Buy Buy Buy or Sell Sell Sell?

[ASloveapg]

Being a new investor and investing beyond your means should be viewed differently. Let's say two people start buying Bitcoin at the same time. The first of them may have a large amount of discretionary income every month after deducting all necessary expenses. But the second may have a small amount of discretionary income after meeting necessary expenses. Here, if the first person invests a large part of his discretionary income in Bitcoin, then his decision cannot be called wrong just because he is new. Because in addition to how much he is investing, you have to look at how much he has the ability to invest. I agree that many times, even if you invest within your means, you can feel uncomfortable when the market price falls. But that possibility is not limited to beginners. Experienced people can also be worried about their decisions.

I get your point and I know everyone doesn't have the same capacity when it comes to discretionary income as a matter of fact some newbie may have a bigger discretionary income or more capacity than someone who has been into Bitcoin investment for some period of time but that doesn't make them equal when it comes to handling situation. The  person who has been in for some period of time has seen a lot of things that a newbie hasn't so the point of interest here is that there are some newbie that can panic even when they used some percentage of their discretionary income to invest in Bitcoin and seeing the huge decline of the market,  what I am saying is that, they should not rush things but rather invest gradually and gain perseverance, resilience mindset etc Incase this occurs.

In investing, mental preparation and financial capacity to withstand adverse market conditions are important. A new investor may have more surplus money in his hands than an experienced investor. But that does not mean that he is ready to take more risks.
An experienced investor has already experienced various ups and downs in the market and long periods of price decline. As a result, he can remain relatively calm when market volatility occurs. He can stick to his long-term plan. A new investor may panic when he sees the value of his investment decrease by 20–30 percent for the first time. Even if he invests a very small part of his surplus income, he can still make the wrong decision due to lack of experience.

There is no need to invest a large sum of money in the beginning. You should start with a small amount and gradually become familiar with the fluctuations of the market. Collecting regularly through the DCA method gradually builds the habit of investing and also provides an opportunity to understand your own mental reaction to different market situations.

[sotelorene]

Falling market should be an added advantage to a long term investor to seize that very opportunity and stack more bitcoin at such a reduced price to build up his portfolio rather than making him uncomfortable. For me, I sincerely think that it’s only when someone is in for making quick gains that’s when a drop in price will get them uncomfortable or maybe instead of them  using their discretionary income after sorting out basic necessities to invest , they are investing with the amount they can’t afford to lose or the one they might be needing soon.

You are absolutely correct and it is only investors with clear vision and goal will be able to understand this and capitalized on it while those who don't have a target and long term vision will be wallowing in regrets and panicking. Sometimes I wonder if people know that the market is never meant to move or go in single or particular direction forever no, so we should not be running around and be uncomfortable when market is doing its thing because it will later continue the upward movement and as an investor, how long it will take for this to happen should ulter your vision or goal.

[JayJuanGee]

[edited out]

I think a newbie being aggressive isn’t a case of emotional thing but how much discretionary income they have at the end of the month, and how much can they be Able to allocate to buying of Bitcoin from their discretionary income without affecting their basic needs and also their emotions.

Your description of aggressiveness is a bit confusing @Cyber_warrior - since aggressiveness is really a description of relativism within the amount of discretionary income that a person has rather than the size of the income overall.

When we are investing, we are investing from whatever is left of the discretionary income, whether that is $10, $100, $1,000 or some other amount.

So when we talk about aggressiveness we are talking about how much we are investing within our discretionary income options rather than comparing different amounts that might be available.  Once the basic expenses are expenses, then it does not matter so much about the amount of discretionary funds available, since your discretionary funds are what they are, and each of us work within whatever discretionary funds that we happen to have available, whether we are investing on a weekly basis or some other time period. Of course, a lot of us like to also refer to monthly budgets since several of the basic expenses that we have might be billed on a monthly basis, so it makes logical sense to think about our budget in monthly terms even if we might also strive to make bitcoin purchases every week.

Many of us know that we can also make efforts to increase our discretionary income by increasing our income and/or cutting our expenses, so surely there can be empowerment in increasing our discretionary income, even though at the same time, when we are tending to talk about whimpiness, aggressiveness or variations in between, it seems to be conceptually more clear to be talking about levels of aggressiveness within the framing of the discretionary funds that we happen to have for that week or month rather than muddying the waters with theoretical ideas of increasing or decreasing our discretionary funds (even though we know that every month our discretionary funds available will likely differ and even over the passage of time, it is likely that we could have considerable changes in our discretionary funds, whether by purposeful efforts or just by changes in the macro circumstances related to income/expenses).

