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.

[Gost ms]

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.

If someone's goal is 1 Bitcoin and if he makes a budget until he buys 1 Bitcoin, then it will never be sustainable for him. Because our expenses increase in many months or weeks and sometimes we get promotions and the amount of income increases. So what we need to do is, from the amount of money we earn every month or week, from the amount of money we are able to find, discretionary income, how much money we are willing to invest or are comfortable with, so investing will be the right decision.

When we calculate everything at once and are willing to invest that amount of money and if we invest with urgent money then it can be harmful for us. So investing based on our financial situation will be the right decision.

[GIF-JOBS]

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.

For those who are overly concerned about the market, using DCA is even more necessary, DCA strategy is the only one that avoids the negative effects of market volatility, when you invest through DCA, volatility will not harm you. Because it is a consistent strategy that builds a portfolio at an average price over the long term, volatility cannot affect it, which is why DCA strategy is the most suitable for starting investment compared to other strategies. Those who understand this strategy well from the beginning and continue to invest consistently with it, are very unlikely to face long-term failure.

[Jamestown70]

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%.

As much as I want to agree with you, 5 to 3% is way wimpy. If I understand correctly what you’ve said, your cold fund is also seen as your discretionary fund and you’re willing to allocate not less than 3 to 5% of your total income into your discretionary funds, after you’ve met your primary, secondary and emergency allocation for the month, let’s assume that’s the amount you’re willing to invest on a long term, for instance, someone who earns $500 on a monthly or weekly basis, after sorting out his basic needs and emergency allocation, he is left with 20% of his total income and he decides to put all those left over fund into his cold fund (discretionary funds) then investing 50%-70%  of his discretionary fund isn’t a bad idea.

But allocating 3 to 5% of your total income into your bitcoin portfolio to me is way wimpy, most especially in this time the price is on a bearish momentum.

[IceLincoln]

Sure.  Overaccumulation might not be clear to some folks, and so once in a while, I will provide some example of what it might mean - and frequently I am referring to guys who would have goals to stay invested in bitcoin for life.. so then once they reach overaccumulation status, then they have the option to stop of slow down in their BTC accumulation, and they may or may not end up transitioning into sustainable withdrawal status - even though it is logical that some time could pass at each stage.  Accumulating, then maybe maintenance and then maybe later sustainable withdrawal.. which means always keeping bitcoin.. and starting to sell some bitcoin in which the value of the bitcoin is likely going up greater than the amount being sold.

Do we need an example?

So for example, a guy who had an income of $30k per year accumulated $100 per week of Bitcoin between January 2016 and present, and so he invested $53k and he accumulated 15.3 BTC.  His plan was to begin to withdraw from his bitcoin once it would be able to support an $80k per year income, and so when he looks up 15.3 BTC, he sees that right now, it would support right around $80k per year sustainable withdrawal... so he has enough and maybe even more than enough BTC to get started withdrawing at a reasonable rate in which he considers the stash will continue to grow (in dollar value) greater than the amount that he would bre withdrawing. Of course, if he were to have even more BTC than the 15.3, then he would have extra BTC to give him even more assurance about having enough or more than enough.. and surely since bitcoin prices are currently down, he may well purposefully choose to make downward adjustments in his withdrawal rate in order to make sure that the withdrawal rate that he is employing remains sustainable and that he is not overly withdrawing from his bitcoin stash.  Some guys will purposefully choose to either accumulate extra bitcoin or to wait a bit longer in time so that they have a cushion once they start their withdrawal and to feel comfortable that they are not withdrawing too much too soon..

While I agree with your explanation and example, I also like to think that over accumulation stage is relative; for different individuals and their financial capabilities. 0.5BTC might be an over accumulation for someone while it’s just a slice for another.
Let’s say I have a yearly income of $4,000-$5,000 and I Choose to be investing $10 weekly into bitcoin since 2020 till date. I’ve invested a total of $3120 (312 x $10) which will be worth $45,000 - $50,000 today using a DCA calculator and have accumulated about 0.3BTC.

