JJG’s Outline of Bitcoin Investment Ideas

[Alpen]

There’s no need to reinvent the wheel when you can just follow existing strategies in the market. I actually adapted Michael Saylor’s approach for myself. Originally, he bought Bitcoin using a portion of his company's business revenues. Similarly, I opened a business account with Cryptomus and receive part of my payments in various cryptocurrencies. I almost always put the Bitcoin I get into staking. It’s safer that way—otherwise, I’d probably withdraw and spend it, but this keeps it locked away. However, I’m in the red this year. My average entry price is over $80K.

[JayJuanGee]

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.

I think starting out with 3 to 4 months of back up funds is too much cash.

Such a person may need to allocate half of his back up funds to buying bitcoin right away or nearly right away in order to bring better balance to his starting out situation.  Of course, he can choose to 1) invest right away with the funds, 2) DCA and/or 3) buy on dips that might not come.

Of course, allocating and/or reallocating the 3-4 months of back up funds into bitcoin is only one part of the approach since we may well be assuming that discretionary income is going to be available and as the discretionary funds come in (each week or month) then the guy will be able to allocate some reasonable proportion of the discretionary income to bitcoin 1) investing, 2) savings (back up funds) and 3) discretionary consumption.. so perhaps after several months both the bitcoin holdings and back up funds will grow to similar levels, and so if the guys starts out by reallocating back up funds to bitcoin, within a relatively short period of time, both his back up funds and his bitcoin will have similar amounts, such as 1.5 months to 2 months in each of the funds, and after several more months, they might both equal 3-4 months of his expenses.

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.   

Yep.  Each person has to figure out how he is going to deal with matters, and this forum provides a way to bounce ideas of off other members.. and perhaps to improve without having to make as many mistakes or maybe not making as many large mistakes?

There’s no need to reinvent the wheel when you can just follow existing strategies in the market. I actually adapted Michael Saylor’s approach for myself.

That sounds dumb to copy Saylor.  Hopefully you do not fuck things up for yourself too much.

Originally, he bought Bitcoin using a portion of his company's business revenues.

Yeah.  Originally, he started out by buying around $250 million of his cash reserves which was about 75% of his then cash reserves. After that he used various financial instruments that individuals would never be able to create and/or to get investors... so he used other people's money to buy bitcoin using his company's reputation (and his reputation) that individuals are not easily able to get the kinds of terms that he was able to achieve.

Similarly, I opened a business account with Cryptomus and receive part of my payments in various cryptocurrencies.

We are ONLY talking about bitcoin in this thread... so fuck off with your discussion of various cryptocurrencies.   

Hopefully you at least know how to focus, and since this is a thread about my investment ideas, then maybe you could at least read some of my early posts in the thread so that you can at least attempt to stay somewhat on topic.

I almost always put the Bitcoin I get into staking.

Bitcoin does not have staking, and you seem to be promoting various paper bitcoin products, which I also do not recommend.

If you are an individual, there is no reason to not start out with bitcoin first, and no need to be greedy.. since we are also talking about investing in this thread, not trading and not fucking around with paper bitcoin - unless maybe you have some good reason for doing that kind of thing, such as having investment accounts that are limited or maybe if you are beginning you might start out buying paper bitcoin rather than real bitcoin as you are getting used to the idea of buying bitcoin.

You, on the other hand, seem that you are coming to the thread to troll or derail, so I might have to delete your posts if you cannot figure out a way to at least try to stay on topic.

It’s safer that way—otherwise, I’d probably withdraw and spend it, but this keeps it locked away. However, I’m in the red this year. My average entry price is over $80K.

Hopefully you can figure out ways to not talk about trading practices or products and you might learn what the thread is about.

You have ONLY been registered on the forum for slightly more than a year, so being in the red may well not be unusual, even if you started investing in bitcoin (if that is what you are doing?) around a year ago.

 Even guys who have been doing regular investing in bitcoin in the past 1-2 years may well be in the red, so being in the red should not be any kind of a meaningful problem for any guys who might be investing in bitcoin and who might have a 4-10 year or longer investment time horizon.

