JJG’s Outline of Bitcoin Investment Ideas

[Female King]

Here the most important thing is seriousness even if we don't know about the basics from the start but when we already feel buying then inevitably we will learn about it from the beginning and that's what I felt before.
So it's good if we know at least the basics before we start but that's not the starting point because I think we can even buy and learn as we continue to buy and this is what happened to me now.

Knowing the basics is not necessary because it can't stop you from investing. When you wait to learn the basics you are already wasting time and missing opportunities already.
There's really no reason to wait until you learn the basics. If you have been following up this thread you would have learned that the basics are clearly what our common sense can do and it's something you can still learn after starting your investment.

If you have discretionary income available after you have taken care of your expenses then you should not hesitate to invest. The only reason you have to not invest immediately is if you don't have discretionary income ready. We can always learn as we carry on our investment.

Knowing the basics about bitcoin is good but doesn't prevent someone not to invest, more over its not something that will not take time to know as a serious person will use just a day to know the basics about bitcoin investment, it's when you are trying to know more before starting when your discretionary income is available that isn't necessary because you won't still know all about bitcoin unless you first get started before you can understand more about bitcoin and such person who is waiting to know more is already missing out on some good buying time so for those who not in this community following up this thread actually need some basic knowledge before getting started because i believe that some one with zero knowledge about bitcoin will make some mistakes about the right wallet to use and also the strategy to use when buying bitcoin.

[Rockstarguy]

So, you believe that a newbie is required to learn about private wallets and to learn about (and accept) the value of self-custody prior to getting started investing in bitcoin?

I know most newbies don't even care about the wallet because they don't understand the importance of a self-custodial wallet or the risks of using an exchange wallet. But as we encourage newbies to understand how to invest in Bitcoin, I think it is also important for them to understand the wallet they need for investment and not to consider every wallet to be safe for investment, such as the exchange wallet.

I know newbies are more interested in buying Bitcoin to invest but don't know where to invest in Bitcoin. When newbies don't even understand how important wallets are, they can just conclude that they can invest in any wallet without knowing if it is even a scam custodial wallet.

[Big Dirams]

Therefore it would be wise to create at a 3-month backup fund without touching Bitcoin. This way you can invest in Bitcoin with a safety net.

How long do you think it takes a guy to build up a 3 month back up fund in fiat?  How does he balance his back up funds with his bitcoin buying?

What if a guy comes to learning about bitcoin and he wants to get started, and he knows that he has discretionary funds, yet he does not have any back up funds, how should such a guy proceed, from your point of view?  How much back up funds do you believe he needs before getting started buying bitcoin, and then once he gets started buying bitcoin should he continue to build his back up funds or not?  And then what happens once his back up funds are at a level of 3 months of his expenses?  Where is his bitcoin investment at such a time?  Presumptively the bitcoin is more volatile that the fiat in which his back up funds are kept.

Many people especially beginners misunderstand the concept of Bitcoin investment they get it all wrong by thinking they need to wait to fully build their back up fund first before they start investing. But in reality stacking both Bitcoin and building a back up should be done together because they both work together and not against each other but with different priorities.

And it's true the time it takes to build your emergency fund varies among individuals because it depends on the person's income, expenses debts and personal discipline. All these things varies among individuals so building a 3 month emergency funds might take different individuals different time. Your emergency fund is quite important because it gives you stability, but it shouldn’t completely stop you from investing because accumulating Bitcoin is always the main goal and always the top priority and it can be done gradually while you’re building your emergency funds.

Well that is true.  A guy could have such messed up finances that he is not really in a position to really determine that he has a sufficient amount of discretionary funds available to get started buying bitcoin, and availability of back up funds could be a part of that assessment, and it is hard to recognize any circumstances in which it would be justified to invest in bitcoin if there aren't any back up funds, unless the paycheck is coming the next day, and even then it could be risky, since paychecks sometimes do not come when they are expected to come.

Right you made a good point, at times it really hard to tell if one has a back up funds especially when the finance is totally complicated.
Well getting our finances sort out and paying up some complicated debt that might tends to obstruct some opportunities during bitcoin accumulation is a very positive way before we can start our journey, at least we can easily make availability for our discretionary income before start and if possible our emergency funds too but that not very much necessary as discretionary funds. 
 And true talk too paycheck sometimes gets delayed or maybe at times they don’t even fall in place so risking it is not really worth it. But when there is assurance for the paycheck then that a positive one.

