Buy Buy Buy or Sell Sell Sell?

[Derekfunds]

Being aggressive is actually not a problem as long as you are aware of the risks involved and you are using money that has been specifically set aside for investment in bitcoin. Even if it is for the long term, there is no need to worry about the price you are buying at today.

Yea, you are right about this, being aggressive towards your accumulation of Bitcoin is never a problem, besides it's a good practice that helps in stacking up a huge stash of Bitcoin faster, but make sure your level of aggressiveness stays within the confinement of your discretionary income, that way you can easily be in control of what ever shit that may comes your way along the line.
Where the problem lies when buying and accumulating Bitcoin aggressively is overdoing it to the extent of going beyond your discretionary income or get carried away to the extent of going beyond it. Once an investor is cautious enough to not get carried away and stays within the confinement of his discretionary income, the sky will be the beginning point of his successful accumulation of a reasonable stash of Bitcoin if he is very consistent in his accumulation while being aggressive.

This is the mistake some do make when in the bid to stack up a huge bitcoin stash, the aggressive accumulation is misinterpreted to be about buying beyond their discretionary income and this can overstretch them in the process because it is done wrongly. 
Accumulating bitcoin aggressively has to do with actively accumulating your bitcoin stash consistently but within your discretionary income and not going overboard on it. Having a aggressive mind in the process of your bitcoin accumulation and maximizing it in the right manner is paramount.

Been aggressive sometimes is a function of what you have kept for it or what you are expecting to get in a short time which won't affect you immediately. What I'm saying that is that someone can be aggressive if they save up a lot of money in their discretionary to be use to accumulate a large fraction of Bitcoin but if there savings doesn't look enough or encouraging to them I think they can use other funds to front load that is if they are expecting something soon so they can replace back immediately but doing this when someone is not expecting anything is gambling because they will sell or panic.

[Crytohillss]

[edited out]

I would say it varies from person to person. Like if you are doing a job that fully covers your health insurance than one might be comfortable with 2 to 3 weeks of back up funds. For people who don't have a job or any other thing that covers there health insurance those guys might reserve some more amount for emergency needs. Every individual can decide himself that how much cash is enough for him to counter emergency situations. But it's important to have emergency funds in place if one is thinking of investing in Bitcoin.

Of course the quantity of various back up funds will be coupled with thoughts about the various resources that a person has, how liquid and/or accessible are those resources, and what are the various kinds of emergencies that coudl happen, some more likely some less likely and perhaps even having some extra cushion to cover extremes of what is even less expected.. but having some ideas about what would be done under various scenarios, even the extreme ones.

Beginner investors will likely not have as many resources, and perhaps they ONLY have an ability to survive a few weeks or a month or two, yet the longer that he builds his wealth then he will likely build up cash to cover his bitcoin and perhaps his bitcoin would still be his emergency funds once the various other cash and other assets are depleted... so there would be an order of depletion and guys will prioritize their various assets in different ways, and they might even make mistakes in regards to how they draw their priorities, especially if they might not understand the asset (something like bitcoin)..

I had made the point that if a person has something like 4 to 5 years of the value of his expenses in his bitcoin, then he likely would be in a better position than someone who merely has 3-4 weeks of the value of his expenses in bitcoin.. and surely bitcoin is quite volatile, and if guys come into an emergency and they have 4-5 years of the value of their expenses in bitcoin, but then they have around 6 months of their expenses in the combination of a variety of other assets, they may well deplete the other assets first, and maybe after a few months they are able to get out of their emergency situation, and yeah, if they are in the emergency situation for longer than 6 months then they might have no other choice but to start to tap into the bitcoin, and maybe the bitcoin had gone up or down in value during that time..  

If the bitcoin corrects around 50%, then their bitcoin had ended up shrinking down to 2 to 2.5 years of their expenses.  Part of the reason that I frequently try to value my BTC at the 200-WMA is so that I am mostly valuing it at bottom prices (or close to bottom prices) rather than being unrealistic about it, yet surely if we are considering whether to shave off some bitcoin, we are going to be selling at spot prices, so yeah, we would likely prefer spot prices are higher, yet we cannot always choose the point in which we "need" the money.

We can invest in Bitcoin with consistency and for long term only if we have money to fulfil daily requirements and emergency funds to counter the emergencies. That's why it's recommended to invest in Bitcoin with discretionary income.  

Of course. Discretionary income is used to invest, consume and/or save.. so each week or month (depending on frequencies of getting paid) income will come in and calculations might be made regarding how much is needed to cover various basic expenses before determining how much is left that would be considered to be discretionary funds. Also the discretionary funds from the past had likely been used to consume, invest and/or save, and the consumption ones would be totally gone or almost totally gone depending on what they were spent on..
It they were spent to buy a blender, then the blender may still have value, but not the same amount of value that it was bought for when it was new.  so from the investment and savings, with bitcoin we are trying to protect that investment.. or at least protecting our bitcoin seems that it should be a priority for someone who is serious about bitcoin, even though there will be variation.

If you have left over money or discretionary income then saving it won't be a good idea because fiat currency loses it's value over period of time. The best option is to invest your Discretionary income and why we talk about investing in Bitcoin is because it's value increases with time. We can look in past and easily figure out the profit Bitcoin has given to people who waited for at least 4 years and profit increases as your tenure of investment increases.  

If you have a longer term mindset, then it seems to be less necessary to be fucking around trying to consider the extent to which you are in profits or not... so each time you add more to your investment, maybe you will consider that added portion to have a 4-10 year or longer timeline before it is needed, so if you are continuing to add to your bitcoin, then you are likely projecting your timeline out further, and personally, I don't see any reason to be planning to cash out in less than 10 years unless you have some age or health concern that causes you to have to come to bitcoin with a shorter than 10 year timeline.  Of course if there is some emergency (not something of your own making), then yeah, you might get faced in a situation where you are selling some or all of your bitcoin at a time that is much shorter than your at least 10 year timeline.

