JJG’s Outline of Bitcoin Investment Ideas

[JayJuanGee]

Additionally, some people tend to panic when prices drop. They might buy by fully investing the amount they have when prices fall, but the fear is that the price will remain low for a long time or even drop further. Out of panic, they end up selling, resulting in nothing but losses.

People who do this are called traders, they are not prepared to invest in Bitcoin the right way which why they are anxious to see profits with a very short time. Any investor that plans to hold Bitcoin for a long time will not panic and sell when proce drop lower, he will basically not be worried because he is not anxious to sell. This is why the DCA method is highly recommended because it is pro-buying as there is no pressure on the investor because by design, the DCA method requires that the investment is made with small amount of money compared to the total discretionary income. This makes the investment peaceful for the investor.

Not only do the traders do this; I think anyone who has risked way more money that isn't made to be used for Bitcoin investment or money that he can afford to lose can be found in this behavior, attaching their emotions. You don't use money that's meant for your rent to invest in Bitcoin; you definitely will be forced to sell seeing how much the price has dropped; aside from that, I don't see a reason why one would.

It is good to be prepared for a Bitcoin price drop because it will prevent you from making too many emotional decisions. Many new investors get overly excited by reviewing past prices and therefore they want to use leverage. But I would advise them to be risk tolerant and review the amount of funds you invest whether you can afford to lose because the price is volatile and can fall further at any time.

It is better not to buy Bitcoin with your required funds. Use the DCA method for Bitcoin accumulation and manage it long term through discretionary income because the possibility of future price increases and if a bull run starts, Bitcoin will definitely exceed its previous ATH- $126k and will definitely break its previous price record multiple times this year.

The way you said it is not actually investment but it is trading. You are an investor here, how do you use leverage as an investor?

Investors can use leverage.

Trading has to do with selling and expecting to buy back cheaper.

Investors can use leverage to try to buy more bitcoin, and they don't need to keep their leverage open. 

Using leverage is a more advance technique and not necessarily recommended for beginners, yet guys can do what they like.. at the same time, leverage could cause the investor to lose money when he could have otherwise made money if he had not used leverage.

Investment is not done in a short time, but we consider those who hold it for a long time as investors. Suppose an investor uses leverage, then how long can he hold his investment using this leverage, if he wants to for a long time, he will not be able to because the market will change constantly and due to this change, it will be seen that he has been liquidated, then he will lose everything.

Even loans are leverage, so a guy could have long term loans, and even use equity from his house, and some of those equity loans have 15 years or more on their payback terms... so leverage does not have to be short-term in order to still be in the category of leverage.

If you introduce yourself as an investor, I will say that there is no need to do these things, but understanding his income and his discretionary income, he should invest consistently and the important thing is that he should try to hold it for a long time.

Historically, one of the great things about bitcoin has been that guys could just error on the side of buying it and holding it, and over the years bitcoin has tended to outperform quite a few other assets, so you are right that historically, there did not need to be any fancy tools to make a shit-ton of money on bitcoin, especially for guys who got in early.. and so the earlier the better... even though sometimes it can take a long time to get into large quantities of profits, and profits are not guaranteed either... not that any of those of us who claim to be investing in bitcoin should be obsessed with profits.

Yes, the investment may be less due to increased expenses in a week or a month, it is not a problem, but the problem is selling before a certain time. If you do not think about the emergency fund when investing, then later on, the investor may have to sell the investment during financial danger, so an ideal investor should also think about an emergency fund.

Anyone buying bitcoin with discretionary funds has to have at least a reasonable amount of back up funds to have confidence that they are not spending beyond their discretionary funds to buy bitcoin.  If they have absolutely no back up funds, then how would they know that they have enough money to reach their next pay period.

Of course, back up funds should be more than bare minimum amounts, but should attempt to anticipate any fluctuations in the income and/or expenses including fluctuations that might require up to 3 months of cash to cover expenses.  The back up funds do not need to be large when a person starts to buy bitcoin, even though it would seem logical that the longer that a person is building their bitcoin holdings, then they would simultaneously be building their back up funds, and if they are starting out with low amounts of back up funds, it could take more than a year to reach a level of having 3 months of expenses invested in bitcoin and 3 months of expenses in back up funds.

