you will be tempted to touch it even if you are  a long term holder or investor. This is a mistake some people make in their investment journey but that is why basic knowledge is good because you will get to know understand these before starting your investment.

[As-Soon-As]

I know some people can be very emotional but the best to thing do first is to try not to use money outside your discrestionary income to invest in Bitcoin because you will definitely be emotional when the price is going down and you will be tempted to touch it even if you are  a long term holder or investor. This is a mistake some people make in their investment journey but that is why basic knowledge is good because you will get to know understand these before starting your investment.

In this current situation, it is most important for you to invest in Bitcoin, because so far we have seen that those who wait to invest in Bitcoin and are eager to learn about Bitcoin investment are definitely falling behind in Bitcoin investment. So I say you know and understand by reading these things, you can start investing in Bitcoin at the beginning and then gradually you will learn about Bitcoin and you will also understand the strategy.
How you can profit by investing in Bitcoin in the long term, you will definitely learn all these things later, every person should follow this that the more you delay investing in Bitcoin, the more you will fall behind in the future. So Bitcoin investment should be started quickly and various strategies should be followed by participating in the long-term journey, among which forming an emergency fund is the most important.

[alankasman]

...

I cannot agree with you on this. Because it is very natural for a new person to be afraid. Whether a person uses discretionary money or uses the required amount of money, if he does not have faith in it, he will definitely be afraid and sell his holdings. If a person has faith in it that Bitcoin will recover again and if he has strong faith in Bitcoin, he will not be afraid.

Being afraid is not a big deal but deciding to sell his holdings out of fear is the biggest stupid decision. Initially, a person needs to build up so much faith in Bitcoin that he does not sell his holdings during the decline. Gradually, when a person starts facing market volatility and is able to build more strong faith in the market, he will definitely not sell his holdings out of fear.

I think your statement is true. Beginners tend to be afraid to sell when they have accumulated a certain amount of Bitcoin not afraid to start. I think so because selling their existing holdings when the market price is sometimes still declining certainly makes them hesitant. But I don't think they should be afraid to start especially since sometimes they already have knowledge about how to invest in Bitcoin. Therefore I'm more convinced that their fear of selling when the price is declining is the issue.

Apart from that I think their confidence when starting is definitely there it just depends on their mentality to start immediately or not but if we talk about their anxiety in terms of selling the amount they already have it is clear, especially the pressure from other parties who sometimes give directions in a context that makes them feel they don't need to sell but what is believed by other parties makes them afraid to do so regarding the small amount of sales they already have.

I don't think there's any need for them to be afraid. As you said, deciding to sell some of their holdings would be a very foolish thing to do. They didn't need to do it because they had been so diligent in accumulating it long ago. When something like this happened they had already covered up their fear and their confidence seemed to disappear instantly. In fact building confidence when they were just starting out was very tiring. I don't think they needed to do it by suddenly selling their assets and they didn't need to feel the fear that could wipe out the amount they had accumulated long ago.

[Obulis]

We all talk as if it is easy for everyone. Like it's easy to build an emergency fund and an investment fund separately. It's not easy for everyone. I think we should all keep an open mind instead of just sticking to one idea. Some people have little income and want to invest, but they can't build an emergency fund. Will you now discourage them from investing?
You can delay and delay, and many opportunities will just pass you by. I think one should start investing while building an emergency fund. The thing here is, can the person invest consistently? If yes, then it's okay. What an emergency fund does is reduce risk. The risk can't be completely avoided.

I think  you are making  it sound more difficult than it  really is, because  you don't have to wait until you have completely built an emergency fund before you start accumulating bitcoin  because if you are able to figure out your discretionary income from whatever amount you earn for work or anything you do to make money  you can start buying Bitcoin through DCA and build emergency fund gradually alongside it . The important thing is to invest with money  you won't need for  daily expenses. That way, you can stay consistent while reducing the chances of selling  your Bitcoin when unexpected expenses come up.

Just asking, is emergency funds definite? As in what amount is Officially enough for emergency funds? course no amount! Howbeit you can just decide to hold on on allocating emergency funds and that means not waiting for until you think there's enough emergency funds that is not necessarily waiting until you have enough emergency funds before you start Bitcoin investment because emergency funds is progressive having not necessarily a fixed amount. Bitcoin Investment is a personal move that requires personal decision even if you try to copy other investors.
Discretionary funds is the money you don't need for serious get by or daily expenses and that is what is required for any form of investment because you can't invest what you don't have except you are preparing or prepared for trading in the case of Bitcoin!

