Does the DCA strategy inspire newbies to invest?

[Loyaltybro]

I think it is very important to have multiple sources of income to invest. Otherwise, the investment will eventually collapse.

[Patrol69]

I'm not comfortable with the term capital because if we look at the definition,it is not the same with discretional income.  your capital is money you can't afford to lose and by investing it in bitcoin you are gambling with your bitcoin investment. However using your capital instead of your discretionary income could tempt you to sell your bitcoin investment if the market is not favorable or going as planned. it is not a good idea to invest with your capital because you might not be able to hold for the long-term instead using your discretionary income is preferable since it is money you can afford to lose.

If someone don't have discretionary income then what should be the strategy in that case? You wait for the time till you have discretionary income available at your disposal or invest with whatever you can afford to invest in Bitcoin. In this case, its better not to wait for the availability of discretionary income rather start investing with whatever you can easily invest in Bitcoin. Meanwhile you must also try to generate discretionary income because that will help you in holding Bitcoin for longer duration. If we keep waiting for availability of sufficient money or discretionary income and not investing then we are only doing our loss because sooner you start better it is for you.

You seem to be mixing things up here because I don’t know which one you’re advising people to invest with. Are you advising we should invest in bitcoin with a discretionary income or whatever we want to invest with. It’s a little complicating as the statement doesn’t really look straight forward. Well, all I can say is that if anyone doesn’t have a discretionary income available then the person should stay away from investing in bitcoin. If an individual is not able to meet up with sorting out his basic financial needs or obligations then the person don’t necessarily need to hurry to invest in bitcoin because what is needed to invest In bitcoin is a discretionary income which is the money left with you after sorting out your Basic financial needs. You can’t be struggling with meeting your Basic financial needs and you’re rushing to invest in bitcoin, it will only end in selling back your bitcoin holding too early just so you can get money to settle your Basic needs and you know how volatile bitcoin is which means that you could be selling on a huge loss. To be able to invest and hodl bitcoin for your long term Goal without panicking to sell when there is a little downturn in the market then you should invest with a discretionary income. Remember the goal is to invest with not more than you can afford to lose, always invest with the money you won’t be needing anytime soon.

Although it is not necessary to know much about investing in a new situation, it is definitely necessary for the investor to know some basic things and if the investor invests according to the plan after knowing those basic things, then he will not feel the pressure of investing, as a result of which he will be able to continue this investment consistently. If a person advises someone that when starting a new situation, a person should start with what he has, that is, he should not worry about his income, or his expenses, or how much money he has left after all expenses, on the other hand, if a person advises a new investor that you should invest based on how much you are spending according to your income and how much money is left at the end of the month, in that case, I will definitely think that the second person's advice is correct. Because if we do not have discretionary income, then later on, the investment may be irregular or a decision may have to be made to sell the investment. I think it is better to invest a relatively small amount of money but suddenly selling the investment before the investment goal is not met is never good for investment.

I agree with your point that an investor needs discretionary income to make his investment consistent and long-term. When a person understands his discretionary income, he can decide for himself how much money he needs to invest regularly from this discretionary money and that investor will think at that moment that he needs to form an emergency fund from this discretionary income so that his investment continues and at the same time his investment remains safe.

Investors should always remember that after investing and while continuing to invest continuously, there will be a lot of volatility in the market, but you should always keep a cool head and be patient at the same time, trust in your investment, only then will the real goal of investment be fulfilled.

[Charcol]

I think it is very important to have multiple sources of income to invest. Otherwise, the investment will eventually collapse.

No, it is not necessary to have multiple sources of income before investing. It is certainly good to have multiple sources of income, but it is not realistic to call it necessary or to consider it as a mandatory condition. This can lead many new investors to get confused and delay investment by looking for multiple sources of income before investing. There are many people who make a living from their only source of income, and invest from their discretionary income. The main condition before investing may be whether a person is able to meet all their needs from their main source of income and generate discretionary income? Because discretionary money is needed for investment. When someone invests from discretionary money, that money is not needed in the long term. In this way, they can hold on to their investment for a long time. And in investing, it is more important to survive in the market in the long term.
 Therefore, the key is to understand how much risk we are able to invest in accordance with our financial situation. If someone has a fixed income and keeps his daily expenses and emergency savings in check and continues to invest in Bitcoin little by little, then there is no problem for him even if he does not have multiple sources of income.