So, I have trouble understanding how your considering the extent to which you are in profits or not to be very much of a factor in regards to when you might buy your bitcoin.  Of course, we likely presume that bitcoin's price is going to continue to tend to have an upwards trajectory and also that bitcoin might be amongst the best, if not the best place to put value, so we continue to invest into it based on ideas that 10 years or more in the future it is likely to be in a better position than currently, and so the short-term price fluctuations in bitcoin prices would not be having much if any influence on our actions, even though we might look at bitcoin short-to-medium term as curiosities and points of interest, even though we are not materially changing any of our actions based on our looking at BTC price fluctuations.

Emergency funds should be kept separate from everything else, even savings. Now sometimes people think that savings can be used as an emergency fund, yes it can be used, but it will be more optimal if it is placed separately. Emergency funds, from the name alone, we should already know when the funds will be used.

I agree with you, even when we don't invest, we should still have an emergency fund. Keep in mind that we will not always be in a good situation, I say this not that I expect bad things to come, but it would be much better if we prepare everything.

Of course, emergency funds should not be combined with savings, because in terms of their purpose, the two are very different.

Emergency funds are savings... and so are reserve funds.  Reserve funds have optional use and emergency funds are likely the last of the remaining funds before having to tap into bitcoin.. .. so they may be conceptual categories, even though surely you might keep them in different places or different forms... even though we need to have some concerns about liquidity and volatility for our two categories of savings (which are reserve funds and emergency funds)..

As we know, emergency funds are money set aside for urgent situations such as illness and so on. So, to make things easier and to avoid confusion, emergency funds should be kept separate from other funds. In addition, my advice is that a small portion of the emergency fund should be kept at home for easy access, and the rest can be stored in a bank account.

Sure, there may be reasons to keep them separate based on personal circumstances.

However, the problem is that if we keep money in a bank account for a long period of time, the emergency fund will inevitably be eroded by inflation. Therefore, the best solution, in my opinion, is to store the emergency fund in an asset that is not eroded by inflation. But here I am also confused about what asset is suitable for storing emergency money.

Of course, people are concerned about volatility of their asset, which includes debasement. and so a risk of keeping too much cash is that it likely debases... bitcoin does not resolve your problem in regards to its short term volatility... which is part of the reason that bitcoin would not be considered to be part of emergency funds until maybe once a person gets to higher wealth levels then he will have more options, including that if his bitcoin starts to get to be to a level that is several times the annual expenses, then some folks might be ok. with having their bitcoin serve as part of their emergency funds, even though it might not be good for the bitcoin investment, especially if a person might be trying to get to fuck you status with his bitcoin holdings... so it might b problematic to tap into the bitcoin, even for possible emergency situations... which brings us back to the idea of keeping value in other assets and/or cash even though the cash is debasing regularly.

Bitcoin could be an option, but the problem is that its price fluctuations are unpredictable. Therefore, I believe mutual funds would be very suitable for storing our emergency funds. What do you think about this? Is it relevant or not? Because currently, I have already transferred part of my emergency funds into mutual funds.

Mutual funds can be anything.. some are more volatile than others and some are more liquid than others, and if you have an emergency, then maybe some funds you draw right away, and other funds take you several weeks to get and other funds might take you more than a month.. and so you have to assess both the volatility and the liquidity in terms of what other funds that you might also have available... maybe you ONLY feel comfortable keeping 6 weeks of expenses in cash, but then what if you have some situation in which you need that 6 weeks of cash within a few days.. then how long is it going to take you to get to your other resources, and might you end up tapping into your bitcoin at a time that might not be convenient because you have no other assets (or cash/cash equivalents) that are liquid enough.  You can do whatever you want, but if you end up screwing it up at a time of an emergency, then you might be regretting the way that you had chosen to set it up...and you end up losing more based on your poor set up rather than the severity of the emergency might not even be very extreme, but you end up having to take recourses that have large impacts even though the emergency was not very large in itself.
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I think it depends on the individual if one have a stable job and your health insurance it fully covered having 2 to 3 weeks or more of backup funds might feel enough, but for anyone without a job or insurance coverage it makes sense to keep a lager emergency reserve. people has different responsibilities and risk management, so therefore each one has to decide what amount feels right for them. having an emergency fund is really nice before one can put money into bitcoin investment.

[Grace333]

I totally agree with you emergency funds is very vital to have and it is both compulsory and necessary and people who don't forget to keep this emergency funds are planned and disciplined folks. There are people who think ahead in life and there also people that doesn't and those who think ahead of life are the ones that set out things and make it ready in case there is emergency in the future because surely there will always be trials even when we don't want to see any.

Regardless of whether we invest or not, emergency funds must still exist because this can indeed be a situation where we can need something urgently without us expecting it so that emergency funds must indeed have a budget in financial management.
But sometimes some of us misinterpret emergency funds where some people are sometimes still confused and consider emergency funds as a fund that is used to buy bitcoin but the main purpose of emergency funds is not for this.

Whereas the funds for investing should be funds that can indeed be specialized directly for investing or maybe funds that do come from income that we are ready to spend, then surely this will be different between emergency funds and funds that we can invest but sometimes some people are still wrong in the initial assumption that we can spend emergency funds on bitcoin.

Emergency funds should be kept separate from everything else, even savings. Now sometimes people think that savings can be used as an emergency fund, yes it can be used, but it will be more optimal if it is placed separately. Emergency funds, from the name alone, we should already know when the funds will be used.

I agree with you, even when we don't invest, we should still have an emergency fund. Keep in mind that we will not always be in a good situation, I say this not that I expect bad things to come, but it would be much better if we prepare everything.

