JJG’s Outline of Bitcoin Investment Ideas

[Humblevirus]

Taking loan to invest as an investor is a bad idea and not for beginner alone, due to, it has mentioned clear around the threads in the forum that taking of loan to invest can make you feel uncomfortable with your investments and even when you have the long term goal with your investments, you can end make use of short term and when i visualize the whole thing, I see the point and reason of not encouraging for any loan to invest in bitcoin.

The reason why I will say taking a loan to invest in Bitcoin is bad is when someone takes a loan to invest for a short period with the aim of returning it after making some profit.However, if someone has the means to pay back the loan, I would say it is not a bad idea for that person to take a loan to invest in Bitcoin, whether the person is a newbie or not, because they have the means to repay the money without relying entirely on the Bitcoin investment.The reason why many people are against taking a loan to invest in Bitcoin is that there is a possibility that they may not be able to pay back the loan. So let us understand that taking a loan can be either bad or good depending on a person reason for taking the loan to invest in Bitcoin and their ability to repay it.

[ejikeme24]

The reason why I will say taking a loan to invest in Bitcoin is bad is when someone takes a loan to invest for a short period with the aim of returning it after making some profit.

Whether a person is investing for Long term or short term yet it's not acceptable or ideal for a person to invest with loan money reason been there's no guarantee if the price of Bitcoin will go up, taking out loan can be safe when you're very much certain that the investment will pay off. But in bitcoin it's not certain that you will be successful even though you invest for Long. That is to show that even though you take out loan to invest in the Long term or short term either ways,  you're not safe.

However, if someone has the means to pay back the loan, I would say it is not a bad idea for that person to take a loan to invest in Bitcoin, whether the person is a newbie or not, because they have the means to repay the money without relying entirely on the Bitcoin investment.The reason why many people are against taking a loan to invest in Bitcoin is that there is a possibility that they may not be able to pay back the loan. So let us understand that taking a loan can be either bad or good depending on a person reason for taking the loan to invest in Bitcoin and their ability to repay it.

I can't stop asking myself that, what could possibly make someone to go take out loan to invest in bitcoin, is it that they run out of discretionary funds? Of course if that's the case, they should wait patiently until they figure out Thier discretionary income to continue from where they stopped rather than taking out loan I think that's what every professional would do.

[Finebone]

The reason why I will say taking a loan to invest in Bitcoin is bad is when someone takes a loan to invest for a short period with the aim of returning it after making some profit.However, if someone has the means to pay back the loan, I would say it is not a bad idea for that person to take a loan to invest in Bitcoin, whether the person is a newbie or not, because they have the means to repay the money without relying entirely on the Bitcoin investment.The reason why many people are against taking a loan to invest in Bitcoin is that there is a possibility that they may not be able to pay back the loan. So let us understand that taking a loan can be either bad or good depending on a person reason for taking the loan to invest in Bitcoin and their ability to repay it.

It's never a good idea for a bitcoin investor to invest in bitcoin with a borrowed money, with the hope of repaying it back after making profit, because that will end badly, since their is a high possibility that Bitcoin might dip in price at that period that you may want to return the loan money, and you will likely sell in a loss, so it a bad idea to borrow money to invest in bitcoin with the hope of repaying back the loan from the investment.
 If you have other means of repaying back the loan without tempering with your investment, that's cool, but it should not be carried out by a newbie because his lack of experience may cost him his investment if not managed properly.

[JayJuanGee]

[edited out]

You are absolutely correct, buy the dip should not be a strategy of bitcoin accumulation we should be using for bitcoin investment just like you said we can only use it or see it as an additional or a bonus method that we can take advantage of to accumulate more bitcoin with less price but it should not be a strategy we are based on, reason being that it will delay your accumulation or investment journey, waiting for the dip is like waiting for something that you don’t know when it’s actually going to come, waiting for bitcoin dip before you can start accumulating is a big waste of time that should not be allowed in the life of an investor.
Using the DCA strategy is the best, you can decide to keep your reserve funds and then use it when there’s a dip to accumulate aggressively with less price.

