Been aware of the basic knowledge about Bitcoin investment is not a strategy but rather it is a thing someone must or should know before going into Bitcoin investment. There are 3 basic strategies that can be use in Bitcoin accumulation which are the buy Dip, lump sum and DCA ( dollar cost averaging) and among the three strategies the DCA method is most preferable because it can help an investor accumulate at different phase of the market without pressure using the discretionary income.
Basic knowledge is just the preliminary step newbies should adhere to for a start but not a strategy just as you have said, why do we call it basic, it is just the foundation,
Basic knowledge is likely just having common sense, which means that there is an ability to learn and perhaps a desire to build an investment in bitcoin (since we are in an investing topic) rather than gambling or losing money. In other words, there are no real basic knowledge that is required beyond common sense, and surely if we also know that there is a need to invest from discretionary funds, if a newbie is having trouble figuring out if they have discretionary funds, then they may well need to spend some time learning math and/or figuring out their budget before they start investing into bitcoin.
learning does not stop there but we have to start from somewhere to get to where we actually dreamt of being,
Sure. Newbies are starting investing into bitcoin from whereever they are at, and if they look at their income versus their expenses, and they calculate the extent to which they have any money saved up (that can serve as back up funds), they are likely going to be ongoingly learning as they go, including some of their earlier stages of figuring out from where they are going to start to source their coins (presuming that they had already figured out that they have discretionary funds). I would imagine that once a person starts buying something like bitcoin, there is going to be an ongoing learning process, whether they are going to be buying weekly or if they figure out some other timeline for their buys.. with a likely tentative plan to start out slow and to get used to buying bitcoin on a weekly basis or whatever might be their timeline for their buys.
as for the three investment strategies you listed, they all serve there purpose and all important but it all depends on how we apply them as investors, among the the three, there is only one that is very efficient and flexible which is the DCA strategy, this strategy is referred to Bitcoin investment made easy, once any investor can figure out their discreationary income and invest it with DCA method for instance daily, weekly and monthly, such investor is good to go.
Sure. DCA is a good place to start to adapt the amount to their discretionary income.. since they may well need to consider how much of their discretionary income they are going to dedicate to 1) buying bitcoin, 2) savings (back up funds) and 3) discretionary consumption. One of the benefits in starting slow is to get used to such a process, and of course, if a person has a lot of other things going on in their life, then they may well have to be even more conservative in their initial buy amounts until they are able to spend some time to get used to the various bitcoin investment and cashflow management matters that that they are adding to their weekly (or whatever basis) timeline in which they would be making their bitcoin buys.
I agree with you to say that guys can still start their bitcoin investment with zero back up funds rather they should not wait for a long time before building their back up funds, I started my bitcoin investment with zero back up funds and that is because my discretionary income was low so it won't be enough for me to build my back up funds and that of my bitcoin investment so I decided to focus on building my portfolio then after a short time I started building my back up funds, but there's nothing good as having a backup funds before getting started because for the fact that I started with zero back up funds doesn't mean other people can try it and it works because no one can predict when emergency will happen.
You cannot start with zero back up funds - since otherwise if you make a mistake that involves a basic and necessary expense needing to be paid prior to your next check coming in, then if having no money until your next paycheck you have to tap into your bitcoin . Maybe you should give an example of what you mean.. because you have to have enough to pay for your expenses otherwise you have to tap into your bitcoin?
Let's say, for example, a guy has an income of $500 every two weeks, and his basic expenses are $400, so that means that he has $100 in discretionary funds. If you use all of it to buy bitcoin, you have no money to cover any basic expenses that might come until your next pay in two weeks... You have to have some back up funds... so maybe you can figure out how to describe what you are talking about in regards to having no back up funds.
One solution for the $100 of discretionary funds every two weeks is to divide $33.33 in each category of 1) invest, 2) save(back up funds) and 3) discretionary consumption, so then after 1 year you would have had invested $866, saved $866 and discretionarily consumed $866... In that regard, you can build up both at the same time, even if you are poor, and if you are poor, you need the back up funds more than the rich people do... otherwise if you are acting sloppy and reckless, you have great odds of having fun staying poor.
Agree since its so risky to start without having a back up funds. They are so exposed with huge risk especially if there's sudden unexpected or emergency expenses came and all their money will go to Bitcoin then they might get force to sell all they have at not ideal times.
