Balancing Financial security and Bitcoin Accumulation

[SmartCharpa]

It is very usual for any one to start acting nervously like a human that he is, that's very normal and I don't think their is any problem with that but were comes the problem is were a folks becomes more skeptical due to market prices flautration and sell at lost, it shows that the surposed investor is mentally and emotionally weak and shouldn't be seen or considered as a real time investors but rather a fair weather investor that is only there to take quick profit.

However, bitcoin investment isn't for the weak minded set of person's or people that get quickly emotional,  you must be ready to take the potential risk involved and that's the more reason you must invest out of your discretionary funds to avoid stuffs like this because it is a funds you aren't using anytime soon and shouldn't be disturbed by any slide fall because you don't need it at that point. Moreover,  a serious investor always go for long-term duration (5-10 years) at least to save his head from being unnecessarily  nervous.

Sure, as a human it is normal to get worried about something most especially when you are investing in Bitcoin, but the wrong part of this is that if the person worried too much and sell their holdings. However, that often happens when the individual always check the market, as a long term investor whose goal is to hold for a long time shouldn’t be checking the market over and over again, because you have already set your target and what you want to achieve.

Bitcoin investment is not for the weak minded people, they can let their emotions to get over them to sell due to the fear. Why would someone invest money they might need tomorrow, if not out of greed? Because it is not advisable to invest in bitcoin with money you cannot afford to lose, otherwise, you may regret it later because no one have control over the market.

[cxtreenal]

If you are a person with income and have very little investment knowledge, start accumulating Bitcoin through discretionary income without thinking about alternative short term. Even if you do not have available funds, gradually build an emergency fund from a percentage of your discretionary income.

One of the biggest and most common mistakes new investors make is buying Bitcoin without an emergency fund. Because we are human, we can get sick, lose our jobs, and have family problems during the investment process, so investing without a backup fund is like crossing the Atlantic Ocean in a canoe that can sink at any time.
However, the safest way to invest is to keep an emergency fund of at least 3 months and invest small amounts regularly, i.e. DCA, instead of investing a large amount at once. Because it does not require market timing, there is less fear, and the risk is reduced in the long-term.

The first paragraph of your article needs to be revised. Bitcoin investing requires an emergency fund at the beginning, but if you don't have the funds available, it shouldn't be a problem to accumulate Bitcoin. At a time when you are thinking about starting to accumulate Bitcoin but you don't have the funds available to use as an emergency fund, you will need more time to build this fund, which can be a waste of time to start investing. If you don't have an emergency fund at the moment, you should start accumulating Bitcoin. You can construct an emergency fund while maintaining the DCA method for accumulating Bitcoin, so even if an emergency fund is needed in the initial stage of Bitcoin, it is optional.

[PhilosopherKing]

Newbies do not need to build their emergency funds (or back up funds) prior to getting started investing in bitcoin.  They can likely start from where they are at and then build the bitcoin holdings and the back up funds at the same time.

It is important to get started, even if the start out amounts might be conservative and small. It tends to take time to get matters set up related to sourcing of bitcoin and also getting into the habit of buying bitcoin, such as $100 per week or $10 per week or some other amount and/or frequency in buying that is comfortable.

Yes, as human be it newbie or professional it is good to take action and get started instead than overpreparing and not starting invest.

It is pointless when people keep waiting to have emergency funds before stating bitcoin. That long waiting can kill motivation and interest in bitcoin entirely.

And by the time they finally start and realize that they have wasted enough time.They can start fucking around with trading so they can chase the profit they think they missed as they where waiting.

When discretionary income is there people can get start and assess the rest later.

[DubemIfedigbo001]

It is very usual for any one to start acting nervously like a human that he is, that's very normal and I don't think their is any problem with that but were comes the problem is were a folks becomes more skeptical due to market prices flautration and sell at lost, it shows that the surposed investor is mentally and emotionally weak and shouldn't be seen or considered as a real time investors but rather a fair weather investor that is only there to take quick profit.

It's a norms for a new investor to panic when the market dips below his entry points because he's new to the whole thing but not to the point of panicking and selling his bitcoin investment at loss during the dip because that's why you have to know the basic knowledge of bitcoin which part of it is that you should invest and hodli for a long period of time.