Let's take the guy who might have $300 in discretionary funds each week, and so maybe as a default we might consider him allocating $100 for investing, $100 for savings and $100 for discretionary consumption.  And more or less aggressiveness in investing would be allocating more or less of that total $300 towards investing rather than either of the other categories.  It does not make a whole hell of a lot of sense to compare him with guys who have higher or lower discretionary funds and to proclaim that his abilities to be aggressive are affected by the level of discretionary funds rather than his aggressiveness choices within what amounts of discretionary funds that he happens to have available each week.  Sure he might have to get over certain quantity of discretionary funds (let's say, for example) $20 per week, before it even makes sense for him to allocate any money towards investing (based on low levels of discretionary funds causing him uncertainties about if he has enough to allocate some or all of it towards bitcoin - while we also know at the same time, if the guys happens to have strong back up funds, then he has a cash cushion that allows him to be more aggressive in his investing as compared with some one who does not have strong back up funds.  

So the choice to invest aggressively has quite a bit of latitude within the amount of discretionary funds that are available each week. The amount of discretionary funds that are available each week show how much funds are available for guys to invest each week, even though guys ultimately choose how aggressive that they want to be in their weekly bitcoin allocations.

You could choose to buy aggressive Without having that discretionary income or you may even have but can’t afford to lose such discretionary income on buying aggressively.

This statement is really confusing @Cyber_warrior.  Generally the amount that a person perceives that they can afford to lose is a subcategory of discretionary income, and so there tends to be both a physical financial limitation that is based on a need to allocate some funds to each category of invest, save and/or discretionarily consume, yet there is also a psychological limitation that is going to vary from person to person.. so even if we take the hypothetical person with $300 per week that we mentioned above, and if we suggest maybe a default amount would be to divide $100 to each of the categories, so the $100 per week shows a physical financial practicality for investing into bitcoin that anyone objectively should be able to accommodate, yet subjectively (psychologically) each guy might choose to draw the lines differently, and we cannot command another guy in regards to how much of his $300 per week amount that he could or should allocate to bitcoin and how much of it he can "afford to lose" on a psychological level.

Some guys might consider that as long as all of their basic expenses are accounted for and they have a sufficient amount of back up funds, then they can put nearly 100% of their weekly discretionary income into bitcoin without feeling any financial and/or psychological attachment to the money.  Other guys might not feel good putting very much money into bitcoin and they either want to discretionarily consume as their money is coming in and/or they would rather keep money in cash so that they can spend it whenever they feel like it, and so there can be guys who are extreme in each direction, even though several of us, including yours truly try to ongoingly suggest some level of allocation of discretionary funds to each of the three categories and attempting to be reasonable about our allocations to each of the three categories, yet even the idea of "reasonable" differs from person to person, and each of us make our choices about what we believe to be reasonable, and the actions based on our choices have consequences that we will likely not be able to change after the passage of 4-10 years or longer and we had allocated aggressively, whimpily or some level in the middle.

Sometimes we are left with choice of sharing our discretionary income into other stuffs, like building emergency funds, reserve funds etc. such person can’t go into aggressive buying or over aggressive buying because it will affect the other things the discretionary income can do.

Don't forget to mention discretionary consumption in terms of the areas in which each of us chooses to allocate our discretionary income.  Aggressiveness or not is still within the limits of our discretionary funds and the fact that we have choices within our discretionary funds does not mean that we "can't" aggressively invest, yet ongoingly we are choosing how much money to put into each of the categories of our discretionary spending, even if you are proclaiming that we both have a choice and don't have a choice, we have abilities to categorize our various expenses in practical ways that both show our choice but also show us that some of our choices will have consequences, even though we still have choices and sometimes we might not know the ramifications of our choices right away.  

Let's say for example we are considering moving closer to our work location, since that will save us transportation expenses and also save us commuting time, on a daily basis.  So we are looking at various housing options..  For sake of ease of our examples, let's say that we are renting (rather than buying), and so when we are looking at our housing options, there are variations in the kind of housing, variation in the lease terms (deposit, what is covered, length of lease), variation in the distance from work, variation in the neighborhood, variation in the space inside the house including number of bedrooms, number of bathrooms and other amenities, and other variations.  So even though once we have committed to the housing, then the monthly costs become part of basic costs, yet there are also times in which we can upgrade or downgrade our basic costs.

There are likely less abilities to adjust basic costs (expenses) as compared with discretionary expenses, and so there can be value in thinking about our expenses and/or rethinking about our expenses in terms of how much choice that we have, and we might ONLY be misleading ourselves in terms of times that we might miscategorize the extent of our choice, and even in the example of our having to spend money to go to our sister's birthday party, and most likely those expenses are discretionary expenses since we will not live or die upon our participating in our sister's birthday party, yet if we end up not attending, we could potentially experience negative social and perhaps even negative financial ramifications that might not show themselves for weeks, months or even years.

Part of my point is to show that guys sometimes categorize their expenses in the wrong kinds of ways, and so they end up presenting their abilities to choose in confusing ways, and even describing the difference between aggressive and overaggressive can be misleading, since aggressive can be healthy up to a point, and we might not even realize when we had crossed over into overaggressive territories until we end up suffering negative ramifications that we had not necessarily realized at an earlier point in time.

