Your statement is contradictory to what is needed to start investing in bitcoin, since isn’t mandatory for a newbie to have discretionary income before they can start investing in bitcoin, so what is required for a brand new investor to start investing in bitcoin, what is required to start investing in bitcoin is a discretionary income, so if you’re saying this here, then you’re going to be misleading newbies here with your statement, considering your rank I will assume you’ve been investing and buying bitcoin, if I may ask when you started investing in bitcoin did you start your investment outside your discretionary income ?, because if you did invest outside your discretionary incomes, by investing with money meant for your expenses then that is a huge blunder you’re making, and you might end up buying selling like a trader.
What if someone doesn't have disposable income
It should be clear that if you do not have disposable income you cannot invest since by definition investment requires keeping the money in the investment and if the money is not disposable then it is needed for expenses. Why would you buy bitcoin with money that you need for your expenses? That sounds like gambling to me, and we are not talking about gambling with your bitcoin, at least not in this thread. This is an investment thread.
When needs arise, how can we meet the basic necessities of life with our families such as kitchen utensils which can't be postponed Meanwhile my friend said that for beginner investors, if they follow the previous question, they don't need or are required to have disposable income. I completely agree with your answer, my friend. The answer doesn't align with what is being discussed, especially since what you said is not in our opinion.
How can someone facilitate their Bitcoin investment without disposable income I was also surprised after understanding what they said, when they sentenced beginner investors not to need such funds. The main reason for protecting investments is simply having these funds as something that can save investments that are sometimes only recently accumulated through DCA.
Your whole post is confusing, and seems to toy with the idea that maybe it might be ok to buy bitcoin even if you don't have disposable income, and even if you know the answer, you are not clear enough about it. It can be quite challenging to both lock up money for 4-10 years or longer, but also consider that when you invest in bitcoin, you are using money that you can afford to lose, so you are not going to be ongoingly reacting to whether your bitcoin is up, down or sideways, but instead perhaps ongoingly buying bitcoin for 4-10 years or longer to build it up.. and yeah, it likely is good to hold onto any bitcoin that you buy for at least 4 years from the time that you bought it, even if you have rolling bitcoin purchases over a period of 4-10 years or more.
That's not true even though we don't accept short term investment here yet there are people who made profit from Their short term investment, but even at that it's not advised to invest for Short term with Bitcoin because Bitcoin is not always good in short term but it is good when you invest and HODL for Long term probably 5-10 years or more.
Whatsoever profit that you think that
short-term investors have made, dosen't necessarily mean that they are in a better position that those who have held their Bitcoin for long term durations...And so I believe that folks need to understand that Bitcoin is better approached with a long term mindset since doing so enable folks to better accumulate Bitcoin while giving their holdings a sufficient number of timeframe for it to grow without the investor having to react to every price movement...Then again, long term investment wouldn't still guarantee you profit due to Bitcoin's very own volatile nature, but at least it tend to place folks in more better position than they would have been with trading and short term investments...
There is no need to mix up our vocabulary.
Short term investors are traders, and we should call them traders, even if they call themselves investors when they are not.
Also, we are talking about investing here and not trading, so we might not need to dwell too much on what traders may or may not be doing.. and sure no problem getting some digs in at traders from time to time if we are keeping in mind our main investment topic that has enough subtopics on its own, such as cashflow management ideas to keep us ongoingly buying bitcoin to build up our holdings.
Sincerely, I believe Bitcoin's past history is a major source of motivation to new investors today. It's history helps to teach and/or show that it is a pure store of value. So I don't see anything wrong when one refers to the history of a things in reference to the presence.
Investors who bought Bitcoin 10 years back, who has seen the volatility of Bitcoin and have stayed through it's movement, either upwards, downwards and/or sideways will always reflect to its historical appreciation in market value over the years, because it shows clearly that Bitcoin is a store of value.
Whatever you do in bitcoin investment, always remember that bitcoin focuses on what’s happening in present day reality, to determine what the price will trade now. what has happened in the past doesn’t matter anymore regarding present or future performances. Things has changed and will keep changing everyday. So what will determine today’s price are things happening today, what will determine tomorrow prices are things that will happen tomorrow. You can look at the past to know about bitcoin developments, who invented it and why it was invented. Those are things that will remain constant. But past prices should not form part or your today’s or tomorrow investment decisions. Look at the present day realities so you will make an informed decision.
