Balancing Financial security and Bitcoin Accumulation

[icebar]

If I am expecting money trust I will wait for as long as I can to get this money before investing in Bitcoin perhaps it wasn't a matter of life and death so i will never try borrowing to invest in Bitcoin for any reason.

I definitely appreciate your idea. Because if you are not in debt, you can be calm mentally. But those who take loans have to go through mental stress. I personally do not like taking loans if there is no need for it. However, not all investors have the same financial situation, and not all have the same mentality. If an investor is such that he is investing in Bitcoin for the long term, especially doing DCA, but suddenly for some reason Bitcoin falls drastically and at that time if he borrows money for the purpose of investing a little more with risk, it may be a good decision. However, in this case, he must understand whether he will be able to repay that money or not. If he has a different source of income, then it is not bad to take advantage of a good opportunity by borrowing money. However, this strategy does not apply to everyone. A common advice for everyone is that if the investor has a long-term DCA and can make aggressive investments with some of his discretionary income, then it is definitely acceptable. The opportunity to buy from the dip in Bitcoin will not always come, so it should be used appropriately.

[Joeboy]

Well in Bitcoin investment no money is made permanent for a particular usage, the usage of this funds are not rigid but flexible and adjustable base on situation and or circumstances. There could be times when emergency fund can be used in the place of discretion fund when there is no discretion but that doesn't mean that it will remain permanent but these only happens when there is a financial difficulty or mismanagement of fund or when our source of income are whimpy. But However I don't mean to say yhat it is advisable to misplace the usage of each of this funds but we just need to know that sometimea we just need to be flexible in our investment approach in other not to follow a wrong investment approach expecialy anything that will leed to selling of Bitcoin when our target has not been met.

It is worth noting that the Emergency fund isn't as flexible as every other backup funds, such as the reserve or float funds. Tampering your emergency fund or using it to serve the purpose of the discretionary income would only mean one thing, which is endangering your Bitcoin portfolio. The Emergency Fund should in fact be treated as a rigid cushion as it is the ultimate safety net for your Bitcoin investment.
Now imagine a situation where you hit a potential DIP in the market and it's just so attractive that you feel you can't miss buying on that DIP, and maybe in the absence of a reserve fund or discretionary fund, you decide to opt for using your Emergency fund to buy the DIP (leaving your Investment defenceless and vulnerable), with intentions of replenishing it in the coming weeks, and then just after the buy, an unexpected emergency suddenly pops up. Now, there's no emergency fund in place, no reserve or float fund, you're left with nothing but your Bitcoin investment, what do you think would happen in such a case if not to dip into your investment to sort out that emergency...

The Emergency fund is just as important as your Investment and should be treated with extreme caution too, the only time one should seek the assistance of the emergency fund is when an actual emergency surfaces, anything other than that could either wait or be attended to by other backup funds. I'm not in support of the idea that the emergency fund should be considered as a flexible fund that could be extended to other areas or financial needs, except actually emergencies.

In some cases where you have exhausted your discretionary income for bitcoin investment it's not bad if an investor uses little of his emergency fund to purchase bitcoin and still make a replacement back to your emergency fund when things are alright but emergency fund shouldn't serve the purpose of discretionary income using your emergency in a one time purchase of bitcoin doesn't give you a bad method to invest in bitcoin.

Am saying this based on experience, touching your emergency fund for Bitcoin investment is a very  dangerous path to take, no matter how little it is....An emergency fund is meant to protect you in times of real life needs(medical bills, loss of job, urgent family issues, or a time where quick cash is needed). If that money is tied up in your Bitcoin holding during a market dip, you may be forced to sell at a loss just to settle that your emergency.

See ehn investing in Bitcoin requires patience and then a long term mindset, while an emergency fund is for safety and immediate access. Mixing up the two can put the Investor into an unnecessary pressure. That is why it is  far more safer to only invest with your discretionary income, which is  extra money left after settling your needs, bills, and responsibilities.

[Finebone]

If I am expecting money trust I will wait for as long as I can to get this money before investing in Bitcoin perhaps it wasn't a matter of life and death so i will never try borrowing to invest in Bitcoin for any reason.

I definitely appreciate your idea. Because if you are not in debt, you can be calm mentally. But those who take loans have to go through mental stress. I personally do not like taking loans if there is no need for it. However, not all investors have the same financial situation, and not all have the same mentality. If an investor is such that he is investing in Bitcoin for the long term, especially doing DCA, but suddenly for some reason Bitcoin falls drastically and at that time if he borrows money for the purpose of investing a little more with risk, it may be a good decision. However, in this case, he must understand whether he will be able to repay that money or not. If he has a different source of income, then it is not bad to take advantage of a good opportunity by borrowing money. However, this strategy does not apply to everyone. A common advice for everyone is that if the investor has a long-term DCA and can make aggressive investments with some of his discretionary income, then it is definitely acceptable. The opportunity to buy from the dip in Bitcoin will not always come, so it should be used appropriately.

Where most investors gets it wrong is from the beginning, they think that the loan will be repayed back from their Bitcoin investment, without paying attention to little details that it will be repayed back from another source.
Additionally, once it's a loan that can be paid back in installment manner, then taking a loan is not too a bad idea, especially if the interest rate is very low, because part of the borrowed money can be paid monthly once you receive your salary, before you will know it, you will be done repaying it.

[JayJuanGee]

In some cases where you have exhausted your discretionary income for bitcoin investment it's not bad if an investor uses little of his emergency fund to purchase bitcoin and still make a replacement back to your emergency fund when things are alright but emergency fund shouldn't serve the purpose of discretionary income using your emergency in a one time purchase of bitcoin doesn't give you a bad method to invest in bitcoin.

