Balancing Financial security and Bitcoin Accumulation

[Alonso_]

. I agree with you. It’s never a good decision to borrow in order to invest in bitcoin. Bitcoin investment shouldn’t come with pressure, rather when all your essential bills are being taken care of, then you can invest with what’s left in order not to panic so much when Bitcoin dips. Instead of borrowing to buy Bitcoin, you rather buy small amounts either on a weekly or monthly basis, and keep accumulate for some couple of years.

Well there is nothing essential with borrowing money to invest into bitcoin, but I really think that if we feel comfortable with borrowing money to invest in bitcoin that would be a very big problem for us, and also if we have a means of paying back our loans which I think isn’t a very big problem, the only problem I think is when we can’t even pay our loans or a means of paying back does it mean that we have no choice but to access our Bitcoin, which wouldn’t be a very good plan if we didn’t have a means of paying our loans or mortgage.

Instead we can keep accumulating little by little with our discretionary income.

[GIF-JOBS]

I think the only way I can advise someone to take a loan to invest in an assets that is highly volatile as bitcoin is only if the individual is not relying on his bitcoin investment to repay the loan if not, it’s never a good investment decision to get a loan to use and invest in an asset highly volatile as bitcoin with the hope that you’ll be able to get back that money from your bitcoin holdings to repay back the loan. At that instant, you’re no longer investing but gambling.

I agree with you, since the market is always very volatile, and the future is uncertain, it is definitely a bad decision to invest with debt, especially if he is only relying on the success of his investment to repay that debt. No one can guarantee that the market will be in your favor in the future, so since everything is uncertain, you must be careful in investing, you must use money that you can afford to lose, because you will never be guaranteed success.

[Proty]

If you can invest without loan money, then the market volatility will not touch you.

The market volatility is part of Bitcoin, and whether you invest in Bitcoin with your discretionary income or with borrowed money, you can't totally avoid the market volatility because it happens from time to time. But you can only reduce the market volatility in your Bitcoin investment if you are accumulating Bitcoin with the DCA strategy because the DCA strategy allows you to buy Bitcoin at different intervals. If the Bitcoin price drops, the DCA strategy will allow you to buy Bitcoin at that time, and it will help to reduce the market volatility in your Bitcoin investment.

In this case, that's why it's not advisable for someone to invest in Bitcoin with borrowed money. Because the market can change at any time, and once the market changes, the person can definitely lose the money they invest in the bitcoin, and the moment he/she loses all their money, they face so many challenges because they will give them time from when they take this loan, and once the time is reached, they are not going to take any excuse.

That is why it is good for anyone who has an interest in investing in Bitcoin; they should wait for the right time then go and borrow money, which is a big risk, but they will think that it will favor them. The bitcoin investment is open for each and everyone, both those that have enough money to start and those that have a little amount of money, and since the DCA method is one of the best strategies, it has become easy to accumulate bitcoin with any amount of money.

it is important to start buying bitcoin when the needed discretionary income is available. Borrowing money to start buying bitcoin is a very wrong idea and is not something I will advise anyone to indulge on. Many may have this idea of taking profits from there investment in other to repay the borrowed money , this may not go as they plan and they have failed to understand the volatile nature of bitcoin and the fact that bitcoin investment is not a short term investment. The only scenario were I think an investor can borrow money is , maybe there is a dips and the investor wants to use the opportunity to front load his investment , the investor can borrowed money and then pay back with an anticipated income either from the investor cash flow or money the investor is expecting.

[gracreavix]

If you can invest without loan money, then the market volatility will not touch you.

The market volatility is part of Bitcoin, and whether you invest in Bitcoin with your discretionary income or with borrowed money, you can't totally avoid the market volatility because it happens from time to time. But you can only reduce the market volatility in your Bitcoin investment if you are accumulating Bitcoin with the DCA strategy because the DCA strategy allows you to buy Bitcoin at different intervals. If the Bitcoin price drops, the DCA strategy will allow you to buy Bitcoin at that time, and it will help to reduce the market volatility in your Bitcoin investment.