An emergency fund is not money you hope to grow, it is money you hope you will never have to touch.. That is why keeping it separate is the best.  it removes that move of the money tempting you. Savings can have plans attached to it, but emergency funds have just one job, which is to protect you when life throws something that we don't expect.

Not planning for emergencies does not mean you have a good mindset, it means you are exposed. Preparing ahead does not attract bad situations, it just gives you peace of mind and control when things do not go as planned.

[Nightwatchmare]

It is really a good point , however I believe being aggressive isn't a bad thing.one just needs to apply wisdom in other not to over do it. when one is being passive, it can make one to miss out in market opportunities.so one really needs to exercise self control in other not to overdo  it ,before it turns into gambling. So it will be good if one can be agrrevise with a good strategy. Also one should be able to identify his or her limits in other not to over stretched themselves, don't make decisions that is moved or based on emotions and also we should know our risk tolerance.we should be able to strike a balance because this is what distinguish an investor from a trader

Being aggressive is actually not a problem as long as you are aware of the risks involved and you are using money that has been specifically set aside for investment in bitcoin. Even if it is for the long term, there is no need to worry about the price you are buying at today.

The way to stay safe even with an aggressive approach is to master risk management and manage your money well with sound money management. This means that the money used has been specifically set aside for bitcoin accumulation, for example. So whether we do it with DCA, or by averaging down every time there is a decline, or even with aggressive buying, it won't be a problem. Because it's money for the long term, and whatever the price is today, I'm sure it will look cheap in 10 years' time. For me, long-term investment itself exceeds 10 years. Because for me, when talking about long-term investment, it means preparation for my old age or when I retire from my current job. Or for the future of my children someday.

Being aggressive is only not allowed for those who do not have special funds prepared and are not ready for the risks taken or even do not know the risks they will face.

As long as you can maintain in buying Bitcoin with only discretionary income, there is never a problem if you decide to be aggressive with your Bitcoin investment all through out your accumulation process. Being aggressive in Bitcoin investment is all about accumulating Bitcoin consistently with discretionary income. Being aggressive in Bitcoin investment does not need any special funds to execute. What you just need to be aggressive in Bitcoin investment is just discretionary income, and even if the discretionary income is as low as $5 and you are consistent in accumulating Bitcoin, you are aggressively accumulating Bitcoin at the moment.

[AprilioMP]

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However, for those who already own Bitcoin and have not held it for long, they still need to train themselves not to panic easily and also not be easily tempted by small profits so that they can have a stronger Bitcoin holding power for the long term after they have good management when buying Bitcoin.

Taking Bitcoin one step further, people who already own Bitcoin also need to train themselves not to become weak-willed. They only engage with the market when they have the money and the desire to buy. Otherwise, they should forget about the market and avoid wasting even a moment's time looking at charts. Frequently looking at price charts is often where thoughts that can lead to panic arise.

Hoping for small profits is fine, but you must have basic trading knowledge. Buy at this price and sell at that price. Profits can be transferred back into Bitcoin. But it requires a lot of time spent in front of a monitor.

[BlackBoss_]

Taking Bitcoin one step further, people who already own Bitcoin also need to train themselves not to become weak-willed. They only engage with the market when they have the money and the desire to buy. Otherwise, they should forget about the market and avoid wasting even a moment's time looking at charts. Frequently looking at price charts is often where thoughts that can lead to panic arise.

Hoping for small profits is fine, but you must have basic trading knowledge. Buy at this price and sell at that price. Profits can be transferred back into Bitcoin. But it requires a lot of time spent in front of a monitor.

This training needs many things: resources about Bitcoin, its market history, the psychology cycle of market and also different things about capital and risk management, danger of leverage usage and consequent liquidations in the market. After learning, practice for experience is important for everyone but it takes time too, and again, experience can not be achieved from books.

In order to have strong belief in Bitcoin future, people must have knowledge, experience and strong mentality (or in your word it is "not to become weak-willed") that are all necessary for success in this market where losers are more than winners. Fortunately the Bitcoin market is zero sum and if you're well-prepared, you can become the minority in this market, as one of winners, one of profitable investors.

[JayJuanGee]

Taking Bitcoin one step further, people who already own Bitcoin also need to train themselves not to become weak-willed. They only engage with the market when they have the money and the desire to buy. Otherwise, they should forget about the market and avoid wasting even a moment's time looking at charts. Frequently looking at price charts is often where thoughts that can lead to panic arise.

Hoping for small profits is fine, but you must have basic trading knowledge. Buy at this price and sell at that price. Profits can be transferred back into Bitcoin. But it requires a lot of time spent in front of a monitor.

This training needs many things: resources about Bitcoin, its market history, the psychology cycle of market and also different things about capital and risk management, danger of leverage usage and consequent liquidations in the market. After learning, practice for experience is important for everyone but it takes time too, and again, experience can not be achieved from books.

In order to have strong belief in Bitcoin future, people must have knowledge, experience and strong mentality (or in your word it is "not to become weak-willed") that are all necessary for success in this market where losers are more than winners. Fortunately the Bitcoin market is zero sum and if you're well-prepared, you can become the minority in this market, as one of winners, one of profitable investors.

I doubt that any of these things that you list above are needed before anyone is able to get started investing into bitcoin.

Getting started investing is one of the most important things, and getting started is not necessarily a FOMO thing or a rush, but instead a thing that puts some framework around the learning and figure out what is being learned about and why.

All that is needed to get started investing into bitcoin is discretionary income and common sense, and a person can work out the details and learn more about bitcoin and/or reasons for bitcoin and/or their own proclivities and motivations in relation to bitcoin as they go.

Many folks will come to bitcoin and they already have their personal circumstances that may or may not deal with income and expenses.. so they would be working from where-ever they are at in relation to their own circumstances including figuring out what they need to learn first related to their discretionary income and how much they are going to start with and where they are going to source it. .and the basics. .which can take a while to set something up that might merely be $100 per week or $10 per week... . .and surely it may well be important to figure out why bitcoin matters, yet that does not need to be figured out in detail before getting started. .and there are likely guys involved in bitcoin for many years and they might still be trying to figure out various aspects of bitcoin and their relation to bitcoin and why they are investing in bitcoin...

