I don't care about the price of Bitcoin because I have already implemented a DCA strategy to accumulate Bitcoin, so every month when I get paid, I will accumulate Bitcoin regardless of the price at that time.
I used to trading a lot, but now I prefer to set aside a larger percentage of my money for investing, although I still trading , but with a smaller percentage.
It is a good decision that you have taken for yourself but where
I don't agree is buying bitcoin from your salary. You were correct when you said you will be accumulating bitcoin regardless of price but investing when your basic needs hasn't been met is wrong. What we should invest in bitcoin is discretionary income and not from our salary Discretionary income is the leftover money after your basic needs is met. Before you invest ,you should ensure your basic needs are met and the left over money should be invested in bitcoin.
I don't really understand why you are not in favor of buying Bitcoin from your salary. If someone has all their necessary expenses covered with their salary, whatever extra money they have is discretionary income. And there is no problem in investing in Bitcoin with that discretionary income.
It's just a simple and clear issue. They are two different words, salary and discretionary, and of course, discretionary comes from salary, which is the money remaining after sorting out basic necessities. I guess what Cossyblack was saying is that Fakhrulenclix didn't mention buying bitcoin using his discretionary, but just said that when he is paid, he accumulates Bitcoin not minding the current price. of course, he could be doing that with his discretionary, but for clarity sake, he should rather say... When am payed, after settlement of basic needs, and my discretionary is made available, I accumulate Bitcoin no matter the current price through the DCA.
It would be preferable if we could use the same (or at least similarly understandable) terms so that we can get into talking about the substantive issues rather than ongoingly clarifying the meaning of different words, so you are correct that sometimes the discussions revolve around clarifying the words so that we understand what we are talking about or if we are talking about the same things.
Some guys will understand the practices very well, but just use different words to describe, and surely other guys have very sloppy practices that may well relate to their not really understanding the differences between certain words and/or they are just very sloppy with their cashflow management. Surely, normal people prefer to have some flexibility with how they spend their money and there can be some burden in both trying to keep track and also making sure to stay within certain limitations. At the same time, creating our own structures can also help to improve our freedoms. Another problem is that cash (income) might be coming in on a rolling basis and also the expenses are happening (or coming due) on a rolling basis too, so it can become easy to lose track if we are not trying to pay attention to how much we are spending and perhaps trying to categorize and differentiate needs versus wants and sometimes we might wrongly conclude that merely increasing our income can resolve all of our problems when we are also contributing to our own problems by either not keeping track of our spending and/or perhaps in other ways spending beyond our means.
We don't talk too much about the use of debt in this thread, and I am not even against the use of debt, yet one of the problems with the use of debt is that it brings an additional levels of complexity into cashflow management practices that might sometimes disguise the extent to which any normie might be spending beyond his means.
You (NewRevelation) mention that these matters are simple, which is probably true that almost all of the skills of both investing into bitcoin on a regular (perhaps weekly?) basis and cashflow management are within skill levels that most people can fairly easily achieve even with fairly basic levels of math that even kids learn by the time they reach their teenage years, yet at the same time, there is likely a need for practice, repetition and even the placement of solid practices for some level of organization take place that facilitates the ability to ongoingly invest into bitcoin and to make sure that money is always available to cover expenses. I would hope that the longer that guys exercise and practice disciple, and even within 6 months or so, then they will become empowered by their disciple to ongoingly grow their bitcoin investment until it reaches a size that might allow them to be able to discontinue working (except to the extent that maybe their full time job is ONLY the monitoriing of their cashflows and making sure to be spending within the capacities of their bitcoin stash size).
Even if you claim to be investing without accounting for discretionary funds, it sounds to me that the 10-15% that you are investing is from discretionary funds, since the 85% to 90% is covering all of your expenses, so your discretionary funds ares greater than 10-15% of your income.. and the portion that you are investing from is coming from your discretionary funds, even though you claim to not be account for it.
From your discretionary funds, you can invest, save and/or use for discretionary consumption.
