JJG’s Outline of Bitcoin Investment Ideas

[JayJuanGee]

Holy fucking shit Big Dirams!!!
I said that guys have to assure that they have discretionary funds and make sure that they are not investing beyond their discretionary funds, so that they have to make sure that they have at least a minimum amount of back up funds so that they do not accidently spend beyond their discretionary funds...

And fore some reason you consider 3 months of back up funds to be some kind of a bare essence starting amount for back up funds?
If someone has absolutely no back up funds but they have discretionary funds, it could take them a year or two before they are even able to accumulate 3 months of back up funds, so you think that it is even close to reasonable to wait to invest in bitcoin while they "shore up" their back up funds?  

Even though each of us has to figure out some balance, your level of belief in holding and/or building up fiat comes off as ridiculously high and to keep poor people having fun staying poor.  Poor people are never going to even build up their cash to 3 months of their expenses without some kind of smart strategy that might involve something like bitcoin and also focusing on bitcoin building and/or cashflow management strengthening that likely would be something that would be most plausibly built together, especially for any guys who might be ongoingly struggling with discretionary funds.

What I’ve noticed is that some people are all talk and no practice. Practice gives you the full experience of all the theoretical knowledge one gathers. Imagine someone thinking that the backup funds of about 3 months worth can be achieved in a short time as to wait before they start their investments.
They forget building backup funds comes from the discretionary and this is like 10-50% of the main income, and in that discretionary you have to share it into building the backup, investing and maybe personal treats…
Building backup upto like 3 months of expenses is a strong financial goal that investors have to attain to just to provide cushion for their investments, it is not something to be achieved in a short time, might only be possible for a rich or wealthy person who already have loads of reserves.

Some aspects of either investing into bitcoin or building up back up funds make hardly any sense if they are not put into practice.

I do understand that there are guys who either have absolutely no discretionary funds or they struggle on a weekly (or monthly?) basis to generate enough income to pay for all expenses, and even to have enough confidence that enough income will be generated for the upcoming weeks and/or month.

Further there may well be guys who are students in high school or students in college or still live with their family, so they may well not be generating income on a regular basis, and even though I am not really trying to have a thread that addresses the issues of minors who are still under the supervision of their parents, at the same time, there may be a bit of a realistic angle in which young people transition into adult-hood, earning their own income and supporting their own monthly living costs.

So there may well be some guys talking in theory rather than practice, yet they may well be trying to make some efforts to put these ideas into practice in some kinds of ways instead of just talking about these ideas without any practice and/or practice attempts.

Now, regarding the point about having or building up cash cushions of 3 months, that hardly makes any sense in the context of striving to make bitcoin investments, and many times, guys are going to come to bitcoin with some kind of already existing practice of keeping some money in a bank, under their mattress, in the cookie jar or in some place in which they are going to have money, if they need it or want it prior to the next time that they are anticipating getting paid....

So yeah, in recent times, when we have been talking so much about guys starting from absolutlely zero back up funds, that is largely meant to show a point that it can be reasonable and possible to start investing in bitcoin with absolutely no back up funds, yet at the same time to be simultaneously be building the back up funds, so that it really would seem dumb to put money into bitcoin and to not have any back up funds at all, so there is some need to consciously build those back up funds from  zero if that happens to be the starting point that any beginner finds himself in.

Another thing is the goal of getting up to 3 months of back up funds, and surely getting up to 3 months of back up funds would be coupled with ongoingly building the bitcoin holdings too, and since the bitcoin holdings are likely to ongoingly be volatile, the bitcoin holdings that are being built could be going up, down and/or sideways during the ongoing process of also building up the back up funds, and most likely both the balance and the pace that any particular newbie builds up his bitcoin and his back up funds will relate to his own particulars that involve both the regularity (or irregularity) of his income and/or expenses, and perhaps other matters related to his timeline, risk tolerance and other personal factors.

I am investing in bitcoin and at the same time I’m also building my backup funds, thankfully I’ve not had any reason to touch my emergency but it’s been a year plus and I’ve not saved up to 3 months of expenses as back up cos I’m prioritising my investments.
Imagine I had to wait till I have built my backup funds to start investment. I wouldn’t have been able to accumulate the amount I have currently.

Yep.  This is exactly the matter of both getting started, and trying to make ongoing and regular progress, and it can take quite a bit of discipline to put yourself into a position in which you are not tapping into your back up funds while you are ongoingly building your bitcoin holdings too... and sometimes it can take several years before you might witness some level of evidence that your ongoing building of your bitcoin stack size is paying off, yet even if you have some weeks that you might be able to invest $200, and other weeks you invest $100 and other weeks you invest $25 and various other results that might even include some weeks that your cashflow is just too tight so maybe you cannot buy bitcoin during some of the weeks, yet at the same time, each week that you buy bitcoin, you can specifically measure that your sats are ongoingly going up, even if they have some weeks that they go up at a lower rate.

So there can be some abstract value that comes from just seeing yourself get over certain thresholds of sats - maybe getting over 100k sats, getting over 1 million, and even various other thresholds along the way that you consider to be considerable ongoing progress that you can pat yourself on your back about, even if there might be quite a few people in your real world surroundings that might not know the details of your own measurements of ongoing progress.

For sure, the extent to which you might feel that you get up to 3 months of expenses may well relate to the reliability of your income/expenses and the extent to which you feel that you need that cash cushion, and if you end up fucking up because you don't have enough back up funds based on some relatively severe downfall in your income and/or increase in your expenses, then you realize that you may well end up having to tap into your bitcoin at a time that was not convenient. .and so you may well likely not be totally lost if such an event were to happen, yet guys can calculate those kinds of potential risks.. and at the same time, guys who have been building their bitcoin for close to 2 cycles or even more than 2 cycles are likely going to be in a different position from guys who had been building for only a year or two and/or less than a whole cycle. If each of the categories are growing, and bitcoin investors are not being overly rigid in their own assessments of what they need to do (or prefer to do), then it is likely that back up funds (and the various ways that they are kept) are likely going to grow much beyond 3 months, even though it might not make sense to be locking up that much actual cash in back up funds in the earliest of times of building up the bitcoin holdings, yet at the same time, the balance is that any guys who fuck up and have too few back up funds/resources, they could end up causing their own demise in their own bitcoin holdings that could have had built at a much better rate and could have had been protected in much better ways.  So, yeah, each of us has to figure out and follow a balance that feels comfortable and is built upon an adequate amount of reason (and perhaps trial and error, too?).

The 3 months of basic expenses for emergency funds is absolutely a smart idea and with such approach we can see the journey would be less traumatizing and easily we can keep up with the constant accumulation because no more emergency that will pop up and won’t get sort out. 
Starting investing without options for emergency funds can be very risky but when we get it set aside then instantly it guide us from any unforeseen circumstances and also it save us a lot fortune by not seeing our holdings as an option to sell while investing.
  However the best long term approach is by long term holdings when we stay disciplined and hope for a 4-10 years of holding. That really brings much sustaining and sufficient value.

Wait what? Why is this a smart idea? honestly even though it's good, you will only hinder your investment considering that securing a reserve fund for 3 months is clearly not a short time so you actually miss a lot of time to buy bitcoin just because of the wrong focus in this case.

