Balancing Financial security and Bitcoin Accumulation

[liasbaa]

My purchase method is DCA method and one-time investment. I have estimated that my average purchase price may be 80k-90k dollars. If I buy 0.5 Bitcoin, then I need 40000 dollars. If I buy 30 dollars every week, 40000÷30= 1,333.333 weeks will be needed. 1,333.333÷52=25.641 years. It will take about 26 years to achieve my goal, but I will not take so much time. I will try to achieve my goal as soon as possible. Because sometimes I get money from my businesses. I will invest more at that time and try to achieve my portfolio target quickly.

Bitcoin market is very unpredictable, if the average purchase price you have calculated is not as per your expectation then you may get disappointed so it would be better for you to continue buying continuously without having such expectations on the market. If the price of Bitcoin reaches the highest price again then it will take a lot more time for your portfolio so do not plan this and continue buying continuously until you reach the goal of building your portfolio. I do not know if you have started buying yet but if you have not started buying then it would be better not to worry about your average purchase price.

If you focus more on market you will easily get discouraged. Just play your part by accumulating and holding despite the market conditions, all that matter is that you are building something that will turn out profitable in long run , though it is not guarantee but historical data has proven that bitcoin tend to go up as time goes despite all the up and down movement .

The really I kept saying there’s no guarantee is because we can’t actually tell the future, the only thing that doesn’t change is changes . So there will always be changes as time goes, either positive or negative changes .

As an investor you’re not meant to focus on the market, instead you should focus more on buying and holding bitcoin, and having a discretionary income as well, I have seen a scenario where people who have difficulties finding their way and feet in buying and holding bitcoin, most times it’s been a very terrible situation and experience, because they will have to panic because of their money involved, but if you’re and old investor it would be better to know that you have to keep buying and accumulating bitcoin on a consistent basis and a regular basis.

You should also focus on the market price situation while investing in Bitcoin. Don't let Bitcoin accumulating become a boring affair as the market will go up and down and discretionary income is required to stay afloat with every price trend. It is also important to have a income stream and a proper implementation process of discretionary income fund in order to invest in Bitcoin. You will find it problematic to do DCA regularly if your income is not consistent or you do not have emergency funds available.

Emergency funds are of utmost importance to maintain the necessary cash flow and security of Bitcoin holdings to maintain long term dominance in investing. The sudden need for invested capital is responsible for creating panic in investing. From that point on, you need an emergency fund and cash flow to keep yourself in a safe investment position.

[Finebone]

You should also focus on the market price situation while investing in Bitcoin. Don't let Bitcoin accumulating become a boring affair as the market will go up and down and discretionary income is required to stay afloat with every price trend.

A bitcoin investor that have the intention of holding for a very long time doesn't need to focus on market price situation as you proclaim because he is thinking long term, and this current price that you think that is too expensive now may look like a serious dip in few years time from now, so why trouble yourself with what the market is doing now before thinking of buying?

It is also important to have a income stream and a proper implementation process of discretionary income fund in order to invest in Bitcoin. You will find it problematic to do DCA regularly if your income is not consistent or you do not have emergency funds available.

I agree with you that having a source of discretionary income is important, but what is more important is a discretionary income, because without it, you can't invest in bitcoin consistently.

Emergency funds are of utmost importance to maintain the necessary cash flow and security of Bitcoin holdings to maintain long term dominance in investing.

You don't have to be complicating things or be making confusing statement. Am emergency funds is only responsible to protect your Bitcoin investment, just in case of any real life emergencies that threatens your Bitcoin holdings, not what you use to invest consistently or to maintain cash flow as you proclaim.

[Frankolala]

You should also focus on the market price situation while investing in Bitcoin. Don't let Bitcoin accumulating become a boring affair as the market will go up and down and discretionary income is required to stay afloat with every price trend.

why will you be focusing on the market price when you're using DCA strategy to buy bitcoin irrespective of the current price of bitcoin at that moment. It's useless to  focus on the market price because it can distract you and make you not accumulate bitcoin if your instincts says the price might dip lower.

A brand new investor should focus on how he will keep his DCA ongoingly overtime why he also focus on improving his income in order to have extra funds to add to his discretionary income and invest aggressively after he has set up his emergency funds and other backup funds as he's investing.

 It is also important to have a income stream and a proper implementation process of discretionary income fund in order to invest in Bitcoin. You will find it problematic to do DCA regularly if your income is not consistent or you do not have emergency funds available.

You are not to set up an emergency funds before starting your Bitcoin investment. You are not to use your emergency funds to invest in bitcoin but your discretionary income.

[SPIDERMAN008]

Thanks for the nice suggestion. I didn't just focus on profit, I wanted to say how much profit can be. I have decided to buy 0.5 Bitcoin and buying from one year ago. My purchase method is DCA method and one-time investment. I have estimated that my average purchase price may be 80k-90k dollars. If I buy 0.5 Bitcoin, then I need 40000 dollars. If I buy 30 dollars every week, 40000÷30= 1,333.333 weeks will be needed. 1,333.333÷52=25.641 years. It will take about 26 years to achieve my goal, but I will not take so much time. I will try to achieve my goal as soon as possible. Because sometimes I get money from my businesses. I will invest more at that time and try to achieve my portfolio target quickly.

You tried to calculate. That's good. But I think you're still looking at the issue a bit too much from the target quantity and profit angle. Not from the investment process angle.

Setting a 0.5 BTC target is not bad. But such a target leads many newbies in the wrong direction. Because they make quantity a goal. The real question lies elsewhere. How strong your cash flow? How much discretionary income you reliably allocate .How more year can you continue buying BTC without panicking.

You showed that it can take about 26 years to reach 0.5 BTC with just $30 weekly buy. The lesson from this should be that 0.5 BTC is not impossible. Rather, if the weekly amount is small, the growth of Bitcoin holdings will be slow. This is normal. So the issue is not 0.5 BTC. The issue is the accumulation rate.

If extra money comes from business occasionally, then a better approach would be to not invest that extra money with random excitement. Deploy it in a planned way. Keep regular DCA on. If cash flow is strong, increase the buy amount. If extra funds come, make a staged lump sum instead of waiting for DIP.

But don't be overly aggressive. Don't put money in investment form the emergency fund. Don't put money form necessary expense. Or you may have to force sell later. And forced sell ruins many people's investment plans.

There is no need to worry too much about whether the average price BTC will be 80k to 90k or not. Because the price of BTC may increase or decrease after a few years and even now its happening so  it is completely unpredictable. Especially if you are still in the accumulation stage. In the early years, more important than the average cost is whether you can make buying habit. you should build a backup fund. you should also build psychological discipline.

If you really want to achieve your goal quickly, Make a clear framework for yourself. What percent of your income will go to BTC. What is the weekly base amount. What percentage of lump sum will you make if extra money comes from business. And how many months of expenses will the reserve fund cover. Then you will understand whether you are actually investing or just getting excited by seeing a big BTC number.

0.5 BTC may happen someday. It may also to be  not.  Increase the DCA amount step by step. And do not destroy the system. Then getting closer to the target will be more realistic. Do not stand on random hope. Because if the price of BTC increases with time, then you will get less BTC with same amount . What the price of BTC will be after 5 or 10 years is uncertain, where as if you buy BTC after calculating for 26 years, it will be bad feeling for you as you do not reach the target later. Because the price of Bitcoin is always volatile .