It may not always be convenient for an investor to use the emergency fund to buy Bitcoin and then try to make it up again later. When an investor repeatedly uses the money from this fund, he may fail to provide the money from that fund at any time. So, it is better to keep the money from the emergency fund without using it. Yes, in some cases, if there is need. For example, if the price of Bitcoin has suddenly dropped so much, then the emergency fund can be used if there is an opportunity to buy at that time. However, it must be remembered to replenish the money to the emergency fund as soon as possible. If it takes a long time to provide the money from the fund, then it is better not to use that money.

I totally get what you’re saying. The main idea of an emergency fund is that it is  supposed to be untouched, because life is unpredictable and you never really know when a real situation will hit. If someone keeps dipping into it just because they see an opportunity in Bitcoin, then at the end of the day when an actual emergency comes up, there’s nothing to fall back on.
And in most cases, they may even be forced to sell off their Bitcoin at a bad price just to fix the problem the fund was originally meant for, which kind of defeats the whole purpose.

But one thing is that in life we can not really determine or know what challenge will be more severe when we haven't come across or encounter them all though there are challenges or issues we can actually call less because they won't cause us much. So the question is what challenge do you think is severe that an investor should use their emergency funds to settle because what I will call severe may not be severe to you because of your capacity I mean your profile, your status. But in all I think it is just better we grow a good emergency funds so that even though we used some on issue we feel they are pressing we can still have some percentage that can be used for other challenges that will come up.

Of course, we have repeated that back up funds tend to fall into two categories, which are Emergency funds and reserve funds.   Emergency funds are largely the same as reserve funds except that we have decided to personally place limitations on them so that we do not spend them until we have no choice, so largely if we are tapping into our emergency funds then we have gotten to a pretty desperate status.  Reserve funds have more flexibility in terms of why they might be used.. they can be used to consume, to invest or even extra emergency type funds that stop us from having to tap into our actual emergency funds.

I imagine that when we are early in our building up of our back up funds, our emergency portion is not very large, but we want to build up our back up funds larger and larger so that the emergency portion is perhaps around 3 months of our expenses, and of course, as we are first building them up we will figure out some balances, even while we are hopefully building up our bitcoin investment at the same time. We might even choose to build up our bitcoin investment at a faster rate, yet at the same time, we have to realize that if we do not have enough back up funds we could end up having to tap into our bitcoin at at time that is not of our choosing and we likely are not going to want that to happen... so we figure out how to balance our back up funds and to strengthen various aspects of our cashflow management systems to both protect our bitcoin investment but also to make it likely that we are not putting ourselves into such a status that we have spent all of our various back up funds, and we ONLY have emergency funds that are left.

So, many times we might have shortages of income and/or additional expenses while at the same time, not having to dip into our emergency funds because we have other ways of covering our expenses, and so hopefully, we never let ourselves fall into a state in which we are worried that we don't have enough funds to cover our expenses, even if there might be times that they go up and our income might not be enough to cover them and/or our income might go down too, from time to time...

If I am expecting money trust I will wait for as long as I can to get this money before investing in Bitcoin perhaps it wasn't a matter of life and death so i will never try borrowing to invest in Bitcoin for any reason.

I definitely appreciate your idea. Because if you are not in debt, you can be calm mentally. But those who take loans have to go through mental stress. I personally do not like taking loans if there is no need for it. However, not all investors have the same financial situation, and not all have the same mentality. If an investor is such that he is investing in Bitcoin for the long term, especially doing DCA, but suddenly for some reason Bitcoin falls drastically and at that time if he borrows money for the purpose of investing a little more with risk, it may be a good decision. However, in this case, he must understand whether he will be able to repay that money or not. If he has a different source of income, then it is not bad to take advantage of a good opportunity by borrowing money. However, this strategy does not apply to everyone. A common advice for everyone is that if the investor has a long-term DCA and can make aggressive investments with some of his discretionary income, then it is definitely acceptable. The opportunity to buy from the dip in Bitcoin will not always come, so it should be used appropriately.

There are various ways to consider a loan, and surely any loan will have terms that cause it to cost money, and surely if the loan has favorable terms in regards to length of time and/or fees, then it could be worth while to enter.  A loan can be used as a way to frontload an investment into bitcoin with income that has not yet come in.  You should be able to pay off the loan no matter if bitcoin performs well or not during the term of the loan. 

If bitcoin performs poorly then you might realize that the loan did not work to your advantage, and you would have had done better to just invest with your normal income and you would not have had to have had paid the fees.

If bitcoin performs well during the term of the loan, then of course, you will feel like a genius that you were able to buy more bitcoin than you otherwise would have had been able to buy through your regular income.

The main things are the fees, the term of the loan and your ability to pay back the loan, even if bitcoin goes to zero during the duration of the loan.

[laijsica]

Borrowing money to invest in Bitcoin is not a wise move at all, in fact it is one of the fastest ways to put yourself in a trap…. Bitcoin is already volatile on its own, it does not need the added pressure of a loan with interest eating into your back.. When you borrow to buy Bitcoin, you’re not only risking your Bitcoin stack, you are also risking your ability to hold through the dips.. Instead of stacking and building calmly, you will always be under pressure to pay back, and that pressure can force you to sell your coins at the worst possible time..

I think that you are not getting the point here, it's not a wrong decision entirely to invest in Bitcoin with a borrowed money, and you first of all needs to kill that notion that you will be paying back from your Bitcoin investment, no. The terms and conditions of the loan is what's going to determine if it's suited to take an invest  or not.
If you have the opportunity to take a loan of $20k  that can be paid installmentally across three years with a loan interest of 0.5% or 0.6% why not? Because to the best of my knowledge, you can easily repay back that loan from your paycheck once it comes, bit by bit for three years, and you can be rest assured that Bitcoin will always outperform any interest rate attached to the loan, so what are you saying?
So as long as you are paying it back installmentally across three years or more, and you are paying it back from another source, it's an opportunity not to miss especially if you took it and buy during the dip.

