JJG’s Outline of Bitcoin Investment Ideas

[IceLincoln]

If you have extra funds available at the beginning, you can use it as an emergency fund. In that case, you can accumulate lot of Bitcoin from the beginning.

Your comment is kinda just bouncing everywhere I don’t understand the direction you’re going with it.  The extra funds you’re talking about at the beginning is it outside the discretionary income? I think extra funds should be used to accumulate bitcoin more aggressively. If you have to wait for an extra fund outside your discretionary to be able to build backups then you don’t have discretionary income. From your discretionary you should be able to sort out money for investing and still have some for backup and spending.

And if you do not have a reserve fund at the beginning, you can build up two at the same time but in this case the amount of weekly Bitcoin accumulation may be slightly reduced.

What two reserve funds are you talking about? The reserve is a part of the backup fund which includes the emergency funds. Beginners are encouraged to start small to gain experience and confidence in bitcoin as well as build their backups alongside.

If you accumulate Bitcoin regularly through discretionary income, divide this fund into 3 parts and keep one part for Bitcoin one part for emergency fund and the other part as cash with you to meet family and personal extra needs. The more cash funds you have with you while accumulating Bitcoin the more likely it is that your Bitcoin holdings will be safe.

It’s not if you buy bitcoin regularly that you’ll divide your discretionary into 3 parts. You divide it into the three parts of invest, backup and discretionary consumption, even before you start investing and you can change the percentage you allocate according to your discretion.

[Jewan420]

Most people misunderstand what investment is really about, they don't know that it's not only about accumulating Bitcoin, having financial stability matters a lot too. Ignoring everything else just to invest is not sustainable, it will definitely affect your investment sooner or later and what will be the essence of all the hard work if you can't protect what you've accumulated when emergency arise. I don't think it will be possible for investors with long term plan to get away with not having back up funds aside, the journey is just too long to not have any emergency. The goal of investing is to build wealth while not putting yourself in unnecessary pressure where unexpected situations force you to sell your Bitcoin.

Financial stability depends on financial management skills. There are very few people whose financial situation is automatically stable, an unstable situation has to be made stable through good financial management skills. This stability is definitely important to sustain long-term investments.

If we ignore something (financially related) to invest, then the question arises about our discretionary fund. The main condition of discretionary fund is the remaining amount after meeting all the necessary expenses. So if someone ignores something necessary for investment, it will directly affect the discretionary fund and it can indirectly affect the long-term journey of investment.

[Lembo69]

Before starting to buy bitcoin and invest, a common sense should be able to tell you that you need to sort out your pressing needs which are the basic needs of man. You don’t just go into an investment when you have major financial obligations to settle and anyone who does that is simply gambling with his investment because he will be forced to sell the investment at a loss just to recoup some funds to sort out some pressing needs when the pressure keeps piling up.

Yes, before investing, an investor must first meet his basic needs and consider his financial situation. He cannot invest with money that he will need in the future because if an investor invests in Bitcoin with such money, he is
According to Silikiem's ​​comment, he is really gambling with his investment. Because the price of Bitcoin can decrease at any time, an investor may be forced to sell his investment. Therefore, it would not be right to invest with money that has been allocated for any necessary work in advance. The first task of an investor is to meet his basic needs, meet loans and other financial obligations. And prioritize building an emergency fund.

The priority should be set towards sorting out basic needs whenever income is received before using the left over cash to invest in bitcoin.

An investor must keep in mind that the profit in Bitcoin investment is never guaranteed. Not even if he follows the best approach. Therefore, investing in Bitcoin to meet any financial obligations can be a more risky thing for that investor. If an investor has a financial obligation and if it is a high interest one then he should first repay his loans and then invest in Bitcoin. It is not that an investor cannot invest if he has a loan, if he is able to repay his installments and can invest at the same time then he can invest while having a loan. It depends on his financial capacity. And if an investor invests from his remaining money which he is ready to lose and is able to take the risk then his investment will be effective in the long term. And he will also be able to increase the return on his investment. Maybe if his luck is with him at some point he can also profit but there is no certainty of that
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[Perfect-World]

That cash at hand is your emergency fund and some people underestimate it's value to the point where they have enough discretionary income to accumulate bitcoin and build up their emergency fund together but because they want to buy as much bitcoin as possible they ignore everything else and pour all of their discretionary income into accumulating bitcoin and if they get lucky they might get away with not having an emergency fundif no actual emergency happens throughout their accumulation phase

You are just been delusional and unrealistic with your thoughts. How possibly will that happen? Going through your accumulation phase without an emergency? I doubt that it can ever happen. Life is full of emergencies, and they are unpredictable. An investor must always anticipate it, and thus get ready for it.

You can't invest in Bitcoin using all your discretionary to buy and neglecting your back up funds. That is the highest risk one can take, because your investment is equal to gambling which you will certainly lose because you will be forced to tap from it to handle your emergencies when they eventually show up.