[Nheer]

You said it rightly and I agree with you, everyone has to be allowed to choose for themselves and gradually understand how important 8self custody is. Pressuring beginners into self custody immediately is wrong and self custody shouldn't be imposed on beginners rather they should be allowed to gradually understand it with time. As they gain more experience they will be able to know if they want full control of their Bitcoin or not.

Ultimately some folks are going to get screwed from 3rd party custody, and many folks might not even realize that part of the reason so many folks got screwed in the FTX matter is because they failed/refused to take self-custody, and then FTX only had around 1 out of 1,000 (perhaps even less) of the BTC they proclaimed to have had... They were also printing make believe tokens called FTT (that are still being sold on the market), and surely those tokens were not really backed by anything tangible, either... but billions and billions of dollars worth of value had flowed into that exchange in a relatively short period of time, and so many people bragged about how easy their interface was to use...so yeah.. a lot of people can get screwed, and even rich and famous people, institutions, and even pensioners who relied upon their pension administrators to be managing their pensions without devolving into gambling.

Over and over, there are thoughts that normies would learn their lessons, yet they continue to trust 3rd parties and even hold their value in such products that are not even bitcoin, but instead derivatives of bitcoin, yet at the same time, the power of bitcoin comes from self-custody and abilities to transact directly with bitcoin, yet so many of us do not transact directly with bitcoin and don't even know how to do it or the difference between a 3rd party custodial app and the real bitcoin... yet we cannot force individuals into self-custody even if more and more normies self-custodying bitcoin and transacting in bitcoin seems best for them and also best for bitcoin... yet governments, institutions and status quo rich folks do not want normies holding their own coins and/or directly transacting in their own coins so they create obstacles and disincentives that each of us has to figure out and overcome if we are going to self-custody a decent amount (perhaps a majority or even higher) of our coins.

Self-custody and transacting directly in bitcoin is an ongoing dilemma that is best for each of us, yet we still cannot proclaim that normie newbies or even more experienced normies "have to" employ such self custody.

When we look at the risks of using exchanges based on past experiences there's even enough reason to consider self custody. Sometimes we don't necessarily have to look at the possibility of scam and hacks or even account restrictions because the biggest danger is the lies about what they claim to have and we don't even have a way of confirming if they actually have what they claim. It's just too easy to deceive people into believing they are strong financially even when they are not because there's no way we can confirm it.  The FTX story should have been a lesson about how risky it can get when you're trusting a third party with your money no matter how reputable they are. The sad thing is that most people don't even realize Bitcoin was designed to give them financial freedom and government and third party platforms are looking to take it away from them.

I totally agree with you that the Bitcoin power lies in self custody but shouldn't be forced, people just need to know and understand the risks involved in trusting a third party with their Bitcoin even though we can't force anyone to keep their Bitcoin in their own custody we just need to keep educating them to see that trusting a third party platform is not the best.

There’s no need to reinvent the wheel when you can just follow existing strategies in the market. I actually adapted Michael Saylor’s approach for myself. Originally, he bought Bitcoin using a portion of his company's business revenues. Similarly, I opened a business account with Cryptomus and receive part of my payments in various cryptocurrencies. I almost always put the Bitcoin I get into staking. It’s safer that way—otherwise, I’d probably withdraw and spend it, but this keeps it locked away. However, I’m in the red this year. My average entry price is over $80K.

This is not a thread for trading discussion or other cryptocurrencies, it's a thread for only Bitcoin investment discussion. You should at least read through some pages to get a better understanding of what is discussed here and not just showing up this way with off topic reply. And again real Bitcoin doesn't even offer staking your Bitcoin. You should consider owning a real Bitcoin instead of some  derivatives.

[B-BossMan]

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.

