JJG’s Outline of Bitcoin Investment Ideas

[icebar]

I think that discretionary income is the key factor, but I will add that a lower bit price does not mean that investors are more able to take risks. A 20% drop could seem like a good deal but if a person takes up a year of future savings to purchase that 20%, they've actually lost flexibility. I believe the best way is to determine how much you want to spend ahead of time. Then make your purchases at the right speed. This will enable a dip to affect the speed at which you deploy your allocation without altering the overall financial constraints that you already have.

Discretionary income is very important in our Bitcoin investment because without it we can't be able to invest, while investors are busy accumulating their Bitcoin they should also make some funds available for the Dip if they are interested in doubling or been aggressive anytime the price Dip. And I see Dip as a big opportunity for those investors who  are ready for it and being aggressive when there is Dip doesn't mean you are taking much risk, as long as the fund is coming from your discretionary the risk is okay.

Not all dips are opportunities. Because the opportunity you are looking for may or may not come. Especially if you think you should buy aggressively just because the price has dropped, you risk making the wrong decision. It is good to get Bitcoin at a low price, but you should consider that this low price will not increase your income, will not increase your emergency reserve, or even reduce your future expenses. Yes, if someone has a discretionary fund, basic expenses are covered, and the backup fund is fairly strong, then he can allocate a little more during the dip. But if you buy with emergency money, rent money, or the necessary cash flow for the next few months to catch the dip, then in my opinion it will become a stress rather than an investment. Especially if the price drops later or a life emergency occurs, you may be forced to sell.

[Ashawowo(OS)]

To me, it seems practical that on a regular basis none of the fields would go to zero, even the back up funds field, except maybe if a person is considering that they are way overstacked in the back up funds arena.. otherwise, maybe if priority is given to investing in bitcoin, then there would still be some value that is used for discretionary consumption and some value that would go into back up funds, even if there might be some weeks (or whatever your investment period might be) that the amount going into back up funds and/or discretionary consumption might only be 1% to 5% in each of those categories.

I think what is very practical in the case the investor has over-stacked backup funds and still largely in his accumulation journey is to do some 70% into bitcoin investment and 30% into discretionary consumption so he still finds a balance between taking care of his discretionary needs and investing in bitcoin, hopefully if he sees he's put a lot into discretionary consumption of which he's not used for a while, then he can do a 100% of his discretionary income into bitcoin pending the time his backup funds or funds allocated to discretionary consumption goes lower and he has to top it up again.

[Lembo69]

Discretionary income is very important in our Bitcoin investment because without it we can't be able to invest,

Yes, discretionary income is very important in our investment because Bitcoin is a risky currency and there is no possibility of a certain profit. Therefore, Bitcoin investors are always told to invest from discretionary income. Bitcoin profit is not certain even if we follow the best method. Therefore, an investor is always told to invest from the money that he is ready to lose. And if that money is lost, he will not suffer any financial or human loss, so this discretionary income is very important for investing.

And I see Dip as a big opportunity for those investors who  are ready for it and being aggressive when there is Dip

I want to express my personal opinion here that the Bitcoin market is completely unpredictable and not in anyone's favor. No one knows when the price will decrease or increase in the market. Yes, an investor can buy Bitcoin aggressively if he wants to, he can take advantage of the fall. If he does not take advantage of the fall with that money from his emergency fund and take advantage of it and do not take a loan. If he takes a loan, his blood pressure may increase due to human worries. And if he uses that money from the emergency fund to take advantage of it, his investment will be completely at risk.

So, realistically, if he has any other money apart from the emergency fund and loan, he can use that money to invest aggressively.

[Joeboy]

~snip~
  

Emulating big investors may not go down well with some other investors since they have different motives, income variations and sometimes also different priorities to there investment. So I think it's totally wrong to do so.

So, everyone to his own ability and financial strength and practice. I believe one the major thing with the big investors is that, since they have the money flexibility, they tend to carryout some buying patterns or sometimes proclaim things that may not be suitable for a low income earner and investor, and at this point, if such a a low income earner tries to emulate them, then they are sure to face big problems with there subsequently.