Secondly, what about your Discretionary consumption?, would they also do away with it, or it's not important too?
Both back up funds and discretionary consumption is important and an investor can't do without it.

[Grease5000]

Most people misunderstand what investment is really about, they don't know that it's not only about accumulating Bitcoin, having financial stability matters a lot too. Ignoring everything else just to invest is not sustainable, it will definitely affect your investment sooner or later and what will be the essence of all the hard work if you can't protect what you've accumulated when emergency arise. I don't think it will be possible for investors with long term plan to get away with not having back up funds aside, the journey is just too long to not have any emergency. The goal of investing is to build wealth while not putting yourself in unnecessary pressure where unexpected situations force you to sell your Bitcoin.

I understand your worries, but I think it not that complicated if you have the information, because investor with discretionary income  can start with a small portion of his or her discretionary income while  also gradually building your emergency fund at the same time, which prevents him from selling off his bitcoin portfolio during an emergency situation.

The important thing is to balance both so that emergencies don't force you to sell your bitcoin.

[Moreno233]

Financial stability depends on financial management skills. There are very few people whose financial situation is automatically stable, an unstable situation has to be made stable through good financial management skills. This stability is definitely important to sustain long-term investments.

I don't think you understand what financial stability depends good financial management, they are two different things. While good financial management can help a person became financially stable sometimes,  it does not work for someone whose income is not even enough to cover their basic needs. Such person will.be more focus on solving his basic needs and therefore unable to make investment.

If we ignore something (financially related) to invest, then the question arises about our discretionary fund. The main condition of discretionary fund is the remaining amount after meeting all the necessary expenses. So if someone ignores something necessary for investment, it will directly affect the discretionary fund and it can indirectly affect the long-term journey of investment.

There are too many contradictions in your comment and I would want you to read it again. Discretionary income is not affected by ignoring the basic needs,  and this your comment makes it look like you have not fully grasp the entire concept else you would have known the difference between funds for basic needs amd discretionary income amd also understand that we only have discretionary income when basic needs settled.
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[AYOBA]

An investor must keep in mind that the profit in Bitcoin investment is never guaranteed. Not even if he follows the best approach. Therefore, investing in Bitcoin to meet any financial obligations can be a more risky thing for that investor. If an investor has a financial obligation and if it is a high interest one then he should first repay his loans and then invest in Bitcoin. It is not that an investor cannot invest if he has a loan, if he is able to repay his installments and can invest at the same time then he can invest while having a loan. It depends on his financial capacity. And if an investor invests from his remaining money which he is ready to lose and is able to take the risk then his investment will be effective in the long term. And he will also be able to increase the return on his investment. Maybe if his luck is with him at some point he can also profit but there is no certainty of that
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That’s the fact about Bitcoin investments everyone hope for Bitcoin to do better in future market, but is not that the profit is guaranteed, which i think most of the investors are aware of that is only few that think bitcoin investments has full assurance that the Bitcoin is guaranteed of profits which is not. Is just that people have believe that the Bitcoin cannot disappoint since it has remain the best currency all over the world, that a large number of people are still purchasing it because is a reliable coin. Anyone who are able to hold the Bitcoin to the right time will be the most successful investor, that is what we hope in future market.

[ejikeme24]

That cash at hand is your emergency fund and some people underestimate it's value to the point where they have enough discretionary income to accumulate bitcoin and build up their emergency fund together but because they want to buy as much bitcoin as possible they ignore everything else and pour all of their discretionary income into accumulating bitcoin and if they get lucky they might get away with not having an emergency fundif no actual emergency happens throughout their accumulation phase

You are just been delusional and unrealistic with your thoughts. How possibly will that happen? Going through your accumulation phase without an emergency? I doubt that it can ever happen. Life is full of emergencies, and they are unpredictable. An investor must always anticipate it, and thus get ready for it.

Of course it is possible, not that they don't experience emergency rather, the emergency may not press them to the point that they will start looking into selling their investment to sort it out. And I believe an investor that does not have emergency funds is likely to have reserve funds so when there's emergency they tend to tap from their reserve funds and leave their investment untouched. Although I could imagine how risky that could be, especially when they have grow their bitcoin portfolio to a bigger level,  they are just confident that they will make it. But I would advice everyone to follow the safety rules because what works for them may not work for everyone.

[laijsica]

Most people misunderstand what investment is really about, they don't know that it's not only about accumulating Bitcoin, having financial stability matters a lot too. Ignoring everything else just to invest is not sustainable, it will definitely affect your investment sooner or later and what will be the essence of all the hard work if you can't protect what you've accumulated when emergency arise. I don't think it will be possible for investors with long term plan to get away with not having back up funds aside, the journey is just too long to not have any emergency. The goal of investing is to build wealth while not putting yourself in unnecessary pressure where unexpected situations force you to sell your Bitcoin.

