Buy Buy Buy or Sell Sell Sell?

[BD User]

There are many people who decide to buy Bitcoin with emergency funds in this way, there are many mistakes in their thinking, they decide to buy Bitcoin with emergency funds, but they do not even think that an emergency situation can arise at any time, when they need this fund. Buying Bitcoin at the dip price is definitely good and profitable, but for that, we should never remove the safety fund for this. Because as much as you are thinking of buying Bitcoin at the dip price with emergency funds in the hope of making a profit, when faced with a real situation, you will likely lose more than that. Therefore, you should never buy Bitcoin with more money than you can afford, especially buying Bitcoin with a specific fund is never reasonable. Keeping the DCA consistent, if you want to buy Bitcoin at the dip price, then create a separate budget for it as a reserve fund, this is the right decision.

Only a greedy person can take such a step. Being aggressive in investing does not mean that you have to be aggressive in investing in any way. I agree with you that those who do such things are taking a big wrong step and are misusing the emergency fund. He may not know how harmful the consequences of this mistake can be. Emergency fund should not be used in any way except in an emergency and should always be preserved. Being aggressive in investing is not so important that you have to be aggressive in investing by using the necessary funds beyond your means. If you are consistent in investing then you will get the opportunity to buy dips later and if you continue to do DCA you will definitely be able to buy dips. But if you want to be aggressive in investing then you should create a fund.

[Doan9269]

To make more emphasis on your respective points and inputs here, i will suggest that if we are investing using an emergency fund, then that fund does not necessarily have to be in fiat, we can as well develop a means of creating a non custodial wallet and have our emergency funds kept on such, because the use of banks could be challenging to an extent that when they placed an embargo on an account, it may not be able to perform any transaction until they are done or settled with why they are doing so.

I believe that JJG have already addressed this issue of keeping your emergency funds in bitcoin. If you keep your emergency funds in bitcoin, for instance your three months salary is $1500 that you have used to set up your emergency funds. What if a real emergency occurs and bitcoin price has dipped with 30%, you will be at loss. This is one of the big disadvantages of keeping your emergency funds in bitcoin.

Secondly, since you said that your emergency funds should be in bitcoin kept in your noncustodial wallet. What if when you are hit with a real emergency and transaction fee is very high due to congestion in the blockchain. Fiat is the best form to keep your bitcoin investment, if you are complaining about your bank, you can keep the fiat in cash in your safe at home. It's good that when we are investing in bitcoin we save ourselves every possible means of running at loss during our accumulation journey

We can also consider that investing with an emergency fund may come in a quick demand in seizing for an opportunity to invest, just as we do have it form market shocks when it plummet after reacting on a particular cause and we feels its best appropriate that we fall back on our emergency fund in other to take advantage of the opportunity and invest, which i think its another way we can maximize our profit proficiency using another strategy (emergency fund) other than DCA we are used to.

You are a gambler because only gamblers think about profits without considering the risk in their actions.
When you use your back up funds to your bitcoin investment to buy bitcoin, your investment is prone to losses, because a real emergency can occur anytime. In fact, it's a dumb idea that will lead you into losing your bitcoin investment if care is not taken and not a smart move to dive into opportunity to increase your bitcoin investment.

DCA is the most effective and efficient way to accumulate bitcoin for a long-term and whoever uses this strategy wouldn't find it difficult to keep his bitcoin portfolio increasing gradually overtime

We also often make some mistakes, whereby we easily forget on what had been thought, or maybe we don't even remember to know what is expected of us to act at a particular time, it happens in some situations and this kind is what investors fall under to make the same mistake they would have avoided, because we can't be too confident in taking a step without first going after to recheck on whether it is still effective or relevant before taking it, we can't also invest by assumption, instead we have to be more conscious of what we acted when we are buying or selling as we may find it applicable on us.

From my discussion, I also mentioned how important the use of a particular strategy is, but we must be able to apply the conditions involved right with the nature of the market before investing upon any strategy of our choice, don't borrow because you want to DCA, don't divert on fund or sell on other assets hastily to invest and lastly, we shouldn't have our emergency fund on altcoins or any other assets that may not be productive as we may have with Bitcoin.

[Sticky Bomb]

It is the reason why emergency funds are very important in Bitcoin investment. As Bitcoin investors, we need to have emergency funds in case an emergency arises in the future. This ensures that the investor will not be forced to sell their Bitcoin to solve the problem.One of the main reasons why some people fail to hold their Bitcoin for the long term and end up selling it at a loss is because they do not have emergency funds. If a problem arises and they have no other option, they will definitely sell their Bitcoin to solve the issue. At that period, the price of Bitcoin may be low.This has happened to me before. When I started my Bitcoin investment, I did not have emergency funds set aside. When a problem arose, I had no other option but to sell some portion of my Bitcoin at a loss. It really hurt me.

But in bitcoin investment is very compulsory, because the profit does not come within a short term rather it takes some couple of years before one can actually get profited.

Profits can come in within a short time, there were people who invested before Trump won and bitcoin surged to 109k, they were in profits and still are, I also bought bitcoin at $74k, I'm in profits as at now too and both scenarios aren't even up to a year old. Profits can come anytime, but as real investors, our goal is not taking short-term profits, else we exhibit trading tendencies, but we are focused on accumulation target, consistency in purchases and a long-term holding period. We are more interested in reaching our accumulation target and if possible a status of over accumulation within our holding period before we can start withdrawing profits in ways that are sustainable at the expiration of our holding period.