I think the major thing here is buying, been able to figure out your discretionary and keep accumulating Bitcoin as much as you can, while ensuring a better allocation and income management practice. Though there could be sometimes that low income earners and investors can learn a thing or two from there investment pattern, but heavily emulating them might give you future problems.

Investment should always be done based in your own cahsflow instead of one imitating someone else... As investors it is very necessary to do a proper analysis of your finances to help determine the amount that is comfortable for you to commit into Bitcoin for a long term duration...It's somewhat difficult for two individuals to have the same financial strength and this is why it is so improper to try to imitate someone else's pattern.   In the case of the Whales, their own pattern of investment is on a whole different level due to the large amount of discretionary income at their disposal...If a pleb tries to invest using that same pattern, he/she am could end up in problem because such a strategy may involve the pleb dipping into the money which isn't meant for their investments...

[Sim_card]

he can take advantage of the fall. If he does not take advantage of the fall with that money from his emergency fund and take advantage of it and do not take a loan.

You are not to tamper with your emergency funds for any reason only when you're hit with real life emergency. Your emergency funds isn't for the accumulation of bitcoin when there's a dip because it's the backup funds to your bitcoin investment to prevent you from selling your bitcoin when you are hit with real life emergency.

Anyone that uses his emergency funds to buy bitcoin because of a dip is only gambling with his bitcoin investment because if you're hit with a real life emergency, you will use your bitcoin as your emergency funds and if the price is below your entry, you will be at loss. Your reserve funds is what you can use to buy bitcoin during a dip and not your emergency funds because your reserve funds is flexible.

Don't do what will make you reduce your bitcoin stash and regret your actions because your bitcoin stash should be growing overtime till your reach your bitcoin target.

[Saltysugar99]

To me, it seems practical that on a regular basis none of the fields would go to zero, even the back up funds field, except maybe if a person is considering that they are way overstacked in the back up funds arena.. otherwise, maybe if priority is given to investing in bitcoin, then there would still be some value that is used for discretionary consumption and some value that would go into back up funds, even if there might be some weeks (or whatever your investment period might be) that the amount going into back up funds and/or discretionary consumption might only be 1% to 5% in each of those categories.

I think what is very practical in the case the investor has over-stacked backup funds and still largely in his accumulation journey is to do some 70% into bitcoin investment and 30% into discretionary consumption so he still finds a balance between taking care of his discretionary needs and investing in bitcoin, hopefully if he sees he's put a lot into discretionary consumption of which he's not used for a while, then he can do a 100% of his discretionary income into bitcoin pending the time his backup funds or funds allocated to discretionary consumption goes lower and he has to top it up again.

Since the expenses are not the same in all months a person cannot DCA in Bitcoin according to a fixed percentage. And investing in Bitcoin, it is not necessary to maintain a fixed budget or fixed time according to fixed rules. In case of investing, one should not put pressure on his financial and mental state and maintain Bitcoin accumulation in a way that will make it possible to continue DCA sustainably for a long time. You may have set aside $200 for discretionary consumption in a certain month, but have used only $50 for months, then it may be reasonable to DCA in Bitcoin with the remaining part. But since there is an extra $150 fund left, if it is needed in the future, then it would not be right to invest in Bitcoin just because it is unusually left. The same logic applies to back up funds. If the cash becomes much higher than your own reasonable target, then there is no special benefit in storing more cash indefinitely. The purpose of back up funds is to prevent forced sales and strengthen the planning of investing in Bitcoin. If you have a strong or over funded backup and you are still in a meaningful accumulation stage, it is logical to increase your Bitcoin allocation. Trying to maintain it at a fixed percentage does not seem right.

[Dxdiax26]

~Snip~

You are not to tamper with your emergency funds for any reason only when you're hit with real life emergency. Your emergency funds isn't for the accumulation of bitcoin when there's a dip because it's the backup funds to your bitcoin investment to prevent you from selling your bitcoin when you are hit with real life emergency.

