Buy Buy Buy or Sell Sell Sell?

[Emjay24]

As a newbie, one of the first things you should understand is that investing should not come before financial stability.

This is the problem of most investor's that fails to start their Bitcoin investment, because they think that they must be stable first before starting their investment, but that is wrong. Once you can figure out your discretionary income, you can start your investment without wasting anytime further because waiting to gain financial stability before starting is time wasting, and you may not start your investment if you did not later gain financial stability.

You're saying the opposite of what Moeralife11 stated. Financially stability should be attained before you think of investing. Financial stability is being in control of your money and being able to handle expenses, including emergencies, be able to save and plan for the future ahead. Financial stability is different from having a stable income. If you're not financially stable, you'll not have discretionary income since you might still be struggling to handle your expenses properly and we know the discretionary income from which you invest into Bitcoin is the money left after handling your expenses.

When you've attended to your expenses, you'll have extra to invest and save. You can use the discretionary income to invest into Bitcoin and build emergency find. Before investing you need to be financially stable first.

[BluebloodCXVI]

It's really so hilarious when I see people talk about putting 3 months of their monthly income into their emergency funds and then it's enough, I don't even know where they got that information from or maybe they seem to be making assumption because 3 months salary of an average person can't go anywhere in his emergency funds.

Most serious bitcoin investors i know of wouldn’t save up 3 months worth of emergency funds and call it a day forever, especially the one’s that have had their skin in the market for a significant period of time and understand how volatility works.
I see the 3 month rule as just a rule of thumb for newbies and most times it often gets repeated without proper context.

I frequently suggest that a guy should be topping up his emergency funds as much as he's topping up Their investment either weekly or monthly or perhaps daily because emergency is not measured that we could possibly know or guess how much of our emergency funds that will be enough for each emergency.

BS!…Once you have been able to accumulate your emergency funds to a level where it covers your actual risk profile(not some generic number), i don’t see any reason for you to keep piling it up at the same rate as your investment anymore.
You don’t need to treat your emergency funds as if it is a second investment cos it’s not, it’s called buffer for a reason.

[Ruttoshi]

Financially stability should be attained before you think of investing.

You don't need to be financially stable before you can start your bitcoin investment. What you need is only your discretionary income and the exchange to buy your first bitcoin. This is because some people have discretionary income but they're not financially stable and they shouldn't deprive themselves from buying their first bitcoin and be a low coiner. Bitcoin is a long term investment that increases in value overtime and you don't need to waste any time or prevent yourself from buying when you're capable to buy.

Even if you discretionary income isn't constant and comes once in a while, you can buy bitcoin at that time that your discretionary income is available and look for other means to increase your income so that, you can use the second means of income as your discretionary income and accumulate bitcoin consistently overtime. I can be given money as gift and use that money to buy my first bitcoin and hodli provided that I didn't sell it. It's better to be a low coiner than a no coiner because if you want to wait till you are financially stable, you might end up not investing into bitcoin at all.

[Sticky Bomb]

Financially stability should be attained before you think of investing.

You don't need to be financially stable before you can start your bitcoin investment. What you need is only your discretionary income and the exchange to buy your first bitcoin. This is because some people have discretionary income but they're not financially stable and they shouldn't deprive themselves from buying their first bitcoin and be a low coiner. Bitcoin is a long term investment that increases in value overtime and you don't need to waste any time or prevent yourself from buying when you're capable to buy.

I don't know your definition of financial stability, but from what the person you quoted is saying, you need to be able to cover your expenses at least and have something left which is discretionary income before investing. If you cannot satisfy your expenses, then there's no point investing. It's true that there's may be times someone receives a gift or work bonus or all of that free money, but someone who's struggling with finances might even have outstanding debts to clear or responsibilities unattended, so it's not wise to neglect your needs because you want to invest.

If the financial pressure becomes too much, the person would still sell their Bitcoin to make ends meet.. The person in such a situation might not even have enough to create an emergency fund while investing, so it's not ideal.