I agree with that and Thai is pure gambling if someone always think they can easily predict the bitcoin's short-term price movements, bitcoin investment is actually about probability management, not about a prediction,because as it's non of us truly knows weather the bitcoin price will go up or down, or even tomorrow,next week or next month,and that's why trying to predict or timing every dip or pump often turns into speculation instead of investing. A good practices approach is the DCA method, is to make you keep buying consistently with discretionary income over a period of time, the best thing to do is to secure what you have accumulated for long-term growth and avoid putting yourself into a situation where you may be forced to sell, so as the bitcoin holdings grows over the years,practicing ylyoyr stacks becomes more important as building, it's just to have patience over the process.

Of course, spending bitcoin too early can surely slow down long-term growth, most expecially for those who are still in the accumulation process or stages. Building a meaningful stack actually takes time,together with discipline and the most is consistency. Moreover the real advantage comes from staying well focused on the long term instead of chasing short-term price movement. Atleast 10 years more will definitely become bigger.

[Ishicryptic]

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.

We have several discretionary wants including buying Bitcoin as an investor, emergency funds, stocking your wardrobe and the rest, what you should do is figure out how many of your wants that the discretionary funds can cover when you have it. If buying Bitcoin and keeping emergency funds is your most important wants then you should priotize them, it is that simple and the amount to use for them is your personal decision. If you have discretionary funds I don't think that figuring out how much to us to buy Bitcoin will be a problem, you will decide how important your other wants are then do the math and share it. If you cannot meet up with lesser wants you should skip them and make sure that your major wants are taking care of.

[Razmirraz]

There’s no need to reinvent the wheel when you can just follow existing strategies in the market. I actually adapted Michael Saylor’s approach for myself. Originally, he bought Bitcoin using a portion of his company's business revenues.

Adopting a strategy like Michael Saylor for a personal portfolio carries high risks when applied on an individual scale, he uses the company balance sheet (issuing stocks/bonds) to accumulate the amount of assets, meaning, the main risk is borne by the company shareholders, not his personal wealth. If you adopt this strategy, you must be prepared to bear all the risk of price declines yourself, buying at the average price during high volatility means you leave yourself vulnerable to liquidation or psychological stress when the market corrects. It's worth noting that MicroStrategy allocates 100% of its capital to Bitcoin, so if you want to adopt that strategy without balancing the risks of a long-term bear market, are you prepared to face it?

[Jody.Drummer]

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.

We have several discretionary wants including buying Bitcoin as an investor, emergency funds, stocking your wardrobe and the rest, what you should do is figure out how many of your wants that the discretionary funds can cover when you have it. If buying Bitcoin and keeping emergency funds is your most important wants then you should priotize them, it is that simple and the amount to use for them is your personal decision. If you have discretionary funds I don't think that figuring out how much to us to buy Bitcoin will be a problem, you will decide how important your other wants are then do the math and share it. If you cannot meet up with lesser wants you should skip them and make sure that your major wants are taking care of.

Essentially, we must have good money management habits and attitudes. This will enable us to manage everything optimally, even in challenging situations. With proper money management, everything can be met, including investments, emergency funds, and personal needs. My advice is to think carefully before spending money. So, fulfill your needs first, then proceed with other things, sequentially, and within a predetermined amount. If you have discretionary funds or income, especially if you have stable finances, don't waste them. Once your needs are met, consider the future by investing.

[sotelorene]

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.

We don't need any separate savings to be able to hold Bitcoin and take care of risk but rather what we need is our discretionary income and a back up funds which comprises of emergency funds and reserve funds. Whenever an investor has a discrestionary income, they don't need to wait to get or gather back up funds before they start their accumulation but they should kickstart their investment and start accumulating because along the process or line of accumulating they can start to sort out little amount gradually as backup funds. What will make an investor sell of their investment is because of improper planning and lack of knowledge.

[Sticky Bomb]

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.

I think starting out with 3 to 4 months of back up funds is too much cash.

Such a person may need to allocate half of his back up funds to buying bitcoin right away or nearly right away in order to bring better balance to his starting out situation.  Of course, he can choose to 1) invest right away with the funds, 2) DCA and/or 3) buy on dips that might not come.