In this case, that's why it's not advisable for someone to invest in Bitcoin with borrowed money. Because the market can change at any time, and once the market changes, the person can definitely lose the money they invest in the bitcoin, and the moment he/she loses all their money, they face so many challenges because they will give them time from when they take this loan, and once the time is reached, they are not going to take any excuse.

That is why it is good for anyone who has an interest in investing in Bitcoin; they should wait for the right time then go and borrow money, which is a big risk, but they will think that it will favor them. The bitcoin investment is open for each and everyone, both those that have enough money to start and those that have a little amount of money, and since the DCA method is one of the best strategies, it has become easy to accumulate bitcoin with any amount of money.

In my opinion, using borrowed money to purchase Bitcoin is just too risky.. Any time the market drops, you risk not only losing your investment but also being unable to avoid debt..  Beginning with your own funds, even if it's just a little, is far safer..
Anybody can accumulate Bitcoin without feeling under pressure by using the DCA method..  If the market moves against you, you would not have to worry about a loan...

[Joeboy]

If you can invest without loan money, then the market volatility will not touch you.

The market volatility is part of Bitcoin, and whether you invest in Bitcoin with your discretionary income or with borrowed money, you can't totally avoid the market volatility because it happens from time to time. But you can only reduce the market volatility in your Bitcoin investment if you are accumulating Bitcoin with the DCA strategy because the DCA strategy allows you to buy Bitcoin at different intervals. If the Bitcoin price drops, the DCA strategy will allow you to buy Bitcoin at that time, and it will help to reduce the market volatility in your Bitcoin investment.

In this case, that's why it's not advisable for someone to invest in Bitcoin with borrowed money. Because the market can change at any time, and once the market changes, the person can definitely lose the money they invest in the bitcoin, and the moment he/she loses all their money, they face so many challenges because they will give them time from when they take this loan, and once the time is reached, they are not going to take any excuse.

That is why it is good for anyone who has an interest in investing in Bitcoin; they should wait for the right time then go and borrow money, which is a big risk, but they will think that it will favor them. The bitcoin investment is open for each and everyone, both those that have enough money to start and those that have a little amount of money, and since the DCA method is one of the best strategies, it has become easy to accumulate bitcoin with any amount of money.

In my opinion, using borrowed money to purchase Bitcoin is just too risky..

on the idea of borrowed money being too risky, here is what you have to note, everything in this life has its own risk, I hope you also know that investing in Bitcoin even without borrowed funds, is not entirely risk free... That is why as an investor you shouldn't be avoiding or running away from something just coz of it risk, rather he/she should should look for ways to manage and properly reduce this risk.

so for me here is what I will concludee with:: Taking loans to invest in Bitcoin is not totally a wrong thing to do, but then it is not for everybody either. Taking a loan can be for those who in addition to their DCA method, plans to Invest aggressively during the dip, but then already has a stable income that brings in enough cashflow and are not depending on Bitcoin profit to pay back the loan.  But then taking a loan to invest are not for those are still struggling with their cashflow, this is coz when the price of Bitcoin drops even for a bit, they can be messed up pretty badly both emotionally and financially and may still even end up selling at a loss just to repay the loan.

[JayJuanGee]

Pardon my ignorance, but what is the difference between discretionary funds and income.

Income is the amount of money you received for a work done, while discretionary income is the leftover money from your income after you have solved your weekly or monthly expenses.

I don't think that you explained this in a better understanding or in the right manner.
He asked what's the difference between a discretionary income and a discretionary funds.
In my own understanding they are basically the same thing, just that for continuous investment in bitcoin, for consistent accumulation you call it income, but that moment it's available that you want to invest it in bitcoin, it's called discretionary funds.
I would really be pleased if sir jayjuangee comes and throw more light on this for a better understanding if he wishes.

You are largely correct in your description of the difference between discretionary income and discretionary funds Finebone.

Discretionary income and discretionary funds is almost the same thing, and guys might use those kinds of terms interchangably.