[Comeacross]

Well that is true.  A guy could have such messed up finances that he is not really in a position to really determine that he has a sufficient amount of discretionary funds available to get started buying bitcoin, and availability of back up funds could be a part of that assessment, and it is hard to recognize any circumstances in which it would be justified to invest in bitcoin if there aren't any back up funds, unless the paycheck is coming the next day, and even then it could be risky, since paychecks sometimes do not come when they are expected to come.

The truth is back up funds are not even optional because it create discretionary funds. The more we dwell on this, the more it justify the need to invest with discretionary funds. Even with regular paycheck, it sometimes delay for one reason or another. If for instance, your investment in BTC today means you can't eat tomorrow if your pay is delay, then you are just gambling not investing. There are things you need to put in order even if you don't have up to 6 months expenses. You need to ensure your bill for the current cycle is covered. At least small buffer is necessary but most importantly, stable income is a must.

[red4slash]

• Building a 4-week emergency fund and starting to invest protects the portfolio from sudden market fluctuations, such as a 20-30% drop in a single day.
• It gives the investor peace of mind. This reduces the tendency to make wrong decisions.

However real-world experience suggests that 4 weeks of funds are not enough for a high-risk asset like Bitcoin. If you enter bitcoin with at least 3 to 6 months of living expenses saved up you may have to sell bitcoin at a loss in the event of a major personal emergency, such, as job loss or medical expenses.

Therefore it would be wise to create at a 3-month backup fund without touching Bitcoin. This way you can invest in Bitcoin with a safety net.

I think the first point is not really necessary if you really want to invest because in this case buying bitcoin will have nothing to do with your emergency fund (unless you are too naive to make an emergency fund as a fund to buy bitcoin).

In addition, delaying the purchase even up to 3/6 months just because you want to secure the reserve fund is also too passive because we have another option here by buying bitcoin but still by securing the reserve fund at the same time.
If you delay 3 even up to 6 months indirectly it is your bitcoin purchase that is hampered and this is clearly not a wise choice because honestly the longer you wait for a purchase, the more hesitant you are to buy because every time you want to buy, there are always considerations that become reasons that make you not buy and continue to wait.

[Rabata]

So, you believe that a newbie is required to learn about private wallets and to learn about (and accept) the value of self-custody prior to getting started investing in bitcoin?

I know most newbies don't even care about the wallet because they don't understand the importance of a self-custodial wallet or the risks of using an exchange wallet. But as we encourage newbies to understand how to invest in Bitcoin, I think it is also important for them to understand the wallet they need for investment and not to consider every wallet to be safe for investment, such as the exchange wallet.

I know newbies are more interested in buying Bitcoin to invest but don't know where to invest in Bitcoin. When newbies don't even understand how important wallets are, they can just conclude that they can invest in any wallet without knowing if it is even a scam custodial wallet.

I agree with your statement that it is necessary to know about self-custody and exchange risks to hold Bitcoin in the long term. But you presented the issue in such a way that beginners need to know these things before starting Bitcoin, which seems to be a mandatory condition for starting to invest. In reality, it is not mandatory for beginners to learn about wallet security and self-custody before starting. Rather, it is just an excuse to delay or not start investing. What is needed at the beginning of investing is whether there is extra income. If someone has extra income, then there is no obstacle to starting. Another thing is that holding a large amount of Bitcoin on an exchange for a long time is one thing, and using an exchange to start with a small amount at the learning stage is a completely different thing. Do not confuse the two. If someone wants to start with a small amount and is not yet fully aware of wallets, then starting with an exchange is not a bad thing for him. He can use the exchange until he is completely ready about his security. When he is sure about his security, he will bring it to his wallet.

[Finebone]

At least small buffer is necessary but most importantly, stable income is a must.

I don't know why most of us here are not getting the point here that a stable income is not a must for you to invest in bitcoin and be successful at it. What is more important is a discretionary income, because a stable income doesn't guarantee that you can figure out your discretionary income.
I am not saying that it's not good to have a stable income, but what am trying to point out here is that it's not the key criteria a bitcoin investor must have in other to invest in bitcoin and be successful, because the key thing that is needed is a discretionary income, and once you can figure it out, starting your Bitcoin investment should be done right away without wasting any time further.

[Obulis]

If a person has an income of $30k per year and he decides to invest $100 per week into bitcoin (17.3%), then maybe after 5 years he had invested $26k into bitcoin, and if bitcoin suddenly goes up 5x to be worth $130k in a fairly short period of time, the guy might not know how to deal with that situation.  Is he going to keep buying bitcoin?  Stop buying bitcoin? Or is he going to be tempted to sell some of his bitcoin?

