Buy Buy Buy or Sell Sell Sell?

[Cossyblack]

In my opinion, everyone has different opinions on this matter. Some people prepare an emergency fund before accumulating BTC or investing in BTC. Some buy BTC first and then invest in an emergency fund later. Some even accumulate btc and their emergency fund at the same time. So, I think any method is good, but the decision is ultimately up to each individual

You are not correct because only out of the three options is correct which is building your portfolio alongside with your emergency fund. The other two opinions are not true, it is wrong to invest your emergency fund in bitcoin that's gambling. Emergency fund should best left in fiat currency so that they can easily be accessible incased of emergencies but if you make that mistake by invest it in bitcoin and later you needed money when there is an emergency you will be forced to sell your bitcoin investment which is wrong.

[Showlove01]

Personally, I consider that it is not a good idea to sell any of your BTC until you reach over accumulation status... so then you can start to sustainably withdraw from it, yet surely there is no guarantee that bitcoin is going to continue to go up, so you have to figure out how much you are putting into bitcoin.

Basically, the most effective way to invest in Bitcoin is to continue buying and holding it for a long time. And you should invest according to the DCA method with your own extra money. This results in continuity of investment for a long time. It is very important to invest according to your ability when investing. Since Bitcoin is a long-term investment, it should be held for a period of time before selling it. And all of it should not be sold. And it should be invested through proper planning using discretionary income.

It's not compulsory that you must invest using the DCA strategy there are people who their source of income wouldn't let them DCA so they might prefer to hit the buy option whenever they have capital to invest. The most important thing is that you invest with which ever strategy you feel you're comfortable with and hold for long term without selling until your target has been achieved. But the reason we discuss about the DCA strategy more often is because it can be practiced by both the rich and the poor and it helps to give that sense of "I'm not doing too much" which in turn helps people to scale through those emotions that traders face that causes them to sell their bitcoin early and miss the big move.

It may not be compulsory to invest with the DCA method but believe me it is very necessary because you need not worry about the price of the market but outside this method any other method you wish to use, you will have to consider the state or condition of the market and sometimes it can discourage you to invest especially if you are still a pleb so regardless we should always try to use the DCA method because it is market friendly.

[JayJuanGee]

[edited out]

You can not stack Bitcoin for lifetime because you will need to diversify into other important assets that is why we should have a target and plan on what level to attain in Bitcoin which we call overaccumulation stage though getting to this stage doesn't mean one will stop adding some.fractions of Bitcoin into their portfolio but rather the rate at which you will be adding will be different from before when you are yet to get to that level. And at this level you can decide to put more energy into another assets that you think it's worth doing that for.

Diversification is optional, even though surely it seems logical to go beyond merely having bitcoin and dollars (or whatever might be your fiat).

If you end up investing in bitcoin for life, then as your bitcoin stash grows (and even your dollar stash grows simultaneously), then you will likely transition towards a phase where you might not need to continue to accumulate more bitcoin, which might be a maintenance stage, and then later you might transition towards some kind of a sustainable withdrawal stage that might be price based sustainable withdrawal and/or time based sustainable withdrawal.

[edited out]
Regarding emergency funds, we should continue to accumulate them every month or every time we receive our salary. This way, the emergency fund will reach the total amount of 12 months of our salary or one year. Because emergency funds are not only for when we are sick or something like that, but also to be prepared and survive when we are not earning for several months. Like during the pandemic. So, at least for 1 year, we are always prepared.

Emergency funds are generally expected to be in cash.. so generally it  is problematic to go beyond 6 months of your expenses, so usually something like 3 months of expenses in cash.

Of course, if various back up funds are built up along with the building of wealth, some of the funds will be more liquid and some will be more volatile... So if suddenly a lot of money is needed, then it would be good to be readily available and not changing in value from cash.  Frequently money that can be accessed in weeks or months is sufficiently liquid, and also if a person has various assets some assets will be more liquid than others.