Long-term investment plan allows for more profitability and you would surely experience the compounding effect of bitcoin price appreciation on your investment. Consistency and commitment to your accumulation would also see you have much more stashes of bitcoin on the long-run compared to a short-term investor and means more profits for you since the bigger the size of your portfolio, the bigger your profits margin.

[DubemIfedigbo001]

[edited out]

You should never buy BTC with emergency funds. Many people see the market fall and aggressively use the emergency funds they have at that time, which is completely wrong. Emergency funds are created to deal with unexpected financial disasters. If you invest with your emergency fund at that time, if an unexpected financial disaster comes, then you have no choice but to sell your holdings. In some cases, you can invest with emergency funds.

For example, you have the money to buy aggressively, but you may not be able to invest with it due to some problems. For example, you are not able to transact due to some problems or errors in the bank where you have deposited the money. You know that after some time or within 2 or 3 days, your bank account will be fixed or you will be able to transact again. But you have to be confirmed that you will get the money after some time. In that case, you can invest for some time with emergency funds.

You are correct with your example, that you might have some funds that are more liquid and other funds that are less liquid, and perhaps your emergency funds are the most liquid, but some funds might take a week, a month or maybe even longer to receive them into your accounts, and so in those cases, you might use your emergency funds or anything that might be liquid qhile you are processing other funds that you might consider reserve funds rather than emergency funds, and so if you are using emergency funds for non-emergencies then you likely would be replacing those funds as soon as you receive your other reserve funds and surely there might be various classification of funds that you have, and you presume them to be more liquid than they are so when you go to withdraw from them, you find out that you have a few obstacles , and you hopefully have other funds that are more clearly going to be accessible without obstacles.

I would not support anyone using their emergency funds for non-emergency purposes. I clearly understand your pattern of slight flexibility with respect to maintaining consistency in your purchases bearing in mind that those funds are present and in processing, but we know that these processes aren't totally simultaneous with our timing. Now let's consider a scenario that the investor has already invested a large part of emergency funds into his portfolio and there was an emergency within that time and the funds in processing remained stuck for a while, you'll agree with me that his portfolio is at risk of being tampered.

I would rather suggest a different path, that he waits and keeps track the amounts he should've invested into bitcoin and as soon as those funds are processed, the investor should be disciplined enough to compensate for the week(s) he missed out on with his accumulation amount. Also it is always very good to keep these funds for investing in stable coins as soon as they are available rather than banks, so that purchasing bitcoin can be easier.

[Emjay24]

For example, you have the money to buy aggressively, but you may not be able to invest with it due to some problems. For example, you are not able to transact due to some problems or errors in the bank where you have deposited the money. You know that after some time or within 2 or 3 days, your bank account will be fixed or you will be able to transact again. But you have to be confirmed that you will get the money after some time. In that case, you can invest for some time with emergency funds.

I would never support buying aggressively because the wise and rich investors don't engage in that due to a lot of mistakes that can be seen buying too much at a short period of time. It is good when we distance our investment strategy and buy at an interval. This is the same DCA strategy that Micro Strategy is using to accumulate thousands of Bitcoin without getting choked up at a certain price. There are so many profits to be made when buying at different intervals, giving a breathing space to buy at different prices.

How did you make up your assertion buddy? Buying aggressively doesn't necessarily mean buying too much. It is the percentage of your discretionary income you commit to buying bitcoin that determines your level of aggressiveness. The real problem stems from being over-aggressive and that is buying more than you can sustain, thereby placing you at a disadvantage. Your level of aggressiveness without overdoing it is a measure of your commitment to your accumulation journey.

For example, Investor A and Investor B both has $200 as discretionary income weekly, Investor A commits 60% of his income($120) to buying bitcoin while investor B only puts in 20%($40) into bitcoin. We can see very well that investor A is more aggressive and serious in his accumulation journey since he commits more part of his discretionary income into accumulating bitcoin while investor B can be described as being whimpy in his purchases. Investor A would definitely have a larger portfolio size and reach his accumulation target much faster than investor B.

[Btcdeybodi]

But what if I decide to use my emergency fund to invest in Bitcoin ?what if the market is favorable and I decide to use my emergency fund to get more? Just as u said, it stresses  the need to buy and continue to buy and hold for long .

Don’t do this. You should only invest what you can afford to lose while the funds you are planning to use was intended for emergency purposes which you will not know when you will need it.

You will be obligated to sell your Bitcoin if you choose to use fund that was allocated on other important things.

Bitcoin will always available to buy so just DCA using money that has no allocation. Reduce your expenses and use the save money on Bitcoin purchases.

There are many people who decide to buy Bitcoin with emergency funds in this way, there are many mistakes in their thinking, they decide to buy Bitcoin with emergency funds, but they do not even think that an emergency situation can arise at any time, when they need this fund. Buying Bitcoin at the dip price is definitely good and profitable, but for that, we should never remove the safety fund for this. Because as much as you are thinking of buying Bitcoin at the dip price with emergency funds in the hope of making a profit, when faced with a real situation, you will likely lose more than that. Therefore, you should never buy Bitcoin with more money than you can afford, especially buying Bitcoin with a specific fund is never reasonable. Keeping the DCA consistent, if you want to buy Bitcoin at the dip price, then create a separate budget for it as a reserve fund, this is the right decision.