So judging from the amount I’ve invested and my income, this is a huge returns, this can be my over accumulation stage even while it is just a step to others.
I don’t know if you get me ?….

[Nightwatchmare]

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[/b]

I do not like the idea of building an emergency fund before accumulating Bitcoin because i see the process of building an emergency fund before accumulating Bitcoin as a delay tactic because if you have not build your emergency fund to the amount you want, you will not kick start your Bitcoin investment and it will make you miss plenty of buying opportunities. In my opinion about building an emergency fund, it is better to build an emergency fund along side your accumulation process since Bitcoin investment is the reason of building an emergency fund.

[Mr_Brilliant$]

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.

I Like how simple and straightforward you sound..  The truth is, most people lose money in Bitcoin not because Bitcoin failed… but because they failed to control themselves. They buy bigger than they’re suppose to, panic when it dips, then sell everything out of fear..  That’s where the whole mess up is..
if I’m to add, along the process of investing it also good and necessary to build an emergency funds alone side, so that when an emergency comes suddenly, you won’t be forced to sell of your bitcoin..

[aylabadia05]

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

As long as they are not done simultaneously, it may be more acceptable to common sense, without intending to measure how good or healthy a person's income stream is.
From what I have seen in my economic environment, on average, it is difficult for people to do all three of the things you mentioned at the same time because it all depends on how easy it is for them to earn money.
The most I can do is ensure that all needs are met without difficulty, and then the rest goes toward investment.

[Agbamoni]

For those who are overly concerned about the market, using DCA is even more necessary, DCA strategy is the only one that avoids the negative effects of market volatility, when you invest through DCA, volatility will not harm you. Because it is a consistent strategy that builds a portfolio at an average price over the long term, volatility cannot affect it, which is why DCA strategy is the most suitable for starting investment compared to other strategies. Those who understand this strategy well from the beginning and continue to invest consistently with it, are very unlikely to face long-term failure.

You are totally right. Since they are very much concerned about the prince swing, focusing on DCA is the best strategy to use in order to sustain their investment in this bear market. Newbies should not get it all wrong. DCA does not solve the problem of volatility in Bitcoin, it only helps an investor manage volatility so they dont get affected by it. The reason why I strongly direct this to newbies is that they are the ones who are easily frightened by volatility. An experienced investor wont be in that condition

[Silikiem]

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

As long as they are not done simultaneously, it may be more acceptable to common sense, without intending to measure how good or healthy a person's income stream is.
From what I have seen in my economic environment, on average, it is difficult for people to do all three of the things you mentioned at the same time because it all depends on how easy it is for them to earn money.
The most I can do is ensure that all needs are met without difficulty, and then the rest goes toward investment.

But I still think this can be more preferable to go simultaneously because it’s very much achievable in this manner. I mean for the context of bitcoin investment, our emergency funds is to protect our investment so we don’t tend towards selling our bitcoin investments when in an emergency financial situation. It absolutely makes no sense delaying buying and investing in bitcoin because you’re trying to build emergency funds first, the question is where is the investment you’re building to protect it for. Rather than delaying buying bitcoin because of building an emergency funds, it’s more wise to simultaneously doing both especially after taking care of our basic financial needs first and you’re left with a discretionary income and inside that discretionary income you can chose to buy bitcoin with some part of it and keep the remaining part for building up emergency funds gradually until you get there and it will go.

[Cryptohygenic]

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[/b]

I do not like the idea of building an emergency fund before accumulating Bitcoin because i see the process of building an emergency fund before accumulating Bitcoin as a delay tactic because if you have not build your emergency fund to the amount you want, you will not kick start your Bitcoin investment and it will make you miss plenty of buying opportunities. In my opinion about building an emergency fund, it is better to build an emergency fund along side your accumulation process since Bitcoin investment is the reason of building an emergency fund.

Solokan was right and investment emergency funds is is a budget structured to be obtained through the discretionary incomes and the source of income we are talking about here is not a money already available and even when it does, we can still make budgets to accumulate more of the emergency funds so that we can always save a lot if not enough to execute out investment plans.
But as for those investors who are targeting to buy bitcoin in a specific price, it is better to keep the  funds ready before the opportunity take you unexpected and passes you buy when the funds is not made ready before the timeout.