The best thing is for such a person that isn't financially stable is to work around his finances until he's able to take proper care of his expenses and identify to having discretionary income available from which he can invest into Bitcoin and save for emergencies.

[Tank67]

I also agree on this ,emergency funds as the name implies is best use when their is a serious situation on your portfolio not using it to invest, you can't use it to invest because if you use an emergency funds to invest what then happens when an investor is having a hard time which funds can he use to solve the situation, that means he has fault in his investment and can never be fixed, because he has used the emergency funds for something else that means he has to face the rote of his or her tailed calculations, in other words emergency funds shouldn't be use for anything except emergency as the name implies.

I think it should so simple for anyone to understand what emergency funds should be used for going by the definition of the term emergency.
I don't know why some investors like to get themselves confused, if someone is saying emergency funds should be used for instance, what then should an investor use when emergency occurs, our emergency funds serves as protection tool to our Bitcoin specifically when when emergency situation takes place, so we are not supposed to have a different purspose for creating emergency funds, rather than what it is meant for.

From the word, the meaning is already known, and for those who are still finding it hard to understand what the meaning is, they can make use of the dictionary because a lot of people are not even taking the whole idea of emergency funds seriously, and I don't think any investor can survive without them, and the issue now is that it is not just about investors even those who are working and are not investing also talk about having emergency funds because they know the advantages that it comes with when you have emergency funds, for me emergency funds since even come first but since you are going to be using a discretionary income all will be generated from that.

[Son Of Blockchain (SOB)]

You're saying the opposite of what Moeralife11 stated. Financially stability should be attained before you think of investing. Financial stability is being in control of your money and being able to handle expenses, including emergencies, be able to save and plan for the future ahead. Financial stability is different from having a stable income. If you're not financially stable, you'll not have discretionary income since you might still be struggling to handle your expenses properly and we know the discretionary income from which you invest into Bitcoin is the money left after handling your expenses.

When you've attended to your expenses, you'll have extra to invest and save. You can use the discretionary income to invest into Bitcoin and build emergency find. Before investing you need to be financially stable first.

Perhaps, you meant sustaining the discretionary income right cause if that's not what you mean then you're totally wrong, maybe you're not aware that the discretionary funds is not only gotten from an income therefore one don't need to be financially stable to generate it, waiting for financial stability before investing is another form of procrastination.
 Everyone including low income earners can manage their expenses to be able to get a discretionary income moreover it doesn't matter the amount someone starts investing with, it can be improved on the long run. That's why everyone should learn to manage their finance sobthey have leftovers after settling necessities.

[Charcol]

As a newbie, one of the first things you should understand is that investing should not come before financial stability.
Emergency funds can’t be looked down upon…

You need to be more clear about what you mean by financial stability. Because being able to meet your essential expenses and achieving complete financial security are not the same thing. Someone may be earning a regular income and may have discretionary income after meeting all their essential expenses. But they may not have a fully-built emergency fund or significant future assets. Should such a person refrain from buying Bitcoin just because they do not consider themselves financially stable yet?

I personally would be against waiting. Because it is possible for a new investor to start saving even with a small amount of discretionary income and gradually build an emergency fund. If someone waits to complete all their financial preparations, their investment may be delayed for a long time or may not even be possible for them to start.

[ChocolateBitcoinK]

As a newbie, one of the first things you should understand is that investing should not come before financial stability.

This is the problem of most investor's that fails to start their Bitcoin investment, because they think that they must be stable first before starting their investment, but that is wrong. Once you can figure out your discretionary income, you can start your investment without wasting anytime further because waiting to gain financial stability before starting is time wasting, and you may not start your investment if you did not later gain financial stability.

You're saying the opposite of what Moeralife11 stated. Financially stability should be attained before you think of investing. Financial stability is being in control of your money and being able to handle expenses, including emergencies, be able to save and plan for the future ahead. Financial stability is different from having a stable income. If you're not financially stable, you'll not have discretionary income since you might still be struggling to handle your expenses properly and we know the discretionary income from which you invest into Bitcoin is the money left after handling your expenses.

