JJG’s Outline of Bitcoin Investment Ideas

[SmartCharpa]

You are absolutely correct, being wise in trading won't make someone not to make loss of course they will and loss is highly inevitable in trading regardless of the amount of knowledge and psychology someone has. Trading is not simple because it requires a lot of self skills and that of market skill that is why it is good to venture into investment since those skills are not required in investment. Yet you still need to put things in order before you can succeed in investment. However, the fact you don't hear about trading doesn't mean people are not trading.

That is why trading is very risky, so investing in Bitcoin is a very safe way to trade. If you invest in Bitcoin in the long term, then this is the best, no matter how experienced a person is, it is natural that there will be risks in trading. The current situation is even more difficult, because the market situation is always chaotic. So in this difficult situation, you have to take risks and there is a possibility of losing your capital, so you should avoid trading gradually and prioritize Bitcoin investment.

I do understand. That investing in Bitcoin long term is not as stressful as trying to profit from each of the market movements. But it is not safe at all. A person who purchases a ton of bitcoins at a high price could still see a substantial drop and take years to get back in the black. The only difference is that this long term investor allows the time to pass. So long and until he doesn't need that money in a rush. Having a clear investment horizon and avoiding over exposure is more important than just picking out investing over trading in my view.

The DCA method is recommended so that you do not have to buy a large amount of Bitcoin at a high price at once. Because in the DCA method you can accumulate Bitcoin continuously taking advantage of different market conditions and price levels. The purpose of DCA is not to find the lowest price in the market, but to accumulate Bitcoin regularly at different price levels and avoid the risk of investing the entire amount at a certain time.

Another thing is that just letting time pass is not the main strategy of long term investment. A long term investor needs to invest an amount of money that will not affect his normal life even if he is stuck in the investment for a long time.

You’re right with the fact that the DCA method is one of the best way to buy bitcoin. It’s the best way for investors to buy gradually regardless of the market conditions. Nobody can predict the next move, so you don’t need to wait for the low price before you buy. The best thing about the DCA method is to remain consistent and take the advantage of every market opportunity.

Of course, Bitcoin is not something we should put all our money and be struggling to meet our needs. You need to ensure that other needs are handled properly before you invest what you can afford to leave for the long term in bitcoin.

We invest in bitcoin for a better future, we should never invest more than we can afford to lose and put ourselves under unnecessary stress.

[Obulis]

I agree with you, for those who invest in Bitcoin for the long term, it is more important to monitor the daily market price and pay attention to their financial situation. And if you invest regularly in the DCA method, the impact of price fluctuations can be somewhat managed. However, the investment amount should be such that it is not a problem to invest a small amount from your necessary expenses and the discretionary income that is left after putting it in an emergency fund.

But why will a bitcoin investor that is only thinking about how to hold his investment very strong be monitoring the market, when their are high chances that it may tempt him to sell because of fear? I don't advice any Bitcoin investor to be monitoring the market because it's not worth. Your duty as a Bitcoin investor is to just be buying consistently and hold, because doing things that traders does, like monitoring the market will only result into selling off your holdings, so stop doing that for the sake of your mental health, if you don't want to sell off your investment too early.

Monitoring the market is actually unnecessary for an investor in all ramifications. That temptation associated with it, the temptation of selling Bitcoin asset is likely possible because of the fear of market pressure that can easily set in.
Monitoring the market is being busy for nothing.

[DubemIfedigbo001]

the Daddy has already own a bitcoin after the 6 months, he has learned on the market strategies while the Mummy owns nothing by still waiting.

Accumulating $40 for 6 months would have $1040 invested into bitcoin which is not up to the amount for 1 bitcoin, so the daddy would've only owned some sats or better still some quantity of bitcoin and not a bitcoin.

To further explain the equal importance that both funds has, let us consider a situation similar to that of @MusaPk's illustration whereby an individual is left with about $100 as his or her discretionary income... If the investor in question prioritizes investment more he could be allocating about 80-90% of discretionary income into investment which dosen't sound smart, since such allocations would leave the investor with fewer money which may not be sufficient enough to build ones emergency funds as well as funds for discretionary consumption...