[Tmoonz]

Yes, many people make such mistakes who buy Bitcoin aggressively and fail to hold it for a long time. They buy a large amount of Bitcoin with all their income, after a few days they should never invest in Bitcoin in such a way that they are in danger with their Bitcoin investment.

Anyone buying Bitcoin with all their income are nothing but gambling rather than investing, such person is gambling with their emotions and money and they will never have peace of mind, putting all your income is the craziest thing anyone can do because you will end up panic selling and in most cases with the price below your buying points, no one e should invest with all their income because there are other important needs which you have to take care and also emergency may as well happen, you can invest aggressively just within your own capacity and that is your own aggressive level after ensuring your basic needs are well taken care of.

[ultrloa]

Yes, many people make such mistakes who buy Bitcoin aggressively and fail to hold it for a long time. They buy a large amount of Bitcoin with all their income, after a few days they should never invest in Bitcoin in such a way that they are in danger with their Bitcoin investment.

Anyone buying Bitcoin with all their income are nothing but gambling rather than investing, such person is gambling with their emotions and money and they will never have peace of mind, putting all your income is the craziest thing anyone can do because you will end up panic selling and in most cases with the price below your buying points, no one e should invest with all their income because there are other important needs which you have to take care and also emergency may as well happen, you can invest aggressively just within your own capacity and that is your own aggressive level after ensuring your basic needs are well taken care of.

Agree with that, since they take to much risk by putting all of their income in Bitcoin,  they didn't have proper balance if they do that and the risk to lose is so high. its important to have emergency preparation and risk management so they can avoid doing such lame decision.

This is the perfect example on why discretionary funds is important, so that they can balance everything without hitting up their important needs. Also they provably could avoid taking wrong decision like selling when market dumps. So best to invest beyond their capacity and don't exceed on their supposed to be limit. Their greed will not result anything good and they won't get any peace of mind for going all in on Bitcoin.

[BluebloodCXVI]

I think it is very important to have multiple sources of income to invest. Otherwise, the investment will eventually collapse.

I’m afraid you might be complicating things for yourself if you have this type of mindset. You don’t need multiple sources of income before you can invest in bitcoin ,what you need is discretionary income and this comes from a person’s monetary inflow after necessary expenses have been sorted out. It’s as simple as that ,structurize your expenditure and know how to identify your discretionary income so that you can have control over where your finances go and not lose it all to blind spending .

[Abelly]

Getting a whole BTC depends on how much you are actually using to DCA and also if it is being done consistently. Someone who is buying bitcoin with $10 even if they are doing it consistently they may end up not accumulating a whole BTC.
The thought of using this period to accumulate full bitcoin is something that isn't realistic and it is not a good idea to put oneself into unnecessary pressure because you are planning to get 1 BTC this period which I doubt is even possible.

If you try to deposit 1 Bitcoin weekly with Bitcoin investment, then you must increase the investment amount. But you also have to keep in mind that if you observe DCA for five to ten years and deposit one Bitcoin for this period, then the price of Bitcoin will increase greatly later and you will also have to increase the investment amount. I think that the price of Bitcoin will be at least one million dollars ten years from now, according to this condition, you should increase the amount of Bitcoin investment, and the more the amount of discretionary income increases, the more Bitcoin you can collect.

The idea of ​​depositing 1 BTC Every month is actually very difficult because if the price of Bitcoin increases over time, the fiat investment Required to buy the same amount of BTC will increase much faster, so it is not a sustainable strategy for the Average investor. The main purpose is to invest a fixed amount of money regularly Not a fixed amount of BTC. This creates market fluctuations and reduces risk. But if you fix the target BTC amount, it becomes an increasing exposure strategy, not a DCA, which increases risk a lot. While a price prediction of $1 million in 10 years is attractive, it is not certain. Market cycles, regulation, macroeconomics, everything plays a big role here. So, making an investment plan based only on price predictions is risky.