[Silikiem]

I know some people can be very emotional but the best to thing do first is to try not to use money outside your discrestionary income to invest in Bitcoin because you will definitely be emotional when the price is going down and you will be tempted to touch it even if you are  a long term holder or investor. This is a mistake some people make in their investment journey but that is why basic knowledge is good because you will get to know understand these before starting your investment.

In this current situation, it is most important for you to invest in Bitcoin, because so far we have seen that those who wait to invest in Bitcoin and are eager to learn about Bitcoin investment are definitely falling behind in Bitcoin investment. So I say you know and understand by reading these things, you can start investing in Bitcoin at the beginning and then gradually you will learn about Bitcoin and you will also understand the strategy.
How you can profit by investing in Bitcoin in the long term, you will definitely learn all these things later, every person should follow this that the more you delay investing in Bitcoin, the more you will fall behind in the future. So Bitcoin investment should be started quickly and various strategies should be followed by participating in the long-term journey, among which forming an emergency fund is the most important.

The most important thing In bitcoin investment is the ability of the investor to figure out a discretionary income to use and start investing in bitcoin,Mark the word “discretionary income”. If you say that the emergency funds is the most important thing then you’re likely giving more preference to having an emergency funds ready rather than getting started in investing and accumulating bitcoin first without getting to wait or delay getting started simply because you don’t have an emergency funds available. It is true that the emergency funds is equally a very important funds for our bitcoin investment, but that doesn’t make it more important than for an investor getting started in buying and accumulating bitcoin when his discretionary income is readily available. Emergency funds isn’t one of the strategies In bitcoin investment but rather it’s a fund kept aside for use when in an emergency situation so that the investor doesn’t tend towards selling off his bitcoin investment when he encounters emergency situations . The DCA strategy is mostly preferable especially for a new investor who’s just getting started.

[johnsaributua]

I know some people can be very emotional but the best to thing do first is to try not to use money outside your discrestionary income to invest in Bitcoin because you will definitely be emotional when the price is going down and you will be tempted to touch it even if you are  a long term holder or investor. This is a mistake some people make in their investment journey but that is why basic knowledge is good because you will get to know understand these before starting your investment.

There is no need to do it that way because it will make it more difficult for them to develop investments so if there is no discretionary income it is better not to invest in Bitcoin because investing is not made difficult let alone make it difficult for yourself there is no need to invest because if the income you have is only enough for your needs it is better to prioritize your needs and there is no need to think about investing in Bitcoin because discretionary income is the result of the remainder of sufficient or more money than needs so after your needs are met and there is remaining money of course it must be done in investment because investing in Bitcoin does not have to be in a large amount but according to your abilities so this alone shows that investing in Bitcoin is not burdened to do it, let alone forcing yourself to do it is clearly not good or not good.

[IceLincoln]

I really don’t get the aspect of strong mentality you’re talking about. In most cases, guys that panic during bitcoin down trend are those that go beyond their discretionary  fund to accumulate Bitcoin, they tend to watch the market every move so they can sell when there is down trend to avoid seeing the the price of their stash reduce.
Theirs is a reason it’s always advice to invests with your discretionary fund, so a guy don’t start panicking when Bitcoin is in it correction phase. As an investor aspiring to go into Bitcoin investment, it’s only wise that you come in with a long term goal because Bitcoin doesn’t reward those that are desperate.

I cannot agree with you on this. Because it is very natural for a new person to be afraid. Whether a person uses discretionary money or uses the required amount of money, if he does not have faith in it, he will definitely be afraid and sell his holdings. If a person has faith in it that Bitcoin will recover again and if he has strong faith in Bitcoin, he will not be afraid.

Being afraid is not a big deal but deciding to sell his holdings out of fear is the biggest stupid decision. Initially, a person needs to build up so much faith in Bitcoin that he does not sell his holdings during the decline. Gradually, when a person starts facing market volatility and is able to build more strong faith in the market, he will definitely not sell his holdings out of fear.