Maybe he never had any investment that was worth that much money, so he has to learn how to deal with having that money and knowing that the price is volatile and that he can sell the bitcoin at any time that he wants.  Building up a habit of ongoingly buying bitcoin can help in these circumstances, but also building up back up funds can help in these types of circumstances, too.
 .

That absolutely a high percentage of bitcoin returns that comes after constant accumulation of bitcoin for over 5years. But I’m a bit loss right now so what should be the investors decisions here or does it totally comes down to the investors to decide on what to do with the bitcoin or is there any positive way to approach a situation like this.
I’m just so curious because with high amount of bitcoin like this then such investors would be totally confused so what should be his decision here. Keeping up with more accumulation? Or selling off all his holdings? Or even maybe selling some and securing it what should be the decision here @JayJuanGee.

Well I came up with a suggestion don’t know if it suit well but just an opinion though.
What if the investors reduces his or her weekly budget for the constant accumulation, so it would reduced the risk a little bit afterall the holder has made so much from the journey. Reducing their monthly or weekly budget would be a smart one to reduce the risk even if the budget is been reduced by 60% or more  

The temptation is very loud and serious. To start with, this investor income is $2500 (30k ÷ 12) and that explains of the investors level of livelihood, under such glorious alarm of financial gain the temptation to change lifestyle would be the leading drive for many investors, the joy of having a amount of dollars in the bank that they have never had before definitely would be so high to the extend of even thinking of acquisition of somethings they only dreamt (that's by selling off their Bitcoin holding). But some will likely sell off there invested amount ($26k) to take another venture (business, children education, skill acquisition etc depending) and continue there weekly investment from there income and I think that's is the mistake I would like to make if I am under such circumstances.

[The Founding Titan]

Bitcoin is a highly valuable asset today because it has significant potential to offer benefits to those who approach it. It's perfectly natural for us to invest more money in investments that benefit us personally. However this also depends on our individual mindset. Not everyone wants to invest in Bitcoin. Some people may not believe in the guarantee of returns so Bitcoin investment is only for certain individuals who understand the ins and outs of investing. Once invested a clear mindset is essential to confidently pursue the long-term investment. This doesn't mean you can't invest in the short term but investing in Bitcoin over the long term is more structured and focused in achieving results. Some people find it difficult to believe in Bitcoin investments so everyone's mindset is different.

Our real task is to continue investing in Bitcoin without thinking about the results. If we place too much hope in what we want when the peak doesn't match our expectations we may always panic about investing in Bitcoin and ultimately no one will invest again because of the frequent failures in achieving profits.
One way to simply persevere in investing, especially long-term investing requires us to focus solely on waiting. The long term is not a short time. However with a mindset of waiting for results one must have patience so that our desire to invest is solely for profit. Although many may be skeptical we must have confidence in investing in Bitcoin. This is the mindset of someone who invests in Bitcoin without thinking about profits.

Yeah, I get what you mean buddy @cyberninja2, and you’re not far off at all. You see bitcoin really just isn’t the kind of thing that rewards impatience, and the reason why is because it moves in waves you know, like big runs, big drops and that alone can mess with people who expect it to always be steady.
Now most people don’t actually struggle in their investment just because Bitcoin doesn’t work or something, but because the ups and downs has quickly gotten to them and now they get in with high expectations, then panic when things dip and end up reacting at the worst time. Perhaps what tends to work better is keeping it simple and consistent instead of overthinking every move or trying to time everything perfectly, that way, you’re not constantly stressed by every price swing all the time.

I think this comes from the rush people have to get rich quickly from something they are doing and when most people see the current value of bitcoin they see as a quick card to get out of poverty but they fail to realize that it is not free manna from heaven that's just falling down for them to pick up, you can't have that much bitcoin in the blink of an eye and the price swing isn't dramatic enough for a person to grow from 1 BTC to 5 over night, this is the kind of promise alot of shitcoins make even when they can't keep it and it pushes people into thinking that bitcoin is the same way when it isn't, this misguided hope to become impossibly rich overnight is what leads to excessive panic when the price drops instead and they end up selling, reality shatters their false hope.

[Zackz5000]

Well that is true.  A guy could have such messed up finances that he is not really in a position to really determine that he has a sufficient amount of discretionary funds available to get started buying bitcoin, and availability of back up funds could be a part of that assessment, and it is hard to recognize any circumstances in which it would be justified to invest in bitcoin if there aren't any back up funds, unless the paycheck is coming the next day, and even then it could be risky, since paychecks sometimes do not come when they are expected to come.

