Balancing Financial security and Bitcoin Accumulation

[Frankolala]

Investing 85 to 90 percent of discretionary income is a high-level aggressive and risky investment. If a person invests 80 percent of his discretionary income, then only 20 percent of the money will be left. And with this 20 percent of the money, he has to create his emergency fund, backup fund. A person's monthly income is $ 200. That person's discretionary income is $ 50 per month. If he invests 80% of the $ 50 of discretionary income, that is, $ 40, he will have only 20%, that is, $ 10. However, in the case of Bitcoin investment, he should keep an amount equivalent to two to three months of salary. That is, if this person wants to keep an amount equivalent to two months of salary in the emergency fund, then the amount is $ 400. But if he keeps 20 percent of his money every month for the emergency fund, then it will take him 40 months or about 3 years and 4 months to create a fund equivalent to two months. And of course, during these 3 years, he may have an emergency or bad situation sometime or the other.  In such a situation, investing 80 percent of discretionary income can be acceptable only if the investor has an emergency fund equal to at least three months' salary. Therefore, financial management should be done by keeping a balance between investment and emergency fund.

Your emergency funds should be at least three months of your monthly expenses and not two months of your monthly income. You don't need to have insufficient emergency funds to avoid it not being able to take care of the expenses of a real life emergency when it pops more than what we expected.

It's good that a brand new investor who is just starting his bitcoin investment without any form of backup funds should divide his discretionary income into three parts.  Which is 33.3% for your constant weekly DCA, 33.3% to build up your emergency funds as you are investing till it gets to three months of your monthly expenses and 33.3% for discretionary income.

[Emjay24]

aggressive buying has nothing to do with increasing an investor discretionionary income but rather it is the percentage of discretionionary that is being used by an investor in buying bitcoin that truly determined there levels of aggressiveness or if they are being aggressive with there bitcoin accumulation. So an investor doesn't need to increase there discretionionary income in other to be aggressive with there bitcoin accumulation. Someone that used 85-90% of there discretionionary income to buy bitcoin is being aggressive.

Investing with 85-90% of your discretionary income from the start or as a new investor can really be over aggressive and problematic to your Bitcoin investment because at that beginning point of your accumulation journey, you have not set aside a reasonable emergency and reserve funds to safeguard your Bitcoin investment from any real life emergencies that may threatens your Bitcoin holdings.
So what's am trying to say is that accumulating aggressively is good, but it might be problematic to your Bitcoin investment if you go as high as investing like 85-90% of your discretionary income as a new investor that has not kept a huge emergency funds already to protect your bitcoin holdings from emergency situations.

Investing 85 to 90 percent of discretionary income is a high-level aggressive and risky investment. If a person invests 80 percent of his discretionary income, then only 20 percent of the money will be left. And with this 20 percent of the money, he has to create his emergency fund, backup fund.

If a person comes into bitcoin without backup funds or assets, then he should not do this, he should allocate a good percentage to his building of backup funds and/or putting money down for his discretionary spending alongside his investing into bitcoin until he has built out his emergency fund to be equal to at least 3 months worth of his expenses.

If the investor came into bitcoin already having backup funds from his previous investments or backup assets in physical assets or precious metals or any other assets form, then he has enough financial cushion to get as aggressive as he can with his discretionary income to build out a good stash of bitcoin for himself within a shorter period of time.

A person's monthly income is $ 200. That person's discretionary income is $ 50 per month. If he invests 80% of the $ 50 of discretionary income, that is, $ 40, he will have only 20%, that is, $ 10. However, in the case of Bitcoin investment, he should keep an amount equivalent to two to three months of salary. That is, if this person wants to keep an amount equivalent to two months of salary in the emergency fund, then the amount is $ 400.

This is wrong, he should build out his emergency fund to be equal to at least 3 months of his expenses budget and he doesn't need to build this out before starting his investment into bitcoin, it can be built out simultaneously.

But if he keeps 20 percent of his money every month for the emergency fund, then it will take him 40 months or about 3 years and 4 months to create a fund equivalent to two months. And of course, during these 3 years, he may have an emergency or bad situation sometime or the other.  In such a situation, investing 80 percent of discretionary income can be acceptable only if the investor has an emergency fund equal to at least three months' salary.

3 months worth of his expenses precisely

[Silikiem]

I think you’re the one who’s getting everything wrong here by misinterpreting what The founding Titan was clearly stating in his post. He never said you invest aggressively when the price is high or low, what he was merely saying is that there’s no market price one cannot invest aggressively what matters most is strictly based on the level of your discretionary income. He clearly wasn’t saying that aggressive buying should be based on market price but should be based on one’s level of discretionary income. If you want to buy aggressively then you should try to improve your discretionary income it’s a simple as that. If you’re buying aggressive based on market price especially when the market is bearish or dip then what you are doing is buying the dip strategy.

aggressive buying has nothing to do with increasing an investor discretionionary income but rather it is the percentage of discretionionary that is being used by an investor in buying bitcoin that truly determined there levels of aggressiveness or if they are being aggressive with there bitcoin accumulation. So an investor doesn't need to increase there discretionionary income in other to be aggressive with there bitcoin accumulation. Someone that used 85-90% of there discretionionary income to buy bitcoin is being aggressive.

