JJG’s Outline of Bitcoin Investment Ideas

[samadam007]

You misunderstand something here, yes we invest in bitcoin with our discretionary income but to be able to invest with all of your discretionary income then you have to be as aggressive as can be and not everyone can tolerate that level of aggressiveness, talking about is easy but the truth is that people have things they spend money on that's doesn't fit into their essentials expenses, these are their discretionary spendings and if you spend your entire discretionary income on accumulating bitcoin then there will be nothing left for these other things, of course they are not essential so they can be ignored but not by everyone.

The goal of long term holding isn't to be as aggressive as possible, but to accumulate BTC in a way you can sustain it over the years. Everyone have  different financial priorities and risk tolerance. Creating  room for savings and other financial needs doesn't make folks less committed to Bitcoin. A steady DCA strategy with an amount you can comfortably afford is more sustainable and makes it easier for folks to stay invested for the long term. Consistency over the years beats aggressive buying

[Bluedrem]

The goal of long term holding isn't to be as aggressive as possible, but to accumulate BTC in a way you can sustain it over the years. Everyone have  different financial priorities and risk tolerance. Creating  room for savings and other financial needs doesn't make folks less committed to Bitcoin. A steady DCA strategy with an amount you can comfortably afford is more sustainable and makes it easier for folks to stay invested for the long term. Consistency over the years beats aggressive buying

Yes, you are right, it is important to protect something after it has been acquired. While the prerequisite for Bitcoin investment is to maintain the portfolio for a long time to be profitable, we should not invest in Bitcoin in a situation where the portfolio is at risk. It is important to maintain the Bitcoin portfolio rather than buying Bitcoin aggressively and aggressively beyond our means.
For example, suppose a person has a monthly discretionary income of $500, in which case he spends only $400 on managing DCA in Bitcoin but he does not have any other important funds including emergency funds.
Another person has a discretionary income of $300 but he uses $100 from it to buy Bitcoin and manages other funds with the remaining money.
I think the second person's Bitcoin portfolio will be longer-term because he uses less money to buy Bitcoin but is taking care not to put any other pressure on his Bitcoin portfolio later. In that case, I think it will be even harder for the first person to hold onto his Bitcoin portfolio for the long term than the second person.

[BluebloodCXVI]

You misunderstand something here, yes we invest in bitcoin with our discretionary income but to be able to invest with all of your discretionary income then you have to be as aggressive as can be and not everyone can tolerate that level of aggressiveness

First of all let me clarify things here; you don’t need to use all your discretionary income to buy bitcoin before it can be counted as aggressive investing. A person that is committing like 70% of their discretionary income into bitcoin can still be considered as aggressive without them having to commit the whole 100%.
Certainly each person’s aggressiveness is gonna be determined by how much discretionary income that is available to them and how much they are ready to spend on their buys.

talking about is easy but the truth is that people have things they spend money on that's doesn't fit into their essentials expenses, these are their discretionary spendings and if you spend your entire discretionary income on accumulating bitcoin then there will be nothing left for these other things, of course they are not essential so they can be ignored but not by everyone.

Well in this kind of a situation, it is a matter of personal preference if somebody decides to use some part of their discretionary income to make some discretionary spendings. But that is not necessarily the main purpose of discretionary income in a strict sense. Of course people can choose to spend on whatever the fuck that matters to them whether it is investing in bitcoin or spending it on other non-essential stuffs.

[SmartCharpa]

In order to succeed in Bitcoin investment you must be very discipline in using your money meaning you must have a very good management skill and you must discipline yourself to follow the management rules you have kept for yourself, and yes if you don't have a discretionary income you cannot succeed in Bitcoin investment, without a discretionary income it is impossible for you to invest in Bitcoin for long time, I don't see anyhow you can succeed or you can hold your bitcoin for long time if you are using money meant for your basic need, so it is only your discretionary income you can use for Bitcoin long term investment.