I don't see why a person would be increasing his level of aggressiveness to buy dips, especially if he has money in a reserve fund to buy dips.  Doesn't the guy have a plan? or is he acting on emotion?

Let's say that a guy had an income of $30k per year ($2,500 per month), and maybe his expenses were around $1,500 per month, and he been buying $100 per week in bitcoin the past two years, and so then maybe he had also been putting $100 per week into his back up fund, so then starting around the beginning of the year, he started to ONLY put $50 per week into his back up funds because he considered his back up funds to be enough.. yet he decided to start a reserve fund for buying the dip, and so he had been putting $50 per week into his "buying the dip" reserve fund.

If the guy had not bought any dips between the beginning of the year until now, he would have had accumulated right around $1,300 into his buying the dip reserve fund.  So when should he use the "buy the dip" money?  and why does he need to get aggressive?  In this hypothetical, he has a "buy the dip" fund, and he can decide at what price points he might deploy some or all the fund, and the level of his aggressiveness had mostly already been limited to by the fund.  Is there something else that you expect the guy to do in order to "increase his level of aggressiveness?"

The reason why I will say taking a loan to invest in Bitcoin is bad is when someone takes a loan to invest for a short period with the aim of returning it after making some profit.However, if someone has the means to pay back the loan, I would say it is not a bad idea for that person to take a loan to invest in Bitcoin, whether the person is a newbie or not, because they have the means to repay the money without relying entirely on the Bitcoin investment.The reason why many people are against taking a loan to invest in Bitcoin is that there is a possibility that they may not be able to pay back the loan. So let us understand that taking a loan can be either bad or good depending on a person reason for taking the loan to invest in Bitcoin and their ability to repay it.

It's never a good idea for a bitcoin investor to invest in bitcoin with a borrowed money, with the hope of repaying it back after making profit, because that will end badly, since their is a high possibility that Bitcoin might dip in price at that period that you may want to return the loan money, and you will likely sell in a loss, so it a bad idea to borrow money to invest in bitcoin with the hope of repaying back the loan from the investment.
 If you have other means of repaying back the loan without tempering with your investment, that's cool, but it should not be carried out by a newbie because his lack of experience may cost him his investment if not managed properly.

You are contradicting yourself @Finebone.  You say that it is never good to get a loan, yet a person with alternative means to pay the loan can get a loan.

I don't get too excited about the necessity to use a loan to buy bitcoin, yet a loan does allow to invest more right now and then pay off the terms of the loan for the duration of the loan, and then there are the costs of the loan too.

So if the bitcoin price goes down or stay flat during the time period of paying off the loan, then it may well end up costing more for having had gotten the loan, and so then then the value of bitcoin would have to go up at least enough to off-set the costs of the loan in order for the loan to have had either reached a neutral position or a "profitable" position. 

Guys can make those kinds of choices, and frequently the terms of the loan do not necessarily justify getting a loan, but guys can make up their mind, especially if the they already have an income and/or other sources of funds that they are able to pay off the loan and they are not counting on the bitcoin price to go up in order to pay off the loan.

Frequently, I try to suggest to newbies to get better at their own cashflow management techniques before taking on the extra complications of taking out a loan and making sure that the terms are acceptable and their aren't any tricky (or hidden terms), yet there are guys who are already good at cashflow management and even good at using debt to their advantage, so those kinds of guys would surely able to figure out if they want to take chances in taking out the loan rather than just sticking with regular DCA from their income and/or perhaps reallocating any other funds that they might have into bitcoin, which are all more basic techniques and may well be enough to be able to put time, energy and value into bitcoin in a reasonable and even sufficiently aggressive manner.

[whiteblue]

Taking loan to invest as an investor is a bad idea and not for beginner alone, due to, it has mentioned clear around the threads in the forum that taking of loan to invest can make you feel uncomfortable with your investments and even when you have the long term goal with your investments, you can end make use of short term and when i visualize the whole thing, I see the point and reason of not encouraging for any loan to invest in bitcoin.