However, if we want to be nerdy about it.  Income is a flow of money, so if you have discretionary income, then you regularly have a flow of income in which you have extra money after paying expenses.

Discretionary funds merely refers to a snapshot situation, and you can determine how much extra money that you have at any particular moment - how much extra do you have that you can do whatever you want with it, and discretionary funds does not necessarily account for whether or not you have more money coming to you in the future.

So we could refer to one or the other and they have slightly different meanings, yet in the real world application of language some guys might mix them up.  I know that sometimes I will talk about discretionary income even when I am really talking about discretionary funds.  Sometimes it won't matter unless we are trying to make a certain kind of point.  I know that many times, in this thread, we have been arguing about how financially prepared a guy needs to be to get started investing in bitcoin, and surely a guy will be better off to invest in bitcoin and to have confidence that he does not need the money that he is spending for his future expenses if he has ongoing income coming every week or every month, rather than a guy who is not sure about his future cashflows and/or if he is able to generate additional income in the future. 

Many times guys who are unsure about their future income, they will be careful in getting started investing in bitcoin (or anything else) because they are not sure about their future income, and even though several of us emphasize getting started investing in bitcoin as soon as possible, each guy still has to determine how much of a priority he is going to give to investing in bitcoin and even making sure that he is not going to put himself ino a position in which he is going to be forced to sell some or all of his bitcoin at a time that is not of his choosing and to even put cashflow management systems in place so that he will be able to invest in bitcoin for 4-10 years or longer, and for poor people, it can be difficult to make commitments (and even give priorities) to bitcoin to be able to sustain their investment and not to be tempted to tap into their bitcoin while they are still building it.

I suspect that if guys are not investing more than 10% of their income into bitcoin, then it becomes quite unlikely that they are going to reach overaccumulation status in less than 10 years.. yet at the same time, guys do not need to reach overaccumulation status in order to have great likely chances of profiting from having had invested into bitcoin, even if they might not end up reaching their ultimate goal of getting to either overaccumulation status or fuck you status.

[Finebone]

You are largely correct in your description of the difference between discretionary income and discretionary funds Finebone.

Discretionary income and discretionary funds is almost the same thing, and guys might use those kinds of terms interchangably.

However, if we want to be nerdy about it.  Income is a flow of money, so if you have discretionary income, then you regularly have a flow of income in which you have extra money after paying expenses.

Discretionary funds merely refers to a snapshot situation, and you can determine how much extra money that you have at any particular moment - how much extra do you have that you can do whatever you want with it, and discretionary funds does not necessarily account for whether or not you have more money coming to you in the future.

So we could refer to one or the other and they have slightly different meanings, yet in the real world application of language some guys might mix them up.  I know that sometimes I will talk about discretionary income even when I am really talking about discretionary funds.  Sometimes it won't matter unless we are trying to make a certain kind of point.  I know that many times, in this thread, we have been arguing about how financially prepared a guy needs to be to get started investing in bitcoin, and surely a guy will be better off to invest in bitcoin and to have confidence that he does not need the money that he is spending for his future expenses if he has ongoing income coming every week or every month, rather than a guy who is not sure about his future cashflows and/or if he is able to generate additional income in the future. 

Many times guys who are unsure about their future income, they will be careful in getting started investing in bitcoin (or anything else) because they are not sure about their future income, and even though several of us emphasize getting started investing in bitcoin as soon as possible, each guy still has to determine how much of a priority he is going to give to investing in bitcoin and even making sure that he is not going to put himself ino a position in which he is going to be forced to sell some or all of his bitcoin at a time that is not of his choosing and to even put cashflow management systems in place so that he will be able to invest in bitcoin for 4-10 years or longer, and for poor people, it can be difficult to make commitments (and even give priorities) to bitcoin to be able to sustain their investment and not to be tempted to tap into their bitcoin while they are still building it.

