JJG’s Outline of Bitcoin Investment Ideas

[Alonso_]

Yes, there are degrees of consistency and risk management that we can control. But I believe it's just as important to know when NOT to invest. A person can be consistent with DCA but not able to afford the expenses of emergencies or daily living costs if he/she invests the money that is required for them. While Bitcoin's long term prospects are bright. It is important to remember that this does not imply a lack of risk in the near term. A strategy that first builds up an emergency fund and then invests what is surplus to the needs will be more sustainable. Since it will not be exposed to volatility. Financial discipline is not only about the amount we invest. It's also about knowing our limit.

You don’t have to build up your emergency funds immediately or having a strategy that helps to build your emergency funds or whatever you meant by your statement, you need a discretionary income to get started with investing in Bitcoin and your emergency funds still comes from your discretionary income as well as your reserved funds, you don’t need to build up your emergency funds immediately as you start your investment, that is obtainable when you’ve gotten to three months of your bitcoin investment.

Having a discretionary income is the ultimate because it gives you the leverage of getting started with your bitcoin immediately, as a beginner what you’ve to do is have a discretionary income and starts buying bitcoin.

[Cossyblack]

I am sure we all know that crypto as a terms comprises of so many other coins including some crazy once and it doesn't make sense that way. It's proper we should be more specific for a proper understanding, mostly for newbies. Bitcoin is the mother of all coin and it is not proper or rather a huge insult addressing them on a role. Please Accord BITCOIN some respect because it's right to do so. @Charcol, nice observation.

Op wasn't refering to bitcoin alone maybe that was why he made the use of the word cryptocurrency  you are right, the word crypto means more than just bitcoin as there are many other coins aside bitcoin that are cryptocurrency,to be specific of the one who you are discussing about,he should have used the exact name of the coin instead of using the general term.

Since what we are discussing on this thread is about the outline of bitcoin investment Ideas,the Op was expected to focus on bitcoin because it's our bone of contention and not shit coins. Bitcoin is the main bone of contention on this thread,so we should avoid using vague terms like crypto or cryptocurrency so as not to mislead newbies who could think bitcoin is the same as shitcoins.

[Promocodeudo]

Yes, there are degrees of consistency and risk management that we can control. But I believe it's just as important to know when NOT to invest. A person can be consistent with DCA but not able to afford the expenses of emergencies or daily living costs if he/she invests the money that is required for them. While Bitcoin's long term prospects are bright. It is important to remember that this does not imply a lack of risk in the near term. A strategy that first builds up an emergency fund and then invests what is surplus to the needs will be more sustainable. Since it will not be exposed to volatility. Financial discipline is not only about the amount we invest. It's also about knowing our limit.

Mate as matter of fact, every Bitcoin investor is required to have discretionary income as that's what everyone that's planning to invest needs to figure out first, not figuring out your discretionary and going ahead to invest is the same things as someone that's gambling, which will eventually result to the investor ending it all at some point by withdrawing his Bitcoin asset, since that might be the only choice left for him.

An investor who's consistently DCAing without being able to bear the cost of his basic needs, doesn't have a good plan, before we can think of any investment, particulary Bitcoin investment, we must have attended to those things that are more paramount so that we don't consider at some point to take some amount from our investment to settle something that we would've done earlier which is supposed to be the first priority before any other thing.

[Rockstarguy]

That is the biggest mistake anyone will ever make to be consistent while they can not afford their expenses or needs because you are already planning not be successful in your investment which is failure. A wise investor will always make sure to handle his or her needs before any other thing I mean if you have not handle your needs where will the investment money come from? This shows lack of knowledge as it Is not what is required of an investor to do first. The first priority of anyone should be their needs before any other thing.

There are some people who seem to be overzealous in their investment; they just invest everything, have no plan for expenses, and think that the pattern of how they invest is what will yield a good outcome, but it doesn't work like that.