This is why it’s important for a newbie to invest with just his discretionary income and is allowed to invest whimply at the start until he’s very comfortable with bitcoin. You have to invest with what you can afford to lose and grow your knowledge and experience until you’re able to trust in bitcoin completely then you can increase your aggressiveness within your discretionary income.
Yes, newbies panic when price declines but if they’re investing with the right approach they won’t be forced to sell or think too much on the market volatility.

[Gragebox]

I really don’t get the aspect of strong mentality you’re talking about. In most cases, guys that panic during bitcoin down trend are those that go beyond their discretionary  fund to accumulate Bitcoin, they tend to watch the market every move so they can sell when there is down trend to avoid seeing the the price of their stash reduce.
Theirs is a reason it’s always advice to invests with your discretionary fund, so a guy don’t start panicking when Bitcoin is in it correction phase. As an investor aspiring to go into Bitcoin investment, it’s only wise that you come in with a long term goal because Bitcoin doesn’t reward those that are desperate.

I cannot agree with you on this. Because it is very natural for a new person to be afraid. Whether a person uses discretionary money or uses the required amount of money, if he does not have faith in it, he will definitely be afraid and sell his holdings. If a person has faith in it that Bitcoin will recover again and if he has strong faith in Bitcoin, he will not be afraid.

Being afraid is not a big deal but deciding to sell his holdings out of fear is the biggest stupid decision. Initially, a person needs to build up so much faith in Bitcoin that he does not sell his holdings during the decline. Gradually, when a person starts facing market volatility and is able to build more strong faith in the market, he will definitely not sell his holdings out of fear.

This is why it’s important for a newbie to invest with just his discretionary income and is allowed to invest whimply at the start until he’s very comfortable with bitcoin. You have to invest with what you can afford to lose and grow your knowledge and experience until you’re able to trust in bitcoin completely then you can increase your aggressiveness within your discretionary income.
Yes, newbies panic when price declines but if they’re investing with the right approach they won’t be forced to sell or think too much on the market volatility.

You've created an ideal model for anyone venturing into the crypto realm. The decision to only risk discretionary income, money that one can afford to lose, reduces the stress of the novice by a tremendous amount. It provides them with room to make some errors and gain insight into the business without the worry of getting financially hurt.

The volatility of the market is scary and it is quite normal for novices to get panicked looking at the red charts. But as you said rightly, when they trade using the proper way and with the money they do not need immediately, those falls in prices are not considered urgent by them and they are not forced to sell in a hurry at a loss.

This period acts as a learning process for them as the experience they gain from trading with Bitcoin and knowing its cycles will help them become confident and only after that will they be able to invest more aggressively.

[Tetu100]

Trading bitcoin is not favourable, guys have to understand and know this. The best thing is to invest with the discretionary money alongside having an emergency fund and maintain consistency.

Trading normally look juicy and too real to be true, and it's not always what we think it is, maybe you will likely be carried away if you haven't learn the hard way. However, the best we can do as bitcoin enthusiast or as an investor is to maintain a longterm investment plan using our discretionary funds because that's what hold the real value of what we want in our investment. . It's proven that bitcoin only reward the patients once and not some desperate guys that always want it hot hot without putting some level of hard work and consistency in it, again if you're still curious to see how much you can benefit from bitcoin investment then you can do more in a longterm investment plan because that is more about having a sured future and building a lifetime fortunes.

[ejikeme24]

You've created an ideal model for anyone venturing into the crypto realm. The decision to only risk discretionary income, money that one can afford to lose, reduces the stress of the novice by a tremendous amount.

It is no longer a new idea, the idea about investing with discretionary income, money that one can afford to Lose has been discussed number of times here perhaps you weren't here when it was discussed but that's by the way. Surely investing with our discretionary income, money that we can afford to lose minimize the risk of losing all and it also helps beginners/ investors not to panic too much when there's dip.

It provides them with room to make some errors and gain insight into the business without the worry of getting financially hurt.

There are more reasons why we need to invest with our discretionary income only, for example; when you're investing with discretionary income, there will no be any regret if things goes wrong; like if I had known, I would have used the money to pay for my rent or other basic necessities. Because those things has already been figured out.

[Joeboy]

~snip~

I cannot agree with you on this. Because it is very natural for a new person to be afraid. Whether a person uses discretionary money or uses the required amount of money, if he does not have faith in it, he will definitely be afraid and sell his holdings. If a person has faith in it that Bitcoin will recover again and if he has strong faith in Bitcoin, he will not be afraid.