[SPIDERMAN008]

Even considering the amount people use to invest with the DCA as small isn't exactly correct even, people invest what they can using the DCA, one of its best quality is that you don't need to have too much to be able to invest in bitcoin using the DCA, you just need to have your discretionary income from which you can invest any amount you can tolerate, anything more than that will be a problem for the person and if you can't afford to lose the money then it's not a small amount.

In my opinion, when using the DCA strategy, it’s not a problem if the accumulated amount is small, because it really depends on your own financial capacity as long as you don’t exceed your means, it’s not a bad thing.

The key point is that whatever amount is allocated must align with our own capabiliti this is why effective financial management is crucial. It’s pointless to accumulate large amounts if, at the same time, we can’t manage our finances properly. I believe DCA is a suitable strategy for accumulating BTC. Not only is it easy to understand, but it’s also fundamentally easy to implement, making it suitable for anyone especially beginners.

Whatever money one invests with, if it is money outside of daily life or important expenses, then there is no problem in doing DCA with that. Now, if someone has discretionary income and also has some assets or savings, then they can also act as a backup fund. If one has a large amount deposited and wants to invest with that, then  can increase the amount by adding some of the deposited money to the amount that is doing DCA from discretionary income. As a result of this, one will have the advantage that he is able to buy bitcoin at an average price. The DCA method is suitable for all types of income and all types of professionals.

[Razmirraz]

Even considering the amount people use to invest with the DCA as small isn't exactly correct even, people invest what they can using the DCA, one of its best quality is that you don't need to have too much to be able to invest in bitcoin using the DCA, you just need to have your discretionary income from which you can invest any amount you can tolerate, anything more than that will be a problem for the person and if you can't afford to lose the money then it's not a small amount.

In my opinion, when using the DCA strategy, it’s not a problem if the accumulated amount is small, because it really depends on your own financial capacity as long as you don’t exceed your means, it’s not a bad thing.

It can be concluded that DCA is ideal for Bitcoin investment, especially for beginners who are just starting out because its flexibility allows them to invest according to their abilities without sacrificing financial stability for daily needs. When investors allocate money in an amount that is adjusted to their capabilities, it will create an anti-stress atmosphere or reduce emotions because they do not need to worry about daily price fluctuations. To ensure this strategy continues to run according to plan, the key lies in discipline and consistency. Allocating money regularly in small amounts will make it easier for them to maintain assets in the long term, rather than forcing themselves to buy large amounts at once.

[johnsaributua]

...

This momentum can be felt by all parties because a price drop like this is the right step for anyone with sufficient financial means to make purchases with the aim of increasing the amount of BTC which will become an asset for the future for those who don't waste the current opportunity.

DCA is a step that should be used by everyone because this strategy is the best way to buy Bitcoin. However we must consider our cash flow. When investing it's best not to force yourself to do so as it could become a serious problem. Therefore it's better to make purchases based on your income and within your means.

I say this because the DCA strategy doesn't require large sums. The consequences are clear everyone's income is different but the situation is unique. Some people may make purchases without considering their needs. Ultimately when something unexpected happens they may have to sell back their impressive investment or even half of what they've accumulated. Therefore it's not that you can't invest large sums but you should be mindful and avoid overextending yourself with large sums because we still have responsibilities to fulfill.

Well, it’s certainly a given that this price drop is an opportunity that should be taken advantage of such as by making a purchase but before doing so, we also need to consider other factors, particularly regarding cash flow or finances. We shouldn’t go so far as to invest all our savings, even though we have the right to do so personally, I don’t recommend making such a decision. What you mentioned is exactly what needs to be avoided. Some people might do this by pooling all their money when they feel the timing is right like during a price drop but that approach causes other things to be neglected, such as basic needs that must be met. And when something unexpected happens, this forces them to sell their Bitcoin. This means that money management is also something that must be paid attention to.

There are many things we have to look at so that when we do Bitcoin accumulation at the moment of price decline so that what we do will not cause problems that we will face because sometimes there are also those who are fooled by the price decline so they immediately do it in the most impressive way possible without seeing other things that are our responsibility for example the need for goods for our daily lives is no longer there but we are because we are in happiness about the price decline to want to accumulate so that the most important thing we immediately leave is also not good even though our goal is to take advantage of the momentum of the price decline because the priority remains while the momentum to increase the number of BTC is also not wasted so with such thinking I think we are safer in doing anything so that our goals are easier to achieve at the point we want.