Bitcoin investment is all about planning. After every expense, one is expected to invest with discretionary funds, and with this, you don't have any challenges. However, when it is not balanced and all income is going into Bitcoin investment, it becomes difficult to continue. The essence of having discretionary funds is to invest in Bitcoin with the amount you can afford to lose without affecting your expenses.

[SmartCharpa]

A method can never guarantee success but rather what will guarantee success in anything we do is how we approach things and the ability of those things to do great in the future. Just like in Bitcoin investment our success is dependent on how we approach Bitcoin with our strategy and the ability of Bitcoin potential to speedily increase in the future. If someone is using the DCA method and then due to a little change in price the person panic, it means they are not long term holder but a trader.

I can't agree with your comment. Because it is very natural for a new person to be afraid. A new person has never faced such a situation before and when they see their money slowly going towards loss then they will be afraid this is the case with about 80% of people. It is not that a person becomes a trader when they are afraid, that person is called a trader. The person who buys and sells in the short term is called their trader.

A new person needs to build so much faith in Bitcoin at the beginning that they do not decide to sell or sell even when facing a market decline. Gradually when they start to deal with the market decline and are able to deal with a big market decline then they can increase the amount of their investment

Yes we are all human, but what do you really call the response of an investor to Bitcoin market price decline? Fear? Don't forget fear is when you are overwhelmed by market price decline, fear can trigger high blood pressure and other ill health conditions, so tell me why an investor should put themselves under such unnecessary pressure? If that be, probably it means some investors expresses fear more than some traders when Bitcoin price declines and what is the meaning of such nonsense?
Just imagine an investor who has decided to hold for 10 years but had only hold for 2 years always expressing fear when there's Bitcoin market price decline. There will be some response definitely when price decline because you a human but it is nonsense when it becomes fear. Fear of what exactly? That your holding term is almost elapsing? Or an investor who haven't gone to the halfway the holding term?

You cannot compare yourself with someone else. You said it yourself that we are all human beings with different minds. You can overcome the challenges of the market, while some people may find it difficult for their investment to survive in the long term.

If someone end up selling their holdings after two years when they planned to hold for like 10 years, panic is not an excuses at all. As long as they survived the ups and downs of the market for two years, there are no any challenges they cannot survive while holding for the remaining years.

The person chose to sell because of their own decision, but not because of fear.

[Futurexxx]

You cannot compare yourself with someone else. You said it yourself that we are all human beings with different minds. You can overcome the challenges of the market, while some people may find it difficult for their investment to survive in the long term.

If someone end up selling their holdings after two years when they planned to hold for like 10 years, panic is not an excuses at all. As long as they survived the ups and downs of the market for two years, there are no any challenges they cannot survive while holding for the remaining years.

The person chose to sell because of their own decision, but not because of fear.

Their are few things that may compel a Bitcoin investor to sell his investment prematurely, the first is if the person is only in for short term gains, because once his investment is in profit he decided to sell off his holdings and become a no coiner overnight, that's sad and regrettable.

The second is if the investor invest away from his discretionary income, and because of that line of action, he will be forced to sell prematurely when the needs that money is meant starts knocking on the door, and finally is if he fails to put down emergency and reserve funds to back up his investment against any real life emergencies. So an investor doesn't just sell prematurely if he is actually doing things or investing the right way.

[Merit.s]

I am sure we all know that crypto as a terms comprises of so many other coins including some crazy once and it doesn't make sense that way. It's proper we should be more specific for a proper understanding, mostly for newbies. Bitcoin is the mother of all coin and it is not proper or rather a huge insult addressing them on a role. Please Accord BITCOIN some respect because it's right to do so. @Charcol, nice observation.

Op wasn't refering to bitcoin alone maybe that was why he made the use of the word cryptocurrency  you are right, the word crypto means more than just bitcoin as there are many other coins aside bitcoin that are cryptocurrency,to be specific of the one who you are discussing about,he should have used the exact name of the coin instead of using the general term.

