Balancing Financial security and Bitcoin Accumulation

[gracreavix]

For me, we must first of all think about reasons why people or investors borrow money from the bank or from online App, people borrow money because of investment, health wise or project, coming to Bitcoin community, I am of the opinion that if an investor wants to borrow money so that he or she would invest Bitcoin, the investor should consider means of payment, wether he can pay from other source of income, wether he will sell his investment just to pay his loan, because his loan interest will continue to increase weekly or monthly as the case may be. So it's not right for an investor to borrow just to invest because Bitcoin is a long term investment unless he has other source of payment, then he can go ahead and borrow

It will never be a good decision for a new investor to invest with debt. Because if a new person invests with debt, he may become very scared and after a while he may sell his holdings in panic. A new person should initially adopt the DCA method and continue to buy continuously. Because when the market falls, a new person will be scared, it is very natural, but if a new person invests with debt at that time, he will become even more scared.

Investing with debt is not bad but one should understand whether he can repay the debt or not. Because if a person has the ability to repay the debt, he can invest with debt and gradually repay the debt. If he does not have the money to repay the debt and invests with debt, he may fall into bad times.

it is important for a newbie or a no coiner to determine whether they have discretionary income available before they start investing in bitcoin. Borrowing money to start investing in bitcoin is not a good idea and I won't advise anyone that wants to start buying bitcoin to start thinking about going to borrow money that they will invest with. If the discretionary income is not available to invest with such a person is not yet ready to invest in bitcoin. There main focus should be on working on there cash flow instead looking where to borrow money to invest in bitcoin.

Right, expecting quick profits by investing in Bitcoin is absolutely foolish, Bitcoin cannot make anyone rich overnight. Profits can be expected in the future by consistently managing long-term investments. To hold Bitcoin in the long term, you must have a prudent income, as well as a special fund for three months, because you can deal with unknown dangers and it is very important to manage long-term investments properly. You must understand that investing in Bitcoin with borrowed money is absolutely foolish, because you don't know exactly when Bitcoin price will increase, so it is impossible to quickly make money through investment and repay the loan. This will put additional financial pressure on yourself, and the risk of losing money can increase manifold.

Maybe I should put it this way, expecting Bitcoin to make you rich overnight is just setting yourself up for stress. Since no one can predict the exact timing of its moves, borrowing money to invest is almost like digging a hole for yourself. It is because the smarter thing is to secure your income, keep an emergency fund aside, and then invest what you can comfortably hold long term. That way you avoid unnecessary pressure and actually give yourself a chance to enjoy the real benefits of Bitcoin.

[Bigjoe33]

You are doing the wrong thing about investing. It is not important to have a discretionary income before investing in Bitcoin . If you are studying in a university, you will learn about Bitcoin and you can accumulate Bitcoin during your studies. Buy Bitcoin by saving some money from your part time job or from the session fees you get from your family. You will gain knowledge about Bitcoin while you are a student and along with that, you can accumulate any fractional amount. It is always intelligent to rely on your own cash fund. If you take out a loan or depend on other people's money to invest, you will not be able to keep it going in the long term.

You need a discretionary income in order for you to invest into bitcoin and hodli for long. I understand what you mean, it's just that you don't understand what discretionary income is. Discretionary income is the extra money from your income that you can do away with and it wouldn't affect you lifestyle. Some people use it to drink, smoke, gamble, club and many more consumption al stuff. Using such funds to invest in bitcoin is the best because you can use it to grow and build your bitcoin portfolio for the future.

If you use money that is not your discretionary income to buy bitcoin, when your needs arises, you will sell your bitcoin because you did not do the right thing. What you explain above means that the extra money from your part-time job can serve as your discretionary provided that you have meet up with all your needs.

Weldon @ Merit.s for the timely explanations and for correcting that notion about discretionary. At least newbies that will come across this wouldn't get it wrong or start from the wrong path of investment.

Maybe he doesn't just understand the concept of discretionary income, and /or he knows it but didn't put the right word where it's sopose to be or perhaps, he wanted to use emergency funds but mistaked it for discretionary. Which ever way it is, I think your explanations and that of Silikiem below would have done justice to that misconception or mistake.

We all need our discretionary income to begin our investment journey and its totally undisputed. Imagine a farmer going to farm without a hoe and cutlass, or astudent going to school without books and a pen, totally a water of time. That's how important the discretionary is to our accumulation of Bitcoin. I just hope he comes back to read off all these and learn.