So can you spot the difference between what I said and what you are saying in your post about increasing our discretionary income for aggressive buying. If an investor is previously buying bitcoin with let’s say about 40% of his discretionary income and as time goes on he increases his discretionary income used for buying bitcoin from his previous 40% to 85-90% as you suggested is it not still a part of increasing his discretionary income to buy aggressively. So why will you say that aggressive buying have nothing to do with increasing our discretionary income but rather it’s the percentage of discretionary income being used by an investor in buying bitcoin that truly determines their level of aggressive buying, so where is the difference?. What would be most likely understandable to say is that aggressive buying is when investors are buying bitcoin with great speed and buying large amounts or percentage of bitcoin constantly as opposite to how they used buy before.

[I_Anime]

I think you’re the one who’s getting everything wrong here by misinterpreting what The founding Titan was clearly stating in his post. He never said you invest aggressively when the price is high or low, what he was merely saying is that there’s no market price one cannot invest aggressively what matters most is strictly based on the level of your discretionary income. He clearly wasn’t saying that aggressive buying should be based on market price but should be based on one’s level of discretionary income. If you want to buy aggressively then you should try to improve your discretionary income it’s a simple as that. If you’re buying aggressive based on market price especially when the market is bearish or dip then what you are doing is buying the dip strategy.

aggressive buying has nothing to do with increasing an investor discretionionary income but rather it is the percentage of discretionionary that is being used by an investor in buying bitcoin that truly determined there levels of aggressiveness or if they are being aggressive with there bitcoin accumulation. So an investor doesn't need to increase there discretionionary income in other to be aggressive with there bitcoin accumulation. Someone that used 85-90% of there discretionionary income to buy bitcoin is being aggressive.

So can you spot the difference between what I said and what you are saying in your post about increasing our discretionary income for aggressive buying. If an investor is previously buying bitcoin with let’s say about 40% of his discretionary income and as time goes on he increases his discretionary income used for buying bitcoin from his previous 40% to 85-90% as you suggested is it not still a part of increasing his discretionary income to buy aggressively. So why will you say that aggressive buying have nothing to do with increasing our discretionary income but rather it’s the percentage of discretionary income being used by an investor in buying bitcoin that truly determines their level of aggressive buying, so where is the difference?. What would be most likely understandable to say is that aggressive buying is when investors are buying bitcoin with great speed and buying large amounts or percentage of bitcoin constantly as opposite to how they used buy before.

Base on my understanding so far aggressive buying is more of increasing your accumulation rate , like increasing the amount you are using to buy to a certain extent. Sometimes you can increase it to a rate you can’t keep up with for long . That’s why many usually refers it to as something that’s quite risky which is true especially when you are being aggressive in some shitcoins , because the more you buy thinking you are maximizing your profits the more you messed your self up better to stick with bitcoin , sir jayjuangee can also help With this , explain what it means to be aggressive, properly .

[JayJuanGee]

[edited out]

Buying aggressively means using more of your discretionary income then you'd normally, it's shouldn't be dependent on whether bitcoin's price went up or down but on the capacity of our own discretionary income, that's the one way to ensure we don't end up going beyond our discretionary income simply because we want to match the current price of bitcoin, anyone who is already for any reason investing all of their discretionary income in bitcoin is already investing as aggressively as they can and shouldn't go beyond that, if they want to invest more then they should make the effort to increase their discretionary income, that's the only way for them to invest more than they already are.

How aggressive a person is and how much cushion that they have between over doing it and merely pushing limits cannot always be completely known so there is a bit of a judgement call regarding how much any particular person might want to push limits and still be comfortable.  He also might not realize that he overdid it until it is too late, so then if the consequences are not greatly damaging then he might consider that his pushing of limits were worth the risk, and so there are degrees, even with how aggressive a person might choose to be and what the consequences could become under various scenarios of unexpected events that might end up happening and the extent that they are prepared for the unexpected event when it ends up happening.

Some guys might find themselves tweaking their system with any tiny mistake that they make, and other guys might need to suffer a certain threshold of damage before he might chose to make some changes to what he is doing.

Some guys might play with little to no back up funds, and then end up pretty much losing most if not all of their bitcoin investment because they were taking too many chances and perhaps they weren't paying attention (or they were too greedy) too.

[edited out]

If you want to buy aggressively then you should try to improve your discretionary income it’s a simple as that.

Buying aggressively or not is a measurement within the level of discretionary income that a person has.  If you increase the discretionary income you increase the pie upon which you can draw from but you do not necessarily increase the aggressiveness level.

Let's say that you have three guys who have $150 per week of discretionary funds available.

Guy 1 ($150 budget) (middle):  Invests $50, saves $50 and discretionarily consumes $50

Guy 2 ($150 budget) (whimpy):  Invests $10, saves $70 and discretionarily consumes $70

Guy 3 ($150 budget) (aggressive):  Invests $110, saves $20 and discretionarily consumes $20
 
Which one is more aggressive in his bitcoin investment?  Guy 3 of course.  What if they increased their discretionary income?  Let's say their discretionary income doubled to $300 per week.. .Yet if they merely doubled each of the categories they are all investing more, their level of aggressiveness would not have had changed.

Guy 1 ($300 budget) (middle):  Invests $100, saves $100 and discretionarily consumes $100

Guy 2 ($300 budget) (whimpy):  Invests $20, saves $140 and discretionarily consumes $140

Guy 3 ($300 budget) (aggressive):  Invests $220, saves $40 and discretionarily consumes $40

The point  that I am making is that the mere fact that the discretionary income went up, that did not cause them to be more aggressive if they merely kept the same percentage within the discretionary funds.  Level of aggressiveness or not is measured relatively within the discretionary income and how much a person chooses to invest into bitcoin based on what funds are available to him within those available funds.