By the way, even a guy who might come to bitcoin for the first time, and if he is considering investing into bitcoin and he already happens to have 3 months of expenses in cash, then he may well need to consider that he has absolutely no bitcoin, and 3 months of cash, which on the face of it is largely an obvious imbalance, so he may well have to take half of that 3 months cash and allocate it to bitcoin and keep the other half as his back up funds.

So, then at that point, he has a lump sum that he can consider for three options of 1) buying right away, 2) DCA and/or 3) buying the dip

AT the same time, he likely would also be considering his anticipated income and how much discretionary income he expects with that, and he can consider the amounts to use to 1) invest, 2) save and/or 3) discretionarily consume.

It is good to have a reserve fund but don't focus too much on it because what we want to do is invest and just because of meeting the reserve fund standards then you throw away the opportunity to buy bitcoin as soon as possible for me it's wrong.

If we are seriously considering both getting started in bitcoin and then figuring out and following some kind of an ongoing bitcoin buying situation, then we are likely considering how to balance what cash (and other resources) we are starting out with, what income and expenses that we have and what might be a meaningful pace to build up our bitcoin (and our back ups) so that we can make some progress in building our wealth and potentially bringing better options to ourselves in the future, even though it may well take some efforts to put those systems in place and to follow them... even if it might take 4-10 years or longer.

We already have money that we are ready to buy bitcoin because our intention is to invest but we are busy with collecting reserve funds even for security for the next 3 months? That's not the way I feel about investing.

It seems guys focusing on accumulating cash are distracted, especially since cash does not tend to hold its value too well and cash is pretty much guaranteed to lose around 7% of its purchasing power each year (depending on where we are at and depending on which shitty currency we might be holding).  Of course, we likely have to hold onto some shitty currency since many times our bills are denominated in shitty currencies..so we have to ongoingly hold onto some of the shitty currencies and we may well also be earning our income in such shitty currencies that are not really worthy of holding for extended periods of time nor in large quantities, since the large the quantity of the shitty currencies that are held, then the greater the loss in actual value of that currency, which makes it quite difficult to actually build up the shitty currencies to be more valuable in actual future purchasing power, whether referring to goods and/or services.  

But, yeah, we have to hold onto some of the shitty currencies, and guys who struggle to earn enough of that shitty currency (in order to have extra of it) have difficulties converting at least some of their shitty currencies into better currencies (such as bitcoin) and/or other assets that hold their value better than the shitty currencies, not that it is even as practical for many people to be able to buy various assets that are better than shitty currencies but not as good as bitcoin... bitcoin is the superior of currencies to be trying to accumulate and hold, even for guys who are poor, so long as they are capable of generating enough income to be able to ongoingly accumulate it and hold it.

I started from fomo not even knowing what bitcoin was because I was just buying when my partner did. I knew bitcoin just to the extent of crypto and in it there is such a thing as bitcoin no more than that when I bought the first time but after I bought because it deals with money then I studied it further and it turned out that my initial assumption was clearly a mistake.

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.

The most important basic for any newbie is merely figuring out the extent to which he has discretionary funds available and figuring out how to get started, whether it is $100 per week, $10 per week or some other amount, and surely any newbie should be able to adjust his position size (starting out amount) in accordance with his comfort level and/or his knowledge level, and frequently the newbie may well not know what he does not know, yet he still is in a position to exercise his own independent judgement in regards to whether he wants to start and if so, then how much he wants to start with.

I didn't even consider this because from the beginning like I said, I started from fomo so I didn't pay attention about the amount which is the most important thing I bought because I didn't want to be left behind by some of my closest people who bought first.

You run considerably great chances of fucking yourself if you are merely throwing money at bitcoin without both making sure that you are not investing beyond your discretionary funds and if you are not ongoingly making sure that you have sufficiently quantities of back up funds so that you can survive through periods in which your income might go down and/or your expenses might go up.

You have to protect yourself (perhaps from yourself?) since no one is going to give any shits about whether you lose money if you are not engaging in sufficient protections of yourself in regards to both your building of your bitcoin holdings and the ongoing building and strengthening of your back up funds.

Sure, it is not easy to build wealth.  It tends to take time, yet if you have decently good systems in place, you will be able to take advantage of any situations in which you are either able to invest more into bitcoin and/or even to increase your aggressiveness in buying bitcoin based on ongoing growing strength of your cashflow management systems/practices.

My initial thought was that if I bought quickly then I could make a quick profit too so I didn't look for any references because the most important thing was to buy.

That comes off as a trading and/or gambling mindset to me, since none of us really have any fucking clue if bitcoin is going to go up, down or sideways at any given time, and sure we have some reasonable expectations that bitcoin is amongst the best of places (if not the best?) to put value on an ongoing basis with a consideration that its price trajectory is going to ongoingly be up, especially on longer term time horizons such as 4-10 years or longer.  Yet, of course, there is no guarantee that bitcoin prices are going to go up, even if we do everything perfectly.  We have to figure out some balance so that we are more likely to be ongoingly building and also ongoingly protecting ourselves and our bitcoin stash.. especially as our bitcoin stash may well start to become bigger and BIgger and BIGGER... ..

so maybe in the first cycle or so, we might not really feel that our bitcoin stash is becoming big, yet with the passage of time, we likely are ongoingly learning how to hold it, and perhaps keep some bitcoin in cold storage, some in medum storage and other bitcoin that we might be willing to use, whether we are keeping it on chain or in some forms that we might be able to use it.... and yeah, in recent times, there do not seem to be as many guys using bitcoin, even though one of the powers of bitcoin is to be able to use, it, yet it does not seem to be a good idea to be spending bitcoin (except maybe spend and replace) when guys are still building up the size of their bitcoin stash.. which tends to take time, maybe even 4-10 years or longer.

But the more I tried to find more information, the more I knew how and what I should do, including the consideration of how much money we should spend so that we don't hamper our investment and life needs.

Good.  If you have been ongoingly learning as you go, then there still be various times in which any of us could have had made some mistakes or even had some wrong (and bad) ideas, yet if we were ongoingly learning and trying to put better practices into play, then it may well be the case that both our bitcoin holdings got larger and also our cashflow management systems/practices got stronger.

Slowly I evaluated the steps I took that I considered not very appropriate and today I am still in investment even though it all started from fomo. This proves that in the end it all comes back to each person regardless of how we start

Sure.  Some guys consciously try to learn and to improve their systems and practices, and other guys might give bitcoin and/or cashflow management a lower priority, and they may well end up making fairly large mistakes based on their not putting time and energies into considering what they are doing and making sure that their plans and practices are lining up with various aspects of their personal goals and specifics.  I personally like the idea of trying to put systems in place in which bitcoin buying is happening every single week no matter what... especially in the first couple years and perhaps for more than a whole cycle, since it tends to take so long to really build up bitcoin holdings, unless guys are able to front load their bitcoin investment based on other investments that they might choose to reallocate into bitcoin.  Otherwise, normal people are largely ongoingly working from their regular income, and so they might not have very many occasions in which they really are able to front load or lump sum.. even some guys who might have good jobs, they may or may not get yearly bonuses.  