Being afraid is not a big deal but deciding to sell his holdings out of fear is the biggest stupid decision. Initially, a person needs to build up so much faith in Bitcoin that he does not sell his holdings during the decline. Gradually, when a person starts facing market volatility and is able to build more strong faith in the market, he will definitely not sell his holdings out of fear.

Tongley you are getting it all twisted up.. Whether you call it faith or believe or convictions, they can all be built through experiences and actual involvement... Also, lack of faith as you call it, isn't only the factor that can cause folks to sell during market dips.. There is also the situation of investing with money that isn't your Discretionary income, that too can cause folks to sell during market decline... But then again I don't see it as a wise decision for folks to invest only they have strong beliefs/faith.. The availability of your discretionary income should already be a go ahead to kickstarting your Bitcoin accumulation journey.. And as you go, you could very well build up your convictions..

[JayJuanGee]

For every investment knowledge is needed to be able to make proper decisions that will guide your investment journey and i think that's what this thread is about and the purpose of the author of this topic.

A person wishing to invest in bitcoin should understand that the market is highly volatile. Hence, decisions like long term or short term investment plan should be considered. Also, the money that should be invested should be what you can forgo. That way you can invest without stress and pressure.

Personally I don't expect a newbie to be totally blank even though I know that what is required of everyone to invest in Bitcoin is their discreationary income, I still think a newbie should not be a dummy even though that part is not discussed here

We do discuss not being a dummy.   If a person has common sense, then he is presumptively not a dummy, even though common sense does not tell us exactly what we should know and not know, and we have to figure that part out using our common sense.. which is a way of suggesting that we use our judgement.

We do suggest that guys need to know how to make sure that they have discretionary funds and that they are using discretionary funds to buy bitcoin, yet there isn't really any other specific knowledge that a beginner has to know in order to get started buying bitcoin, except maybe figuring out from where he is going to buy the bitcoin.   His common sense should help to guide him in regards to how much he is going to start with.

Very important "common sense". From the evaluation of common sense here that means common sense can do and has been doing the wonders many would be newbies and newbies worry themselves about by imagining the level of knowledge to be acquired when they are already loaded with so much that they can start with. Decision on how much to start with is not something that will cause sleeplessness and where to buy Bitcoin from is also easily decided by even other peoples analysis from which a newbie can decide where to buy all of which are produced out of common sense.
As for having discretionary funds, doing expenses or need analysis will help set aside the funds that are discretionary and doing this is still out of common sense.

Sure common sense is not any particular knowledge set, but instead perhaps being able exercise good judgement based on whatever knowledge, skills and experiences that a guy might have and then making judgements from there.

So if a guy with common sense knows that he does not know math enough to figure out discretionary income, his common sense would tell him to learn how to figure out his discretionary funds, and it may also help to inform him to start out slowly.

The guy looks at what he has and what he does not have, and if he does not have it whether he needs to get it and if he does not have it whether he can still start buying bitcoin in a more modified amount, so he may well ONLY increase his level of aggressiveness in buying bitcoin as he becomes more comfortable with making sure that he has what he needs to have, yet even if he might not be aggressive, he still may well get started and build his bitcoin holdings as he is learning about bitcoin and strengthening his cashflow management systems/practices.

I don't think it is right that Bitcoin accumulation is not possible or cannot be held for a long time without regular income. To accumulate Bitcoin without regular income, more planning, cashflow management and control over one's own expenses are needed. It is true that a salary earner may get a fixed income every week or every month, so it is relatively easy for him to set up a weekly or monthly DCA. So does that mean that a contract worker, freelancer or a person working on a project based job cannot invest in Bitcoin . Of course he can, but proper planning is required. If he creates a discretionary fund, then that person with irregular income can also do a DCA in Bitcoin.

