Balancing Financial security and Bitcoin Accumulation

[Xackie]

It is not backup funds that should be used for bitcoin investment but rather it is discretionary income that should be used for accumulating bitcoin. Not having a backup funds should not be a reason for not buying bitcoin. Moreover some percentage of discretionary income can be set aside to act as backup funds while the remaining percentage can be used to buy bitcoin. Not having backup funds shouldn't be the reason why anyone should wait before they start buying bitcoin.

Back funds like emergency fund shouldn't be invested in bitcoin. back fund we can used to invest in bitcoin is a reserve fund and not an emergency fund. Emergency fund is set aside to address emergencies therefore it is wrong to invest it in bitcoin as that would be gambling. An Emergency fund is kept should incase of emergencies but if it is invested in bitcoin and emergency struck,it may push you to sell your bitcoin even at loss. Bitcoin is bought using discretionary income and emergency fund is build using discretionary income. As long they have discretionary income,they can invest in bitcoin and building their emergency fund simultaneously.

Yes, I agree to everything you said here because you are actually spot on.
Investing in Bitcoin with your emergency funds is pure gambling because you are putting your Bitcoin holdings at risk, and if in any case emergency struck  that moment or within that period of time you use it to buy and accumulate Bitcoin, you will definitely sell off or sell part of your Bitcoin holdings, since emergencies is what you can't overlook, so it's a wrong idea entirely to invest with your emergency funds that are meant for real life emergencies.

You should always be aware of the risks while investing. Although the risk is relatively low when investing in Bitcoin, you should be prepared for any unexpected emergency situation due to any price drop. Suppose you are investing in Bitcoin and doing DCA regularly but the price may suddenly drop. In this situation, investing can make you fearful. If you have an emergency fund, you will not be afraid even when the price of Bitcoin drops because you have discretionary income and funds for emergency needs.
Buying Bitcoin with funds kept for household expenses is a risk. In addition buying with emergency funds is also risky because the Bitcoin market does not give you advance predictions.

For beginners, setting up a regular DCA once a week or more can be more effective. Planning for dips can take a lot of time and energy, which may or may not happen at all, and many beginners don’t have much extra money, so it makes sense to buy regularly instead of dividing the funds and holding onto money. Many people are drawn to buying dips but this can reduce the focus on regular, consistent, and even aggressive buying. Aggressive buying should be based on strong financial conditions, not on the idea of ​​BTC price fluctuations. Buying dips can feel good, but I am not a fan of changing buying behavior or aggressiveness based on the idea of ​​BTC price moving up, down, or sideways.

‎Yeah you are right. The smart thing newbies can do is build the habit of buying regularly rather than trying to figure out exactly when the price will be at its lowest. Trying to wait for a dip is like chasing a shadow,  it keeps moving, and you will never catch it perfectly. In terms of aggressive buying, i will say newbies should avoid that for now, and just focus on their DCA, till they have accumulated enough and gained lots of experience along the way. Then lastly, it's not just about having your DCA funds , what matters is how consistent you are. Some people might decide to buy 3 weeks straight then lose focus and skip maybe another 3 weeks till God knows when , then they come back again and repeat the same step. Doing that won't put you in a good position.

[Cgrexp]

‎Yeah you are right. The smart thing newbies can do is build the habit of buying regularly rather than trying to figure out exactly when the price will be at its lowest. Trying to wait for a dip is like chasing a shadow,  it keeps moving, and you will never catch it perfectly. In terms of aggressive buying, i will say newbies should avoid that for now, and just focus on their DCA, till they have accumulated enough and gained lots of experience along the way. Then lastly, it's not just about having your DCA funds , what matters is how consistent you are. Some people might decide to buy 3 weeks straight then lose focus and skip maybe another 3 weeks till God knows when , then they come back again and repeat the same step. Doing that won't put you in a good position.

When investing in Bitcoin, especially for those with long-term goals, the most important thing is not just to buy continuously, but also to build a strong cash flow system and sufficient backup funds. Without a large one-time investment, it is possible for a new investor to achieve their long-term goals through regular small purchases. However, to do this successfully, they must ensure that they have built up sufficient backup funds to cope with the impact of adopting an overly aggressive strategy. Overinvesting without cash flow and backup funds can put the investment at risk. Therefore, building up sufficient backups at every stage of Bitcoin accumulation and prioritizing cash flow management is the key to a stable and sustainable investment strategy.