Of course, allocating and/or reallocating the 3-4 months of back up funds into bitcoin is only one part of the approach since we may well be assuming that discretionary income is going to be available and as the discretionary funds come in (each week or month) then the guy will be able to allocate some reasonable proportion of the discretionary income to bitcoin 1) investing, 2) savings (back up funds) and 3) discretionary consumption.. so perhaps after several months both the bitcoin holdings and back up funds will grow to similar levels, and so if the guys starts out by reallocating back up funds to bitcoin, within a relatively short period of time, both his back up funds and his bitcoin will have similar amounts, such as 1.5 months to 2 months in each of the funds, and after several more months, they might both equal 3-4 months of his expenses.

I share the same ideas, holding so much backup funds is stacking up too much cash and since cash still depreciates on the long-run it is much better to put a good part of it into buying bitcoin to both preserve its value and secure a very good starting position in bitcoin, it is a good way to frontload your portfolio since you've the advantage of having such big quantity of backup funds prior to getting into bitcoin.

If he had 4 months worth of backup funds and he was able to use half of it to frontload into bitcoin, then he has 2 months of backup fund remaining which still gives him the advantage to invest aggressively into bitcoin and slowly builds his backup funds back up to 3 months or 4 months like he previously had. He can comfortably do 60% of discretionary income into bitcoin, 20% to backup funds and the other 20% as discretionary spending since he already has 2 months of backup fund, thereby giving his bitcoin portfolio a high priority and getting ahead in his accumulation journey at a faster pace.

[SmartCharpa]

Even though it is important to get started investing in bitcoin as soon as possible, it makes little to no sense to start out with absolutely no emergency funds (back up funds).

At least some back up funds need to be present, otherwise a person cannot be sure that he is not investing into bitcoin with non-discretionary funds.  One of the requirements of bitcoin investing is to use discretionary funds - and don't be making dumb mistakes that relate to trading or gambling.. especially since investment in bitcoin should be considered to be 4-10 years or longer, even if in the beginning a newbie might not be ready, willing or able to establish his investment timeline to be 4-10 years or longer.

Of course, many people want to invest in bitcoin, and rush to invest without building the emergency fund. The emergency funds is very important because, as an investor, you will be sure that you are investing from your discretionary fund, and not from the funds that are meant for other expenses. If new investors buy without having the backup funds, you might be forced to sell when you need money to cover other things.

However, as a long term investor, it requires patience, because bitcoin is a volatile asset and every long term investor is ready for any up and down during the market. And this is why it is advised to invest for a long term, instead of chasing short term profits. Having an emergency fund from the beginning makes you more comfortable and maintain your investment plan without experiencing any stress.

[SuperBitMan]

Even though it is important to get started investing in bitcoin as soon as possible, it makes little to no sense to start out with absolutely no emergency funds (back up funds).

At least some back up funds need to be present, otherwise a person cannot be sure that he is not investing into bitcoin with non-discretionary funds.  One of the requirements of bitcoin investing is to use discretionary funds - and don't be making dumb mistakes that relate to trading or gambling.. especially since investment in bitcoin should be considered to be 4-10 years or longer, even if in the beginning a newbie might not be ready, willing or able to establish his investment timeline to be 4-10 years or longer.

Of course, many people want to invest in bitcoin, and rush to invest without building the emergency fund. The emergency funds is very important because, as an investor, you will be sure that you are investing from your discretionary fund,

SmartCharpa are you sure you understand what you are saying here, please how those having an emergency funds help you in making sure you are investing with your discretionary income, emergency funds and discretionary income are two different things and having an emergency funds can’t help you use only your discretionary income to accumulate bitcoin, you can have an emergency funds and still be using more than your discretionary income to accumulate bitcoin, or do you think emergency funds can be used anyhow, maybe because you forgot to remove money for your bathing soap and since you have en emergency funds you dip hands into your emergency funds to buy bathing soap, please this are not the things emergency funds are for.
If you always want to stay within your discretionary income what you should be doing is to always take out money used for important bills and then the one lift which is your discretionary income can be used to accumulate bitcoin, don’t accumulate first when you receive your salary, hold on first and remove all the money for every important thing.

