JJG’s Outline of Bitcoin Investment Ideas

[Alonso_]

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I never said that newbies need an emergency fund before starting to invest in bitcoin, yet I did say that beginners need some back up funds so that they do not use non-discretionary funds to invest into bitcoin.

Some individuals seems to be stressing on this matter and it seems like they don’t understand anything happening on this thread, as soon as you have a discretionary income then I think it’s just better that you get started with investing in bitcoin immediately, the fact that you’re starting immediately doesn’t mean that you don’t wouldn’t start up a backup funds, because backup funds are very important for a long term investors.

Newbies doesn’t need an emergency backup funds before they can start investing in bitcoin, this individuals doesn’t read through properly before they start misquoting someone.

[iamsange]

Snip.

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I think your explanation is very accurate and realistic, as starting with a small amount of investment is far more profitable than waiting to accumulate large capital. You're on the right track. Starting to invest with a small amount also trains you to manage expenses and prioritize investments over other less urgent needs. This strategy is not just about saving money from your income, but also about building financial discipline because you are consistently investing. This is a habit that is often ignored by those (including your friends) who are waiting to have large amounts of money.
Those who wait for large capital are often trapped in the illusion of "the right time to start investing is when you already have a lot of money," whereas in practice, consistency and time or duration of investment are the main keys to achieving financial freedom in the future.

I also believe that there is no specific time to start investing except starting now with the capital you have. Therefore, we ourselves will strive to develop an investment plan by considering the initial cash flow when starting and will also deliberately allocate specific funds for future investment from the income we have received so far. Because I've also seen some people who still prefer to wait for large capital, essentially never starting investing under any circumstances. They not only have to prepare the capital, but also have to prepare their interest and mentality for long-term investment, as this isn't just for a day.

So, for those who still prefer to wait for large capital to invest, it's best to start now with the funds you already have, especially now that the Bitcoin price is experiencing a downward correction, making it a good idea to buy now and continue making a more mature plan for the long term. Waiting will only waste time and opportunity by buying Bitcoin at the current price. When the price rises again, it will feel like a large investment will seem trivial, and the benefits will be negligible.

[Tetu100]

Your answer is correct. What's essential in investing is having the intention to invest so the amount isn't the main priority. For example someone might have a large amount of money but have no intention of investing at all. This indicates that it's difficult for us to start an approach to refer to someone who can invest. Therefore what's really needed in investing is the intention to start.

In addiction to what you mention. What is really important for every investor that want to invest in bitcoin is just to figure out his/her discretionary funds, and once that is being figured out everything is settle. But when having difficulties in figuring out your discretionary funds, no matter how huge you're earning or how financially capable you are, you can't be able to kick start a bitcoin investment journey.

Newbies doesn’t need an emergency backup funds before they can start investing in bitcoin, this individuals doesn’t read through properly before they start misquoting someone.

Offcourse, this are simply things we need to understand as investors and should be properly observe so we won't be having issues in our investment things. However, waiting to build up every necessary support funds like the emergency funds and the back funds before investing will only delay your investment process and in most case it can even deny you the opportunity of investing. It's more advisable to start up your investment journey immediately your discretionary funds is ready, perhaps you can make provision for every needed funds ( emergency funds and backup funds) that can aid your investment as you proceed ahead.

[Grace333]

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This is fantastic idea, this is not that someone needs to be fully funded or fully built emergency reserve before buying their first bitcoin or start their bitcoin early, but it equally important not to start with absolutely nothing set aside for any unexpected expense which is necessary, if there’s no backup fund, there’s is risk that money being invested into bitcoin is actually money that may be needed in the short period of time, because immediately the emergency arises that person may be forced to sell bitcoin at unfavorable time, turning what was supposed to be a long term investment into a short term. Furthermore, is not a goo idea that you must to have enough emergency fund before begin your bitcoin investment, both of them can go are same time, but just have little of emergency funds that’ll serve as protection, to ensure that the money going into bitcoin is truly discretionary funds, money that can actually remain invested for years without any form of financial stress.

Therefore, what necessary should be to build the both at the same time, steadily accumulate bitcoin while also growing your backup funds.