I understand your worries, but I think it not that complicated if you have the information, because investor with discretionary income  can start with a small portion of his or her discretionary income while  also gradually building your emergency fund at the same time, which prevents him from selling off his bitcoin portfolio during an emergency situation.

The important thing is to balance both so that emergencies don't force you to sell your bitcoin.

Having discretionary income is an important aspect of long term Bitcoin investment management along with having an emergency fund. While there are not many unexpected situations regarding fund balance among experienced investors there is confusion among new investors about the use of discretionary income because they have not yet mastered fund management skills. I think there are new investors who take Bitcoin accumulation very lightly and do not take stress, they are more successful in investing. But those who spend extra time before investing and spend extra time organizing cannot maintain their strong position.
Yes, the important thing in Bitcoin investment is to keep Bitcoin accumulation in balance with income and use discretionary income appropriately.

[Saltysugar99]

Most people misunderstand what investment is really about, they don't know that it's not only about accumulating Bitcoin, having financial stability matters a lot too. Ignoring everything else just to invest is not sustainable, it will definitely affect your investment sooner or later and what will be the essence of all the hard work if you can't protect what you've accumulated when emergency arise. I don't think it will be possible for investors with long term plan to get away with not having back up funds aside, the journey is just too long to not have any emergency. The goal of investing is to build wealth while not putting yourself in unnecessary pressure where unexpected situations force you to sell your Bitcoin.

I understand your worries, but I think it not that complicated if you have the information, because investor with discretionary income  can start with a small portion of his or her discretionary income while  also gradually building your emergency fund at the same time, which prevents him from selling off his bitcoin portfolio during an emergency situation.

The important thing is to balance both so that emergencies don't force you to sell your bitcoin.

To invest in bitcoin it is more important to start investing. And to start investing in bitcoin it is mandatory for a person to have discretionary income. Then the steps that should be taken to manage the investment in bitcoin for a long time should be given importance. Especially reformation can be done on the issues of creating a backup fund, increasing the income and creating the ability to do DCA with a larger amount. Now if a person starts thinking about how much his salary will be before getting a job, what he will do with that salary it is like funny. So first one should start investing in bitcoin. After starting he should keep a fund separate from discretionary income to create a backup fund along with DCA in bitcoin. And in reality most investors do not invest with zero backup. Because even if he does not have a directly specified backup fund he may normally have savings or may have some assets. Because if a person who is generating discretionary income and has decided to invest in bitcoin from there then if he is a responsible person before starting bitcoin, then he must have some fiat savings or other assets. Because if a person has no savings, no place to live, no fund for his family then I doubt how responsible that person is.

So there is no such decision that one has to create a backup fund by long time  giving before investing in bitcoin and then start investing. When I started investing I did not create any backup separately. I had my fiat savings I assumed it as a permanent backup. I have not sold a single sats till now. Although my investment period will be more than a year. And I came to know that from this forum and got the idea from this thread. After joining the forum, I used to ask many investment related questions in this thread, from where I got a clear idea. Your main point is if someone actually starts investing and keeps buying bitcoin regularly for a few months, then that person will understand a lot from real experience. Then investment related issues will not seem difficult. Lifestyle will come into a system. You will not be able to spend unnecessarily even if you want. Considering your risk you cannot invest in bitcoin from  backup fund. Because at this time, you must think about to make a decision. Because due to your wrong decision your investment may be hindered or you may suffer losses.

[UpTober]

Yes.  if the unexpected expenses are for basic needs and they cannot be deferred, then we use our discretionary funds, and maybe our reserve funds, and then if we have no other funds we use our emergency funds, and if we run out of all of those funds, then all that we have remaining is our bitcoin, so we should be trying to avoid and/or minimize the amount of bitcoin that we are selling at times that are not of our own choosing.

Sometimes, we may well end up draining all other funds and have no choice but to use our bitcoin, and sometimes we could have had avoided having to use our bitcoin if we had kept sufficient quantities of back up funds.

I think that when an investor plans to deposit Bitcoin, along with the plan to deposit Bitcoin, they should give importance to how they will deposit an adequate amount of backup fund. If we are prepared in all respects, for example, if we have a backup fund, then we can spend from this backup fund as needed, and if we have an emergency fund, we can use that emergency fund at that time when an unexpected need arises. Now, if we do not have these preparations, then we will have only one option in front of us, which is to sell our investment, but there is also a way to sell, for example, the need has come at a time when the Bitcoin market is very low and if it is necessary to sell at that time, then it is a loss in all respects.

Considering all this, forming a backup fund and an emergency fund is a very important decision for the investor.
A person is an investor at the same time and when he has sufficient backup fund, it will be easier for him to take decisions.

I think that along with investment, we should create a financial system that gives investors freedom and provides financial support to maintain their investments for a long time.