Emergency funds should not be used for investment, it is an amount kept for unforeseen events that will require urgent funds, if an investor wants to buy bitcoin when the price DIPs then he needs to keep reserve funds. Using emergency funds to buy bitcoin at DIPs is a very big mistake because they will end up selling their bitcoins if any emergency needs arises in the future. Instead of using emergency funds to buy bitcoin at DIP prices, it is better to just stick to your usual DCA and forget about buying the DIP. However, sometimes along your DCA, you can still meet a DIP price and buy with your DCA amount instead of using your emergency funds to buy DIPs.

[Pi-network314159]

Hello guys, I’m new to the thread and I want to understand more about buy buy or sell sell , I want to know more about buying and accumulating Bitcoin, I will be glad if you guys can help and reply or give answers to my questions
Thank you .

Snip

Okay thank you so much for your encouragement and knowledge , with these as a beginner I will focus more on buy buy buy rather than the selling part to enable me invest more rather than selling and be at lost.

But what if I decide to use my emergency fund to invest in Bitcoin ?what if the market is favorable and I decide to use my emergency fund to get more? Just as u said, it stresses  the need to buy and continue to buy and hold for long .

I think you have some question yet to answere but have not yet. I went through your post and I discovered that after you made your first Post on this thread, JJG asked you some questions but still you are yet to reply him. May I remind you that a fast learner is a fast listener and quick to show good example. Because it will be ideal we first know your intention before help can be rendered to you. I will like you to answer this few questions given to you by JJG. below are the questions.

Hello guys, I’m new to the thread and I want to understand more about buy buy or sell sell , I want to know more about buying and accumulating Bitcoin, I will be glad if you guys can help and reply or give answers to my questions
Thank you .

You should provide some information about yourself and your goals and perhaps you can provide that information without getting into too many specifics.. perhaps talk in terms of hypotheticals or maybe percentages.

Have you bought any bitcoin?

Do you have other investments?  how about debts and expenses?  

Do you have a steady income?  Are you expecting your income to change?  Do you know your discretionary income?  is it steady or does it vary?

Do you have emergency funds? or other kinds of back up funds?

What are your thoughts about bitcoin as compared with other places where you might invest?

What is your investment timeline?

[Stable090]

There are many people who decide to buy Bitcoin with emergency funds in this way, there are many mistakes in their thinking, they decide to buy Bitcoin with emergency funds, but they do not even think that an emergency situation can arise at any time, when they need this fund. Buying Bitcoin at the dip price is definitely good and profitable, but for that, we should never remove the safety fund for this.

If you are using your emergency funds to invest in bitcoin, then you are not planning to hold the bitcoin for long term, you will end up selling the bitcoin bitcoin which you bought when you are in need of money just to solve the problem which you are having at that particular time. The best thing is that when you are planning to invest in bitcoin, then make sure you do it with the spare amount of money which you are having. just make sure you are always having extra money that you won’t be investing in bitcoin, incase if their is problem, you won’t even think about selling your bitcoin.

I know everyone wants to invest in bitcoin, and it’s really a nice idea, but we should just tell each other the reality, their are some things which we are not suppose to do, don’t sell your properties just because you want to invest, don’t invest all your money, if you are having planning to take loan, then make sure you are having other means to pay back the loan.

[JayJuanGee]

For example, you have the money to buy aggressively, but you may not be able to invest with it due to some problems. For example, you are not able to transact due to some problems or errors in the bank where you have deposited the money. You know that after some time or within 2 or 3 days, your bank account will be fixed or you will be able to transact again. But you have to be confirmed that you will get the money after some time. In that case, you can invest for some time with emergency funds.

I would never support buying aggressively because the wise and rich investors don't engage in that due to a lot of mistakes that can be seen buying too much at a short period of time. It is good when we distance our investment strategy and buy at an interval. This is the same DCA strategy that Micro Strategy is using to accumulate thousands of Bitcoin without getting choked up at a certain price. There are so many profits to be made when buying at different intervals, giving a breathing space to buy at different prices.

I would suggest that MSTR/Saylor is buying aggressively and perhaps overaggressively, yet they have their own ways of handling their debt to asset ratios.

MSTR is not a good example in terms of what individuals should do or how individuals should measure their aggressiveness.

I think that it is good to be aggressive as we are able to be, but that does not mean overdoing it.. .and it also means that any such person attempting to be aggressive is likely going to be buying regularly, persistently, consistently and ongoingly, and hopefully not employing his aggressiveness until after he has his cashflow management in place and perhaps the establishment of both emergency funds and also reserve funds... .. but yeah, each person has to figure out how to buy bitcoin as aggressively as he is able to do without overdoing it.. and surely, if one is not sure about if he is being overly aggressive, then maybe he has to pull back a bit, since it is not good to overdo it, and we might not even know that we are overdoing it until it is too late.. ..

[edited out]

This is a commendable fund management plan. Having several funds in place with different liquidity levels is a great idea. The emergency funds should be more ready, available and accessible than every other backup funds, while the reserve funds can be a little more less liquid ( but still accessible) than the emergency funds.
It is also very essential to understand the liquidity of each of these backup funds, as this helps one to be able to effectively navigate certain challenges and also make good progress towards achieving your financial goals without feeling overwhelmed. Some of the backup funds could kept for very special purposes, just like major purchases or even for long term investments. When you know and realize the potential withdrawal obstacles of these funds, it helps you plan effectively and also to avoid falling under certain financial stress.