The reason why I will say taking a loan to invest in Bitcoin is bad is when someone takes a loan to invest for a short period with the aim of returning it after making some profit.However, if someone has the means to pay back the loan, I would say it is not a bad idea for that person to take a loan to invest in Bitcoin, whether the person is a newbie or not, because they have the means to repay the money without relying entirely on the Bitcoin investment.The reason why many people are against taking a loan to invest in Bitcoin is that there is a possibility that they may not be able to pay back the loan. So let us understand that taking a loan can be either bad or good depending on a person reason for taking the loan to invest in Bitcoin and their ability to repay it.

The option of taking out a loan to Buy Bitcoin and repaying it is certainly not considered an investment. Because you are buying Bitcoin and aiming for quick profits to repay the loan, it is a form of Trading.

Trading is full of risks, meaning taking out a loan exposes you to risk.

Therefore, avoid Loans if your intention is to invest.
As discussed previously by many users, or by JJG, disposable income is discretionary income, so consider this as a first step in starting to invest.

I hope you understand this, as loans are not the right solution.

[NewRevelation]

I can't stop asking myself that, what could possibly make someone to go take out loan to invest in bitcoin, is it that they run out of discretionary funds? Of course if that's the case, they should wait patiently until they figure out Thier discretionary income to continue from where they stopped rather than taking out loan I think that's what every professional would do.

I think one of the reasons why some investors take loan to invest in Bitcoin is because they see decline period as an opportunity to increase there BTC size by trying to buy more from the present Dip season. So I believe the plan is to seize the opportunity to increase there portfolio. And having no extra funds to do that, and been intentional with an investment mindset, that it is good to always HODL more Bitcoin in your portfolio, they go ahead to borrow just to buy more.

Even though I don't clap hands in full support for it, but I believe that it's just a business mentality to boost there holdings. I think at some point, provided the investor have alternative plans to repay, then sometimes, it's worth the risk, yea. Many business men do it. They borrow to invest in the business, with a target plan, and when it turns out good, they have a lot to gain, and they also face the risk too if it turns out negative.

In the case of Bitcoin investment, if an investor is fully determined to go a bit aggressive into the market, by buying from the DIP with loan, then he should have other sources of income that would be a reliable means of repayment since we cannot trust the price movement of Bitcoin, wether it will climb at that moment or will take longer to do so. Perhaps, sometimes going aggressive like that even with a loaned money is okay provided you have alternative plans to meet up with the loan requirements

[The Founding Titan]

Yes, when a person conducts his investment activities in DCA, he has to buy Bitcoin every month, that is, he buys Bitcoin throughout the year and it continues for a long time. But why should an investor start investing only at the lowest price of Bitcoin?

Look bro DCA is not limited to only making monthly purchase alone. A person can do DCA anytime that suits them as long as they are being consistent with their ongoing accumulation.
Also this your idea that an investor should start investing only at the lower prices is contradicting the purpose of DCA and how it works. If you have to be waiting for low prices to come before you make bitcoin purchases and accumulate then that person is no longer doing DCA, that is waiting for the dip. And it has been emphasized on this forum multiple times that is never a good idea to wait for a dip before ongoingly accumulating bitcoin as you would be wasting precious time and missing out on maximizing your returns.

I think people need to let go of this mentality that the DCA is this strict bitcoin investment strategy that requires sticking to a particular investment regiment that should not for any reason be broken like if you are investing monthly you have to stick to investing monthly with also a particular amount of money unless you want to make an increase in how much you invest or s decrease as well but the truth is that there is no strict way to use the DCA, the interval between purchases doesn't have to be fixed and neither does the amount a person needs to buy with, using the DCA people should buy with a tolerable amount of their discretionary income snd should buy whenever they can with no fixed price or time.

[Fash33]

In fact, if market conditions are like they are now, if they don't take advantage of this, it's certainly a mistake for them. They are typically overly aggressive buyers. So, when something like this happens, they waste their opportunity. This is certainly an inappropriate move for them. They are people who always accumulate, whether the price is rising or falling. Clearly, they always prioritize buying in all situations, especially in conditions like these. It's certainly worth buying with the aim of continuously increasing the quantity or value of their BTC investment, which will become their future asset.