An investor will find it difficult to invest when they don’t have discretionary funds from their income. Those types of people will be hoping for the market to recover from where they bought it, so they can use the money to cover other expenses. At that point, they have no choice but to sell, whether the market is high or low. If you want to succeed in Bitcoin, you need to have the mindset to hold for the long term, and if you want to have the confidence to hold, you should invest from your discretionary funds so you won’t fear when the price goes down.

However, if you can’t figure out discretionary funds from your income, it’s not advisable to buy with the cash you may need tomorrow. In that situation, we don’t know what the market is going to look like tomorrow. If you buy from your discretionary funds, you will feel less pressure throughout your investment period.

[Shaponzy]

I don't think it always has to be calculated down to an exact figure. Let take for  an instance if a person has some money  left  after settling all necessary bill, that he can either spend, save, or invest without affecting his finances, then that is already discretionary income because the exact amount may change from month to month, its never measured in any particular figure rather at times investor may decide to take some percentage of the money they have after settling all necessary bilI  to buy bitcoin and save  the remaining  percentage as backup fund.

For me what matters most is knowing that the money being used for Bitcoin is not needed for essential expenses and being disciplined enough to invest only what can comfortably be left untouched for the long term.

Discretionary money also changes regularly due to changing inflation and changing expenses. Every month or week, the expenses are not the same amount, but our income is stable in the short term. Due to unstable expenses and stable income, the amount of discretionary money may be less in some months/weeks or more in some months. So it is difficult to say what percentage of our total income should be invested or what percentage should be kept under the backup fund. But we can plan in advance how to manage discretionary money considering the situation.

However, there are still some investors who can keep their monthly or weekly expenses relatively stable with their financial management skills and can also provide discretionary money stably. But we should adapt to the changing necessary expenses, in which case sometimes your discretionary money may be less and sometimes it may be more.

If guys are making proper categorization of their basic expenses and largely distinguishing needs from wants, then by the time the subtract out all of the needs from their income, then they are left with their discretionary funds, and surely guys could establish some mostly set percentage of investment versus savings versus discretionary consumption (such as 33.3% each).

As you mentioned it is more difficult to have a set percentage of the overall income, unless a person is largely confident that his discretionary income is sufficient to cover whatever target percentage that he wants to achieve or maybe he has some extra reserve funds that he has set aside in order to cover any short-falls that he might have in his discretionary income in any particular pay period.

Frequently guys will talk about one of the better ways to maximize their level of bitcoin investing aggressiveness is to measure how much that they are able to invest each pay period and to keep that amount flexible so that they can tend towards the higher possible amounts based on how much discretionary funds are available any pay period (or any particular week if guys in their earlier stages of bitcoin accumulation might be trying to make sure to buy bitcoin every week).

You have clearly highlighted the clearly differences between a fixed DCA amount and a flexible DCA method/strategy.
A fixed DCA amount is great on building one's consistency and also a discipline, because creat the zeal of buying bitcoin regularly regardless of the market condition at that moment, but relaying on the fixed DCA amount can limits one's level of accumulation sometimes. Example if really you plan to buy like $20 worth of bitcoin every week, you may positioned to continue buying at that rate, even when in the weeks you have an extra discretionary income left like $200 available. And that's just wasting of aggression or missing opportunities that would've be more aggressive on you bitcoin stacking.

However, a flexible DCA strategy resolved the issues by setting a non-negotiable minimum amount, like $20,$30,$40/week to maintain the consistency and the discipline. So whenever the your Income becomes higher, especially when the expenses are lower, one can just put more additional discretionary income into bitcoin purchases in order to keep the flexibility on DCA strategy.

[Grease5000]

The goal of long term holding isn't to be as aggressive as possible, but to accumulate BTC in a way you can sustain it over the years. Everyone have  different financial priorities and risk tolerance. Creating  room for savings and other financial needs doesn't make folks less committed to Bitcoin. A steady DCA strategy with an amount you can comfortably afford is more sustainable and makes it easier for folks to stay invested for the long term. Consistency over the years beats aggressive buying

I agree with you. Because most time the investor who wins is not always the one who buys the most, but the one who can keep buying for years without stopping.

That's why using DCA  strategy with  discretionary income is one of the bestway way for beginners  and people with low income because It fits  most beginners finances, keeps them consistent, and reduces the chances of selling  Bitcoin because they invested money they  could afford to leave untouch.

