Does the DCA strategy inspire newbies to invest?

[Hardyrobust]

know that Emergency funds that's not useful at the moment it arrives can be use to achieve another goal if it's use properly for its investment.

Even if a person has not used his emergency savings at some point… It does not mean it should be put into something else. The point of keeping emergency fund is to have money available and accessible when unexpected expenses comes up, that can come at anytime. Using it for what it’s not meant for can create a big problem for you, because it will leave you exposed without a protection and you’d have to sell when you eventually need cash.

Every investor should be able to know what they should use their emergency funds on and of cause emergency funds does not have a particular emergency one should use them on but as long as it is emergency an investor should be able to know if they will touch their emergency funds on that particular... because there are some emergency that won't mean a serious threat or harm and there are some that will..., so i think those emergency that tends to be very serious and severe are the ones investor should use their emergency funds on but it is left for investors to decide.

There is no way an investor can be able to tell what they will use their emergency funds for because there are different unexpected events or happening that can occur that is beyond their control. Since no one have control of what emergency that will occur in the future, it is not possible for them to tell or predict what kind of emergency that they will use the emergency funds for.
When face with an unexpected events instead to go through financial pressures, it is best to use an emergency funds to salvage the situation.

[RockBell]

There is no way an investor can be able to tell what they will use their emergency funds for because there are different unexpected events or happening that can occur that is beyond their control. Since no one have control of what emergency that will occur in the future, it is not possible for them to tell or predict what kind of emergency that they will use the emergency funds for.
When face with an unexpected events instead to go through financial pressures, it is best to use an emergency funds to salvage the situation.

I am aware of the reasons why some people believe they will be able to anticipate their emergency. However, since emergencies are unforeseen events, people should understand what an emergency is. For this reason, emergency funds are planned for and are crucial because you never know when an emergency might occur. They will serve their purpose and won't affect what you already have because that is one of the mistakes that people who don't have emergency funds will end up selling. And most people are not preparing enough and that is why they sell.

And for that reason, when you want to invest, they will tell you what you need in order to keep your Bitcoin for a long time. You should also keep your emergency funds in mind while you are investing, making sure that the funds are greater than what you need in case of an emergency.

[samadam007]

I am aware of the reasons why some people believe they will be able to anticipate their emergency. However, since emergencies are unforeseen events, people should understand what an emergency is. For this reason, emergency funds are planned for and are crucial because you never know when an emergency might occur. They will serve their purpose and won't affect what you already have because that is one of the mistakes that people who don't have emergency funds will end up selling. And most people are not preparing enough and that is why they sell.

And for that reason, when you want to invest, they will tell you what you need in order to keep your Bitcoin for a long time. You should also keep your emergency funds in mind while you are investing, making sure that the funds are greater than what you need in case of an emergency.

Nobody can predict when an emergency will happen. So saying the fund should be “greater than what you need” is misleading. Folks can only allocate a reasonable amount of emergency fund(from their discretionary income) and continue building it while accumulating Bitcoin too.

There is a difference between emergency fund and backup/ reserve fund.
Emergency fund is majorly for unexpected expenses, while other reserves can be kept for things like planned future expenses. It is good to know the difference.

[Mr Reporter]

It’s not necessary to have an emergency fund before you start to invest in Bitcoin. The most important thing you need to invest is having your discretionary income. Setting aside amount you can afford to lose after you solve other financial problems. You can set up your emergency fund along the way while investing. Waiting to have the emergency funds may seem like a waste of time, as long as you believe you can set tup while investing, then you are good to go.

I don't completely agree with you because both an emergency fund and discretionary income are very important in the lives of an investor, as the two play a crucial role in their lives. If you depend only on discretionary income, that means your accumulation plan is incomplete, as there should be an emergency fund just in case an emergency occur, as nobody knows when one will occur. Anyway, it depends on individuals, as they best know how to keep investing without stopping halfway even if an emergency hits.

Additionally we should all have an idea that discretionary income and emergency funds are two different jobs and each of them have their own roles to
Play in as much as you are an investor, i have seen most people who are getting it all mixed up that if you depend only on discretionary income the truth is that your acclimation plan is indeed incomplete because both are working hand in hand if you ask me…

That income left after having payments of the house rent, food, transportation, and all that is what we call discretionary income, while our emergency funds hit like Health issue, phone spoils, job delay, family problem. As you said, nobody knows when one will occur….

[Loyang]

It’s not necessary to have an emergency fund before you start to invest in Bitcoin. The most important thing you need to invest is having your discretionary income. Setting aside amount you can afford to lose after you solve other financial problems. You can set up your emergency fund along the way while investing. Waiting to have the emergency funds may seem like a waste of time, as long as you believe you can set tup while investing, then you are good to go.

I don't completely agree with you because both an emergency fund and discretionary income are very important in the lives of an investor, as the two play a crucial role in their lives. If you depend only on discretionary income, that means your accumulation plan is incomplete, as there should be an emergency fund just in case an emergency occur, as nobody knows when one will occur. Anyway, it depends on individuals, as they best know how to keep investing without stopping halfway even if an emergency hits.