There is no real common practice of increasing aggressiveness based on perception of dips, so it seems strange so many guys try to proclaim that there is some need to increase aggressiveness levels based on perception of dips.  Of course, within any cashflow management practice guys can have some strong systems in place for ongoingly buying bitcoin, so there might be times when the amount of bitcoin bought might be increased or decreased based on perceptions of strength of cashflow and sure guys feel good to be buying on dips, especially after the price goes up, yet if guys are actually investing 4-10 years or longer, there likely are not great differences between guys who focus on regularly buying bitcoin in a DCA kind of a practice as compared with guys who are trying to strategize their levels of buying aggressiveness around their perception of dips.

I agree with your point, Many folks confuse buying dip with to having a good investment strategy, and I don’t think  there’s any standard rule that say long term bitcoin investors should become more aggressive whenever the price of bitcoin falls, because  no one can accurately tell whether the price will continue to drop or start raising again, and for the investors with long term horizon of 4 to 10, years or more. what matters most is consistency more important than perfect the price. Buying more can make sense if having extra discretionary income available or your cash flow improves, Staying consistent and sticking to your investment plan is likely to produce better result than perfect the right time to buy bitcoin.

[ZeroVinsonN]

Well I understand thank you for that, delaying is not a good decision, from the many delays most of them are failures especially in uncertain expectations such as a continuous decline such as a disease when bitcoin goes down always hoping to go down again, and it becomes a psychological disease that must be treated.
 
Or maybe what we can outsmart is like dividing the two budget funds for purchases by having funds for routine DCA and also funds for purchases at a reduced price level that is targeted or worth buying, so DCA continues and we have the strength to accumulate when a crash occurs.
But the most appropriate decision is indeed to increase income because from there we can get more discretionary money to spend, the more discretionary income the more bitcoins we can get with more money this is simpler than thinking about it.

Some folks have valid reasons why they wait, like building emergence funds
The main thing is having a good sustainable investment plan instead of making decisions that is base on fear or expectations about where the price might go next. No one can predict future movements, so it better to focus on a strategy you can maintain over the long term with discretionary funds. Bitcoin uccessful accumulation is not about trying to outsmart the market. It’s about consistency and all round discipline

Valid reasons why they wait? Sounds like excuses instead of actually doing something about it, you can invest and build up your emergency fund at the same time so using your emergency fund as an excuse not to invest isn't a valid reason so don't get it twisted, right now it's 'you can't invest unless you've set up your emergency fund' later it's going to be 'you don't need your discretionary income to invest' watch the kind of information you try to spread before you end up misleading people into making mistakes they will regret.

[Brizi5000]

Taking loan to invest as an investor is a bad idea and not for beginner alone, due to, it has mentioned clear around the threads in the forum that taking of loan to invest can make you feel uncomfortable with your investments and even when you have the long term goal with your investments, you can end make use of short term and when i visualize the whole thing, I see the point and reason of not encouraging for any loan to invest in bitcoin.

The reason why I will say taking a loan to invest in Bitcoin is bad is when someone takes a loan to invest for a short period with the aim of returning it after making some profit.However, if someone has the means to pay back the loan, I would say it is not a bad idea for that person to take a loan to invest in Bitcoin, whether the person is a newbie or not, because they have the means to repay the money without relying entirely on the Bitcoin investment.The reason why many people are against taking a loan to invest in Bitcoin is that there is a possibility that they may not be able to pay back the loan. So let us understand that taking a loan can be either bad or good depending on a person reason for taking the loan to invest in Bitcoin and their ability to repay it.