Aspects of bitcoin's past shows adoption and developments and even price momentum and hype that may well relate to various underlying battles about the extent to which there is agreement about bitcoin's price.. so sure we can attempt to be informed about bitcoin's history without the history telling us future trajectories and/or adoption, even if we consider the various areas in which bitcoin has been adopted and the
7 network effects as outlined by Trace Mayer in 2015.
You are trying to contradict yourself here. You said a new investor doesn't need to have his discretionary income before investing in Bitcoin now you are saying if his discretionary income is available he can start buying Bitcoin what are you trying to point out. Let's say you don't get it correctly, your discretionary income gives you the confidence to keep accumulating Bitcoin without fear of the happenings in the market. You have no fear because the amount you are using to invest is not something that you will need any time soon and if something happens that requires urgent expenses you can use your emergency funds to take care of it and not temper with your Bitcoin.
Having emergency funds is necessary as an investor it helps you not to depend on your investment money when you have any emergency that's why every investor should have it and not try to do any form of investment with it.
It is not mandatory that a newbies should have emergency funds before the can invest in Bitcoin, rather what they need is their discreationary income to start, then the can acumulate along with building their emergency funds, or are you advising that someone who has not started investing should first build an emergency funds before they can start investing, I'm not disputing the fact that emergency funds has a pivotal role it plays in protecting our Bitcoin investment specifically during an unexpected financial circumstances, for starters, discreationary income has to come first then emergency funds can follow cause they should start the investment before putting out measures to safeguard it.
I think that it makes more sense to think about and talk about building bitcoin and emergency funds at the same time, so that there is power within both, and yeah this is a bitcoin thread so there is a lot of importance in building the bitcoin holdings, but if there is not a cash cushion that is ongoingly getting built up at a similar rate that the bitcoin is growing, then there are risks (and perhaps unnecessary risks) that at any given time the investors income could go down and/or expenses go up, and if there is no cash cushion, the investor would be forced to tap into his bitcoin at a time that was not of his own choosing.. and yeah, it takes a long time to build up a bitcoin investment, such as 4-10 years or more and if guys are not realistically protecting their bitcoin investment by building and maintaining back up funds, then they are just rolling dice since many of us know that a lot of different things can happen (and perhaps are likely to happen) over a period of 4-10 years or more, and even if our backup funds are not going to save us from all levels of emergencies, it is likely going to save us from the almost guaranteed fluctuations that end up happening in income going down and/or expenses going up, and it surely would be preferable to NOT be forced into a situation in which bitcoin has to be spent, when there are options (like back up funds) that can be used to cover the various inevitable fluctuations that come from time to time, especially over a long period of time such as 4-10 years or more.
I think, you should have read the replies on this thread before saying this because I believe that it has been repeatedly said here that you don't need to waste more time building an emergency funds before getting started when you can build both your bitcoin investment and your emergency funds at the same time in order to kick start your bitcoin investment immediately, you discretionary income is available. Instead, of piling up fiat for an emergency that may happen or not.
You may not have understood my point. What I said is "not just for investing in Bitcoin, even if someone does not invest, they should have an emergency fund".
And did I also say that there is no reason for a new Bitcoin investor to think about an emergency fund at the beginning because many investors already have an emergency fund. So when someone expresses their desire to invest in Bitcoin, they can use their discretionary income to start investing at any time. And if they do not have an emergency fund before investing, they can create an emergency fund along with the investment.
And that was the main point. Maybe I did not explain it or you did not understand.
I have been running DCA in Bitcoin for about a year and a half. But before starting investing, I had an emergency fund, I had created it long ago because even before investing, a person can face an emergency situation and then this emergency may need to be used.
So when I started investing in Bitcoin, I did not have to think much about an emergency fund.I have been running DCA in Bitcoin for about a year and a half. But before starting investing, I had an emergency fund, I had created it long ago because even before investing, a person can face an emergency situation and then this emergency may need to be used. So when I started investing in Bitcoin, I did not have to think much about an emergency fund.
Usually, there is no relationship between emergency fund and investment fund. The relationship between emergency fund and investment fund is related to the emergency moments of personal life or to your own life. Whether you invest or not, emergency situations can come in life. Therefore, even if it is not related to investment, every person should have an emergency fund, this is a sign of good financial management.