Anyone that uses his emergency funds to buy bitcoin because of a dip is only gambling with his bitcoin investment because if you're hit with a real life emergency, you will use your bitcoin as your emergency funds and if the price is below your entry, you will be at loss. Your reserve funds is what you can use to buy bitcoin during a dip and not your emergency funds because your reserve funds is flexible.

Don't do what will make you reduce your bitcoin stash and regret your actions because your bitcoin stash should be growing overtime till your reach your bitcoin target.

These emergency funds shouldn't be used elsewhere. There's a dedicated reserve fund specifically for Bitcoin investments. This issue often arises from misuse, leading many to accumulate Bitcoin with their emergency funds. Although this idea has been frequently discussed in this topic, some still invest using their emergency funds instead of their reserve funds, resulting in a chaotic Bitcoin investment.

It feels very wrong for some of us to make purchases using our emergency funds. I think they do this during a market downturn to take advantage of the market situation, even though there's nothing wrong with taking advantage of the situation, but they do it with their reserve funds, not their emergency funds.
Because emergency funds are part of personal interests in the real world, while if they use their reserve funds, I think they've capitalized on the market situation quite well, arguing that making a purchase is not a wrong decision because they're using their reserve funds.

It's best to research every decision carefully, so that what you do doesn't result in mistakes that could lead to real-life consequences. This situation will always motivate and encourage us to invest during a market downturn, which benefits us in doing so.

[Obulis]

Yes, if someone has a discretionary fund, basic expenses are covered, and the backup fund is fairly strong, then he can allocate a little more during the dip. But if you buy with emergency money, rent money, or the necessary cash flow for the next few months to catch the dip, then in my opinion it will become a stress rather than an investment. Especially if the price drops later or a life emergency occurs, you may be forced to sell.

Men! allocation of funds (backup funds, emergency funds or any statuary savings like house rent) just to catch up with the dip because of the opportunity that someone see it to be is improper allocation of funds, a financial mismanagement. This kind of decision has landed many into financial pressure which is not supposed to be if not for the mismanagement, and this kind of decision can even go on to spread bad news about Bitcoin, like he did Bitcoin investment and now he doesn't have money to take care of himself and his family, he even sold some properties and things like, these people wouldn't know it was their own mismanagement that landed them in that mess.

Your opinion is in order, because an investor doing that will take it to be investment when in few times to come they might land themselves into financial pressure that will result to forced selling of their Bitcoin asset and even leave broke.

[JayJuanGee]

I think that discretionary income is the key factor, but I will add that a lower bit price does not mean that investors are more able to take risks. A 20% drop could seem like a good deal but if a person takes up a year of future savings to purchase that 20%, they've actually lost flexibility. I believe the best way is to determine how much you want to spend ahead of time. Then make your purchases at the right speed. This will enable a dip to affect the speed at which you deploy your allocation without altering the overall financial constraints that you already have.

Discretionary income is very important in our Bitcoin investment because without it we can't be able to invest, while investors are busy accumulating their Bitcoin they should also make some funds available for the Dip if they are interested in doubling or been aggressive anytime the price Dip.

You are correct to say that discretionary funds are needed to invest into bitcoin, since if a person is buying bitcoin with non-discretionary funds, then they are trading or gambling since they need that money to pay for their expenses.

You are wrong in your proclamation that guys need to prepare to buy the dip.

So get the fuck out of here with such nonsense attempts to characterize dip buying as superior, when it is not.

It tends to be much better for guys to be buying consistently, persistently, ongoingly, regularly and perhaps even aggressively, than waiting around for dips that may or may not end up happening, especially guys who might not have a lot of money and especially guys who might rarely get opportunties to lump sum buy bitcoin.