Yes, such action is crazy and a bad cashflow management practice, the investor puts himself in a very difficult situation and this can be described as being over aggressive since his level of aggressiveness is putting his portfolio in danger of being tampered in the face of an emergency. There should always be a good balance between investing, building backup funds and taking care of discretionary needs

[Finebone]

Infact we can go into investing in bitcoin without having emergency funds. You should know that we can’t forsake or delay our investment for any reason so long we have discretionary income with available.

This is wrong, and if any Bitcoin investors decides to act this way without putting down emergency funds in place that will protect his or her investment during times of emergency, selling or tempering with his Bitcoin holdings will be the only way out of that emergency crisis, so having it in place as a form of security to protect your investment is the only way your Bitcoin investment can survive for a very long time, because you are surely going to encounter an emergency situation sooner or later in your investment journey.

[Rockson1]

What do you mean you can have emergency funds and not invest, the main reason we have discretionary income is because we have investment, without investment there would never be an emergency fund. Infact we can go into investing in bitcoin without having emergency funds. You should know that we can’t forsake or delay our investment for any reason so long we have discretionary income with available.

One can have an emergency fund and end up not investing that's true, I agree with you that discreationary income is what is actually needed at first to invest in Bitcoin but we should not forget to build our Bitcoin portfolio simultaneously with our emergency funds to avoid making our effort a wasteful one, there is something I will like to correct here, ordinarily with or without investment, one ought to have an emergency fund, wether we call it reserve or emergency funds it is actually needed, but as it has to do with Bitcoin investment, it is not a must for emergency funds to come first but should not be neglected considering how important it is in terms of protecting our Bitcoin investment in times of emergency which can happen anytime

So Please instead of posting without having knowledge about what you are saying, I would suggest you do more of reading so you can know what the thread is is actually talking about.

Learning is a continuous thing, we should not be harsh when teaching people, we all started from somewhere and we are still learning, learning is a non stop journey.

[Fangtooth]

After searching, I found this topic on Bitcoin holding related in the Trading Discussion section. I spent some time reading many posts. Where most of them are advising to buy Bitcoin and hold it for a long time. I recently installed the exchanger and set it up. So yesterday I decided to buy some Bitcoin for the equivalent of $240. So today when I entered the exchange, I noticed that the price of Bitcoin has dropped further. If it continues to drop like this, it is not known when it will increase. In that case, I am a little uncertain whether it is better to buy Bitcoin now or wait a little longer and buy when the price starts increasing, then I can make more profit?

Also I have some questions, how do those who have been holding Bitcoin for a long time actually keep their mentality stable when the price drops? Where I am a little afraid before buying Bitcoin .

And if I buy Bitcoin and hold the price is likely to increase. If I buy Bitcoin now, how long will it take for my fund to become 30% profitable?

[Sim_card]

So today when I entered the exchange, I noticed that the price of Bitcoin has dropped further. If it continues to drop like this, it is not known when it will increase. In that case, I am a little uncertain whether it is better to buy Bitcoin now or wait a little longer and buy when the price starts increasing, then I can make more profit?

No don't stop buying or wait to buy cheaper because the price might not dip below this level and can continue pumping again. There's no best time to buy bitcoin whenever, your discretionary income is available is the best time to buy wether the price is up or low. A brand new investor shouldn't wait for the dip but continue buying with DCA in order to grow and build your bitcoin investment overtime.

Secondly, don't think of profit in the beginning of your bitcoin investment so that, you don't distract yourself and sell when you see a little pump. Instead, have a long term investment mindset and focus on continuously accumulation of bitcoin overtime and have a bitcoin target to accumulate. Your profit isn't running to anywhere but in your portfolio so worry less about it.