I think you’re the one who’s getting everything wrong here by misinterpreting what The founding Titan was clearly stating in his post. He never said you invest aggressively when the price is high or low, what he was merely saying is that there’s no market price one cannot invest aggressively what matters most is strictly based on the level of your discretionary income. He clearly wasn’t saying that aggressive buying should be based on market price but should be based on one’s level of discretionary income. If you want to buy aggressively then you should try to improve your discretionary income it’s a simple as that. If you’re buying aggressive based on market price especially when the market is bearish or dip then what you are doing is buying the dip strategy.

aggressive buying has nothing to do with increasing an investor discretionionary income but rather it is the percentage of discretionionary that is being used by an investor in buying bitcoin that truly determined there levels of aggressiveness or if they are being aggressive with there bitcoin accumulation. So an investor doesn't need to increase there discretionionary income in other to be aggressive with there bitcoin accumulation. Someone that used 85-90% of there discretionionary income to buy bitcoin is being aggressive.

So can you spot the difference between what I said and what you are saying in your post about increasing our discretionary income for aggressive buying. If an investor is previously buying bitcoin with let’s say about 40% of his discretionary income and as time goes on he increases his discretionary income used for buying bitcoin from his previous 40% to 85-90% as you suggested is it not still a part of increasing his discretionary income to buy aggressively. So why will you say that aggressive buying have nothing to do with increasing our discretionary income but rather it’s the percentage of discretionary income being used by an investor in buying bitcoin that truly determines their level of aggressive buying, so where is the difference?. What would be most likely understandable to say is that aggressive buying is when investors are buying bitcoin with great speed and buying large amounts or percentage of bitcoin constantly as opposite to how they used buy before.

Base on my understanding so far aggressive buying is more of increasing your accumulation rate , like increasing the amount you are using to buy to a certain extent. Sometimes you can increase it to a rate you can’t keep up with for long . That’s why many usually refers it to as something that’s quite risky which is true especially when you are being aggressive in some shitcoins , because the more you buy thinking you are maximizing your profits the more you messed your self up better to stick with bitcoin , sir jayjuangee can also help With this , explain what it means to be aggressive, properly .

Hardyrobust had given a reasonable explanation, too, since there can be various scenarios in which a person might choose a higher or lower percentage of his discretionary income to be used for investing, and surely if he starts to push the limits within the amount of discretionary income that he has, then he could end up going from aggressive to over aggressive, and sure, if he increases his discretionary income, then he has more funds to work with, yet his level of aggressiveness should still be determined within the discretionary funds that are available to him... and of course, if a guy has created a pretty robust back up funds, then he can afford to be more aggressive in his bitcoin investment since he is no longer having to add to his back up funds.. unless he depletes his back up funds, then he might have to go back to replacing the back up funds to get those funds up to an acceptable size, whether emergency funds or reserve funds.. and of course, the emergency funds tend to be a level of back up funds that you try to maintain so they are available in case some real decrease in income and/or increase in expenses takes place.. and the reserve funds tend to be supplemental extra funds beyond the emergency funds and have more options in terms of flexibility in regards to why they might be saved up and how they might be used.  

We frequently like to talk about 3 months expenses for our emergency funds and to build up to that level, yet we know that if a person is in his early stages of bitcoin investment, he may end up starting out without very many emergency funds (back up funds) so as he is building up his emergency funds and his bitcoin investment, he may well have some situations in which he might have to tap into his emergency funds because his income went down and/or his expenses went up, so it can take time to get the emergency funds up to the level of 3 months of expenses, and some guys might even consider that as their wealth is growing, they are becoming more and more prepared to handle a variety of situations in which their income might go down and/or their expenses go up for a considerable amount of time, yet I would think that if the bitcoin investor has a goal to build up his bitcoin investment for 4-10 years or longer so that he can reach some level of overaccumulation so then he would have the option to later start to draw upon his bitcoin, he then would be trying to put in place cashflow management systems/practices that help him to continue to build his bitcoin stash size and also to avoid tapping into it at  time that is not of his own choosing.. and so guys are not always going to agree how much back up funds to keep, and surely guys can partly judge from their own history and the stability of their income and/or expenses, yet if they end up screwing up, then they might regret that they were not striking a sufficient enough balance in order to cover them from sometimes challenging financial and/or psychological situations that they might end up experiencing, perhaps unexpectedly.

[The Founding Titan]

[edited out]

Buying aggressively means using more of your discretionary income then you'd normally, it's shouldn't be dependent on whether bitcoin's price went up or down but on the capacity of our own discretionary income, that's the one way to ensure we don't end up going beyond our discretionary income simply because we want to match the current price of bitcoin, anyone who is already for any reason investing all of their discretionary income in bitcoin is already investing as aggressively as they can and shouldn't go beyond that, if they want to invest more then they should make the effort to increase their discretionary income, that's the only way for them to invest more than they already are.

How aggressive a person is and how much cushion that they have between over doing it and merely pushing limits cannot always be completely known so there is a bit of a judgement call regarding how much any particular person might want to push limits and still be comfortable.  He also might not realize that he overdid it until it is too late, so then if the consequences are not greatly damaging then he might consider that his pushing of limits were worth the risk, and so there are degrees, even with how aggressive a person might choose to be and what the consequences could become under various scenarios of unexpected events that might end up happening and the extent that they are prepared for the unexpected event when it ends up happening.

Some guys might find themselves tweaking their system with any tiny mistake that they make, and other guys might need to suffer a certain threshold of damage before he might chose to make some changes to what he is doing.

Some guys might play with little to no back up funds, and then end up pretty much losing most if not all of their bitcoin investment because they were taking too many chances and perhaps they weren't paying attention (or they were too greedy) too.