The non-discretionary funds covers all of your basic expenses... so if you were using money that you need for your expenses, then you are going to end up getting yourself in trouble.
Of course, you could have large enough back up funds so that you end up having money to cover your expenses in those instanaces that your income is low and/or your basic expenses are high.
This might be a consideration (although not initially) because I feel that 10-15 % is still enough for me to be able to invest comfortably with enough consistency for me and I'm not too worried about my life and needs we have.
Maybe the downside here is that it will take me a little longer to invest because it is certain that the smaller your ratio in investing the longer it will take especially if we want to achieve a goal such as 1 year of income for investment and even more than that.
I get the sense that you (Ryu_Ar1) might be misunderstanding what is meant by 10% to 15% of income being invested into bitcoin, and in that regard, I don't understand why you believe that investing 10-15% of your income into bitcoin is a small amount. Relatively speaking and for many normal people, investing 10% to 15% of your income into bitcoin would be a very reasonable paced amount since it frequently is difficult for anyone to get above investing 15% or more of their income into bitcoin (or anything else for that matter), even though surely the higher that any of us is able to get in our bitcoin investment levels without overly discomforting ourselves (financially or psychologically), then the better progress that we make in terms of getting 1 or 2 years of our income invested into bitcoin, which surely gives us good potential to being able to get to fuck you status when we can get 1-2 or more years of our income put into bitcoin.
At the same time I understand that by investing into bitcoin many folks may well be preferring to be able to increase their standard of living rather than staying at their same current income level. I do think that with bitcoin investing it can be reasonably possible for guys to be able to increase their standards of living, even by 2x or 3x their current income level. It might be a bit harder (or maybe less reasonable) to achieve higher income level increases without some luck or even higher levels of aggressiveness in regards to how much capital is put into the bitcoin investment.
On the one hand this is also a good thing because for me being and investing is not a race, as long as we are able to do the best for the future then we should do it even though it's definitely not easy because we have to manage income and expenses as much as possible but when we are disciplined I'm pretty sure that time will come and we can talk about the ideal financial freedom that we always discuss.
It is true that bitcoin's asymmetric bet characteristics allows for that even reasonably low levels of ongoing and consistent investing may well still end up resulting in considerable life improvements as long as the investment timeline is for longer periods such as 10 years or long.. .while at the same time appreciating that the mere fact that the investment is long, that does not increase the odds of the investment becoming guaranteed, even though longer term investing (and a longer term mindset) does at least help to mitigate concerns about stresses that can sometimes accompany bitcoin's ongoing and seemingly inevitable shorter term volatility dynamics.
It absolutely must be like that because the stages require strengthening someone in terms of investing. Without that I think it will be very difficult to reach that point to generate profits from our investments. I think the example you mentioned is very good in terms of providing strength in investing for someone who should have the stages to do it. The DCA method is essential every time you invest. When you make a profit you'll undoubtedly reach your desired investment goal.
This isn't necessary as investing in Bitcoin simply requires a strong mentality to accumulate Bitcoin through DCA.
Whether it's a small or large amount sometimes people invest large sums but after investing that amount they lose concentration or focus on consistency which can have fatal consequences. Reaching their goal is very difficult due to the underestimation of those investing small amounts. However those investing small amounts consistently focus more confidently than those investing larger amounts. Essentially I think doing everything possible is crucial regardless of whether the amount is large or small. What I need to say is that staying focused and consistent is what will ultimately lead to achieving the desired results.
Being in profit does not always mean that you have reached your desires goal...Take this example: let say your desire goal is to accumulate 0.05BTC and you began your accumulation during the time when the price of Bitcoin was $60k...Now that the price is at $67k, obviously you have made some profit. But since your goal was on how much Bitcoin you want to have, even the short term price movement wouldn't mean that you have reached you desired goal..