Also I have some questions, how do those who have been holding Bitcoin for a long time actually keep their mentality stable when the price drops? Where I am a little afraid before buying Bitcoin .

And if I buy Bitcoin and hold the price is likely to increase. If I buy Bitcoin now, how long will it take for my fund to become 30% profitable?

This is why as a brand new investor, you see bitcoin as a future investment and not to be thinking about quick profits because that will make you not be able to holdi for long.  Have a long term mindset and focus on building your bitcoin stash for your future. What's 30% profit, that's a trader mindset and nobody knows when bitcoin will give you 30% profit.

The bigger picture is to buy as many bitcoin as possible and hodli for the future for a better profit because it's the size of your bitcoin stash that will determine your profit in future.

[Umulala-alala]

After searching, I found this topic on Bitcoin holding related in the Trading Discussion section. I spent some time reading many posts. Where most of them are advising to buy Bitcoin and hold it for a long time. I recently installed the exchanger and set it up. So yesterday I decided to buy some Bitcoin for the equivalent of $240. So today when I entered the exchange, I noticed that the price of Bitcoin has dropped further. If it continues to drop like this, it is not known when it will increase. In that case, I am a little uncertain whether it is better to buy Bitcoin now or wait a little longer and buy when the price starts increasing, then I can make more profit?

Also I have some questions, how do those who have been holding Bitcoin for a long time actually keep their mentality stable when the price drops? Where I am a little afraid before buying Bitcoin .

And if I buy Bitcoin and hold the price is likely to increase. If I buy Bitcoin now, how long will it take for my fund to become 30% profitable?

An investor who is holding for long will not have to panic when there is a decline in price of bitcoin, it's still more better to buy now since you will be buying a way cheaper than waiting when the price start to increase, when the price drop it's should be an opportunity to buy more bitcoin and not to wait since you are still at your accumulation stage, buy bitcoin using the dca strategy and make sure you use money you can afford to lose which is your discretionary income. It's when you are a trader that you will be buy BTC then wait for the price to increase in order for you to sell, but a long time investor will buy bitcoin with their discretionary income, hold for long, and not sell until they get to their target.

[Gravitypull$]

So today when I entered the exchange, I noticed that the price of Bitcoin has dropped further. If it continues to drop like this, it is not known when it will increase. In that case, I am a little uncertain whether it is better to buy Bitcoin now or wait a little longer and buy when the price starts increasing, then I can make more profit?

Also I have some questions, how do those who have been holding Bitcoin for a long time actually keep their mentality stable when the price drops? Where I am a little afraid before buying Bitcoin .

And if I buy Bitcoin and hold the price is likely to increase. If I buy Bitcoin now, how long will it take for my fund to become 30% profitable?

Don't be a trader who is so much concerned about profit because traders are always in losses in the long run. If you're investing into bitcoin forget about short term profit because bitcoin is not a trading tools but a long term asset that increases in value overtime.

It's best for you to buy now if you already have your discretionary income because waiting is never a good strategy since, you will miss out a lot of opportunities in the market. Use DCA strategy to buy and accumulate bitcoin weekly for 4-10 years and above with consistent and persistent overtime. When you can think of profit is when you have reached your over accumulation stage and not in the beginning of your bitcoin investment to avoid distraction or transiting from a long term investor to a trader.

For long term investor to keep their mind stable during a dip is for them to focus on accumulating bitcoin overtime till they reach their bitcoin target. When there's a dip is a time to buy bitcoin in discount and not to panic and sell.

[B-BossMan]

I am not clear about the point(s) that you are trying to make.  Savings is a general term, perhaps similar to back up funds.

And, we have two kinds of savings and/or back up funds.  1) is emergency funds and 2) is reserve funds.

Reserve funds have more flexibility, and emergency funds is an amount of back up funds that you do not want to deplete or tap into absent shortage of income and/or increases in expenses that you cannot defer until the next time that you get paid.

Guys can decide to manage their cash reserves in such a way that they never have to tap into their emergency funds, since the emergency funds would be the last amount of money remaining before they would have to tap into their bitcoin.