[Halifat]

Even considering the amount people use to invest with the DCA as small isn't exactly correct even, people invest what they can using the DCA, one of its best quality is that you don't need to have too much to be able to invest in bitcoin using the DCA, you just need to have your discretionary income from which you can invest any amount you can tolerate, anything more than that will be a problem for the person and if you can't afford to lose the money then it's not a small amount.

In my opinion, when using the DCA strategy, it’s not a problem if the accumulated amount is small, because it really depends on your own financial capacity as long as you don’t exceed your means, it’s not a bad thing.

The key point is that whatever amount is allocated must align with our own capabiliti this is why effective financial management is crucial. It’s pointless to accumulate large amounts if, at the same time, we can’t manage our finances properly. I believe DCA is a suitable strategy for accumulating BTC. Not only is it easy to understand, but it’s also fundamentally easy to implement, making it suitable for anyone especially beginners.

Whatever money one invests with, if it is money outside of daily life or important expenses, then there is no problem in doing DCA with that. Now, if someone has discretionary income and also has some assets or savings, then they can also act as a backup fund. If one has a large amount deposited and wants to invest with that, then  can increase the amount by adding some of the deposited money to the amount that is doing DCA from discretionary income. As a result of this, one will have the advantage that he is able to buy bitcoin at an average price. The DCA method is suitable for all types of income and all types of professionals.

I get your point but it sounds misleading, in my own opinion or I will say what I understand is that any money that you are using to invest in Bitcoin must be your discretionary income, because all the money you mention if they did not fall inside the discretionary income definitely they are not to good for bitcoin investment, even the DCA strategies you mentioned must definitely be from discretionary income, if not it will result to a big mistake.

Discretionary income is the best income that can be used to invest in Bitcoin because we consider bitcoin investment as a long time investment, which is why we don't have to make use of any funds except the discretionary income so that we can confidently build our bitcoin polifolio with ease.

[Charcol]

No investment is guaranteed to yield a profit. You might be saying that Bitcoin is not guaranteed to yield a profit. If that is what you are saying, then you are right. To be honest, there is no guarantee of a specific profit by investing in Bitcoin. However, in the case of Bitcoin, it is not only about the profit.

Why would you invest only thinking about profit? You can also think that by accumulating Bitcoin, you are building a wealth. Although the profit in Bitcoin is uncertain, one thing is certain - if you control your wealth yourself, then you will have complete authority over that wealth; no one else will have control over it.

Yeah, we all understand that there’s not guaranteed in every investments, but do you know that investing in Bitcoin bring more returns and peace of mind then investing in any other coins that you don’t know about. Those that have been investing in Bitcoin for a very long time now where happy, because they knows that no mater how the market goes as far as they can be patient with the market conditions they most surely get the best outcome from the future market.

Anyone who invest in Bitcoin are going to think about the profits. Because they knows that Bitcoin is a reliable  currency that has be best coins all over the world, and which is everyone are rushing to have it as their assets.

I agree with you that Bitcoin is not like other altcoins or shitcoins. Bitcoin is completely different.

However, at the beginning you said that there is no guarantee of profit in investment. However, later you say it as if holding it for a long time will definitely bring the best outcome. Your idea may be different in reality. Because just because Bitcoin has rewarded long-term investors well in the past, it is probably not right to assume that the future outcome is guaranteed.

In my opinion, although there is a possibility of profit in Bitcoin investment, only expecting profit in the future is not the main strength of investment. Rather, you should think that as a long-term investor, you can custodian your own wealth. You can get some protection from debasement. You can build your position through disciplined accumulation in the long term. And to get these benefits, you do not have to think only about profit but also manage your discretionary income, emergency fund, cash flow and retention ability properly.

[cyberninja2]

It can be concluded that DCA is ideal for Bitcoin investment, especially for beginners who are just starting out because its flexibility allows them to invest according to their abilities without sacrificing financial stability for daily needs. When investors allocate money in an amount that is adjusted to their capabilities, it will create an anti-stress atmosphere or reduce emotions because they do not need to worry about daily price fluctuations. To ensure this strategy continues to run according to plan, the key lies in discipline and consistency. Allocating money regularly in small amounts will make it easier for them to maintain assets in the long term, rather than forcing themselves to buy large amounts at once.

For beginners, using this strategy is very suitable because they are still in the beginner stage and still need a very practical way to start investing in Bitcoin that will not mislead them.
Obviously, beginners usually don't have much initial capital to start, so with limited capital when investing, this will certainly lead to a direction that is easier for them to understand, allowing them to continue their approach and become more focused over time in their Bitcoin investment.