From my perspective forcing yourself to buy every week or otherwise frequent basis helps to both reinforce action with theory and also provides motivation to learn from anything that might need to be adjusted, even if some guys might not engage in extensive reviews very often.. maybe once a quarter at most.  

And, even in your own situation, you have been registered on this forum for 4 years and presumptively in bitcoin during that time, so there are examples of so many guys who proclaim to get into bitcoin and they cannot even create some systems and/or practices that facilitate their lasting a whole cycle.

, the important thing is to buy first as long as we can afford it, I don't want what I did to be considered right because obviously it was wrong from the start about the consideration of the amount that should be determined but what I want to emphasize is the purchase because not a few novice investors wait instead of buying immediately.

It seems that getting started is important, and sure there have been quite a few guys who might got into bitcoin too heavily and perhaps even started buying bitcoin in faiirly aggressive ways at the top of the market, yet they did not really have any way to realize that they were buying at the top of the market, so sometimes it can take time for guys to recover from some of their early mistakes, and I am not even claiming that I did everything perfectly, yet surely it is quite difficult to know, and we largely act upon information that we have and it might be difficult to make certain kinds of adjustments,

so we can just do what we do and perhaps attempt to pace ourselves to ongoingly be prepared for BTC price moves in any direction and even attempting to be prepared for potentially extreme BTC price moves that might happen, and surely many times if we can get through more than a whole bitcoin cycle while mostly emphasizing on buying and holding (and mostly not fucking around with trading and/or shitcoins), the it is quite likely that we will find ourselves in a fairly decent place after getting through a whole cycle, and even if we might consider ourselves as still learning and still building, if we have accumulated bitcoin and built our back up funds during that time, then likely we would be able to see that we are in a much better place from our efforts and our sticking with our various systems/practices.  Of course, there are not any guarantees.

So many misinterpret about the Bitcoin investments it’s not important that a person who has interest to invest in the Bitcoin most get the backup funds before he/she can invest in the Bitcoin, in as far they can able to start up investments with any amount of money i think its not necessary that they most have the backup funds; once they start the investment they will build the backup funds later.

Sometimes it maybe that way, I can tell you many people who I know that told me they can’t invest in bitcoin without a backup plan they have their own reason which is still okay. They don’t want to touch their investment in a wrong time, they rather have a backup plan before doing anything that will touch their investment. So you can see that people like this have a good reason of securing their backup plan before investing in bitcoin, so backup plan before investing is still reasonable.

Yep.  There are many guys who fuck up by erroring on the side of waiting rather than acting, and likely an overwhelming majority of times, they have enough discretionary funds (and back up funds) to get the fuck started rather than fucking around waiting and also building up back up funds that are likely shrinking in value faster than they can build them up.

There is no reason to prioritize waiting, fucking around or giving excuses for guys who ongoingly fail/refuse to get the fuck started.

I do understand that any new activity requires some efforts to get comfortable with it, and surely there are some guys who might have a lot on their schedule, so they do not have a lot of time to look into bitcoin, so maybe a guy who tentatively assesses that he could probably invest $100 into bitcoin on a weekly basis, he might purposefully choose to start with $30 per week until he is able to clear up some aspects of his schedule so that he might be able to spend more time (maybe even a couple of hours per week) to look further into bitcoin and/or cashflow management matters.

Yeah, it’s true but do you know that those who can not build their backup funds are more than those who can afford to build backup funds before investing? So in this case we should stop using that words that they need to have back funds before starting invest, because it will discourage most newbie’s that have interest to invest in the Bitcoin.

Backup funds is very important as long as you want to invest in for a long period of time,

Of course, back up funds are important, yet as long as guys have discretionary funds they can get the fuck started and they can build their back up funds and their bitcoin holdings at the same time..  Perhaps you already have some back up funds that are part of your already existing practices?  Perhaps if you had already gone through some kind of a tight cashflow situation in which you had lost income and/or suffered increased expenses, you might feel that you have to build your back up funds back up to where they had been prior to your tight cashflow situation.. so surely, there could be some specific reasons that guys might need to make sure that they have enough back up funds that allow them to feel comfortable that they are spending within their discretionary funds and not spending from funds that they actually need in order to pay for current and/or upcoming basic expenses.  Anything is possible, yet to me, it seems that you are just blanketedly giving too much pioritity to levels of back up funds that are not likely to be even close to as important as you are making them out to be.

Perhaps you can give some example that helps to illustrate why your hypothetical person (who is supposedly short on back up funds) is not in a place to get the fuck started rather than fucking around with unnecesary and perhaps even counter-productive delays in terms of getting his bitcoin investment started.

don’t try to make any wrong move you don’t have any other money than the money you invest in bitcoin, that’s a dumb move.

That would be dumb to invest in bitcoin and have absolutely no back up funds, so newbie bitcoiners should not be doing that.

Advisable have a backup funds incase of any emergency needs, you don’t have to touch your investment but without backup funds you will touch the investment and maybe at lose.

Maybe you need an example to be more clear about why you think that there is some value in building back up funds first, since we are in a bitcoin investment thread, and we are trying to figure out ways to both get started investing into bitcoin and also to make some progress in terms of emphasizing building wealth through bitcoin, even for guys who are quite poor.. yet, for sure each guy needs to get to a level of having confidence that he has discretionary funds and that he is intending an investment timeline of 4-10 years or longer, so yeah, for sure, guys who have no discretionary funds or they are quite low on discretionary funds that they cannot even have confidence about being able to  over their basic expenses within a reasonably foreseeable future, then guys with that level of income (discretionary income) might not be in a sufficiently enough strong position to be able to buy bitcoin.

By the way, several times,  I had given examples of hypothetical guys who have relatively low income (and low discretionary funds) and they also are starting without any back up funds, so then they start to build their discretionary funds at the same time that they are buying bitcoin, and take the example of a guy who might have an income of $600 every month, and basic expenses of $400..and yeah, he has $200 in discretionary income, so he may well decide to invest $66.67, save $66.67 (in his back up funds) and discretionarily consume $66.67.  If he consistently does that, then after a year he would have had invested $800, saved $800 (2 months of expenses) and discretionarily consumed $800.  After a year, he would be in a much better place and he would even have had built up 2 months of expenses.  Of course, there can be all kinds of variations in which guys finances are messed up, yet it seems to me that as long as guys have sufficient discretionary funds then they can get the fuck started, and they ONLY need to minimally make sure that they are not spending beyond their discretionary funds rather than building up back up funds prior to getting started.

Sure, the less discretionary funds that a guy has to work with, then the harder it might be to get started investing into bitcoin, so if he ONLY has $30 per month in discretionary funds, then it might be difficult, since he would only have $10 for each of the three categories.  There are other guys who have debt servicing and other complications that take away from their having discretionary funds, yet the main calculation remains discretionary funds rather than back up funds as long as the back up funds are large enough to make sure that the guy is not investing beyond his discretionary funds.

[NewRevelation]

We create emergency funds to meet urgent needs. Creating an emergency fund is very important in investment because any financial problem should not cause any shortage in the investment. Therefore, when deciding to invest, priority should be given to emergency funds.

I agree with you that we should think about an emergency fund/backup fund. But it is not necessary to make it a priority in a way that delays starting to save Bitcoin. Especially for those who are new, there is nothing wrong with starting with a small amount and building a backup fund at the same time.