Let's say a contract worker gets paid every 3 months. Now he gets $1,800 after finishing the work. Now, it would not be right to buy Bitcoin with an estimated amount from this money. He will have to do proper fund management. In this case, he will have to pay bills, food, rent, transport and other basic expenses until the next income comes. Now let's do a calculation. If his monthly basic expenses are $450, then his required expenses for 3 months will be $450×3 = $1,350. Now, if he $1,800 from $1,350, he will have $450 as a discretionary fund. Now, it is not right to use the entire $450 for Bitcoin investment in the beginning. Because if he does not have a backup fund, he will also have to focus on building it and will also have to spend it on buying Bitcoin. So, let's say he keeps $150 as a backup fund. Then his discretionary fund for buying Bitcoin is $300. Now, if he wants, he can buy Bitcoin with this $300 at once, but for a person with irregular income, it is often better to divide $300 and DCA it until the next income comes. There are about 12 weeks in 3 months, so $300/12 = $25 per week.

Again, suppose this same person gets income after 4 months and gets $2,400 from a project. If his monthly expense suddenly increases, then the basic expense required for 4 months is $500x4 = $2,000. Now, if he $2,000 from $2,400, he has $400. If he keeps $200 of this as an emergency or reserve fund, then he has $200 for Bitcoin investment. There are about 16 weeks in 4 months, so $200 / 16 = $12+ per week. This may seem like a very small amount, but the main thing here is not whether the amount is big or small. The main thing is that he is not buying Bitcoin with his own necessary expenses or emergency money.

So it is possible to accumulate Bitcoin even if he does not have a regular income. The main thing here is whether he is creating a discretionary fund or not. If there is a discretionary fund, then investing in Bitcoin is possible from any type of income.

Your examples are not bad, yet with your discretionary funds, you should be accounting for investment, savings and discretionary consumption.  You should not fail/refuse to account for discretionary consumption, even if you choose to keep discretionary consumption amounts as relatively low.

Discretionary funds and emergency funds are two different funds and there is nothing wrong in separating both because they both serve different purposes . For someone that is earning $300 , let say he used $150 for his expenses and he can decide to set aside $50 for emergency funds then then the remaining $100 is his discretionary funds. If people are not able to differentiate between emergency funds and discretionary funds they may end up using there emergency funds for investing in bitcoin which may make them to temper with there investment when face with an emergency.

In your above example, if the guy has $300 earnings, and $150 basic expenses, then his discretionary funds are $150.  He can choose how much of his $150 to put into emergency funds as compared with investing it and/or discretionarily consuming it.  His total discretionary funds are $150, not $100 as you had claimed them to be.

Putting money into emergency funds and how much is a choice, and it comes after basic expenses, and it is not higher level than investing/discretionary consumption, except to the extent that normies choose it to be of a higher priority.   

[edited out

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.

Your talking about an empty emergency fund @ASloveapg comes off as misleading.

Hopefully guys are not fucking around with empty emergency funds.

Even guys who might start out without any emergency fund, so they have to build their emergency fund and buy bitcoin at the same time, they better be getting their emergency fund up to at least a week or two of their expenses in a fairly short time, otherwise they are fucking around with danger and too much risk. There is a bare minimum need to have some back up funds that can cover the lowering of income and/or the increase in expenses, so if they were to have absolutely no back up funds at any point in time, then their bitcoin would be serving as their back up funds, which hopefully no guys are doing those kinds of things where they don't at least build up a week or two of back up funds as their bare minimum.

And, yeah, frequently, I had been suggesting to get started buying bitcoin right away as long as discretionary funds can be confirmed to exist, so yeah, any guy who gets started and has low amounts of back up funds, he probably should be giving at least equal, and maybe even greater emphasis towards building up his back up funds, even if he is buying bitcoin at the same time that he is building up his back up funds.

Guys have to use their best judgement, and surely many of us, including yours truly, consider and suggest that bitcoin be considered as an investment and not a trade or a gamble, so we have to be careful to NOT be putting our bitcoin at risk, especially in those earliest days after we had gotten started building it up...and it can take a decent amount of time to build bitcoin holdings up to a decent amount, especially if we had been also starting out with relatively low amounts of back up funds that we find ourselves needing to simultaneously build up along the side of building our bitcoin holdings.

[Primark]

I really don’t get the aspect of strong mentality you’re talking about. In most cases, guys that panic during bitcoin down trend are those that go beyond their discretionary  fund to accumulate Bitcoin, they tend to watch the market every move so they can sell when there is down trend to avoid seeing the the price of their stash reduce.
Theirs is a reason it’s always advice to invests with your discretionary fund, so a guy don’t start panicking when Bitcoin is in it correction phase. As an investor aspiring to go into Bitcoin investment, it’s only wise that you come in with a long term goal because Bitcoin doesn’t reward those that are desperate.