Dunamisx isn't the OP, because he wasn't the one that created the thread. JayJuanjee is the OP. Anyone that created a thread is the OP. OP stands for two meanings. Original Poster and Original Post. I had to trace this quote back to October 2nd to see who you are calling OP because I know JayJuanjee cannot call bitcoin crypto and only talks about bitcoin only if he wants to diss shitcoin.

you don’t need to build up your emergency funds immediately as you start your investment, that is obtainable when you’ve gotten to three months of your bitcoin investment.

This is wrong because you are playing with fire and you will definitely get burned. When a brand new investor does not have any form of backup funds on ground and he decides to start his bitcoin investment after figuring out his bitcoin investment, he should not wait until three months after accumulation before thinking of building his emergency funds because that is gambling.

You never can tell when an emergency will pop up from nowhere, which is the main reason why you have to start your bitcoin investment and build your emergency funds at the same time that you have stated your bitcoin investment without any delay. Imagine that you have accumulated bitcoin without emergency funds for two months and a real life emergency plays out, you will sell your bitcoin to tackle it. If possible at loss, if the price of bitcoin at that time is below your entry point.

The best thing to do is to build your emergency funds simultaneously, with your bitcoin investment by sharing your discretionary income into three equal parts. The first 1/3 for your regular weekly DCA, the second 1/3 for building your emergency funds till it gets to three months of your monthly expenses and the last 1/3 for your discretionary consumption. Don't be in a rush to build your bitcoin stash neglecting your emergency funds because there must be a balance between your bitcoin investment and your emergency funds at the beginning of your bitcoin investment.

[BitBakerr1]

Yes, there are degrees of consistency and risk management that we can control. But I believe it's just as important to know when NOT to invest. A person can be consistent with DCA but not able to afford the expenses of emergencies or daily living costs if he/she invests the money that is required for them. While Bitcoin's long term prospects are bright. It is important to remember that this does not imply a lack of risk in the near term. A strategy that first builds up an emergency fund and then invests what is surplus to the needs will be more sustainable. Since it will not be exposed to volatility. Financial discipline is not only about the amount we invest. It's also about knowing our limit.

The first priority of anyone should be their needs before any other thing.

I don’t think there’s anyone who is going to focus on investment or any other thing before his needs.
You cannot be hungry and be thinking about bitcoin investment it is not possible
Anyone that has not settled his or her needs and then thinking about bitcoin investment or any other thing is actually insane, such a person is not normal.

The first thing a man should think about is to settle his needs and then other things can come in.
Bitcoin investment is a long term investment and for you to succeed in it you need to first settle all your needs then anything you have lift can be used for bitcoin investment, this is why it’s advised to use your discretionary income for bitcoin investment.

[samadam007]

in a situation whereby the investor has as low as $10 then we can see that when shared into three equal part that would gives us $3.33 but then we can see that the discretionary consumption wouldn’t be much for buying bitcoin (I.e at some exchanges or anywhere we are trying to buy bitcoin) so waiting a one week or more  wouldn’t be a bad idea just to get more funds that will be enough for bitcoin accumulation (i.e if we are receiving wages and even with salary we can still consider waiting a bit to raise reasonable amount for accumulating).

In a situation whereby someone has very little/no discretionary income. It is not about waiting after some time to gather more money, because that’s only temporary solution. Remember the amount has to be sustainable over time and you don’t want to get stranded again after some time. The best thing is to take a look at his cashflow if there’s a way to reduce or cut off unecessary expenses. Another option is for him to look for ways to multiply his earnings so discretionary becomes reasonable enough to invest in bitcoin and build financial cushion.

[Primark]

Yes, there are degrees of consistency and risk management that we can control. But I believe it's just as important to know when NOT to invest. A person can be consistent with DCA but not able to afford the expenses of emergencies or daily living costs if he/she invests the money that is required for them. While Bitcoin's long term prospects are bright. It is important to remember that this does not imply a lack of risk in the near term. A strategy that first builds up an emergency fund and then invests what is surplus to the needs will be more sustainable. Since it will not be exposed to volatility. Financial discipline is not only about the amount we invest. It's also about knowing our limit.

