Reasons to use only Discretionary Income for Bitcoin investment.

[SuperBitMan]

Some newbies won't understand why they say use only your Discretionary income to invest in Bitcoin or why it is said that "Don’t invest money you can’t afford to lose."
It is very important that newbies should know the reason why they must use only their discretionary income to accumulate or invest in Bitcoin.
And this is the reason why, other members can still add to this I believe it will help not just newbies but other members who are still not aware.

1. Bitcoin is Highly Volatile: you need to understand that Bitcoin is highly volatile in nature meaning it is not constant in it's price the price changes every minute meaning it rises and falls frequently so If you use money meant for your rent, food, or bills, you risk being stranded during a fall of Bitcoin price.
Using only your Discretionary income protects your lifestyle even if Bitcoin falls.

2. Protects You from Emotional Stress: If your important and essential funds are tied up in Bitcoin you will be panicking at every dip that happens in Bitcoin which will cause you emotional stress or even lead to shock that can end your life so using discretionary income makes you stay calm and patient, making it easier to HODL for long term without fear and panic.

3. Encourages Long Term Growth Mindset: if you are using only your Discretionary income to accumulate Bitcoin it will make you to HODL longer because the money you are using is what you actually don't need for any essential thing, so you can hold for years without even panicking.

4. Prevent Debt: some set of people borrow money just to invest in Bitcoin which is very bad because if a dip happens and the due date to repay comes you will become in debt and loss at same time, so no matter how small your Discretionary income is use only it to accumulate Bitcoin it will prevent you from debt.

When you are using only your discretionary income to invest in Bitcoin it means you are investing with peace of mind. Even if Bitcoin falls, your life, bills, and responsibilities stay safe and intact, so use only your Discretionary income for Bitcoin investment or accumulation.

[Dareo]

I have had friends who jumped into Bitcoin when they could not afford to lose that money and it almost put them out of business when the market sank. They were not thinking in the long run that they only wanted to make fast money and such a mentality almost always leads to panicking selling other times regretting decisions. The fact is that Bitcoin is more rewarding when patience is involved and you cannot be patient when your daily activities depend on how much you have invested. The discretionary income will give you that confidence to ride the storms without anxiety. What you invest is not the issue, it is only your ability to stick to it and be sure to withstand low points to receive the long term gains.

[Shadiq]

There are other reasons to say to invest what you can afford to lose, what you said is correct, but I would like to add something else that should have been added to the OP.

Invest only what you can afford to lose. Reasons -
*So that you don't have to face panic during market volatility.
*So that you can leave money in investment funds for the long term.
*So that if you lose money for any reason, there will be no major change in your quality of life.
*There is no guaranteed result in long-term investment, so even if there is a small chance of loss, you should be prepared for it.
*Even during market volatility, stress or a long-term mindset encourages it as you said.

I think the main purpose of saying to invest money that you can afford to lose is the possibility of loss. So that even if you accidentally lose money, it will not have a major negative impact on your life.

[Merit.s]

Your discretionary income is that extra money that you don't have plans for after you must have taken care you your basic needs and monthly expenses. Some people use their extra money to gamble, club, drink, womanize and many more but it's wise for you not to use this funds for consumption purpose. Rather, invest it into bitcoin and save the value of your funds for the future.

Investing with your discretionary income allows you to pile up more bitcoin for yourself overtime and hodli till your desired time.

[qwertyup23]

Your discretionary income is that extra money that you don't have plans for after you must have taken care you your basic needs and monthly expenses. Some people use their extra money to gamble, club, drink, womanize and many more but it's wise for you not to use this funds for consumption purpose. Rather, invest it into bitcoin and save the value of your funds for the future.

Like what the name suggests, "discretionary" means personal judgement. By applying it to your income, if you have discretionary income, this means that you are free to use that portion to whatever nature you desire.

Like what most have mentioned, you may definitely use it for your savings, entertainment, food, investment, etc. Preferably, however, almost everyone recommends using it primarily for cryptocurrency investments for long-term HODLing.

Now the reason on why discretionary income is to be preferred because this is part of your income which arises your savings. After allocating all the expenses, you are left with a surplus of money that you can further increase for future use.

[Solosanz]

Aren't most people like that in the first place?

I'm curious which person who get paid for $2K in fiat, then he immediately convert it to Bitcoin the whole $2K he got paid. Is such person able to survive without eating food and sleep on the street?

Some people use their extra money to gamble, club, drink, womanize and many more but it's wise for you not to use this funds for consumption purpose. Rather, invest it into bitcoin and save the value of your funds for the future.

Investing with your discretionary income allows you to pile up more bitcoin for yourself overtime and hodli till your desired time.