I think a newbie being aggressive isn’t a case of emotional thing but how much discretionary income they have at the end of the month, and how much can they be Able to allocate to buying of Bitcoin from their discretionary income without affecting their basic needs and also their emotions. You could choose to buy aggressive Without having that discretionary income or you may even have but can’t afford to lose such discretionary income on buying aggressively.

Sometimes we are left with choice of sharing our discretionary income into other stuffs, like building emergency funds, reserve funds etc. such person can’t go into aggressive buying or over aggressive buying because it will affect the other things the discretionary income can do.

It's not a good investment practice to buy bitcoin over aggressively regardless the size of your discretionary income because when you buy over aggressively, it means that you are buying beyond your discretionary income and that's the same thing as gambling because you will definitely sell those bitcoin when you needs arises at a lower price if the price of bitcoin is below your entry point.

Guys can invest overaggressively in bitcoin without going over their discretionary income.  Sure, going over your discretionary income is a more obvious example of overaggressiveness, but the level of investment does not have to go that far before the bitcoin investor ends up investing in bitcoin overaggressively.

I know that some of the ideas of how much to invest in bitcoin without overdoing it are subjective and even difficult to identify from the outside, and even the idea of investing "no more than you can afford to lose" may well end up having physical financial and/or merely just psychological ramifications.

If guys had ended up investing more than they can afford to lose, then they can end up having financial and/or psychological ramifications at some point later down the road, so even though guys might be able to realize when they had gone too far at some later point, they might not realize that they had gone too far at the time that they make certain allocation choices.

You don't need to buy aggressively when you don't know how to do it so that you don't over do it. Buying aggressively is based on your financial situation playing around you at that moment and it's easy for someone with a well organized financial system and his backup funds are already in place.

It seems that good judgement would result in guys erroring on the side of conservative investing (or even a bit of whimpiness) until they get used to how their investing into bitcoin (and setting aside funds for the buying of bitcoin) affects their available cash until the next time that they get paid, and even that there can be variations in cashflow that is not really recognized until after several weeks or even several months of buying bitcoin, and there may end up being some realization that the setting aside of money to put into bitcoin has a cumulative affect that had not been noticed until quite later down the road (such as the several weeks to several months of doing it on a regular and/or consistent basis).

[Baki202]

I think an investor should buy in excess only when his emergency fund is adequate. And his discretionary income is high. If he has any of these less then he does not need to buy investments in an aggressive manner, if someone buys in excess and because of this if he has to get involved in any kind of loan then he will not be able to go far with his investment and at some point he may have to sell his investment due to pressure. So an investor should always use his own judgment properly and then develop an aggressive attitude in investing

Buying in excess makes more sense because that is what the dream is for every holder. After all, when you buy your first bitcoin, you will want to buy more, and that is where DCA comes in, and emergency comes in because when you don't have a place for those things and when you have a very high discretionary income, it's going to be in your favor. And if you're not using your discretionary income, I won't advise you to take any form of loan to invest, and that is why it is better to make use of your little income.

And what people need to understand is that there is no need for pressure, so there is no need for pressure, because when you put too much pressure on yourself, then you start doing things that you are not supposed to do your self over it is better to take your time and no matter how little you can start.

[Y3shot]

Yea, we don't invest with your emergency funds, not at all. If we do that, we are eventually putting our investment to a high degree of risk which can affect us and make us lose our investments to emergencies that we can't handle. The only part of our back up funds that is flexible and that can be used to buy Bitcoin in some situations are our reserved funds. However, if an investor have well established his emergency funds, then it is only wise that he puts lot more of his discretionary into buying BTC weekly or monthly depending on his cash flow, rather than keep stocking up emergency funds.

When an emergency fund is invested, it simply means there is no more emergency fund that is set aside, and all the money has been put into bitcoin investment. One thing about bitcoin investment is that if it is not being managed very well, there is always a problem in figuring out your income. Let there be money for investing, and let there be money also for emergencies.

If this is not done and an emergency happens, you would have no option but to sell your bitcoin investment, and this is why an emergency fund needs to be considered in bitcoin.

[ejikeme24]

I think an investor should buy in excess only when his emergency fund is adequate. And his discretionary income is high. If he has any of these less then he does not need to buy investments in an aggressive manner, if someone buys in excess and because of this if he has to get involved in any kind of loan then he will not be able to go far with his investment and at some point he may have to sell his investment due to pressure. So an investor should always use his own judgment properly and then develop an aggressive attitude in investing

That means you're indirectly saying that our emergency funds should be built to some extent before we can kick start with Bitcoin investment?

