Discretionary income is used for purchasing Bitcoin and accumulate aggressively.

[POPOLUV]

There is this two friends that was arguing in the car i was this morning, the argument was between a friend who is an investor and his other friend that mainly focus in any kind of trading being Bitcoin or all the rest of the coins, so the friend that depends on trading since to have knowledge on Bitcoin more than the one who is an investors through what i saw with their conversation, so the friend that trade ask a question which i see so simple to answer but i kept quiet because i was not among the argument, so i make it dim to bring it here and share, for my fellow investors to also put mouth on the argument, so the friend that trade he went ahead and said this fact, because of the points his friend who is an  investor gave him, so he decided to ask him, so as an investor you said you are,  investing in Bitcoin we use discretionary income right? and which means you have might pay all your bills before using your discretionary income and still you prefer DCA strategy in purchasing Bitcoin because DCA strategy allows you to buy gradually by gradually, then what of if you want to make use of other strategy to purchase Bitcoin, and strategy like Lump sum strategy, will still use your discretionary income to buy Bitcoin?, and with Lump sum strategy you are not allowed to be buying Bitcoin gradually by gradually but in bulk. He now ask again, will still use your discretionary income in buying Bitcoin and accumulating in bulk using Lump sum strategy?

I just want our beginning to benefit on this mostly, if not there will be any need of creating such thread here, so let us do well and contribute accordingly as you understand it.

[Exitoral]

Both are not bad actually. But the main thing is timing. Timing matters a lot.  Either one you use is very ok. But one must be mindful at the period he or she is buying. But me personally, I prefer lump sum strategy. It's still accumulation,but buying consistently regardless of price is actually the whole point of DCA. It removes the pressure of timing the market. It is ok if the timing is right. But with the way naira devaluation is happening with speed, one wouldn't care about which is ok. DCA will be a perfect choice.

[CryptoHeadlineNews]

then what of if you want to make use of other strategy to purchase Bitcoin, and strategy like Lump sum strategy, will still use your discretionary income to buy Bitcoin?, and with Lump sum strategy you are not allowed to be buying Bitcoin gradually by gradually but in bulk. He now ask again, will still use your discretionary income in buying Bitcoin and accumulating in bulk using Lump sum strategy?

I just want our beginning to benefit on this mostly, if not there will be any need of creating such thread here, so let us do well and contribute accordingly as you understand it.

When people talk about discretionary income, it simply refers to an amount left behind after you might have paid for your compulsory and necessary bills that is meant for further use. And this discretionary income varies with respect to your financial capabilities. Because to some people #100million Naira can be their discretionary income, likewise to others #50,000 Naira can be their discretionary income. And for the fact that someone who has $100million Naira that he or she is not in immediate need of it buys Bitcoin of around #70million Naira, that does not mean that you whose overall money in your bank account is not up to #100k should also rush or kill yourself to want to invest millions too in Bitcoin. So in a nutshell, whether you use a dollar cost averaging method or you buy via using lump sum method, as long as the amount used in buying Bitcoin at that moment is not an amount you are in immediate need of, it can always be classified as a "Discretionary income".

[coinlary]

DCA itself isn’t really restricted to people who can’t invest a lump sum. It’s a choice, and you can decide to buy daily/weekly/ monthly/ yearly even when you have enough money to buy everything at once.

It doesn’t end there either.
You can even use  lump sum as part of a DCA strategy,  I know that sounds somehow, but hear me out:
If I have $1M for investment and I can still produce another $1M next year or even more, I can either buy all at once or split the $1M into monthly purchases, which is basically DCA.
At the same time, buying the entire $1M at once doesn’t mean I can’t invest another $1M the following year and the year after that, which is still another form DCA .

Can you really compare what you DCA with what Michael Saylor DCA’s? To you, that amount may look like a lump sum, which it actually is, but his own is reoccuring .

[Mate2237]

The two strategy are good from what I can say about DCA and lump sum strategies,  but it depends on the individual and the availability of money from using them. While the lump sum strategy employed focusing on using a large amount of money in going into the market, so as to beat time the DCA method is more concerned about purchasing your Bitcoin small but steadily over time. For someone who is financially stable there is no need using discretionary funds to be buying small small over time.



The both can be used to purchasing aggressively over time. So this your question is all about availability of cash which will influence the decision of the individual when it comes to investments in Bitcoin.

[IgboBTC]

There is this two friends that was arguing in the car i was this morning, the argument was between a friend who is an investor and his other friend that mainly focus in any kind of trading being Bitcoin or all the rest of the coins, so the friend that depends on trading since to have knowledge on Bitcoin more than the one who is an investors through what i saw with their conversation, so the friend that trade ask a question which i see so simple to answer but i kept quiet because i was not among the argument, so i make it dim to bring it here and share, for my fellow investors to also put mouth on the argument, so the friend that trade he went ahead and said this fact, because of the points his friend who is an  investor gave him, so he decided to ask him, so as an investor you said you are,  investing in Bitcoin we use discretionary income right? and which means you have might pay all your bills before using your discretionary income and still you prefer DCA strategy in purchasing Bitcoin because DCA strategy allows you to buy gradually by gradually, then what of if you want to make use of other strategy to purchase Bitcoin, and strategy like Lump sum strategy, will still use your discretionary income to buy Bitcoin?, and with Lump sum strategy you are not allowed to be buying Bitcoin gradually by gradually but in bulk. He now ask again, will still use your discretionary income in buying Bitcoin and accumulating in bulk using Lump sum strategy?