Thank you sir for doing a detailed explanation on the slight difference between a discretionary income and a discretionary funds, and I hope OsaiEmma will understand better on when to use the terms discretionary funds and discretionary income.
You have really been helpful and I really do appreciate your efforts in educating we the newbies and naija community in this Bitcointalk forum on bitcoin and anything related to investment in bitcoin, you have really a blessing to the forum and to us in the naija local board, we really do appreciate, thank you.

[liasbaa]

If you can invest without loan money, then the market volatility will not touch you.

The market volatility is part of Bitcoin, and whether you invest in Bitcoin with your discretionary income or with borrowed money, you can't totally avoid the market volatility because it happens from time to time. But you can only reduce the market volatility in your Bitcoin investment if you are accumulating Bitcoin with the DCA strategy because the DCA strategy allows you to buy Bitcoin at different intervals. If the Bitcoin price drops, the DCA strategy will allow you to buy Bitcoin at that time, and it will help to reduce the market volatility in your Bitcoin investment.

In this case, that's why it's not advisable for someone to invest in Bitcoin with borrowed money. Because the market can change at any time, and once the market changes, the person can definitely lose the money they invest in the bitcoin, and the moment he/she loses all their money, they face so many challenges because they will give them time from when they take this loan, and once the time is reached, they are not going to take any excuse.

That is why it is good for anyone who has an interest in investing in Bitcoin; they should wait for the right time then go and borrow money, which is a big risk, but they will think that it will favor them. The bitcoin investment is open for each and everyone, both those that have enough money to start and those that have a little amount of money, and since the DCA method is one of the best strategies, it has become easy to accumulate bitcoin with any amount of money.

In my opinion, using borrowed money to purchase Bitcoin is just too risky.. Any time the market drops, you risk not only losing your investment but also being unable to avoid debt..  Beginning with your own funds, even if it's just a little, is far safer..
Anybody can accumulate Bitcoin without feeling under pressure by using the DCA method..  If the market moves against you, you would not have to worry about a loan...

If you are new to investing, you should not buy Bitcoin with borrowed money. Honestly, because you are still in the early stages of Bitcoin and you have more to learn. I think experienced or semi-experienced investors can buy Bitcoin with borrowed money. If they are regularly accumulating Bitcoin using the DCA method. Investors who regularly do DCA are knowledgeable about the Bitcoin market and the rise and fall of the price. Those regular investors know when to buy aggressively. By being aware of the repayment period, they continue to increase their Bitcoin holding in the long term.

[Qhunman]

Pardon my ignorance, but what is the difference between discretionary funds and income.

Income is the amount of money you received for a work done, while discretionary income is the leftover money from your income after you have solved your weekly or monthly expenses.

I don't think that you explained this in a better understanding or in the right manner.
He asked what's the difference between a discretionary income and a discretionary funds.
In my own understanding they are basically the same thing, just that for continuous investment in bitcoin, for consistent accumulation you call it income, but that moment it's available that you want to invest it in bitcoin, it's called discretionary funds.
I would really be pleased if sir jayjuangee comes and throw more light on this for a better understanding if he wishes.

You are largely correct in your description of the difference between discretionary income and discretionary funds Finebone.

Discretionary income and discretionary funds is almost the same thing, and guys might use those kinds of terms interchangably.

However, if we want to be nerdy about it.  Income is a flow of money, so if you have discretionary income, then you regularly have a flow of income in which you have extra money after paying expenses.

Discretionary funds merely refers to a snapshot situation, and you can determine how much extra money that you have at any particular moment - how much extra do you have that you can do whatever you want with it, and discretionary funds does not necessarily account for whether or not you have more money coming to you in the future.

So we could refer to one or the other and they have slightly different meanings, yet in the real world application of language some guys might mix them up.  I know that sometimes I will talk about discretionary income even when I am really talking about discretionary funds.  Sometimes it won't matter unless we are trying to make a certain kind of point.  I know that many times, in this thread, we have been arguing about how financially prepared a guy needs to be to get started investing in bitcoin, and surely a guy will be better off to invest in bitcoin and to have confidence that he does not need the money that he is spending for his future expenses if he has ongoing income coming every week or every month, rather than a guy who is not sure about his future cashflows and/or if he is able to generate additional income in the future.  