I don’t really agree to the idea of a newbie who’s just getting started in bitcoin investment to take out loan to invest in bitcoin because ordinarily as a newbie there’s going to be pressure on them especially when they notice a downturn in the market because most of them don’t really understand how this volatility works and how to handle it without panicking to sell even when they invest with their own cash talk more of investing with a borrowed money. Yes, some may have other means of paying back the loan outside their bitcoin investment but then why couldn’t they just simply start investing within their own means if truly they have such means of paying back as they claimed because getting started with bitcoin investment one needs just a discretionary income to start investing. Uncertainty over finances may occur, loss of job and unexpected financial circumstances may arise within such space of taking out the loan and also paying back thereby putting them on an extra pressure. It’s better for newbies to just start investing within their means of discretionary income and not with a borrowed money to avoid all this things in the future.

[junder]

I do believe it's not about a person's income or lack thereof, but if that person has some discretionary income, after paying bills, that's what it's about. While Bitcoin offers users an option to invest a small amount, not everyone can do so. People who are not able to cope with their daily needs should first focus on improving their finances. After they can regularly save a bit of money without sacrificing living costs, then a long-term Bitcoin investment becomes a more viable and responsible option.

Before investing or fulfilling our own desires we must be able to see ourselves if we need income to meet our needs such as with the main basic needs and after that is fulfilled there are also funds left over then it can be used for whatever we want whether investing or fulfilling other desires.

With income that can be taxed, I think this is our own income, and yes of course we must first focus on increasing our own income so that we can meet our needs and invest (if we are interested).

[Frankolala]

[edited out]

You are absolutely correct, buy the dip should not be a strategy of bitcoin accumulation we should be using for bitcoin investment just like you said we can only use it or see it as an additional or a bonus method that we can take advantage of to accumulate more bitcoin with less price but it should not be a strategy we are based on, reason being that it will delay your accumulation or investment journey, waiting for the dip is like waiting for something that you don’t know when it’s actually going to come, waiting for bitcoin dip before you can start accumulating is a big waste of time that should not be allowed in the life of an investor.
Using the DCA strategy is the best, you can decide to keep your reserve funds and then use it when there’s a dip to accumulate aggressively with less price.

I don't see why a person would be increasing his level of aggressiveness to buy dips, especially if he has money in a reserve fund to buy dips.  Doesn't the guy have a plan? or is he acting on emotion?

Let's say that a guy had an income of $30k per year ($2,500 per month), and maybe his expenses were around $1,500 per month, and he been buying $100 per week in bitcoin the past two years, and so then maybe he had also been putting $100 per week into his back up fund, so then starting around the beginning of the year, he started to ONLY put $50 per week into his back up funds because he considered his back up funds to be enough.. yet he decided to start a reserve fund for buying the dip, and so he had been putting $50 per week into his "buying the dip" reserve fund.

If the guy had not bought any dips between the beginning of the year until now, he would have had accumulated right around $1,300 into his buying the dip reserve fund.  So when should he use the "buy the dip" money?  and why does he need to get aggressive?  In this hypothetical, he has a "buy the dip" fund, and he can decide at what price points he might deploy some or all the fund, and the level of his aggressiveness had mostly already been limited to by the fund.  Is there something else that you expect the guy to do in order to "increase his level of aggressiveness?"

I don't think that there's any more level of aggressiveness he can be apart from using his reserve funds to buy at the dip based on his own price target. If he wants to go more aggressive that should boil down to his DCA amount from their regular discretionary income and not buying on the dip because his reserve funds is there to handle that.

I don't know why folks like to focus on buying aggressively only on the dip that it's not certain since it may come or not instead of just ongoingly buying Bitcoin with DCA and buy aggressively, whenever you can with DCA. It's just similar like saying you are only going to buy aggressively only at the dip and keep on piling up funds for the dip instead of just using the money to add to your DCA when the dip isn't sure.  That's another way of slowing down your accumulation pace.

[KeenanEl19]

I myself put this reserve fund and emergency fund in the needs category, so when I receive my income there I divide it for daily needs, for savings, and for emergency funds and then the rest I allocate to bitcoin with a minimum amount that I have set myself.