When you've attended to your expenses, you'll have extra to invest and save. You can use the discretionary income to invest into Bitcoin and build emergency find. Before investing you need to be financially stable first.

A person does not become financially stable just by having a regular income. If his income is difficult to meet his essential expenses, it will be difficult for him to continue investing regularly. If he starts investing in such a situation, he may have to sell Bitcoin at a loss due to some emergency expense.

It is not mandatory for everyone to wait until the entire emergency fund goal is met first. For those who have no savings and who have difficulty meeting their essential expenses with their monthly income, it is more reasonable to strengthen the financial foundation first. The purpose of achieving financial stability before investing is to create such a financial foundation. So that while investing, you do not have to compromise on your essential expenses and security.

[Rhow]

You are right, emergency fund should always treated as money saved for unexpected situation, it not meant for investment. because if investor mistakenly use emergency fund to buy more bitcoin, it may cause distraction to their long term plan whenever emergency happen. Emergency should always saved for emergency situations, because no one knows what tomorrow will bring and emergency can happen at anytime. If investor eventually tied up all is money into bitcoin, they may be forced to sell your bitcoin when emergency happen and that is against rules of long term investment, keeping emergency funds aside is very important instead of investing everything.

You are right, emergency funds should be used on unexpected challenges or problems but again, it doesn't mean it can not be used for other thing like investing in Bitcoin especially when there is an opportunity and when it is necessary to do so. However, if someone has an emergency funds and fortunately Dip comes, they can use their emergency funds and front load but this should be done wisely in the sense that, you ought to have a means of getting back this funds that is been used asap but it you don't have a means then it will be wise to let go the opportunity and prepare for another since Dip doesn't only occur once.

Having a plan to repay the money quickly is not the same as actually having the money when you need it. An emergency fund is not an extra reserve that you can use on the spur of the moment. The main purpose of an emergency fund is to have cash on hand in case you are in a bad situation. So that you do not have to sell Bitcoin. But when you decide to use that fund to take advantage of the price of Bitcoin, you are actually creating two uncertainties for yourself. First, it is possible that the thing you are buying with your emergency fund may depreciate further. Second, you may have medical expenses, loss of income, or other urgent expenses before you can repay the money to the emergency fund. In such a situation, will you have any options?

If you invest the money that is supposed to protect you from selling Bitcoin in an emergency, I would assume that you are weakening the security system you have created yourself.

[Joeboy]

A person does not become financially stable just by having a regular income. If his income is difficult to meet his essential expenses, it will be difficult for him to continue investing regularly. If he starts investing in such a situation, he may have to sell Bitcoin at a loss due to some emergency expense.

It is not mandatory for everyone to wait until the entire emergency fund goal is met first. For those who have no savings and who have difficulty meeting their essential expenses with their monthly income, it is more reasonable to strengthen the financial foundation first. The purpose of achieving financial stability before investing is to create such a financial foundation. So that while investing, you do not have to compromise on your essential expenses and security.

If you would agree with with, then you would very well know that achieving financial stability could take folks a whole lot of time, and even after wasting this much time folks could still not be financially stable...The reality of some folks si that they earn just enough to cater for their basic responsibilities while other are irregular income earner and such individuals would only have to keep postponing their investments indefinitely just before they can achieve complete stability...

Personally I believe folks don't need to have everything sorted out before they can start buying ..The most important thing is that folks understand their financial situation and then are capable of realizing their discretionary income...If that the case then folks could very well begin to invest regardless of the size of the investment amount without necessarily having to wait until stability is achieved...

[Rabata]

it is very important to be accumulating your savings as much as you are buying Bitcoin because you don't have idea of the kind of emergency that can occur to you that might needs a huge amount of money,

Fact. Most individuals just thinks an emergency funds is just a time setup. They just hit a little savings target and boom they just stop. But also one small hospital bill or car issue can just eat up our emergency funds with just a blink of an eye. Real life don’t really care about our plans, the moment we stop to add cash our Bitcoin stack because the next option when any emergency comes up.