I don't think it was wrong for someone to spend their discretionary income for entertainment because that's what supposed to be. Discretionary income is up to anyone how they gonna spend for, it could be entertainment, saving or investment.

[Zoomic]

It is the early days of bitcoin that we should be very much cautious about the advice of investing what you can lose into bitcoin. We can take such advice seriously for shits but for bitcoin, invest the amount you want to use for investment. If you have $10k and you want to invest $3k, invest it, even if you can't to lose it.
Your money is not going to loselt in bitcoin and we all know about it. So, what is the essence of investing only what you are able to lose?

[SuperBitMan]

Aren't most people like that in the first place?

I'm curious which person who get paid for $2K in fiat, then he immediately convert it to Bitcoin the whole $2K he got paid. Is such person able to survive without eating food and sleep on the street?

Solosanz some set of people can use there full salary to invest in Bitcoin hoping to get a little add to the money in a week time, some Bitcoin traders does this.
Haven't you seen people that use there salary to gamble in other to get additional money, that is how some set of people especially Bitcoin traders do.

Is not only about using your full salary to invest in Bitcoin if for example you are receiving $2k monthly and the money for your essential needs for the month is $1500 meaning your Discretionary income for that month is $500 if you use $800 or even $600 to accumulate Bitcoin you may get into a financial situation that you will make have no other option but to dip hands into your Bitcoin investment, so that is why I'm advising that you stay within your Discretionary income so you won't get yourself into a financial mess, because any bill or essential needs you leave will be waiting for you and if you keep ignoring it, it will keep piling up and can affect you badly in the future.
So everyone should use only his or her discretionary income to accumulate Bitcoin the only time you may go beyond that is when you have a strong backup funds.

[Patikno]

Some newbies won't understand why they say use only your Discretionary income to invest in Bitcoin or why it is said that "Don’t invest money you can’t afford to lose."
It is very important that newbies should know the reason why they must use only their discretionary income to accumulate or invest in Bitcoin.
And this is the reason why, other members can still add to this I believe it will help not just newbies but other members who are still not aware.

1. Bitcoin is Highly Volatile: you need to understand that Bitcoin is highly volatile in nature meaning it is not constant in it's price the price changes every minute meaning it rises and falls frequently so If you use money meant for your rent, food, or bills, you risk being stranded during a fall of Bitcoin price.
Using only your Discretionary income protects your lifestyle even if Bitcoin falls.

2. Protects You from Emotional Stress: If your important and essential funds are tied up in Bitcoin you will be panicking at every dip that happens in Bitcoin which will cause you emotional stress or even lead to shock that can end your life so using discretionary income makes you stay calm and patient, making it easier to HODL for long term without fear and panic.

3. Encourages Long Term Growth Mindset: if you are using only your Discretionary income to accumulate Bitcoin it will make you to HODL longer because the money you are using is what you actually don't need for any essential thing, so you can hold for years without even panicking.

4. Prevent Debt: some set of people borrow money just to invest in Bitcoin which is very bad because if a dip happens and the due date to repay comes you will become in debt and loss at same time, so no matter how small your Discretionary income is use only it to accumulate Bitcoin it will prevent you from debt.

When you are using only your discretionary income to invest in Bitcoin it means you are investing with peace of mind. Even if Bitcoin falls, your life, bills, and responsibilities stay safe and intact, so use only your Discretionary income for Bitcoin investment or accumulation.

I often find some newbies mistaken because of the words "Discretionary Income" and "Don't invest money you can't afford to lose", because they usually think that investing in Bitcoin will have the possibility of losing money due to the volatility that occurs. In fact, this is not the case, I usually explain to them that these words mean that we should invest in Bitcoin using money that we can hold for the long term, so I will explain some of the things that the OP has said. However, I usually prioritize and advise them to be in Bitcoin, even if they have an interest in altcoins, then I only advise them to remain careful and dyor. Apart from that, I also usually advise them to avoid perpetual or futures, because this is also usually a problem for a newbie or beginner.

[SuperBitMan]

It is the early days of bitcoin that we should be very much cautious about the advice of investing what you can lose into bitcoin. We can take such advice seriously for shits but for bitcoin, invest the amount you want to use for investment. If you have $10k and you want to invest $3k, invest it, even if you can't to lose it.
Your money is not going to loselt in bitcoin and we all know about it. So, what is the essence of investing only what you are able to lose?

Yeah Bitcoin is a very good investment and it has proven it self for years however one still need to be very careful in his or her Bitcoin investment because no one can tell what will happen in the future, I believe when Bitcoin was created in 2008 no one believes Bitcoin will be this big, the future is unknown.