I cannot agree with you on this. Because it is very natural for a new person to be afraid. Whether a person uses discretionary money or uses the required amount of money, if he does not have faith in it, he will definitely be afraid and sell his holdings. If a person has faith in it that Bitcoin will recover again and if he has strong faith in Bitcoin, he will not be afraid.

Being afraid is not a big deal but deciding to sell his holdings out of fear is the biggest stupid decision. Initially, a person needs to build up so much faith in Bitcoin that he does not sell his holdings during the decline. Gradually, when a person starts facing market volatility and is able to build more strong faith in the market, he will definitely not sell his holdings out of fear.

It is possible that newbies may be afraid. But I don't think that fear can be overcome by simply believing in Bitcoin. You can still be forced to sell even if you have enough faith in the long-term potential of Bitcoin if you are investing money that you might need in a few months. Again, a new investor may be afraid of Bitcoin, but if he buys in small amounts that he can afford, he may find it relatively easy to hold on to it even if the market falls significantly.

How much fear affects your savings probably depends on the size of your investments, your discretionary income, your emergency fund, and your time horizon.

My question is, how long can you remain calm in the belief that if you buy more with the money you need, then the donations will just keep growing?

[The Founding Titan]

If you wait to build an emergency fund before you start investing, you might take forever. Best way is to put small if your small savings as emergency funds as you grow it and start investing. The aim here is to just start and stop delaying using many excuses why you haven't started and so on.

Risk what you can afford to lose is a term used by traders. And we are not traders but investors. I think the better term to use is investment funds that you are comfortably willing to lock away.

I agree with you because waiting to build a perfect emergency fund can make someone to keep postponing  when to start accumulating bitcoin.  If you are able to figure out your discretionary income after sorting all essential needs  You can start buying bitcoin using DCA strategy  with some percentage of your discretionary income  and use the remaining percentage to build an emergency fund alongside it. This way you are accumulating bitcoin while also building your emergency fund at the time.

Don't forget to invest only  money you can leave untouch for a long time and not money meant for essential needs.

There is no need to create a complete emergency fund at the beginning of investment. If an investor has extra money after fulfilling all his basic needs, i.e., can generate discretionary income, then he can invest it and also create other funds from it. If there is zero fund, then it is better not to invest the entire amount of discretionary income. For example, if someone has discretionary income of $50, then he can invest $20 and keep the remaining $30 for emergency and backup funds. In this case, along with regular investment, financial security will be ensured.

Maybe split that $50 3 ways, you could buy bitcoin with $17 and use $17 to set up your emergency and also your other backup funds after and the remaining $16 you can use for your discretionary consumption, you need to understand that aside from buying bitcoin and setting up your emergency fund there are also other things to do with your discretionary income, you might be able to live without them but that doesn't make them unimportant, you life doesn't have to be boring because you are investing in bitcoin.

[samadam007]

You've created an ideal model for anyone venturing into the crypto realm. The decision to only risk discretionary income, money that one can afford to lose, reduces the stress of the novice by a tremendous amount. It provides them with room to make some errors and gain insight into the business without the worry of getting financially hurt.

The volatility of the market is scary and it is quite normal for novices to get panicked looking at the red charts. But as you said rightly, when they trade using the proper way and with the money they do not need immediately, those falls in prices are not considered urgent by them and they are not forced to sell in a hurry at a loss.

This period acts as a learning process for them as the experience they gain from trading with Bitcoin and knowing its cycles will help them become confident and only after that will they be able to invest more aggressively.

Your post is full of crypto talk, trading talk and assumptions that has nothing to do with responsible Bitcoin investing. If you can't seperate BTC from crypto, then you shouldn’t be here at all. And wdym  by proper way to trade? This is exactly the reason folks with trading mentality like you lose money because they think trading is the shortcut. Those years and funds wasted trying to outsmart the market could have been used to accumulating BTC and holding without stress

If knowing the cycles is that easy, why do so many traders still lose money? No one knows where the top or bottom will be. Where did you even get the idea that experience means someone should invest more aggressively? You sound lost but you don’t know. Experience is supposed to teach better risk management, not bigger risks. Even many experienced Bitcoin investors still stick to DCA strategy because they know nobody can predict the market consistently