[cxtreenal]

I think it is very important to have multiple sources of income to invest. Otherwise, the investment will eventually collapse.

Even if you have one source of income you can complete each cycle well. Along with financial preparation you need to be mentally prepared. If your source of income is not very strong or it is difficult to meet basic needs investing in Bitcoin is not a priority for you. What is important for you is to achieve your financial capacity and meet the basic needs of your family.

If the amount of discretionary income from one source of income is so small, such as $20-$50 per week, I would recommend at least starting Bitcoin accumulation this amount. The mental determination to accumulate Bitcoin for the long term will gradually push you towards alternative sources of income and you can gradually increase the amount of Bitcoin accumulated.

[Merit.s]

I think it is very important to have multiple sources of income to invest. Otherwise, the investment will eventually collapse.

With the high level of unemployment, it's difficult to get a multiple source of income for the poor and average. There are other ways of improving your income. You can go learn a course to add to your qualifications for income increase. Some persons with one means of income is financially stronger than some people with multiple sources of income.

This is why it's not necessary or important for anyone that wants to start his bitcoin investment to have a multiple source of income because he might not have till he gets old due to the lack of jobs. However, a brand new investor only needs his discretionary income in order to start his bitcoin investment. If your discretionary income is little or isn't stable, you need to look for means of increasing your discretionary income because you have an important need for it which is to put it into bitcoin investment consistently and persistently overtime.

Also inflation is on the rise overtime, if you don't look for means to increase your income, a time will come that your income wouldn't be able to meet up with your basic needs and monthly expenses which will definitely deprive you from investing in bitcoin at that time.

Your bitcoin investment wouldn't collapse because you only have one source of income, provided you did not sell those bitcoin you bought with your discretionary income. One source of income doesn't mean that the person discretionary income is very small. Some people has a big income and discretionary income from just one source of income.

[Kuchuku]

Yes, many people make such mistakes who buy Bitcoin aggressively and fail to hold it for a long time. They buy a large amount of Bitcoin with all their income, after a few days they should never invest in Bitcoin in such a way that they are in danger with their Bitcoin investment.

It is not bad to buy Bitcoin aggressively using discretionary income. However, if you buy Bitcoin outside of discretionary income, it can force you to sell it prematurely and those who invest in Bitcoin using all their income are foolish and have a high risk of loss. When investing, you should only invest within your means. When investing in Bitcoin, you should have a strong reserve fund so that you do not have to invest for any reason and can hold on to it.

[MusaPk]

You don't seem to understand what is discretionary income.

You cannot invest without discretionary income, since if you don't have discretionary income, you need the money for expenses.. and if you invest with money you need for expenses, then you are gambling.. not investing.

Even if a guy has discretionary funds, he has three choices regarding how to use such discretionary funds.  He can invest, save (backup funds) and/or discretionarily consume.  It is likely important that he allocates some of his discretionary funds to each category, yet since the funds are discretionary, that means he can do whatever he likes with such money.. but if he chooses a path of using his discretionary funds that is too extreme and/or failing/refusing to account for the other two categories, then he might end up not being able to sustain such a practice.. so he has to figure out a balance that is comfortable within his own financial/psychological circumstances.

That seems very logical. I agree.

If someone has discretionary income at his disposal then it will be good approach to maintain balance between three categories you mentioned. If someone is planning to invest in Bitcoin for long term then its possible only if he has enough money to meet his daily and emergency requirements. If you get too emotional towards Bitcoin investment and invest all in Bitcoin then if time comes when you are in dire need of money then you have no other option left but to sale you Bitcoins and long term investment won't be possible. We need to keep this thing in our mind.  

[Joy- maker]

I think it is very important to have multiple sources of income to invest. Otherwise, the investment will eventually collapse.

You are wrong, because there is no way your Bitcoin investment will collapse if you don't have multiple sources of income. Secondly you don't need have multiple sources of income before you can get started with Bitcoin, what you need to get started with Bitcoin is discretionary income money left after settling your basic needs and expenses either for the week or for the month. What is important is having a discretionary income to purchase Bitcoin regularly, not multiple sources of income. Because you can have multiple sources of income and still not have a discretionary income.