I feel security is almost as important as what we want to save besides our backup funds is not entitled to saving our bitcoins alone it's more for our own safety in terms having something to fall back to when we face financial emergency situations that can throw us off balance. One thing I'll also like to clear is the purpose of backup up funds, provided that we have something to fall back to doesn't mean we can go around spending it on wants and tag that as emergency. Emergencies should be urgent unplanned needs not something that happens all the time like paying bills, and that is why we should be strict with our saving our backup funds, if possible do it with same percentage as your bitcoin investment.

[The Founding Titan]

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.

I think the balanced approach is to do both gradually. For me, once I can identify my discretionary income, I can start buying Bitcoin, even if my emergency fund is still small.

At the same time it important to have a backup fund incase of an emergency so rather than waiting for a perfect emergency fund or ignoring it completely, I prefer to build my Bitcoin position and emergency fund side by side.

It's actually the smart way to go about it, don't sideline one because of the other when you have the discretionary income to build the two together, sometimes people are more into being aggressive in their investment to the point where they want to put all of their discretionary income into their investment without thinking about setting up their backup fund as well, they simply want to accumulate bitcoin as much as postad quickly as possible, if you have the discretionary income then you would be better off just doing the two side by side.

[Big Dirams]

It's actually the smart way to go about it, don't sideline one because of the other when you have the discretionary income to build the two together, sometimes people are more into being aggressive in their investment to the point where they want to put all of their discretionary income into their investment without thinking about setting up their backup fund as well, they simply want to accumulate bitcoin as much as postad quickly as possible, if you have the discretionary income then you would be better off just doing the two side by side.

Going aggressively over our bitcoin accumulation is always advisable  when we have already make availability of our back up funds 3 times our income. Then with such availability of back up funds then we can wish to go aggressively but when no availability of back up funds then going aggressively would only open us to higher risk.

Investment can be start with just discretionary income alone but at the long run the back up funds should be build for emergency in future that will push us into selling our holdings. Having availability of back up in check during the journey helps to guide our portfolio from risk and emergencies that will lead to sell off.

[cyberninja2]

In addiction to what you mention. What is really important for every investor that want to invest in bitcoin is just to figure out his/her discretionary funds, and once that is being figured out everything is settle. But when having difficulties in figuring out your discretionary funds, no matter how huge you're earning or how financially capable you are, you can't be able to kick start a bitcoin investment journey.

This is a very good and important point along with your additional idea that investing requires investors to determine discretionary income. Managing discretionary funds is certainly part of our ability to continue investing sustainably preventing problems. We can more quickly determine our primary needs before starting. Therefore our advantage of acting quickly will certainly be more effective in addressing all needs ultimately eliminating the mistakes we make in Bitcoin investment.

This is true, but another reason if we fail to manage discretionary funds this will certainly be a significant problem. As you said no matter how wealthy someone is no matter how strong their energy or resources they will not be able to or feel comfortable investing. This is because all of our methods for determining discretionary funds are not good so everything won't go according to our wishes. Instead we will experience problems ultimately leading to a loss of focus on Bitcoin investment.

[The Founding Titan]

It's actually the smart way to go about it, don't sideline one because of the other when you have the discretionary income to build the two together, sometimes people are more into being aggressive in their investment to the point where they want to put all of their discretionary income into their investment without thinking about setting up their backup fund as well, they simply want to accumulate bitcoin as much as postad quickly as possible, if you have the discretionary income then you would be better off just doing the two side by side.

Going aggressively over our bitcoin accumulation is always advisable  when we have already make availability of our back up funds 3 times our income. Then with such availability of back up funds then we can wish to go aggressively but when no availability of back up funds then going aggressively would only open us to higher risk.

Investment can be start with just discretionary income alone but at the long run the back up funds should be build for emergency in future that will push us into selling our holdings. Having availability of back up in check during the journey helps to guide our portfolio from risk and emergencies that will lead to sell off.

Investment shouldn't just start with discretionary income, it should be done only with your discretionary income.
When a person wants to be aggressive in bitcoin it's actually up to them to do so, especially when their backup funds are already in place, with nothing else major dragging on their discretionary income they can absolutely go aggressive on their investment but this is because they've already set up their backup funds already

[New Judgement]

One thing I'll also like to clear is the purpose of backup up funds, provided that we have something to fall back to doesn't mean we can go around spending it on wants and tag that as emergency. Emergencies should be urgent unplanned needs not something that happens all the time like paying bills, and that is why we should be strict with our saving our backup funds, if possible do it with same percentage as your bitcoin investment.