Your example of a goal that might be attempted to be related to investing in bitcoin is fairly pathetic Joeboy, since it makes little to no sense to have a goal of acquiring a certain quantity of bitcoin (such as 0.05 BTC) without any further context.. You mention such goal as if it were an end goal rather than maybe an intermediary goal, and even your describing a a mere 12% increase in the BTC price from $60k to $67k. That shows the potential of the 0.05 BTC, if the quantity were to be achieved at that price having a value of $3,350, and then maybe there are other questions regarding how long this hypothetical guy would have had been investing in bitcoin during the time that maybe the BTC price had achieved a 12% increase in value. Is this investment over a few months or over several years? or are we talking about a 4-10 years or more timeline or something else?
In this thread we are intending to be talking about investing and investing ideas, yet your example seems to be caught up in some kind of a dumb ass trading framework (mindset), which would be largely off topic, even though it could be possible for guys to suggest that intermediary bitcoin accumulation targets can be set, even though the investment timeline may well be 4-10 years or longer, there could be intermediate goals (and targets) to try to achieve a certain quantity of BTC at various points along the way, such as 6 months, 18 months, 3 years, 5 years, etc. etc. etc.
Being in profit does not always mean that you have reached your desires goal...Take this example: let say your desire goal is to accumulate 0.05BTC and you began your accumulation during the time when the price of Bitcoin was $60k...Now that the price is at $67k, obviously you have made some profit. But since your goal was on how much Bitcoin you want to have, even the short term price movement wouldn't mean that you have reached you desired goal..
But the reality is that everyone wants to profit from anything especially when investing in Bitcoin. They always focus on the profit.
Holy fuck, iamsange. Are you even following any of the ideas of this thread? I have difficulties understanding and appreciating how investing (within the context of my own ideas about bitcoin investment, which happens to be the topic of this thread), relates to focusing on profits.. since it does not and from my perspective, as I have ongoingly been emphasizing, investing relates to building up our bitcoin holdings with 4-10 year or longer time horizons, so why the fuck are we going to be focusing on profits, unless we are forgetting that we likely have a 10 year or longer time horizon, and the only guys who might get away with timelines that are less than 10 years would be those guys who have age and/or health issues that contribute towards their having to have shorter than 10 year investment timelines.
As you said someone starts accumulating at $50,000 and a few days later, it's already at $70,000. This means they're already experiencing a profit which sometimes leads them to sell their assets to accumulate more BTC.
So what? The mere fact that there are guys fucking around with trading, what purpose are we achieving to be talking about that off-topic bullshit?
Yeah we know that guys trade and they make mistakes, yet it seems better to be talking about good practices related to investing rather than talking about what not to do.
They know that when the price drops like it does now it's better to do so. They'll certainly profit in the future if the price rebounds like it did a few months ago at $90,000. This is a significant achievement reflecting their basic goal of investing in Bitcoin.
You don't seem to understand what is investing, even though you use the term "investing" in your post.
I will suggest that sure it is all fine and dandy that we might assess the extent to which our bitcoin holdings are in profits or not, yet if we are still accumulating bitcoin, then we could be employing a variety of tactics such as DCA, lump sum and buying on dips, yet we may well not be too much affected by whether the BTC price is $50k or $90k in terms of our ongoing attempts to accumulate bitcoin, unless maybe we are trying to accumulate more while the prices are lower, yet we cannot know whether the BTC price is going to stay lower or even go lower, so we may well be continuing to buy bitcoin on a regular basis whether the BTC prices are $60k, $90k, $120k or some other prices in the short term.
Of course, you (iamsange) have been registered on the forum since April 2016 (nearly 10 years), so maybe you have already mostly been buying bitcoin for those last nearly 10 years, yet Joeboy has only been registered here around 8 months, so he may well be way earlier in his bitcoin accumulation stage which would likely mean that he would be buying no matter what, yet a guy who had already been buying for 10-ish years may well end up adapting his buying based on price (to the extent that you (iamsange) might be at least attempting to be talking about investing rather than trading of bitcoin?).
In recent times, we have so many guys who are posting in this thread and failing/refusing to really grapple with the topic of this thread and seeming to be referring to trading ideas rather than investment ideas, even when they are using the word "investment" to describe what they are intending to post about.