Buying the dip could supplement (or hedge) lump sum buying and even supplement when a lot of money had already been put into bitcoin at a certain price.. but those kinds of things are not normal and regular for an overwhelming majority of normal and regular people who would be way the fuck better off to work on buying bitcoin regularly and also perhaps strengthening their cashflow to figure out how much bitcoin that they can regularly buy on a weekly-ish basis rather than getting caught up on trying to figure out whether dips are going to come or not.. probably especially their first 1-2 cycles in bitcoin, which is 4-8 years.

And I see Dip as a big opportunity for those investors who  are ready for it

Fuck off with your nonsense trying to promote buying the dip as if it were a superior strategy when it is not.  Go somewhere else with your bullshit, or I will just start deleting your distracting and nonsense posts.   This is an investment thread, and unless you can describe how buying the dip fits into investment rather than a fucking around waiting strategy, then you seem to be off topic for this thread.

and being aggressive when there is Dip doesn't mean you are taking much risk, as long as the fund is coming from your discretionary the risk is okay.

How many fucking times did I already suggest that: 1) there is no reason to be fucking around trying to change the level of your aggressiveness based on BTC price changes and 2) buying on dips is not necessarily more aggressive than regular buying of bitcoin (such as DCA) since you can already set forth your level of aggressiveness based on DCA... so the fact is that you are probably being less aggressive when you are fucking around holding back money and waiting for dips that may or may not end up happening.

Do you even know what thread you are in?

[NewRevelation]

It's best to research every decision carefully, so that what you do doesn't result in mistakes that could lead to real-life consequences. This situation will always motivate and encourage us to invest during a market downturn, which benefits us in doing so.

Priorities should NEVER be placed to buying Bitcoin in down time. When downtime buying is prioritised, it shows you are promoting buying the DiP strategy which is not the better buying strategies, because it tends to delay investors from growing there investments consistently. How do you grow when you keep waiting for the Dip that you are not sure of when it will happen or if it will happen?

The DCA should be used instead. It encourages and motivates you to remain consistent in the market, buying and growing your investments gradually with little but consistent buying which builds up your portfolio over the years. Buying the Dip is okay, but it shouldn't be prioritised over the DCA strategy.

[Morayoam91]

That true, this because  if people are going to wait until they have fully gather their emergency funds first before now decide on buying Bitcoin, they might end up not starting. Most especially this days how inflation eats up fiat money.
For a normal earner the most practical thing to do is for you to just build up the both at the same time. Juat a strategy of dividing what soever extra money you have each month. Some of the part into Bitcoin while the other for emergency backup funds.

With this strategy you are already protecting urself from unexpected expense today while on the other hand still securing your Bitcoin for long term wealth. It will be a waste of valuable time if deciding on to be perfect before starting the other.

It is important to have a clear decision to invest without any excuses. People try to move forward financially through their hard work, but they can also do so through extra work. Along with investing, they can also meet the basic needs of their family and create an emergency fund. Because financial clarity is essential to move forward in investing in the long term; it is not impossible, it will come through extra work. It is not uncommon to face sudden dangers in life. It can happen to more or less everyone, but at that time, there may be a need for cash that may exceed the limits of your emergency fund, then it may become mandatory to let go of your accumulated assets. Therefore, it is important to ensure your financial security through hard work and not through excuses. Waiting for the perfect time is just a waste of time, so it is necessary to maintain consistency in investing.

[Different patterns]

Buying the dip could supplement (or hedge) lump sum buying and even supplement when a lot of money had already been put into bitcoin at a certain price.. but those kinds of things are not normal and regular for an overwhelming majority of normal and regular people who would be way the fuck better off to work on buying bitcoin regularly and also perhaps strengthening their cashflow to figure out how much bitcoin that they can regularly buy on a weekly-ish basis rather than getting caught up on trying to figure out whether dips are going to come or not.. probably especially their first 1-2 cycles in bitcoin, which is 4-8 years.

One of the problem that some people find difficult to understand about dips is that, you as an investor it will make you forget the value of what you want to achieve. If your aim is to focus on bitcoin accumulation for long term, it better to fine system that can make you to be consistently, that make more sense than trying to wait for perfect time.