[MissNonFall9]

Well said bro, because I agree to everything you said here, though the dca accumulating strategy makes it very easy for anyone to invest in Bitcoin, because you may have to accumulate it either weekly or monthly consistently depending on the availability of your discretionary income, but if you have the capability to buy with lump sum strategy in this present time, it's a very good idea because since the price of Bitcoin is down now, it's like getting it at a discount price that may not come again.
So in essence of what am trying to say is that dca and lump sum accumulating strategy are both ok, as long as it's tailored around the availability of your discretionary income.

You are right friend, if the DCA method and the lump sum method can be taken at this time based on discretionary income, then we will be able to take advantage of the opportunities and we will also be able to maintain our continuity. What is needed for lump sum investment is a little bit of courage, I believe that there can be a big turn back for those who can invest the extra cash at this time with this courage. So at this time I am supporting this hybrid approach. What do you say?

[JayJuanGee]

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.

For sure, normal people are likely to frequently find themselves in situations where they are tempted to sell some bitcoin early or they might believe it is the easy way out of some temporary financial situation that they find themselves to be in, and they have to figure out the extent to which it is worth selling some bitcoin early and perhaps setting back their progress in regards to meeting their overaccumulation goal.

None of us can really answer the question for someone else, and in various kinds of investment matters we will see situations in which a person was on a path to be able to retire early and they might be making progress and after many years of building up their funds, they make some withdrawals and they deplete their funds in such a way that they never are able to reach early retirement or perhaps they end up delaying their ability to do so by several years.

And, like you mentioned, we cannot always know the extent of the damage and perhaps if we might have been in our mid-to-late 40s when we got into bitcoin and we had a goal to retire in our late 50s, yet we get in our late 50s and we still end up needing to have to work another 5 years based on the mistakes that we made 8 years earlier.

Hopefully we put systems in place and perhaps we even reinforce our in place systems on a regular and ongoing basis so that we lessen the likelihood that any mistakes that we make will have great negative materials effects on our later options.

Sometimes guys who are even younger (in their 20s and 30s) might feel that they have more time that they can both mess up and make up for their mistakes, which surely is true that the younger that we are, then the more time that we have to work with in terms of building up our wealth, yet there also can be advantages if a younger guy is responsible and ends up being able to stop working (or to have the option to do so) in his 40s rather than having to wait until his 50s or 60s.

[edited out]

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.

Are you planning before you get started?  that is a bad idea.

You are likely holding onto way too much cash if you are a newbie and planning to have 6-12 months of expenses in your fund.

You can start investing into bitcoin with little to no back up funds as long as you are sure that you have discretionary funds.  Sure, it may well be good to have back up funds that are equal to the amount that you are putting into bitcoin, so that you can build up your bitcoin and your back up funds at the same pace.  There may well be some folks who come to bitcoin and they might already have anywhere between 2 to 6 weeks of expenses already in the cash cushion that they had in place prior to staring in bitcoin, and there is a bit of a bonus to already have some back up funds in place.

It may well take a year or two to build up back up funds and an amount invested into bitcoin that is both 3 months of expenses...

Think about it.  If a person is only putting 10% of their income into bitcoin and their back up funds, then it would take 10 months just to reach 1 month worth of back up funds and bitcoin investment... so at that rate it would take 60 months or 5 years to build it up to be 3 months in each.

To me, it seems practical (and even smart) to start investing in bitcoin as soon as a guy can figure out that he has discretionary funds and then to build up the back up funds and the bitcoin as aggressively as he is able to do so without over doing it.. At the same time, learning and planning can be done while the building up of the funds is taking place.. ... and if he has ways that he is able to increase his discretionary funds by increasing income and/or decreasing expenses, then he likely can make more progress on building his bitcoin and strengthening his cashflow management systems/practices that includes building up his back up funds

I think that once a guy gets up to 3 months of back up funds, he is in a better place to invest more aggressively in bitcoin, yet at the same time if he is also wanting to continue to build up various back up funds, then he has the option to do that too... and perhaps if he gets to a point that he had invested a year or two of his expenses into bitcoin, he might also start to feel that he is benefiting from bitcoin's appreciation too (even though bitcoin is not guaranteed to appreciate).