Above all Long term investing is more about discipline and staying in the game than trying to be aggressive for a short time.

[Jewan420]

I agree with you. Because most time the investor who wins is not always the one who buys the most, but the one who can keep buying for years without stopping.

That's why using DCA  strategy with  discretionary income is one of the bestway way for beginners  and people with low income because It fits  most beginners finances, keeps them consistent, and reduces the chances of selling  Bitcoin because they invested money they  could afford to leave untouch.

Above all Long term investing is more about discipline and staying in the game than trying to be aggressive for a short time.

Success mainly depends on your goal and long-term investment. How long you have been buying and how much you are buying is not the main thing. Suppose your goal is to invest 1 Bitcoin and hold it for 2-3 cycles. Now if you have the ability, you can buy 1 Bitcoin very quickly or you can buy it for a long time by DCA, it is not important. But if you fail to hold it for a long time and fail to achieve your goal, then even after buying for a long time, you will be a failed investor. The buying strategy does not determine the success of the investment, but how determined you are to achieve the goal is important.

[Hardyrobust]

In order to succeed in Bitcoin investment you must be very discipline in using your money meaning you must have a very good management skill and you must discipline yourself to follow the management rules you have kept for yourself, and yes if you don't have a discretionary income you cannot succeed in Bitcoin investment, without a discretionary income it is impossible for you to invest in Bitcoin for long time, I don't see anyhow you can succeed or you can hold your bitcoin for long time if you are using money meant for your basic need, so it is only your discretionary income you can use for Bitcoin long term investment.

An investor will find it difficult to invest when they don’t have discretionary funds from their income. Those types of people will be hoping for the market to recover from where they bought it, so they can use the money to cover other expenses. At that point, they have no choice but to sell, whether the market is high or low. If you want to succeed in Bitcoin, you need to have the mindset to hold for the long term, and if you want to have the confidence to hold, you should invest from your discretionary funds so you won’t fear when the price goes down.

However, if you can’t figure out discretionary funds from your income, it’s not advisable to buy with the cash you may need tomorrow. In that situation, we don’t know what the market is going to look like tomorrow. If you buy from your discretionary funds, you will feel less pressure throughout your investment period.

For those that thinks that they can outsmart the market by buying bitcoin with money that is meant for there expenses will only end up in losses. If someone is unable to figure out there discretionary income or they don't have discretionary income, then it is obvious they are not qualified to buy bitcoin because if they do , they will be pressure into selling there bitcoin before the plan time and use the money to meet the need that the money was used in buying bitcoin.

[avp2306]

In order to succeed in Bitcoin investment you must be very discipline in using your money meaning you must have a very good management skill and you must discipline yourself to follow the management rules you have kept for yourself, and yes if you don't have a discretionary income you cannot succeed in Bitcoin investment, without a discretionary income it is impossible for you to invest in Bitcoin for long time, I don't see anyhow you can succeed or you can hold your bitcoin for long time if you are using money meant for your basic need, so it is only your discretionary income you can use for Bitcoin long term investment.

An investor will find it difficult to invest when they don’t have discretionary funds from their income. Those types of people will be hoping for the market to recover from where they bought it, so they can use the money to cover other expenses. At that point, they have no choice but to sell, whether the market is high or low. If you want to succeed in Bitcoin, you need to have the mindset to hold for the long term, and if you want to have the confidence to hold, you should invest from your discretionary funds so you won’t fear when the price goes down.

However, if you can’t figure out discretionary funds from your income, it’s not advisable to buy with the cash you may need tomorrow. In that situation, we don’t know what the market is going to look like tomorrow. If you buy from your discretionary funds, you will feel less pressure throughout your investment period.

Doing investment without having those important thing to have like discretionary funds will give them guarantee to have heavy pressure and panic if there's some challenging scenario happened.

Those plans to hold for long term will work only if the investor have discretionary income.

If their daily needs and other important expenses has been taken care for sure that they get less pressure once there's price dumps happened and selling will not cross in their minds. It somehow give them a confidence to hold on because they don't have any other things to think about.