But when you participate in investment or get involved in investment, then automatically investment fund and emergency fund establish a relationship. Emergency fund becomes mandatory to maintain investment fund. Before investment, emergency fund is only an option for you, but after investment starts, it becomes mandatory. And after investment starts, one fund without another fund has no great value. Without emergency fund, investment fund is helpless, it can break down at any time. Similarly, emergency fund without investment fund is not very important. Therefore, an investor should understand the evaluation of both funds and evaluate both funds equally.
In the context of this thread, we are talking about keeping enough back up funds to protect our bitcoin so that we do not have to tap into our bitcoin to cover any basic expenses and/or because we ran out of other money.
So, whatever our emergency fund practice prior to bitcoin, we are needing to adjust that practice to bitcoin, since for many of us bitcoin investing has become important and perhaps somewhat central in our lives, including if we might not have any other investments.
Sure, there could be guys who are coming to bitcoin with other investments too, so then they have to consider how much priority their bitcoin investment has as compared with other places that they already have value or that they could put value, and perhaps if guys start to consider bitcoin as a high priority investment, then the other investments may well serve as back up funds for their bitcoin investment, even though there are tendencies to need to keep back up funds in the cash of whatever their local expenses are mostly kept.. since there is importance in back up funds in relation to liquidity accessibility and lack of volatility relative to their local expenses, so even if a guy might have a variety of other investments, when he comes to bitcoin, he is still likely going to have some cash and to build up back up funds in cash, so that he is not forced into situations where he might have to tap into his bitcoin at a time that is not completely of his own choosing.
Sometimes when a guy is brand new to bitcoin, if he had already had an emergency fund, he might have to consider the extent to which his emergency fund might be too large for his situation and put some of that money into bitcoin in order to build the bitcoin and the emergency funds at the same time.
Of course, this is a bitcoin thread so we need to give priority to bitcoin investing, yet at the same time we do need to be cognizant of our own cashflow situation too in order to know what reasonable balances might be in terms of really building up our bitcoin holdings, and not getting into a trap of putting more emphasis on cash than it deserves.
Sure, don't get me wrong, cash is important, but we likely need to be careful not to be overly emphasizing cash when there should be some value and importance in growing our bitcoin stash - perhaps even in an aggressive way, even though we may well need to build up our aggressiveness as our comfort level improves and we also don't want to go overboard in our aggressiveness and make mistakes of overdoing it. Each of these are judgement calls, and each of us is in charge of figuring out our own balances so that we do not overdo it and also so that we don't underdo it.
I think every person should have an emergency fund before planning an investment because it is not the case that he needs an emergency fund at the time of investment. An emergency situation can arise at any time from birth to death and an emergency fund is needed at any time to use this time, so I think that when a person starts investing in Bitcoin using his discretionary income, he will already have an emergency fund.
Trying to put down your emergency funds before starting your bitcoin investment will only delay you, or make you not to start your accumulation right away because to put down a strong emergency funds that can sustain you and your investment for a period of three months or more, it's going to take a whole lot of time, like one year and above, so it's is not a good suggestion that you must put it down before starting your investment.
What all bitcoin investor are advice to do is that once they start their Bitcoin accumulation, they should also put their emergency funds in place simultaneously, so that if emergency situation comes up that time, the investment will survive, since emergency funds is also in place then.
When guys are in the early stages of building their bitcoin investment and simultaneously their back up funds, their back up funds are not going to save them from all emergencies, especially in the first year or two, and surely the bitcoin will be serving as a backdrop for real BIG "shit-hits-the-fan" types of scenarios, yet we are building up our bitcoin and our back up funds at the same time so that we can grow our wealth and continue to build and continue to put ourselves in a stronger and stronger place financially and psychologically, and so yeah, it can take years and years to really build that kind of financial/psychological comfort, and we likely are going to be ongoingly building systems so that we don't have to tap into our bitcoin at anytime, and if both our bitcoin and our cash back ups are growing at the same time, we likely gain more and more confidence that we are prepared for bigger and BIGger kinds of cashflow issues without having to even think about tapping into our bitcoin... .
and yeah, some guys know that they have solid income and other guys know that they have very unreliable income, so the guys with unreliable income are going to have to keep more value in cash as compared with the guys who have more solid income.