In addition, financial stability is important to continue the investment continuously. Therefore, the right amount should be determined without keeping a large part of the discretionary income in investment. So that financial priority is given in every case.

It actually depends on your cashflow, expenses, backup funds, income stability, debt, family duty, and risk tolerance. If someone already has a good backup fund, then they can give a large portion of their discretionary income to Bitcoin. Again, if someone's financial structure is weak, then they will probably be stressed if they give a large portion to Bitcoin. Therefore, it is better to decide for yourself what portion of your discretionary income should be given to Bitcoin, considering your own financial situation.

So many factors are to be truly considered before making such a allocations. A person who has a larger expenses at the end of the nknthyor week may opt for little more discretionary income compared to someone with a little more discretionary. The first is your basic needs, and after that, discretionar. And if this is done, how you allocate your Discretionary to your investment, emergency funds and other back up funds lagerly depends on your priorities. But for good investment growth and achievements, it's best we prioritice our investments, given a little bit higher to our investment while we gradually grow other funds

[Crytohillss]

Guys are fucking retarded and/or gamblers if they start to buy bitcoin and they have absolutely no back up funds.

If they do not have back up funds then they cannot assure that they have discretionary funds.

If they do not have discretionary funds they cannot invest in bitcoin, since they would be using money that they need for their expenses.  

If they use money that is meant to be for their expenses, then that is gambling not investing.

There are probably already way too many guys who get into bitcoin, and they think that they are going to turn over their investment in a short time (such as less than 4 years), and that is trading (or gambling) - not investing.  I personally don't recommend either trading or gambling when it comes to bitcoin.

I do understand that there are some beginners who are not psychologically ready to commit to 4-10 years or longer, and I would not discourage those guys from investing into bitcoin, even though they are not able to commit, so long as they are using discretionary funds to buy bitcoin, since what can happen is that a guy can get started buying bitcoin and continue to look into bitcoin and thereby come to the realization that to be investing, the timeline is 4-10 years or longer.. ... So, it could take a bit of studying and looking into bitcoin before guys are able to figure out the difference between trading and investing and also come to realize that bitcoin is an investment, not a trade.

For sure, this thread is about investing and not about trading, even though surely from time to time, ideas about trading and/or even ideas about shitcoins end up having to be discussed to a certain level in order to help guys to both come to better understand the difference between trading and investing and also to come to realize that bitcoin and shitcoins are not the same thing, even though there are all kinds of mainstream sources and even a lot of guys in the regular world who neither know the difference between bitcoin and shitcoins and/or they do not know how to talk about bitcoin or to come to focus on bitcoin first kinds of ideas.. rather than getting into disinformation about shitcoins.

Putting money into Bitcoin that one might need for rent bills, or emergency, that's speculation at best and reckless at worst I think the biggest problem isn't Bitcoin it's expectations some persons enter the market hoping for quick profits, and when that's the objective, it begins looking more like gambling than investment, any investment should fit within a good financial plan including an emergency fund and along enough time horizon to take care of volatility.

[Creeper0]

"Bitcoin first or backup fund first" can be confusing. It is definitely important for new investors to start with Bitcoin, because I doubt that they will ever start if they wait for everything to be perfect. But that doesn't mean that a backup fund or emergency fund should be considered less important.

If you are talking about starting from scratch, then I would choose investment first, then backup fund. Backup fund needs a main subject to back up, which is investment fund. If there is no investment fund, then maybe we have nothing to back up. This advice is only in the field of investment. If we consider real life, the advice will be different, in which case you can create a backup fund at any time.

To start investing or in the initial stage of investment, investment fund may be more important and you should start investing without any excuse or delay. When you feel the need for a backup fund or your investment fund becomes significant, then you can keep some part of the discretionary money for the backup fund. Or if you have more discretionary money than you need (more than the planned investment amount) at the beginning of the investment, then you can start preparing a backup fund from the beginning. In this case, you should acquire knowledge about financial management as soon as possible (after starting to invest), otherwise you may put your investment funds at risk due to incorrect financial management.

[MusaPk]

Sometimes we tend to speak of backup fund so much that we forget that our top priority is to start investing, for someone this new in to bitcoin invest your priority should be how to invest more than creating a back up fund. Sometimes a lot folks tends to make a grieve mistake and even allocate much more in back up funds than in their investments.

As a person who have been in their bitcoin investments journey or long they should make it necessary to have an emergency fund but for a new persons who just start their journey they should prioritize their investments so much than thinking of back up funds.

No one is perfect from day one. As we start bitcoin investment we get to know more about how to effectively invest in Bitcoin. If you are beginner then your main goal apart from getting started is to figure out how much backup funds are necessary for long term investment. If you focus too much on stuff like preparing backup funds, buy the dip then you might getting yourself late in getting started with Bitcoin investment. If you are no coiner then getting started must be your top most priority.     

[JayJuanGee]

I agree with you, emergency fund and bitcoin investment are supposed to work hand to hand. Many people focuses only on  accumulating bitcoin but they forgot that life can bring expenses at any time. If someone does not have an emergency funds and when problem comes up, they may be forced to sell their bitcoin at the wrong time, maybe when the market is down. Which can actually make the person lose both money and future gains. That is why new investors are supposed to have an  emergency funds and still continues to invest through DCA. DCA is a very good strategy because it helps to reduce stress of trying to predict the market, and it also helps to buy consistently and focus more on longterm investment. Emergency funds are very important it gives peace of mind and it also helps investors to avoid making financial decision mistakes especially during difficult situations.

I want to ask a question. What if you have a problem and the emergency fund you have is not enough to solve your problem? Will you be tempted to sell your Bitcoin? I think someone in a situation like this and one who invests in Bitcoin but does not have an emergency fund are in the same category.

Having an emergency fund is a good thing, but it is important for one not to let not having an emergency fund stop them from investing in Bitcoin. We shouldn't make it seem as if an emergency fund must be there before one invests in Bitcoin. The most important thing is to start buying and to hodl, and as the investment proceeds, planning to establish an emergency fund will take place. I think this must be kept in mind; investing in Bitcoin may be difficult for some investors, especially those who are not financially sound but are just managing to buy Bitcoin.

Some level of back up is needed, even for brand new investors, so that they do not buy bitcoin beyond their discretionary funds... and so the longer that any of us is buying bitcoin, we likely would be simultaneously building up our back up funds and perhaps at a similar rate that we are investing into bitcoin, and yeah it can take quite a long time to start to feel that any shortages in income and/or increase in expenses might end up resulting in completely depleting whatever back up funds had been built and then if there is no money left, then the person will have to start to tap into some or all of their bitcoin to the extent that they are not able to either increase their income (get it back up to earlier levels) and/or decrease their expenses.

It seems to me that new investors (and perhaps especially poor people) might take time to build up their bitcoin investment and/or their back up funds, and surely not all new bitcoin investors are starting completely from zero.. and many times they are starting with some quantity of funds that they have and also some assessment in regards to the adequacy of their discretionary funds in order to get started investing into bitcoin (and building up their back up funds, to the extent needed) in ways that are not putting intollerable stresses on their finances and/or their psychology. .and perhaps also at least accounting where they are at in regards to their 9 individual factors.