A new investor can go to any length if he panicked, since he's still new and haven't come to the maturity of both mind and character to persist in holding even when price crashes occurs. It's obtainable in the beginning and investors make some levels of mistakes, but after sometime they understand Bitcoin price volatility more and as well as the cycles and they would have more confidence in their investment, so such fear wouldn't exist in them anymore.

This is why it's important to start buying small early in your investment journey and develop confidence in your Bitcoin journey. Overtime, the investor may choose to be more aggressive in his buys as their confidence levels increases in their investment journey. This is normal, it's better to be progressive in your accumulation journey than rushing in and out.

[Churchillvv]

However, the safest way to invest is to keep an emergency fund of at least 3 months and invest small amounts regularly,

I disagree with your sentiment here because by trying to gather or make reservations for emergency funds that can last you for a period of three months first before starting out your accumulation, it will only delay your accumulation because time is very important while accumulating, so the best thing to do is accumulating and stacking up your emergency and reserve funds alongside your bitcoin accumulation.
That way it's a win win situation because you will always have an emergency and reserve funds in place to address any emergency situation that may arise that moment, not by putting down emergency funds first before starting.

Any need for the disagreement and argument, in my opinion you both are right but have different perception of things, you think one doesn’t have to wait till they have emergency funds all figured out while the other said you can just have such emergency fund and then you are good to go but he doesn’t mean you have to have it all figured out, you probably had savings before wanting to invest in bitcoin that could be your emergency fund, hence he is correct and you too is!!!!

[Mr_Brilliant$]

Yes you are very correct,   there is not alternative means of making or saving money in bitcoin apart from investment be it long of short period , some that have not experience the supernatural transformation in bitcoin investment waste there time and energy in trading or other alternative schemes without knowing its the short cut to downfall, I know it may sound funny but experience is a best teacher once it has happened to you you be able to differentiate among all the best as I have done now.

It's not advisable to invest in bitcoin for a short period of time as a young and vibrant investor because it means that you're trading and not investing. Trading means gambling so to avoid being on any of these lane, it's better to invest in a long-term in order for you to have enough time to grow and build your bitcoin investment and also limit the risk attached to bitcoin investment which is volatility.

Some people think that buying and hodli bitcoin for 2-3 years is investing but they don't know that they are traders because a a bitcoin investor you need to invest for at least 4-10 years and above in order for you to be able to accumulate a significant amount of bitcoin. Profits shouldn't be the main focus because it will distract you from accumulating more bitcoin. Have a bitcoin target and focus on accumulating it overtime.

Exactly, Bitcoin is not something you gambling with, rush or trade..  The longer you hold, the less you will be disturbed with all of those daily up and down.. When you’re thinking in years instead of weeks, your mind will just be so settled.

And having a BTC target helps too sha.. Because sometimes you just have to focus on stacking towards a goal instead of been distracted chasing quick profit.

[Joeboy]

However, the safest way to invest is to keep an emergency fund of at least 3 months and invest small amounts regularly,

I disagree with your sentiment here because by trying to gather or make reservations for emergency funds that can last you for a period of three months first before starting out your accumulation, it will only delay your accumulation because time is very important while accumulating, so the best thing to do is accumulating and stacking up your emergency and reserve funds alongside your bitcoin accumulation.
That way it's a win win situation because you will always have an emergency and reserve funds in place to address any emergency situation that may arise that moment, not by putting down emergency funds first before starting.

You are right and @bluebird is not illogical either. Waiting to build a full emergency fund often demotivates investors and sometimes they never get started. So rather than waiting to build a full emergency fund, some of the investment funds can be used as emergency funds and the rest can be used to start investing. So if someone invests defensively, then the emergency fund should come first, but if someone invests flexibly, then Bitcoin investment and backup fund can be done together.

It doesn't matter if an investor is defensive or flexible, it still is unwise for them to delay their entire investment simply coz they are building an emergency funds... What folks sometime forget is that investment as well as building of emergency funds are both done from your discretionary income.. And since they both come from the same source, folks can very well get their investments started while also creating room for building their emergency funds, if their discretionary income is available...For example if an hypothetical guy has $300 as his discretionary income, he can very well use like $150 for his accumulation and then $80 in building his emergency funds, and the remaining $70 he can keep it as his float/ reserve fund, it all about being balanced in whatever way that makes the investors not to be vulnerable to trading before getting to their investment timeline..