While it can very well be done, investing all of one's discretionary income doesn't really seem like the best of ideas, it might be considered to be money we can afford to lose but that doesn't mean there aren't others things we could do with it, it's discretionary, that alone already puts some spendings in the same category with it, it was Easter a while back and a person could decide to treat themselves and maybe someone else who's special to them to a nice dinner is a probably nice restaurant, the money spent on that outing will be from their discretionary income meaning that they would probably not be able to fund that dinner if they invest everything in bitcoin unless they are willing to take from their backup funds, so is it possible for a person to be aggressive to the point of using all of their discretionary income to accumulate bitcoin? Yes it is. Is it the smartest thing to do as an investor? Not necessarily.

[Barikui1]

.

While it can very well be done, investing all of one's discretionary income doesn't really seem like the best of ideas, it might be considered to be money we can afford to lose but that doesn't mean there aren't others things we could do with it, it's discretionary, that alone already puts some spendings in the same category with it, it was Easter a while back and a person could decide to treat themselves and maybe someone else who's special to them to a nice dinner is a probably nice restaurant, the money spent on that outing will be from their discretionary income meaning that they would probably not be able to fund that dinner if they invest everything in bitcoin unless they are willing to take from their backup funds, so is it possible for a person to be aggressive to the point of using all of their discretionary income to accumulate bitcoin? Yes it is. Is it the smartest thing to do as an investor? Not necessarily.

It's not just wise to invest more than 60% of your discretionary income especially when you are just starting out your investment journey, when you have not put down in place a reasonable emergency and reserve funds to protect your bitcoin investment, because going too aggressive without putting down measures to safeguard your Bitcoin investment will only keep your investment vulnerable to emergencies that may compel you to temper with it.

And even though you are a veteran investor that has accumulated a reasonable emergency and reserve funds that can sustain your investment for a period of three months or more if emergency comes, it's still unwise to invest more than 90% of your discretionary income because we can't deny the fact that we must make a provision for a discretionary funds we can consume, because tipping a waiter, buying cigarettes or giving yourself a nice treat are inevitable at a point in our accumulation journey.

[Rhow]

While it can very well be done, investing all of one's discretionary income doesn't really seem like the best of ideas, it might be considered to be money we can afford to lose but that doesn't mean there aren't others things we could do with it, it's discretionary, that alone already puts some spendings in the same category with it, it was Easter a while back and a person could decide to treat themselves and maybe someone else who's special to them to a nice dinner is a probably nice restaurant, the money spent on that outing will be from their discretionary income meaning that they would probably not be able to fund that dinner if they invest everything in bitcoin unless they are willing to take from their backup funds, so is it possible for a person to be aggressive to the point of using all of their discretionary income to accumulate bitcoin? Yes it is. Is it the smartest thing to do as an investor? Not necessarily.

It can be a good idea to keep a portion of your discretionary income invested in Bitcoin and another portion as an emergency fund. When the entire portion of your discretionary income is invested in Bitcoin, it will be difficult to maintain that investment in the long term. Any human need can arise at any time. But for those who invest the entire portion of your discretionary income, the investment will definitely be complicated. Aggressive investment can be made in Bitcoin investment if the investor has backup funds. Otherwise, his investment will be risky. That is why I will also never consider the entire portion of your discretionary income as a smart idea.

[POPOLUV]

I think you’re the one who’s getting everything wrong here by misinterpreting what The founding Titan was clearly stating in his post. He never said you invest aggressively when the price is high or low, what he was merely saying is that there’s no market price one cannot invest aggressively what matters most is strictly based on the level of your discretionary income. He clearly wasn’t saying that aggressive buying should be based on market price but should be based on one’s level of discretionary income. If you want to buy aggressively then you should try to improve your discretionary income it’s a simple as that. If you’re buying aggressive based on market price especially when the market is bearish or dip then what you are doing is buying the dip strategy.

aggressive buying has nothing to do with increasing an investor discretionionary income but rather it is the percentage of discretionionary that is being used by an investor in buying bitcoin that truly determined there levels of aggressiveness or if they are being aggressive with there bitcoin accumulation. So an investor doesn't need to increase there discretionionary income in other to be aggressive with there bitcoin accumulation. Someone that used 85-90% of there discretionionary income to buy bitcoin is being aggressive.

So can you spot the difference between what I said and what you are saying in your post about increasing our discretionary income for aggressive buying. If an investor is previously buying bitcoin with let’s say about 40% of his discretionary income and as time goes on he increases his discretionary income used for buying bitcoin from his previous 40% to 85-90% as you suggested is it not still a part of increasing his discretionary income to buy aggressively. So why will you say that aggressive buying have nothing to do with increasing our discretionary income but rather it’s the percentage of discretionary income being used by an investor in buying bitcoin that truly determines their level of aggressive buying, so where is the difference?. What would be most likely understandable to say is that aggressive buying is when investors are buying bitcoin with great speed and buying large amounts or percentage of bitcoin constantly as opposite to how they used buy before.

Base on my understanding so far aggressive buying is more of increasing your accumulation rate , like increasing the amount you are using to buy to a certain extent. Sometimes you can increase it to a rate you can’t keep up with for long . That’s why many usually refers it to as something that’s quite risky which is true especially when you are being aggressive in some shitcoins , because the more you buy thinking you are maximizing your profits the more you messed your self up better to stick with bitcoin , sir jayjuangee can also help With this , explain what it means to be aggressive, properly .