Many times guys who are unsure about their future income, they will be careful in getting started investing in bitcoin (or anything else) because they are not sure about their future income, and even though several of us emphasize getting started investing in bitcoin as soon as possible, each guy still has to determine how much of a priority he is going to give to investing in bitcoin and even making sure that he is not going to put himself ino a position in which he is going to be forced to sell some or all of his bitcoin at a time that is not of his choosing and to even put cashflow management systems in place so that he will be able to invest in bitcoin for 4-10 years or longer, and for poor people, it can be difficult to make commitments (and even give priorities) to bitcoin to be able to sustain their investment and not to be tempted to tap into their bitcoin while they are still building it.

I suspect that if guys are not investing more than 10% of their income into bitcoin, then it becomes quite unlikely that they are going to reach overaccumulation status in less than 10 years.. yet at the same time, guys do not need to reach overaccumulation status in order to have great likely chances of profiting from having had invested into bitcoin, even if they might not end up reaching their ultimate goal of getting to either overaccumulation status or fuck you status.

Sir your explanation about Discretional income and Discretional fund is well understood. I have been longing to know this for some time now and I really appreciate learning it from you. Finebone and liasbaa also did well to explain in a shorter terms for the sake of Newbies. I believe I still have a lot to learn from you. I also agree with you that a poor person investing in Bitcoin will find it difficult  maintaining his investment for the long term because having a strong inflow of discretional income to maintain his Bitcoin investment will be very difficult for him to secure. And when his personal needs starts growing higher in demand above what his income can handle, he will tempted to tamper with his Bitcoin portfolio.

[Silikiem]

If you can invest without loan money, then the market volatility will not touch you.

The market volatility is part of Bitcoin, and whether you invest in Bitcoin with your discretionary income or with borrowed money, you can't totally avoid the market volatility because it happens from time to time. But you can only reduce the market volatility in your Bitcoin investment if you are accumulating Bitcoin with the DCA strategy because the DCA strategy allows you to buy Bitcoin at different intervals. If the Bitcoin price drops, the DCA strategy will allow you to buy Bitcoin at that time, and it will help to reduce the market volatility in your Bitcoin investment.

In this case, that's why it's not advisable for someone to invest in Bitcoin with borrowed money. Because the market can change at any time, and once the market changes, the person can definitely lose the money they invest in the bitcoin, and the moment he/she loses all their money, they face so many challenges because they will give them time from when they take this loan, and once the time is reached, they are not going to take any excuse.

That is why it is good for anyone who has an interest in investing in Bitcoin; they should wait for the right time then go and borrow money, which is a big risk, but they will think that it will favor them. The bitcoin investment is open for each and everyone, both those that have enough money to start and those that have a little amount of money, and since the DCA method is one of the best strategies, it has become easy to accumulate bitcoin with any amount of money.

In my opinion, using borrowed money to purchase Bitcoin is just too risky.. Any time the market drops, you risk not only losing your investment but also being unable to avoid debt..  Beginning with your own funds, even if it's just a little, is far safer..
Anybody can accumulate Bitcoin without feeling under pressure by using the DCA method..  If the market moves against you, you would not have to worry about a loan...

If you are new to investing, you should not buy Bitcoin with borrowed money. Honestly, because you are still in the early stages of Bitcoin and you have more to learn. I think experienced or semi-experienced investors can buy Bitcoin with borrowed money. If they are regularly accumulating Bitcoin using the DCA method. Investors who regularly do DCA are knowledgeable about the Bitcoin market and the rise and fall of the price. Those regular investors know when to buy aggressively. By being aware of the repayment period, they continue to increase their Bitcoin holding in the long term.