Your advice can put a newbie into a big trouble, if he has $10k and he uses $3k that his not ready to lose like you said so maybe he will be needing the $3k in the next 1 month to come and for something very important for example paying of house rent etc. and he decided to follow your advice and then invested the $3k and when that time he will be needing the money starts coming closer a dip happens in Bitcoin what will become of him at that moment. So this are the reason will advise to use only your Discretionary income to accumulate Bitcoin so has not to get yourself into a financial mess.

[Floxynice]

Alot has changed since Bitcoin was created till date. I can say, the confidence level now towards Bitcoin has grown greatly that anyone can now invest in Bitcoin with the little money they have available either  through DCA or a lump sum investment.

Investing with your discretionary income might not be enough if the investor does not understand how investing in Bitcoin works. I will rather tell newbies to try to do research to know the risks involved and how profitable investing in bitcoin can be. The result they would get from their findings will help them decide how much of their income they want to invest.

No one loves to lose money.  Don't tell me to invest what I can afford to lose; tell me things I should do to avoid losing that money or even minimise the risks of losing that money.

[collecttmaster]

No one loves to lose money.  Don't tell me to invest what I can afford to lose; tell me things I should do to avoid losing that money or even minimise the risks of losing that money.

If you are not losing a lot of money, you are most certainly not making a lot of money and will never be rich. This is the irony that the person with a poor mindset does not understand. Most humans on the planet have a poor person's mindset.

Losing money is good as long as you are earning even more money. Learn that and stop with this childish fear of losing money.

[Zoomic]

No one loves to lose money.  Don't tell me to invest what I can afford to lose; tell me things I should do to avoid losing that money or even minimise the risks of losing that money.

If you are not losing a lot of money, you are most certainly not making a lot of money and will never be rich. This is the irony that the person with a poor mindset does not understand. Most humans on the planet have a poor person's mindset.

Losing money is good as long as you are earning even more money. Learn that and stop with this childish fear of losing money.

I do not actually understand the perceptive you are coming from. You mean losing money is a sign of being a wealthy man or a sign of having a big money.
I thought that being very judicious and not lose money is a good way to be rich but I am just hearing a different thing altogether this night.
So, it will be fine to say that we should learn how to lose money in order to be rich.

[salad daging]

I'm curious which person who get paid for $2K in fiat, then he immediately convert it to Bitcoin the whole $2K he got paid. Is such person able to survive without eating food and sleep on the street?

Maybe he will die for bitcoin because he doesn't eat and can't survive because he exchanged everything he had for bitcoin.
Then what kind of fool would do this?
50% of $2000 is still reasonable for survival.
10% of $2000 is even better, meaning he has emergency funds.

Is not only about using your full salary to invest in Bitcoin if for example you are receiving $2k monthly and the money for your essential needs for the month is $1500 meaning your Discretionary income for that month is $500 if you use $800 or even $600 to accumulate Bitcoin you may get into a financial situation that you will make have no other option but to dip hands into your Bitcoin investment, so that is why I'm advising that you stay within your Discretionary income so you won't get yourself into a financial mess, because any bill or essential needs you leave will be waiting for you and if you keep ignoring it, it will keep piling up and can affect you badly in the future.
So everyone should use only his or her discretionary income to accumulate Bitcoin the only time you may go beyond that is when you have a strong backup funds.

After basic monthly needs are met, discretionary funds are worth investing in Bitcoin a strategy some people, including myself use to accumulate Bitcoin.

This becomes problematic if one delays basic needs and prioritizes Bitcoin, as they may face issues later on. In such cases they might end up selling their Bitcoin prematurely.

[Asiska02]

When you are using only your discretionary income to invest in Bitcoin it means you are investing with peace of mind. Even if Bitcoin falls, your life, bills, and responsibilities stay safe and intact, so use only your Discretionary income for Bitcoin investment or accumulation.

Discretionary income really save an investors a lot of things, from physical to emotional stuffs that can really affect him while investing in Bitcoin. Using discretionary income would help to minimize or stop the occurrence of the above listed points you’ve given out. Those that make use of discretionary income for investment are the happiest and less worried investors because they’ll only see their investment there as another disposable expense that the outcome won’t really matter to them. They go with the flow and become happy if they profit and still goes on if they don’t profit .

Your discretionary income is that extra money that you don't have plans for after you must have taken care you your basic needs and monthly expenses. Some people use their extra money to gamble, club, drink, womanize and many more but it's wise for you not to use this funds for consumption purpose. Rather, invest it into bitcoin and save the value of your funds for the future.

Discretionary income can be used for anything, it doesn’t have to be Bitcoin investment but if it’s invested into Bitcoin, it would be better because of the future prospect of Bitcoin and the chance for profitability in the future. Discretionary income are not spent wisely by many people and that’s why it is suggested that when invested in Bitcoin, it would have accumulate profits overtime instead of spending it on what is not profiting and just eat up your money at a go.