In the beginning, if a guy has little to no back up funds, then he is likely still going to have both emergency funds and reserve funds, yet if he is trying to build up his back up funds to get them to a level of several weeks of his expenses and maybe even 3 months or more of his expenses, he is likely going to be paying attention to building his bitcoin and his back up funds at the same time, yet if he continues to have to tap into his back up funds, then that might be a sign that he is investing too much into bitcoin, yet each guy has to figure out some balance, and surely in the beginning it will be more difficult to build up both, especially if he is starting out with little to no back up funds, and so each guy has to figure out some rhythm in his own cashflow management and his oingoingly building his bitcoin holdings.

Many times guys advise for newbie bitcoiners to focus on trying to increase their discretionary funds, if possible, since having more discretionary funds will provide more options for doing everything, 1) buying bitcoin, 2) building up back up funds and/or 3) discretionarily consuming... Yet surely some guys are challenged in both how much they might be able to increase their income and/or cut their expenses, and so if guys are having troubles increasing their discretionary income, then they have to work with what they have.. and yeah, hopefully figure out ways that they are able to build both, and since we are in a bitcoin investment thread, we talk about getting ahead by increasing the bitcoin investment, yet guys still have to work within their own parameters and make sure tha thtey are keeping enough back up funds and also building them in circumstances that they are not enough.

Although some newbies actually thinking that they need much money to begins thier bitcoin investment,  the facts is, you don't really need plenty discretionary income to start with, but it all about making a good decision by even begins with just $10 as your discretionary income, being it weekly is something else. Moreover it's much more better than nothing.

I will agree with you that, the increasement on income is helpful, but not everyone would be able to do that overnight, because some newbies has already stretched thin, however, let the goals shouldn't always be on finding much more money before we can start, but let work with our mindset of maintaining the little we have for long-term growths. Come to think it like this : if I have like $100 as my discretionary income and I splits the money smartly, I invest some for bitcoin, some as my backup funds and some for any other activities. While my friend earned the sum of $5k and decide to waste all the money at once, believe you me, I have already built a very stronger habits than my friend. That's why it's always advisable for the newbies to start wherever they are after all the bill and let your own bitcoin grows gradually over time.

[B2Z]

People who are trading and get involved in trading like gambling in the hope of immediate profit may never understand long-term investment. Or they may not have the patience required to invest so they are not willing to invest. I think trading only puts your money at risk and the profit is less and the loss is more. And those who are skilled in trading take a lot of time to become skilled

There is no need to discuss those who are trading because trading and gambling work in the same way. But yes, those who are investing or those who are new and planning to invest do not actually need to wait so long to invest, rather the sooner they can start investing, the better for their investment. Those people who have planned to invest but could not invest based only on the market always regret it, so if they can continue investing quickly without waiting for the investor, then I think at some point they will thank themselves for this decision and they will say to themselves that their decision was right.

Since an investor can start investing only by ensuring his discretionary income, in this case, investors should not delay in starting investment.

I totally agree with you when you said that  those who are willing to invest does not necessarily need to wait for so long but to get started as soon as possible provided that they have discretionary income, but in as much as I'm not a fan of trading doesn't mean I would watch you equate trading with gambling. Trading is completely different from gambling because gambling is full of uncertainty while in trading there's a high chance of becoming successful if you have enough knowledge and also a good strategy. But even at that there's nothing good as investing for long term because there you don't need to calculate too much, all you just need is to figure out your discretionary income and begin investing.

But none of us know when the dip will come, but as investors, we often make this mistake that we focus on continuous investment and wait to buy this dip. Investors miss investment opportunities due to waiting to buy the dip.

If an investor initially invests $10 or $20 or $40 from his discretionary income and this investment amount seems small to them initially, this continuous investment will enrich the investor's portfolio a lot in the long run. We should think about everything in the long run, if $20 can be deposited every week, then the total investment amount at the end of the year will be more than expected. Continuous investment changes a lot in the habits of an investor. For example, due to continuous investment, investors feel the changes in the market, due to which these changes in the market later seem normal to them and they can be patient.

