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.

[Futurexxx]

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 but going 100% in with their discretionary income won't be sustainable

Their is no way a long term holder will not encounter an emergency situation throughout his accumulation and holding journey, so this your statement here is pathetic.

And in addition to that, any Bitcoin investor that invest in Bitcoin without no backup funds in place to protect his investment is just gambling because he can't be relying on being lucky for a period of ten years or more, that emergency situation will not come, that's not only myopic, but it's also a pathetic way of doing things.

[Cossyblack]

Their is no way a long term holder will not encounter an emergency situation throughout his accumulation and holding journey, so this your statement here is pathetic.

And in addition to that, any Bitcoin investor that invest in Bitcoin without no backup funds in place to protect his investment is just gambling because he can't be relying on being lucky for a period of ten years or more, that emergency situation will not come, that's not only myopic, but it's also a pathetic way of doing things.

Real life emergency is bound to happen at any given time that is why an investor is expected to be building his emergency fund as soon he starts accumulating bitcoin. Investors should take building their emergency fund as a priority and build it alongside their bitcoin investment since real emergency can happen anytime to prevent tampering with their investment when it happens.

I don't think there is any such thing as luck in bitcoin investment, do I even need to remind people that bitcoin investment is not  a gambling platform therefore, any measures that should be put in place to safeguard their bitcoin investment over the long term is a priority, otherwise they are just gambling.

[Charcol]

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.

 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.

The idea that you should invest all your extra money in Bitcoin may not be true in all situations. Because not everyone's situation is always the same. Two people somehow come across an extra $200. The first person may already have enough cash to cover a few months of essential expenses and has no major financial obligations. In that case, he or she could invest a large portion of that extra money in Bitcoin if he or she wanted to. But if the other person has almost no emergency fund and his or her entire family depends on him or her, or if he or she is not sure of next month's income, then a large portion of that extra money may be more important for increasing cash security.

It may not be logical for both of them to buy the same amount of Bitcoin just because they have the same amount of extra money.

[Different patterns]

[edited out]

......The more cash funds you have with you while accumulating Bitcoin the more likely it is that your Bitcoin holdings will be safe.

Sure, we want to be keeping our bitcoin safe, yet we are not prioritizing cash... we are figuring out a balance to keep our bitcoin safe, and yeah, we do not want to get into a situation where we have to use our bitcoin, so we will likely tend to need to keep extra cash that we likely will not end up using.. .but just keeping as insurance to protect our bitcoin.

Exactly. Some folks focus too much on accumulating bitcoin without knowing the importance of keeping extra cash aside for emergency purposes. I don’t mean to accumulating more bitcoin is bad idea, it’s actually a very good idea. but having plan for any unexpected expense is also  important, because that’s also part of long term journey it can protect investment anytime emergency arise. Any extra cash that sitting aside, we may not look it with value, but it has purpose because even if we don’t use it today, we may use it in the future for emergency because life itself is full of unexpected situations that you may not know what will happen. that is what extra is really meant for.

[Nheer]

Exactly. Some folks focus too much on accumulating bitcoin without knowing the importance of keeping extra cash aside for emergency purposes. I don’t mean to accumulating more bitcoin is bad idea, it’s actually a very good idea. but having plan for any unexpected expense is also  important, because that’s also part of long term journey it can protect investment anytime emergency arise. Any extra cash that sitting aside, we may not look it with value, but it has purpose because even if we don’t use it today, we may use it in the future for emergency because life itself is full of unexpected situations that you may not know what will happen. that is what extra is really meant for.

People should understand that the emergency fund is not meant to compete with your accumulation, it has its role to play that's why it is important as well and provisions must be made for it if we must maintain long term investment.

Accumulating Bitcoin aggressively is encouraged if an investor can afford it but shouldn't be done under pressure. What is not encouraged is not keeping extra cash for emergency. Some people think they can easily find a way around emergencies when they show up but they will only put themselves in more financial pressure. When you don't make provisions for things that might affect your investment along the way then you're risking the life span of your investment. Accumulating Bitcoin is more important but we should always treat emergency fund with utmost importance as well because they are what protects your Bitcoin holding.

[Wakate]

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
Send feedback

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.

No investment has a full guarantee of making money and not even Bitcoin. Once investors understand that all investment is risky, they will be very wise when taking decisions whether buying and holding Bitcoin which is a digital asset or investing in physical assets.
There is no shortcut to make money when investing in Bitcoin and it's either you are short term investor or going for a long term holding.
Investors should be able to differentiate between what they want and what they need to avoid.

[cxtreenal]

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
Send feedback

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.

No investment has a full guarantee of making money and not even Bitcoin. Once investors understand that all investment is risky, they will be very wise when taking decisions whether buying and holding Bitcoin which is a digital asset or investing in physical assets.
There is no shortcut to make money when investing in Bitcoin and it's either you are short term investor or going for a long term holding.
Investors should be able to differentiate between what they want and what they need to avoid.

This wise will lead them to long term Bitcoin investments. Since new investors have relatively little experience in investing, they are likely to make mistakes at the beginning. They need to be more involved in the market and accumulate Bitcoin regularly to make wise decisions. Since there is no complete guarantee of making a profit, you should not be tempted to make a quick profit and instead focus on long term Bitcoin strategies. Since there is a high risk in areas or trading strategies that can make a quick profit many new investors initially accumulation Bitcoin for the long term and they are the ones who build a large Bitcoin portfolio in the future. Wise is not acquired quickly only those who are patiently involved in investing can reach a reasonable level by utilizing time.

[Taskford]

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 but going 100% in with their discretionary income won't be sustainable

Their is no way a long term holder will not encounter an emergency situation throughout his accumulation and holding journey, so this your statement here is pathetic.

And in addition to that, any Bitcoin investor that invest in Bitcoin without no backup funds in place to protect his investment is just gambling because he can't be relying on being lucky for a period of ten years or more, that emergency situation will not come, that's not only myopic, but it's also a pathetic way of doing things.

All of us encounter hardships in life and facing the situation will depends on how we prepare on those matters.

Some may struggle, since they downplay the situation and that's the reason why they fail.

Most of prepared individuals manage to stay for long time and established themselves well. That's why survive many challenges in life, so its good for people to learn from what they encounter, since this is helpful recipe to succeed in their lives.

[Obulis]

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?

By the way you are highly welcome! But then if your interest and intention is primarily to buy Bitcoin and hold then you should not be worried about Bitcoin price falling and when Bitcoin price will start rising because for sure as it's dipping, it will rise. So here is a good opportunity for you to accumulate as much Bitcoin as you can.

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 .

Some investors have been able to undermine Bitcoin price movement because they to an excellent percentage has nothing to do with Bitcoin price change most especially those who buy Bitcoin using DCA strategy.

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 question is just as if you have an ulterior motives for buying Bitcoin and that is the direct opposite of holding. Do you really intend to trade or actually hold Bitcoin? This is because how long it will take your Bitcoin asset to hit 30% profit is not definite.