Emergency funds should treated slightly like the way we treat our DCA , we should keep on topping up every month so we should never be forced  to touch our coin.

It's really so hilarious when I see people talk about putting 3 months of their monthly income into their emergency funds and then it's enough, I don't even know where they got that information from or maybe they seem to be making assumption because 3 months salary of an average person can't go anywhere in his emergency funds. I frequently suggest that a guy should be topping up his emergency funds as much as he's topping up Their investment either weekly or monthly or perhaps daily because emergency is not measured that we could possibly know or guess how much of our emergency funds that will be enough for each emergency.

It is not possible to know for sure what kind of emergency an investor will face in the future or how much money he will need to deal with that emergency. However, due to this uncertainty, it does not seem reasonable to me that an investor should regularly increase his emergency fund at the same rate as his Bitcoin purchases. Because we have different objectives for emergency funds and Bitcoin investments. I am saying that considering myself, an investor tries to increase the amount of Bitcoin in the long term. But the objective of an emergency fund is not to accumulate infinite amounts of cash. It depends on his necessary expenses, reliability of income, family responsibilities and alternative financial security.

[Silikiem]

As a newbie, one of the first things you should understand is that investing should not come before financial stability.

This is the problem of most investor's that fails to start their Bitcoin investment, because they think that they must be stable first before starting their investment, but that is wrong. Once you can figure out your discretionary income, you can start your investment without wasting anytime further because waiting to gain financial stability before starting is time wasting, and you may not start your investment if you did not later gain financial stability.

That’s why I believe an emergency fund should be part of the plan before putting too much money into investments. Your emergency savings should be kept somewhere safe and easily accessible,

Yes of course, preparing for emergency from the start is very important because if emergency comes up during that early of your accumulation, you would be able to protect your investment, if you have it in place from the start, but if you don't have them in place, your Bitcoin investment might not survive that early emergencies that came up too early.

I agree with you in the aspect of not waiting until we attain financial stability before investing in bitcoin. but then, Starting to invest in bitcoin only requires you to figure out a discretionary income to accumulate bitcoin, and truly the emergency funds is important for our bitcoin investment but not having the emergency funds in place shouldn’t be a reason for not starting the investment even though it’s better if you have it but not necessary you must have it (the emergency funds) in place at the start or before you start the investment. If you have a discretionary income available, start by buying bitcoin first, and along the process you can be building the emergency funds or you can allocate a part of the discretionary income towards buying bitcoin and another part to be saved for emergency funds.

[Derekfunds]

Perhaps, you meant sustaining the discretionary income right cause if that's not what you mean then you're totally wrong, maybe you're not aware that the discretionary funds is not only gotten from an income therefore one don't need to be financially stable to generate it, waiting for financial stability before investing is another form of procrastination.
 Everyone including low income earners can manage their expenses to be able to get a discretionary income moreover it doesn't matter the amount someone starts investing with, it can be improved on the long run. That's why everyone should learn to manage their finance sobthey have leftovers after settling necessities.

It appears you are the one that does not know what are you saying because if discretionary funds are not gotten from our income where else is discretionary funds gotten from? maybe you should explain to us where discretionary funds can be gotten from outside our source of income. it is true that we do not need or have to be financially stable first before one can be able to invest because the most important thing is being able to figure or sort out ones discretionary income regardless of the condition of your source of income.

[Son Of Blockchain (SOB)]

Perhaps, you meant sustaining the discretionary income right cause if that's not what you mean then you're totally wrong, maybe you're not aware that the discretionary funds is not only gotten from an income therefore one don't need to be financially stable to generate it, waiting for financial stability before investing is another form of procrastination.
 

It appears you are the one that does not know what are you saying because if discretionary funds are not gotten from our income where else is discretionary funds gotten from? maybe you should explain to us where discretionary funds can be gotten from outside our source of income. it is true that we do not need or have to be financially stable first before one can be able to invest because the most important thing is being able to figure or sort out ones discretionary income regardless of the condition of your source of income.