But yes, the real truth for investment is that along with investment, the investor should prepare emergency expenses and backup funds because such investments have no value and may have to be sold under financial pressure.

[Perfect-World]

, but in as much as I'm not a fan of trading doesn't mean I would watch you equate trading with gambling. Trading is completely different from gambling because gambling is full of uncertainty while in trading there's a high chance of becoming successful if you have enough knowledge and also a good strategy.

Are you promoting trading here in this thread? If you are so good at trading, you go to the trading section of the forum to lecture your fellow traders. This thread is specifically for Bitcoin investment and not trading or how to make money through trading.

As far as I know, trading Bitcoin is as gambling, because you could lose at anytime. There is no degree of knowledge that prevents you from losing when trading or gambling. So it's best that people learn to do safer things which is Bitcoin investment. Investing in Bitcoin helps you to store value over the years, while trading keeps you exposed to unexpected losses that you can't control.

[Gragebox]

Infact we can go into investing in bitcoin without having emergency funds. You should know that we can’t forsake or delay our investment for any reason so long we have discretionary income with available.

This is wrong, and if any Bitcoin investors decides to act this way without putting down emergency funds in place that will protect his or her investment during times of emergency, selling or tempering with his Bitcoin holdings will be the only way out of that emergency crisis, so having it in place as a form of security to protect your investment is the only way your Bitcoin investment can survive for a very long time, because you are surely going to encounter an emergency situation sooner or later in your investment journey.

Absolutely agree with you. I would say that developing an emergency fund along with Bitcoin buying is one of the key aspects of a sustainable investment process. Not having any backup funds means that sooner or later there will come a time when a person will be left with no choice other than to sell his Bitcoins.

Think about it. Imagine a person who possesses Bitcoins during a serious market downturn and who needs to pay for something urgently. He will have to sell his assets even if he does not want to simply because he has no other sources to cover his costs.

That is why I think that an emergency fund should be developed right away. This fund should be able to cover the costs of several months and should be isolated from the investment money.

Bitcoin buying is always a long-term process which demands patience. It becomes easier to show this patience if our financial problems are already solved.

[Queen uloma]

You are absolutely correct, being wise in trading won't make someone not to make loss of course they will and loss is highly inevitable in trading regardless of the amount of knowledge and psychology someone has. Trading is not simple because it requires a lot of self skills and that of market skill that is why it is good to venture into investment since those skills are not required in investment. Yet you still need to put things in order before you can succeed in investment. However, the fact you don't hear about trading doesn't mean people are not trading.

That is why trading is very risky, so investing in Bitcoin is a very safe way to trade. If you invest in Bitcoin in the long term, then this is the best, no matter how experienced a person is, it is natural that there will be risks in trading. The current situation is even more difficult, because the market situation is always chaotic. So in this difficult situation, you have to take risks and there is a possibility of losing your capital, so you should avoid trading gradually and prioritize Bitcoin investment.

I do understand. That investing in Bitcoin long term is not as stressful as trying to profit from each of the market movements. But it is not safe at all. A person who purchases a ton of bitcoins at a high price could still see a substantial drop and take years to get back in the black. The only difference is that this long term investor allows the time to pass. So long and until he doesn't need that money in a rush. Having a clear investment horizon and avoiding over exposure is more important than just picking out investing over trading in my view.

The DCA method is recommended so that you do not have to buy a large amount of Bitcoin at a high price at once. Because in the DCA method you can accumulate Bitcoin continuously taking advantage of different market conditions and price levels. The purpose of DCA is not to find the lowest price in the market, but to accumulate Bitcoin regularly at different price levels and avoid the risk of investing the entire amount at a certain time.

Another thing is that just letting time pass is not the main strategy of long term investment. A long term investor needs to invest an amount of money that will not affect his normal life even if he is stuck in the investment for a long time.