[Abbatty]

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.

You are very right on this, honestly a lot of people tend to actually forget that investing small amount comes with other advantages. Just like you said, it help to tell how about your finances in real world, sometimes we could actually make a plan to invest a certain amount but at the End some need comes up that we actually needs to attend to so with this your part of discretionary income is affected but you will still be able to invest and also attend to your need. It really help you to adjust and adapt quickly to situations. Because sometimes a budget that works on papers often fails in practice.

Another advantage is that it helps shows your emotions reaction to volatility. In a case where bitcoin drop by maybe 20% or 30% you will see that you will feel the fear but in a very low way because you invest in a low amount.

[Rockson1]

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.

Let me assume that what you mean by separate savings is your emergency funds if thats what you means it is adviceable for every newbie or intending Bitcoin investor to have atleast a little of emergency funds which we can also call backup funds and discreationary income to start their Bitcoin investment, then such investor can continue to build their emergency funds along side with their Bitcoin acumulation, emergency funds is not something to joke with as a bitcon investors because thats what helps in safeguarding our investment especially when the needs arises, the safe portion you are talking about is your discreationary income right? Yes it is, as an investor just make sure that you are not doing too much I mean beyond your capacity but the right procedures has to be followed for a successful hodling for a long-term.

[Obulis]

It can be difficult for new investors to understand the difference between a stable source of income and a unstable source of income, which can lead to confusion when it comes to investing in Bitcoin.

I never wanted to meddle in your conversation but what caught my attention was this your statement above, which I think is wrong, because I believe that it's not an excuse. Not knowing what is a stable income or an unstable income is purely lack of common sense, it has nothing associated with Bitcoin investment.

It's not mandatory that you must have a stable income before you can invest in Bitcoin and be successful, what is more important is a discretionary income, because once you can figure it out, you can start right away, so it's not wise to be using an unstable source of income as an excuse not to invest in Bitcoin when you should.

Stable and unstable income talk will definitely come in when talking about Bitcoin investment but that is just a reference not as if new knowledge or learning because I wonder who would want to invest in Bitcoin but can't define or explain or under their source of income. Everyone knows how their income flows and how much that flows in, pointing towards it in Bitcoin investment is to help clear one misconception or the other or give one enlightenment or the other like the misconception that you can't invest in Bitcoin because you don't have steady or stable income when the most important thing to do is to determine your discretionary funds no matter the income flow.
Barikui actually saying that there are people or adults earning money who wants to invest in Bitcoin that can't differentiate between steady/stable and unsteady/unstable income flow is really unrealistic because the way someone income flow is known to the person intuitively.

[Silikiem]

Even though it is important to get started investing in bitcoin as soon as possible, it makes little to no sense to start out with absolutely no emergency funds (back up funds).

At least some back up funds need to be present, otherwise a person cannot be sure that he is not investing into bitcoin with non-discretionary funds.  One of the requirements of bitcoin investing is to use discretionary funds - and don't be making dumb mistakes that relate to trading or gambling.. especially since investment in bitcoin should be considered to be 4-10 years or longer, even if in the beginning a newbie might not be ready, willing or able to establish his investment timeline to be 4-10 years or longer.

Of course, many people want to invest in bitcoin, and rush to invest without building the emergency fund. The emergency funds is very important because, as an investor, you will be sure that you are investing from your discretionary fund, and not from the funds that are meant for other expenses. If new investors buy without having the backup funds, you might be forced to sell when you need money to cover other things.

However, as a long term investor, it requires patience, because bitcoin is a volatile asset and every long term investor is ready for any up and down during the market. And this is why it is advised to invest for a long term, instead of chasing short term profits. Having an emergency fund from the beginning makes you more comfortable and maintain your investment plan without experiencing any stress.