The truth is back up funds are not even optional because it create discretionary funds. The more we dwell on this, the more it justify the need to invest with discretionary funds. Even with regular paycheck, it sometimes delay for one reason or another. If for instance, your investment in BTC today means you can't eat tomorrow if your pay is delay, then you are just gambling not investing. There are things you need to put in order even if you don't have up to 6 months expenses. You need to ensure your bill for the current cycle is covered. At least small buffer is necessary but most importantly, stable income is a must.

Investing in Bitcoin doesn't mean you will be accumulating Bitcoin all the time even when you don't have your discretionary income, you accumulate when you see that you have a discretionary income the day you don't have discretionary income you continue to hodl the one you have accumulated and sort out your basic needs first until you have your discretionary income.

Stable income is not a must for some one to get started with their Bitcoin investment if this is true somany investors now that is doing well wouldn't have started this journey, your income can still be unstable and still be accumulating Bitcoin what is important is having your discretionary income and while accumulating you can also be planning on how to increase your cash flow so that you will have more sufficient income to keep you accumulating more Bitcoin consistently and hodl for long, if you wait to have a stable income you may not get started and you will also be missing more good opportunity to accumulate so what is needed to get started with your Bitcoin investment is your discretionary income and not waiting to have a stable income first.

[Abbatty]

[edited out]

Maybe I misunderstood what you said yesterday but I get it now, I get fact that even small amount of money can be managed well, it just a matter of having a good income habit regardless your financial income. I get it now that having a good financial habit can prevent you from living a inflated lifestyle or wasting money on unnecessary things.

Getting to know your needs from wants will really help to be more financially disciplined, especially for people, young people who have low or no income growth.  Just like you said we have see people who barely get up $10 by the end of the week as discretionary income. Such people will definitely struggle with investment but also having a good financial habit might still help to invest no matter how little it might be.

There may be some young people who have some bad habits or maybe overly spending on some consumption goods that they don't really need, but they want to fit in with their friends and they want to have some enjoyment and spontaneity in their life, yet they could also try to figure out some ways to buy bitcoin on a regular basis (such as weekly), and maybe they vary their weekly buy amounts, and some weeks it is really low  and other weeks the buy amounts are higher, yet perhaps still with the passage of time, maybe 4-10 years or longer, they still end up in a better position by having had set aside some of their income into bitcoin rather than if they had not done so.. and sure maybe after 10 years they realize that they could have had done better, but they still end up having something to show for their 10 years or so of having had been buying bitcoin.

There are also some people who might start out buying bitcoin in a fairly whimpy way, but then after several years, they may well come to looking at the status of their bitcoin, their cash holdings and perhaps any other investment that they might have, and then they might realize that they might be better served to start to put a higher priority on their continued bitcoin stash building..and to thereafter figure out ways to both increase their bitcoin stash building and also to deploy practices to strengthen their cashflow management systems/practices (including building up the levels of their back up funds).

So basically if a person decides to start his/ her bitcoin journey, they might still be inconsistent with how much they put in their investment regardless of how much they earn because some some might be tempted to live an extravagant lifestyle or will want to fit in with their friends or peer pressure. So being inconsistent or investing with low funds might slow their accumulation but at the end they will still have something to show after a specific period of time no matter how small it might be.

So to my understanding it like you can’t have your cake and have it, because bitcoin investment comes with sacrifices and discipline.  so when you have a big discretionary income it best you invest with it rather than spending on what are not necessity because at the end you the amount of funds you invest with is what will stand for you in the future.

[EL MOHA]

So basically if a person decides to start his/ her bitcoin journey, they might still be inconsistent with how much they put in their investment regardless of how much they earn because some some might be tempted to live an extravagant lifestyle or will want to fit in with their friends or peer pressure. So being inconsistent or investing with low funds might slow their accumulation but at the end they will still have something to show after a specific period of time no matter how small it might be.