A balanced approach when it comes to funds management involves effectively allocating resources. This could be achieved by maintaining an emergency fund that’s easily accessible, having a very clear plans for your reserve fund and also allocating to longer term investments.

Each of us likely have different kinds of ways of storing our money and some of the money can be moved around for one purpose or another, and still we can make sure that we do not go below certain amounts of money that is in reserved without an actual emergency, so even if some kinds of funds are more liquid and other funds are less liquid, they might in combination serve as the various kinds of back up funds that cover both reserve funds and emergency funds, yet the emergency funds should never go below 3 months of reserves absent an actual emergency or maybe you made some kind of a mistake that is also able to be fixed within a short period of time if the emergency funds ends up being tapped into inadvertently, .. and then at the same time, hopefully learning from any mistakes that we might have made in managing the funds and/or how rapidly we might be able to replace the emergency funds if they were ONLY partially tapped into.

[edited out]

Okay thank you so much for your encouragement and knowledge , with these as a beginner I will focus more on buy buy buy rather than the selling part to enable me invest more rather than selling and be at lost.

But what if I decide to use my emergency fund to invest in Bitcoin ?what if the market is favorable and I decide to use my emergency fund to get more? Just as u said, it stresses  the need to buy and continue to buy and hold for long .
[/quote]

You can do whatever you like, but you are gambling rather than investing when you are tapping into emergency funds to buy bitcoin, especially since buying bitcoin is not an emergency, and surely many of us said that if you are already new to bitcoin then probably you should be buying regularly and working on systems to manage your cash rather than trying to figure out what is or what is not a dip.  But yeah, you can do what you like, even dumb shit.. .and find out how it goes when you spend all your money buying bitcoin on the dip and it keeps dipping or you are faced with some actual emergency, then you won't look as smart as you thought that you were since you seem to not be able to know the difference between investing and gambling.

[edited out]

The category poor people with good income is the worst because they are wasting an amazing life opportunity. You can waste a fraction of it and learn from it and I think that is what most people are going through, making mistakes in the right moments is sometimes the best that can happen to you. But I know that in bitcoin many people wasted a once in a lifetime chance for the many in a lifetime things, just because they didn't have them before or are part of the poor people with good income group.

Sure, there are some poor people with good income who will be able to learn and to use their good income to invest rather than consume, yet the ones that learn and get themselves out of poverty are not necessarily the normal outcome, since surely it could be possible that poverty teaches a poor person with income to figure out ways to get out of such situation, yet surely poor people can get lured into getting nice things and to not spend enough time learning stronger forms of cashflow management and including finding a good investment, such as bitcoin.

In various threads on the form, members have frequently discussed at various points that both poor people and rich people can develop good or bad cashflow management skills and practices.  They are not difficult to learn or to employ, even though many folks will not try employ good practices which also help them in learning how to get better in their cashflow management practice with their experiences.   

Many of us likely realize also that there are even cases in which poor people are able to surpass rich people in their level of wealth and/or their level of success or at least directionally poor people might sometimes be gaining in their wealth while rich people are losing in their level of wealth based upon their cashflow management practices, their investments and/or their efforts to learn from their experiences.

[edited out]

To make more emphasis on your respective points and inputs here, i will suggest that if we are investing using an emergency fund, then that fund does not necessarily have to be in fiat, we can as well develop a means of creating a non custodial wallet and have our emergency funds kept on such, because the use of banks could be challenging to an extent that when they placed an embargo on an account, it may not be able to perform any transaction until they are done or settled with why they are doing so.

Fair enough that we might keep various kinds of funds in various ways, yet we also have to keep in mind about how liquid various  kind of funds might be, and sure there are some funds that may well be less reliable than others, and whether we need funds right away, or we can wait a few days or if we might be able to wait a month, it can be different, and surely we may well have to keep a certain amounts of funds in actual cash that might help to hold over if we might be waiting for funds to clear or to arrive in our account or to be accessible.

Poor people run more risks than rich people when it comes to maintaining emergency funds since rich people likely have more access to a variety of resources, so it might be more difficult for them to screw things up... and the same thing is true with new investors versus older investors who have been investing for a while.  New investors need to put various systems in place and to maintain them and also to practice with them to make sure that they understand how long it might take to get access to certain kind of funds, especially if they don't have much of their funds in physical cash..

We can also consider that investing with an emergency fund may come in a quick demand in seizing for an opportunity to invest, just as we do have it form market shocks when it plummet after reacting on a particular cause and we feels its best appropriate that we fall back on our emergency fund in other to take advantage of the opportunity and invest, which i think its another way we can maximize our profit proficiency using another strategy (emergency fund) other than DCA we are used to.

If we have various kinds of funds, even if we might call some of them emergency funds and other reserve funds and other float funds, it may well not matter so much from which one we are drawing from when we decide to buy on the dip, except it would be gambling rather than investing if we are overly depleting our back up funds in order to buy bitcoin, since buying bitcoin is not an emergency.  There surely would be judgement calls in regards to how much funds might be taken from one or another sources and if those are the last of sources or if there might be some other sources that are available, but they just take a week or two to process, so in the mean time we end up using some funds that are available within a day or two and then wait for the other funds to arrive to replace the ones that we used.