That’s why it is encouraged that investors should differentiate their backup funds from the beginning. If you are saving for emergency purposes, tag that account as emergency funds account, and the other one reserves account. So that in the future when there is need to take out money, you will know the account that such needs fall under. Like the paying of bills you referenced, that should come under backup funds, if it happens that tomorrow the investor is having financial inflow difficulties, and there is need to pay bills, he can pay from the reserved account. Because I don’t see how possible it is for an investor to have money in backup funds account, and there is need to pay bills and you don’t expect him to take from the backup funds account.

So to avoid this from happening, the investor should save for emergencies separately from reserved funds. When you say backup funds, you are generalizing all the money kept aside by the investor. It consists of emergency funds, reserved funds, and others. So you can’t fault an investor entirely when he dips hand into his backup funds to pay  bills, because the money was kept aside for all purposes when not differentiated from the beginning.

[Qhunman]

nvestment shouldn't just start with discretionary income, it should be done only with your discretionary income.
When a person wants to be aggressive in bitcoin it's actually up to them to do so, especially when their backup funds are already in place, with nothing else major dragging on their discretionary income they can absolutely go aggressive on their investment but this is because they've already set up their backup funds already

For an investor to be able to kickstart his bitcoin investment, they only need discretionary fund and nothing more than.  Discretionary income is the only income an investor to needs to accumulate bitcoin consistently. they emergency fund and reserve fund should be setup alongside their Bitcoin investment as this will ensure the safety of their bitcoin investment incase of real life emergency situation.
However Investors can buy aggressive provided they are using their discretionary income otherwise they are gambling. So buying aggressively isn't a bad thing as long as it is being done within their discretionary income.

[Shineup]

It's actually the smart way to go about it, don't sideline one because of the other when you have the discretionary income to build the two together, sometimes people are more into being aggressive in their investment to the point where they want to put all of their discretionary income into their investment without thinking about setting up their backup fund as well, they simply want to accumulate bitcoin as much as postad quickly as possible, if you have the discretionary income then you would be better off just doing the two side by side.

Going aggressively over our bitcoin accumulation is always advisable  when we have already make availability of our back up funds 3 times our income. Then with such availability of back up funds then we can wish to go aggressively but when no availability of back up funds then going aggressively would only open us to higher risk.

Investment can be start with just discretionary income alone but at the long run the back up funds should be build for emergency in future that will push us into selling our holdings. Having availability of back up in check during the journey helps to guide our portfolio from risk and emergencies that will lead to sell off.

When there is no availability of backup funds it is no longer investment but gambling at that time and that is being over aggressive at least a little bit of a backup funds should be there  while building it up alongside with your investment, this is what I considered to be the best practice because ignorance to this will result to selling your Bitcoin to sort out emergencies when it happens, being aggressive with your investment is encouraged as it should be done within the means of your discretionary income and not overdoing it.

[Livingleged]

That’s why it is encouraged that investors should differentiate their backup funds from the beginning. If you are saving for emergency purposes, tag that account as emergency funds account, and the other one reserves account. So that in the future when there is need to take out money, you will know the account that such needs fall under. Like the paying of bills you referenced, that should come under backup funds, if it happens that tomorrow the investor is having financial inflow difficulties, and there is need to pay bills, he can pay from the reserved account. Because I don’t see how possible it is for an investor to have money in backup funds account, and there is need to pay bills and you don’t expect him to take from the backup funds account.

Its always not easy for a low income earner to to differentiate between the back up funds and the emergency funds so not to limit some categories of people, once your income is set and you have your discretionary income you should start buying and accumulating without any further delay, along the way your income gets better make way to create your emergency funds incase your income stops that should keep you good pending when you’ll fix your source of income and continue with your accumulation. this is just the difference based  on my understanding back up funds is money  you set aside to continue with your accumulation accumulation if you income stops it wound affect your accumulation while the emergency funds is money that will be there to sustain you if  your income stops so that you don’t end up selling your investments. Backup fund can be used for investment but emergency funds cant be used.

[Sim_card]

back up funds is money  you set aside to continue with your accumulation accumulation if you income stops it wound affect your accumulation while the emergency funds is money that will be there to sustain you if  your income stops so that you don’t end up selling your investments. Backup fund can be used for investment but emergency funds cant be used.

You are confusing yourself with the difference between emergency funds and backup funds.

Backup funds comprises of your emergency funds and reserve funds.