If they are still figuring out their discretionary income, much better not to force themselves to accumulate and better to pay attention to fix or calculate their expenses yet then proceed once everything settled. If they can able to do that there's more better chance that their accumulation will became smoother.

[Sonia_123]

if you only buy when "free money is available" then it is no longer DCA.Folks with small income can DCA efficienty as long as the income is regular, while those with irregular income can create their own DCA….during periods of high income, they can put aside a fixed percentage of  cash and later invest little by little during low income periods.
Essential expenses and savings should always come first.

Bitcoin investment does not require steady income, you might think that having a steady income will make your investment become more easier, but there are many people with a steady income who are still finding it difficult to invest because of too much expenses, while someone with an irregular income is able to invest.

If someone with a steady income is finding it difficult to invest, they can cut down their expenses because without discretionary income, it will be difficult to invest.

Moreover, if you are not using the money anytime soon, why can’t you invest the money in Bitcoin instead of saving it in the bank? Bitcoin will increase in value, while the money in the bank will only remain the same as you save it.

It's true that investing doesn't always require a steady income. The importance of allocating funds to investments to protect them from inflation is also a very wise decision. However, transferring all your savings to Bitcoin carries high risks due to its extreme volatility. Discipline in managing finances (reducing excess spending) is more crucial to investment success than simply having a fixed income, but having an income (even if it is not fixed) that leaves some discretionary income is still an absolute requirement for someone to be able to invest. Even if you don't have a steady income, you can still invest in Bitcoin, but you should not ignore the main principle in Bitcoin investment "only use money that you can afford to risk" and not interfere with basic needs or basic profits if the money is lost.

Abandering with regards, I believe that discretionary income is the important thing, not whether or not your income is regular or irregular. For many people who have fixed salaries. It can be difficult to invest since they have not got enough money to cover their lifestyle and for some. Individuals who have seasonal income or freelance income. It might be difficult to inves.

It might surprise you to note that those investors with seasonal or freelance incomes even invest more in bitcoin than those without monthly income because they know that their income is not  monthly, steady nor sure so they tend to properly manage the funds that comes to them seasonally or otherwise by making sure they set aside their discretionary income for investment always since it will take a longer time before their income arrives unlike regular earners that feels the funds are steadily coming will see reasons why they should not buy up to their discretionary income or at all and then procrastinate till when they fell is okay for them, they gets easily deceived by their monthly salary and accumulate less thinking they have accumulated more than the seasonal earner, whereas the seasonal earner has more stash in his portfolio than him.

[Agbam]

if you only buy when "free money is available" then it is no longer DCA.Folks with small income can DCA efficienty as long as the income is regular, while those with irregular income can create their own DCA….during periods of high income, they can put aside a fixed percentage of  cash and later invest little by little during low income periods.
Essential expenses and savings should always come first.

Bitcoin investment does not require steady income, you might think that having a steady income will make your investment become more easier, but there are many people with a steady income who are still finding it difficult to invest because of too much expenses, while someone with an irregular income is able to invest.

If someone with a steady income is finding it difficult to invest, they can cut down their expenses because without discretionary income, it will be difficult to invest.

Moreover, if you are not using the money anytime soon, why can’t you invest the money in Bitcoin instead of saving it in the bank? Bitcoin will increase in value, while the money in the bank will only remain the same as you save it.

It's true that investing doesn't always require a steady income. The importance of allocating funds to investments to protect them from inflation is also a very wise decision. However, transferring all your savings to Bitcoin carries high risks due to its extreme volatility. Discipline in managing finances (reducing excess spending) is more crucial to investment success than simply having a fixed income, but having an income (even if it is not fixed) that leaves some discretionary income is still an absolute requirement for someone to be able to invest. Even if you don't have a steady income, you can still invest in Bitcoin, but you should not ignore the main principle in Bitcoin investment "only use money that you can afford to risk lose" and not interfere with basic needs or basic profits if the money is lost.

FTFY - Maybe you can call me "the word police?"  