Are you saying that newbies should first waste time and delay getting started in bitcoin investment trying to build up the  emergency funds before they can start investing In bitcoin even when they have their discretionary income ready do you know how many years it will take most of them to finish building up their emergency funds and by that time they might even have to forget about bitcoin investment . Not having the emergency funds ready shouldn’t be a reason why investors should delay getting started with bitcoin investment, it’s not a prerequisite to start investing in bitcoin as they can get to invest with the available discretionary income they have and along the line try to build the emergency funds gradually. They can as well be doing it side by side in a way that when they have a discretionary income they can allocate part of it to buy bitcoin and the other part to keep for emergency funds and other back up savings.

Practically this is just common understanding, when an investor has a discretionary income then technically he or she has enough for discretionary consumption and back up funds so they can start investing just like you said and no more wasting of time.
 However, in a situation whereby the investor has as low as $10 then we can see that when shared into three equal part that would gives us $3.33 but then we can see that the discretionary consumption wouldn’t be much for buying bitcoin (I.e at some exchanges or anywhere we are trying to buy bitcoin) so waiting a one week or more  wouldn’t be a bad idea just to get more funds that will be enough for bitcoin accumulation (i.e if we are receiving wages and even with salary we can still consider waiting a bit to raise reasonable amount for accumulating).

Your argument is not correct to take it as if one cannot start investing if one has a small discretionary income. Many times the real problem is not the small amount, but rather the problem is not keeping that small amount in a plan. If someone has a very small part of discretionary income per week, they can keep it aside and buy when they reach a certain amount. In this, they are not out of the market, but are gradually building a habit based on their own capabilities. But if someone thinks that they will start with a little more and later that money goes to other expenses, they will be in the same position again and again, which may not allow them to start. Of course, it is important to keep aside the money for emergency funds, necessary expenses, and buying Bitcoin. If it is a small amount, if it is not part of the necessary expenses, then it can be kept in the plan.

[Xackie]

Yes, there are degrees of consistency and risk management that we can control. But I believe it's just as important to know when NOT to invest. A person can be consistent with DCA but not able to afford the expenses of emergencies or daily living costs if he/she invests the money that is required for them. While Bitcoin's long term prospects are bright. It is important to remember that this does not imply a lack of risk in the near term. A strategy that first builds up an emergency fund and then invests what is surplus to the needs will be more sustainable. Since it will not be exposed to volatility. Financial discipline is not only about the amount we invest. It's also about knowing our limit.

The first priority of anyone should be their needs before any other thing.

I don’t think there’s anyone who is going to focus on investment or any other thing before his needs.
You cannot be hungry and be thinking about bitcoin investment it is not possible
Anyone that has not settled his or her needs and then thinking about bitcoin investment or any other thing is actually insane, such a person is not normal.

The first thing a man should think about is to settle his needs and then other things can come in.
Bitcoin investment is a long term investment and for you to succeed in it you need to first settle all your needs then anything you have lift can be used for bitcoin investment, this is why it’s advised to use your discretionary income for bitcoin investment.

The problem with some people is that they can't tell the difference between their important need and the unimportant ones(wants). Someone that wants to invest into Bitcoin will always want to settle their needs first but when the salary comes, they realise that they have nothing left as discretionary income after budgeting every bills down.  Reason is because they've pured the whole money into things that are necessary and not necessary (planning to buy an expensive designer shoes or clothes, or budgeting for things that are trending or eating out frequently).

Some people might assume that it's an important need but doesn't know that they are wants disguised as need. The better way is to write out their basic needs like light bills and other bills, groceries,some debt payments etc that should be budgeted first and whatever is left can be their discretionary income. Inside the discretionary income, it can also be split into 3 ways, maybe 40% goes into bitcoin investment, 40% into emergency savings and 20% for discretionary consumption or miscellaneous to take care of your wants.