What JJG actually was trying to explain is that, there are People who actually have some character of spending lavishly on unnecessary things and at the same time they don’t give so much attention to bitcoin investment and usually just invest little more than they could have actually invested and in the near future they would see how there little stach is compared to the one they wasted and they would regret not investing more and could start to invest more, this is similar to traders who waste their money trading, they will one day realize that they should have invested more than trading when they later compare the two later,

Also this advises us that no matter your inconsistency you should still be investing any amount you can because at the end of the you would rather be better at small investment than no investment at all. This is clear advice to people that think they earn small and account invest now until they start making big money first, start that investment today with little amounts before you are able to get it big

[Cossyblack]

You make it sound as if having basic knowledge and understanding how to accumulate and knowing the best wallet to use is something complicated that takes time to learn. This is something that can be done easily. Anyone with common sense should be able to figure out their discretionary income and a person can start investing using a a reputable exchange to store your Bitcoin at first and as the investment is ongoing they can figure out which wallet is best for long term holding. The risk with exchanges is usually when you hold your coins there for a long period of time. So basically there's no reason to delay your investment just to have basic knowledge. You should invest as soon as your expenses are sorted and you have discretionary income left. Every knowledge can be pursued while your investment is ongoing so stop misleading people in here.

Many investors are still holding bitcoin in exchanges because they preferred it to be secured and easy to use than wallets but the disadvantages side of using exchanges to hold your bitcoin is that it could be hacked and your money will be completely loss especially if the exchange affected cannot refund you. Investors who likely hold bitcoin in CEX risked lossing their bitcoin assets if the exchange is hacked. It doesn't matter wether you are holding for a short or a long period of time or not, hacks can occur at any given time, you shouldn't hold your asset there rather you should transfer it at once into a non custodia wallets. If you can figure out discretionary income and a preferred exchange to buy from then it shouldn't take you time to undertand how they can be transfer  to a secure non custodia wallet.

[Jody.Drummer]

Therefore it would be wise to create at a 3-month backup fund without touching Bitcoin. This way you can invest in Bitcoin with a safety net.

How long do you think it takes a guy to build up a 3 month back up fund in fiat?  How does he balance his back up funds with his bitcoin buying?

What if a guy comes to learning about bitcoin and he wants to get started, and he knows that he has discretionary funds, yet he does not have any back up funds, how should such a guy proceed, from your point of view?  How much back up funds do you believe he needs before getting started buying bitcoin, and then once he gets started buying bitcoin should he continue to build his back up funds or not?  And then what happens once his back up funds are at a level of 3 months of his expenses?  Where is his bitcoin investment at such a time?  Presumptively the bitcoin is more volatile that the fiat in which his back up funds are kept.

In my view, for the time period it is uncertain too because in my opinion it depends on his discipline and whether or not he is consistent, besides that with someone who is just learning about Bitcoin and wants to start it and on the other hand he knows that he has free funds but does not have a reserve fund, then the action that must be taken is to focus more on his reserve fund first, because someone who is just learning should not be advised to accumulate some of his large funds in Bitcoin. And with the amount of reserve funds needed before starting to buy bitcoin it is uncertain also depends on our needs because everyone has needs that tend to be different. In addition, when he has started buying bitcoin, it is better of course to keep paying attention to the reserve fund so that this is not eliminated, maybe the exact thing is to be able to balance it so that everything goes well including with his learning with bitcoin.

[Different patterns]

Knowledge is going to be of no use if an individual failed to put it into practice, and being practical is also not the main issue, you also have to apply your sense of reasoning in order to make your knowledge more productive and fruitful. As an investor, someone don't have to teach you everything, besides it impossible to learn every single thing concerning investment from just one person. You have to research, and learn more in order to develop the hormone of sensitivity and have the ability to solve whatsoever problems you come across in the future. One thing about investment is that, sometimes you might find yourself in a situation which no one has ever dicuss it with you before, and the only thing that can help you is your sense, you have to apply your knowledge, skills, and personal experience.

That is why involvement is far more better than self exclusive... And this self exclusive is mostly done by folks, all in the name of gathering some therorectical knowledge.. Truth be told no one can fully or effectively teach or transfer onto another the experience and knowledge about Bitcoin investment... Bitcoin Investment is instead learnt more and so it becomes more clearer through an actual involvement...It is through involvement overtime that folks get to understand things like volatility, Bitcoin cycles, as well as patience which is very well required for long-term holding...

Experience (involvement) helps guys to balance their own cashflows in terms of how their income versus expenses might vary from month to month (or week to week), and including being able to both invest in bitcoin whether weekly or otherwise, and to build and strengthen their cashflow management systems/practices (including back up funds) at the same time in such a way that provides some protection (and cash cushion) in the ability to continue to build the bitcoin stash with the passage of time, even when various matters related to their income and expenses are ongoingly changing.

Of course, we also frequently suggest that BTC price and/or volatility should be less of a factor, even though it is something that everyone might account for, yet they might not necessarily need to learn about price and volatility if they are able to establish investment timeline goals that may well be 4-10 years or longer.