 Although I see reasons in what you're saying but you don't necessarily need to wait for your emergency funds to get to a bigger level before you can accumulate enough Bitcoin because doing that would make you waste a lot of time at the same time missing a lot of buying opportunity.  However, this thing you said here is the reason why it is advised to build our Bitcoin portfolio along side our emergency funds, and even though we go with this method still our Bitcoin investment will be much  bigger than our emergency funds due to the volatile nature of Bitcoin because the value can increase at anytime. as for the  emergency funds, since our emergency funds is been hold in Fiat the price would remain stagnant, and aside from the volatility of Bitcoin sometimes we might even decide to be more aggressive in our accumulation journey and this would make our Bitcoin portfolio to grow bigger than our emergency funds. so the best way to go about it is to build our emergency funds alongside our Bitcoin investment but we should not anticipate the both funds to be equal.

[JayJuanGee]

He didn't mean to say that investing aggressively with an emergency fund. He basically meant that if the emergency fund is full and if there is an emergency fund that can last for 3 months after losing a job or losing a source of income, then a person can invest aggressively, TeeTeen wanted to understand. If a person's emergency fund is full, then the money allocated for that emergency fund can be invested in Bitcoin.

Each person needs to be aggressive depending on their financial situation. A person can continue to buy aggressively from time to time depending on their financial situation, but that person needs to be careful not to become too aggressive. Being aggressive is sustainable but being overly aggressive is not sustainable

Sometimes, I think after understanding this there are people who already have more emergency funds than they want, so they wonder whether some of this emergency fund should be used for investments. When discussing matters related to emergency funds, the parties involved ask for advice to avoid making mistakes even though their emergency fund already exceeds capacity and is sufficient for the next few months.

I don't think there's anything wrong with someone with an emergency fund making aggressive purchases, but it shouldn't be used entirely. Emergency funds shouldn't be depleted. When a pinch hits, having these funds can change a situation from a pinch to a complete meltdown. That's why you shouldn't use the entire amount. Even if you do buy Bitcoin with your emergency fund, it's best to set aside a small amount to support you for the next few months while you build up your emergency fund.

There's nothing wrong with aggressive purchases. They're willing to do so because they realize they can afford it with their current financial resources. Therefore, not doing so could be a mistake, especially during times of market decline. It can be advantageous to make aggressive purchases. Once they have a profit from this, they'll be able to continue making purchases.

Yes.  Part of the problem when people refer to all of their back up funds as emergency funds is that they are counting both emergency funds and reserve funds as if they were both emergency funds.

So it can help to realize which funds are reserve funds and which funds are emergency funds, since emergency funds would likely be an amount that you want to try to keep no matter what and to only use them when absolutely needed.

Of course, the reality is that guys are likely going to have some flexibility in parts of their back up funds, and that portion is reserve funds and not emergency funds, and so the longer a person is investing in bitcoin, then the more likely he is building up his bitcoin holdings and his back up funds at the same time.   And, while he is building up such back up funds he may have some ideas in his head about which portions are flexible and which portions have to be held back only for more extreme justifications to use them.. and of course, the more that he builds up such back up funds, then the more comfortable that he will be, and I personally tend to suggest that the larger the bitcoin holdings then the more justification to allow a higher build up of back up funds, and so it may well be the case that guys will ongoingly be building up their back up funds, but then from time to time they are going to tap into their back up funds and have to build them back up to where they were, and each person is finding a balance that they believe to make sense based on their own income and/or expenses situation.

[drangos]

Being a new investor and investing beyond your means should be viewed differently. Let's say two people start buying Bitcoin at the same time. The first of them may have a large amount of discretionary income every month after deducting all necessary expenses. But the second may have a small amount of discretionary income after meeting necessary expenses. Here, if the first person invests a large part of his discretionary income in Bitcoin, then his decision cannot be called wrong just because he is new. Because in addition to how much he is investing, you have to look at how much he has the ability to invest. I agree that many times, even if you invest within your means, you can feel uncomfortable when the market price falls. But that possibility is not limited to beginners. Experienced people can also be worried about their decisions.

I get your point and I know everyone doesn't have the same capacity when it comes to discretionary income as a matter of fact some newbie may have a bigger discretionary income or more capacity than someone who has been into Bitcoin investment for some period of time but that doesn't make them equal when it comes to handling situation. The  person who has been in for some period of time has seen a lot of things that a newbie hasn't so the point of interest here is that there are some newbie that can panic even when they used some percentage of their discretionary income to invest in Bitcoin and seeing the huge decline of the market,  what I am saying is that, they should not rush things but rather invest gradually and gain perseverance, resilience mindset etc Incase this occurs.

In investing, mental preparation and financial capacity to withstand adverse market conditions are important. A new investor may have more surplus money in his hands than an experienced investor. But that does not mean that he is ready to take more risks.
An experienced investor has already experienced various ups and downs in the market and long periods of price decline. As a result, he can remain relatively calm when market volatility occurs. He can stick to his long-term plan. A new investor may panic when he sees the value of his investment decrease by 20–30 percent for the first time. Even if he invests a very small part of his surplus income, he can still make the wrong decision due to lack of experience.