[Showlove01]

In a situation whereby someone has very little/no discretionary income. It is not about waiting after some time to gather more money, because that’s only temporary solution. Remember the amount has to be sustainable over time and you don’t want to get stranded again after some time. The best thing is to take a look at his cashflow if there’s a way to reduce or cut off unecessary expenses. Another option is for him to look for ways to multiply his earnings so discretionary becomes reasonable enough to invest in bitcoin and build financial cushion.

If the discretionary income is little I think there is no problem since we have the DCA which can help someone accumulate gradually regardless of how big or small one's discretionary income is, so this should not stop someone from investing in Bitcoin but if there is no discretionary income at all then I guess the person should work on their source of income and forget about Bitcoin investment for that particular time so they don't put pressure on themselves.

[Rabata]

Yes we are all human, but what do you really call the response of an investor to Bitcoin market price decline? Fear? Don't forget fear is when you are overwhelmed by market price decline, fear can trigger high blood pressure and other ill health conditions, so tell me why an investor should put themselves under such unnecessary pressure? If that be, probably it means some investors expresses fear more than some traders when Bitcoin price declines and what is the meaning of such nonsense?
Just imagine an investor who has decided to hold for 10 years but had only hold for 2 years always expressing fear when there's Bitcoin market price decline. There will be some response definitely when price decline because you a human but it is nonsense when it becomes fear. Fear of what exactly? That your holding term is almost elapsing? Or an investor who haven't gone to the halfway the holding term?

You cannot compare yourself with someone else. You said it yourself that we are all human beings with different minds. You can overcome the challenges of the market, while some people may find it difficult for their investment to survive in the long term.

If someone end up selling their holdings after two years when they planned to hold for like 10 years, panic is not an excuses at all. As long as they survived the ups and downs of the market for two years, there are no any challenges they cannot survive while holding for the remaining years.

The person chose to sell because of their own decision, but not because of fear.

You are right that people sell on their own decision. But what is important is the pressure behind people's decisions. If you buy Bitcoin with the money for necessary expenses, deny the idea of ​​​​keeping an emergency fund and put all your money into investments, then when the market goes down, you will see that your decisions are not made with a completely calm mind. Then fear, cash pressure and the wrong fund source work together.

Again, not everyone can stick to a 10 years plan. Their plan is sustainable only when their expenses, emergency fund and investment money are separate. I am not saying that creating an emergency fund is mandatory at the beginning, but as the amount of savings increases, the responsibility of maintaining and protecting it also increases. So it is worth considering having an emergency fund from the beginning of investing.

You know what the point is? If someone invests with money that may be needed in a few weeks, then no matter how much they want to be a long-term investor, in reality they may be forced to sell when they see a price drop. It is not just fear, it is the result of a weak financial setup.

[Obulis]

Yes you’re right!
And of course, the external market conditions will matter too, but i feel like the variance that most individuals can control is largely a function of their consistency, risk sizing, and also their willingness to keep learning about bitcoin even when the price is boring.
So at the end of the day, choice remains available to us at every step of the way, and that is both the opportunity and the responsibility that we investors need to make use of and take seriously. Let’s not act like we’re completely helpless when it comes to how our investment turns out; there are definitely still plenty of things that are within our control.

Look, you have to control yourself in everything you do and you must use a Bitcoin emergency fund to deal with the situation. However, if you are not able to control the situation yourself, you can collapse in the middle or in the middle of investing, so of course every person should have this knowledge to move forward towards the future by following a strategy. If you are attracted to investing in more Bitcoin, it is not beyond your control,
but you should not buy Bitcoin aggressively at all. Buy Bitcoin within your means and move towards the future correctly, of course it will be easier for you to hold Bitcoin investment for the long term only by following a strategy.

You must not know what is buying bitcoin aggressively, since you seem to be mixing up the idea of buying bitcoin aggressively with the idea of buying bitcoin over aggressively.

The two concepts are different, and buying bitcoin aggressively, versus whimpily versus some level in between aggressive and whimpily is a matter of choice, and they are all within a person's discretion and their discretionary funds.