I just want our beginning to benefit on this mostly, if not there will be any need of creating such thread here, so let us do well and contribute accordingly as you understand it.

I think DCA and Lump Sum the idea of these two strategies is the same using extra money.

The important rule of investing is that you should never put your essential money like bills or emergency funds into crypto. Lump sum investing does not mean you buy a lot of Bitcoin at once by borrowing or paying off a lot. Rather it means if you have a lot of money saved up you can invest it all at once when the market is right instead of buying it slowly.

When the market is really low the lump sum strategy works well.. For people, with a regular job or a fixed monthly income DCA is best because it handles ups and downs in the market.

The main thing is, no matter what strategy you use the investment money must be your income so even if you lose money it does not affect your daily life.

[EluguHcman]

OP you got me confused to an extent, did you mean Lump sum strategy where the investors buys their Bitcoin just once and for all or keep up buying aggressively with the Lump sum?

Think about it because buying Bitcoin with discretionary does not literally mean you must buy with small amount. Perhaps if your income is high and you have multiple sources of incomes that you will have a lot of remainder after attending to your immediate needs and could still have enough for your emergency needs of course you can still purchase your Bitcoin with the Lump sum.

The best tip of investing in Bitcoin is to invest amounts that does not affect your short term needs nor troubles your emotions over short term market performances while DCAing is recommendable when you sights good entry buying opportunities.

[ruykeri]

DCA is a much better method than Lump sum, because there is relatively less mental pressure. But if the question is whether discretionary income should be used in case of Lump sum, then in my opinion, buying Bitcoin in Lump sum method can create more mental and financial pressure, because there is a large amount to buy Bitcoin at once. In that case, having a discretionary fund is even more important. And discretionary income does not just mean weekly or monthly expenses  leftover money. Any bonus, contract payment, asset sale or extra business profit can also be discretionary funds, which can be invested in Lump sum method. As a result, the pressure will also be reduced. So, no matter how a person invests according to his convenience, there is no problem there. However, investing with discretionary funds is the most important.

[Mhizlove]

The two strategy are good from what I can say about DCA and lump sum strategies,  but it depends on the individual and the availability of money from using them. While the lump sum strategy employed focusing on using a large amount of money in going into the market, so as to beat time the DCA method is more concerned about purchasing your Bitcoin small but steadily over time. For someone who is financially stable there is no need using discretionary funds to be buying small small over time.



The both can be used to purchasing aggressively over time. So this your question is all about availability of cash which will influence the decision of the individual when it comes to investments in Bitcoin.

Wetin you talk make sense, say the two strategy fit work but it's cash flow and the person's comfort level that will decide which one is good enough or which one make sense pass. Because even though the person has money, some people go still prefer DCA to reduce the timing risk. On the other hand lump sum is good when the price looks appealing but e go still require strong mind and confidence. So it's not only about availability of cash but how risk and emotions can be managed.

[Shadiq]

For some people, just one week or one month of monthly or weekly DCA may be equal to the purchase amount of the Lump sum strategy. For example, for someone who owns a lot of money and has a lot of discretionary money, it may be normal to use $1 million for DCA, as some investment institutions do. This $1 million may be more than the amount of money allocated for the Lump sum strategy for some people. Basically, financial capacity is important in determining prudent money, DCA does not mean a small amount.

No matter what strategy you use for investment, the invested money must be prudent money. DCA has nothing to do with prudent money. Rather, it has to do with investment, and that investment can be in any strategy.

[Fiatless]

I just want our beginning to benefit on this mostly, if not there will be any need of creating such thread here, so let us do well and contribute accordingly as you understand it.

Whether you are using DCA or Lump Sum, it should be your discretionary income. You might have problems if you use all your income to buy Bitcoin without setting aside funds for your basic needs. Those who adopt the lump sum strategy successfully always have settled their bills and also have emergency funds.

Baba your post make sense but to read and understand am hard. The reason bi say you no use punctuations like full stops, and you no also use paragraphs.

[Sim_card]

Your discretionary income is the money you don't need for any important needs which means that you can spend it on whatever, you feel is cool with you. Therefore, you are to use your discretionary income to invest in bitcoin through any strategy that you want to use to accumulate bitcoin either through DCA, buying at the dip or lump sum. It's all your choice to make.