Maybe I should put it this way, expecting Bitcoin to make you rich overnight is just setting yourself up for stress. Since no one can predict the exact timing of its moves, borrowing money to invest is almost like digging a hole for yourself.

Common! Who does that? The I bet you that such a person isn't ready to be an investor or a long time holder of Bitcoin assets, am sure he would pull, selling all out of frustration and this really mean nothing.

If you get something tangible and profitable, though not promised, you must accumulate gradually and Hodl, I repeat, Hodl, at least for a circle, two, three or more. Remember a circle is 4 years.  The long term plan of Bitcoin is the ideal way of investment. You keep accumulating Bitcoin using the DCA strategy or any other method if you have the capacity to. While seeking for other means of gaining better or increased income, just buy and Hodl.

[Finebone]

Maybe I should put it this way, expecting Bitcoin to make you rich overnight is just setting yourself up for stress.

Truly Bitcoin is not a get rich quick scheme, and this is one thing most newbies fails to understand, that's why they mostly approach bitcoin investment with the mindset of buying and selling prematurely thinking it's the best to to go about it, but it's not, you can't grow rich by investing in bitcoin with a short term minds.

Since no one can predict the exact timing of its moves, borrowing money to invest is almost like digging a hole for yourself.

How are you digging a hole for yourself when you are not paying back from your bitcoin investment?
Don't you understand that once your ability to pay back have nothing to do with the final outcome of your bitcoin investment, you have nothing to worry about?
Taking a loan to invest in bitcoin is not a problem as long as you have other source of repaying it back.

[BTC-blaad]

Maybe I should put it this way, expecting Bitcoin to make you rich overnight is just setting yourself up for stress.

Truly Bitcoin is not a get rich quick scheme, and this is one thing most newbies fails to understand, that's why they mostly approach bitcoin investment with the mindset of buying and selling prematurely thinking it's the best to to go about it, but it's not, you can't grow rich by investing in bitcoin with a short term minds.

Since no one can predict the exact timing of its moves, borrowing money to invest is almost like digging a hole for yourself.

How are you digging a hole for yourself when you are not paying back from your bitcoin investment?
Don't you understand that once your ability to pay back have nothing to do with the final outcome of your bitcoin investment, you have nothing to worry about?
Taking a loan to invest in bitcoin is not a problem as long as you have other source of repaying it back.

You don't have to say Bitcoin isn't a get rich quick scheme so you won't discourage some minds from investing into Bitcoin, as a newbie you have to understand the strategies of the market first before investing and investing for long-term benefits without selling is okay and advisable as a newbie who's into the market because long-term investments helps so much and build you well as a newbie understand how the market works.

[Silikiem]

You don't have to say Bitcoin isn't a get rich quick scheme so you won't discourage some minds from investing into Bitcoin,

Yes, the earlier you begin to know that bitcoin investment is not a get rich quick scheme the better for you, and yea the honest truth is bitcoin is not a get rich quick scheme, and that’s why it’s always been emphasized here that bitcoin is a long term investment, not just a short term or get rich quick scheme where you are expecting to earn profit over night. This is not to discourage anyone from investing in bitcoin but rather to show you a clearer picture of what bitcoin is all about and also for you to be fully aware of what you’re going into. So, it’s better you and other newbies know that bitcoin investment is not a get rich quick scheme, make sure to always bear that in mind, bitcoin investment is a long term investment of consistent or Perherps persistent accumulation of bitcoin and hold for the long term goal.

[gracreavix]

How are you digging a hole for yourself when you are not paying back from your bitcoin investment?
Don't you understand that once your ability to pay back have nothing to do with the final outcome of your bitcoin investment, you have nothing to worry about?
Taking a loan to invest in bitcoin is not a problem as long as you have other source of repaying it back.

If so then it means you are actually proving my point without realizing it because the risk is still there. The whole idea of Bitcoin investment is long term, nobody can predict the short term moves. If you borrow money to invest, you have already created pressure on yourself because that loan has a fixed repayment time while Bitcoin does not move according to your timetable. Even if you claim to have another source of repayment, it defeats the purpose of investing because you are exposing yourself to double financial stress, managing debt and waiting for an uncertain return. That is why borrowing for Bitcoin is never ideal, it turns a long term play into a dangerous gamble.