Balancing Financial security and Bitcoin Accumulation

[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...

[Proty]

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...

yes you are right, there are different funds that fall under this category. For distinction it will be more appropriate if he should be more specific so that some person that doesn't know the purpose or which of the funds that should be used for emergency.
Sometimes people do used terms in a way that it becomes ambiguous to actually get the exact mean of such. Using backup funds in place of emergency funds, may makes it look as if both reserves funds and.emergency funds are strictly for the same purpose. There is need to distinguish each of this terms to avoid confusion.

[Nightwatchmare]

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.

Even the old investors cannot even figure out exactly when the price of Bitcoin will be at its lowest, so if newbies want to figure out exactly when the price of Bitcoin will be at its lowest they are just wasting their time because no one can detect that, and since newbies are no coiners, it would be better for them to prioritize buying Bitcoin anytime their discretionary income is available. Buying Bitcoin consistently is aggressive buy, and i think newbies should not avoid aggressive buy because it will help them in their accumulation process but they should avoid buying Bitcoin with the money they cannot afford to lose so that they will not mess up their accumulation process.

[Charcol]

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.

Yes, if we are too much about market timing, we will become very uncertain and emotional. And the biggest thing is that if someone new tries to catch the PERFECT DIP, then most of the time he will have to stay out of the market. Otherwise, there is a possibility of suddenly buying more in FOMO. So for us, buying in regular fixed amounts, i.e. buying in the DCA method, separates the investment process from trying to predict the price. Which can be a mentally and strategically safe method for us. And consistency is not just a matter of habit, it is part of our risk management. Buying in small amounts regularly smoothes the impact of volatility on our portfolio. It can be much more logical for us to increase our position step by step rather than pouring large amounts at once. Especially when one's income is not stable or experience about the market is limited.
An important point is that doing DCA does not mean that we have to ignore financial reality. Setting aside our emergency fund, reducing high interest debt first, and ensuring the stability of daily expenses are the foundations of a long term investor. Because if we cannot survive in the market, the strategy may not be of any use.

[cxtreenal]

Even the old investors cannot even figure out exactly when the price of Bitcoin will be at its lowest, so if newbies want to figure out exactly when the price of Bitcoin will be at its lowest they are just wasting their time because no one can detect that, and since newbies are no coiners, it would be better for them to prioritize buying Bitcoin anytime their discretionary income is available. Buying Bitcoin consistently is aggressive buy, and i think newbies should not avoid aggressive buy because it will help them in their accumulation process but they should avoid buying Bitcoin with the money they cannot afford to lose so that they will not mess up their accumulation process.

I completely agree with you that you said that accumulating Bitcoin consistently is a form of aggressive buying. It would be very wise for an investor to continue to buy Bitcoin consistently regardless of its price, as he would buy every week. If you can apply this method from the initial stage of the accumulation process, you will soon see the progress of your Bitcoin stack. Even without aggressive Bitcoin buy, consistency can lead you to overaccumulation stage.

Since it is not possible to accurately predict the price, Bitcoin accumulation regardless of the price is encouraged because the aim is to have a sustainable security of the invested funds and to obtain the desired Bitcoin holding at every cycle.

[Gost ms]

I completely agree with you that you said that accumulating Bitcoin consistently is a form of aggressive buying. It would be very wise for an investor to continue to buy Bitcoin consistently regardless of its price, as he would buy every week. If you can apply this method from the initial stage of the accumulation process, you will soon see the progress of your Bitcoin stack. Even without aggressive Bitcoin buy, consistency can lead you to overaccumulation stage.

Since it is not possible to accurately predict the price, Bitcoin accumulation regardless of the price is encouraged because the aim is to have a sustainable security of the invested funds and to obtain the desired Bitcoin holding at every cycle.

If a person continues to invest consistently within the framework of proper investment management and proper financial management, then it is never aggressive investment. When a person continues to invest consistently without proper financial management, then it will be called aggressive investment.

There are many who express a lot of interest in investment and become very interested in investment, then they invest without proper financial management and for this they fall victim to a very bad situation or face losses. We should always manage our financial situation properly and find discretionary income. If discretionary income is not available in a week or month, then it will be best for an investor not to invest in that week or month.

[Alvin_talk]

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.

No offence but I Partially disagree with your opinion, no matter what, it is not advisable to buy whenever, it sounds too careless from my point of view, it looks as if you are encouraging laziness.

Before you think of investing, you need to have a source of income that is sufficient enough for you to have a leftover or you can cut down your expenses in order to have a leftover (discretionary income) that you can use for your bitcoin investment, note that the later requires discipline to achieve. I believe that your discretionary income should be programmed for every pay check you receive if you are serious with your bitcoin investment (example: 10% of my monthly income). What you should know here is that personal organisation and planning is the key. As long as you have the plan to invest and you have a source of income, you can always start investing in an organised manner (weekly, monthly, every two months, etc) and not whenever. Unless you don't have a constant source of income, if not your investing habit should be programmed in order to maintain overall efficiency in your investment plan.

[Tmoonz]

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.

No offence but I Partially disagree with your opinion, no matter what, it is not advisable to buy whenever, it sounds too careless from my point of view, it looks as if you are encouraging laziness.

Before you think of investing, you need to have a source of income that is sufficient enough for you to have a leftover or you can cut down your expenses in order to have a leftover (discretionary income) that you can use for your bitcoin investment, note that the later requires discipline to achieve. I believe that your discretionary income should be programmed for every pay check you receive if you are serious with your bitcoin investment (example: 10% of my monthly income). What you should know here is that personal organisation and planning is the key. As long as you have the plan to invest and you have a source of income, you can always start investing in an organised manner (weekly, monthly, every two months, etc) and not whenever. Unless you don't have a constant source of income, if not your investing habit should be programmed in order to maintain overall efficiency in your investment plan.

There is nothing wrong with what sim_card said, you are ought to buy whenever there is an available of a discretionary income and of course that doesn't command or insinuate laziness, note that having a pay check at whatever time or period it may be is one thing and having a discretionary income at the end is another thing after ensuring that whatever that is considered to be a basic needs has been taken care of, people can cut down on their expenses in order to have a discretionary income I agree with you but you also have to understand that most of the times the paycheck might not even be enough to take care of what can be considered basic and most cases people borrowed to meet up with their essential needs and at that point they are not expected to buy Bitcoin because there was no available discretionary income to buy Bitcoin, so the flexibility is that you buy whenever there is an available discretionary income just as sim_ card rightly said.