Surely many of us consider investing as a 4-10 year or longer timeline, yet a very beginner might get started with $10 or $100 and they are still not sure about how long that they are going to commit to bitcoin or whether they are going to trade or invest, and surely many of us consider investing to be superior to investing, even though newbies might not really know or even want to commit to 4-10 years or longer... but they can still get started and figure out their various details as they go.

[Loyang]

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However, for those who already own Bitcoin and have not held it for long, they still need to train themselves not to panic easily and also not be easily tempted by small profits so that they can have a stronger Bitcoin holding power for the long term after they have good management when buying Bitcoin.

Taking Bitcoin one step further, people who already own Bitcoin also need to train themselves not to become weak-willed. They only engage with the market when they have the money and the desire to buy. Otherwise, they should forget about the market and avoid wasting even a moment's time looking at charts. Frequently looking at price charts is often where thoughts that can lead to panic arise.

Hoping for small profits is fine, but you must have basic trading knowledge. Buy at this price and sell at that price. Profits can be transferred back into Bitcoin. But it requires a lot of time spent in front of a monitor.

Those who are real investors will never be too worried about this volatility of Bitcoin. However, a new investor may be scared to see such a situation in the market. However, what we need to do to keep ourselves in order during this decline is what I have shared with you from my own experience. As soon as the decline began, I started watching good news about Bitcoin and I tried to build my faith in Bitcoin and learn a lot about investing.

I felt a lot better because of doing this. For example, I could build faith in Bitcoin and learn a lot about investing. When I was in the middle of all this positive news, I did not remember the market decline very much and now I do not get very scared when I see the market decline. Now I do not have any fear when I see the market decline

[Tmoonz]

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[edited out]
However, for those who already own Bitcoin and have not held it for long, they still need to train themselves not to panic easily and also not be easily tempted by small profits so that they can have a stronger Bitcoin holding power for the long term after they have good management when buying Bitcoin.

Taking Bitcoin one step further, people who already own Bitcoin also need to train themselves not to become weak-willed. They only engage with the market when they have the money and the desire to buy. Otherwise, they should forget about the market and avoid wasting even a moment's time looking at charts. Frequently looking at price charts is often where thoughts that can lead to panic arise.

Hoping for small profits is fine, but you must have basic trading knowledge. Buy at this price and sell at that price. Profits can be transferred back into Bitcoin. But it requires a lot of time spent in front of a monitor.

Those who are real investors will never be too worried about this volatility of Bitcoin. However, a new investor may be scared to see such a situation in the market. However, what we need to do to keep ourselves in order during this decline is what I have shared with you from my own experience. As soon as the decline began, I started watching good news about Bitcoin and I tried to build my faith in Bitcoin and learn a lot about investing.

I felt a lot better because of doing this. For example, I could build faith in Bitcoin and learn a lot about investing. When I was in the middle of all this positive news, I did not remember the market decline very much and now I do not get very scared when I see the market decline. Now I do not have any fear when I see the market decline

There is a clause in this your statement and it doesn't portray the image of those who are real investors as you said regarding volatility, a real investors as the name implies don't show any signs of weakness or shows being worried of any kind of level when talking about volatility, because they knew and understand that volatility is a natural phenomenon of Bitcoin and accepting this fact without any form of of reservation is what makes anyone a real investor, one thing you also need to know is that volatility of Bitcoin is of two different directions so it is either an uptrend or downward trend and both are beneficial to a real investor for an asset class like Bitcoin.

[IjawMan]

Surely many of us consider investing as a 4-10 year or longer timeline, yet a very beginner might get started with $10 or $100 and they are still not sure about how long that they are going to commit to bitcoin or whether they are going to trade or invest, and surely many of us consider investing to be superior to investing, even though newbies might not really know or even want to commit to 4-10 years or longer... but they can still get started and figure out their various details as they go.

Correctly said about the timeline for a seasoned investor in bitcoin and the confusion that newbies are confronted with.

For newbies have no experience and will of course have no true knowledge of where the huge profit lies, which is in investing for a long years but newbie have no understanding to this strategy dew to their newbie ignorance of getting rich quick they might go for trading at first, but with time  the necessity of committing to such long timeline of investing long for about 4-10 year over trading as they begin to learn about bitcoin in every details they begin to assimilate.

[Gallar]

Bitcoin could be an option, but the problem is that its price fluctuations are unpredictable. Therefore, I believe mutual funds would be very suitable for storing our emergency funds. What do you think about this? Is it relevant or not? Because currently, I have already transferred part of my emergency funds into mutual funds.

Mutual funds can be anything.. some are more volatile than others and some are more liquid than others, and if you have an emergency, then maybe some funds you draw right away, and other funds take you several weeks to get and other funds might take you more than a month.. and so you have to assess both the volatility and the liquidity in terms of what other funds that you might also have available... maybe you ONLY feel comfortable keeping 6 weeks of expenses in cash, but then what if you have some situation in which you need that 6 weeks of cash within a few days.. then how long is it going to take you to get to your other resources, and might you end up tapping into your bitcoin at a time that might not be convenient because you have no other assets (or cash/cash equivalents) that are liquid enough.  You can do whatever you want, but if you end up screwing it up at a time of an emergency, then you might be regretting the way that you had chosen to set it up...and you end up losing more based on your poor set up rather than the severity of the emergency might not even be very extreme, but you end up having to take recourses that have large impacts even though the emergency was not very large in itself.

