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.
Actually what we need to do in investing is when the position we have has not reached its goal or target it is better to maintain the sale of Bitcoin that we have accumulated because the decision to sell suddenly actually has several factors that may immediately make the decision to sell so that things like this we must respond here through discussions with what we are doing now because someone sometimes finds it difficult to face such a long time in reaching the peak point but has the strength in terms of waiting for one of the right steps in investing by accumulating BTC with the aim of investing that we do now will beco
me our future assets and if without patience everything will be so fatal in facing our future or for someone who does not wait in achieving the peak which is actually the point of investing must have patience in waiting for the point we want.
You are trying to frame investing within a trading framework, so if you are merely waiting for a higher price peak to sell your bitcoin because you think that if you wait longer then you believe that your trading mindset changes to investing.. but it does not change merely because you are wanting to sell at a higher price... since the investor is not just looking for a higher price in order to exit bitcoin... even if he might start to sell some of his bitcoin from time to time once he has reached a high enough status in his holdings. The investor is not selling BTC in large portions of his holdings merely because it reached a higher price as you seem to be describing the objective of the investor as being different from the objective of a trader..
I think that it is confusing when you describe investing as if the investor is trying to find a higher BTC price peak, and you are telling us that is how investing differs from trading.
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.
Approximately how much does excess accumulation reach? Do we need to have thousands of Bitcoins first, or what? Since I'm still not very knowledgeable about this, I'd be very happy if you could explain it to me. However, if we buy BTC at a low price, as you mentioned, it will be difficult to get it back at that low price. I sometimes think that too. Indeed, if we don't have much BTC, it would be a shame to sell it now, because if we look to the future, the price of BTC will certainly rise.
Waiting for the long term is certainly not easy because most people always want to get rich quickly from investments in the short term. But it's okay because it has been proven that
investing in BTC for the long term is always profitable as long as we hold on to it firmly.You have to figure out how much bitcoin is enough or more than enough.
For example, if you had a $30k per year income and you started investing $100 per week in bitcoin (which is about 17.3%) in the beginning of 2016, and perhaps you had a goal of quitting your job once you could support an income of $80k per year. By now you would have invested $53k, and you would have had accumulated 15.3 BTC.
You look up 15.3 BTC ,and you see that it is enough to start to withdraw $80k per year, even though the BTC price is currently down.
Of course any bitcoin that you have more than your 15.3 BTC would be excess, yet right now based on 15.3 BTC holdings, you are at the threshold level of enough or slightly more than enough. You can figure out your various calculations so that you don't overly withdraw and that you stay in overaccumulation status.. which means that your bitcoin dollar value is growing faster than the amount that you choose to withdraw. If you screw up your calculations and you withdraw too much too quickly, then that would be on you to make sure that you figure out those matters so that you withdraw at a rate that is both comfortable and sustainable. I talk about both price-based and time-based sustainable withdrawal in
my thread on the topic.
Bitcoin is not guaranteed to "always be profitable" even in the long run. You have to figure out your balances.
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.
It won't be difficult if you know how to distinguish between discretionary income and discretionary spending.
Normally, people who can think about applying this concept will do so depending on how clearly they think about it.
Whatever amount of discretionary income you have can be spent on whatever you want, and it is these desires that need to be sorted out, whether they are for investment or hobbies.
This is not long, just the gist of it.
You almost confused me with your terms " discretionary income and discretionary spending" discretionary spending can really mislead or confuse some plebs because our major discussion is how to accumulate Bitcoin and hold for long term
Surely there can be differing ways that any of us might express ideas related to investing and what money that we might have available for investing. aylabadia05 did not say anything incorrect, even though sure maybe he could have had been more clear.
Once we figure out our discretionary income, then there are three ways that we can use it: 1) invest, 2) save and/or 3) discretionary consumption.
So we choose how much we are going to put into each of the categories.
and what we need to carry out this successfully is our discretionary income and sometimes sorting it out is hard for some folks.
Practice helps, and perhaps talking about it (such in this forum) can help too.
So the term discretionary spending should be kept aside because discretionary spending can mean a lot of things ( like using our discretionary in things outside Bitcoin also) which is not really what we are discussing.
Seem that we are discussing how much we can spend from our discretionary income/funds. If you go beyond your discretionary funds then you are using money that is needed for expenses. There are a variety of ways that guys can present the ideas, but we seem to be talking about spending from our discretionary income/funds and if we cannot figure out if we have enough discretionary funds, then we should not be trying to invest in bitcoin because it is too risky that we might end up using money that we need for our expenses.
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Such a person has a high probability of success in Bitcoin investment, if someone invests continuously and keeps it for a long time, then he will definitely be successful. Especially if Bitcoin investment is for a long time, this is the only time when there is a high probability of achieving more. Because the Bitcoin market is being corrected at the moment, this is the only time to buy Bitcoin and make continuous purchases. Those who will invest in Bitcoin one-time will also be able to buy Bitcoin at the moment of this correction.
Investing in Bitcoin is not guaranteed to be successful whether buying on dip or buying consistently over a long period of time.