There is no need to invest a large sum of money in the beginning. You should start with a small amount and gradually become familiar with the fluctuations of the market. Collecting regularly through the DCA method gradually builds the habit of investing and also provides an opportunity to understand your own mental reaction to different market situations.

Experience is good for having to deal with volatility. But it doesn't make for better decisions. Even some long term investors can panic in big crashes. But there's discipline to be learned even by newcomers. If they know what they're getting into. An important lesson for all new traders is that DCA does not remove risk. It merely makes buying over time. Even a small regular acquisition can be an issue if a person is putting money into objectives that they could require for emergencies or day to day living. It's important to ask yourself if the original. Investment plan still makes sense before making a buy or sell decision or if you are making the decision based on emotion.

[Dxdiax26]

~Snip~

Sometimes, I think after understanding this there are people who already have more emergency funds than they want, so they wonder whether some of this emergency fund should be used for investments. When discussing matters related to emergency funds, the parties involved ask for advice to avoid making mistakes even though their emergency fund already exceeds capacity and is sufficient for the next few months.

I don't think there's anything wrong with someone with an emergency fund making aggressive purchases, but it shouldn't be used entirely. Emergency funds shouldn't be depleted. When a pinch hits, having these funds can change a situation from a pinch to a complete meltdown. That's why you shouldn't use the entire amount. Even if you do buy Bitcoin with your emergency fund, it's best to set aside a small amount to support you for the next few months while you build up your emergency fund.

There's nothing wrong with aggressive purchases. They're willing to do so because they realize they can afford it with their current financial resources. Therefore, not doing so could be a mistake, especially during times of market decline. It can be advantageous to make aggressive purchases. Once they have a profit from this, they'll be able to continue making purchases.

Yes.  Part of the problem when people refer to all of their back up funds as emergency funds is that they are counting both emergency funds and reserve funds as if they were both emergency funds.

So it can help to realize which funds are reserve funds and which funds are emergency funds, since emergency funds would likely be an amount that you want to try to keep no matter what and to only use them when absolutely needed.

Of course, the reality is that guys are likely going to have some flexibility in parts of their back up funds, and that portion is reserve funds and not emergency funds, and so the longer a person is investing in bitcoin, then the more likely he is building up his bitcoin holdings and his back up funds at the same time.   And, while he is building up such back up funds he may have some ideas in his head about which portions are flexible and which portions have to be held back only for more extreme justifications to use them.. and of course, the more that he builds up such back up funds, then the more comfortable that he will be, and I personally tend to suggest that the larger the bitcoin holdings then the more justification to allow a higher build up of back up funds, and so it may well be the case that guys will ongoingly be building up their back up funds, but then from time to time they are going to tap into their back up funds and have to build them back up to where they were, and each person is finding a balance that they believe to make sense based on their own income and/or expenses situation.

However, there are still many misunderstandings, sir. Only certain groups can do what we're discussing because they don't understand the difference between reserve funds and emergency funds. This lack of understanding leads them to mix the two funds together.

This is a bad step for those facing difficult times in investing, but the investments they make by buying are difficult to maintain because there is no one to save their investments. That's why an emergency fund is necessary. An emergency fund is mandatory for those who invest, even if it's not needed immediately, but when it suddenly happens, that's where we need to provide an emergency fund.

[MissNonFall9]

Nobody is saying a newbie “must” be aggressive with their accumulation, but if their discretionary income is big enough to accommodate aggressive buying, then why not? Even though we always advise folks to start small, understand how volatility works then increase amount later. Not everyone starting out might want to follow that same pattern, especially if they’re financially stable. That is why you can’t just assume straight up that a newbie will panick and sell his bitcoin if he starts big.

There is nothing wrong with starting to invest in Bitcoin with a small amount, especially for newcomers. Often, beginners wait for the right knowledge or the perfect moment to invest. however, this mindset frequently causes them to miss out on many investment opportunities. Therefore it is advisable for them to begin even if on a small scale rather than waiting for a specific time or opportunity. On the other hand- those who approach Bitcoin with a long term investment horizon and who has sufficient discretionary income and an emergency fund, may choose to invest more aggressively.

[Agbam]

I think an investor should buy in excess only when his emergency fund is adequate. And his discretionary income is high. If he has any of these less then he does not need to buy investments in an aggressive manner, if someone buys in excess and because of this if he has to get involved in any kind of loan then he will not be able to go far with his investment and at some point he may have to sell his investment due to pressure. So an investor should always use his own judgment properly and then develop an aggressive attitude in investing

Buying in excess makes more sense because that is what the dream is for every holder. After all, when you buy your first bitcoin, you will want to buy more, and that is where DCA comes in, and emergency comes in because when you don't have a place for those things and when you have a very high discretionary income, it's going to be in your favor. And if you're not using your discretionary income, I won't advise you to take any form of loan to invest, and that is why it is better to make use of your little income.

And what people need to understand is that there is no need for pressure, so there is no need for pressure, because when you put too much pressure on yourself, then you start doing things that you are not supposed to do your self over it is better to take your time and no matter how little you can start.