If I think about it, you're right, my friend. After I think back, mutual funds typically have a minimum search time of 1 to 3 days, so when an emergency occurs, it's certainly a bit difficult to rely on. So, it seems like keeping my emergency funds in a mutual fund isn't the right choice. So, do you have any other suggestions regarding this? Currently, I only have two options keeping all my emergency funds in a bank account or buying them in gold. I think gold sells quite quickly. Where I live, when I want to sell gold, I only need to bring the paperwork and the gold, and the transaction can be completed immediately. So, do you think this option is relevant? Gold is also a pretty good store of value. So, my emergency funds, stored there, certainly won't be eroded too much by inflation. So, I think gold might be a good choice right now. What do you think?

[Showlove01]

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[edited out]
However, for those who already own Bitcoin and have not held it for long, they still need to train themselves not to panic easily and also not be easily tempted by small profits so that they can have a stronger Bitcoin holding power for the long term after they have good management when buying Bitcoin.

Taking Bitcoin one step further, people who already own Bitcoin also need to train themselves not to become weak-willed. They only engage with the market when they have the money and the desire to buy. Otherwise, they should forget about the market and avoid wasting even a moment's time looking at charts. Frequently looking at price charts is often where thoughts that can lead to panic arise.

Hoping for small profits is fine, but you must have basic trading knowledge. Buy at this price and sell at that price. Profits can be transferred back into Bitcoin. But it requires a lot of time spent in front of a monitor.

Those who are real investors will never be too worried about this volatility of Bitcoin. However, a new investor may be scared to see such a situation in the market. However, what we need to do to keep ourselves in order during this decline is what I have shared with you from my own experience. As soon as the decline began, I started watching good news about Bitcoin and I tried to build my faith in Bitcoin and learn a lot about investing.

I felt a lot better because of doing this. For example, I could build faith in Bitcoin and learn a lot about investing. When I was in the middle of all this positive news, I did not remember the market decline very much and now I do not get very scared when I see the market decline. Now I do not have any fear when I see the market decline

There is a clause in this your statement and it doesn't portray the image of those who are real investors as you said regarding volatility, a real investors as the name implies don't show any signs of weakness or shows being worried of any kind of level when talking about volatility, because they knew and understand that volatility is a natural phenomenon of Bitcoin and accepting this fact without any form of of reservation is what makes anyone a real investor, one thing you also need to know is that volatility of Bitcoin is of two different directions so it is either an uptrend or downward trend and both are beneficial to a real investor for an asset class like Bitcoin.

You are absolutely correct a real investor should not have to be confuse or bothered about market fluctuations but I want to ask because there was a post I come across that someone said that newbie or beginners can get worried or bothered about market dip because they don't have enough knowledge and understanding, so does it mean that those newbie or beginners are not real investors? And if they are not what stage would they be classified as a real investor and what are the criterias?. I would love to know.

[ruykeri]

Those who are real investors will never be too worried about this volatility of Bitcoin. However, a new investor may be scared to see such a situation in the market. However, what we need to do to keep ourselves in order during this decline is what I have shared with you from my own experience. As soon as the decline began, I started watching good news about Bitcoin and I tried to build my faith in Bitcoin and learn a lot about investing.

I felt a lot better because of doing this. For example, I could build faith in Bitcoin and learn a lot about investing. When I was in the middle of all this positive news, I did not remember the market decline very much and now I do not get very scared when I see the market decline. Now I do not have any fear when I see the market decline

How to keep yourself calm in the midst of Bitcoin volatility is a matter of personal opinion. As you said, even if you see good news, you don't pay attention to it even if the price of Bitcoin drops. This kind of way doesn't work for long. If you don't have a long-term mentality, don't have a strong cash flow, don't have a back-up fund, then this news will not be of any use. To keep your mental state in from Bitcoin's volatility, you should follow some things that are  truly works and suitable for everyone.

how should you think when the price drops?

A decrease in price means that Bitcoin will finish its never come back you should first get out of such negative things and thoughts. Bitcoin has had many big falls in the past. When an investor starts investing, he should think and keep in mind that the price of Bitcoin can drop by 15%, 20%, or even 40%. During these times, he will not panic sell and will remain strong on what he initially planned to invest for 4 or 10 years. In this way, he will have to keep himself mentally strong and accept that the price may fall a lot or even be halved.

What to do if the price increases.

When the price of Bitcoin starts increasing, most people experience FOMO. They think that if they cannot buy now, the opportunity will be gone. In fact, they will have to handle this issue strongly in this case too. One should never change their plans according to  the price of Bitcoin. The Bitcoin buying decision will come from cashflow. In that case, even if the price increases, they will continue to invest as they were before with discretionary income. One should not buy too much Bitcoin suddenly for fear of losing the opportunity. Invest in Bitcoin aggressively based on income, expenses, and preparation.

The most important thing is to stay invested when the price is falling and not deviate from your plan when the price is rising. Fear and overconfidence are not good when it comes to volatility. It is not right to sell out of fear and invest excessively aggressively due to overconfidence. There is no loss when the price falls, but when you panic sell or force sell, you will lose. Remember that you are the owner of that asset until you sell Bitcoin.

[Kaliandra]

I totally agree with you emergency funds is very vital to have and it is both compulsory and necessary and people who don't forget to keep this emergency funds are planned and disciplined folks. There are people who think ahead in life and there also people that doesn't and those who think ahead of life are the ones that set out things and make it ready in case there is emergency in the future because surely there will always be trials even when we don't want to see any.

Without emergency funds, we will certainly face difficulties in the future because, like it or not, life always presents challenges, and most of them require money to solve. So, it is true that emergency funds are very necessary because if we don't have them, we will be forced to sell our BTC, which we initially intended to hold for the long term, but in the end, we won't be able to because we don't have emergency funds. And yes, many successful people are disciplined, and one of their traits is always having an emergency fund, which ultimately helps them achieve their goals. Holding BTC for the long term, such as more than 10 years, is certainly a long time, and of course, the emergency fund must also be substantial because we don't know how much money we will need in an emergency. We may end up using the emergency fund repeatedly because, for example, there may be unexpected events that occur repeatedly. So, the point is that the emergency fund must be substantial, and we must continue to add to it when we have money that we are prepared to lose.