There is no doubt that we are all entitled to our own opinion. However I believe it is wrong to borrow money to invest in bitcoin when you are expecting any money to sort out the loan. Investing in bitcoin for a short or a long term is not a guarantee that our investment is going to be successful at the end so it will be wise if we invest from our discretionary income to avoid the stress and pressure that will come when we are unable to pay back the borrowed money. Borrowing money to invest in bitcoin is not a bad idea but thinking of paying installmentaly is something I don't really support , if you are expecting money from where and decide to borrow to invest in bitcoin and then pay back the borrowed when the expected income arrived then it isn't a bad idea.

I am one among those who dislike being indebted and I value my peace of mind so much, personally I will not borrow money to invest in Bitcoin with the expectation of paying back no matter how sure the plan of paying back can be I will not do such thing, I will always prefer doing things to ease my temperament at every given time, now the question is what is reason for the borrowing money to invest in Bitcoin when you have a long term plans ahead of you?  If I am expecting money trust I will wait for as long as I can to get this money before investing in Bitcoin perhaps it wasn't a matter of life and death so i will never try borrowing to invest in Bitcoin for any reason.

Borrowing is a financial instrument of choice. Sometimes borrowing can make you particularly financially strong. Not long ago, a Bitcoin investor I knew borrowed $1k to buy Bitcoin. At that time, Bitcoin was going through a price decline. Although his reasoning was that he would hold Bitcoin for the long term. Moreover, he had engaged in Bitcoin accumulation DCA strategy. He tried to increase his holdings by buying additional Bitcoin. Later he paid off the loan from his alternative own sources but during the bearish period the additional Bitcoin buy increased the size of his portfolio. And he remains steadfast in his long term goals.

I gave this example to show that if you have a source of timely repayment, it would be great and smart to increase your Bitcoin holdings by borrowing during bearish periods.

[Gost ms]

Borrowing is a financial instrument of choice. Sometimes borrowing can make you particularly financially strong. Not long ago, a Bitcoin investor I knew borrowed $1k to buy Bitcoin. At that time, Bitcoin was going through a price decline. Although his reasoning was that he would hold Bitcoin for the long term. Moreover, he had engaged in Bitcoin accumulation DCA strategy. He tried to increase his holdings by buying additional Bitcoin. Later he paid off the loan from his alternative own sources but during the bearish period the additional Bitcoin buy increased the size of his portfolio. And he remains steadfast in his long term goals.

I gave this example to show that if you have a source of timely repayment, it would be great and smart to increase your Bitcoin holdings by borrowing during bearish periods.

I think it is never right to take a loan to invest. As you said, if you can repay the loan along with the investment or on time, it is never a good and wise decision to invest with a loan. Because if you do not have money at this time, if you invest aggressively with a loan, then it may be difficult to maintain continuity in your investment later. For example, if you invest with a loan, then you will have to repay the loan and to continue investing, you will move away from the continuity of investment.

Yes, you can invest with a loan in one way. For example, if the market has fallen, you have money to buy aggressively. But you have kept your money in the bank but your bank account has been locked for some reason. In such a situation, you can invest with a loan if you want. But you have to know exactly how many days you can repay the loan in between

[ruykeri]

Borrowing money to invest in Bitcoin is not a wise move at all, in fact it is one of the fastest ways to put yourself in a trap…. Bitcoin is already volatile on its own, it does not need the added pressure of a loan with interest eating into your back.. When you borrow to buy Bitcoin, you’re not only risking your Bitcoin stack, you are also risking your ability to hold through the dips.. Instead of stacking and building calmly, you will always be under pressure to pay back, and that pressure can force you to sell your coins at the worst possible time..

I think that you are not getting the point here, it's not a wrong decision entirely to invest in Bitcoin with a borrowed money, and you first of all needs to kill that notion that you will be paying back from your Bitcoin investment, no. The terms and conditions of the loan is what's going to determine if it's suited to take an invest  or not.
If you have the opportunity to take a loan of $20k  that can be paid installmentally across three years with a loan interest of 0.5% or 0.6% why not? Because to the best of my knowledge, you can easily repay back that loan from your paycheck once it comes, bit by bit for three years, and you can be rest assured that Bitcoin will always outperform any interest rate attached to the loan, so what are you saying?
So as long as you are paying it back installmentally across three years or more, and you are paying it back from another source, it's an opportunity not to miss especially if you took it and buy during the dip.

I never support investing in Bitcoin by taking out a loan, whether it is in the DIP  or not. There are many logical reasons behind this. No one can accurately predict when Bitcoin will actually dip. If the price of Bitcoin seems low, then if someone takes out a loan and invests in Bitcoin, and after that the price is lower than before, he will lose comparatively. And if the price starts to decrease after taking out a Bitcoin loan and investing, then the investor will be under a lot of psychological pressure. Even if you take out a loan with an interest of 0.5% to 1%, it may seem low, but when you have to pay a lot of money on it, the amount of interest will be a lot. Those who invest in loans when Bitcoin is in the DIP are basically gambling in the name of investment. When a person invests with, he definitely does not have enough money and takes out a loan and invests in Bitcoin. If the price of Bitcoin starts to decrease after investing and his income source stops at this time. Then he is in a lot of danger. Not only will he not be able to pay the installments regularly, but he will also be forced to sell the Bitcoin at a low price. As a result, he will not only sell the Bitcoin at a loss, he will also put himself and his entire family in an uncertain life. So do not gamble with Bitcoin by taking a loan. It would be much safer to invest the money that he used to pay for the loan as monthly installments along with interest by following the DCA. In addition, if an emergency fund and reserve fund are formed, it will be possible to continue the investment for a long time and a lot more profit will be obtained.