Yes, I agree with your point, experience helps people to realize that successful bitcoin accumulation is not only about buying bitcoin, but also about building stable financial system around it, over time guys learn how to balance their income, emergency funds, expenses and investments allocation in a way that allows them to continue stacking even when life situations change from month to month, that financial flexibility becomes very important because unexpected expenses will always happen. That’s the reason why having a long term timeline matters a lot, when someone thinking in terms of 4 to 10 years or more than, short term btc volatility becomes less important compared to consistency and maintaining healthy cash flow management.

If you can cover most of your expenses and emergencies for at least 4 weeks and beyond without touching your bitcoin, then you're good to start gradually.

This statement can be misleading to newbies since it goes contrary to what has been stated here and every other thread as to what is required to start bitcoin investment. I know @ sir Jay juan Gee have always stated that for a startup, an intending investor only needs to figure out a discretionary income to use and get started in buying and investing in bitcoin, which means once an individual who’s desirous to invest in bitcoin is able to figure out a discretionary income then the person is good to go in getting started in bitcoin investment and not really wanting to first build an emergency funds before he’s good to go. I’m not saying that the emergency funds is not important In our bitcoin investment, but all I’m saying is that one must not wait to build an emergency funds first before he can get started as he can start accumulating bitcoin and hold once his discretionary income is ready, he shouldn’t delay getting started trying to build the emergency funds as he can build the emergency funds along side while buying bitcoin and hold by using a part of his discretionary income for accumulating bitcoin and other part to building the emergency funds gradually.

Surely when any newbie gets started, back up funds have to be sufficient enough to assure that he is going to get to his next paycheck including accounting for any irregularities that might end up happening in regards to either his income and/or expenses, and so surely guys can end up starting out with back up funds that are nearly nothing, with a presumption that with the passage of time they are going to continue to improve their back up funds situation as they are investing into bitcoin, and since the cashflow and even income /expenses situations of each guy differs, he is going to be responsible for his own mistakes if he overly invests or under invests in bitcoin and the balancing of how much back up funds that he may well practically need to keep on hand in order to hopefully continue to make ongoing progress in both building his bitcoin stash size and strengthening his cashflow management systems/practices.

Yes, this is very important point because many newbies underestimate how necessary backup funds and proper cash flow management are when starting up their bitcoin journey.   even if someone begins with little emergency savings, what matters is to gradually improve with both their financial stability and their bitcoin position at same time rather than recklessly throwing everything into bitcoin at once.

Furthermore, since everyone has different income levels, expenses and financial risk, there can never be a one size fits all strategy. each person has to learn how to balance maintaining enough for emergency while still consistently investing within their means, if someone over investing and later struggles to cover expenses before the next paycheck, that can create stress and also force them to sell bitcoin at wrong time.

[MarjorieZimmermanGinger]

I also think that accumulation Bitcoin is not a difficult thing if you have any amount of discretionary income every week. But being consistent is important because if your fund are small, you have to focus on being consistent. It will not be as easy to carry Bitcoin as you think if you do not have a regular source of income or multiple sources of income. A person does not understand the torment of poverty until he reaches that stage. If you are financially well-off, you will not be able to understand how difficult it is for the poor to meet their basic needs.

To be honest, saving Bitcoin is difficult but it is complicated for those who have the mental preparation to trade and the mindset of getting rich in a short time. Those who suffer in investing are those who do not have a risk-tolerant fund system and panic when the price drops.

This is a difficulty felt by most poor people because it is almost certain that they will never think about investing in financial conditions that are not good, but instead they think about how to meet their living needs together with their family. But views like this must also be changed and as much as possible, people who are in this situation must be able to make money so that they can make a portion of investing with small amounts because the most important thing is not how big or small the amount is but how they can be consistent in making the investment steps they take.

If they are able to make money every month then when the money is set aside to invest in bitcoin, the assets they own will slowly grow by themselves. The correct analogy for investing in bitcoin is a marathon, not a sprint because patience and discipline are much more important for some people whose finances are not yet stable.

[alankasman]

Yes, it is true that we can gain knowledge during our investment. A Bitcoin investor does not need any special knowledge in the initial stage. Before starting investment, he only needs to generate discretionary income. And with discretionary income, he can invest freely and also gain basic knowledge. Those who are in the very initial stage of collecting Bitcoin only have to start investing. One reason for saying this is that they will definitely get some benefits from starting this.

