Three best ways to hold bitcoin combined.

[Moreno233]

And it is necessary to also understand that even when you don't have regular income you can still invest in bitcoin using any method that you are comfortable with. As for purchasing bitcoin with DCA, investors with regular income are more comfortable with it, but when it comes to investing in lump some, investors investors with irregular income will find it more convenient.

You can still use the DCA method even though your income is not regular, a lot of people are doing it and it works perfectly fine. Let's take for instance, you are running a business that rakes in so much profits sometimes but other times the profits is small, what you can do is to draw a sample duration of six months and make estimate of your average profits, from there you can calculate what your discretionary income can be based on those estimates. As soon as the discretionary income is know, then you can then set aside the portion for investing in Bitcoin via the DCA method and the portion to set aside as protective funds. In this situation, the DCA amount can be constant, while the protective funds can vary based on business output but the key point is that the DCA method will be running effectively.

[samadam007]

These points are good points you have made, but I feel not every Bitcoin investor can follow these methods you have outlined here. Many times, how you earn can affect your method of investing, these points you made here are good points, but when your earning are not coming as expected, your investing plan can be altered.
It is obvious that not everyone has regular income, and in a situation whereby your income is not regular, buying in lump some might be better off.
And it is necessary to also understand that even when you don't have regular income you can still invest in bitcoin using any method that you are comfortable with. As for purchasing bitcoin with DCA, investors with regular income are more comfortable with it, but when it comes to investing in lump some, investors investors with irregular income will find it more convenient.

I disagree with you on this; Having a regular income may make it easier to follow a fixed DCA schedule, but it does not mean those with irregular income cannot use DCA effectively. Same way an irregular income does not mean lump sum is automatically the better option. The important factors are whether the strategy is sustainable, fits the investor cash flow and allows them to invest without putting their finances under unnecessary pressure. Some folks with irregular income buy Bitcoin whenever they get paid, while others save first and buy later. Both can work if they fit the person financial situation.

Instead of saying that DCA is for regular income and lump sum is for irregular income…it is better to say that either method can work,depending on an individual financial situation

[Hardyrobust]

And it is necessary to also understand that even when you don't have regular income you can still invest in bitcoin using any method that you are comfortable with. As for purchasing bitcoin with DCA, investors with regular income are more comfortable with it, but when it comes to investing in lump some, investors investors with irregular income will find it more convenient.

You can still use the DCA method even though your income is not regular, a lot of people are doing it and it works perfectly fine. Let's take for instance, you are running a business that rakes in so much profits sometimes but other times the profits is small, what you can do is to draw a sample duration of six months and make estimate of your average profits, from there you can calculate what your discretionary income can be based on those estimates. As soon as the discretionary income is know, then you can then set aside the portion for investing in Bitcoin via the DCA method and the portion to set aside as protective funds. In this situation, the DCA amount can be constant, while the protective funds can vary based on business output but the key point is that the DCA method will be running effectively.

Going by your explanation, you may end up not being able to figure out your discretionary income especially when you are talking about income not being regular. So the best way is to figure out your discretionary income whenever you have your income available by first attending to your needs then whatever that is left is discretionary funds. But if you decide to go by estimation, your expenses or the anticipated income for a month may not be as  planned by then you may have end up using money for your expenses to invest in bitcoin.

[Charcol]

And it is necessary to also understand that even when you don't have regular income you can still invest in bitcoin using any method that you are comfortable with. As for purchasing bitcoin with DCA, investors with regular income are more comfortable with it, but when it comes to investing in lump some, investors investors with irregular income will find it more convenient.

You can still use the DCA method even though your income is not regular, a lot of people are doing it and it works perfectly fine. Let's take for instance, you are running a business that rakes in so much profits sometimes but other times the profits is small, what you can do is to draw a sample duration of six months and make estimate of your average profits, from there you can calculate what your discretionary income can be based on those estimates. As soon as the discretionary income is know, then you can then set aside the portion for investing in Bitcoin via the DCA method and the portion to set aside as protective funds. In this situation, the DCA amount can be constant, while the protective funds can vary based on business output but the key point is that the DCA method will be running effectively.

Determining the discretionary income for the next month based on the average profit of the last six months can sometimes be wrong. Because even if the business can calculate the average profit, it does not guarantee the money in hand. It can also be wrong to think that just because you have made a good profit for the last six months, it will remain the same in the next month. Your business sales may decrease, debts may be stuck, and some sudden business or family expenses may come that you did not keep in the previous calculation. In this case, if you determine the fixed DCA based on the average profit in advance, then you may be unknowingly spending your uncertain income in the future. So I would say, let your money come to you first, then business operating expenses, personal needs, family responsibilities, debts or unique liabilities need to be met. After everything, you can divide the real discretionary income that will remain after everything and continue the DCA on a weekly or monthly basis if you want. You can even decide for yourself whether to buy without dividing the discretionary money.

[Derekfunds]

And it is necessary to also understand that even when you don't have regular income you can still invest in bitcoin using any method that you are comfortable with. As for purchasing bitcoin with DCA, investors with regular income are more comfortable with it, but when it comes to investing in lump some, investors investors with irregular income will find it more convenient.