Holy fucking shit Big Dirams!!!
I said that guys have to assure that they have discretionary funds and make sure that they are not investing beyond their discretionary funds, so that they have to make sure that they have at least a minimum amount of back up funds so that they do not accidently spend beyond their discretionary funds...

And fore some reason you consider 3 months of back up funds to be some kind of a bare essence starting amount for back up funds?

If someone has absolutely no back up funds but they have discretionary funds, it could take them a year or two before they are even able to accumulate 3 months of back up funds, so you think that it is even close to reasonable to wait to invest in bitcoin while they "shore up" their back up funds?  

Even though each of us has to figure out some balance, your level of belief in holding and/or building up fiat comes off as ridiculously high and to keep poor people having fun staying poor.  Poor people are never going to even build up their cash to 3 months of their expenses without some kind of smart strategy that might involve something like bitcoin and also focusing on bitcoin building and/or cashflow management strengthening that likely would be something that would be most plausibly built together, especially for any guys who might be ongoingly struggling with discretionary funds.

Who even came up with this whole “3 months backup fund is a must rule” in the first place ?, it’s not even a law or anything. The whole point of the 3 months backup fund idea is for you to have a breathing space with your investment so that a random emergency will not throw your life off balance and make you take bad financial decisions. But it is not a rule that you complete before you can start investing.

Historically, and even from time to time currently, I like to emphasize some targets that guys might want to try to achieve so that they might start to feel that they are in stronger place with both their bitcoin and also the level of back up funds that they have, and surely, guys have to start from where they are at, and an overwhelming majority of normal people are not going to hold that much cash unless they have some reasons to do so, like they have a business or maybe they have some future expenses that they are expecting to have to pay.

When folks invest, they tend to have more reasons to hold more cash, and especially for something like bitcoin when it can be quite tempting to tap into bitcoin based on both how liquid it tends to be an also how volatile that it also tends to be.

Any amount of backup funds is okay for you provided you start investing ongoingly with your discretionary funds,

Well?  To start investing in bitcoin, we likely should be able to start from where-ever we are at, yet there are likely a good number of people who really do not know where they are at off of the top of their head beyond perhaps some ballpark ideas about their having enough money in their bank (or wherever they hold their money?) to cover their expenses until the next time that they are paid and also perhaps they also have some ballpark ideas that they have a bit of extra money, which tends to be their practice since I have  a hard time imaging very many people who don't become extremely uncomfortable if they don't have enough money to cover all of their monthly (or weekly) expenses... so many folks who earn a regular income and who have regular expenses, they will tend to have some level of either a running tally in their head or maybe some already existing practices in which they have some kind of a cash cushion that they are able to make sure to not usually violate.

If we are just starting investing in bitcoin, we likely cannot start with any amount of back up funds, since we likely have to have a least a bare minimum that will give us large enough confidence that we are not using money that is beyond our discretionary funds... otherwise, I get your point that there could be a vast array of potential amounts of money that guys could have in their back up funds, yet at the same time, if the amount is at a certain low level, they might not have enough money (and/or back up funds) to really have confidence that if they were to buy bitcoin that they would not be using money that is beyond their discretionary funds.

you don’t have to be waiting to have one perfect emergency fund before you can start investing.

I am not sure what you mean.  If guys come to bitcoin, and they are already in the habit of keeping $1k in combination of locations that involve their bank account, under their mattress, in the cookie jar and in the bottom drawer of the filing cabinet in their parent's garage, then surely if they come to bitcoin and those funds are already present, then they likely would not have to build additional funds, merely because they are buying bitcoin, yet if they had used some of those funds in recent times, maybe they would prefer to get the funds back up to their accustomed levels before they start to buy bitcoin. 

Sometimes, I consider that it might be problematic to refer to back up funds as emergency funds in the context of bitcoin, even though I personally believe that it is a better practice to build and maintain higher levels of back up funds once a guy starts to invest into bitcoin, and from my point of view the funds are not merely protecting in the class of emergency, but instead giving newbie bitcoiners more and more options to have funds on hand and to increase flexibility and perhaps to NOT tempt guys into tapping into bitcoin at a time that is not of their choosing,

yet at the same time, if newbies end up getting themselves into a practice of ongoingly buying bitcoin on a weekly basis and also ongoingly adding to any back up funds that they have, then they may well get into a habit of ongoingly building how much back up funds that they are keeping so that they are not tempted to tap into bitcoin during those periods that they are ongoingly buying bitcoin.. weekly perhaps, and even with goals of ongoing buying of bitcoin for 4-10 years or longer... so  perhaps any guy who is new to buying bitcoin is way too new in his accumulation journey to give any thoughts to doing anything other than ongoing buying of bitcoin and ongoing building his back up funds.. yet as each of these continue to grow, and he goes through years of bitcoin accumulation, his past experiences and even the size of each of the funds is likely going to continue to inform him to the extent that he might need to make any tweaks to what he does in the present or into the future based on what he did in the past and his so far progress within the categories and any categories that he might be measuring to assess his level of ongoing (hopeful) progress.

Perhaps folks should be more focused on investing instead of them waiting for everything to feel safe first, they should know that they can certainly start small and then they should try to stay liquid enough for them to be able to handle any shocks that happens and still building stability and growth step by step too.

I am not going to argue against any of those ideas.  There is never going to be any perfect, and guys can just get started and do their best to balance and perhaps start out slow as they are getting used to how the ongoing buying of bitcoin and the ongoing setting aside of back up funds affects their comfort and/or their abilities to discretionarily consume, to the extent that discretionary consumption might also be a factor.

[edited out]

There's no rule that obligate investor or any people to have 3 month, 6 months or even a year backup funds. But this is a good guidelines to follow, since this gives great breathing space for people especially if there's a emergency situation happen.

It does not seem to be a good idea for guys to have close to 6 months or even up to 12 months of back up funds and absolutely no bitcoin.

That seems like bad guidelines, and they better use some of those funds to buy bitcoin rather than keeping so much money in cash.

What is the purpose of holding so much cash?  Are they retarded?

The more bigger their emergency funds the low risk for them to commit bad financial decisions.

That is not correct.  Cash is not a good place to keep value... so it is already a bad "financial decision" if a guy had been building up savings with so much cash that is likely losing value faster than his ability to add to it.

This is how important to have discretionary funds since they can separate their money on good things that can help their lives improve. With this they can steadily build their investments while staying in good shape and enough to handle those immediate financial challenges.

We are talking about bitcoin here, and if a guy first hears about bitcoin and he has a bunch of cash, then he better fucking get started buying bitcoin with a lot of that extra and likely wasteful cash... .. He can consider lump sum, DCA and/or buying dips with some portion of the seemingly excessive cash that he has built up.

He can also consider whatever level of discretionary funds that he has coming in to ongoingly buy bitcoin, but also consider the extent to continue to save and/or discretionarily consume. 

Of course, he can also consider where he is at with his 9 individual factors, yet it seems that if there are some guys with something like 12 months of their expenses in cash and no bitcoin, they sound like a completely lost puppy to me, and they might have a lot to learn and get the fuck started in bitcoin as part of the process of relieving them from their seeming historical dumbness.