But the beliefs we discuss here are still difficult for beginners to believe in what we discuss because many of them believe in the knowledge they gained before starting so they find it difficult to follow what Bitcoin investors often do where they tend to gain more knowledge after they invest. Therefore for me it is not surprising if some of us sometimes want knowledge first before they start investing because even if we force them to follow what we say of course for them they will not listen. They should first understand what the goals are of what we discuss so that they can ultimately determine which one they should follow in making the right investment to start with another reason they can also achieve success in investing based on the knowledge they have.

It is true because many mistakes made by beginners or some parties are caused by not having discretionary income even though discretionary income is part of the requirements for those who invest in Bitcoin so the right thing for them before starting to invest in Bitcoin is that it would be good for them to first look at the discretionary income they have so that they will be easier and freer in investing in Bitcoin because their knowledge over time they will also get what is the main part that they must have so that their knowledge will be freer and maximum in making investments based on the basic knowledge they have.

[GhostOfBitcoin]

How long do you think it takes a guy to build up a 3 month back up fund in fiat?

It completely depends on the income and savings rate of a person. Let's say a person's monthly expenses are 30,000 taka. Then his 3-month backup fund will be 90,000 taka. If he saves 10% of his income (let's say 3,000 taka) every month, it will take him 30 months or two and a half years to accumulate 90,000 taka. And if he can save 30% of his income (say Rs. 9,000), then this fund will be created in just 10 months. For a common man, it should usually take 6 to 12 months to create an ideal backup fund, so that there is no extra stress in daily life.

How does he balance his back up funds with his bitcoin buying?

Bitcoin is very volatile. A Bitcoin that is worth $60,000 today may be worth $45,000 tomorrow. The best way to maintain balance is to use a percentage split. Let's say that after deducting all expenses every month, he has an extra $10,000 (Discretionary Fund). He can divide it like this: 70% in fiat backup: 7,000 taka will be deposited in the bank or as liquid cash. 30% in Bitcoin: He will buy Bitcoin (DCA - Dollar Cost Averaging) with 3,000 taka every month. Why this balance? If any sudden emergency comes, he should not have to sell Bitcoin at a loss. The fiat fund will give him that security.

What if a guy comes to learning about bitcoin and he wants to get started, and he knows that he has discretionary funds, yet he does not have any back up funds, how should such a guy proceed, from your point of view?

For someone who is new and not used to Bitcoin volatility, it is risky to put all the money directly into Bitcoin. He should follow a hybrid strategy. First, set aside at least 1 month of living expenses in fiat currency (cash/bank) with the entire discretionary fund. You should not buy Bitcoin until you are sure of this. Once you have 1 month of backup, start buying Bitcoin. But not with the full amount. Keep 70% of the extra funds each month in Fiat backup and use the remaining 30% to DCA (Dollar Cost Average) Bitcoin. Continue like this until the day your Fiat backup fund becomes equal to 3 months of expenses, stop keeping money in backup. From then on, you can safely invest 100% of your optional funds each month in Bitcoin. Fiat backup will protect your present, and Bitcoin will build your future.

How much back up funds do you believe he needs before getting started buying bitcoin.

Before getting fully immersed in Bitcoin, you should have at least 1-2 months of living expenses in fiat currency as a backup. Because if you buy Bitcoin today, it can drop by 20-30% tomorrow. If you don't have a 1-month backup and a medical emergency arises during that time, you will be forced to sell Bitcoin at a loss. Therefore, a minimum 1-2 months of fiat backup is a safety shield for entering the Bitcoin market.

Then, once he gets started buying bitcoin should he continue to build his back up funds or not?

Yes, of course, he should continue, but change the ratio. When the backup fund is 0-1 month, the focus will be: 80% backup / 20% Bitcoin. When the backup fund is 2 months, the ratio will be: 50% backup / 50% Bitcoin. Fiat accumulation cannot be stopped until the backup goal (3 months) is met. Because the volatility of Bitcoin is much higher than that of Fiat.

then what happens once his back up funds are at a level of 3 months of his expenses?  Where is his bitcoin investment at such a time?

When a person's backup fund equals 3 months of their essential expenses, they are in a much more secure financial position. This means they no longer have to worry about selling Bitcoin in an emergency. They can then accumulate Bitcoin over the long term with relative confidence. For example, if someone's monthly expenses are 30,000 taka, then after having an emergency fund of 90,000 taka, he can invest a large part of his extra income in BTC. His Bitcoin position at that time may not be very large, but it will be stable, low-risk, and sustainable in the long run.