[AuchanX]

It is very usual for any one to start acting nervously like a human that he is, that's very normal and I don't think their is any problem with that but were comes the problem is were a folks becomes more skeptical due to market prices flautration and sell at lost, it shows that the surposed investor is mentally and emotionally weak and shouldn't be seen or considered as a real time investors but rather a fair weather investor that is only there to take quick profit.

However, bitcoin investment isn't for the weak minded set of person's or people that get quickly emotional,  you must be ready to take the potential risk involved and that's the more reason you must invest out of your discretionary funds to avoid stuffs like this because it is a funds you aren't using anytime soon and shouldn't be disturbed by any slide fall because you don't need it at that point. Moreover,  a serious investor always go for long-term duration (5-10 years) at least to save his head from being unnecessarily  nervous.

Sure, as a human it is normal to get worried about something most especially when you are investing in Bitcoin, but the wrong part of this is that if the person worried too much and sell their holdings. However, that often happens when the individual always check the market, as a long term investor whose goal is to hold for a long time shouldn’t be checking the market over and over again, because you have already set your target and what you want to achieve.

A person cannot hold on to his investment by checking the market repeatedly, this does not apply to everyone. There are many old investors who have held Bitcoin for 8-10 years. Many of them also check the market chart repeatedly. Did they sell their investment because of this? The truth is that not everyone comes to the market with the same mental strength. Many people, without understanding, invest their required money just by hearing about the success of people around them. Then, when the price drops a little, it seems that everything is over. Therefore, we can clearly say that watching the market more is not a problem. The problem is that we do not have a clear plan. If someone decides at the beginning, I will start small with my unnecessary money. And I will start investing with some by dividing the optional income from the main income amount per month or week, and I will build some emergency fund and reserve fund. And I will not worry about the fluctuations in the middle, so even if I look at the chart every day, it will not break easily. But if our goal is not clear, then even if we look at the chart once a week, fear will work and mental stress will arise.

[liasbaa]

A person cannot hold on to his investment by checking the market repeatedly, this does not apply to everyone. There are many old investors who have held Bitcoin for 8-10 years. Many of them also check the market chart repeatedly. Did they sell their investment because of this?

Even if you look at the chart repeatedly, it will not be a problem for you if you can set a time frame for Bitcoin accumulation. We often discuss that an investor should lock in portfolio exits for 4-10 years. Only accumulate Bitcoin every week through discretionary income. But those who are short term traders monitor the price chart repeatedly.

Some investors may study the chart to analysis the market but if they can maintain a strong mental position and do not withdraw Bitcoin before the specified period, then long-term investment can reach a convenient position for them. I record the purchase price and Bitcoin fraction and dollar amount every week for Bitcoin accumulation in an Excel sheet because I can observe what the average price was at the end of the year and how much bitcoin holdings have accumulated.

[Nightwatchmare]

If a person is able to find $100 of discretionary income, they can invest. We don't need a lot of discretionary income to invest, even if we have a small amount of discretionary income, we can invest. We can divide this discretionary income into 3 levels. For example, we can invest 25%, we can keep 20% for creating an emergency fund and the remaining 55% we can keep in our cash or in the bank. The reason for keeping 55% in the bank or in cash is that the Bitcoin market is very volatile. Even if you are able to hold it for the long term, there is no certainty that you will be able to make a profit, so it is very good to keep some money in a less risky place for your future. Or it would be better to make a percentage of investment depending on your, each person's financial situation.

I absolutely agree we can invest in Bitcoin with any amount of discretionary income in our disposal because we do not need big discretionary income before we can start investing in Bitcoin, the important thing is to get started first, and we can work towards our finances along our accumulation process so that at some point we will be investing in Bitcoin with the discretionary income of our choice. There is no need for us to divide our discretionary income in order to keep some percentage in the bank so that we will use it to buy Bitcoin in dip because we do not know when Bitcoin will dip, and that process we hinder us from accumulating reasonable large amount of Bitcoin. So, after we have removed a certain percentage from our total discretionary income for the week or month that we want to use and build our emergency fund, we should invest in Bitcoin right away with the remaining percentage of our discretionary income because keeping money in the bank is very unwise because, the value of the money will reduced and it might not have access to the money when you want to.