You can still use the DCA method even though your income is not regular, a lot of people are doing it and it works perfectly fine. Let's take for instance, you are running a business that rakes in so much profits sometimes but other times the profits is small, what you can do is to draw a sample duration of six months and make estimate of your average profits, from there you can calculate what your discretionary income can be based on those estimates. As soon as the discretionary income is know, then you can then set aside the portion for investing in Bitcoin via the DCA method and the portion to set aside as protective funds. In this situation, the DCA amount can be constant, while the protective funds can vary based on business output but the key point is that the DCA method will be running effectively.

I get your point but in this kind of business, honestly I don't think it is advisable for someone to be accumulating Bitcoin if that is their only source of getting income because it is going to affect you in one way or the other. If you have a business that the profit is not stable that is you can not really tell for sure what you will get at the end of every week or month then how do you intend to sort your bills and how do you intend to use such business to be getting discretionary income for Bitcoin investment? Bitcoin Investment is not a must and in this case it appears you will be forcing or squeezing out your discrestionary income which is very bad.

[BluebloodCXVI]

We share ideas in this forum, and so some of the ideas are going to overlap, and there might be some guys who try something like 1/3 of their discretionary income on each of the three categories of investing, savings and discretionary consumption, and they might find that to be a good formula to start out with, and then if they might want to adapt the formula, then they might choose to adapt it at a later point down the road after they had already been trying the 1/3 in each category way of allocating their discretionary funds.

I don't see anything wrong with trying out some variation of what someone else is doing (or had done) if the system and/or the allocations might make sense to the person who is deciding to implement such a system/practice.

Of course not every framework has to be perfect before a person can start using it.
If someone doesn’t already have a system for managing their discretionary income, it will be in their best interest to try a simple one rather than for them to have no plan at all.

As time goes on and they gain more experience and understand their finances more better, they can always tweak it to better suit their situation

[Gost ms]

And it is necessary to also understand that even when you don't have regular income you can still invest in bitcoin using any method that you are comfortable with. As for purchasing bitcoin with DCA, investors with regular income are more comfortable with it, but when it comes to investing in lump some, investors investors with irregular income will find it more convenient.

You can still use the DCA method even though your income is not regular, a lot of people are doing it and it works perfectly fine. Let's take for instance, you are running a business that rakes in so much profits sometimes but other times the profits is small, what you can do is to draw a sample duration of six months and make estimate of your average profits, from there you can calculate what your discretionary income can be based on those estimates. As soon as the discretionary income is know, then you can then set aside the portion for investing in Bitcoin via the DCA method and the portion to set aside as protective funds. In this situation, the DCA amount can be constant, while the protective funds can vary based on business output but the key point is that the DCA method will be running effectively.

Why are you adopting such a big system and such a complex system? Why are you not adopting the easy system, like whenever you get some income, then after deducting all your expenses, why are you not investing the amount that is left over or considering it as discretionary income. It is not that you always have to invest the same amount. Continue investing according to your ability, no matter what the amount is. But yes, sometimes it is seen that due to some additional expenses and some complexity of the source of income, sometimes it is difficult to find discretionary income or it is not found at that time, you can stop your investment for a while.

[Odusko]

And it is necessary to also understand that even when you don't have regular income you can still invest in bitcoin using any method that you are comfortable with. As for purchasing bitcoin with DCA, investors with regular income are more comfortable with it, but when it comes to investing in lump some, investors investors with irregular income will find it more convenient.

You can still use the DCA method even though your income is not regular, a lot of people are doing it and it works perfectly fine. Let's take for instance, you are running a business that rakes in so much profits sometimes but other times the profits is small, what you can do is to draw a sample duration of six months and make estimate of your average profits, from there you can calculate what your discretionary income can be based on those estimates. As soon as the discretionary income is know, then you can then set aside the portion for investing in Bitcoin via the DCA method and the portion to set aside as protective funds. In this situation, the DCA amount can be constant, while the protective funds can vary based on business output but the key point is that the DCA method will be running effectively.

Why are you adopting such a big system and such a complex system? Why are you not adopting the easy system, like whenever you get some income, then after deducting all your expenses, why are you not investing the amount that is left over or considering it as discretionary income. It is not that you always have to invest the same amount. Continue investing according to your ability, no matter what the amount is. But yes, sometimes it is seen that due to some additional expenses and some complexity of the source of income, sometimes it is difficult to find discretionary income or it is not found at that time, you can stop your investment for a while.

what is most important for us as small investors is to put in efforts to separate our discretionary income, our emergency fund and monitor our cashflow to balance our bankroll before venturing into DCA this is the best and peaceful way to approach bitcoin investment most especially if you are investing and holding for the long term period, adopting a complex approach can put an investors into condition that could affect their investment in the long run.

[Moreno233]

what is most important for us as small investors is to put in efforts to separate our discretionary income, our emergency fund and monitor our cashflow to balance our bankroll before venturing into DCA this is the best and peaceful way to approach bitcoin investment most especially if you are investing and holding for the long term period, adopting a complex approach can put an investors into condition that could affect their investment in the long run.