So many investors fail to understand their limits of buying aggressiveness, which might lead to pull out their investments within a short term, buying aggressively is not a bad idea but it becomes bad when you don't plan yourself very well to understand the fact you have reach your level of reserving funds incase of any emergency, people rush to invest with shitcoins  because they are not patient enough to wait for in a long term, and because some many consider short term investment in Bitcoin as the best option of them of making profits. For me i believe that nothing good come easily, so for that reason, i keep buying and accumulating Bitcoin as my discretionary income can carry me, because i will not advise anyone to force himself to increase his mothed of buying, which can result you from pulling out your investments too, just stick with you have at moment and increase when you know that it due for you to increase your buying and it will not affect your emergency fund.

[Creeper0]

It can be a good idea to keep a portion of your discretionary income invested in Bitcoin and another portion as an emergency fund. When the entire portion of your discretionary income is invested in Bitcoin, it will be difficult to maintain that investment in the long term. Any human need can arise at any time. But for those who invest the entire portion of your discretionary income, the investment will definitely be complicated. Aggressive investment can be made in Bitcoin investment if the investor has backup funds. Otherwise, his investment will be risky. That is why I will also never consider the entire portion of your discretionary income as a smart idea.

You should not use all your money in Bitcoin investment. If someone decides to complicate real life and use all his money in Bitcoin, then I will call him an addicted investor, and addiction is never good.

Even while investing, we have to maintain a balance between daily life and investment life and give more priority to daily expenses and daily necessities than investment. On the way, we often have to face various unwritten expenses, we should have a part of our discretionary income to bear these expenses, if you add this part to Bitcoin investment or save it in Bitcoin, then it is definitely a harmful step. I think it is always better to keep such a part in fiat.

[Female King]

It can be a good idea to keep a portion of your discretionary income invested in Bitcoin and another portion as an emergency fund. When the entire portion of your discretionary income is invested in Bitcoin, it will be difficult to maintain that investment in the long term. Any human need can arise at any time. But for those who invest the entire portion of your discretionary income, the investment will definitely be complicated. Aggressive investment can be made in Bitcoin investment if the investor has backup funds. Otherwise, his investment will be risky. That is why I will also never consider the entire portion of your discretionary income as a smart idea.

You should not use all your money in Bitcoin investment. If someone decides to complicate real life and use all his money in Bitcoin, then I will call him an addicted investor, and addiction is never good.

Even while investing, we have to maintain a balance between daily life and investment life and give more priority to daily expenses and daily necessities than investment. On the way, we often have to face various unwritten expenses, we should have a part of our discretionary income to bear these expenses, if you add this part to Bitcoin investment or save it in Bitcoin, then it is definitely a harmful step. I think it is always better to keep such a part in fiat.

In such case you don't call such person an addicted investor but a real traders and a gambler, any one who uses what is not there discretionary income is just gambling with his investment and such person didn't get the right information before investing in bitcoin. Volatile asset such as bitcoin you don't invest with all your money because it doesn't guarantee profit and it's also a long time investment its not what you invest today and expect additional income tomorrow, so any one using what is not there discretionary income is either gambling or got the wrong information about bitcoin investment.

[JayJuanGee]

[edited out]

While it can very well be done, investing all of one's discretionary income doesn't really seem like the best of ideas, it might be considered to be money we can afford to lose but that doesn't mean there aren't others things we could do with it, it's discretionary, that alone already puts some spendings in the same category with it, it was Easter a while back and a person could decide to treat themselves and maybe someone else who's special to them to a nice dinner is a probably nice restaurant, the money spent on that outing will be from their discretionary income meaning that they would probably not be able to fund that dinner if they invest everything in bitcoin unless they are willing to take from their backup funds, so is it possible for a person to be aggressive to the point of using all of their discretionary income to accumulate bitcoin? Yes it is. Is it the smartest thing to do as an investor? Not necessarily.

Even though we consider the investment and the back up to be quite important in terms of aggressively investing into bitcoin and having some cash cushion in the case that income is lower than expected and/or expenses are higher than expected.  At the same time, some level of discretionary consumption is also going to be necessary, and some kinds of discretionary consumption might be more luxurious than others, and each of us has to determine our level of luxury and the extent to which such luxury is helpful to ourselves and/or to people around us who we might feel responsible for.

Years and years of investing does take away from our abilities to discretionarily consume in the present with a hope that we may well put ourselves into a better place in the future, whether it is providing future income security and/or the potential to consume more luxury in the future.

And, so the punchline continues to be that some level of discretionary consumption (whether luxurious or not) is likely helpful to our own abilities to sustain our  bitcoin investment and not to become overly demoralized during periods that it seems to that the BTC price is going against us and sometimes appearing to put us into further and further poverty based on the BTC price going down rather than up.

It can be a good idea to keep a portion of your discretionary income invested in Bitcoin and another portion as an emergency fund. When the entire portion of your discretionary income is invested in Bitcoin, it will be difficult to maintain that investment in the long term. Any human need can arise at any time. But for those who invest the entire portion of your discretionary income, the investment will definitely be complicated. Aggressive investment can be made in Bitcoin investment if the investor has backup funds. Otherwise, his investment will be risky. That is why I will also never consider the entire portion of your discretionary income as a smart idea.

You should not use all your money in Bitcoin investment. If someone decides to complicate real life and use all his money in Bitcoin, then I will call him an addicted investor, and addiction is never good.