I was not even suggesting anything dramatic, but instead to consider that even in the worse case scenario, in which a guy has absolutely no back up funds, then he can still start out by dividing his discretionary funds into 3 parts.
Of course, this is assuming that the person has figured out that he has enough discretionary funds to get started, and in the example that I gave above that is $33.33 every two weeks.. Yet we can imagine circumstances in which a guy's income versus expenses are so far out of balance that he is not able to determine whether he has any discretionary funds, and so in that regard, we have to recognize that we cannot invest in bitcoin unless we are sure that we have discretionary funds, and then once we determine that we have discretionary fund, then at least we have an amount to work with, and in my above example, the discretionary funds amount ended up being $100 every two weeks. Sometimes guys might find that they have even smaller amounts, yet when they research into locations in which they can buy bitcoin, maybe they will find that it does not make sense to buy for small amounts (such as less than $30 at a time), so they may well have to get their dollar amount that is available for buying bitcoin up to at least $30 before they will be able to reasonably make their buys.. which might cause them to have some weeks (or every two weeks) that they are not able to buy until they are sure that they have $30 extra that they can put into it.
And, surely guys have to figure out the particulars of their exchanges to make sure that they are comfortable with the fees or the various other requirements, which also might include a decision to keep funds on an exchange wallet until it gets up to a certain amount (perhaps $300 to $500) before they move it to a private wallet (and they realize that they have to research into private wallets at a later time).
Much simple way which they can follow is to split their discretionary funds to three or maybe more depends on their capability then use it for their other spendings, savings and investments. If they can manage that so well, after a year they can built a more reliable or solid safety cushion together with their investment, while they are enjoying paying attention with other important matters. With that they can grow their investment steadily and avoid being so reckless.
That is exactly correct that if they are able to consistently buy every two weeks, like in my example, they had started out with hardly anything, yet they build little by little with a reasonable balancing of their circumstances, and they find themselves in a much better position at a later date. Sure, in my example, the person did not increase their income, yet we could realize that there are going to be circumstances in which the ongoing paying attention to bitcoin is going to lead to more and more learning about bitcoin, and perhaps even some ways in which the person becomes incentivized to increase his discretionary funds by increasing his income and/or by reducing his expenses... so then there might be ways that performance continues to improve beyond the initial expectations... which is partly due to ongoing action and ongoing reinforcement of the idea and the prioritizing of bitcoin investing and the building (and strengthening) of cashflow management systems/practices.
I never said that.
I said to have enough back up funds so that you don't accidentally end up not having enough money to cover your basic expense in the event that you make a mistake and you have some additional basic and necessary expenses that you have to pay prior to your next paycheck. Since, if you don't have any back up funds, then you will be forced to sell some of your bitcoin.
Furthermore, you can build your bitcoin and your back up funds from whereever you are at. You don't have to build up one months of your expenses as back up funds prior to getting started investing into bitcoin.
100% true. We who are used to monthly salary, our expenses are also limited. So if we invest in Bitcoin with a long-term plan, we must have a backup fund so that under no circumstances we need to sell Bitcoin. Human life is full of happiness and sorrow, so we need to be prepared in advance to face the times of sorrow.
I am still suggesting to build your back up funds from whereever you are at and not creating an extra expectation that you should have more back up funds than you have, so you figure out how much you are going to put into bitcoin and how much you are going to put into back up funds at the same time, and build from where you are at... There is not an extra priority given to back up funds, even though guys still have to figure out their own comfort level in terms of how much to put into each... So a guy starting out with absolutely no back up funds will be in a more delicate situation as compared with a guy who might already have two weeks of his expenses in some kind of a reasonable back up fund... The guy with two weeks of expenses already saved up might not have to dedicate 50/50 to bitcoin and to back up funds, and maybe he decides to put 80% of his then existing discretionary funds (presumptively from his income) into bitcoin and 20% into back up funds.
You cannot start with zero back up funds - since otherwise if you make a mistake that involves a basic and necessary expense needing to be paid prior to your next check coming in, then if having no money until your next paycheck you have to tap into your bitcoin . Maybe you should give an example of what you mean.. because you have to have enough to pay for your expenses otherwise you have to tap into your bitcoin?