It seems confusing to use the term savings in this context since savings is reserve funds, and so there are two kinds of back up funds which are emergency funds and reserve funds.  You seem to be putting back up funds in the same category as basic expenses, and they are not.  Basic expenses are those that have to be taken care of that month and they cannot be deferred.  After you account for basic expenses, then you have discretionary funds and from the discretionary fund you can decide how much prioritiy you are going to give to back up funds, investing and/or discretionary consumption. 

Hmm, maybe I should change my approach as you suggestedby covering my needs first and only then allocating the remaining funds (discretionary funds) to my reserve fund, emergency fund, and investments. This is a valuable lesson for me, and I’ll give it a try. This is one of the uses of forums, to share knowledge which is certainly useful for each other.

Regardless, money management is something that needs attention in this context. With good money management, we’ll be able to allocate our funds effectively. I believe someone will face difficulties if they don’t have good money management irregular spending could make it hard for them to even meet their basic needs.
 

[G_Besar]

---

Before investing or fulfilling our own desires we must be able to see ourselves if we need income to meet our needs such as with the main basic needs and after that is fulfilled there are also funds left over then it can be used for whatever we want whether investing or fulfilling other desires.

With income that can be taxed, I think this is our own income, and yes of course we must first focus on increasing our own income so that we can meet our needs and invest (if we are interested).

I think almost everyone is interested in investing because it can also increase income if the assets purchased for investment continue to grow over months or years. As for how to implement it, clearly everyone will look for a way that's easier for them to do so without having to be distracted by spending money on their own personal needs. And I also agree with one of the methods you mentioned, because each of us should prioritize basic needs before investing in anything, including Bitcoin. As for income, I think everyone needs it, and when income increases, almost everything becomes easier because the only obstacles are time and our own desires.

[Alonso_]

Well I understand thank you for that, delaying is not a good decision, from the many delays most of them are failures especially in uncertain expectations such as a continuous decline such as a disease when bitcoin goes down always hoping to go down again, and it becomes a psychological disease that must be treated.
 
Or maybe what we can outsmart is like dividing the two budget funds for purchases by having funds for routine DCA and also funds for purchases at a reduced price level that is targeted or worth buying, so DCA continues and we have the strength to accumulate when a crash occurs.
But the most appropriate decision is indeed to increase income because from there we can get more discretionary money to spend, the more discretionary income the more bitcoins we can get with more money this is simpler than thinking about it.

Some folks have valid reasons why they wait, like building emergence funds
The main thing is having a good sustainable investment plan instead of making decisions that is base on fear or expectations about where the price might go next. No one can predict future movements, so it better to focus on a strategy you can maintain over the long term with discretionary funds. Bitcoin uccessful accumulation is not about trying to outsmart the market. It’s about consistency and all round discipline

As far as I understand, consistency, especially in Bitcoin, is what drives or increases the chances of success. This means having a stable income is also necessary to maintain your allocation consistently over the long term. This isn't mandatory, but it's much better if you have a stable income.
On the other hand, no one knows where the market will move. Fear will always be present, as this is a risky activity, but for me, Bitcoin's growth from its inception to now is enough to reassure me.

That is absolutely true, consistency is something that is very important in terms of buying and accumulating bitcoin, if you’re not consistent I believe our investment wouldn’t go anywhere, and that would mean that we are not ready to make any investments in bitcoin just yet, stable income is important, because when you have a stable income it gives you an edge of staying consistent with buying and investing in bitcoin.

On the other hand, I don’t like considering the future of bitcoin, I’m mostly interested in buying and accumulating on a consistent basis for a long term investment, bitcoin doesn’t have anything to prove to anyone in the market.

[BluebloodCXVI]

I think people need to let go of this mentality that the DCA is this strict bitcoin investment strategy that requires sticking to a particular investment regiment that should not for any reason be broken like if you are investing monthly you have to stick to investing monthly with also a particular amount of money unless you want to make an increase in how much you invest or s decrease as well but the truth is that there is no strict way to use the DCA, the interval between purchases doesn't have to be fixed and neither does the amount a person needs to buy with, using the DCA people should buy with a tolerable amount of their discretionary income snd should buy whenever they can with no fixed price or time.