[Barikui1]

Borrowing money to invest in Bitcoin is not a wise move at all, in fact it is one of the fastest ways to put yourself in a trap…. Bitcoin is already volatile on its own, it does not need the added pressure of a loan with interest eating into your back.. When you borrow to buy Bitcoin, you’re not only risking your Bitcoin stack, you are also risking your ability to hold through the dips.. Instead of stacking and building calmly, you will always be under pressure to pay back, and that pressure can force you to sell your coins at the worst possible time..

I think that you are not getting the point here, it's not a wrong decision entirely to invest in Bitcoin with a borrowed money, and you first of all needs to kill that notion that you will be paying back from your Bitcoin investment, no. The terms and conditions of the loan is what's going to determine if it's suited to take an invest  or not.
If you have the opportunity to take a loan of $20k  that can be paid installmentally across three years with a loan interest of 0.5% or 0.6% why not? Because to the best of my knowledge, you can easily repay back that loan from your paycheck once it comes, bit by bit for three years, and you can be rest assured that Bitcoin will always outperform any interest rate attached to the loan, so what are you saying?
So as long as you are paying it back installmentally across three years or more, and you are paying it back from another source, it's an opportunity not to miss especially if you took it and buy during the dip.

I never support investing in Bitcoin by taking out a loan, whether it is in the DIP  or not. There are many logical reasons behind this. No one can accurately predict when Bitcoin will actually dip. If the price of Bitcoin seems low, then if someone takes out a loan and invests in Bitcoin, and after that the price is lower than before, he will lose comparatively. And if the price starts to decrease after taking out a Bitcoin loan and investing, then the investor will be under a lot of psychological pressure. Even if you take out a loan with an interest of 0.5% to 1%, it may seem low, but when you have to pay a lot of money on it, the amount of interest will be a lot. Those who invest in loans when Bitcoin is in the DIP are basically gambling in the name of investment. When a person invests with, he definitely does not have enough money and takes out a loan and invests in Bitcoin. If the price of Bitcoin starts to decrease after investing and his income source stops at this time. Then he is in a lot of danger. Not only will he not be able to pay the installments regularly, but he will also be forced to sell the Bitcoin at a low price. As a result, he will not only sell the Bitcoin at a loss, he will also put himself and his entire family in an uncertain life. So do not gamble with Bitcoin by taking a loan. It would be much safer to invest the money that he used to pay for the loan as monthly installments along with interest by following the DCA. In addition, if an emergency fund and reserve fund are formed, it will be possible to continue the investment for a long time and a lot more profit will be obtained.

you are actually getting the whole picture wrong here, first you need to understand that Bitcoin price today and Bitcoin price in three years time can never be the same because this current price will definitely look like a steal then.
Secondly, you also have to put it in the back of your mind that you are not paying it back from your Bitcoin investment, you will be paying back from another source, and the installmental payment makes it very easy to pay it back bit by bit till you are done paying it.
And take note that $20k now and $20k dollar in few years time can never be the same because inflation might have eaten into it, so it's a logical decision that should be taken only when the terms and conditions of the loan is in a more favourable state, like the payment plan is spread across three years or more and the interest rate is very low.

Why I am saying all these is because even when my dad built his first house, he took a loan of 7million of the Nigerian naira from the federal government, since he was a civil servants, and the repayment plan was spread across five years, and it was deducted from his paycheck monthly, so the house was completely in just 7 months, he gave two of the rooms out for rent, since they were self contained, and the extra three bed room flat was occupied by us, so why am saying this is that, nothing that cannot be achieved if you are visionary as a person, and this can be accomplished with Bitcoin investment also, only if the terms of the loan is favourable.

[Nightwatchmare]

Well in Bitcoin investment no money is made permanent for a particular usage, the usage of this funds are not rigid but flexible and adjustable base on situation and or circumstances. There could be times when emergency fund can be used in the place of discretion fund when there is no discretion but that doesn't mean that it will remain permanent but these only happens when there is a financial difficulty or mismanagement of fund or when our source of income are whimpy. But However I don't mean to say yhat it is advisable to misplace the usage of each of this funds but we just need to know that sometimea we just need to be flexible in our investment approach in other not to follow a wrong investment approach expecialy anything that will leed to selling of Bitcoin when our target has not been met.

It is worth noting that the Emergency fund isn't as flexible as every other backup funds, such as the reserve or float funds. Tampering your emergency fund or using it to serve the purpose of the discretionary income would only mean one thing, which is endangering your Bitcoin portfolio. The Emergency Fund should in fact be treated as a rigid cushion as it is the ultimate safety net for your Bitcoin investment.
Now imagine a situation where you hit a potential DIP in the market and it's just so attractive that you feel you can't miss buying on that DIP, and maybe in the absence of a reserve fund or discretionary fund, you decide to opt for using your Emergency fund to buy the DIP (leaving your Investment defenceless and vulnerable), with intentions of replenishing it in the coming weeks, and then just after the buy, an unexpected emergency suddenly pops up. Now, there's no emergency fund in place, no reserve or float fund, you're left with nothing but your Bitcoin investment, what do you think would happen in such a case if not to dip into your investment to sort out that emergency...

The Emergency fund is just as important as your Investment and should be treated with extreme caution too, the only time one should seek the assistance of the emergency fund is when an actual emergency surfaces, anything other than that could either wait or be attended to by other backup funds. I'm not in support of the idea that the emergency fund should be considered as a flexible fund that could be extended to other areas or financial needs, except actually emergencies.