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.

If someone's goal is 1 Bitcoin and if he makes a budget until he buys 1 Bitcoin, then it will never be sustainable for him. Because our expenses increase in many months or weeks and sometimes we get promotions and the amount of income increases. So what we need to do is, from the amount of money we earn every month or week, from the amount of money we are able to find, discretionary income, how much money we are willing to invest or are comfortable with, so investing will be the right decision.

When we calculate everything at once and are willing to invest that amount of money and if we invest with urgent money then it can be harmful for us. So investing based on our financial situation will be the right decision.

A person needs to attempt to be realistic, since even a person who might invest $400 or more per week, may not reach 1 whole bitcoin in 10 years.  $400 per year would be $21k in 1 year and $210k in 10 years.  I have my doubts that bitcoin prices will average ONLY $210k in the next 10 years.  Sure anything is possible, but I have my doubts.  

Otherwise you are correct that each of us needs to figure out how much that we are able to invest into bitcoin based on our finances and how aggressive that we are able to be which surely might be a lot lower than being able to consistently invest something like $400 per week into bitcoin... yet we do what we can and what we are ready, willing and able to do in regards to ongoing investment amounts to build up our bitcoin holdings

Sure.  Overaccumulation might not be clear to some folks, and so once in a while, I will provide some example of what it might mean - and frequently I am referring to guys who would have goals to stay invested in bitcoin for life.. so then once they reach overaccumulation status, then they have the option to stop of slow down in their BTC accumulation, and they may or may not end up transitioning into sustainable withdrawal status - even though it is logical that some time could pass at each stage.  Accumulating, then maybe maintenance and then maybe later sustainable withdrawal.. which means always keeping bitcoin.. and starting to sell some bitcoin in which the value of the bitcoin is likely going up greater than the amount being sold.

Do we need an example?

So for example, a guy who had an income of $30k per year accumulated $100 per week of Bitcoin between January 2016 and present, and so he invested $53k and he accumulated 15.3 BTC.  His plan was to begin to withdraw from his bitcoin once it would be able to support an $80k per year income, and so when he looks up 15.3 BTC, he sees that right now, it would support right around $80k per year sustainable withdrawal... so he has enough and maybe even more than enough BTC to get started withdrawing at a reasonable rate in which he considers the stash will continue to grow (in dollar value) greater than the amount that he would bre withdrawing. Of course, if he were to have even more BTC than the 15.3, then he would have extra BTC to give him even more assurance about having enough or more than enough.. and surely since bitcoin prices are currently down, he may well purposefully choose to make downward adjustments in his withdrawal rate in order to make sure that the withdrawal rate that he is employing remains sustainable and that he is not overly withdrawing from his bitcoin stash.  Some guys will purposefully choose to either accumulate extra bitcoin or to wait a bit longer in time so that they have a cushion once they start their withdrawal and to feel comfortable that they are not withdrawing too much too soon..

While I agree with your explanation and example, I also like to think that over accumulation stage is relative; for different individuals and their financial capabilities. 0.5BTC might be an over accumulation for someone while it’s just a slice for another.
Let’s say I have a yearly income of $4,000-$5,000 and I Choose to be investing $10 weekly into bitcoin since 2020 till date. I’ve invested a total of $3120 (312 x $10) which will be worth $45,000 - $50,000 today using a DCA calculator and have accumulated about 0.3BTC.

So judging from the amount I’ve invested and my income, this is a huge returns, this can be my over accumulation stage even while it is just a step to others.
I don’t know if you get me ?….

Of course, I was giving a guide in terms of a specific amount put in (such as in the example that I gave the guy was investing around 17% of his income into bitcoin for the past 10 years), and so I wanted to show the reaching of overaccumulation status, even for a guy who had increased the amount that he wanted to withdraw by 2.5x the size of his then income.