You’re right with the fact that the DCA method is one of the best way to buy bitcoin. It’s the best way for investors to buy gradually regardless of the market conditions. Nobody can predict the next move, so you don’t need to wait for the low price before you buy. The best thing about the DCA method is to remain consistent and take the advantage of every market opportunity.

Of course, Bitcoin is not something we should put all our money and be struggling to meet our needs. You need to ensure that other needs are handled properly before you invest what you can afford to leave for the long term in bitcoin.

We invest in bitcoin for a better future, we should never invest more than we can afford to lose and put ourselves under unnecessary stress.

I totally agree with you that DCA is one of the best ways to accumulate bitcoin because no one can predict what the market will do next. Rather than waiting for bitcoin price to drop before buying, it’s best to remain consistent and take advantage of different market conditions. Even if it’s a small amount you are investing, consistency is still very essential more than trying to time the market.

But we shouldn’t forget that there’s still life after bitcoin. Before you invest in bitcoin ensure your bills, emergency funds and your basic needs are being settled. It’s an unwise decision to put all your money in bitcoin and struggle to survive. Your purpose for investing in bitcoin is to build a good financial future for yourself not to put yourself under pressure.

[Jewan420]

We should think about everything in the long run, if $20 can be deposited every week, then the total investment amount at the end of the year will be more than expected. Continuous investment changes a lot in the habits of an investor. For example, due to continuous investment, investors feel the changes in the market, due to which these changes in the market later seem normal to them and they can be patient.

$20 per week means that the investment amount at the end of the year will be $1040. Is this amount more than we expected? If we can invest $20 per week for 10 years, then we may get a return that is higher than expected in some countries.

The biggest advantage of consistency is that it accustoms you to discipline. If you maintain the financial discipline to invest $20 per week for a long time, then perhaps that discipline can create bigger opportunities for you and increase your source of income. Maybe one day your $20 will grow and double. Consistency not only moves you forward but also creates new paths.

[Alonso_]

We should think about everything in the long run, if $20 can be deposited every week, then the total investment amount at the end of the year will be more than expected. Continuous investment changes a lot in the habits of an investor. For example, due to continuous investment, investors feel the changes in the market, due to which these changes in the market later seem normal to them and they can be patient.

$20 per week means that the investment amount at the end of the year will be $1040. Is this amount more than we expected? If we can invest $20 per week for 10 years, then we may get a return that is higher than expected in some countries.

The biggest advantage of consistency is that it accustoms you to discipline. If you maintain the financial discipline to invest $20 per week for a long time, then perhaps that discipline can create bigger opportunities for you and increase your source of income. Maybe one day your $20 will grow and double. Consistency not only moves you forward but also creates new paths.

I think with your analysis it would make a good sense for someone who is investing in bitcoin to stay consistent in different perspectives, but however investing for the long term is also going to enable you to figure out ways of increasing your cashflow which would give you an advantage of investing more by increasing your cashflow, perhaps it’s possible that you might not be able to stay that consistent with investing with 20$ because your expenses might just be in different varieties in each week, or monthly basis, it’s possible some weeks you buy and accumulate more than 20$ because you would try to reduce some unnecessary expenses, so this numbers might not just be consistent for you, having a good financial management is quite good in terms of staying consistent and keeping a good cashflow.

[Brizi5000]

I totally agree with you that DCA is one of the best ways to accumulate bitcoin because no one can predict what the market will do next. Rather than waiting for bitcoin price to drop before buying, it’s best to remain consistent and take advantage of different market conditions. Even if it’s a small amount you are investing, consistency is still very essential more than trying to time the market.

But we shouldn’t forget that there’s still life after bitcoin. Before you invest in bitcoin ensure your bills, emergency funds and your basic needs are being settled. It’s an unwise decision to put all your money in bitcoin and struggle to survive. Your purpose for investing in bitcoin is to build a good financial future for yourself not to put yourself under pressure.