Borrowing money to invest in an asset as highly volatile as bitcoin isn’t a good investment idea for me especially if the individual is also relying on his bitcoin holdings or investment for the repayment of such loan. Weather experienced or inexperienced investor, it’s not a good investment advice or strategy to borrow money to invest in bitcoin knowing fully well that bitcoin is very volatile and at the same time you’re also relying on it for the repayment of the loan. Nothing is guaranteed in bitcoin, you never can tell what will happen next with the price of bitcoin if it’s going to rise or even go down more lower. You might be forced to sell at a huge loss When the date for the repayment is due because at that time the price might be lower due to the volatility of bitcoin and if that happens then what you’re only doing is gambling and no longer investing. The only time I can advise someone to borrow money to invest in bitcoin is if the person is honestly sure that he’s not dependent on his bitcoin investment or holding to repay back the money.

[ASloveapg]

Borrowing money to invest in an asset as highly volatile as bitcoin isn’t a good investment idea for me especially if the individual is also relying on his bitcoin holdings or investment for the repayment of such loan. Weather experienced or inexperienced investor, it’s not a good investment advice or strategy to borrow money to invest in bitcoin knowing fully well that bitcoin is very volatile and at the same time you’re also relying on it for the repayment of the loan. Nothing is guaranteed in bitcoin, you never can tell what will happen next with the price of bitcoin if it’s going to rise or even go down more lower. You might be forced to sell at a huge loss When the date for the repayment is due because at that time the price might be lower due to the volatility of bitcoin and if that happens then what you’re only doing is gambling and no longer investing. The only time I can advise someone to borrow money to invest in bitcoin is if the person is honestly sure that he’s not dependent on his bitcoin investment or holding to repay back the money.

It is not a wise decision to borrow money to invest in such a volatile asset as Bitcoin, and especially if you do not have a separate mechanism for repaying the loan, when investing with debt you are also taking on the additional burden of repaying the loan. The price of Bitcoin can turn around at any time, just like it suddenly dropped from $122K to $102K yesterday, and it is very natural to panic in such times, and especially if you have invested with debt, you can easily make the wrong decisions during such deep volatility.
You may think that it will fall further, thinking that you will then decide to sell your holdings despite the loss, which will cause you financial loss. But if you have invested with the amount of money you can afford to lose, then you do not have to panic and sell during this period of volatility, but rather your panic will not be too great, because you have invested with the amount of money you can afford to lose. Therefore, one must be careful when making decisions, Investing with debt can only be considered when one is sure that there is no dependence on this investment to repay the debt, otherwise it can be one of the biggest financial mistakes.

[icebar]

If you are new to investing, you should not buy Bitcoin with borrowed money. Honestly, because you are still in the early stages of Bitcoin and you have more to learn. I think experienced or semi-experienced investors can buy Bitcoin with borrowed money. If they are regularly accumulating Bitcoin using the DCA method. Investors who regularly do DCA are knowledgeable about the Bitcoin market and the rise and fall of the price. Those regular investors know when to buy aggressively. By being aware of the repayment period, they continue to increase their Bitcoin holding in the long term.

Investing in Bitcoin requires long-term investment. If a new investor buys Bitcoin using borrowed money and for some reason cannot repay the money, then at some point he may have to withdraw money from the Bitcoin investment and repay it. Which can be a cause of loss for him. Because if short-term investment is made, the possibility of loss in Bitcoin investment increases. Moreover, continuous investment requires discretionary income. Those who have discretionary income can sometimes invest aggressively if they have the opportunity, according to their ability. Investing can also be done by borrowing, especially those investors who can easily repay the money, which will not hinder their Bitcoin investment in any way. For beginners, the best strategy is to invest long-term by following DCA.

[Futurexxx]

If you are new to investing, you should not buy Bitcoin with borrowed money. Honestly, because you are still in the early stages of Bitcoin and you have more to learn. I think experienced or semi-experienced investors can buy Bitcoin with borrowed money. If they are regularly accumulating Bitcoin using the DCA method. Investors who regularly do DCA are knowledgeable about the Bitcoin market and the rise and fall of the price. Those regular investors know when to buy aggressively. By being aware of the repayment period, they continue to increase their Bitcoin holding in the long term.