Let's say, for example, a guy has an income of $500 every two weeks, and his basic expenses are $400, so that means that he has $100 in discretionary funds. If you use all of it to buy bitcoin, you have no money to cover any basic expenses that might come until your next pay in two weeks... You have to have some back up funds... so maybe you can figure out how to describe what you are talking about in regards to having no back up funds.
One solution for the $100 of discretionary funds every two weeks is to divide $33.33 in each category of 1) invest, 2) save(back up funds) and 3) discretionary consumption, so then after 1 year you would have had invested $866, saved $866 and discretionarily consumed $866... In that regard, you can build up both at the same time, even if you are poor, and if you are poor, you need the back up funds more than the rich people do... otherwise if you are acting sloppy and reckless, you have great odds of having fun staying poor.
You have mentioned the matter very nicely and mentioned three funds. I am investing Bitcoin according to two funds from there, one is an investment fund and the other is a backup fund. However, I do not have any weekly income, my monthly income is about 600 dollars. I deposit 100 dollars in a bank account for three years and deposit it there and from the other 100 dollars I invest 50 dollars in Bitcoin and 50 dollars in a backup fund and spend the remaining 400 dollars to meet basic needs.
Let's start with your basic needs, and if you are calculating that correctly, then you have $200 remaining for your monthly discretionary funds. One of the reasons I suggest that you might not be calculating them correctly is that there is a difference between needs and wants, so you may well be including discretionary consumption into your "basic needs." That is for you to figure out, and part of the reason that I suggest that guys divide their discretionary funds into three categories is so that they account for their discretionary consumption, which nearly everyone should have, unless they happen to be a hermit and/or living the life of a hermit.. which most normal people do not want to live the life of a hermit, and we should not have to live the life of a hermit in order to invest into bitcoin.
In other words, you are using only two of the categories, $100 for investing and $100 for savings (back up funds). Savings/back up funds is the same thing, even though you might label them as having different priorities, so some guys might have emergency funds that they cannot touch absent some kind of an emergency, and they might have reserve funds that have more flexibility in terms of how you might use them.. but they are all forms of back up funds, and it is up to you what level of priority you give to them and how much you might want to or be able to stop yourself from tapping into them as you are building them up, presumptively.
If you have $100 per month into each category (investing/saving) then you could divide that into weekly if you want which would be about $23 weekly (since on average each month has 4.33 weeks).
Of course, you can start with certain amounts that you had figured out to be $200 per month and then see how it goes from how you divide it and how it might be building up with time, yet from your description, you may well need to better sort out your expenses (which you described as $400 per month) to determine which ones of those expenses are actually basic and which ones are discretionary (which ones are your needs, versus your wants).
Practice will help you, especially if you can continue to both take action and to keep track and to make adjustments to make it more comfortable for you... and of course, investing into bitcoin takes money away from your consumption, yet if you keep track you might consider it to be a good way of using your money.. and of course, you have to ultimately be comfortable with how much you are stacking away each week or whatever period you end up buying bitcoin with your funds.
Knowledge is fundamental but you don't have to wait until you learn about it before you can invest. What is most important is to first invest and not learning because you can learn all you need to with your investment ongoing and ordinarily by just investing and participating in investing and holding Bitcoin you are learning more about it already and as your knowledge increases you get to understand more about how your investment should go.
Waiting that long to learn will waste your time so once you have discretionary income you can start investing immediately and go ahead with the learning process as well.
Learning is very important to your investment since it can help folks understand more about Bitcoin, and that's why learning should always simultaneously be done alongside investing.. Just starting and learning later may give room for folks to make certain avoidable mistakes like trading the market or timing the market for short term profits, which could be very detrimental to one's holding, and so learning is important.... While investing, learning can always be done gradually by starting from the basics , so as to avoid bombarding yourself with complex information/understanding about Bitcoin..
It seems to me that if a person gets started investing in bitcoin right away, as soon as they figure out that they have discretionary funds, then they are likely learning and investing as they go. The act of investing and taking action involves learning some of the most important things.. which also involves getting used to buying bitcoin every week (or whatever might be the investment period that is chosen).