[7juju]

However, for those who already own Bitcoin and have not held it for long, they still need to train themselves not to panic easily and also not be easily tempted by small profits so that they can have a stronger Bitcoin holding power for the long term after they have good management when buying Bitcoin.

Taking Bitcoin one step further, people who already own Bitcoin also need to train themselves not to become weak-willed. They only engage with the market when they have the money and the desire to buy. Otherwise, they should forget about the market and avoid wasting even a moment's time looking at charts. Frequently looking at price charts is often where thoughts that can lead to panic arise.

People who are determined to hold bitcoin for a long term will never harbour the thoughts of selling their bitcoin no matter how many times they look at the charts. Unless you are someone who's never determined to hold on to your bitcoin. Besides people can look at charts for some other reasons, it could be for educational purposes, were they need to study charts in other to teach other people who are struggling to read charts, and also speak with certainty when they engage in discussion with folks. Selling is a choice that people makes even with or without looking at charts. The point I am making is that looking at charts should never be an  excuse for someone who has already made up his mind to sell bitcoin.

[Finebone]

People who are determined to hold bitcoin for a long term will never harbour the thoughts of selling their bitcoin no matter how many times they look at the charts. Unless you are someone who's never determined to hold on to your bitcoin. Besides people can look at charts for some other reasons, it could be for educational purposes, were they need to study charts in other to teach other people who are struggling to read charts, and also speak with certainty when they engage in discussion with folks. Selling is a choice that people makes even with or without looking at charts. The point I am making is that looking at charts should never be an  excuse for someone who has already made up his mind to sell bitcoin.

You have made your point, but I disagree with it  because anything done in excess always have it negative effects, am not saying that as a bitcoin investor, it's wrong to look at the chart, what am saying is that if as a bitcoin investor that wishes to holding for long, staying glued to the chart is very bad because it has the potential of making you emotional and in the process you might act wrongly, by selling prematurely due to fear of the dip, because whether you accept it or not, holding is difficult, and it's made even difficult when you are constantly checking it as if it's going to disappear or constantly looking at the price chart, that's when your emotions will get the better of you, even though you have a long term goal of holding strong.

[mamesso]

~Snip~

People who are determined to hold bitcoin for a long term will never harbour the thoughts of selling their bitcoin no matter how many times they look at the charts. Unless you are someone who's never determined to hold on to your bitcoin. Besides people can look at charts for some other reasons, it could be for educational purposes, were they need to study charts in other to teach other people who are struggling to read charts, and also speak with certainty when they engage in discussion with folks. Selling is a choice that people makes even with or without looking at charts. The point I am making is that looking at charts should never be an  excuse for someone who has already made up his mind to sell bitcoin.

This type of investor will not let price fluctuations affect their decisions. They have already made the decision to hold bitcoin and will not be distracted by any charts or news that hits the market. If you have other purposes for viewing charts, such as education or discussions with others, I think that's fine as long as it doesn't lead to selling when the asset's value is declining. However, if you decide to sell Bitcoin, that's your own choice and has nothing to do with looking at the charts.
In essence, the decision to sell or hold for the long term should be based on investment goals and strategies, not just on price fluctuations. This is where one must be able to develop discipline and patience to store bitcoins in the long term without being disturbed by whatever situation occurs in the market.

[Rockson1]

People who are determined to hold bitcoin for a long term will never harbour the thoughts of selling their bitcoin no matter how many times they look at the charts. Unless you are someone who's never determined to hold on to your bitcoin. Besides people can look at charts for some other reasons, it could be for educational purposes, were they need to study charts in other to teach other people who are struggling to read charts, and also speak with certainty when they engage in discussion with folks. Selling is a choice that people makes even with or without looking at charts. The point I am making is that looking at charts should never be an  excuse for someone who has already made up his mind to sell bitcoin.

You are correct because determination goes along with a mindset that is focused on achiveing goals, so I believe any investor that has visions of where he wants his investment to reach won't allow anything to serve as a distraction or force that will make them change their plans.
Why it look as if looking at charts isn't good is because of the emotion it carries to that is attached to it, but the truth is, there are people that are not moved by whatever charts are saying, because they already understand Bitcoin and it's movement, I understand your point, but you should understand that there things we do that can discourage us, some people might take chart as an excuse that led them into selling, although it is there fault but we should not doubt that fact.

[JayJuanGee]

Bitcoin could be an option, but the problem is that its price fluctuations are unpredictable. Therefore, I believe mutual funds would be very suitable for storing our emergency funds. What do you think about this? Is it relevant or not? Because currently, I have already transferred part of my emergency funds into mutual funds.

Mutual funds can be anything.. some are more volatile than others and some are more liquid than others, and if you have an emergency, then maybe some funds you draw right away, and other funds take you several weeks to get and other funds might take you more than a month.. and so you have to assess both the volatility and the liquidity in terms of what other funds that you might also have available... maybe you ONLY feel comfortable keeping 6 weeks of expenses in cash, but then what if you have some situation in which you need that 6 weeks of cash within a few days.. then how long is it going to take you to get to your other resources, and might you end up tapping into your bitcoin at a time that might not be convenient because you have no other assets (or cash/cash equivalents) that are liquid enough.  You can do whatever you want, but if you end up screwing it up at a time of an emergency, then you might be regretting the way that you had chosen to set it up...and you end up losing more based on your poor set up rather than the severity of the emergency might not even be very extreme, but you end up having to take recourses that have large impacts even though the emergency was not very large in itself.