[Lembo69]

If a person has absolutely no savings for an emergency fund and his income is uncertain, then creating an emergency fund should be given more priority. However, if the emergency fund is not completely created, few percent has created. And the investor is sure that he can set aside money for the emergency fund along with investments from his income, then investment can be started without delay. And along with investment, an emergency fund can be formed. As a result, financial security can be built and the habit of investment can be started. And when the emergency fund reaches an acceptable level, then the investment portion can be increased. I think emergency fund and investment should be considered as parallel financial goals, so that security and wealth growth are combined.

I would like to add some personal comments to your words. Your words are reasonable but should we really give importance to the emergency fund first. I do not think that we should start investing without worrying about our emergency fund first. In fact, many investors do not know when we should create an emergency fund. If an investor wants to invest in Bitcoin, he can move towards creating an emergency fund after a year or a half. But in my personal opinion, it is better for an investor to divide his discretionary income into 2 parts after 2-3 months of starting the investment.

He will invest 50% of his discretionary income in Bitcoin, and the remaining 50% for the emergency fund. If he wants to keep more money for investment and less for the emergency fund, he can do that too. But first, we have to see what his actual source of income is. If his income is stable, then he can do both investment and emergency fund together.Someone's way of earning money may be different or there may be family pressure, so it is not necessary to set aside exactly 50%. This is just an example.

But if his income is unpredictable, then he should start thinking about creating an emergency fund as soon as he invests in Bitcoin and should set aside money for creating an emergency fund. However, an emergency fund is not mandatory for a new investor. Those who want to invest in Bitcoin for a long time and want to get through the Bitcoin investment journey. Their investment is always in jeopardy without an emergency fund.

According to you, of course, we should keep an emergency fund even if we think about our security and wealth growth. More than that, we should think that an emergency fund is a friend of danger. So that if I fall into a well, I can think that there is someone to throw me a rope. An emergency fund not only helps to free investment from worries, but also helps to free our daily life from worries

[Big Dirams]

Putting money into Bitcoin that one might need for rent bills, or emergency, that's speculation at best and reckless at worst I think the biggest problem isn't Bitcoin it's expectations some persons enter the market hoping for quick profits, and when that's the objective, it begins looking more like gambling than investment, any investment should fit within a good financial plan including an emergency fund and along enough time horizon to take care of volatility.

The right approach towards bitcoin investment is making availability of that discretionary income. And discretionary is the left over funds remaining after sorting our bills. Not using funds that are for bills into investing that totally wrong, Our main priority is the discretionary funds then we can start our journey as soon as possible.

The mindset of an investor hoping for quick returns is just traders mindset and that not what we welcome in bitcoin investment. The long term mindset is what we prioritize because traders mindset wouldn’t give us the future goals we are aiming for. 

[Padi24]

I do understand that there are some beginners who are not psychologically ready to commit to 4-10 years or longer, and I would not discourage those guys from investing into bitcoin, even though they are not able to commit, so long as they are using discretionary funds to buy bitcoin, since what can happen is that a guy can get started buying bitcoin and continue to look into bitcoin and thereby come to the realization that to be investing, the timeline is 4-10 years or longer.. ... So, it could take a bit of studying and looking into bitcoin before guys are able to figure out the difference between trading and investing and also come to realize that bitcoin is an investment, not a trade.

Personally I don't see this readiness as much of a big deal, a beginner is supposed to be more worried about ways to figure out their discretionary income, if they already have their  discretionary funds figured out then the next thing is getting started I don't just know why some people are seeing this current dip as if it's the first time of happening of course it has been happening right from the very beginning and yet the price keep increase over the years, the thing is that some people have not take a proper look at bitcoin I mean tracking the movement of bitcoin from years back, and then compare it to what is happening now, if they do I'm sure they won't hesitate to get started. but it's fine since they are not psychologically ready to commit thier self into bitcoin, I just hope they don't end up regretting.

[Silikiem]

Sometimes we tend to speak of backup fund so much that we forget that our top priority is to start investing, for someone this new in to bitcoin invest your priority should be how to invest more than creating a back up fund. Sometimes a lot folks tends to make a grieve mistake and even allocate much more in back up funds than in their investments.

As a person who have been in their bitcoin investments journey or long they should make it necessary to have an emergency fund but for a new persons who just start their journey they should prioritize their investments so much than thinking of back up funds.

No one is perfect from day one. As we start bitcoin investment we get to know more about how to effectively invest in Bitcoin. If you are beginner then your main goal apart from getting started is to figure out how much backup funds are necessary for long term investment. If you focus too much on stuff like preparing backup funds, buy the dip then you might getting yourself late in getting started with Bitcoin investment. If you are no coiner then getting started must be your top most priority.     

Sure for a start, if an investor is able to sort out his basic needs and he still have a discretionary income I believe such person can start investing In bitcoin. They must not get everything perfectly done and figured out when starting out but they should know they need to invest with their discretionary income first and every other thing they might be needing going forward in their long term investment plan can be figured out as they continue with the accumulation of bitcoin and hold for long term goal.

[Abbatty]

We have many investors out there who can afford to build their backup fund before they invest, and we also have those who can build their backup funds within a month, so it definitely depends on your earnings. Bitcoin investment is not something you must do with all your income, you can buy according to your earnings, and don’t invest everything in Bitcoin. Even if it’s just $10 or $20 you can afford monthly or weekly, it can grow in value over time.

Yeah, it’s true but do you know that those who can not build their backup funds are more than those who can afford to build backup funds before investing? So in this case we should stop using that words that they need to have back funds before starting invest, because it will discourage most newbie’s that have interest to invest in the Bitcoin.

Guys are fucking retarded and/or gamblers if they start to buy bitcoin and they have absolutely no back up funds.

If they do not have back up funds then they cannot assure that they have discretionary funds.

If they do not have discretionary funds they cannot invest in bitcoin, since they would be using money that they need for their expenses.  

If they use money that is meant to be for their expenses, then that is gambling not investing.

There are probably already way too many guys who get into bitcoin, and they think that they are going to turn over their investment in a short time (such as less than 4 years), and that is trading (or gambling) - not investing.  I personally don't recommend either trading or gambling when it comes to bitcoin.

I do understand that there are some beginners who are not psychologically ready to commit to 4-10 years or longer, and I would not discourage those guys from investing into bitcoin, even though they are not able to commit, so long as they are using discretionary funds to buy bitcoin, since what can happen is that a guy can get started buying bitcoin and continue to look into bitcoin and thereby come to the realization that to be investing, the timeline is 4-10 years or longer.. ... So, it could take a bit of studying and looking into bitcoin before guys are able to figure out the difference between trading and investing and also come to realize that bitcoin is an investment, not a trade.

For sure, this thread is about investing and not about trading, even though surely from time to time, ideas about trading and/or even ideas about shitcoins end up having to be discussed to a certain level in order to help guys to both come to better understand the difference between trading and investing and also to come to realize that bitcoin and shitcoins are not the same thing, even though there are all kinds of mainstream sources and even a lot of guys in the regular world who neither know the difference between bitcoin and shitcoins and/or they do not know how to talk about bitcoin or to come to focus on bitcoin first kinds of ideas.. rather than getting into disinformation about shitcoins.