The whole point of doing DCA is to help people to be able make purchases without them stressing over market timing, not to make them feel like they have failed just because they missed a particular date or were not able to invest with a fixed amount that they planned to use.
This is real life fam, there are some days that a person might have more disposable income available to them and there are also days too when they might have less. So if their strategy cannot adapt to situations like this, there’s a good chance that their investment might begin to feel frustrating and they may end up giving up on investing altogether. So that’s why i would rather see a person invest with what they can and whenever they can and then be consistent with it rather than them trying to force themselves into a schedule that they realistically can’t maintain.

[Joeboy]

That is absolutely true, consistency is something that is very important in terms of buying and accumulating bitcoin, if you’re not consistent I believe our investment wouldn’t go anywhere, and that would mean that we are not ready to make any investments in bitcoin just yet , stable income is important, because when you have a stable income it gives you an edge of staying consistent with buying and investing in bitcoin.

On the other hand, I don’t like considering the future of bitcoin, I’m mostly interested in buying and accumulating on a consistent basis for a long term investment, bitcoin doesn’t have anything to prove to anyone in the market.

Consistency isn't how the readiness of an investor is being determined... Readiness to invest is determined by the availability of your discretionary income.. Infact there is really nothing wrong if an investor chooses to invest flexibly while they are still building their conviction and gaining a better understanding of Bitcoin...Moreso not everyone even have a fixed monthly income to go with, but yet they are still able to figure out their discretionary income regardless.. If that is the case, it is more sensible for those individual to just invest with their discretionary income based on their financial capacity...

[Grease5000]

Taking loan to invest as an investor is a bad idea and not for beginner alone, due to, it has mentioned clear around the threads in the forum that taking of loan to invest can make you feel uncomfortable with your investments and even when you have the long term goal with your investments, you can end make use of short term and when i visualize the whole thing, I see the point and reason of not encouraging for any loan to invest in bitcoin.

The reason why I will say taking a loan to invest in Bitcoin is bad is when someone takes a loan to invest for a short period with the aim of returning it after making some profit.However, if someone has the means to pay back the loan, I would say it is not a bad idea for that person to take a loan to invest in Bitcoin, whether the person is a newbie or not, because they have the means to repay the money without relying entirely on the Bitcoin investment.The reason why many people are against taking a loan to invest in Bitcoin is that there is a possibility that they may not be able to pay back the loan. So let us understand that taking a loan can be either bad or good depending on a person reason for taking the loan to invest in Bitcoin and their ability to repay it.

I agree with your point. Taking a loan to invest in Bitcoin is  for me is  a poor decision, not just for beginners but for anyone who intends to invest with a long term mindset. Borrowed money comes with repayment deadline and not always Idea for someone who want to.start Accumulating Bitcoin because a  loan turns investing into a race against time because monthly repayments continue whether the market is up or down. That is why the DCA funded by discretionary income  is a more preferable approach  because as long as investors is able to figure out their discretionary income from what they earn no matter how little it is they can start buying bitcoin with it,  rather than using borrowed money which have a monthly repayment deadline, and at times can make an investor to sell off their Bitcoin stash to offset the loan

For someone  to be able to hold through long term investment, financial peace of mind is just as valuable as potential returns. That's why consistently buying Bitcoin with whatever discretionary income you have even if it's a small amount is a much safer and more effective strategy than borrowing money in hopes of earning larger profits.

[NewRevelation]

Hmm, maybe I should change my approach as you suggestedby covering my needs first and only then allocating the remaining funds (discretionary funds) to my reserve fund, emergency fund, and investments. This is a valuable lesson for me, and I’ll give it a try. This is one of the uses of forums, to share knowledge which is certainly useful for each other.

Yea, that's the actually and right investment pattern. It is basic needs first before anything else. Imagine if you take off your investment amount first, take some funds out for emergency funds and other stuffs, and then use the remaining for your basic needs, what if the money left isn't enough to cover your basic needs, what would you do then? Would you go hungry all long till your next pay comes in? You would have no option than to tamper your investment just to survive, and with such, you can't really build you portfolio rightly. So, it's best we first settle basic needs before thinking of anything else.