It seems pretty problematic if guys think that they should be holding 12 months in cash.. and for sure, if a guy had been investing in bitcoin for more than 10 years, and his average cost per BTC is around $1k, then why the fuck would he give very many shits if the BTC price is $126k or $64k when it comes time to having it as back up funds, if he had already exhausted 3-6 months of cash due to an emergency.. why does he need to hold an additional 6 months of cash?  That makes little sense when we are talking about building up wealth, we would not necessarily be holding a lot in cash unless we have a lot of other assets that we don't want to touch.

Maybe the guy who had been investing in bitcoin for more than 10 had put more than a year's income into bitcoin, so then his bitcoin stash was valued at 126x his income when it is $126k and it is only worth 64x his income when its $64k... Sure, he can choose to keep a year's cash, and it is not really a BIG deal, yet it seems a bit crazy for guys to be planning to hold a year's cash if he might still be in the process of building his wealth.. since the cash is ongoingly losing value and the guy will never be able to invest if he is ongoingly trying to keep 12 months of cash and he does not have a sufficient quantity of other appreciating assets.

[Gallar]

Personally, I consider that it is not a good idea to sell any of your BTC until you reach over accumulation status... so then you can start to sustainably withdraw from it, yet surely there is no guarantee that bitcoin is going to continue to go up, so you have to figure out how much you are putting into bitcoin.

Basically, the most effective way to invest in Bitcoin is to continue buying and holding it for a long time. And you should invest according to the DCA method with your own extra money. This results in continuity of investment for a long time. It is very important to invest according to your ability when investing. Since Bitcoin is a long-term investment, it should be held for a period of time before selling it. And all of it should not be sold. And it should be invested through proper planning using discretionary income.

Yes, I agree with you, JJG, on this point. If we haven't reached the excessive accumulation stage, selling our Bitcoin is clearly the wrong move. It's like walking towards a city and then turning back. Therefore, it's best to be more patient before we reach our Bitcoin accumulation target. It would be a shame to abandon the foundation we've built over the past few years, as time can't be turned back. Essentially, if we could buy Bitcoin at $16,000 before, that's no longer possible. Therefore, selling Bitcoin before we've reached our accumulation limit is clearly a bad idea. So, for everyone, including me, we need to be patient, because investing in Bitcoin is no easy feat. The point is we have to fight to the max.

[Grease5000]

In my opinion, everyone has different opinions on this matter. Some people prepare an emergency fund before accumulating BTC or investing in BTC. Some buy BTC first and then invest in an emergency fund later. Some even accumulate btc and their emergency fund at the same time. So, I think any method is good, but the decision is ultimately up to each individual

You are not correct because only out of the three options is correct which is building your portfolio alongside with your emergency fund. The other two opinions are not true, it is wrong to invest your emergency fund in bitcoin that's gambling. Emergency fund should best left in fiat currency so that they can easily be accessible incased of emergencies but if you make that mistake by invest it in bitcoin and later you needed money when there is an emergency you will be forced to sell your bitcoin investment which is wrong.

I don't think this is a good and safe approach for someone who want to accumulate bitcoin and hold for a long term. Considering hold volatile Bitcoin price can  and how an urgent situation that requires money  can happen at anytime it is dangerous and not a welcome strategy  because considering how volatile Bitcoin price with a single dip one might be at risk of losing everything.

[Shiny_L@dy]

Personally, I consider that it is not a good idea to sell any of your BTC until you reach over accumulation status... so then you can start to sustainably withdraw from it, yet surely there is no guarantee that bitcoin is going to continue to go up, so you have to figure out how much you are putting into bitcoin.

Basically, the most effective way to invest in Bitcoin is to continue buying and holding it for a long time. And you should invest according to the DCA method with your own extra money. This results in continuity of investment for a long time. It is very important to invest according to your ability when investing. Since Bitcoin is a long-term investment, it should be held for a period of time before selling it. And all of it should not be sold. And it should be invested through proper planning using discretionary income.