Buying bitcoin overly aggressive is when a person had gone too far in his bitcoin buying and/or other ways that he had been managing his money (such as how much back up funds he was keeping and maintaining).

I think  that there are several of us (including yours truly of course, and probably including BluebloodCXVI) who understand the idea that it may well be a good thing for any of us in our bitcoin accumulating phase to try to buy bitcoin as aggressively as we can without overdoing it.

Apparently, you @As-Soon-A, do not understand that buying bitcoin aggressively is a good thing for any of us who are able to do it, so long as we do not end up overdoing it... and the extent to which we end up overdoing it might not be known until some point later down the road when we realize that we had ended up screwing up.

Buying bitcoin aggressively is a matter of choice, and it is on a spectrum.

Do you need an example?

For example if a person knows that he has $300 in discretionary funds each week, maybe he will choose an average route of investing $100, saving $100 and discretionarily consuming with $100.

He also could choose to invest up to $300 in bitcoin each week, yet that might be overly aggressive if his back up funds are inadequately and/or he is not adequately accounting for other needs/wants that he has that includes his discretionary consumption.

So investing aggressive is relative, including that he could overdo it by investing beyond his discretionary income or maybe he could overdo it by investing large portions of his discretionary income, especially if he is not otherwise financially and psychologically comfortable to invest into bitcoin at such high levels.  Even though we can give some examples, we might not be able to exactly determine if a person is merely investing into bitcoin aggressively or if he might have had ended up overdoing it.

Indeed buying Bitcoin aggressively is usually not the issues.The difference between buying Bitcoin aggressively and buying Bitcoin overaggressively wasn't specified in what As-soon-As said. The difference between both is quite very clear because buying aggressively may not in any way cause financial bottleneck but when it is overaggressive, then the battle line is already drawn irrespective of the investors financial capacity.
And making the choice to buy Bitcoin aggressively is not always all the time, this can be a measure to avoid buying Bitcoin overaggressively while maintaining a better financial management.

[Lembo69]

You know what the point is? If someone invests with money that may be needed in a few weeks, then no matter how much they want to be a long-term investor, in reality they may be forced to sell when they see a price drop. It is not just fear, it is the result of a weak financial setup.

That is why it is always advised to invest using discretionary income—specifically, money one is prepared to lose. If an investor uses funds that might be needed in the near future, it suggests a lack of understanding regarding the nature of Bitcoin investment. True long-term investment is only possible when the capital deployed is not required for the next 4 to 10 years. Investors who use essential funds and sell off their holdings as soon as prices drop are better categorized as traders; a trader is constantly preoccupied with market prices and tends to sell immediately upon a decline.

Above all, an investor must possess the mindset to hold onto their investment even when circumstances are unfavorable. They should retain their position and take the necessary steps for long-term growth, while also prioritizing essentials like maintaining an emergency fund.

In essence, to survive and succeed in investing, we must commit only the capital we are willing to lose; otherwise, we will never achieve our investment goals as planned. Maintaining investment discipline requires us to invest solely from our discretionary income.

[ejikeme24]

Indeed buying Bitcoin aggressively is usually not the issues.The difference between buying Bitcoin aggressively and buying Bitcoin overaggressively wasn't specified in what As-soon-As said. The difference between both is quite very clear because buying aggressively may not in any way cause financial bottleneck but when it is overaggressive, then the battle line is already drawn irrespective of the investors financial capacity.
And making the choice to buy Bitcoin aggressively is not always all the time, this can be a measure to avoid buying Bitcoin overaggressively while maintaining a better financial management.

How will you know if someone is being overaggressive? The example of being overaggressive is not just by investing from other funds such as business funds or taking out loan to invest, just as many of us believe. Is just like what JJG said in his previous comment  there's a certain amount you will remove from your discretionary income you will no longer have money to save for emergency or backup funds and then it becomes overaggressive because you have allowed the opportunity that the market present to you to deprive you from making your regular savings. So this issue about aggressive buying of bitcoin is something that needs to be giving a proper attention so as to understand how it works so that we don't end up being over aggressive.