Whenever you overdo it in one way or another, you are taking too many risks (which is also referred to as gambling), and so there are degrees of overdoing it and gambling, and some guys might not realize that they are overdoing it until some situations end up happening such as their income going down and/or their expenses going up, and sometimes the negative situations were completely foreseeable. and they were just taking too many chances.. and they might not always realize it while everything seems to be working out fine, until it isn't.

Even while investing, we have to maintain a balance between daily life and investment life and give more priority to daily expenses and daily necessities than investment.

Of course, if our expenses are basic and they are necessities rather than wants, they have to be taken care of first.  We cannot invest using those funds.  Sometimes there can be questions regarding the extent to which some expenses are really basic and they are necessities or they are actually wants... so sometimes guys might miscategorize some of the ways that he is spending on a monthly basis.. and sure, even if he might be using some of his money for wants rather than needs, he is the person who is in the position to determine the extent to which he might be ready, willing and able to forego or to defer some of his wants in order to be able to put some or all of that value into bitcoin investing.

On the way, we often have to face various unwritten expenses, we should have a part of our discretionary income to bear these expenses, if you add this part to Bitcoin investment or save it in Bitcoin, then it is definitely a harmful step. I think it is always better to keep such a part in fiat.

For sure the longer that a person is investing in bitcoin, the more likely he would have had been able to strengthen his cashflow management in terms of having various kinds of back up funds and he might even have some of his back up funds in other investments that he might consider to be sufficiently liquid and potentially not too volatile.. yet at the same time, he may also be giving priority to his bitcoin investment, and he may well be able to vary his level of aggressiveness and even spend periods of considerable aggressiveness based on his having had built up decent amounts of back up funds.

Newbies have more difficult times with some of these cashflow management matters and the strengthening of the cashflow management systems and the backups because it takes resources to build up back ups and to ensure stronger cashflow management system, yet once those cashflow management systems are in a good place, then there can be quite a bit of latitude to be more aggressive or even bordering on overly aggressive for short periods of time since the back up systems are in a good place.  Also we can imagine that guys who might have had been building their bitcoin stack size for 1 or 2 cycles or more might also consider themselves to be in a quite good position in terms of if some real emergency happens, then their bitcoin can also serve as funding (even if they had not yet reached overaccumulation status).. even though perhaps their bitcoin would still be the last of the funds in which a person would draw from, but there is still some comfort in having  those bitcoin funds having had been built up over many years and providing additional financial and/or psychological comfort.

[Sulegzy39]

Each strategy has advantages and downsides. Buying the dip is not an exception, and the stress of timing and waiting might cause an investor to miss out on market chances. For a beginner, I would not recommend purchasing the dip as the ideal approach to begin with. As jayjayjuangee correctly pointed out, an investor with a large lump sum can benefit from buying the dip because it acts as a hedge in the event of a significant decrease in the price of bitcoin. DCA remains a solid approach, and doing so should not prevent anyone from purchasing the dip if they have the extra capital.

[Joeboy]

Whenever you overdo it in one way or another, you are taking too many risks (which is also referred to as gambling), and so there are degrees of overdoing it and gambling, and some guys might not realize that they are overdoing it until some situations end up happening such as their income going down and/or their expenses going up, and sometimes the negative situations were completely foreseeable. and they were just taking too many chances.. and they might not always realize it while everything seems to be working out fine, until it isn't.

Whether decision that folks takes pertaining their investment always comes with it own consequences.. If folks overdo(which is risky), there are consequences to that which is that it could lead to future complications which may even lead to selling off one's holding... And on the other hand, if a guy decides to take a wimpy approach, there is also a consequence to it which is that it could result is a slower accumulation overtime... And this is why balance is very important.. To achieve this balanced investment, it is every important that folks take a good assessment of them themselves so as to very well determine their ability/or capacity...

Of course, if our expenses are basic and they are necessities rather than wants, they have to be taken care of first.  We cannot invest using those funds.  Sometimes there can be questions regarding the extent to which some expenses are really basic and they are necessities or they are actually wants... so sometimes guys might miscategorize some of the ways that he is spending on a monthly basis.. and sure, even if he might be using some of his money for wants rather than needs, he is the person who is in the position to determine the extent to which he might be ready, willing and able to forego or to defer some of his wants in order to be able to put some or all of that value into bitcoin investing.

That's correct sir... Majorly the reasons why most folks aren't able to hold for long time duration is coz they failed to take care of their basic needs first.. Sure there are Needs and there also are Wants, that why the application of common sense is vital to everyone's investment as that could very well enable folks to be able to identify and separate between this their Needs and Wants, and in so doing they are able to prioritize in an order of hierarchy those basic responsibilities which needs immediate attention...

[The Founding Titan]

[edited out]

While it can very well be done, investing all of one's discretionary income doesn't really seem like the best of ideas, it might be considered to be money we can afford to lose but that doesn't mean there aren't others things we could do with it, it's discretionary, that alone already puts some spendings in the same category with it, it was Easter a while back and a person could decide to treat themselves and maybe someone else who's special to them to a nice dinner is a probably nice restaurant, the money spent on that outing will be from their discretionary income meaning that they would probably not be able to fund that dinner if they invest everything in bitcoin unless they are willing to take from their backup funds, so is it possible for a person to be aggressive to the point of using all of their discretionary income to accumulate bitcoin? Yes it is. Is it the smartest thing to do as an investor? Not necessarily.

Even though we consider the investment and the back up to be quite important in terms of aggressively investing into bitcoin and having some cash cushion in the case that income is lower than expected and/or expenses are higher than expected.  At the same time, some level of discretionary consumption is also going to be necessary, and some kinds of discretionary consumption might be more luxurious than others, and each of us has to determine our level of luxury and the extent to which such luxury is helpful to ourselves and/or to people around us who we might feel responsible for.