Hopefully you sufficiently know the difference between investing and gambling, yet surely some guys mix up the ideas and also the practices in which they might say that they are investing but they end employing gambling practices with the way they handle some of their funds.

[Gost ms]

Hello guys, I’m new to the thread and I want to understand more about buy buy or sell sell , I want to know more about buying and accumulating Bitcoin, I will be glad if you guys can help and reply or give answers to my questions
Thank you .

Snip

Okay thank you so much for your encouragement and knowledge , with these as a beginner I will focus more on buy buy buy rather than the selling part to enable me invest more rather than selling and be at lost.

But what if I decide to use my emergency fund to invest in Bitcoin ?what if the market is favorable and I decide to use my emergency fund to get more? Just as u said, it stresses  the need to buy and continue to buy and hold for long .

Investing using emergency funds is never a good idea. You can never tell how long the market will be in a good position. The Bitcoin market is very volatile. You might be thinking that you can invest with emergency funds and withdraw it after some time with profit. This is not sounding like an investor but like a business person. Emergency funds are only for dealing with emergencies. You should never invest or make investment decisions with emergency funds. If you invest with emergency funds and the market does not perform as you expected. And if the market falls. In the meantime, if you have to face financial disaster, you will have no other option but to sell your investment. Always refrain from investing with emergency funds

[Sticky Bomb]

We can also consider that investing with an emergency fund may come in a quick demand in seizing for an opportunity to invest,

Emergency funds are to be strictly kept for emergencies. It is best to maintain this discipline and not tamper with it unless we are faced with real emergencies since we do not know when the emergencies shows up and wouldn't want to be taken unawares and risk tampering our portfolio in order to solve them.

just as we do have it form market shocks when it plummet after reacting on a particular cause and we feels its best appropriate that we fall back on our emergency fund in other to take advantage of the opportunity and invest, which i think its another way we can maximize our profit proficiency using another strategy (emergency fund) other than DCA we are used to.

Cases like this are why variances of reserve funds are kept aside for situations that are not necessarily emergencies. It is simple, if you want to buy the dip whenever it comes by, then save for it separately and utilize it when the opportunity comes by, I am not comfortable with leveraging on funds as important a emergency fund for non-emergencies because it can render your portfolio vulnerable, it can also undermine specificity and overtime, can even lead to wrong cashflow management practices.

[Tungbulu]

[edited out]

This is a commendable fund management plan. Having several funds in place with different liquidity levels is a great idea. The emergency funds should be more ready, available and accessible than every other backup funds, while the reserve funds can be a little more less liquid ( but still accessible) than the emergency funds.
It is also very essential to understand the liquidity of each of these backup funds, as this helps one to be able to effectively navigate certain challenges and also make good progress towards achieving your financial goals without feeling overwhelmed. Some of the backup funds could kept for very special purposes, just like major purchases or even for long term investments. When you know and realize the potential withdrawal obstacles of these funds, it helps you plan effectively and also to avoid falling under certain financial stress.

A balanced approach when it comes to funds management involves effectively allocating resources. This could be achieved by maintaining an emergency fund that’s easily accessible, having a very clear plans for your reserve fund and also allocating to longer term investments.

Each of us likely have different kinds of ways of storing our money and some of the money can be moved around for one purpose or another, and still we can make sure that we do not go below certain amounts of money that is in reserved without an actual emergency, so even if some kinds of funds are more liquid and other funds are less liquid, they might in combination serve as the various kinds of back up funds that cover both reserve funds and emergency funds, yet the emergency funds should never go below 3 months of reserves absent an actual emergency or maybe you made some kind of a mistake that is also able to be fixed within a short period of time if the emergency funds ends up being tapped into inadvertently, .. and then at the same time, hopefully learning from any mistakes that we might have made in managing the funds and/or how rapidly we might be able to replace the emergency funds if they were ONLY partially tapped into.

Effectively managing one’s funds is indeed a multifaceted strategy which involves categorizing your funds into different safety nets, with each safety net serving different goals. The main idea of this strategy is often to ensure that one has an emergency funds that’s capable of covering at least (in my opinion) 3-6 months of living expenses to serve as an actual safety net and to provide some sort of financial stability whenever unexpected events like losing one’s job, urgent medical emergency or car repair comes up.

It can really be challenging for some people to avoid the temptation of dipping into their backup funds for nonessential reasons or purposes that may not really turn out to be actual emergencies, and this is often one of the biggest challenges some people face when it comes to funds management.
It’s essential to have discipline and also a very clear financial plan in order to ensure that these funds remains intact and untouched except of course for the real reasons or an actual emergency occurs and it’s necessary to tap into these funds. And even if eventually the situation occurs where you’ll need to tap into these funds, there should always be a plan to replenish them as soon as possible.

It is indeed also very essential to also learn from any mistakes made during your funds management. When you learn to analyze the situation that led you to tapping or using the emergency or backup funds, it becomes a lot more easier to adjust your budget, investment strategies and even your spending habit so as to prevent such situations from occurring again in the future. You may even consider finding a few additional sources of income or even tightening your budget for some period of time in order to achieve this.

The overall goal for an effective fund management is often to create or make sure to set up a system that works for you, one that simultaneously offers you the security of your assets as well as the opportunities for growth. It can be a lot more easier to build a solid foundation our long term goals if we learn to prioritize the emergency funds, being more strategic with the reserve funds and of course also having a disciplined mindset, which is of course very important.