Been aware of the basic knowledge about Bitcoin investment is not a strategy but rather it is a thing someone must or should know before going into Bitcoin investment. There are 3 basic strategies that can be use in Bitcoin accumulation which are the buy Dip, lump sum and DCA ( dollar cost averaging) and among the three strategies the DCA method is most preferable because it can help an investor accumulate at different phase of the market without pressure using the discretionary income.
Basic knowledge is just the preliminary step newbies should adhere to for a start but not a strategy just as you have said, why do we call it basic, it is just the foundation, learning does not stop there but we have to start from somewhere to get to where we actually dreamt of being, as for the three investment strategies you listed, they all serve there purpose and all important but it all depends on how we apply them as investors, among the the three, there is only one that is very efficient and flexible which is the DCA strategy, this strategy is referred to Bitcoin investment made easy, once any investor can figure out their discreationary income and invest it with DCA method for instance daily, weekly and monthly, such investor is good to go.
it should be the first thing that we do before proceeding to what we want to do and the excitement that comes for newbies to want to invest is usually blinding them from following the right step because learning, followed by the
capital initiation plan, should be something that should be taken very seriously because if you don't learn, everything else becomes very difficult because they did not want to learn. And that is why they are advised to learn.
Huh? What is needed to be learned before starting? Do they have discretionary funds or not? If they have discretionary funds, then why can't they start and adjust their position size to their comfort level and learn as they go?
You are not being clear about blanketedly expecting that there is something that needs to be learned.... You are describing a "capital initiation plan" and why the fuck does he need to think about some large outlay of money in order to get started? Are you saying that he has some large amount of money that is already ready to put into bitcoin, and why should he start with a lump sum rather than starting with a small amount and getting used to it?
Some folks have "capital" that they have available, and other people just have their income and their expenses that they need to figure out. Sure, they might have some extra money that they could put into bitcoin, yet they don't need to figure out their "capital initiation plan" before they get started looking into bitcoin by making some initial buys.
I would imagine that newbies already have knowledge and experience, and you are even presuming that they have "capital initiation" which seem to be a presumption that might not exist and it does not need to exist either in order for a newbie to get started in bitcoin. What is it that you want to presume that they are missing? If they don't have capital, you wan them to start saving capital before they start? That make no sense, especially if we have already been presented with the idea that before anyone can invest in bitcoin, they have figured out that they have discretionary funds, and if we are figuring out their discretionary funds, we don't have to build up the discretionary funds prior to getting started as you seem to be implying.
If they have discretionary funds, then they can figure out how much they want to start with, whether it is $100, $10 or some other amount... If they are uncomfortable, then they would error on the side of starting with a smaller amount, no? What further do they need to know?
because even if you have the intention to invest, people make it look like it's easy. Even if it is through the DCA, you still have to learn.
Can't you adjust the position size and learn as you go? Let's say that a person has $100, and he is figuring out how to buy bitcoin, so maybe he goes through the process by buying $20 or $30, and he is figuring out from where he is buying the bitcoin and he is learning as he goes.. and if he only has less than an hour, then maybe he might feel he needs more time, so he has to spend a bit of time figuring out how to make his first buy.. What is it that he does not know that he needs to know? Maybe he goes through his various income and expenses, so that might take him several hours to figure out how much money he has available each week.. Wouldn't he be learning as he goes? and maybe he is not going to buy any bitcoin until he is clear about whether he has $100 available every week, and then once he figures out that he has $100 available every week, then maybe he decides to make the first buy with only $20 so that he can go through the process of making a buy, and isn't he learning a lot of information by going through the process rather than theorizing about some things that you believe that he needs to know?
And it is actually very easy because when the whole thing starts, commitments matter a lot because this is something you have to be prepared for, because most of the time, they don't even need to learn everything, they just need to learn the basics, and then they are good to start investing.
You seem to be contradicting yourself here by suggesting that it is easy to get started.
I do agree that the overwhelming majority of normal people already possess all of the basic skills to invest in bitcoin, yet they still may need to practice to really hone their skills, whether it is math or organizing themselves or projecting out their cashflows, so the skills are basic, yet everyone (especially beginners) likely need to practice to hone their skills, and even folks who are more experienced with investing and/or cashflow management, they would still need to get used to how bitcoin fits within their already existing knowledge and experiences and so they can fit bitcoin into what they are doing and perhaps make some adjustments to what they are already doing in order to fit what they are doing into what they are going to do with bitcoin.