[Nightwatchmare]

It is not right to invest without absolutely 0 backup. Backup does not mean that there will be money in the savings account. If you have some separate assets, you can be mentally stable in the case of long-term investment. You can imagine like  suppose a person has a house for living ,he has no assets outside of it, no investments. Suddenly, as his income increases, his discretionary income is created, then if he invests in Bitcoin along with creating a backup fund. In this case, it will be more difficult who starts investing without any assets to remain mentally stable over the long term when the price of Bitcoin fluctuates.

It will take a long time to build his back-up fund, but even if he invests in Bitcoin at that time, he will invest a lot according to his income . Then, if a sudden emergency arises or the price of Bitcoin drops, he will panic. If you do not have any other assets other than a house or place of residence before investing in Bitcoin, you should focus on building it.

People must not wait until they have enough backup funds before they can start investing in bitcoin. What is most important is for them to start buying bitcoin once they have their discretionary income ready to use for buying bitcoin and hodl as long term strategy. The most important thing is for them to check if they really have a discretionary income to start with and the moment their discretionary income is ready then they should start buying bitcoin immediately and not wait until they have any backup fund before they start buying and investing in bitcoin because even along the line as they are investing in bitcoin they can still be able to try to build their back up funds.

Since people do not know when they will have enough backup funds, i think people should never wait until they have enough backup funds before they can invest in Bitcoin. What people should be worry about Bitcoin investment is if they will have discretionary income that is needed for them to invest in Bitcoin. They can start accumulating Bitcoin right away if their discretionary income is available and build up their backup funds during their investing process so that they can be able to take care of any emergency that happens.

It is not backup funds that should be used for bitcoin investment but rather it is discretionary income that should be used for accumulating bitcoin. Not having a backup funds should not be a reason for not buying bitcoin. Moreover some percentage of discretionary income can be set aside to act as backup funds while the remaining percentage can be used to buy bitcoin. Not having backup funds shouldn't be the reason why anyone should wait before they start buying bitcoin.

I did not say that backup funds is what should be used for Bitcoin investment. What i said is that people should not wait till they build their backup funds to the amount they want before they can start investing in Bitcoin because they can invest in Bitcoin without even building backup funds within 1-2 months of their investments. I know very well that it is discretionary income that should be used in Bitcoin investment but discretionary income is not the bone of contention, that is why i did not discussion about discretionary income.

[Sim_card]

‎Yeah you are right. The smart thing newbies can do is build the habit of buying regularly rather than trying to figure out exactly when the price will be at its lowest. Trying to wait for a dip is like chasing a shadow,  it keeps moving, and you will never catch it perfectly. In terms of aggressive buying, i will say newbies should avoid that for now, and just focus on their DCA, till they have accumulated enough and gained lots of experience along the way. Then lastly, it's not just about having your DCA funds , what matters is how consistent you are. Some people might decide to buy 3 weeks straight then lose focus and skip maybe another 3 weeks till God knows when , then they come back again and repeat the same step. Doing that won't put you in a good position.

If your discretionary income is not constant to enable you buy every week. There's nothing bad if you buy whenever, you have your discretionary income even if you skip one or two weeks because you cannot buy bitcoin when you don't have a discretionary income. As you are trying your best to buy whenever you can, you should be working on improving your income either by getting a second means of income or learn a skill or go and study to get a higher qualification so that you can have a consistent discretionary income and DCA consistently till you reach your bitcoin target.

It's when you have your discretionary income available and you feel reluctant to buy bitcoin weekly, regularly, consistently and persistently is when you are not serious with your bitcoin accumulation. However, it's better to accumulate bitcoin once in a while than not investing at all.

[Joeboy]

Some investors may be confused about the availability of backup funds before investing in Bitcoin. But the point is that you will not start accumulation Bitcoin with the entire fund you have. You should never use the entire fund you have at the time of investment. Some advise having sufficient funds from the beginning, but since Bitcoin is a volatile asset the possibility of a price increase at any time is very high. You should start investing in Bitcoin before the price increases significantly. If you do not have a backup fund available, start accumulate Bitcoin and gradually saving a backup fund. The purpose of this fund is to continue long term Bitcoin accumulation without withdrawing holdings in case of emergency during the Bitcoin investment period.

Don't get people confused, you really need to be specific about the exact fund that helps protect folks holding in cases of emergency.... Backup fund is a general name which comprises of your emergency cash, float, and reserve fund.. Emergency cash/fund are untouched, and are built to cover at least 3-6 months of your living expenses, they are built from your discretionary income, and folks can use this cash to settle their emergency needs in case any comes up.. Float cash serves an entirely different purpose. It could be used for tackling any available expenses, and lastly reserve funds are fund which are kept for various purposes or any planned needs such as front-loading your investment or for buying the dip...