For those beginners, it is better to come without rushing into investing because if the investment is more appropriate according to our own abilities, if we are forced to exceed the strength that we have, in the end, the problem will be experienced by them, so let alone beginners, even people who have been doing it for a long time must do it according to our abilities and there is no need to force yourself to do something too aggressive, this will be a problem if it does not happen as desired.

[Muba20]

There is nothing wrong combining different accumulation strategies if you know what you are doing. If you understand how to combine them and you definitely understand what you doing,you won't have any problems when using them to accumulate bitcoin. The only problem is when you don't have Idea on  how these strategies works that's when you will make mistakes when combining them to accumulate bitcoin for the long-term but as long as you have basic knowledge of this three bitcoin accumulating strategies,DCA,buy dip and lump sum you won't make mistakes when combining them to to accumulate bitcoin.

What will even be the reason why someone would decide to use combined Bitcoin strategies for accumulating Bitcoin? It is because he or she does not know the best strategy to use for accumulating Bitcoin.Everyone knows the strategy that suits them best when accumulating Bitcoin, and this should be determined by how their discretionary funds come in. However, the best strategy that most investors use is the DCA method.If we decide to use combined strategies to accumulate Bitcoin, it may happen in a way where we save money over time in order to have a large amount available to buy Bitcoin at once. Personally, I see this as a waste of time.That is why I say that the way we receive our money should determine the kind of strategy we apply when accumulating Bitcoin.

DCA, lump sum, DIP are different strategies but can be used together according to the situation. Just because an investor is using all the strategies together does not mean that he is investing without understanding it. Because if someone understands his own cash flow, emergency fund, discretionary income and long-term holding ability, then there is no problem in using all those strategies together.

DCA can be the base strategy, because in the DCA method, people with all types of income, regular, irregular or contractual, get the opportunity to save regularly without waiting for the market. But if we already have additional reserve funds, bonus income, business profit or extra discretionary funds are available at a certain time. Then we can use lump sum. I do not see any problem in this. Again, if you keep DCA running, keep emergency fund separate, and do occasional dip buying from additional reserve funds, then this can also be a good idea.

[Grease5000]

There is nothing wrong combining different accumulation strategies if you know what you are doing. If you understand how to combine them and you definitely understand what you doing,you won't have any problems when using them to accumulate bitcoin. The only problem is when you don't have Idea on  how these strategies works that's when you will make mistakes when combining them to accumulate bitcoin for the long-term but as long as you have basic knowledge of this three bitcoin accumulating strategies,DCA,buy dip and lump sum you won't make mistakes when combining them to to accumulate bitcoin.

What will even be the reason why someone would decide to use combined Bitcoin strategies for accumulating Bitcoin? It is because he or she does not know the best strategy to use for accumulating Bitcoin.Everyone knows the strategy that suits them best when accumulating Bitcoin, and this should be determined by how their discretionary funds come in. However, the best strategy that most investors use is the DCA method.If we decide to use combined strategies to accumulate Bitcoin, it may happen in a way where we save money over time in order to have a large amount available to buy Bitcoin at once. Personally, I see this as a waste of time.That is why I say that the way we receive our money should determine the kind of strategy we apply when accumulating Bitcoin.

DCA, lump sum, DIP are different strategies but can be used together according to the situation. Just because an investor is using all the strategies together does not mean that he is investing without understanding it. Because if someone understands his own cash flow, emergency fund, discretionary income and long-term holding ability, then there is no problem in using all those strategies together.

DCA can be the base strategy, because in the DCA method, people with all types of income, regular, irregular or contractual, get the opportunity to save regularly without waiting for the market. But if we already have additional reserve funds, bonus income, business profit or extra discretionary funds are available at a certain time. Then we can use lump sum. I do not see any problem in this. Again, if you keep DCA running, keep emergency fund separate, and do occasional dip buying from additional reserve funds, then this can also be a good idea.

I think one of the  major thing that determines which Bitcoin accumulation strategy someone uses is their finances, not just their knowledge. Because someone with a large discretionary income available can use lump sum. While someone with a steady income but little funds may prefer DCA. And someone with extra cash on the side may  decide to buy dips when opportunities come.

Though  knowing how the strategies work is important, but your financial situation is what usually decides which strategy is best for you. That's why there is nothing wrong with using one strategy or combining different ones if it matches your income and long term goals.