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.
Your statement about hard work and extra work is a bit confusing.
No matter the income of a person, there may well be value in making sure that they have back up funds, especially if they are uncertain about either their income or their expenses, and surely some guys also find solutions in getting more income by adding more work, whether they add the work through the job(s) that they already have or by seeking new jobs, and sometimes it might not be worth the extra time to seek new jobs when there might be ways to either get promoted or to otherwise increase skills, experiences and/or certifications, so there might be ways that time would be better spent in order to be able to get put into a job position that pays more money, so that maybe more pay is received for the same number of hours, and even sometimes hours of work might end up getting reduced since the pay is better or maybe the higher paying job does not require as many hours.
Of course, historically in this thread, and in other forum threads, there have been quite a few guys who frequently complained about their location or otherwise about their limitations that seem to be related to the country that they are in, and surely there is only so much that some guys might be able to do in regards to their location and perhaps even their age, health and even experience limitations. Guys have to brainstorm their own situation to try to figure out what might be the opportunities for them, yet there also can be times in which doors to possible opportunities close and you have to work with what you got...
....and if you work years and years and years building bitcoin, you might end up having more options than what you otherwise would have had, yet of course, there are no guarantees and even if you are not able to put enough value into bitcoin, then the amount of difference (or improvement in your life) that bitcoin ends up bringing might end up being smaller than what your expectations had been expecting from it.
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.
Ongoing action tends to be better than waiting actions, especially in the kinds of circumstances that I described in which a person is tending to only get weekly (or whatever might be the timeline) pay.. I tend to speculate that an overwhelming majority of guys are stuck in situations in which they are not getting too many chances to have lump sum amounts available to them and even in those situations when lump sum amounts come available, their finances (and perhaps their psychology too?) are in such a mess that they are not in a position to be able to take advantage of their having had received lump sum amounts that they would have had been able to invest if they had been more organized and prepared in advance.
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.
Many normal people are not in the practice of investing, and it is not because they are dumb, but instead because they are not taking actions on a regular basis because they have false beliefs about their needing to have lump sum amounts in order to be able to advantage from investing, so their own mindset will tend to limit their abilities to take advantage of the power of bitcoin.
Bitcoin provides opportunities to both invest in small amounts, but also opportunties to learn as you go.
Of course, there may well be no need to invest in small amounts in those cases where large amounts are already available, yet it can be quite problematic for bitcoin newbies to believe that the mere fact that they have a large amount that is either available (or they can get access to it) that they should put the large amount into bitcoin right away. Even for guys with large amounts, there may be value in trying to both be strategic with the amount but also to get used to buying bitcoin regularly with smaller amounts so that they can get accustomed to both the practice of buying bitcoin regularly and to really feel how it affects them financially and psychologically to be locking up money for 4-10 years or longer... so even if they have lump sums it might not be to their advantage to put it all in at once or to strategize with dips in regards to that money.
But, getting back to the earlier point about guys not tending to have much if any lump sums available to them, that tends to be the reality that an overwhelming majority of normal people have to work with, and they are going to tend to be way better off in getting started by looking at what income that they regularly have coming in and then to build both bitcoin and back up funds at the same time, while making sure that they have some reasonable amount that is regularly allocated to discretionary consumption too.. even if they might have periods in which they are trying to not discretionarily consume, the reality of the matter is that it becomes quite difficult to not discretionarily consume at least some amount in order to preserve and make relationship, which most of us need to have in our lives in order to stay sane, productive and even self-confident with a sense of life-purpose.
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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.
Part of my point related to what Showlove1 was actually seeming to promote (buying on the dip rather than regular buying), and another part of my point related to where he was doing it (in this thread).
In the end, guys can do whatever they like, yet if he is promoting that crap in this thread, there is a bit of a problem based on both the theme of the thread, and also probably related to the fact that he might not even be trying to interact with the topic of the thread.
I don't even expect all guys to agree with me, but if they are presenting counter points and/or points that may well be in tension with the topic of the thread, then they may well have an obligation to mention that tension rather than just rambling on to preach a topic that it seems that I had already been in the process of repetitively rebutting and/or arguing with - whether in this thread or in various other threads on the forum (perhaps especially in the buying the dip thread).
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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.
There may well be times in which guys might be able to increase their level of aggressiveness during BTC price dips based on whatever circumstances they find themselves in holding extra cash, yet many times when guys describe their increasing their aggressiveness on dips, they had not been structuring their ongoing bitcoin buying in ways that are reasonably aggressive and instead they are holding back value to buy dips that may or may not come, and then it becomes problematic for both them and in their attempts to promote such likely to be inferior strategies while acting as if they are employing a superior strategy, when they are not.
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.
You are absolutely correct, no method or strategy of buying Bitcoin is bad per say all of them are great as they all have their own advantage and disadvantage but I have try to find out the disadvantage of buying consistently using the DCA method but I could not find any and perhaps that is why it is the most convenient strategy ever in Bitcoin investment because almost if not all investors uses this strategy in accumulating Bitcoin. Buying the Dip can never be superior to consistent buying I partially agree
because this depends on how much you are using in buying consistently, meaning you can not be purchasing 10-$20 worth of Bitcoin weekly and thinking you will pass someone that buys thousands of dollars worth of Bitcoin when there is Dip.Your example is quite lacking @sotelorene. At least you should try to work on your example a bit better, so that you are attempting to show guys in like situations in order to really engage with the topic. Instead you make an obvious point that may well not even be needed to be said. Yeah, a guy who only has $10-20 per week might well not be comparable to the dip buyer who has thousands of dollars to buy on dip, unless we are saying that someone who has been buying the dip, had not been buying with his $20 per week for a whole year, and then at the end of the year he has $1,040 (since there are 52 weeks in a year).
Let's attempt to be more grounded in our examples, since there could be ways to attempt to make comparisons that are more realistic, yet it seems that I have already repeated so many times to suggest that it tends to be problematic to be even trying to compare guys with different budgets since you may well be losing the points when you are not working with guys with the same budget... or when there are too many variables that are screwing up the comparison.
It is an obvious point that a guy who has more money is going to have more money to invest, so I hardly see any point arguing about something like that, but if you show guys with similar budgets or even guys with different budgets and different levels of discipline than you might be able to make some meaningful points that get guys to think beyond the fact that rich guys have more money than poor guys.