Emergency funds is the backup funds to your bitcoin investment to protect it from premature sells Incase, you are hit with real life emergency. Instead, of selling part of your bitcoin, you tap from your emergency funds to solve such problem.

You don't need to accumulate any bitcoin when you don't have discretionary income that is, after you have lost your job or your stream of income stop flowing. You are to just focus on spending backup funds to take care of your basic needs and monthly expenses and you're to start using from your reserve funds first after exhausting it is when you can start using your emergency funds for the period till you get a new means of income with discretionary income before you can start investing again.

Since, you don't know how long your joblessness will be over, you don't need to buy any bitcoin because if you do with your reserve funds, and you depleted your backup funds faster before getting a new source of income, you will have no option than to start selling your bitcoin which was what you were preventing before. We don't need to take actions that will come back and bite us on the ass.

[SmartCharpa]

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.

I never said that newbies need an emergency fund before starting to invest in bitcoin, yet I did say that beginners need some back up funds so that they do not use non-discretionary funds to invest into bitcoin.

Yes I totally understand your point, but what I am saying is that emergency funds are very important. It’s not something we should abandon only because it is not necessary to have that before investing. As long as you can set aside discretionary income from what you earn, you can invest, and there is no need to wait for any perfect time to invest.

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

Do you think that you are going to invest in bitcoin without any back up funds?   How is that investing? rather than gambling or trading?  How can you hold for 4-10 years or longer if you have absolutely no back up funds?

It’s impossible to hold bitcoin for a 4-10 years without an emergency fund. The person will end up touching their investments if anything goes wrong with their life. Maybe in a situation where you need to pay for a medical emergency or unexpected things happen, the person will have no choice to sell off or part of their holdings. If you get the emergency fund you don’t have to touch your investment during any difficult situations.

[Merit.s]

Its always not easy for a low income earner to to differentiate between the back up funds and the emergency funds so not to limit some categories of people, once your income is set and you have your discretionary income you should start buying and accumulating without any further delay, along the way your income gets better make way to create your emergency funds.

You don't need to be able to differentiate your backup funds from your emergency funds, what matters the most is that the moment you have started your bitcoin investment, you should start building your emergency funds along side no matter how small your discretionary income is.

You don't need to wait till you have increased your income before you start building your emergency funds because emergency can pop up at anything without your notice. If you don't have any available cash for emergency sake, you will sell your bitcoin and use it to take care of that emergency. This is why you need to build it up the moment you have started your bitcoin investment because it can take more than a year for an investor with a low discretionary income to build his emergency funds of three months of his expenses.

It's good to do the right thing at the right time to avoid regrets later. If you are investing in bitcoin without setting an emergency funds means you're a gambler and wouldn't survive in your long term bitcoin accumulation.

[Yablee0]

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.

I never said that newbies need an emergency fund before starting to invest in bitcoin, yet I did say that beginners need some back up funds so that they do not use non-discretionary funds to invest into bitcoin.

Yes I totally understand your point, but what I am saying is that emergency funds are very important. It’s not something we should abandon only because it is not necessary to have that before investing. As long as you can set aside discretionary income from what you earn, you can invest, and there is no need to wait for any perfect time to invest.

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

Do you think that you are going to invest in bitcoin without any back up funds?   How is that investing? rather than gambling or trading?  How can you hold for 4-10 years or longer if you have absolutely no back up funds?

It’s impossible to hold bitcoin for a 4-10 years without an emergency fund. The person will end up touching their investments if anything goes wrong with their life. Maybe in a situation where you need to pay for a medical emergency or unexpected things happen, the person will have no choice to sell off or part of their holdings. If you get the emergency fund you don’t have to touch your investment during any difficult situations.

Emergency funds is very necessary for a long term investment plan. Though it's not actually necessary having it in place before investing but it's very mandatory to think of setting it in future else you will rarely survive when real life challenges comes and will be likely forced to use from your investment holdings to settle up issues which is not advisable or healthy to any investment.

And again, it's not that compulsory that we must have a huge amount of emergency funds at a go if in case that is our fear, in our best interest and also for our convenent, we can be accumulating our emergency funds bit by bit as much as we can go along side our investment journey till it reach up to the level of what we want instead of pressuring ourselves for no reason .

[sotelorene]

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.

I think the balanced approach is to do both gradually. For me, once I can identify my discretionary income, I can start buying Bitcoin, even if my emergency fund is still small.