I don’t understand what you guys are talking about, what do you mean by buying bitcoin in excess? Can you buy bitcoin in excess? Are you talking about holding an excess of bitcoin, that’s over accumulation or just buying aggressively?.

I think you guys should use the correct terminology or words to describe what you’re talking about. Buying bitcoin aggressively is good but it’s not what every investor can do at all times. It depends on how they decide to allocate their discretionary income. So it’s relative to every investor and not a compulsory or mandatory approach.

[BITBI-4]

Nobody is saying a newbie “must” be aggressive with their accumulation, but if their discretionary income is big enough to accommodate aggressive buying, then why not? Even though we always advise folks to start small, understand how volatility works then increase amount later. Not everyone starting out might want to follow that same pattern, especially if they’re financially stable. That is why you can’t just assume straight up that a newbie will panick and sell his bitcoin if he starts big.

There is nothing wrong with starting to invest in Bitcoin with a small amount, especially for newcomers. Often, beginners wait for the right knowledge or the perfect moment to invest. however, this mindset frequently causes them to miss out on many investment opportunities. Therefore it is advisable for them to begin even if on a small scale rather than waiting for a specific time or opportunity. On the other hand- those who approach Bitcoin with a long term investment horizon and who has sufficient discretionary income and an emergency fund, may choose to invest more aggressively.

There is no need for perfect timing or the right knowledge to start investing. Sometimes these are just excuses for not starting investing. Having your own disposable income is basically enough to start investing. A new investor can start with a small amount of disposable income and gradually increase his knowledge and experience about Bitcoin along with regular investments. Because it is not important to know everything at the beginning or to be able to determine the right time of the market. Rather it is more important to invest consistently according to your ability.

As opposed to those who have sufficient disposable income and emergency funds can accumulate a relatively large amount of Bitcoin according to their financial capacity and risk taking ability. Even so investing more money does not mean that the investment decision will be good. The important thing is to decide the amount and method of investment according to your ability so that it is possible to maintain that plan in the long term without any financial pressure.

[KiaKia]

I think an investor should buy in excess only when his emergency fund is adequate. And his discretionary income is high. If he has any of these less then he does not need to buy investments in an aggressive manner, if someone buys in excess and because of this if he has to get involved in any kind of loan then he will not be able to go far with his investment and at some point he may have to sell his investment due to pressure. So an investor should always use his own judgment properly and then develop an aggressive attitude in investing

Buying in excess makes more sense because that is what the dream is for every holder. After all, when you buy your first bitcoin, you will want to buy more, and that is where DCA comes in, and emergency comes in because when you don't have a place for those things and when you have a very high discretionary income, it's going to be in your favor. And if you're not using your discretionary income, I won't advise you to take any form of loan to invest, and that is why it is better to make use of your little income.

And what people need to understand is that there is no need for pressure, so there is no need for pressure, because when you put too much pressure on yourself, then you start doing things that you are not supposed to do your self over it is better to take your time and no matter how little you can start.

I don’t understand what you guys are talking about, what do you mean by buying bitcoin in excess? Can you buy bitcoin in excess? Are you talking about holding an excess of bitcoin, that’s over accumulation or just buying aggressively?.

I think you guys should use the correct terminology or words to describe what you’re talking about. Buying bitcoin aggressively is good but it’s not what every investor can do at all times. It depends on how they decide to allocate their discretionary income. So it’s relative to every investor and not a compulsory or mandatory approach.

Since the message talked about talking loan to buy Bitcoin I am guessing that what it means is going on into Bitcoin at once, like finding a bigger amount of money either from your bank or loan then putting all into Bitcoin at once.

Bitcoin always create alot of opportunities in a bear market, when a dip happens today it's never going to be the last one, so if anyone have a large amount of money or lets say I have $1000 it will be a smart move if I use $200 every week to buy Bitcoin.

What this does is getting your hands on more sats compare to someone who just rushed to buy all Bitcoin that they can in one go, dropping $200 every week to get to $1000 is a good DCA strategy than using all $1000 to buy Bitcoin at once.

[Silikiem]

Experience is good for having to deal with volatility. But it doesn't make for better decisions. Even some long term investors can panic in big crashes. But there's discipline to be learned even by newcomers. If they know what they're getting into. An important lesson for all new traders is that DCA does not remove risk. It merely makes buying over time. Even a small regular acquisition can be an issue if a person is putting money into objectives that they could require for emergencies or day to day living. It's important to ask yourself if the original. Investment plan still makes sense before making a buy or sell decision or if you are making the decision based on emotion.

I don’t know why you should be talking about trading here instead of investing and what relationship do a trader have with DCAing. I don’t think traders have anything to do with using the DCA strategy because they’re only in for quick profit. Investors make use of the DCA strategy and that’s because they are focusing on a regular and long term accumulation of bitcoin and hold for their long term gains. DCA is widely regarded as the strategy for long term bitcoin investment and not traders who are in for targeting quick profit or getting rich fast. For sure, the DCA doesn’t eliminate risk totally but it helps to mitigate the impact of the risk of lose associated with bitcoin volatility for a long term investor.