On this I totally agree with you on this, I see you talking about financial responsibilities, risk and psychological readiness and willingness required when investing in bitcoin for a long time. Sometimes these few factors are being misunderstood by newbies And they end up confusing trading for investing. With such mindset they easily end up investing funds that are meant for their needs into investing. At they end they will be forced to trade rather that investing because they will end up holding for a short period of time.

Honestly talking about This in this thread help to change some of their mindset and put them in the right direction and help them to know that bitcoin investment is meant to be hold for a long period of time because the purpose of your investment is not to meet up with your current need but to help you have a very reasonable future.

[JayJuanGee]

[edited out]

What a person does with their reserve fund can be said to be up to their discretion, you could decide to still go on that vacation alone instead of with your girlfriend and no one will hold that choice against you or at least no one has the right to hold that choice against you since it was solely yours to make in the first place, your emergency fund on the other hand has a clear cut purpose, I definitely won't consider having an actual emergency in front of me but deciding to sell my bitcoin instead of using my emergency fund that I set aside specifically for situations like this one but instead I will use my emergency fund and make sure to replenish it so if another emergency situation comes up again I will be able to brase myself for it but without discretionary income I will not be able to do that since I need my discretion income (past or current) to be able to set up both my emergency fund andy reserve fund.

Yes.  each of us can set the parameters for any of our spending, savings and the conditions upon which we spend.

So for example, we might consider the paying for lodging to be a basic expense, since the consequences are quite high for not paying it, even though it could take a bit of time before getting evicted from the house.

We also might consider paying for food and water to be necessary, and if we run out of money to pay for food and water, we could die or maybe we have to resort to stealing, until we get locked up.. then maybe the food and lodging becomes free, unless we end up receiving a death penalty for our actions of stealing food and water.

[edited out]

Putting money into Bitcoin that one might need for rent bills, or emergency, that's speculation at best and reckless at worst I think the biggest problem isn't Bitcoin it's expectations some persons enter the market hoping for quick profits, and when that's the objective, it begins looking more like gambling than investment, any investment should fit within a good financial plan including an emergency fund and along enough time horizon to take care of volatility.

You are saying that a guy has to create a financial plan before starting to buy bitcoin?  and/or starting to invest in bitcoin?  If so, what needs to go into the "financial plan?" before he gets started?

"Bitcoin first or backup fund first" can be confusing. It is definitely important for new investors to start with Bitcoin, because I doubt that they will ever start if they wait for everything to be perfect. But that doesn't mean that a backup fund or emergency fund should be considered less important.

If you are talking about starting from scratch, then I would choose investment first, then backup fund. Backup fund needs a main subject to back up, which is investment fund. If there is no investment fund, then maybe we have nothing to back up. This advice is only in the field of investment. If we consider real life, the advice will be different, in which case you can create a backup fund at any time.

To start investing or in the initial stage of investment, investment fund may be more important and you should start investing without any excuse or delay. When you feel the need for a backup fund or your investment fund becomes significant, then you can keep some part of the discretionary money for the backup fund. Or if you have more discretionary money than you need (more than the planned investment amount) at the beginning of the investment, then you can start preparing a backup fund from the beginning. In this case, you should acquire knowledge about financial management as soon as possible (after starting to invest), otherwise you may put your investment funds at risk due to incorrect financial management.

A beginner who has absolutely no back up funds cannot be sure about investing with discretionary funds.

[Different patterns]

Emergency funds and/or back up funds is something that guys build up over time, so even if they are starting out with a small level of back up funds, their ongoing investing into bitcoin and simultaneously adding funds to their back back up funds will likely cause the back up funds to grow and grow and grow.

Some folks make the mistake of not investing in bitcoin early, their thinking is that they need to fully build their emergency fund before they start investing into bitcoin. Which is totally waste of time, as building emergency funds and investing can often happen side by side. Emergency funds are not just build over night. But they can grow gradually through consistent savings from one’s income, even if someone starts with small back up funds, the really important thing is to keep adding to it regularly, as time passes both of them the emergency funds and bitcoin investment can grow together, as back up always services as a protection against any unexpected expense, this balance the approach provides for investor to avoid the risk of selling their bitcoin during emergency. Inteadof choosing one over the other, individuals can focus on building both gradually, but the key is consistency and proper financial planning over the year.

[JayJuanGee]

Emergency funds and/or back up funds is something that guys build up over time, so even if they are starting out with a small level of back up funds, their ongoing investing into bitcoin and simultaneously adding funds to their back back up funds will likely cause the back up funds to grow and grow and grow.

Some folks make the mistake of not investing in bitcoin early, their thinking is that they need to fully build their emergency fund before they start investing into bitcoin. Which is totally waste of time, as building emergency funds and investing can often happen side by side. Emergency funds are not just build over night. But they can grow gradually through consistent savings from one’s income, even if someone starts with small back up funds, the really important thing is to keep adding to it regularly, as time passes both of them the emergency funds and bitcoin investment can grow together, as back up always services as a protection against any unexpected expense, this balance the approach provides for investor to avoid the risk of selling their bitcoin during emergency. Inteadof choosing one over the other, individuals can focus on building both gradually, but the key is consistency and proper financial planning over the year.

Part of the advantage of setting up systems (such as places to source coins) and then even just little by little buying bitcoin and buttressing back up funds, is that it can take time, just to put systems in place.  Once the systems are in place then they can be increased or decreased and also a bit of an incentive to have vehicles to learn from.

[Nheer]

[edited out]

[edited out]

I agree with you to the extent that you are proclaiming that some things are not basic nor required, such as the need to self-custody coins or to learn about self-custody prior to getting started investing in bitcoin.  I also agree with you that the most important thing for a newbie is to determine whether he has discretionary funds available that he believes is sufficient to get started investing in bitcoin and he can figure out what he needs to learn as he goes in his bitcoin investment.

I don't really agree with your attempted suggestion that guys cannot decide to hold bitcoin on exchanges, even though surely any of us who spent time learning about bitcoin realize that self-custodying bitcoin is superior as compared with holding bitcoin through third parties, such as exchanges, yet I would also suggest that guys have to figure out these ideas related to self-custody and bitcoin key management for themselves, and even if many of us already existing bitcoiners might prefer that they come to the same conclusions about the superiority of self-custody, we still need to be careful in terms of our own imposition of our values on them, even if we might not consider those who hold bitcoin on exchanges and who hold paper bitcoin derivative products as true bitcoiners, yet it still could take some time before some newbies are able to recognize and appreciate the difference between holding private bitcoin keys and not holding them.

Well you made a good point and I guess my I didn't put out my point clearly but I wasn't saying that using exchanges is totally wrong. I was trying to say that beginners can always start to store their Bitcoins on exchanges but shouldn't hold on exchange for too long, my point was so they don't start to think it's totally safe to store their Bitcoins on exchanges throughout their investment time. they need to be aware of the risks of using a third party platform.

Sure.  There are a lot of guys who are dumb, and there are a lot of guys who will ONLY cursorarily explore whether and how to self-custody coins.

There will be some guys who are technically capable of self-custodying, yet still choose not to.

Bitcoin is better off if more normies self-custody their coins and even if they use their coins to transact with each other, yet bitcoin still does not require them to do so, and they have to come to their own conclusions in regards to whether they want to self-custody and to figure out how to do it.