You were too quick in reading and skipped the part where i said that "the discretionary fund is not only gotten from an income. And am right, cause it can also be gotten from a gift (especially given in cash), an inheritance, government benefits, or even a giveaway. Although having a job is important for sustainable income but those who ain't opportunited to have can still generate discretionary funds.
 That's why being able to figure out the discretionary funds is important cause Bitcoin also gives opportunity to those who are aren't earning for the mean time to invest and own a fraction regardless of whether where the money is gotten is sustainable or not.

[JayJuanGee]

[edited out

You also said that a person should add the same amount of money to the emergency fund every time along with the bitcoin accumulation. I think that a backup fund can be built up in the beginning of the accumulation in such a way that the emergency fund reaches an amount equivalent to 3 to 6 months of expenses. When the emergency fund is built up, then we should increase the dca amount. This is a logical decision.

An idea of 3-6 months of back up funds seems like way too much cash, unless the guy has a lot of bitcoin.

Think about building up to 3 months of expenses, and then if they bitcoin is built at the same time, then that is still a lot of cash to be holding.

Are guys starting from zero back up funds, or do they already have some?

I would suggest that if a guy is brand new to bitcoin and if he already were to have 2-3 months of back up fund, then it may well be prudent of him to put half of his back up funds into bitcoin and then grow his bitcoin and back up funds at the same rate, and perhaps giving more emphasis to building the bitcoin side more.  Yet, guys have to also figure out their own cashflow situation and figure out how much confidence they have in their future income, since guys with high confidence in their future income can error on the side of lower back up funds as compared with guys who have low confidence in their future income.

[Sulegzy39]

In my opinion, even investors who lack the discipline to hold Bitcoin for an extended period of time should be able to understand why emergency funds should be set aside not only for savings but also to protect your Bitcoin portfolio in the future. In the event that an emergency fund breaks while you are making purchases, it is crucial to remember that, just as you organize your discretionary income on a weekly or monthly basis, don't forget to organize your emergency fund as well.It doesn't really mean that just because you organized your emergency fund last week or last month, it doesn't mean that you didn't save regularly.

 It is crucial to be building up your savings as much as you are purchasing Bitcoin because you never know what kind of emergency might arise and require a large sum of money. Therefore, it is always a good idea to plan ahead for your investments so that you can withstand any situations like that and not be tempted to sell when it's not due.

[Marvelockg]

[edited out

You also said that a person should add the same amount of money to the emergency fund every time along with the bitcoin accumulation. I think that a backup fund can be built up in the beginning of the accumulation in such a way that the emergency fund reaches an amount equivalent to 3 to 6 months of expenses. When the emergency fund is built up, then we should increase the dca amount. This is a logical decision.

  Yet, guys have to also figure out their own cashflow situation and figure out how much confidence they have in their future income, since guys with high confidence in their future income can error on the side of lower back up funds as compared with guys who have low confidence in their future income.

This is the ultimate determiner of the back up structure that an investor ought to put in place even though he is a completely new investor.

If an investors cash flow is strong enough, there is no point trying to spend two to three months building his emergency funds before he can then start stacking his bitcoin, it is even possible to build your emergency funds and bitcoin stack simultaneously for a time afterwards you pause on building your bitcoin emergency funds while being focus on the building of your bitcoin stack. the availability of resource is very key when it comes to deciding on how one relate with his investment allocation and his emergency fund allocation. the ultimate goal is that you are able to continue investing in bitcoin with a strong emergency fund which serves as a shield that is protecting your asset.

once you have set this in place, you can then focus on increasing your DCA amount so it becomes easier to attain your investment goal.

[Moeralife11]

There's no way to build an emergency fund daily, and even monthly spending seems difficult for those with limited income. Unless they have more than one source of income, it's possible to build an emergency fund somehow. Because they already have more capacity to meet their needs,

Having more than one source of income do not guarantee anything because their are folks that have only a source of income but are doing better than those with several sources, since his income may be larger than someone with several sources of income put together. What I think is more important is figuring out your discretionary income, because if you can figure it out regardless of your net income, you can still invest in Bitcoin consistently, because you can easily divide your discretionary income into three equal part, one part for investment, one part to set up your back up funds and the other last part for discretionary consumption, because like that you can always invest at ease and be successful at it.