[Son $f Grace]

One thing we are mixing up is emergency fund and reserve fund they are not same.
Emergency is the money you won’t touch unless a problem come. Then reserve fund this the flexible one you can use to buy dip little by little if you want to.

So there is no need for emergency funds to fill up before deciding to start. With time small small you build both together.

And you shouldn’t in any way go get loan to buy Bitcoin because you want to buy aggressive it a pressure it going to force you to sell when price dips.

[Derekfunds]

There is nothing wrong with starting to invest in Bitcoin with a small amount, especially for newcomers. Often, beginners wait for the right knowledge or the perfect moment to invest. however, this mindset frequently causes them to miss out on many investment opportunities. Therefore it is advisable for them to begin even if on a small scale rather than waiting for a specific time or opportunity. On the other hand- those who approach Bitcoin with a long term investment horizon and who has sufficient discretionary income and an emergency fund, may choose to invest more aggressively.

For your Information what someone needs to start Bitcoin investment is the basic knowledge and their discretionary income anything else can be acquire later while ongoing investing in Bitcoin. And yes, there is no specific amount that is needed for someone to start meaning, one can start regardless of how small their discretionary income is but what is most important after starting is the power and the ability to be consistent, we don't have anything like perfect moment in Bitcoin investment because any moment is perfect for someone who has a discrestionary income with a long term mindset.

[Cgrexp]

There is nothing wrong with starting to invest in Bitcoin with a small amount, especially for newcomers. Often, beginners wait for the right knowledge or the perfect moment to invest. however, this mindset frequently causes them to miss out on many investment opportunities. Therefore it is advisable for them to begin even if on a small scale rather than waiting for a specific time or opportunity. On the other hand- those who approach Bitcoin with a long term investment horizon and who has sufficient discretionary income and an emergency fund, may choose to invest more aggressively.

For your Information what someone needs to start Bitcoin investment is the basic knowledge and their discretionary income anything else can be acquire later while ongoing investing in Bitcoin. And yes, there is no specific amount that is needed for someone to start meaning, one can start regardless of how small their discretionary income is but what is most important after starting is the power and the ability to be consistent, we don't have anything like perfect moment in Bitcoin investment because any moment is perfect for someone who has a discrestionary income with a long term mindset.

You don't need a large amount of capital to start investing in Bitcoin. Why do you want to invest in the long term and with what amount are you investing? If you have a basic idea about these things, you can start investing even with a small amount of money. After starting to invest, experience and knowledge related to security can be gradually increased. You should not invest all of your surplus income in Bitcoin. You should use the money that you can set aside for investment, considering your necessary expenses and future financial responsibilities. The Bitcoin market is very volatile. Even if it is a long-term investment, there is no way to avoid the risk of temporary large price drops. Finally, it is more important to have the necessary basic knowledge, financial capacity, and the mentality to follow the plan in the long term.

[JayJuanGee]

[edited out]

However, there are still many misunderstandings, sir. Only certain groups can do what we're discussing because they don't understand the difference between reserve funds and emergency funds. This lack of understanding leads them to mix the two funds together.

This is a bad step for those facing difficult times in investing, but the investments they make by buying are difficult to maintain because there is no one to save their investments. That's why an emergency fund is necessary. An emergency fund is mandatory for those who invest, even if it's not needed immediately, but when it suddenly happens, that's where we need to provide an emergency fund.

You make the process of building up back up funds and strengthening your cashflow management sound more dramatic than it needs to be - which is also part of the reason that I tend to talk about back up funds rather than emergency funds.

Guys do not even really need to know the terms in order to know the concepts of strengthening their cashflow management.  A basic concept tends to be that guys should build systems so that they are not running down the amount of cash that they have in reserves, and of course, when they are in their earliest of stages of building up their back up funds and their bitcoin holdings, there are going to be more likelihood that any fall in their income and/or increase in their expenses is going to cause them to have to tap into their back up funds and then to have to build it back up since they don't want to run out of back up funds and they don't want to tap into their bitcoin holdings at a time that is not of their choosing.

I would imagine that many people are already accustomed to maintaining some level of back up funds, even before they start getting involved in bitcoin.  A normal person might keep anywhere between 2 weeks and 6 weeks of cash (or cash equivalent) so that he does not run out of money between paychecks, and of course, if he has solid income and predictable expenses, then he likely has to keep lower levels of back up funds as compared with the guys who have less stable income/expenses. 

Yet, with bitcoin, if we are really trying to make sure that we are not tempted to tap into our bitcoin for 4-10 years or longer then we have to put systems in place so that we do not tap into our bitcoin and we are not tempted to tap into our bitcoin.   Those systems certainly should involve back up funds and probably even measuring so that we are ongoingly buying bitcoin, so that it does not make any sense to stop buying bitcoin or even to sell bitcoin, since our habit and practice is ongoingly buying bitcoin for 4-10 years or longer.