Yes, I agree with you, JJG, on this point. If we haven't reached the excessive accumulation stage, selling our Bitcoin is clearly the wrong move. It's like walking towards a city and then turning back. Therefore, it's best to be more patient before we reach our Bitcoin accumulation target. It would be a shame to abandon the foundation we've built over the past few years, as time can't be turned back. Essentially, if we could buy Bitcoin at $16,000 before, that's no longer possible. Therefore, selling Bitcoin before we've reached our accumulation limit is clearly a bad idea. So, for everyone, including me, we need to be patient, because investing in Bitcoin is no easy feat. The point is we have to fight to the max.

The idea of ​​taking profits in long-term Bitcoin holdings comes primarily from the trading mindset and does not always fit with the long-term mindset of the investor. If one is planning to accumulate Bitcoin continuously for 4-10 years or more, then worrying about small or moderate dollar gains is not initially relevant.

The key here is to build up holdings consistently and maintain a habit of continuous savings. Concerns about profits can only become relevant when one reaches the stage of excess savings. That is, they are already strong in their personal financial security and cash flow management, and have achieved the ability to sell or sustainably withdraw Bitcoin at that point. Profit at this stage only creates a context for decision-making, but it is not the main motivation.

The main motivation is excess savings, i.e. how comfortably they are able to use the money that is not invested. Not everyone is motivated by profit, especially those who are long-term holders. The profit stage at which we start depends largely on our excess savings situation and sustainable withdrawal structure. The process of using sustainable withdrawals is essentially limited to these frameworks: price-based, time-based, or a combination thereof.

Our initial goal should be to achieve a state of excess savings and build a sustainable withdrawal framework on that basis. Profit levels should not be the primary motivation here, but our real focus should be on how comfortably we can build excess savings and holdings and how sustainable withdrawals can be effectively used once that state is reached.

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[Sarah_Jannat42]

If you know how much you earn a week or a month there won't be any need to calculate your Income again because it is already known rather what someone should do is to check the essential or pressing needs and then also check how much will be leftover after these needs have been taken care of and that is the best way to start your planning, a wise person won't Wait till they are been paid before they start running up and down trying to find what they should handle as other unnecessary things can come up to distract someone so planning and budgeting things early is very good.

I am sorry that I cannot completely agree with you about not calculating income because those who have a fixed income but their expenses are not fixed. Because in terms of expenses, there are some regular expenses as well as some irregular expenses or unexpected expenses. When irregular and unexpected expenses come, stress is created and the result of that stress is often the wrong decision. And I agree with you about making a budget, because a budget plan should be prepared before starting work, as well as saving emergency money that will be able to deal with unexpected expenses and investing in Bitcoin will be much easier.

Well, basically, every month there are always expenses that are sometimes outside of what we planned. Or maybe it's usually included in unexpected costs. But this should have been taken into account. So I actually agree with both of you. Because basically what you said is all true.

However, what I need to clarify here is that in the process of creating a monthly budget or managing money each month, it is usually already included in setting aside money each month for emergency funds or unexpected expenses. So, I also have several budgets, such as for basic needs (primary needs), secondary needs (including some additional shopping budgets), a certain percentage for savings, a certain percentage for emergency funds, and if there is any leftover, then I put it into cold funds that I am ready to invest in bitcoin for the long term. Usually, it is no less than 3 to 5%.

Regarding emergency funds, we should continue to accumulate them every month or every time we receive our salary. This way, the emergency fund will reach the total amount of 12 months of our salary or one year. Because emergency funds are not only for when we are sick or something like that, but also to be prepared and survive when we are not earning for several months. Like during the pandemic. So, at least for 1 year, we are always prepared.

We know that planning is almost half of the work done, so if a budget analysis can be done once and an investment plan can be made in that proportion, then a person will not have to constantly plan the budget with that amount of effort. Because in that budget, my basic needs, secondary needs and emergency fund will be included and the amount of investment will be fixed, whatever the percentage is, whatever the method. Our emergency fund must be from 6 to 12 months so that the emergency fund does not disappear quickly. And the most important thing is that we must stay within the investment and that must be according to the plan and in a reasonable way.