And another reason why buying bitcoin regularly is a better approach for most people is that, what we earn is total  different from each other, even if there’s opportunity for dips, due to some folks law earning, they won’t be able to take advantage of dips, is better to focus on bitcoin accumulation than wait for dip.

[Son Of Blockchain (SOB)]

You are wrong in your proclamation that guys need to prepare to buy the dip.

So get the fuck out of here with such nonsense attempts to characterize dip buying as superior, when it is not.

It tends to be much better for guys to be buying consistently, persistently, ongoingly, regularly and perhaps even aggressively, than waiting around for dips that may or may not end up happening, especially guys who might not have a lot of money and especially guys who might rarely get opportunties to lump sum buy bitcoin.

Buying the dip could supplement (or hedge) lump sum buying and even supplement when a lot of money had already been put into bitcoin at a certain price.. but those kinds of things are not normal and regular for an overwhelming majority of normal and regular people who would be way the fuck better off to work on buying bitcoin regularly and also perhaps strengthening their cashflow to figure out how much bitcoin that they can regularly buy on a weekly-ish basis rather than getting caught up on trying to figure out whether dips are going to come or not.. probably especially their first 1-2 cycles in bitcoin, which is 4-8 years.

Although everyone have their preferences of strategy they think it's best but the best way to investment in a volatile asset like Bitcoin still remains buying it consistently, other strategies are still relevant but when teaching people about Bitcoin investment especially newbies it's good to tell them about strategies that would make their investment journey easier, not the ones that could make them deviate to trading out of ignorance.
 So I support your response to him Jay, buying the dip can never be superior to buying consistently using the DCA. People who focus on buying dips or timing the market to buy might barely get the right timing but buying consistently gives an investor chances of buying different dips without timing it.

[UpTober]

Yes you’re right!
And of course, the external market conditions will matter too, but i feel like the variance that most individuals can control is largely a function of their consistency, risk sizing, and also their willingness to keep learning about bitcoin even when the price is boring.
So at the end of the day, choice remains available to us at every step of the way, and that is both the opportunity and the responsibility that we investors need to make use of and take seriously. Let’s not act like we’re completely helpless when it comes to how our investment turns out; there are definitely still plenty of things that are within our control.

Look, you have to control yourself in everything you do and you must use a Bitcoin emergency fund to deal with the situation. However, if you are not able to control the situation yourself, you can collapse in the middle or in the middle of investing, so of course every person should have this knowledge to move forward towards the future by following a strategy. If you are attracted to investing in more Bitcoin, it is not beyond your control,
but you should not buy Bitcoin aggressively at all. Buy Bitcoin within your means and move towards the future correctly, of course it will be easier for you to hold Bitcoin investment for the long term only by following a strategy.

Sometimes buying Bitcoin aggressively is the most effective decision for an investor, but it depends on the type of investment of the investor and the financial condition of the investor at that time, discretionary income. Real investors do not get restless when the Bitcoin market is dumping, but they see an opportunity to enrich their investment in this dumping market. I am an investor, I am investing consistently and I am building a rich emergency fund and I am continuing to invest with discretionary income, while continuing to invest, if I see that the market has come down relatively and I have a good amount of money at that time, then of course I will buy Bitcoin aggressively. Since my objective is long-term, if I can increase my investment aggressively in a few steps, it is good for me, good for my investment. One thing must always be kept in your knowledge that sometimes some decisions, some risks can change your long-term investment a lot.

[oll]

... will always motivate and encourage us to invest during a market downturn, which benefits us in doing so.

Looking at the Bitcoin price chart, it's easy to fall into the trap of thinking that a price bottom is always predictable. But in reality, it's unpredictable. There's no need to trade and waste your energy worrying about and calculating the price's future course. DCA principles clearly explain that you should buy without looking at the price, but rather at dates calculated in advance as the time for new Bitcoin purchases.
And thanks to this, in a few years, you'll find yourself a calm and successful Bitcoin investor. Your Bitcoin holdings will simply grow.