You have started arguing with SmartCharpa without understanding his comment. Because SmartCharpa said that waiting to start investing to build an emergency fund is not the right decision at all. He said find a source of discretionary income and start investing and build an emergency fund at the same time. SmartCharpa did not say anywhere in his comment that a person should depend on discretionary income without building an emergency fund.

When a person only builds an emergency fund and does not start investing, he is missing out on many buying opportunities and falls far behind the goal of building a portfolio, etc. But when he does both at the same time, he will not be left behind and will be able to move both forward in a balanced way

[Futurexxx]

I will agree with you here...but know that Emergency funds that's not useful at the moment it arrives can be use to achieve another goal if it's use properly for its investment....

This is wrong bro. First of all, emergency funds is very important in all times, because you don't know when emergencies will struck and threatens your Bitcoin investment, so it should always be in place for the security of your Bitcoin investment.

Secondly, investing with your emergency funds because you think that the money can be useful elsewhere is totally wrong, because by doing so, you are gambling with your entire Bitcoin investment or portfolio, because if any emergency struck that time you invested it in Bitcoin, selling your Bitcoin holdings will be inevitable, so we should never gamble with our investment by investing with our emergency funds that is meant to protect our Bitcoin investment.

[Ruttoshi]

There is a difference between emergency fund and backup/ reserve fund.
Emergency fund is majorly for unexpected expenses, while other reserves can be kept for things like planned future expenses. It is good to know the difference.

Emergency funds falls under backup funds because it's a backup funds to your bitcoin investment to prevent you from selling when it's not your will due to been hit with a real life emergency. Emergency funds isn't for unexpected expenses but to take care of real life problems when they play out during your bitcoin accumulation because if you don't take care of it, it will lead to more financial problems. Emergency funds isn't flexible but your reserve funds is flexible.

It's your float that you use to take care of unexpected expenses that pops out during the week before you get paid again and this is not part of backup funds. Emergency funds and reserve funds are the two backup funds that we have.

[Frankolala]

Additionally we should all have an idea that discretionary income and emergency funds are two different jobs and each of them have their own roles to
Play in as much as you are an investor, i have seen most people who are getting it all mixed up that if you depend only on discretionary income the truth is that your acclimation plan is indeed incomplete because both are working hand in hand if you ask me…

That income left after having payments of the house rent, food, transportation, and all that is what we call discretionary income, while our emergency funds hit like Health issue, phone spoils, job delay, family problem. As you said, nobody knows when one will occur….

I agree with you that you cannot separate discretionary income and emergency funds because it's from you discretionary income that you can use part of it to set up your emergency funds and other backup funds. This is the reason why there must be a balance between our bitcoin investment and our emergency funds in the beginning of our bitcoin investment journey.

It becomes a problem if a long term investor neglects the importance of setting up and emergency funds and only focus on buying bitcoin with his discretionary income because he will later, sell those bitcoin he's in a rush to buy and increase his stash when he's hit with real life emergency.

 The worst thing is that he can even sell at loss if bitcoin is below his entry price making it a waste of time, resource and energy when he can simply safeguard his bitcoin investment by dividing his discretionary income into three equal parts and use the first part for his regular DCA, the second part to set up his emergency funds and the last part for his discretionary consumption. Be prepared for the worst case scenario in your bitcoin investment accumulation journey.

[hedgeh0g]

I find investors using the DCA strategy invest for the long term.
Special Considerations Should Beginners Follow the DCA Method for Bitcoin Investments? What Can Be the Outcome -Future

DCA Bitcoin is such a well‑known and relevant method that, despite its simplicity, it is constantly discussed both on the forum and beyond. People are creating DCA calculators that base their calculations on a strategy, and they are designed to help young investors predict their profits.
For example, bitmover has even recently released a new calculator that conveniently allows you to calculate earnings using DCA and determine how much Bitcoin will accumulate if you regularly set aside money to buy Bitcoin. And it’s funny that, despite the simplicity of the DCA method, not all experienced investors use it.

[JayJuanGee]

I find investors using the DCA strategy invest for the long term.
Special Considerations Should Beginners Follow the DCA Method for Bitcoin Investments? What Can Be the Outcome -Future

DCA Bitcoin is such a well‑known and relevant method that, despite its simplicity, it is constantly discussed both on the forum and beyond. People are creating DCA calculators that base their calculations on a strategy, and they are designed to help young investors predict their profits.
For example, bitmover has even recently released a new calculator that conveniently allows you to calculate earnings using DCA and determine how much Bitcoin will accumulate if you regularly set aside money to buy Bitcoin. And it’s funny that, despite the simplicity of the DCA method, not all experienced investors use it.

Here's a link to the new BTC DCA Calculator by Bitmover:

https://bitcoindata.science/dca-calculator