[Pi-network314159]

[edited out]

snip

snip

It can really be challenging for some people to avoid the temptation of dipping into their backup funds for nonessential reasons or purposes that may not really turn out to be actual emergencies, and this is often one of the biggest challenges some people face when it comes to funds management.

well it can really be challenging for people to dip dive into there bitcoin hodling for unnecessary things but yet people can work it out by self discipline. as i have discovered, the most common scenario that affect most bitcoin investors to dip dive into their bitcoin hodling, emergency fund, backup or reserve fund is addiction. addiction comes in many ways, which includes gambling on sport bet, drug addict, womanizing, clubbing and etc. most times we often neglect this things seeing them as a common thing, perhaps its one of the pioneer of most dip diving into our hodling. a real bitcoin investor should be dedicated and be serious and totally avoid these things to be on a safer side to meet up his target. i am not completely saying that having fund while investing is bad, but there should be jurisdictions to an extent to achieve success. success doesn't comes without determination. some urge will have to die to achieve our goal. there is more to investing in bitcoin than how people sees it. using discretion fund for fun is understandable, but going far as touching emergency fund or selling bitcoin for frivolities is something else.

another thing that makes people to dip into their hodling is because the lack the interest of setting aside emergency fund. a person who dont takes accumulating emergency fund seriously will have no choice than to touch his investment due to some mere incident

[Popkon6]

Hello guys, I’m new to the thread and I want to understand more about buy buy or sell sell , I want to know more about buying and accumulating Bitcoin, I will be glad if you guys can help and reply or give answers to my questions
Thank you .

Snip

Okay thank you so much for your encouragement and knowledge , with these as a beginner I will focus more on buy buy buy rather than the selling part to enable me invest more rather than selling and be at lost.

But what if I decide to use my emergency fund to invest in Bitcoin ?what if the market is favorable and I decide to use my emergency fund to get more? Just as u said, it stresses  the need to buy and continue to buy and hold for long .

Investing using emergency funds is never a good idea. You can never tell how long the market will be in a good position. The Bitcoin market is very volatile. You might be thinking that you can invest with emergency funds and withdraw it after some time with profit. This is not sounding like an investor but like a business person. Emergency funds are only for dealing with emergencies. You should never invest or make investment decisions with emergency funds. If you invest with emergency funds and the market does not perform as you expected. And if the market falls. In the meantime, if you have to face financial disaster, you will have no other option but to sell your investment. Always refrain from investing with emergency funds

We usually use emergency funds to protect our Bitcoin long-term holdings, so that whenever we face problems with long-term holdings, we will immediately deal with that danger with emergency funds. Different people may present it differently, but basically we create emergency funds to deal with dangers, a person who works and uses 10% to 15 percent (maybe even more) of his salary to regularly perform DCA in Bitcoin on a weekly basis. In such a situation, if he suddenly falls ill, it becomes difficult for him to operate the DCA method on a weekly basis and to meet the basic needs of the family, he can use emergency funds.
Because it should not be said that a person will always have money, because we are preserving our investments in the long term and are also following the weekly DCA method in the long term. So it is natural that dangers will come in the long term, we will use this emergency fund to deal with this danger, so that our long-term Bitcoin holdings can be safe and secure.  And if other people use it for different purposes, that's their personal opinion.

[Lembo69]

It would have been more better to say when the market dip will buy more (keep buying) and when it pumps will keep buying until the long term goals is achieve and that is what makes you an investor, the dip offers buying more Bitcoin at a lesser price compared to its previous high hence we don't just hold our asset in dip but see as advantage to more Bitcoin and not with the mindset of selling when it pumps, you sounded more like a trader than an investor. An investor maximize every buying opportunities by buying Bitcoin all the time until
 they reach their targets.

Yes, it is good for an investor to ignore the market and buy at all times of the market. That is, you will buy at all times of the market, as long as you achieve the goal. This is the characteristic of an investor. An investor buys during the market decline and also buys during the market rise. When someone has the mindset of an investor, he keeps looking for buying opportunities at every moment of the market. They are not the ones who panic even during the market decline and decide to sell after a little pump. Rather, they consider the market decline as a profitable time to buy and try their best to increase the portfolio. Even during the market pump, they use the market positively and maintain continuity in investment without considering buying.

When someone considers buying during the dip or the fall and thinks it is best to sell during the pump or the market rise, basically they are not investing but they are trading. In such a practice, a person is always chasing short-term gains and putting their money at risk. Although long-term investments take more time, your risk is less and you have the potential to get more profit. What's more, your consistent investment will eventually take a shape that you never imagined.

A negative new investor always wants to increase his investment because he does not want to face any kind of uncertainty in the market, but those who buy and sell investments as soon as the price rises are called traders. Because investment is not a business, investment is savings and through Bitcoin you can increase your savings or investment. The more Bitcoin you can accumulate, the higher your portfolio will be at some point. There are also those who sell their investments as soon as the price increases a little from the price they bought. They can never be good hodlers or investors, buying when the price falls and selling when it rises is foolish because you are saving your money for the future by investing in Bitcoin. In such a situation, if you sell, you will regret it later when you cannot buy. Always try to hold your investment for a specific period of time, preferably 4-10 years.

And no matter how much complications or pressure you face in these 4-10 years. Continue investing with the thought that you will not lose your investment in any way. If your financial situation is deteriorating, the DCA strategy may be the best option for you.