I agree with your sentiment because all you said here are true, borrowing money to invest in Bitcoin is not a bad idea entirely, but if you are a new Investor, it is not encouraged because you may not know what and what is needed to protect your investment from the loan taken.

Additionally, as a new Investor, you might feel pressure while investing which is not a good thing and if not properly managed, you might self off prematurely just because you don't know when a loan should be taken to front load your Bitcoin accumulation or leverage on a situation, so I will never advice a newbie investors to borrow money to invest in Bitcoin because it's self destruct if he does

[Abelly]

Yes not having a stable source of income shouldn't impede us from investing in bitcoin as long as the needed discretionary income is available. The most important thing is if the needed discretionary income is there. Just like you said having a stable source of income doesn't mean that the needed discretionary income will be available. Therefore the most important thing is to know if we have the discretionary income to invest with ,as for having a stable source of income we can work towards it . We can stabilise our source of income while investing in bitcoin .

To invest, our source of income does not have to be stable. A person can have any source of income, if he can find a discretionary one through proper financial management, then he can start investing.

Let me give you a real example, there was a person in our area who was a daily wage earner. He used to stand at a place and if someone liked him, someone would call him for work. You cannot call this work of his as a stable income. He can invest even if he wants to, he can invest with the amount of money left after paying all the expenses from his main income. A stable income is not something that is needed for investing. A discretionary income is needed for investing.

I agree with what you said, because if you want to invest, you have to invest with the income that comes with your job, because if you want to invest, you can't invest with the funds that you get from my job, you need residual income!

[Abelly]

I think keeping money in cash for the emergency fund is the best way. Because many times it is seen that we need money very urgently. At that time, we do not get money if we keep it in the bank. Again, many times it is seen that our bank account gets locked or damaged. If we need money immediately at that time, we have to take a loan from somewhere at that time and if we do not get a loan, we may have to sell our holdings. I think it's a good idea to keep cash in an emergency fund.

If you can keep assets other than an emergency fund, it would be better. You can buy them for a small amount and sell them at a higher price, such as gold or Bitcoin. You put them away for a small amount. Suddenly, you need emergency cash after 2/3 months. You sell them from there. You have invested, and then you have some profit!

[Barikui1]

If you can keep assets other than an emergency fund, it would be better. You can buy them for a small amount and sell them at a higher price, such as gold or Bitcoin. You put them away for a small amount. Suddenly, you need emergency cash after 2/3 months. You sell them from there. You have invested, and then you have some profit!

I understand what you are trying to say and I think that you are wrong about it, keeping your emergency funds in asset like Bitcoin or gold as you suggested is wrong because the market might dip very badly and by then, their may be a pressing emergencies that is threatening your Bitcoin holdings, so in such a scenario you will likely sell that your emergency funds that is in  an asset at a loss because the market might be down then,  and sometimes it may even take you longer time to sell it off, so the best way to keep your emergency funds is in fiat, so that you can react fast to any emergencies that threatens your Bitcoin investment.

[Qhunman]

I think keeping money in cash for the emergency fund is the best way. Because many times it is seen that we need money very urgently. At that time, we do not get money if we keep it in the bank. Again, many times it is seen that our bank account gets locked or damaged. If we need money immediately at that time, we have to take a loan from somewhere at that time and if we do not get a loan, we may have to sell our holdings. I think it's a good idea to keep cash in an emergency fund.

If you can keep assets other than an emergency fund, it would be better. You can buy them for a small amount and sell them at a higher price, such as gold or Bitcoin. You put them away for a small amount. Suddenly, you need emergency cash after 2/3 months. You sell them from there. You have invested, and then you have some profit!