The most basic necessities such as food, clothing, shelter and payment of other utilities must be sorted out before attempting to invest In bitcoin for long term purpose. But the emergency funds shouldn’t be considered as one of those basic needs which must be sorted out before starting to invest. It is advisable that once the basic needs are met, investors can use the left over discretionary income to start investing in bitcoin even if the emergency funds is not readily available. Along the line the investor can start saving some part of his discretionary income for building the emergency funds gradually while ongoingly accumulating bitcoin.

[Merit_x]

I agree with you, for those who invest in Bitcoin for the long term, it is more important to monitor the daily market price and pay attention to their financial situation. And if you invest regularly in the DCA method, the impact of price fluctuations can be somewhat managed. However, the investment amount should be such that it is not a problem to invest a small amount from your necessary expenses and the discretionary income that is left after putting it in an emergency fund.

But why will a bitcoin investor that is only thinking about how to hold his investment very strong be monitoring the market, when their are high chances that it may tempt him to sell because of fear? I don't advice any Bitcoin investor to be monitoring the market because it's not worth. Your duty as a Bitcoin investor is to just be buying consistently and hold, because doing things that traders does, like monitoring the market will only result into selling off your holdings, so stop doing that for the sake of your mental health, if you don't want to sell off your investment too early.

Monitoring the market is actually unnecessary for an investor in all ramifications. That temptation associated with it, the temptation of selling Bitcoin asset is likely possible because of the fear of market pressure that can easily set in.
Monitoring the market is being busy for nothing.

I will make this simple and short, people who are constantly monitoring the market are people who are only interested in short term gains, and they’re most likely to be gamblers who are looking for quick profits, but they would forget that bitcoin isn’t a get rich quick scheme, instead buying and holding bitcoin for the long term should be the utmost priority for people who are buying bitcoin, same people would neglect to buy bitcoin consistently and focus on speculation like they’re predicting score lines.

[SOKO-DEKE]

As far as I know, trading Bitcoin is as gambling, because you could lose at anytime. There is no degree of knowledge that prevents you from losing when trading or gambling. So it's best that people learn to do safer things which is Bitcoin investment. Investing in Bitcoin helps you to store value over the years, while trading keeps you exposed to unexpected losses that you can't control.

That is just the fact, but some sets of people just find it hard to believe the truth. If not, it is clear that there is not much difference between trading and gambling because most of them end up losing money in trading, just like gambling.The fact is that it is hard to predict Bitcoin, and most people who get it right sometimes do so just by luck. If I may say, it is very wrong for someone to depend only on luck because luck hardly happens often.

The reason why some sets of people always defend trading is because of what they hear people saying online, it is not necessarily based on their own experiences. Most people showing off on social media have different sources of income, and it is likely that the money they get from other sources is what they show off on social media just to attract people to buy their trading courses. But that does not mean they are actually making money from trading.

[Lembo69]

The most basic necessities such as food, clothing, shelter and payment of other utilities must be sorted out before attempting to invest In bitcoin for long term purpose. But the emergency funds shouldn’t be considered as one of those basic needs which must be sorted out before starting to invest. It is advisable that once the basic needs are met, investors can use the left over discretionary income to start investing in bitcoin even if the emergency funds is not readily available. Along the line the investor can start saving some part of his discretionary income for building the emergency funds gradually while ongoingly accumulating bitcoin.

If an investor invests for the long term and starts investing with his discretionary income after fulfilling all his basic needs. Then it would be better for him to focus on creating an emergency fund right after starting the investment. Because emergencies can come at any time, so whether the investment is small or big, it is necessary to create an emergency plan to make his investment sustainable. The first thing an investor should do is start investing, then use discretionary income for investment and for emergency fund.

If someone wants to invest for the long term, then he must focus on emergency fund and also think about how to increase his cash flow and be more active in investment. The most effective way of investing is consistency, the more consistency he maintains in his investment, the better amount of BTC he can save in his investment.