[michellee]

We can also consider that investing with an emergency fund may come in a quick demand in seizing for an opportunity to invest,

Emergency funds are to be strictly kept for emergencies. It is best to maintain this discipline and not tamper with it unless we are faced with real emergencies since we do not know when the emergencies shows up and wouldn't want to be taken unawares and risk tampering our portfolio in order to solve them.

Emergency fund should not be use for anything except for an emergency and in urgent situation. If you mix the fund with the investing, you will loss your investment because you will use your investment to cover your emergency. That will make your investment amount reduce while you will difficult to accumulate more and more. We could be in an urgent situation anytime because no one can know the time. We don't have to tamper that fund because that fund is only for emergency funds and not for other things.

It is why we must have discipline and strictly to allocate the fund in the right place. If we are in the urgent situation, we can use that fund and cover it without disturb the other money in their places. We don't have to borrow other people money because we can handle our emergency need without a problem.

[Derekfunds]

It would have been more better to say when the market dip will buy more (keep buying) and when it pumps will keep buying until the long term goals is achieve and that is what makes you an investor, the dip offers buying more Bitcoin at a lesser price compared to its previous high hence we don't just hold our asset in dip but see as advantage to more Bitcoin and not with the mindset of selling when it pumps, you sounded more like a trader than an investor. An investor maximize every buying opportunities by buying Bitcoin all the time until
 they reach their targets.

Yes, it is good for an investor to ignore the market and buy at all times of the market. That is, you will buy at all times of the market, as long as you achieve the goal. This is the characteristic of an investor. An investor buys during the market decline and also buys during the market rise. When someone has the mindset of an investor, he keeps looking for buying opportunities at every moment of the market. They are not the ones who panic even during the market decline and decide to sell after a little pump. Rather, they consider the market decline as a profitable time to buy and try their best to increase the portfolio. Even during the market pump, they use the market positively and maintain continuity in investment without considering buying.

When someone considers buying during the dip or the fall and thinks it is best to sell during the pump or the market rise, basically they are not investing but they are trading. In such a practice, a person is always chasing short-term gains and putting their money at risk. Although long-term investments take more time, your risk is less and you have the potential to get more profit. What's more, your consistent investment will eventually take a shape that you never imagined.

A negative new investor always wants to increase his investment because he does not want to face any kind of uncertainty in the market, but those who buy and sell investments as soon as the price rises are called traders. Because investment is not a business, investment is savings and through Bitcoin you can increase your savings or investment. The more Bitcoin you can accumulate, the higher your portfolio will be at some point. There are also those who sell their investments as soon as the price increases a little from the price they bought. They can never be good hodlers or investors, buying when the price falls and selling when it rises is foolish because you are saving your money for the future by investing in Bitcoin. In such a situation, if you sell, you will regret it later when you cannot buy. Always try to hold your investment for a specific period of time, preferably 4-10 years.

And no matter how much complications or pressure you face in these 4-10 years. Continue investing with the thought that you will not lose your investment in any way. If your financial situation is deteriorating, the DCA strategy may be the best option for you.

4 years of holding, I think it is the minimum a long term investor should hold and I want you to understand that holding for this minimum of 4 years doesn't guarantee or doesn't mean you will have a huge profit or return please do not be decided, what will guarantee or what will determine how big your return or profit will be in 4 years time is your portfolio that is if your portfolio is big ( consistent accumulation) and also if Bitcoin has moved to a great height ( skyrocket) within this interval of 4 years because even if you have a big portfolio and Bitcoin doesn't skyrocket within this interval of 4 years because of its volatile nature your profit won't be that big vice versa. So note that our return is dependent on the price of Bitcoin and our portfolio.

[tiCeR]

[edited out]

The category poor people with good income is the worst because they are wasting an amazing life opportunity. You can waste a fraction of it and learn from it and I think that is what most people are going through, making mistakes in the right moments is sometimes the best that can happen to you. But I know that in bitcoin many people wasted a once in a lifetime chance for the many in a lifetime things, just because they didn't have them before or are part of the poor people with good income group.

Sure, there are some poor people with good income who will be able to learn and to use their good income to invest rather than consume, yet the ones that learn and get themselves out of poverty are not necessarily the normal outcome, since surely it could be possible that poverty teaches a poor person with income to figure out ways to get out of such situation, yet surely poor people can get lured into getting nice things and to not spend enough time learning stronger forms of cashflow management and including finding a good investment, such as bitcoin.

In various threads on the form, members have frequently discussed at various points that both poor people and rich people can develop good or bad cashflow management skills and practices.  They are not difficult to learn or to employ, even though many folks will not try employ good practices which also help them in learning how to get better in their cashflow management practice with their experiences.   

Many of us likely realize also that there are even cases in which poor people are able to surpass rich people in their level of wealth and/or their level of success or at least directionally poor people might sometimes be gaining in their wealth while rich people are losing in their level of wealth based upon their cashflow management practices, their investments and/or their efforts to learn from their experiences.

Maybe this comes down to the ability to resist and postpone. For some people, who knows, maybe brain chemicals come into play and they can't stop spending, making the wrong decisions, undermining themselves in the process of building wealth over time, which, in all honesty, is not an easy thing to do depending on the circumstances.