Years and years of investing does take away from our abilities to discretionarily consume in the present with a hope that we may well put ourselves into a better place in the future, whether it is providing future income security and/or the potential to consume more luxury in the future.

And, so the punchline continues to be that some level of discretionary consumption (whether luxurious or not) is likely helpful to our own abilities to sustain our  bitcoin investment and not to become overly demoralized during periods that it seems to that the BTC price is going against us and sometimes appearing to put us into further and further poverty based on the BTC price going down rather than up.

Even before most people started accumulating bitcoin they were using their discretionary income for one thing or the other and when they started accumulating they did not completely stop all these other discretionary expenses, if I had a hot spring close I would definitely visit from time to time and I would need a bit of my discretionary income to be able to fund such visits, plus there is no valid point to deprive your life of excitement simply because you are accumulating bitcoin, it's very much possible to fit the two in and still have a good enough life.
While we continuously accumulate bitcoin we can also afford to have a bit fun as well, our investment shouldn't be s restriction to living a good life, it's a long term investment after all and in all that time you will do a lot of other things outside your investment.

[JayJuanGee]

Each strategy has advantages and downsides. Buying the dip is not an exception, and the stress of timing and waiting might cause an investor to miss out on market chances. For a beginner, I would not recommend purchasing the dip as the ideal approach to begin with. As jayjayjuangee correctly pointed out, an investor with a large lump sum can benefit from buying the dip because it acts as a hedge in the event of a significant decrease in the price of bitcoin. DCA remains a solid approach, and doing so should not prevent anyone from purchasing the dip if they have the extra capital.

For clarity.. Think about a person who might have had already put a system of bitcoin buying in place, and for the last 6 months, on a weekly basis they had been investing right around $100 into bitcoin and they also had been simultaneously building up their back up funds.

All of a sudden such person receives a bonus at work, and it is right around $2k (which would be the same as 20 weeks of their regular DCA buys).  Maybe the person is nervous about the bitcoin's price going up, and still figuring that they are still new to bitcoin they want to invest as much as they are able to put into bitcoin without overdoing it, yet at the same time, feels like they have no idea if the bitcoin price is going to go up or down, yet they would feel better to establish their bitcoin stash as best as they can so that they feel that they have some kind of a meaningful stack into bitcoin.

Accordingly, even though the $2k bonus was received, the decision was to continue the $100 per week, and then maybe to buy $1k right away with half of the lump sum (at our current prices of $75.9k), but then maybe the other $1k might be used to buy extra if the price goes down, so to buy $200 extra every time the BTC price goes down $3k, starting at $72k (so there would be buy orders of $200 at $72k, $69k, $66k, $63k, $60k, and $57k).. and yeah, there is nervousness about whether or not the BTC price will go down and nervousness about whether so much value ($1k in this example) would be too much to be holding back in the event that the BTC price does not go down and the possibility that none of the buying on the dip orders end up getting filled. 

So there can be quite a dilemma for a newbie, and it might not be worth it for the newbie to put that much value for buying on the dip unless perhaps in an example where he had received $20k, and so then the amounts might end up being 10x higher.. yet no matter the amounts and all the circumstances of the individual, there can be dilemmas about how to allocate lump sum amounts and considerations of instances in which a lot of BTC might end up getting bought at a certain price range, so then if a bunch of bitcoin is bought in a narrow range, there may well be a feeling of justification to hold aside some value for the possibility of buying on dips that might or might not end up happening.

[AuchanX]

Each strategy has advantages and downsides. Buying the dip is not an exception, and the stress of timing and waiting might cause an investor to miss out on market chances. For a beginner, I would not recommend purchasing the dip as the ideal approach to begin with. As jayjayjuangee correctly pointed out, an investor with a large lump sum can benefit from buying the dip because it acts as a hedge in the event of a significant decrease in the price of bitcoin. DCA remains a solid approach, and doing so should not prevent anyone from purchasing the dip if they have the extra capital.

For clarity.. Think about a person who might have had already put a system of bitcoin buying in place, and for the last 6 months, on a weekly basis they had been investing right around $100 into bitcoin and they also had been simultaneously building up their back up funds.

All of a sudden such person receives a bonus at work, and it is right around $2k (which would be the same as 20 weeks of their regular DCA buys).  Maybe the person is nervous about the bitcoin's price going up, and still figuring that they are still new to bitcoin they want to invest as much as they are able to put into bitcoin without overdoing it, yet at the same time, feels like they have no idea if the bitcoin price is going to go up or down, yet they would feel better to establish their bitcoin stash as best as they can so that they feel that they have some kind of a meaningful stack into bitcoin.

Accordingly, even though the $2k bonus was received, the decision was to continue the $100 per week, and then maybe to buy $1k right away with half of the lump sum (at our current prices of $75.9k), but then maybe the other $1k might be used to buy extra if the price goes down, so to buy $200 extra every time the BTC price goes down $3k, starting at $72k (so there would be buy orders of $200 at $72k, $69k, $66k, $63k, $60k, and $57k).. and yeah, there is nervousness about whether or not the BTC price will go down and nervousness about whether so much value ($1k in this example) would be too much to be holding back in the event that the BTC price does not go down and the possibility that none of the buying on the dip orders end up getting filled. 