In some cases where you have exhausted your discretionary income for bitcoin investment it's not bad if an investor uses little of his emergency fund to purchase bitcoin and still make a replacement back to your emergency fund when things are alright but emergency fund shouldn't serve the purpose of discretionary income using your emergency in a one time purchase of bitcoin doesn't give you a bad method to invest in bitcoin.

Emergency funds is meant to solve your unexpected problems, so if you have exhausted your discretionary income while accumulating Bitcoin, you shouldn't attempt using your emergency funds to accumulate Bitcoin should incase you have any unexpected problem, you will always be in the right position to get it sorted out so that it will not have any negative influence in your Bitcoin process. If you accumulating Bitcoin and your discretionary income is exhausted, just be patient and wait until you receive your next salary that will enable buy Bitcoin with your discretionary income.

[Proty]

Discretionary income is meant to solve your unexpected problems[/b], so if you have exhausted your discretionary income while accumulating Bitcoin, you shouldn't attempt using your discretionary income to accumulate Bitcoin should incase you have any unexpected problem, you will .

Discretionary income is not for solving unexpected problems but rather emergency funds is what should be used for solving unexpected or unforeseen contingency. Our discretionary income is what we are supposed to invest with .using discretionary income for unexpected problems instead of emergency funds is a great misconception and a very misleading statement  . So I believe you don't really know what you are saying or is clearly a mistake on your part.

[Joeboy]

Borrowing is a financial instrument of choice. Sometimes borrowing can make you particularly financially strong. Not long ago, a Bitcoin investor I knew borrowed $1k to buy Bitcoin. At that time, Bitcoin was going through a price decline. Although his reasoning was that he would hold Bitcoin for the long term. Moreover, he had engaged in Bitcoin accumulation DCA strategy. He tried to increase his holdings by buying additional Bitcoin. Later he paid off the loan from his alternative own sources but during the bearish period the additional Bitcoin buy increased the size of his portfolio. And he remains steadfast in his long term goals.

I gave this example to show that if you have a source of timely repayment, it would be great and smart to increase your Bitcoin holdings by borrowing during bearish periods.

Yes, you can invest with a loan in one way. For example, if the market has fallen, you have money to buy aggressively. But you have kept your money in the bank but your bank account has been locked for some reason. In such a situation, you can invest with a loan if you want. But you have to know exactly how many days you can repay the loan in between

Whatever the situation is, taking loans to invest in Biitcoin is very risky.....Bitcoin as we all know is a long-term asset, and also price fluctuation is a normal part of its cycle, now if  you invest using borrowed money and the market movs against you, that investor will be left not just with losses, but also with the burden of repaying debt often with interest. Now let's use the bank scenario you talked about imagine you borrowed money from someone and promised to repay when the bank releases your funds the following week, but due to some reasons beyond their control, there was a delay (nothing is really certain with banks). If something like this happens honestly speaking as an investor you will be under a lot of pressure especially when the person you are owing begins asking for his/her money. And this pressure will definitely intoxicate you and push you into making a veryy costly decision.

That is why the safest and most sustainable way to build your Bitcoin portfolio without being pressured is to use your Discretionary Income ( not borrowed funds) to invest little by little, month after month, than to borrow a large money and expose yourself to unnecessary risks, pressure and even maybe humiliation. Over time, those small and steady investments stacks up into something tangible and meaningful...

[Showlove01]

If I am expecting money trust I will wait for as long as I can to get this money before investing in Bitcoin perhaps it wasn't a matter of life and death so i will never try borrowing to invest in Bitcoin for any reason.

I definitely appreciate your idea. Because if you are not in debt, you can be calm mentally. But those who take loans have to go through mental stress. I personally do not like taking loans if there is no need for it. However, not all investors have the same financial situation, and not all have the same mentality. If an investor is such that he is investing in Bitcoin for the long term, especially doing DCA, but suddenly for some reason Bitcoin falls drastically and at that time if he borrows money for the purpose of investing a little more with risk, it may be a good decision. However, in this case, he must understand whether he will be able to repay that money or not. If he has a different source of income, then it is not bad to take advantage of a good opportunity by borrowing money. However, this strategy does not apply to everyone. A common advice for everyone is that if the investor has a long-term DCA and can make aggressive investments with some of his discretionary income, then it is definitely acceptable. The opportunity to buy from the dip in Bitcoin will not always come, so it should be used appropriately.

Where most investors gets it wrong is from the beginning, they think that the loan will be repayed back from their Bitcoin investment, without paying attention to little details that it will be repayed back from another source.
Additionally, once it's a loan that can be paid back in installment manner, then taking a loan is not too a bad idea, especially if the interest rate is very low, because part of the borrowed money can be paid monthly once you receive your salary, before you will know it, you will be done repaying it.

Even though there is other source of income that can be used to repay loan I don't buy the idea of loaning money from someone, I don't like it for real. I will rather manage what I have available than going to loan money because some people will frustrate you once you loan money from them. One funny thing in life is that anything you try once if you don't disciplined yourself you will tend to try that particular thing again because human being is a creature of habit.

[yixichloro2xx]

I think you have very little idea about fund management. In fact, neither emergency fund nor reserve fund is formed to buy Bitcoin whatever its  DIP or not. And those who follow the DCA method and buy Bitcoin for a long term with discretionary income do not worry about the fluctuation of Bitcoin price. They only buy Bitcoin regularly. Bitcoin is for long-term investment and it is important to form a emergency fund and reserve fund because many types of financial problems can arise in daily life. If those financial problems cannot be solved, then it will not be possible to invest for a long time. Then it will be seen that Bitcoin may have to be sold to solve the financial problems. As a result, he will not get the profit that he would have gained after long-term investing.