It reminds me of losing weight or eating healthy. Almost everyone knows that eating less or less calorie dense foods leads to weight reduction, but it is not the knowledge, it is the ability to execute. This ability to execute could suffer from a couple of factors and for some people it is easier, for some it is harder. To resist short term pleasure is quite certainly connected to brain chemistry. Some people are not exactly wired to be able to handle temptation very well. Wrong brain chemistry interferes heavily with proper long term planning.

In finance this could play out in both ways and let's use bitcoin as an example. In a volatile environment, the temptation to sell when bitcoin turns red is bigger for some people than for others. The temptation to sell when it is up 5x or 10x is again bigger for some people than for others. I believe, and your opinion would be interesting here, that the ability to resist selling in times of negative prices and the ability to resist in times of positive prices is lower for the same kind of people. This means there is a category of people that is limited in the magnitude of the ability to resist selling in both directions, narrowing down their scope tremendously to build a portfolio over time. They feel more fear when it goes down and rather sell, and they feel more urge to take profit when it goes up. Now I was only talking about selling, include buying into that equation and you see how complex it can become for some people, not for all of course.

There are of course other categories and you have those who never sell, but not because they are building their BTC stash confidently or rationally, but because they are greedy. In the case of bitcoin this would have paid off most of the time, but this is because of the unprecedented upside potential bitcoin brought about. In the shit coin era in 2017 some people did the same and they lost it all while they felt rich on paper. That is why building wealth over time for the "never sell because of greed" category could run into problems as well if they play the same game with other assets.

To sum this up, I think it is not the rules or principles that people don't understand most of the time, but their own psyche that makes them deviate from the plan. I think we all have an area in life where we can empathize with that.

Last but not least and this is bitterly true, there is also a lot of stupidity in laziness in finance. I didn't want to exclude this in any way. But I wanted to add to the spectrum that I believe for some people it is really hard because of the way they are wired for whatever reason.

[Gallar]

There are many people who decide to buy Bitcoin with emergency funds in this way, there are many mistakes in their thinking, they decide to buy Bitcoin with emergency funds, but they do not even think that an emergency situation can arise at any time, when they need this fund. Buying Bitcoin at the dip price is definitely good and profitable, but for that, we should never remove the safety fund for this. Because as much as you are thinking of buying Bitcoin at the dip price with emergency funds in the hope of making a profit, when faced with a real situation, you will likely lose more than that. Therefore, you should never buy Bitcoin with more money than you can afford, especially buying Bitcoin with a specific fund is never reasonable. Keeping the DCA consistent, if you want to buy Bitcoin at the dip price, then create a separate budget for it as a reserve fund, this is the right decision.

Yes, emergency funds are one of the foundations for our investment in bitcoin to run smoothly. So if for example the emergency funds are also accumulated into bitcoin, it is the same as destroying a foundation that is intended for the success of the investment itself. That is why at that point investors must be wiser in managing their finances, do not let it be just because they are tempted to see the price drop, the emergency fund is used. Of course, this is not the right choice, in fact it can interfere with the smoothness of our investment. So as you said, that we are better off consistently doing DCA and not taking unnecessary risks.

Maybe buying bitcoin when it drops can also be done, but on the condition that we still have to use cold money and it would be even better if we already have enough bitcoin, or have almost reached our accumulation goal. If so, I also agree that buying bitcoin when it drops can be done. So don't let our bitcoin portfolio not reach 20% yet be tempted to take big risks by buying bitcoin when it drops using emergency money. So don't worry and don't panic, because we are investors. Because if we talk about profit with DCA consistently, we have the potential to get a lot of profit in bitcoin. So never get out of our investment path and our intentions from the start.

[Barikui1]

We can also consider that investing with an emergency fund may come in a quick demand in seizing for an opportunity to invest,

Emergency funds are to be strictly kept for emergencies. It is best to maintain this discipline and not tamper with it unless we are faced with real emergencies since we do not know when the emergencies shows up and wouldn't want to be taken unawares and risk tampering our portfolio in order to solve them.

Emergency fund should not be use for anything except for an emergency and in urgent situation. If you mix the fund with the investing, you will loss your investment because you will use your investment to cover your emergency. That will make your investment amount reduce while you will difficult to accumulate more and more. We could be in an urgent situation anytime because no one can know the time. We don't have to tamper that fund because that fund is only for emergency funds and not for other things.

It is why we must have discipline and strictly to allocate the fund in the right place. If we are in the urgent situation, we can use that fund and cover it without disturb the other money in their places. We don't have to borrow other people money because we can handle our emergency need without a problem.

The primary purpose of emergency funds is to cover up and stand as a shield to your holdings, so that under no circumstances will you temper with your holdings in the future, so if you stupidly use your emergency funds to invest due to the fact that you feel that it's a dip that might not come again, though you might be right that it might not come again, but you are doing the right thing the wrong way, because at that particular time, if any emergency situation arises, you will definitely temper with your holdings which is not the right way to go.

 So for a situation like this where their is a dip and you feel like buying then, but no discretionary income then, that is where reserve funds comes in and play his role, because that's the money that will be used to purchase Bitcoin then, not your emergency funds.
So as we are investing through any accumulating method, let's not forget to do proper budget in allocating money for investing, emergency funds and reserve funds, so that no matter what life throws at you in the future, your holdings will still be intact, and is appreciating in unit, because the size of your stash is what's going to determine how successful you might be in the future.