It seems to me that the larger we build our bitcoin holdings, then the more tempting it may become to tap into those holdings at a time that is not completely of our choosing, and perhaps our ongoing building of our bitcoin holdings by ongoingly buying it for 4-10 years or longer and also our ongoingly building up and/or maintaining sufficient back up funds will provide us ongoing reinforcement to remind us to not tap into our bitcoin holdings... yet we have to maintaining discipline and awareness, too..   Of course, we have choice about how to use whatever resources we have available, and if more and more value is available we can be tempted to tap into it, even if it might not be in our best interest to engage in such tapping, yet we remain in charge of when and if to tap into our bitcoin, which we may or may not end up regretting such tapping into (if we end up doing it) at some later point if we are ongoingly building our bitcoin, yet if we tap into our bitcoin too much too early we might either never reach our accumulation goal or we might be greatly delayed in reaching our our accumulation goal.

[Gragebox]

There is nothing wrong with starting to invest in Bitcoin with a small amount, especially for newcomers. Often, beginners wait for the right knowledge or the perfect moment to invest. however, this mindset frequently causes them to miss out on many investment opportunities. Therefore it is advisable for them to begin even if on a small scale rather than waiting for a specific time or opportunity. On the other hand- those who approach Bitcoin with a long term investment horizon and who has sufficient discretionary income and an emergency fund, may choose to invest more aggressively.

For your Information what someone needs to start Bitcoin investment is the basic knowledge and their discretionary income anything else can be acquire later while ongoing investing in Bitcoin. And yes, there is no specific amount that is needed for someone to start meaning, one can start regardless of how small their discretionary income is but what is most important after starting is the power and the ability to be consistent, we don't have anything like perfect moment in Bitcoin investment because any moment is perfect for someone who has a discrestionary income with a long term mindset.

You don't need a large amount of capital to start investing in Bitcoin. Why do you want to invest in the long term and with what amount are you investing? If you have a basic idea about these things, you can start investing even with a small amount of money. After starting to invest, experience and knowledge related to security can be gradually increased. You should not invest all of your surplus income in Bitcoin. You should use the money that you can set aside for investment, considering your necessary expenses and future financial responsibilities. The Bitcoin market is very volatile. Even if it is a long-term investment, there is no way to avoid the risk of temporary large price drops. Finally, it is more important to have the necessary basic knowledge, financial capacity, and the mentality to follow the plan in the long term.

In my opinion, understanding why you are investing is as crucial as how much you are investing. It is probably wise to go in with a small amount to experiment with before risking your own resources. But, the amateur investor must not equate less with less risk. Bitcoin can still sink a lot.

The other consideration would be a steady investment strategy without being so strict that it causes financial discomfort. The investor should have the option to increase their contribution at certain periods due to their circumstances. Extra savings for unexpected costs and accounting for that money as separate to one's expenses.

In the end, long-term investing doesn't require some big nest egg or windfall: it depends on the size of your personal nest, how prudently you treat the money, your familiarity with market risk, and whether you have an expectation of return that isn't too optimistic.

[donyjon]

Falling market should be an added advantage to a long term investor to seize that very opportunity and stack more bitcoin at such a reduced price to build up his portfolio rather than making him uncomfortable. For me, I sincerely think that it’s only when someone is in for making quick gains that’s when a drop in price will get them uncomfortable or maybe instead of them  using their discretionary income after sorting out basic necessities to invest , they are investing with the amount they can’t afford to lose or the one they might be needing soon.

You are absolutely correct and it is only investors with clear vision and goal will be able to understand this and capitalized on it while those who don't have a target and long term vision will be wallowing in regrets and panicking. Sometimes I wonder if people know that the market is never meant to move or go in single or particular direction forever no, so we should not be running around and be uncomfortable when market is doing its thing because it will later continue the upward movement and as an investor, how long it will take for this to happen should ulter your vision or goal.

However, having a goal is very important, especially when it comes to such markets as cryptocurrencies. In fact, many people get disappointed when the prices fall, but corrections are quite a natural process for any finance market. It is not reasonable to expect that the prices for any cryptocurrency, including Bitcoin, will keep going up.

First of all, what I have understood is that patience is not enough to invest successfully. The right strategy and risk management is necessary here. A long-term perspective may prevent one from making emotional decisions, but it is not supposed to ignore the current state of the market and invest into every asset. Some projects lose the fundamentals, and one has to understand when their original reason to invest is irrelevant.

From my own experience, I can say that successful investing is more about good preparation than about guessing the moment of market bottom or the exact recovery date. Having some reserves, reducing risks and investing only the money that one can afford to forget about may play an important role here.

Of course, uncertainty of the market cannot destroy an investment strategy, but it must force one to check the made decision rationally.