[Davidvictorson]

Discretionary income is not even money that you can afford to lose. In my estimation, it is money that is waiting to be spent on something that is not yet. Known. It is not even emergency funds. But I see the role it plays as a means for managing risks because you already know that if you use it to invest I'm Bitcoin you may lose it or not. Therefore your mind is already made up on either of the outcomes. And if you like, you can even use this discretionary income for your DCA for Bitcoin.

[collecttmaster]

No one loves to lose money.  Don't tell me to invest what I can afford to lose; tell me things I should do to avoid losing that money or even minimise the risks of losing that money.

If you are not losing a lot of money, you are most certainly not making a lot of money and will never be rich. This is the irony that the person with a poor mindset does not understand. Most humans on the planet have a poor person's mindset.

Losing money is good as long as you are earning even more money. Learn that and stop with this childish fear of losing money.

I do not actually understand the perceptive you are coming from. You mean losing money is a sign of being a wealthy man or a sign of having a big money.
I thought that being very judicious and not lose money is a good way to be rich but I am just hearing a different thing altogether this night.
So, it will be fine to say that we should learn how to lose money in order to be rich.

You are mistaken in your understanding because you probably read information written by other poor or middle class people, who are also poor. Most humans are afraid of losing money, like children who don't want to lose their favorite toys. This is why they don't invest and when they invest, they panic and make bad mistakes all the time.

A person who is good with money, does not fear losing it. They have no emotional attachment to money, but the desire for more is what drives them. They take more risks, better risks. They hold investments longer even through periods of massive losses. They do not care. That is the right approach towards money. Remember the key different that I wrote, it is good to lose money only if you are earning even more money. Lose $1000 today, make $2000 tomorrow. If it was not for this difference, gamblers and other idiots who ruin their lives would think they are being smart with their money.  

You can use this approach strategically with shitcoins. If you are already down 90% or more on a shitcoin, often it is better to hold it and not sell so you have a chance of recovery. Why? If you sell you recover less than 10%, useless small amount of money. If it recovers you can regain everything or even sometimes earn many multipliers on your money, 10, 100, 1000x. So the reward and risk ratio tells you it is better to hold it to 0% for a chance at massive recovery. Who cares if you lose that extra 10%, you lost most of it already and especially if you are also making more more money on other coins?

This is why you see sometimes very big traders losing millions on stupid leverage bets. Why would they care about losing 2 or 3 million if they earn 50 or even $100 million?  

[Proty]

The OP have really nailed it down here . Discretionary income is what is needed for investing in bitcoin. The main reason why it is always advisable to use our discretionary income for bitcoin investment is because since we won't be needing them soon. Investing money that is meant for other purposes into bitcoin is very risky since bitcoin is volatile in nature and the tendency of getting back the money when our investment may be in profit is not guarantee. However if we are to use discretionary income the pressure to sell without reaching out investment goals will not be there.

[Alone055]

I think the main purpose of saying to invest money that you can afford to lose is the possibility of loss. So that even if you accidentally lose money, it will not have a major negative impact on your life.

No, the major reason why one should only use their extra money or money that they don't need for anything else or won't need it in the near future is that the money can get stuck because of the volatility of the market, so even if someone doesn't lose the money but they need it for something else, and they have no other way, they will be forced to sell at a loss because of the emergency for which they need the funds, and that is why it's not wise for one to invest money that is supposed to be used for something else in Bitcoin or any other cryptocurrency.

Basically, most of the points mentioned in the OP or said by you are all interconnected to this single point. When you invest money that you were supposed to use for something else, and the market falls, you will become stressful, you will panic, you will even get indebted because you will need money and if you don't want to sell your Bitcoin at a loss and lose money, you will have to find another way and get some money.

This is why it's very important for people to at least gain some knowledge before they make an investment, so that they can understand that if they invest when the market is going down or is about to go down, the bear market can take years to pass.

[Sticky Bomb]

1. Bitcoin is Highly Volatile: you need to understand that Bitcoin is highly volatile in nature meaning it is not constant in it's price the price changes every minute meaning it rises and falls frequently so If you use money meant for your rent, food, or bills, you risk being stranded during a fall of Bitcoin price.
Using only your Discretionary income protects your lifestyle even if Bitcoin falls.

Price changes in split second and not even up to a minute, Bitcoin is highly volatile and the only way to catch a specific price is by starting buy it sell orders. When you but outside your discretionary funds, there is a total of selling in loss of Bitcoin is experiencing a negative price correction below your every point at the time you wish to use the invested funds. Furthermore, it's best practice tho but with discretionary income so you can go for a long-term holding plan with your investment.