Even though it’s from someone’s discretionary income that the person can be able to get his emergency funds from, that doesn’t mean that you will be investing or accumulating with the emergency funds. An emergency funds is not a part of the discretionary income used in buying or investing In bitcoin but it is a cash set aside to shield or protect our investments during emergency situations. It helps us not to tend towards selling our bitcoin investment or holdings when we are in an emergency situation needing money to settle, instead of turning to bitcoin holdings we can just quickly go to the emergency funds and settle the issue. The discretionary income used in buying bitcoin should be separate from your emergency funds which will be used in an emergency situations only.

For sure, rushing to invest In bitcoin isn’t the problem, but the problem is are you actually investing with your discretionary income. If yes, then no problem, you can go ahead and buy bitcoin to invest, and then you can decide how much of the discretionary income you want to allocate in buying bitcoin and how much you can also allocate for building the emergency funds gradually.

[Sim_card]

Whenever an investor has a discrestionary income, they don't need to wait to get or gather back up funds before they start their accumulation but they should kickstart their investment and start accumulating because along the process or line of accumulating they can start to sort out little amount gradually as backup funds. What will make an investor sell of their investment is because of improper planning and lack of knowledge.

If you're starting your bitcoin investment without any form of backup funds then I think, you should start your bitcoin investment at the same time with building your backup funds. You don't need to wait after sometimes before you start sorting out little amounts gradually as emergency funds because there must be a balance between your bitcoin investment and your emergency funds.

Brand new investors after figuring out their discretionary income, they should divide it into three equal part. One part 33.3% for your regular weekly DCA, the second part 33.3%to build your emergency funds until, it has reach three months of your monthly expenses and the last part 33.3% for your discretionary consumption.

 You still have a long way to go in your bitcoin journey and your emergency funds should grow similar to your bitcoin investment so that you can build it fast and focus on buying bitcoin aggressively when your backup funds have already been built.

[Grease5000]

Whenever an investor has a discrestionary income, they don't need to wait to get or gather back up funds before they start their accumulation but they should kickstart their investment and start accumulating because along the process or line of accumulating they can start to sort out little amount gradually as backup funds. What will make an investor sell of their investment is because of improper planning and lack of knowledge.

If you're starting your bitcoin investment without any form of backup funds then I think, you should start your bitcoin investment at the same time with building your backup funds. You don't need to wait after sometimes before you start sorting out little amounts gradually as emergency funds because there must be a balance between your bitcoin investment and your emergency funds.

Brand new investors after figuring out their discretionary income, they should divide it into three equal part. One part 33.3% for your regular weekly DCA, the second part 33.3%to build your emergency funds until, it has reach three months of your monthly expenses and the last part 33.3% for your discretionary consumption.

 You still have a long way to go in your bitcoin journey and your emergency funds should grow similar to your bitcoin investment so that you can build it fast and focus on buying bitcoin aggressively when your backup funds have already been built.

I personally believe that if someone has discretionary income, they can start buying Bitcoin while building a backup fund at the same time. For example, if I have $200 left after my expenses, I can put $120 into Bitcoin and save $80 as a backup fund. That way, I can grow my investment while also building  a backup fund for emergencies at the same time instead of delaying one for the other.

[Loyang]

Even though it is important to get started investing in bitcoin as soon as possible, it makes little to no sense to start out with absolutely no emergency funds (back up funds).

At least some back up funds need to be present, otherwise a person cannot be sure that he is not investing into bitcoin with non-discretionary funds.  One of the requirements of bitcoin investing is to use discretionary funds - and don't be making dumb mistakes that relate to trading or gambling.. especially since investment in bitcoin should be considered to be 4-10 years or longer, even if in the beginning a newbie might not be ready, willing or able to establish his investment timeline to be 4-10 years or longer.

Of course, many people want to invest in bitcoin, and rush to invest without building the emergency fund. The emergency funds is very important because, as an investor, you will be sure that you are investing from your discretionary fund, and not from the funds that are meant for other expenses. If new investors buy without having the backup funds, you might be forced to sell when you need money to cover other things.