Surely there is nothing wrong with your numbers, and if I look up on a DCA calculator (such as https://newhedge.io/bitcoin/dollar-cost-averaging-calculator) how much would have had needed to be invested into bitcoin since the beginning of 2020 in order to get to 0.3 BTC, I see that it is on average $25 per week, so you might have had some weeks in which you were able to accumulate more than $10 per week. Nothing wrong with putting in some higher numbers from time to time along the way.

I don't give too many shits about spot price value, even though surely you could choose to cash out all of your bitcoin, and my own ideas relate to trying to stay invested in bitcoin and to be able to withdraw from your BTC holdings a rate that is both sustainable and enough for your purposes.. so surely there can be some incentives to build up the bitcoin stash to a level that it can sustain your withdrawal rate, whether you want the bitcoin as the exclusive income source or if you believe that they BTC might be supplementing other icncome sources that you might currently have or plan to have in the future.

Based on my own calculations of sustainable withdrawal rate, right now 0.3 BTC would sustain less than $1,700 per year withdrawal rate, yet it seems to me based on projections of the likely ongoing increase in the 200-WMA that if you still ONLY have 0.3 BTC or perhaps 0.4 BTC within the next 6 years^**,then it would probably support somewhere in the ballpark of $8k per year sustainable withdrawal rate  with an ability to increase the dollar amount of the withdrawals by 7% per year...  

** Note that I have not updated my 200-WMA projections on the website in the table so there will likely be needs to continue to monitor the rate, even though my personal updated table projects the 200-WMA to be over $200k by the end of 2031.. but yeah, each of us is responsible for our own projections and to make sure that once we start to withdraw that we are withdrawing at a sustainable rate.

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

As long as they are not done simultaneously, it may be more acceptable to common sense, without intending to measure how good or healthy a person's income stream is.
From what I have seen in my economic environment, on average, it is difficult for people to do all three of the things you mentioned at the same time because it all depends on how easy it is for them to earn money.
The most I can do is ensure that all needs are met without difficulty, and then the rest goes toward investment.

On an ongoing basis, guys who invest in bitcoin are figuring out 1) how much they have left after their basics (that is their discretionary income), 2) once they have discretionary income, they can choose a) invest b) save and/or c) discretionary consumption.

I count 4 things, and normal people should be able to fairly easily figure out these matters.

Of course, if they can make their discretionary income greater (by increasing income and/or by cutting expenses) then the amount that they have to work with in their discretionary funds will be greater.

These are not difficult concepts, and guys can learn how to get better through practice.

[Gallar]

For those who are overly concerned about the market, using DCA is even more necessary, DCA strategy is the only one that avoids the negative effects of market volatility, when you invest through DCA, volatility will not harm you. Because it is a consistent strategy that builds a portfolio at an average price over the long term, volatility cannot affect it, which is why DCA strategy is the most suitable for starting investment compared to other strategies. Those who understand this strategy well from the beginning and continue to invest consistently with it, are very unlikely to face long-term failure.

You are totally right. Since they are very much concerned about the prince swing, focusing on DCA is the best strategy to use in order to sustain their investment in this bear market. Newbies should not get it all wrong. DCA does not solve the problem of volatility in Bitcoin, it only helps an investor manage volatility so they dont get affected by it. The reason why I strongly direct this to newbies is that they are the ones who are easily frightened by volatility. An experienced investor wont be in that condition

DCA is a buying strategy carried out periodically or on a schedule. So, DCA is a buying strategy that focuses solely on the accumulation schedule and doesn't pay much attention to the price. Because what matters isn't the price, but rather the consistency of purchases and the amount of Bitcoin they've acquired. Perhaps that's why many people choose to use DCA when buying Bitcoin; it's because they don't experience the mental pressure of doing so.

However, even those using DCA can sometimes fail. It's pointless to use a DCA strategy while still being afraid of price fluctuations. This can ultimately lead to panic. Therefore, when investing in Bitcoin using the DCA strategy, we must never forget good planning. With proper planning, no matter how strong a storm, it's certain that we won't deter us from accumulating and holding Bitcoin. Because we already have a plan and a goal.