[Livingleged]

Therefore it would be wise to create at a 3-month backup fund without touching Bitcoin. This way you can invest in Bitcoin with a safety net.

How long do you think it takes a guy to build up a 3 month back up fund in fiat?  How does he balance his back up funds with his bitcoin buying?

What if a guy comes to learning about bitcoin and he wants to get started, and he knows that he has discretionary funds, yet he does not have any back up funds, how should such a guy proceed, from your point of view?  How much back up funds do you believe he needs before getting started buying bitcoin, and then once he gets started buying bitcoin should he continue to build his back up funds or not?  And then what happens once his back up funds are at a level of 3 months of his expenses?  Where is his bitcoin investment at such a time?  Presumptively the bitcoin is more volatile that the fiat in which his back up funds are kept.

In my view, for the time period it is uncertain too because in my opinion it depends on his discipline and whether or not he is consistent, besides that with someone who is just learning about Bitcoin and wants to start it and on the other hand he knows that he has free funds but does not have a reserve fund, then the action that must be taken is to focus more on his reserve fund first, because someone who is just learning should not be advised to accumulate some of his large funds in Bitcoin. And with the amount of reserve funds needed before starting to buy bitcoin it is uncertain also depends on our needs because everyone has needs that tend to be different. In addition, when he has started buying bitcoin, it is better of course to keep paying attention to the reserve fund so that this is not eliminated, maybe the exact thing is to be able to balance it so that everything goes well including with his learning with bitcoin.

What is being  discussed  here is clear enough  for anyone  that has interest  in bitcoin  investment,the first thing to consider  is your source  of income. Once that is checked, you look  at your  espenses, Bill either  monthly  or weekly  sometimes  it can be daily  it all depends  on your cash flow. Identify  your Discretionary  income any how you call it reserved  funds, it should  be that the funds that the potential  investors  is going  to use us the funds that is left after he has sorted  his expenses  and it's what if left that he's going  to use for his investment.
The Discretionary  income must necessarily  be a very big amount, you can start accumulating  with as little  as you can consistently  and you'll definitely  see the effect  of it when  it compound  over a period  of time.

Another advice @JJG gave just recently  in one of his reply  was that of those investors  that could  have done better with there investment  but decide  to live a lifestyle  that doesn't  allow  them to accumulate much because of lavish  spending. They could  have accumulated if they had choosed a simpler  lifestyle. And in the future  they will regret  not putting  more into their investment  and it will be too late then cus they might be old and not have the resources and time again.

Once  you are ready for the investment  give it your  all, the only thing  that will stop you is only when your source  of income  is no longer there or is having  challenges that you are finding  it difficult  to handle  your espenses  then you need to pause  for the meantime and figure  out your self get yourself until  you  realize  your discretionary  income again then you can continue  with your the investment.

[gracreavix]

There may be some young people who have some bad habits or maybe overly spending on some consumption goods that they don't really need, but they want to fit in with their friends and they want to have some enjoyment and spontaneity in their life, yet they could also try to figure out some ways to buy bitcoin on a regular basis (such as weekly), and maybe they vary their weekly buy amounts, and some weeks it is really low  and other weeks the buy amounts are higher, yet perhaps still with the passage of time, maybe 4-10 years or longer, they still end up in a better position by having had set aside some of their income into bitcoin rather than if they had not done so.. and sure maybe after 10 years they realize that they could have had done better, but they still end up having something to show for their 10 years or so of having had been buying bitcoin.

There are also some people who might start out buying bitcoin in a fairly whimpy way, but then after several years, they may well come to looking at the status of their bitcoin, their cash holdings and perhaps any other investment that they might have, and then they might realize that they might be better served to start to put a higher priority on their continued bitcoin stash building..and to thereafter figure out ways to both increase their bitcoin stash building and also to deploy practices to strengthen their cashflow management systems/practices (including building up the levels of their back up funds).

You are overly correct JJG, when it comes to young men and women, they tend to spend and manage money impulsively based on pressure from friends and the need to fit in socially, and that can really be detrimental to their finances and accumulation of Bitcoin over time.

I myself was once a victim of that mindset too. I had to intentionally learn and study how to properly manage and segment my income before I stopped falling victim to unnecessary spending and impulsive lifestyle decisions. Because most times it’s not even about not earning enough, it’s more about not controlling where the money goes.

And once I became more disciplined financially, it directly affected the rate at which my Bitcoin stack was growing. The consistent accumulation started making more sense to me than trying to impress people temporarily with things that don’t even hold long term value.