Now it is important to know when and how to use the reserve fund and emergency funds. Suppose a person is investing regularly and suddenly he faces a financial problem. Then he will first try to solve the problem with the money he has in his hand, if that is not possible, then he will take money from the reserve fund and solve that financial problem. Now, if the financial problem is very big, like a medical treatment that requires a lot of money, then if he cannot solve it with the money from the reserve fund, then he will take money from the emergency fund and after his problem is solved, he will bring the reserve fund and the emergency fund back to their previous position by depositing the money there.Not only this, it was found that suddenly the person's income source stopped, the job was lost, then if he cannot find a job very quickly, then after his reserve fund runs out, he will be forced to take money from the emergency fund to meet his daily living expenses. If it happens that he is unable to arrange a new income for many months and his emergency fund is also exhausted, then he will sell Bitcoin as a last resort. Another important thing to keep in mind is that emergency funds and  reserve funds should never be used to buy Bitcoin whether price drop or not. Always buy Bitcoin with discretionary income.

I think a lot of people underestimate how important it is to separate emergency and reserve funds from Bitcoin buying. If you blur the lines, you end up in a situation where the first real-life problem forces you to sell Bitcoin at the wrong time, which defeats the whole purpose of long-term investing.

The way you explained the order of using cash on hand, then reserve, and only tapping the emergency fund for very serious issues makes a lot of sense. It shows that having those layers in place is what actually gives you the freedom to hold Bitcoin without panic. At the end of the day, discretionary income is the only money that should go into Bitcoin, because that’s the money you can truly afford to let sit and grow for years.

[Finebone]

If I am expecting money trust I will wait for as long as I can to get this money before investing in Bitcoin perhaps it wasn't a matter of life and death so i will never try borrowing to invest in Bitcoin for any reason.

I definitely appreciate your idea. Because if you are not in debt, you can be calm mentally. But those who take loans have to go through mental stress. I personally do not like taking loans if there is no need for it. However, not all investors have the same financial situation, and not all have the same mentality. If an investor is such that he is investing in Bitcoin for the long term, especially doing DCA, but suddenly for some reason Bitcoin falls drastically and at that time if he borrows money for the purpose of investing a little more with risk, it may be a good decision. However, in this case, he must understand whether he will be able to repay that money or not. If he has a different source of income, then it is not bad to take advantage of a good opportunity by borrowing money. However, this strategy does not apply to everyone. A common advice for everyone is that if the investor has a long-term DCA and can make aggressive investments with some of his discretionary income, then it is definitely acceptable. The opportunity to buy from the dip in Bitcoin will not always come, so it should be used appropriately.

Where most investors gets it wrong is from the beginning, they think that the loan will be repayed back from their Bitcoin investment, without paying attention to little details that it will be repayed back from another source.
Additionally, once it's a loan that can be paid back in installment manner, then taking a loan is not too a bad idea, especially if the interest rate is very low, because part of the borrowed money can be paid monthly once you receive your salary, before you will know it, you will be done repaying it.

Even though there is other source of income that can be used to repay loan I don't buy the idea of loaning money from someone, I don't like it for real. I will rather manage what I have available than going to loan money because some people will frustrate you once you loan money from them. One funny thing in life is that anything you try once if you don't disciplined yourself you will tend to try that particular thing again because human being is a creature of habit.

Their is what we call good debt, this is a loan you take to amass wealth, just like the rich do, and such loan is taken from a bank or a cooperate organization, not from an individual, the key thing to look out for is the terms and conditions for the loan, if it can be paid back in installment and it's spread out in a longer duration of time, and the interest rate is low, it's not a bad idea if you ask me, because you can pay it back with ease from your monthly salary.

[Mr_Brilliant$]

Discretionary income is meant to solve your unexpected problems, so if you have exhausted your discretionary income while accumulating Bitcoin, you shouldn't attempt using your discretionary income to accumulate Bitcoin should incase you have any unexpected problem, you will always be in the right position to get it sorted out so that it will not have any negative influence in your Bitcoin process. If you accumulating Bitcoin and your discretionary income is exhausted, just be patient and wait until you receive your next salary that will enable buy Bitcoin with your discretionary income.

It looks like there is a little mix up here, because what you are describing about solving unexpected problems actually falls under emergency funds, not discretionary income. Discretionary income is the money left after you have already taken care of your living expenses and responsibilities, and that is the portion you can freely use for things like Bitcoin investment...  If you start using that same portion to handle surprises in life, you will end up disrupting your whole investment plan without even knowing it. That is why it is always said that an emergency fund should come first, because that is the safety net that helps you deal with any unplanned issues without touching the money meant for stacking Bitcoin or any other asset..

Discretionary income is not for solving unexpected problems but rather emergency funds is what should be used for solving unexpected or unforeseen contingency. Our discretionary income is what we are supposed to invest with .using discretionary income for unexpected problems instead of emergency funds is a great misconception and a very misleading statement  . So I believe you don't really know what you are saying or is clearly a mistake on your part.

Makes sense because if people confuse these two, they will feel stuck... An emergency fund is strictly to cover those sudden problems life throws at you, hospital bills, urgent repairs, unexpected needs, while discretionary income is what should go into Bitcoin stacking..  Once you understand this difference, the path becomes easier, first build up an emergency fund to secure yourself, then whatever extra remains after your needs are met can go directly into long term Bitcoin accumulation.. That way, you are not forced to sell when things get tough, and your investment journey stays smooth no matter what happens..

[JayJuanGee]

[edited out]

I never support investing in Bitcoin by taking out a loan, whether it is in the DIP  or not. There are many logical reasons behind this. No one can accurately predict when Bitcoin will actually dip. If the price of Bitcoin seems low, then if someone takes out a loan and invests in Bitcoin, and after that the price is lower than before, he will lose comparatively. And if the price starts to decrease after taking out a Bitcoin loan and investing, then the investor will be under a lot of psychological pressure. Even if you take out a loan with an interest of 0.5% to 1%, it may seem low, but when you have to pay a lot of money on it, the amount of interest will be a lot.