At the same time it important to have a backup fund incase of an emergency so rather than waiting for a perfect emergency fund or ignoring it completely, I prefer to build my Bitcoin position and emergency fund side by side.

It's actually the smart way to go about it, don't sideline one because of the other when you have the discretionary income to build the two together, sometimes people are more into being aggressive in their investment to the point where they want to put all of their discretionary income into their investment without thinking about setting up their backup fund as well, they simply want to accumulate bitcoin as much as postad quickly as possible, if you have the discretionary income then you would be better off just doing the two side by side.

Let me ask you this question, do you prefer to have a huge backup funds and a small portfolio because of little discretionary income or do you prefer to have a huge portfolio and little or moderate backup funds? I want to believe this question is very simple and a wise someone will know what to chose over the other. How will an investor have lots of backup funds when you don't have a good portfolio I mean what are you saving the back up funds for?  So I will prefer to have a good discretionary income and good portfolio because that is the ultimate.

[Grease5000]

You don’t need a large amount of money to invest in other words, you can start and make investments even with a small amount of money. Basically, once you’ve decided to invest, do it as soon as possible there’s no need to wait for a large sum of money. It’s better to adjust your investments to your own financial capacity, no matter how small the amount. I was once laughed at by a friend for starting with a small investment, but because I did it consistently, in the end my friend fell behind because they waited for a large sum of money to invest.

I think your answer is quite accurate and there's no need for any more excuses for those who sometimes need a lot of money to invest. Investing doesn't require a large amount to start even with a small amount there's no need to wait. So in other words when you have the intention do it as soon as possible. Our goal is to be consistent in investing in Bitcoin even with small amounts but we always demonstrate our consistency.

Some of those who have felt successful in investing I think they also experienced the same thing as what we are doing now because everyone must have stages so that they can reach the peak after they have gone through various stages so that they can succeed as they feel now and also they may basically only have a strong intention and mentality in starting to invest so in making this investment is not a matter of capital or money in starting to invest but more towards the consistent attitude that we have so that with any amount we are still willing to invest in Bitcoin and what I can say is that it is not with a large amount of money that you can invest but our self-confidence to start investing even with a small amount but we are consistent in doing it.

You are correct. I remember  when a friend of mine started buying Bitcoin with just a small amount every week through DCA, while i kept waiting until I have enough  money to buy big lump sum. Months later,  my friend  who started small had already built a decent portfolio, while the i was still waiting for the right amount. I had to learn  the hard way. And that is when I realized that In investing, consistency often matters more than how much one start with.

[Rockson1]

I think the balanced approach is to do both gradually. For me, once I can identify my discretionary income, I can start buying Bitcoin, even if my emergency fund is still small.

At the same time it important to have a backup fund incase of an emergency so rather than waiting for a perfect emergency fund or ignoring it completely, I prefer to build my Bitcoin position and emergency fund side by side.

Well said, to some people they think they must have a huge amount as their emergency funds before they can start acumulating Bitcoin, I'm very happy that this statement that laid clarity to how emergency fund has to be followed is coming from someone who may not have been in the system for long, you nailed it man, I think the major thing is the discretionary income which you have hinted, with what you said one can easily learn from it, especially the newbies.

You just concluded what I have always said, I think some people are the cause of their own problem while going about Bitcoin investment, they have wrong mindset while chasing their target, we keep emphasizing on emergency funds that shows how important it is but what some persons do not know is that there better ways of going about it instead of waiting to have it to it's fullest before we can start our bitcon investment.

[IjawMan]

[

I never said that newbies need an emergency fund before starting to invest in bitcoin, yet I did say that beginners need some back up funds so that they do not use non-discretionary funds to invest into bitcoin.

Some individuals seems to be stressing on this matter and it seems like they don’t understand anything happening on this thread, as soon as you have a discretionary income then I think it’s just better that you get started with investing in bitcoin immediately, the fact that you’re starting immediately doesn’t mean that you don’t wouldn’t start up a backup funds, because backup funds are very important for a long term investors.

It goes without expressing that backup funds are a lifeline of every investor's bitcoin investment and must be put in position to avoid not only the draining of non-discretionary funds but as well as discretionary funds which should have been used in adding up your bitcoin accumulation but has to be used in covering other matters which backup funds should have been able to take care with. A pure distortion of a consistent massive bitcoin accumulation dew to a no backup funds.