However, as a long term investor, it requires patience, because bitcoin is a volatile asset and every long term investor is ready for any up and down during the market. And this is why it is advised to invest for a long term, instead of chasing short term profits. Having an emergency fund from the beginning makes you more comfortable and maintain your investment plan without experiencing any stress.

Yes, an emergency fund is very important, but waiting to build an emergency fund to invest is a shameful act or a waste of time. Starting to invest is important and an emergency fund is also important, so if someone does not have an emergency fund, they can put 50% of their initial investment amount or whatever they want in an emergency fund. Investing with zero emergency fund is definitely risky.

We can create both investment and emergency fund in a balanced way through proper financial management and proper management. For example, we can invest some of our discretionary income and keep some for emergency fund and keep some for additional expenses. However, if we do not have any extra expenses in a month or week, then we can combine the money kept for those additional expenses with the money kept for our investment.

[Bigjoe33]

Whenever an investor has a discrestionary income, they don't need to wait to get or gather back up funds before they start their accumulation but they should kickstart their investment and start accumulating because along the process or line of accumulating they can start to sort out little amount gradually as backup funds. What will make an investor sell of their investment is because of improper planning and lack of knowledge.

If you're starting your bitcoin investment without any form of backup funds then I think, you should start your bitcoin investment at the same time with building your backup funds. You don't need to wait after sometimes before you start sorting out little amounts gradually as emergency funds because there must be a balance between your bitcoin investment and your emergency funds.

Brand new investors after figuring out their discretionary income, they should divide it into three equal part. One part 33.3% for your regular weekly DCA, the second part 33.3%to build your emergency funds until, it has reach three months of your monthly expenses and the last part 33.3% for your discretionary consumption.

 You still have a long way to go in your bitcoin journey and your emergency funds should grow similar to your bitcoin investment so that you can build it fast and focus on buying bitcoin aggressively when your backup funds have already been built.

I personally believe that if someone has discretionary income, they can start buying Bitcoin while building a backup fund at the same time. For example, if I have $200 left after my expenses, I can put $120 into Bitcoin and save $80 as a backup fund. That way, I can grow my investment while also building  a backup fund for emergencies at the same time instead of delaying one for the other.

Surely, getting started is the real deal, and then setting a target of accumulation which includes a long term investment plan.

Even though we might argue that a back up fund is crucial and a most for every investment, yet, we cannot also forget the fact that we can actually start immediately without already having a back up funds, but by figuring out our discretionary income and starting, and slowly building the much needed back ups for your in investment.
Thus, waiting to get an emergency funds and other back up funds first before starting investments are all delay and may keep such investor away from starting at all.

[Creeper0]

I personally believe that if someone has discretionary income, they can start buying Bitcoin while building a backup fund at the same time. For example, if I have $200 left after my expenses, I can put $120 into Bitcoin and save $80 as a backup fund. That way, I can grow my investment while also building  a backup fund for emergencies at the same time instead of delaying one for the other.

Yes, if you have the ability to create an investment fund and a backup fund at the same time, you can do it, and you are even free to do so. But not all of us have the same financial situation, some have more discretionary money than necessary, while others find it difficult to maintain the necessary discretionary money. In fact, not all of us have the same financial capacity, so the same advice may not work for everyone.

But what if your situation does not allow you to create an investment fund and a backup fund at the same time or it is not enough, then what do you do? In that case, you can prioritize investment at the beginning, and when your investment fund becomes relatively valuable, you can prioritize the backup funds as investment protection. Because you already have some Bitcoin, it is not a problem if the amount of money allocated for investment decreases slightly. But focusing on the two funds at the beginning will result in relatively less Bitcoin in your investment fund, so if you miss the opportunity to buy more Bitcoin at a low price due to the increase in the price of Bitcoin, you may be in a bit of a pickle. However, my advice would be, do not invest all of your discretionary money and allocate it to a backup fund, save some money so that you can spend it if necessary before you get your next month's salary.