If you are referring to an annualized rate, then people can ONLY dream to have loans that are that low in their interest rate.  Surely any rate that is in the ballpark of 3% annualized or lower is like free money, and anything below 6% is worth considering as long as the money is being invested in bitcoin rather than consumed, and as long as there is an  income that allows to pay back the loan within the timeline of the loan, and surely the longer the timeline of the loan the better..

Those who invest in loans when Bitcoin is in the DIP are basically gambling in the name of investment.

I would not call it gambling if they have already accounted for the terms of the loan and are able to pay back the loan no matter what the BTC price does.

When a person invests with, he definitely does not have enough money and takes out a loan and invests in Bitcoin.

It is called front loading your investment, and potentially using money that is expected to come in as income to be able to service the loan and pay it off including any extra costs of the loan, such as the interest rate which it would surely be difficult to refuse a loan that were to have a low interest rate such as 0.5% or 1% as you mentioned.

If the price of Bitcoin starts to decrease after investing and his income source stops at this time.

Your loan should not be dependent upon what the BTC price does, even though surely it is better if you are getting the loan with an expectation that the BTC price is more likely to go up rather than down during the term of the loan.

Surely, if there are potential problems with a person's income source, then he likely would not be wanting to get a loan under those kinds of circumstances, and of course, anyone could have some kind of an emergency such as a car accident or something that contributes to his not being able to work and/or his expenses going up at the same time, so it is likely that people who get loans would have back up funds for those kinds of circumstances, and people who get loans should not be people who are living on the edge and/or actually need the loans to live but instead are using loans as a way to leverage their already existing wealth.

Then he is in a lot of danger. Not only will he not be able to pay the installments regularly, but he will also be forced to sell the Bitcoin at a low price. As a result, he will not only sell the Bitcoin at a loss, he will also put himself and his entire family in an uncertain life. So do not gamble with Bitcoin by taking a loan.

I am not going to presume that guys are getting loans to invest in bitcoin when the have weak finances, so you would be correct that it would not be a good idea to get loans if you are in weak financial circumstances such as the ones that you are describing.

It would be much safer to invest the money that he used to pay for the loan as monthly installments along with interest by following the DCA. In addition, if an emergency fund and reserve fund are formed, it will be possible to continue the investment for a long time and a lot more profit will be obtained.

You are correct that bitcoin is such a great investment that there usually would not be any need to leverage it, yet I would still NOT presume that if a person already has strong finances and he is otherwise well organized in his cashflow management that he could also front load his investment with a loan, even though as you suggest, bitcoin is already a good investment, without any need to frontload.. so frontloading does bring some additional risk that the price might go down and also like you mentioned creating a situation that puts the person more vulnerable if some things go wrong with his cashflow and/or his backup cashflow systems.

By the way, many times even people who are in a good financial situation don't take loans and/or should not take loans based on loans that have unfavorable terms, so sometimes it can be difficult to find loans with reasonably favorable terms, and sure the person/institution giving the loan frequently wants to make sure that s/he is not giving out a loan that is not going to be profitable. Surely sometimes there can be circumstances in which the loan terms are favorable, and surely a loan with 0.5% to 1% annual interest would be a great loan to get, even though it is like a fantasy loan since many times loans have around 6% or greater rates and they tend to be for short term unless it might be some kind of a government subsidized loan, like the one mentioned by Barikui1... and sure, there are some other examples and/or areas in which loans might end up having favorable rates and/or terms and be advantageous to enter into.

[Showlove01]

Borrowing money to invest in Bitcoin is not a wise move at all, in fact it is one of the fastest ways to put yourself in a trap…. Bitcoin is already volatile on its own, it does not need the added pressure of a loan with interest eating into your back.. When you borrow to buy Bitcoin, you’re not only risking your Bitcoin stack, you are also risking your ability to hold through the dips.. Instead of stacking and building calmly, you will always be under pressure to pay back, and that pressure can force you to sell your coins at the worst possible time..

I think that you are not getting the point here, it's not a wrong decision entirely to invest in Bitcoin with a borrowed money, and you first of all needs to kill that notion that you will be paying back from your Bitcoin investment, no. The terms and conditions of the loan is what's going to determine if it's suited to take an invest  or not.
If you have the opportunity to take a loan of $20k  that can be paid installmentally across three years with a loan interest of 0.5% or 0.6% why not? Because to the best of my knowledge, you can easily repay back that loan from your paycheck once it comes, bit by bit for three years, and you can be rest assured that Bitcoin will always outperform any interest rate attached to the loan, so what are you saying?
So as long as you are paying it back installmentally across three years or more, and you are paying it back from another source, it's an opportunity not to miss especially if you took it and buy during the dip.

There is no doubt that we are all entitled to our own opinion. However I believe it is wrong to borrow money to invest in bitcoin when you are expecting any money to sort out the loan. Investing in bitcoin for a short or a long term is not a guarantee that our investment is going to be successful at the end so it will be wise if we invest from our discretionary income to avoid the stress and pressure that will come when we are unable to pay back the borrowed money. Borrowing money to invest in bitcoin is not a bad idea but thinking of paying installmentaly is something I don't really support , if you are expecting money from where and decide to borrow to invest in bitcoin and then pay back the borrowed when the expected income arrived then it isn't a bad idea.