Looks like you haven't been following Sir@JJG teachings about the risks of investing your emergency fund in Bitcoin because if you had,you would have known by now that your Emergency fund is not to be tamper with unless for Emergency situations. My instinct tells me you're a trader and not an investor because your statements says a lot about you. Let me make it clear to you,if you're buying Bitcoin and after some 2/3 months pass and you sell it for some profits,then you're trading and not investing. Investors in Bitcoin are the long term Holders that buys Bitcoin from their discretional incomes & Hodl to allow it appreciate over time for the long term. If you have been following recent Crypto headlines/news, traders have been committing suicide due to the market crashed. I think all this Shit wouldn't have happened in the first place if they had invested rightly by investing in Bitcoin for the long term rather than trading. The mental & Emotional stress associated with market could have been avoided if they had invested for the long term. I am going to advice you because it is for your own good that you stop trading your Bitcoin for quicker profits . Rather than selling, Invest consistently & Hodl for the long term.

[Showlove01]

I think keeping money in cash for the emergency fund is the best way. Because many times it is seen that we need money very urgently. At that time, we do not get money if we keep it in the bank. Again, many times it is seen that our bank account gets locked or damaged. If we need money immediately at that time, we have to take a loan from somewhere at that time and if we do not get a loan, we may have to sell our holdings. I think it's a good idea to keep cash in an emergency fund.

If you can keep assets other than an emergency fund, it would be better. You can buy them for a small amount and sell them at a higher price, such as gold or Bitcoin. You put them away for a small amount. Suddenly, you need emergency cash after 2/3 months. You sell them from there. You have invested, and then you have some profit!

You are been so myopic in terms of thinking and reasoning and I will advise you stop it and start thinking and reasoning outside the box else you will end up not having a reasonable thing in your possession. Bitcoin is not something you will buy now and sell in the next month because of little increment in its value that is wrong, you should have the mentality of long term so that you will be among those folks that will celebrate and jubilate in years coming and don't allow any small thing you are seeing now make you not to get something big in time coming, you just need to be patient and stay focus.

[Umulala-alala]

I think keeping money in cash for the emergency fund is the best way. Because many times it is seen that we need money very urgently. At that time, we do not get money if we keep it in the bank. Again, many times it is seen that our bank account gets locked or damaged. If we need money immediately at that time, we have to take a loan from somewhere at that time and if we do not get a loan, we may have to sell our holdings. I think it's a good idea to keep cash in an emergency fund.

If you can keep assets other than an emergency fund, it would be better. You can buy them for a small amount and sell them at a higher price, such as gold or Bitcoin. You put them away for a small amount. Suddenly, you need emergency cash after 2/3 months. You sell them from there. You have invested, and then you have some profit!

I tried to understand your first write up but couldn't, but from your second sentence i understand you are saying we should buy bitcoin when the price is low and sell when it increase to make profit but this is a wrong way or method to invest in BTC mostly as a new investor buying low and selling when price increase are done by traders as a bitcoin investor we should plan for a long term we should buy and hold bitcoin till we have reached our accumulation stage before we could think of selling some part and still buy and hodl than chasing minor profit.

[cxtreenal]

If you can keep assets other than an emergency fund, it would be better. You can buy them for a small amount and sell them at a higher price, such as gold or Bitcoin. You put them away for a small amount. Suddenly, you need emergency cash after 2/3 months. You sell them from there. You have invested, and then you have some profit!

I understand what you are trying to say and I think that you are wrong about it, keeping your emergency funds in asset like Bitcoin or gold as you suggested is wrong because the market might dip very badly and by then, their may be a pressing emergencies that is threatening your Bitcoin holdings, so in such a scenario you will likely sell that your emergency funds that is in  an asset at a loss because the market might be down then,  and sometimes it may even take you longer time to sell it off, so the best way to keep your emergency funds is in fiat, so that you can react fast to any emergencies that threatens your Bitcoin investment.

I agree with you. To keep your investment safe for the long term, emergency funds should be kept in fiat only. Most of the time, emergencies can come suddenly such as a physical accident be it to a family member or yourself. At such a time you may be a victim of an accident and there may be no facility to buy and sell. In developed countries various digital services are available but in underdeveloped or semi developed countries you have to rely more on cash funds.