[Tmoonz]

There is this two friends that was arguing in the car i was this morning, the argument was between a friend who is an investor and his other friend that mainly focus in any kind of trading being Bitcoin or all the rest of the coins, so the friend that depends on trading since to have knowledge on Bitcoin more than the one who is an investors through what i saw with their conversation, so the friend that trade ask a question which i see so simple to answer but i kept quiet because i was not among the argument, so i make it dim to bring it here and share, for my fellow investors to also put mouth on the argument, so the friend that trade he went ahead and said this fact, because of the points his friend who is an  investor gave him, so he decided to ask him, so as an investor you said you are,  investing in Bitcoin we use discretionary income right? and which means you have might pay all your bills before using your discretionary income and still you prefer DCA strategy in purchasing Bitcoin because DCA strategy allows you to buy gradually by gradually, then what of if you want to make use of other strategy to purchase Bitcoin, and strategy like Lump sum strategy, will still use your discretionary income to buy Bitcoin?, and with Lump sum strategy you are not allowed to be buying Bitcoin gradually by gradually but in bulk. He now ask again, will still use your discretionary income in buying Bitcoin and accumulating in bulk using Lump sum strategy?

I just want our beginning to benefit on this mostly, if not there will be any need of creating such thread here, so let us do well and contribute accordingly as you understand it.

In whichever strategy anyone is using at any point in time be it lump sum or DCA or buying the dip the money must come from your discretionary income, another thing to also know is that you can make use of the various or varieties strategies and in the right way, you can lump sum if lump sum amount is available to you and still DCA gradually as little as you can, the most important thing is that you are buying Bitcoin to increase the size of your Bitcoin while holding for the long term and any money being used must come from your discretionary income.

[Stalker22]

~
I just want our beginning to benefit on this mostly, if not there will be any need of creating such thread here, so let us do well and contribute accordingly as you understand it.

Okay, so what exactly is confusing you?  Because that was quite a roundabout approach to asking an otherwise simple personal finance question.

Well, yes, of course.  Regardless of whether you use a DCA method or go the Lump Sum route, you should never use anything except your discretionary funds to buy Bitcoin.  It does not matter which button you press when making your purchases.  The discretionary income is just the remaining funds after you pay all your necessities.

The difference lies in the timing.  So if you decide to opt for the Lump Sum method, you need to gather a large amount of your discretionary income together and buy all the Bitcoin in one go.

[Livingleged]

By my understanding the argument is will someone also use discretionary income to accumulate bitcoin also even if he uses another strategy aside from DCA right?
First of all we need to define discretionary income and relates it to the two different scenarios. The simplest way to explain discretionary income is just that money that is left do you after you’ve paid you daily, weekly or monthly, bill and attended to necessary bills also respectively depending on how your income comes!
Now relating it to strategies;
-If you’re adopting DCA simply means you decide to be buying small small from the money left either daily, weekly or monthly.
- the lump sum also can use discretionary income if your discretionary income is that high to purchase bulk coin it all depends on on what your total income is
My thoughts is whether DCA or lump sum, bitcoin should be acquired with discretionary income.

[Hardyrobust]

There is this two friends that was arguing in the car i was this morning, the argument was between a friend who is an investor and his other friend that mainly focus in any kind of trading being Bitcoin or all the rest of the coins, so the friend that depends on trading since to have knowledge on Bitcoin more than the one who is an investors through what i saw with their conversation, so the friend that trade ask a question which i see so simple to answer but i kept quiet because i was not among the argument, so i make it dim to bring it here and share, for my fellow investors to also put mouth on the argument, so the friend that trade he went ahead and said this fact, because of the points his friend who is an  investor gave him, so he decided to ask him, so as an investor you said you are,  investing in Bitcoin we use discretionary income right? and which means you have might pay all your bills before using your discretionary income and still you prefer DCA strategy in purchasing Bitcoin because DCA strategy allows you to buy gradually by gradually, then what of if you want to make use of other strategy to purchase Bitcoin, and strategy like Lump sum strategy, will still use your discretionary income to buy Bitcoin?, and with Lump sum strategy you are not allowed to be buying Bitcoin gradually by gradually but in bulk. He now ask again, will still use your discretionary income in buying Bitcoin and accumulating in bulk using Lump sum strategy?

I just want our beginning to benefit on this mostly, if not there will be any need of creating such thread here, so let us do well and contribute accordingly as you understand it.

In whichever strategy anyone is using at any point in time be it lump sum or DCA or buying the dip the money must come from your discretionary income, another thing to also know is that you can make use of the various or varieties strategies and in the right way, you can lump sum if lump sum amount is available to you and still DCA gradually as little as you can, the most important thing is that you are buying Bitcoin to increase the size of your Bitcoin while holding for the long term and any money being used must come from your discretionary income.

An investor is not limited to anyone of the strategy. An investor that is using DCA strategy in accumulating bitcoin can likely used the other strategies together while accumulating bitcoin.
Yes the most important thing is that the income invested in bitcoin must be our discretionary income because we are not planning to sell or aiming for quick profit which means the money will be locked away for years.