I am one among those who dislike being indebted and I value my peace of mind so much, personally I will not borrow money to invest in Bitcoin with the expectation of paying back no matter how sure the plan of paying back can be I will not do such thing, I will always prefer doing things to ease my temperament at every given time, now the question is what is reason for the borrowing money to invest in Bitcoin when you have a long term plans ahead of you?  If I am expecting money trust I will wait for as long as I can to get this money before investing in Bitcoin perhaps it wasn't a matter of life and death so i will never try borrowing to invest in Bitcoin for any reason.

A lot of people don't like borrowing but then again there situation one would find himself or herself, borrowing will be a very nice and good option. Just imagine a scenario where you have several sources of income and you are expecting something very huge from there and you saw the price of Bitcoin down, as an investor with a vision to accumulate and grow your portfolio you wouldn't want to wait till what you are expecting  to arrive rather you would look for a way to get money and take advantage of the opportunity because it maybe long you will see such opportunity again and in this situation I don't see borrowing as wrong unless you don't have any source of income and you are not expecting something anytime soon.

[Zackz5000]

There are various ways to consider a loan, and surely any loan will have terms that cause it to cost money, and surely if the loan has favorable terms in regards to length of time and/or fees, then it could be worth while to enter.  A loan can be used as a way to frontload an investment into bitcoin with income that has not yet come in.  You should be able to pay off the loan no matter if bitcoin performs well or not during the term of the loan. 

If bitcoin performs poorly then you might realize that the loan did not work to your advantage, and you would have had done better to just invest with your normal income and you would not have had to have had paid the fees.

If bitcoin performs well during the term of the loan, then of course, you will feel like a genius that you were able to buy more bitcoin than you otherwise would have had been able to buy through your regular income.

The main things are the fees, the term of the loan and your ability to pay back the loan, even if bitcoin goes to zero during the duration of the loan.

Your break down about opting for a loan to invest in Bitcoin is understandable, first of all we should know that Bitcoin is a volatile asset and also a long time investment so we shouldn't hope on our Bitcoin investment to pay back our loan there should be a different means to pay back and not hope on our Bitcoin investment.

The ability to pay back is really what matters no matter the outcome of our Bitcoin investment one should not borrow money if the hope of paying back is through your Bitcoin investment it is better not borrow because you won't like your self when the time to pay back has exceed.

[Proty]

There are various ways to consider a loan, and surely any loan will have terms that cause it to cost money, and surely if the loan has favorable terms in regards to length of time and/or fees, then it could be worth while to enter.  A loan can be used as a way to frontload an investment into bitcoin with income that has not yet come in.  You should be able to pay off the loan no matter if bitcoin performs well or not during the term of the loan. 

If bitcoin performs poorly then you might realize that the loan did not work to your advantage, and you would have had done better to just invest with your normal income and you would not have had to have had paid the fees.

If bitcoin performs well during the term of the loan, then of course, you will feel like a genius that you were able to buy more bitcoin than you otherwise would have had been able to buy through your regular income.

The main things are the fees, the term of the loan and your ability to pay back the loan, even if bitcoin goes to zero during the duration of the loan.

Your break down about opting for a loan to invest in Bitcoin is understandable, first of all we should know that Bitcoin is a volatile asset and also a long time investment so we shouldn't hope on our Bitcoin investment to pay back our loan there should be a different means to pay back and not hope on our Bitcoin investment.

The ability to pay back is really what matters no matter the outcome of our Bitcoin investment one should not borrow money if the hope of paying back is through your Bitcoin investment it is better not borrow because you won't like your self when the time to pay back has exceed.

Definitely borrowing money to invest in bitcoin with the hope of paying back from the profit our investment will yield is very lame idea. Bitcoin is a volatile coin an as such it won't really be a nice idea to be hoping of making quick profit from bitcoin in other to salvage our loan . In other not incur unnecessary debt it will be wise not borrow money to invest in bitcoin if we are sure or certain of the means of getting money to pay back.

[Bigjoe33]

A lot of people don't like borrowing but then again there situation one would find himself or herself, borrowing will be a very nice and good option. Just imagine a scenario where you have several sources of income and you are expecting something very huge from there and you saw the price of Bitcoin down, as an investor with a vision to accumulate and grow your portfolio you wouldn't want to wait till what you are expecting  to arrive rather you would look for a way to get money and take advantage of the opportunity because it maybe long you will see such opportunity again and in this situation I don't see borrowing as wrong unless you don't have any source of income and you are not expecting something anytime soon.

Well, your points are clear, but I will still maintain that the issue of borrowing here in the instance you gave becomes personal and based on individual differences. From your example, according to you, that borrowing at that point wouldn't be a bad idea, well, that's for you and for some who wouldn't see it as a bad idea. But in my idea, I wouldn't even think of it, because I don't support of advise borrowing to invest. I wouldn't want to jeopardise my peace of mind or at my pace investment journey all in the name of buying the Dip.  I would rather do my investment as I have planned with my available discretionary income rather than borrow and hoping to clear the debts with payslips that not at hand.

What if your sure income doesn't come through just as you expected? What if the pay slip comes in and an unexpected happenes that needs urgent financial demands higher than it used to be, let's say a fatal accident or a fire outbreak? Just what if? You know life is really unpredictable. Nobody knows the next minute or next happening. Therefore, spending or using up money not at hand for investment with hopes that it will surely come, and it will be used to upset the bills isn't a right financial decision in my own opinion. Planning with what is at hand I feel is better and more safer for an investor, because this makes you the master of your investment and not a mare spectator because you have purchased aggressively during the Dip, but a debtor.

Buying the Dip is very much okayed but it should be with that funds which an investor has kept aside for such buying when situation presents its self. Like I said, this gives you peace of mind and allow you to buy at your own pace, and if any inconveniences arises, you are sure you aren't answerable to anyone since you only bought the Dip from your international savings using your discretionary