Since Bitcoin is a highly volatile asset, we should buy it with money that we will not need in the short term. Otherwise, there is a risk of panic selling when the market falls. Which can defeat the long-term strategy.
You seem to be a bit at a loss in regards to your ideas about how much money (or from where the money comes) can be put into bitcoin, AuchanX.
If you are an actual investor rather than a trader, and if you are actually trying to not be emotionally affected by BTC price moves, then you should be investing with money that you can afford to lose.
- which means, you don't need the money in the short term, medium term or even long term.
You are willing to give up on the money as if you were consuming the money, but at the same time, when you put the chosen amount into bitcoin, you do not get the benefits of consumption.
Sure, of course, no one invests in bitcoin with an expectation of losing money, yet instead we invest in bitcoin with an expectation that the future value of our investment will be worth more than the present value of spending (or saving) the money.
There are no guarantees with bitcoin, yet we should be putting money into bitcoin with an expectation that we could lose up to 100% of what we put in, yet we could get a reward that goes much beyond what we put into bitcoin and even higher than 100% - which is part of the reason that bitcoin is sometimes labelled as an asymmetric bet to the upside.
It's not always as easy as we say, not everyone has a stable income that makes DCA method easy, so it becomes a bit inconsistent and over time the zeal and passion for investment dies off. We can all agree DCA method is the best method for long term investment but we cannot totally rule out the aspect of consistency in investments.
I cannot agree with this viewpoint because it assumes that because income is not stable, it automatically makes disciplined accumulation impossible. This is exactly why discretionary income is a relevant concept.
A DCA strategy is not about putting in the same amount every single week or month, it is about the ability to cover all the essential expenses, and then invest the money that is left over. So understand this, even if your income is not regular, as long as there is a discretionary income at any point, consistency is still possible, and that's the beauty of having discretionary income. Consistency does not really mean inflexibility, so can adjust according to your financial capacity.
If your passion dies out because of how your money comes in, then the problem is not the DCA method,
it is about not having a good strategy in place or having too high expectations. Bitcoin accumulation was never designed to be aggressive; so you can just accumulate gradually and sustainably. This is why only investing discretionary income is such a good practice.
For sure you are correct Itz-prisigold in regards to our abilities to choose to invest into bitcoin in a modest and/or conservative way and at the same time, having the possibllity to potentially profit stupendously from our bitcoin investment, even though we ended up investing relatively modestly.
You are also correct that expectations need to be managed in order that guys do not end up adding to (and potentially even causing) their own disappointment based on their expecting too much from the performance of their bitcoin investment.