The actual expression in bitcoin investing (and any other investing) and even  in trading, is to  "only use money that you can afford to lose."  To me, it seems a bit retarded, or disconnected that so many guys are "afraid to" to use the actual expression and they want to substitute the expression for some disconnected and meaningless expression - because it seems that they want to detach themselves from the risk of bitcoin as an investment, as if bitcoin as an investment is guaranteed, when it is not.  

Sure we consider bitcoin to be amongst the best of investments if not the best, but it still does not cause it to be guaranteed or that we can imply that there are not risks of completely or mostly losing it...and leaving the impression more vague.. about what you are willing to "risk".. that just seems like another expectation that there is some kind of guarantee in the investment or that you want to soften the impact of the actual expression.  

I am not sure if you are using that "risk" versus "loss" language for your own psychology benefit or in order to describe expectations that other guys should have, which I think it is false to be trying to water down the expression to leave guys with some sense of guaranteed recovery, when that is not true.  

Why change the expression to make your investment into bitcoin feel better? or are you doing it for other guys?

Word police indeed.. lol
You didn’t see the other guy Samadam referring to discretionary money as “free money”. Guys sometimes in a bid to make light of a matter use words they feel is more subtle without knowing they might be changing the meaning of the word or phrase.

Most people who are afraid to say “money you can afford to lose” do so because they’re not investing with the expectation to lose their money and they tend to trust in bitcoin like there’s an assurance of profit no matter what. So saying that phrase makes them feel as though they’re doubting or don’t trust bitcoin enough or they’re taking a risk they’re not supposed to.

Yeah just like you said we all know  how well bitcoin have done so far and we also expect it will do better but it’s not without it’s risk. Some people just want to be in denial of the risk but that doesn’t change the reality.

[Padi24]

The goal of long term holding isn't to be as aggressive as possible, but to accumulate BTC in a way you can sustain it over the years. Everyone have  different financial priorities and risk tolerance. Creating  room for savings and other financial needs doesn't make folks less committed to Bitcoin. A steady DCA strategy with an amount you can comfortably afford is more sustainable and makes it easier for folks to stay invested for the long term. Consistency over the years beats aggressive buying

You have made a very good point @ Samadam007 and of course being aggressive is not a must it's individuals choice to decide if they are going to be aggressive with Thier Bitcoin investment or they are going to Stick to that amount they have been investing with, and whatever the case may be, I'm sure that they won't get affected. Because the major reason why we need to be aggressive is so as to enable us achieve our investment target on time but then, we need to examine ourselves very well before taking any decision to avoid messing our investment up. One thing I know for sure is that even without being aggressive we can still get to our investment target.

[Jamestown70]

The goal of long term holding isn't to be as aggressive as possible, but to accumulate BTC in a way you can sustain it over the years. Everyone have  different financial priorities and risk tolerance. Creating  room for savings and other financial needs doesn't make folks less committed to Bitcoin. A steady DCA strategy with an amount you can comfortably afford is more sustainable and makes it easier for folks to stay invested for the long term. Consistency over the years beats aggressive buying

You have made a very good point @ Samadam007 and of course being aggressive is not a must it's individuals choice to decide if they are going to be aggressive with Thier Bitcoin investment or they are going to Stick to that amount they have been investing with, and whatever the case may be, I'm sure that they won't get affected. Because the major reason why we need to be aggressive is so as to enable us achieve our investment target on time but then, we need to examine ourselves very well before taking any decision to avoid messing our investment up. One thing I know for sure is that even without being aggressive we can still get to our investment target.

I agree to what @Samadam007 said, the essence of a guy been aggressive in his Bitcoin accumulation is not because he want to be aggressive, it’s primarily because of the availability of extra cash. Most investors wants to be aggressive but they don’t have the resources to foot it, so they consistently accumulate bit by bit for those guys using the DCA strategy.

It’s not a bad idea reaching your goal before your scheduled time, shows how discipline and committed a guy can be, but if reaching your goal before time will make a guy allocate more than discretionary funds to investing, then it becomes wrong, at some point you might not end up reaching your goal because you must have liquidated your funds because of a certain need or emergency.