If I think about it, you're right, my friend. After I think back, mutual funds typically have a minimum search time of 1 to 3 days, so when an emergency occurs, it's certainly a bit difficult to rely on. So, it seems like keeping my emergency funds in a mutual fund isn't the right choice. So, do you have any other suggestions regarding this?

Each of us has to figure out how much of a cushion that we might need between our various expenses that might come up before we have to dip into our bitcoin.. since we may well be trying to put a high priority of ongoingly making sure that the bitcoin is getting larger no matter what or that it is not shrinking (or getting tapped into).. and so it seems inevitable that we will have some amount of our funds in fairly liquid ways that are cash or cash equivalents and so they are not earning any kind of yield (or interest).. and so really if you can draw on your mutual funds in 1-3 days (business days I presume), then that really is not very long in terms of liquidity, so your cash would only have to get you by for a few days before you have the mutual funds.. and yeah, if the underlying of the mutual funds is not very volatile and might even have potential for growing more than the cash, then I don't find any problem keeping a certain amount of value in those....

Surely we cannot necessarily earn value on all of our cash.. and surely even with myself, after I started to build up large amounts in bitcoin, I also built up large amounts in cash, yet that was my way of dealing with bitcoin's volatility so the cash that I built up was more like reserve funds and mostly dedicated for buying the dip.. but it could be drawn upon during any emergencies and/or shortfalls in cash, so quite a bit of that cash that was building up could be drawn down and/or depleted before i would touch my bitcoin.. yet at the same time, my bitcoin has been in quite a bit of profits and even overaccumulation stage for years and years, too.. so if you imagine that I was already in overaccumulation when the BTC prices were $10k, and so now the BTC prices are more than 8x higher than those $10k levels.. so it does help to be a large amount in profit and already in overaccumulation status.

I personally think that if you are not already in overaccumulation status.. then you should be putting a higher priority on making sure that you are either ongoingly increasing the size of your bitcoin stash or at least not depleting it, so you have to have the build up of various resources (whether they are earning you yield or not).. in order to protect your BTC.. and yeah, I understand that if your cash is ongoingly depleting then you become more and more inclined to find substitutes, and maybe the solution for you would be to keep 6-8 weeks of your expenses in cash and then if you have more emergency funds, reserve funds, savings, then that could have more flexibility with the realization that it could take more than 3 days to get access to it.. yet many times, if you spend through 6-8 weeks of your cash, you might still have a few days before you would need the additional money.. There are not too many scenarios that guys all of a sudden (within a few days) are going to need more than 8 weeks worth of cash.. and if you do, those might be such extensive emergencies that you may well end up having to tap into your bitcoin.. and surely we are trying to prepare for more likely and if something really extreme happens, maybe our bitcoin is not completely safe from those extreme happenings.

Currently, I only have two options keeping all my emergency funds in a bank account or buying them in gold.

So physical cash does not work anymore?  Sure, i have money in the bank, but I also tend to have a couple of weeks of expenses in physical cash.

I think gold sells quite quickly. Where I live, when I want to sell gold, I only need to bring the paperwork and the gold, and the transaction can be completed immediately.

Many parts of the world are not very set up for physical gold, so surely you are in a place in which you have places that you can exchange in physical gold.. so yeah that might be a fairly stable asset (in terms of volatility) and liquidity if you have places you can exchange.. and what about the fees?  are the fees reasonable?

So, do you think this option is relevant? Gold is also a pretty good store of value. So, my emergency funds, stored there, certainly won't be eroded too much by inflation. So, I think gold might be a good choice right now. What do you think?

If you have gold, cash in the bank, physical cash and mutual funds then you seem to be in a good place, and it would just be a matter of how much you want to keep in each and how much you think that you need to have, and the most common emergencies tend to be small in nature, which are shortages in income and/or increases in expenses and maybe you just end up having to spend a few weeks of your various back up funds, so it does not end up being even close to an emergency because you already have systems in place to deal with such shortages in funds... Surely, you seem to be also thinking about other situations that could come about with you or your family and so the more likely they are then the more of the various back up funds you would need to keep in order to avoid tapping into your bitcoin.

And, from my understanding you are still pretty early in your bitcoin accumulation journey, so I would think that you would have a priority to continue to be building up your bitcoin stash and avoiding tapping into it.. and the earlier that you are, then the more likely you are wanting to build it rather than just leaving it sit idle.. and the longer that you have been building your bitcoin stash, then you may well start to get into a position where you consider that it is not urgent to continue to build your bitcoin stash size.  For sure, some folks also will stop or slow down too soon in their building of their bitcoin stash, and then when we are 4-10 years or more in the future, they come to realize that they would have had or could have had been more advantaged by having had stacked more aggressively in their earlier bitcoin years.. .but then by the time they realize it, several years have passed, and we know that we cannot turn back the clock in regards to earlier bitcoin prices.

[edited out]

You are absolutely correct a real investor should not have to be confuse or bothered about market fluctuations but I want to ask because there was a post I come across that someone said that newbie or beginners can get worried or bothered about market dip because they don't have enough knowledge and understanding, so does it mean that those newbie or beginners are not real investors? And if they are not what stage would they be classified as a real investor and what are the criterias?. I would love to know.

It could be the case that in the beginning, some of the new bitcoin investors are not really sure about what is bitcoin, why they are buying bitcoin, and they might not even be sure about whether they are investors or not, so if they are not sure about what they are doing, then they are going to have difficulties in terms of their being serious in their bitcoin accumulation journey and/or their making sure that they are not tempted to sell when they are supposed to be ongoingly buying. 

Some of the newbies might be a little dumb and they might think that selling to buy back cheaper is a good strategy, even though that is a trading strategy rather than an investing strategy.. so it could take a bit of time for newbies to develop good habits and a more correct mindset regarding how to build up their bitcoin holdings and even attempting to be realistic in the timeline for investing which would be 4-10 years or longer, and surely so many newbies have a hard time thinking that their timeline should be 4-10 years or longer.. so transitioning into a better mindset might take some time to accomplish.. and some newbies might be resistant in getting into a correct investment mindset.. and we cannot really force them to transition into an investment mindset, they have to figure out some way that it can fit them to get into an investment mindset. and if they cannot get themselves into an investor mindset, then they likely have to suffer the consequences of their inferior approach to bitcoin.