I myself put this reserve fund and emergency fund in the needs category, so when I receive my income there I divide it for daily needs, for savings, and for emergency funds and then the rest I allocate to bitcoin with a minimum amount that I have set myself.

It seems confusing to use the term savings in this context since savings is reserve funds, and so there are two kinds of back up funds which are emergency funds and reserve funds.  You seem to be putting back up funds in the same category as basic expenses, and they are not.  Basic expenses are those that have to be taken care of that month and they cannot be deferred.  After you account for basic expenses, then you have discretionary funds and from the discretionary fund you can decide how much prioritiy you are going to give to back up funds, investing and/or discretionary consumption. 

Regardless, money management is something that needs attention in this context. With good money management, we’ll be able to allocate our funds effectively. I believe someone will face difficulties if they don’t have good money management irregular spending could make it hard for them to even meet their basic needs.
 

Yea, and one of the first money management practices you have to employ as an investor is to first figure out your discretionary income from your main income, by doing this, it means you have successfully taking care of your basic needs first before allocating some money for your investment, emergency funds and reserve. When you successfully do this, it helps you invest in peace and also learn better ways to do effective distribution of income since you have peacefully taken care of the basic necessities which is the main thing that allows you to invest in peace

[Supreme Donvic]

[edited out]

You are absolutely correct, buy the dip should not be a strategy of bitcoin accumulation we should be using for bitcoin investment just like you said we can only use it or see it as an additional or a bonus method that we can take advantage of to accumulate more bitcoin with less price but it should not be a strategy we are based on, reason being that it will delay your accumulation or investment journey, waiting for the dip is like waiting for something that you don’t know when it’s actually going to come, waiting for bitcoin dip before you can start accumulating is a big waste of time that should not be allowed in the life of an investor.
Using the DCA strategy is the best, you can decide to keep your reserve funds and then use it when there’s a dip to accumulate aggressively with less price.

I don't see why a person would be increasing his level of aggressiveness to buy dips, especially if he has money in a reserve fund to buy dips.  Doesn't the guy have a plan? or is he acting on emotion?

Let's say that a guy had an income of $30k per year ($2,500 per month), and maybe his expenses were around $1,500 per month, and he been buying $100 per week in bitcoin the past two years, and so then maybe he had also been putting $100 per week into his back up fund, so then starting around the beginning of the year, he started to ONLY put $50 per week into his back up funds because he considered his back up funds to be enough.. yet he decided to start a reserve fund for buying the dip, and so he had been putting $50 per week into his "buying the dip" reserve fund.

If the guy had not bought any dips between the beginning of the year until now, he would have had accumulated right around $1,300 into his buying the dip reserve fund.  So when should he use the "buy the dip" money?  and why does he need to get aggressive?  In this hypothetical, he has a "buy the dip" fund, and he can decide at what price points he might deploy some or all the fund, and the level of his aggressiveness had mostly already been limited to by the fund.  Is there something else that you expect the guy to do in order to "increase his level of aggressiveness?"

I don't know why folks like to focus on buying aggressively only on the dip that it's not certain since it may come or not instead of just ongoingly buying Bitcoin with DCA and buy aggressively, whenever you can with DCA. It's just similar like saying you are only going to buy aggressively only at the dip and keep on piling up funds for the dip instead of just using the money to add to your DCA when the dip isn't sure.  That's another way of slowing down your accumulation pace.

I am using the DCA strategy and I also have a reserve funds that I have kept to be used whenever there is a dip as I'm speaking to you now right now I have used almost all my reserve funds to accumulate bitcoin during this dip, I only accumulate aggressively with my reserve funds during a dip in Bitcoin price I don't accumulate aggressively when bitcoin price is stable or high in price the reason why I do this is because I know that Bitcoin always bring us an opportunity to accumulate with less price so I always make good use of that opportunity when it comes.