I think it fits with the language you said in the bottom line that emergency funds are taken from additional income so that prioritizing is a part that we must prioritize so that what I said above is very much aimed at that emergency funds

This is not the best way to put down emergency funds in place.  The best way to put down emergency funds and you wouldn't have to fall back to it again because of an unattended basic needs is to first take care of all your basic needs, then the discretionary income left, is what you should divide into three places, one for investment one to put down your emergency and reserve funds and one for discretionary consumption, like that you would have no problem, not by taking money from your additional income to put it down without first figuring out your discretionary income.

I completely understand your point, and I agree that basic needs should always come first. Once those essential expenses are covered, the remaining discretionary income can be divided wisely between investments, emergency and reserve funds, and personal spending. That creates a much healthier balance because you’re not investing money that you may suddenly need for necessities. The goal should be to build both financial security and long-term wealth at the same time, while making sure your everyday needs are already taken care of.

[Moeralife11]

In my opinion, even investors who lack the discipline to hold Bitcoin for an extended period of time should be able to understand why emergency funds should be set aside not only for savings but also to protect your Bitcoin portfolio in the future. In the event that an emergency fund breaks while you are making purchases, it is crucial to remember that, just as you organize your discretionary income on a weekly or monthly basis, don't forget to organize your emergency fund as well.It doesn't really mean that just because you organized your emergency fund last week or last month, it doesn't mean that you didn't save regularly.

 It is crucial to be building up your savings as much as you are purchasing Bitcoin because you never know what kind of emergency might arise and require a large sum of money. Therefore, it is always a good idea to plan ahead for your investments so that you can withstand any situations like that and not be tempted to sell when it's not due.

An emergency fund isn’t just savings, it also protects your Bitcoin strategy. If an unexpected expense comes up and you have no cash reserve, you may be forced to sell Bitcoin at the wrong time. That’s why building your emergency fund should be an ongoing process, just like regular Bitcoin accumulation. Your discretionary income should be balanced between investing, strengthening your reserves, and reasonable spending. The goal isn’t simply to accumulate more Bitcoin it’s to build a financial position strong enough that you won’t have to sell your Bitcoin whenever life throws an unexpected expense at you. Consistency, preparation, and patience are just as important as the investment itself.

[Primark]

In my opinion, even investors who lack the discipline to hold Bitcoin for an extended period of time should be able to understand why emergency funds should be set aside not only for savings but also to protect your Bitcoin portfolio in the future. In the event that an emergency fund breaks while you are making purchases, it is crucial to remember that, just as you organize your discretionary income on a weekly or monthly basis, don't forget to organize your emergency fund as well.It doesn't really mean that just because you organized your emergency fund last week or last month, it doesn't mean that you didn't save regularly.

 It is crucial to be building up your savings as much as you are purchasing Bitcoin because you never know what kind of emergency might arise and require a large sum of money. Therefore, it is always a good idea to plan ahead for your investments so that you can withstand any situations like that and not be tempted to sell when it's not due.

You build an emergency fund because you don't have to sell Bitcoin to meet unexpected expenses. On the other hand, the purpose of collecting Bitcoin is to build your wealth in the long term. Although it is not possible to know for sure what kind of emergency will arise. That does not mean that due to this uncertainty, along with buying Bitcoin, you should increase your emergency fund indefinitely. In my opinion, the amount of money to allocate between collecting Bitcoin and building an emergency fund needs to be determined according to the financial situation of the person.

Many people may have a regular income that is quite reliable and they already have a cash backup to cover several months of essential expenses. Again, some people may have irregular income and have a lot of family responsibilities. If you advise these two types of people to increase their emergency fund at the same rate, you may not have considered the difference in their real situations.