People who are determined to hold bitcoin for a long term will never harbour the thoughts of selling their bitcoin no matter how many times they look at the charts. Unless you are someone who's never determined to hold on to your bitcoin. Besides people can look at charts for some other reasons, it could be for educational purposes, were they need to study charts in other to teach other people who are struggling to read charts, and also speak with certainty when they engage in discussion with folks. Selling is a choice that people makes even with or without looking at charts. The point I am making is that looking at charts should never be an  excuse for someone who has already made up his mind to sell bitcoin.

You have made your point, but I disagree with it  because anything done in excess always have it negative effects, am not saying that as a bitcoin investor, it's wrong to look at the chart, what am saying is that if as a bitcoin investor that wishes to holding for long, staying glued to the chart is very bad because it has the potential of making you emotional and in the process you might act wrongly, by selling prematurely due to fear of the dip, because whether you accept it or not, holding is difficult, and it's made even difficult when you are constantly checking it as if it's going to disappear or constantly looking at the price chart, that's when your emotions will get the better of you, even though you have a long term goal of holding strong.

I don't see anything wrong with looking at charts, yet if we are an investor rather than a trader, we may well end up spending 4-10 years or more just accumulating bitcoin on an ongoing basis, so the price (or the charts) does not affect our goals to continue to buy bitcoin on an ongoing basis.

There may be guys who are tempted to trade (and they might also be tempted to get involved in shitcoins), so if they could at least limit themselves (and their bitcoin investment) to trading/shitcoining with less than 10% of their bitcoin holdings, then maybe they would at least have some control over what they are doing. 

For example, if a person had been investing into bitcoin at $100 per week for a year, and after a year, he had built up a bitcoin holdings that is $5,200 invested, they could decide that any new money coming in, they would dedicate $90 per week to investing and the other $10 per week to trading and/or shitcoining.. and maybe they had gotten a raise too, so maybe their budget is higher the second year... but anyhow, for simplicity sake, we will stick with the same numbers, and so then after the second year  they had invested $4,680 into bitcoin and $520 into trading and shitcoining.. and so they can continue to have these two separate to the extent that thye are feeling that they are getting something out of their trading/shitcoining.   Many times guys will have troubles limiting themselves to ONLY 10% into trading and/or shitcoining, so they might get lured into trading/shitcoining with a higher percent.,. and so it can be difficult to stop people from engaging in trading/shitcoining yet if we can at least get them to agree to limit themselves, then they still can at least analyse the outcomes and sometimes it can take several years, perhaps even a couple of cycles before they end up coming around to realizing that trading/shitcoining is not a good use of time, energy and resources.

Of course, after a couple of cycles (8 years) there could be some rare guys who find out that they are able to match or to beat bitcoin's performance and maybe they even figure out some pretty solid systematic ways to accomplish such superior performance.. and yeah, I think it would be rare, but sure outperformance is possible in some rare cases. and guys are free to figure out their own approach.. and surely we have a lot of folks who have more confidence in their abilities than warranted, and they can spend 8-ish years figuring out if they actually are able to perform better than bitcoin's buy and hold strategies.

[Alonso_]

It could be the case that in the beginning, some of the new bitcoin investors are not really sure about what is bitcoin, why they are buying bitcoin, and they might not even be sure about whether they are investors or not, so if they are not sure about what they are doing, then they are going to have difficulties in terms of their being serious in their bitcoin accumulation journey and/or their making sure that they are not tempted to sell when they are supposed to be ongoingly buying. 

Some of the newbies might be a little dumb and they might think that selling to buy back cheaper is a good strategy, even though that is a trading strategy rather than an investing strategy.. so it could take a bit of time for newbies to develop good habits and a more correct mindset regarding how to build up their bitcoin holdings and even attempting to be realistic in the timeline for investing which would be 4-10 years or longer, and surely so many newbies have a hard time thinking that their timeline should be 4-10 years or longer.. so transitioning into a better mindset might take some time to accomplish.. and some newbies might be resistant in getting into a correct investment mindset.. and we cannot really force them to transition into an investment mindset, they have to figure out some way that it can fit them to get into an investment mindset. and if they cannot get themselves into an investor mindset, then they likely have to suffer the consequences of their inferior approach to bitcoin.

You’re correct most newbies when they are getting started in bitcoin most likely doesn’t really know what they’re doing properly because they didn’t have a basic understanding about how bitcoin is all about mostly how to possibly hold bitcoin for a longer term period, and they might be confused with details of how to achieve their desired goal while investing, most importantly how to successfully hold bitcoin, exactly when they’re not sure about what to do about bitcoin like making a decision if they want to be trading or holding bitcoin for a longer period it would definitely result to some degree of difficulties.

Exactly I have come across folks who were buying bitcoin and selling immediately when they comes across some profits because they don’t know what they are doing, but was able to tell them how to buy buy bitcoin and hold for a longer period, I think if newbies have a good mindset before coming into investing in bitcoin, I think that bitcoin holder will do absolutely well, and sometimes I think the challenge is because they lack some basic understanding knowledge before starting to invest in bitcoin.

However those newbies who have started investing in bitcoin and made some mistakes which I must say that mistakes are normal but the best way is learning from that mistakes and working with the experience gathered from investing while making that mistakes, and having that mindset to learn how to invest with the right strategy of investing and holding for that 4-10 years and most importantly accepting the revelation of holding for a long period would be good for them to start adjusting to everything that will make it possible to have a good mindset of doing the right techniques of investing and holding Bitcoin.