Yes.. self-custody is better... yet guys taking responsibility is a good thing too.. .and guys making their own choices is good too.

There actually might be some guys who are quite challenged in regards to self-custody, yet are you saying that they still need to both learn how to do it and to do it?  They might get burned on the exchange, yet they also have to decide for themselves the trade-offs and figure out the risks.

Of course guys who are quite challenged in regards to self custody shouldn't be forced to it, self custody is not free of risk even though it's the ideal way to hold your Bitcoin it also has its own risks and also responsibilities which if forced on someone who is not ready can be costly, they could easily make a mistake and lose their Bitcoins. It's just as you've said, self custody shouldn't be made compulsory for everyone, we all have the right to make our choices of how and where we store out Bitcoin so even beginners should be allowed to learn self custody gradually and make their own decisions. To some convenience is more important to them than self custody that's why they need to make their choice.

You're right Bitcoin is better off if more people self custody their Bitcoins because it's good for the network and its even in line with bitcoin principle of everyone having financial freedom and control of their money but even if self custody is made compulsory not everyone will use it. Some folks may find it difficult to learn and use while some might be capable of self custodying but still chose not to, probably because they find exchange more convenient for them. Everyone has equal rights to try to understand self custody and choose what is more convenient for them and also accept the consequences and responsibilities attached. Like when a person chooses to hold their Bitcoin on exchange they are accepting to trust a 3rd party to hold their Bitcoins and someone who chooses self custody is accepting the responsibility of holding their Bitcoin and securing your wallet recovery phrase. Self custody is best but guys need to be allowed to realize what is best for them no matter the consequences is a good thing as well.

[alankasman]

...

Some folks make the mistake of not investing in bitcoin early, their thinking is that they need to fully build their emergency fund before they start investing into bitcoin. Which is totally waste of time, as building emergency funds and investing can often happen side by side. Emergency funds are not just build over night. But they can grow gradually through consistent savings from one’s income, even if someone starts with small back up funds, the really important thing is to keep adding to it regularly, as time passes both of them the emergency funds and bitcoin investment can grow together, as back up always services as a protection against any unexpected expense, this balance the approach provides for investor to avoid the risk of selling their bitcoin during emergency. Inteadof choosing one over the other, individuals can focus on building both gradually, but the key is consistency and proper financial planning over the year.

What we can say is if not today when else, that's the right thing to say to those who don't start early because if we do it now in the future we might have more of the amount we have invested so this is something that is rarely done by us today who may be more concerned with things that don't need to be thought about for example someone prefers to build an emergency fund rather than investing but what they need to know is that they can use the emergency fund simultaneously with investing so that sometimes they don't know how to do it so in the end, they prioritize how to build an emergency fund first rather than investing in Bitcoin so that in the end they are left behind by people who build an emergency fund simultaneously when they invest in Bitcoin.

Indeed, consistency has always been our topic of conversation and even whenever we persist in investing of course the main thing that we must do is always consistent so that the goals we achieve by using consistent methods will certainly make us safer in doing so that in the end we know how to maintain the expenses that we often make can be maintained well and not be as greedy as we did before even though we spend without expecting the amount of what is clear for each expense of course every expense will lose the money we hold so that day by day the money we hold will run out without us expecting it.

[MusaPk]

Sure for a start, if an investor is able to sort out his basic needs and he still have a discretionary income I believe such person can start investing In bitcoin. They must not get everything perfectly done and figured out when starting out but they should know they need to invest with their discretionary income first and every other thing they might be needing going forward in their long term investment plan can be figured out as they continue with the accumulation of bitcoin and hold for long term goal.

If you have 3 to 4 months of backup funds and a discretionary income at your disposal then this will be an ideal kind of scenario to start investing in Bitcoin. If I talk about myself then I made lot of mistakes in the beginning of my investment but as I continue my investment journey I learned a lot. I corrected myself after spending few months in Bitcoin and making mistakes. We discuss and write many things here which are good guiding principle for any person who is about to start investing in Bitcoin and if he follow that then he can easily avoid mistakes which we made in the start.   

[BluebloodCXVI]

Part of the advantage of setting up systems (such as places to source coins) and then even just little by little buying bitcoin and buttressing back up funds, is that it can take time, just to put systems in place.  Once the systems are in place then they can be increased or decreased and also a bit of an incentive to have vehicles to learn from.

One of the things that people sometimes overlook is that buying in small amounts of Bitcoin isn't just only about building a position, but It is also a way to see how well your finances can actually hold up in the real world. You will learn pretty quickly whether your budget can handle regular purchases, whether your backup fund is enough when life throws something unexpected at you, and how you react when Bitcoin suddenly drops and these are the things that you can't really learn from just reading about them alone.
In my opinion, starting small will give you room to make mistakes and learn from them when the stakes are low so that by the time you're putting more money in, you would have already learned a lot about both Bitcoin and about yourself.

[Morayoam91]

If a new investor has extra funds they can use that fund as an emergency fund and allocate a large part of their discretionary income to regularly invest in Bitcoin. If you don’t have an emergency fund when you start investing in Bitcoin you should set aside a small amount of discretionary income to cover emergencies.
It is important to deposit Bitcoin in the DCA method in the long term and to have an emergency fund to protect your holdings because while it is important to accumulate assets, it is even more important to focus on maintaining them because it is better to be prepared for emergencies that may arise.

If you don't have separate savings to handle the risk, you will fail to carry your holdings forward in the long term, because when you suddenly need money, you may have to sell your holdings to meet that need. Set aside a safe portion from your regular income to create a fund for emergencies, then invest the remaining money and feel free to keep your plans clear going forward.

[Brizi5000]

Sure for a start, if an investor is able to sort out his basic needs and he still have a discretionary income I believe such person can start investing In bitcoin. They must not get everything perfectly done and figured out when starting out but they should know they need to invest with their discretionary income first and every other thing they might be needing going forward in their long term investment plan can be figured out as they continue with the accumulation of bitcoin and hold for long term goal.

If you have 3 to 4 months of backup funds and a discretionary income at your disposal then this will be an ideal kind of scenario to start investing in Bitcoin. If I talk about myself then I made lot of mistakes in the beginning of my investment but as I continue my investment journey I learned a lot. I corrected myself after spending few months in Bitcoin and making mistakes. We discuss and write many things here which are good guiding principle for any person who is about to start investing in Bitcoin and if he follow that then he can easily avoid mistakes which we made in the start.   

It is left for people to decide how much of their discretionary income they may be needing to allocate for back up funds. they may need to have to start bitcoin investments because for me I think it is better to start off with at least a little back up funds than having a zero back funds, so yea they should decide how much they can allocate as back up funds to start with but then they must not wait until they have 3 to 4 months back up funds before they can start because most persons it might take them years to achieve this amount and could even make them not to invest in bitcoin again as a result of waiting for years to get the 3 to 4 months back up funds ready as something might happen to them in the future and they might used the money for another thing and end up not getting started or having to buy even any bitcoin . So yea they can start investing in bitcoin even with the discretionary income they have available by using some part for buying bitcoin and other part to save for emergency or various back up funds gradually because the back up funds is something that we keep building up and grow over time if we are consistent in allocating some amount to it no matter how little while we are accumulating and investing bitcoin.