You don't need to do all that you have listed before starting your investment via the DCA method because most of these items may not readily be available when you start, you only get to fix them when you are already invested. For instance, how can you set up emergency funds for an investment you have not even started? What will you be protecting with such emergency fund? The right thing is to get started and while at it, you begin to plan on how to protect the investment which is what you need the emergency funds for. As long as you are able to get discretionary income, you can get started right away even if it means starting very small and growing with time.

[PhilosopherKing]

I get your point but in this kind of business, honestly I don't think it is advisable for someone to be accumulating Bitcoin if that is their only source of getting income because it is going to affect you in one way or the other.

The mistake you are making is thinking that it investment must always be consistent. Person can also be inconsistent too in their ongoing accumulation. Again, it is not only from the income that person receives that they can use for their investments. Person can also gift you with money which can be used for you discretionary income. See the point isn't where or how person get their discretionary income, what is important to start even if person start itlittle and increases along the way

[samadam007]

The mistake you are making is thinking that it investment must always be consistent. Person can also be inconsistent too in their ongoing accumulation. Again, it is not only from the income that person receives that they can use for their investments. Person can also gift you with money which can be used for you discretionary income. See the point isn't where or how person get their discretionary income, what is important to start even if person start itlittle and increases along the way

There is no rule that folks must buy BTC on fixed schedule forever. Life can happen to anyone and finances can change. The way you presented it might mislead because it is suggesting inconsistency as strategy rather than something that happens due to circumstances. Long term strategies like DCA, we preach consistency is one of the greatest advantages because it remove the need for one to time the market.
You also said "it does not matter where or how discretionary income is gotten" the statement is too broad cos it matter. Not every of funds should be used. Like money for essential needs, emergency or borrowed money shouldn't be invested

The better message should be : invest with money you can afford to set aside and leave invested. Whether it comes from salary, gift or bonus….doesn't matter as long as make sure it not money you need for important expenses. If you can stay consistent, that's great; If circumstances force you to miss some purchases, then it's understandable

[AmaGold70]

The financial strength of every individual is different and that would determine the type of investment strategy to use to match the standard of such individual as there would be other expenses to make aside investing too.

For me, I believe DCA is the best and that suits my standard of living because I would not need to spend more than I earn on investment which would be for a long term and not actually any left to settle other bills.

The lump sum doesn't really sit well for me because it requires to put in a huge amount rather than passive investment and that would definitely not work for me. Waiting for the dip is not a bad strategy as well but it doesn't stop you from starting to invest because it's never too late or too early.

Every bitcoin investor has to engage in any investment method that suits him most. While some investors might be comfortable with the method of DCA, others may be comfortable with lump some method. However, DCA method is most convenient for many investors, more especially those with regular income including me, because is a method where you invest some percentage of your discretionary income at a regular interval.
But Bitcoin investing is more cumbersome for lump some investors because it requires good or huge amount of money, and in most cases these are investors with unstable income. This kind of investors may not be convenient with the amount of money he is releasing to buy bitcoin, but because his income is unstable, and he sees the importance, and need to invest in Bitcoin, he has to buy to secure financial stability in the long run.

[Charcol]

what is most important for us as small investors is to put in efforts to separate our discretionary income, our emergency fund and monitor our cashflow to balance our bankroll before venturing into DCA this is the best and peaceful way to approach bitcoin investment most especially if you are investing and holding for the long term period, adopting a complex approach can put an investors into condition that could affect their investment in the long run.

You don't need to do all that you have listed before starting your investment via the DCA method because most of these items may not readily be available when you start, you only get to fix them when you are already invested. For instance, how can you set up emergency funds for an investment you have not even started? What will you be protecting with such emergency fund? The right thing is to get started and while at it, you begin to plan on how to protect the investment which is what you need the emergency funds for. As long as you are able to get discretionary income, you can get started right away even if it means starting very small and growing with time.

An emergency fund is not only for protecting Bitcoin, but also for those who are not yet aware of Bitcoin, an emergency fund may be needed to protect their lives and cash flow. If someone does not have an emergency fund before starting Bitcoin, there is no problem. Rather, he can feel free to start and perhaps he should think about an emergency fund after starting. Then there may be people who already have an emergency fund. So you cannot completely ignore the importance of an emergency fund. Don't you understand that even a person who does not know about Bitcoin can have an emergency need? For example, losing a job, medical treatment, rent, family emergency, these can suddenly come into someone's life before buying Bitcoin. Then if he does not have an emergency fund, he may take a loan, skip necessary expenses or sell the newly purchased Bitcoin at a loss.

 The point is that an emergency fund doesn't have to be so compelling that it seems like you have to build one before you start investing. It can also be dangerous to completely ignore the importance of an emergency fund. You can invest a portion of your discretionary income (a large portion or as much as you can afford). At the same time, you can set aside a portion for an emergency fund. This way, you can continue to save regularly and have an emergency fund built up before you know it.