So there can be quite a dilemma for a newbie, and it might not be worth it for the newbie to put that much value for buying on the dip unless perhaps in an example where he had received $20k, and so then the amounts might end up being 10x higher.. yet no matter the amounts and all the circumstances of the individual, there can be dilemmas about how to allocate lump sum amounts and considerations of instances in which a lot of BTC might end up getting bought at a certain price range, so then if a bunch of bitcoin is bought in a narrow range, there may well be a feeling of justification to hold aside some value for the possibility of buying on dips that might or might not end up happening.

Your example is useful because it brings out the real dilemma of a new investor. If someone suddenly gets 20 weeks worth of discretionary money or bonuses, they don't want to be underexposed and they don't want to miss out on a better opportunity to buy later by investing it all. In this case, I think it's not a good idea to hold back too much for an investor in the early accumulation stage. Because the person has only been accumulating for 6 months. During this time, he hasn't been able to build his stash very well. If he gets a $2,000 bonus right now, I would try to look at it in 3 buckets.

1) Some can be bought now.

2) Some ongoing DCA can be strengthened.

3) Some dip buy reserve can be kept.

But in the case of an early accumulator, I would usually give more weight to the first two. Because he is still building a Bitcoin position, not in the maintenance stage.

[Hardyrobust]

I think you’re the one who’s getting everything wrong here by misinterpreting what The founding Titan was clearly stating in his post. He never said you invest aggressively when the price is high or low, what he was merely saying is that there’s no market price one cannot invest aggressively what matters most is strictly based on the level of your discretionary income. He clearly wasn’t saying that aggressive buying should be based on market price but should be based on one’s level of discretionary income. If you want to buy aggressively then you should try to improve your discretionary income it’s a simple as that. If you’re buying aggressive based on market price especially when the market is bearish or dip then what you are doing is buying the dip strategy.

aggressive buying has nothing to do with increasing an investor discretionionary income but rather it is the percentage of discretionionary that is being used by an investor in buying bitcoin that truly determined there levels of aggressiveness or if they are being aggressive with there bitcoin accumulation. So an investor doesn't need to increase there discretionionary income in other to be aggressive with there bitcoin accumulation. Someone that used 85-90% of there discretionionary income to buy bitcoin is being aggressive.

So can you spot the difference between what I said and what you are saying in your post about increasing our discretionary income for aggressive buying. If an investor is previously buying bitcoin with let’s say about 40% of his discretionary income and as time goes on he increases his discretionary income used for buying bitcoin from his previous 40% to 85-90% as you suggested is it not still a part of increasing his discretionary income to buy aggressively. So why will you say that aggressive buying have nothing to do with increasing our discretionary income but rather it’s the percentage of discretionary income being used by an investor in buying bitcoin that truly determines their level of aggressive buying, so where is the difference?. What would be most likely understandable to say is that aggressive buying is when investors are buying bitcoin with great speed and buying large amounts or percentage of bitcoin constantly as opposite to how they used buy before.

The point is that buying bitcoin aggressively has nothing to with an investor improving his discretionionary as you said in your previous post. An investor that has $100 and decide to use 85% or more of his discretionionary income for accumulating bitcoin is being aggressive. He doesn't needs to increase or improve his discretionionary income from the $100 to $300 or more before we can say they can be aggressive. Aggressiveness has to do with the percentage of discretionionary income used in accumulating bitcoin and not by improving ones discretionionary income before the investor can be aggressive in buying bitcoin. Hope you can be able to mark the distinction now , that an investor doesn't need to improve there discretionionary income before they can be aggressive in buying bitcoin.

[Crakryptvest]

You should not use all your money in Bitcoin investment. If someone decides to complicate real life and use all his money in Bitcoin, then I will call him an addicted investor, and addiction is never good.

Even while investing, we have to maintain a balance between daily life and investment life and give more priority to daily expenses and daily necessities than investment. On the way, we often have to face various unwritten expenses, we should have a part of our discretionary income to bear these expenses, if you add this part to Bitcoin investment or save it in Bitcoin, then it is definitely a harmful step. I think it is always better to keep such a part in fiat.

Such person is better called a gambler because a real investor don't just do things carelessly, the follow the real concept of investment, there is no where it's been said that we should invest all the funds we have, it has always been our discretionary income so anyone going outside that is will be doing the at his own peril which is bad for any investor.

The second point you made is a very important one as such, investment is very important which I don't joke with but our basic needs, emergency needs and every other need should also be taken care of that's why it is necessary for us not to try to go beyond our power while investing in Bitcoin, when I remember that their is something like discreationary income as an investor I become much relieved since I know that i can figure it out and keep going in with it.

[Sticky Bomb]

'''

It's not just wise to invest more than 60% of your discretionary income especially when you are just starting out your investment journey, when you have not put down in place a reasonable emergency and reserve funds to protect your bitcoin investment, because going too aggressive without putting down measures to safeguard your Bitcoin investment will only keep your investment vulnerable to emergencies that may compel you to temper with it.

Some people start out their investment journey already having their backup funds/assets ready and such people might want to get much ahead in their accumulation journey within a limited time and may decide to lump sum or front load their investment with available discretionary income, they are still on the right track. Such people can invest all their discretionary income comfortably from time to time since they've already built out a financial cushion that would cater for emergencies or discretionary consumption prior to getting involved in bitcoin and such people may just want to diversify their portfolio into bitcoin and they decide to get very aggressive within the limited time of their accumulation to reach their accumulation target faster and continue holding for a long-term.
Aggressiveness is investor specific and each investor should identify how aggressive they can be and still be comfortable with it, there is no benchmark to how aggressive an investor can become as long as he understands what he is doing and not in any way being over aggressive and end up messing up his finances and/or his bitcoin portfolio.