Buy Buy Buy or Sell Sell Sell?

[ejikeme24]

There are some people who use all there salary for the week to invest on Bitcoin hoping get money from somewhere maybe they have a side hustle where they are expecting money from that same week, it very is wrong to use all your salary for the week to invest in Bitcoin because you are hoping to get another money from your side hustle what if something happened and that your side hustle failed for that week and you don't receive any money

Before an investor will think of investing with his whole salary for the week it means that he has a reliable and trusted source of getting money, perhaps an investor can not possible use all his salary for the week to invest in bitcoin when he's not sure about the other source. And it will be so unwise of any investor that will engage himself into such act when he's not yet sure about the other source.

this was what made me dip hands into my Bitcoin investment and it thought me a lesson so when you get your salary for the week use only your Discretionary income from that salary to accumulate Bitcoin and then when the side hustle money comes you can decide to invest all.

The reason why you end up dipping your hand into your bitcoin investment is because you weren't sure about the other source, so anyone that choose to invest with his whole salary for the week need to ensure that the source in which the other money is coming from is very reliable, and not from side hustle because sometimes those side hustle may not work as expected, Which is why we don't need to depend on that.

[Furious 7]

I actually feel that in this case this is not the important point. Although it is not wrong to make aggressive purchases, it is also not something that everyone can do because after all, making aggressive purchases must be supported by adequate financial conditions.

The main point is about how we live and what our financial conditions are, because in the end making aggressive purchases can also make you trouble yourself when your financial condition is bad so in this case the thing that must be considered is our financial condition in the sense of whether our income can support our living needs in the expenses and investments that we make because in the end if we are not able to balance it, making aggressive purchases will only confuse you to accept the risks that we have to face.
We invest because we are able to accept the risk and making aggressive purchases is actually optional as long as we can and are able, then this is possible to happen but when we are indeed considered unable to face the risk, then do another purchasing method, don't push yourself too hard.

It is strongly advised to invest with descritiinary income so you don't  end up running back to your portfolio each time you encounter any problem financially. Besides, setting up an emergency fund can help solve some unforseen circumstances that requires financial intervention, only then can you make an aggressive purchase without worrying about little unforseen problems. It becomes really easy to switch accumulation strategies or apply a mixture of strategies when you have a reserve fund for any emergency situation, at least a reserve fund which is equivalent to 3 month salary. What we need to consider as investors is, being able to remain comfortable with our investments in respect to our risk tolerance that is, I'll be unwise to have an upcoming project which may require your accumulated reserved fund, yet you're still making aggressive purchases. Though I understand opportunities don't last forever but like I said  earlier there is no point making aggressive purchases when your reserved fund is not in place, at least your reserve fund should be your plan B should incase problem arises.

Therefore, financial management is the most crucial part that must be applied when we invest, especially when we are in bitcoin so that we do not let problems from a financial point of view occur we do not immediately make the decision to take from the portopolio that we have because we certainly realize that we have long-term goals and things like this will feel ridiculous if we try to invest with any strategy and method but when we have financial problems we are confused because our money runs out which results in us immediately leaving the investment we are doing just because we want to make a living.
Not that this is not allowed but to become a good investor we need to prepare this from the start because this is the basis for us to become someone who is strong-handed in the hodl that is done.

If the financial management that we do is well organized then we actually already know what we have to do with the investment methods or strategies that we are ready to execute without having to think about whether our economy is sufficient or not because we have organized and planned this carefully then the investment will run according to what we want.

[IceLincoln]

People who are new to crypto likes to gamble without having a good knowledge and understanding about the market. This are people who are mostly interested in shitcoin, are people who are also genuinely interested in buying and selling and trading because of ignorance not knowing how much they are losing in the market. Most of them are just interested in buying all kind of different shitcoin and be watching them regularly as soon as they see that there is a little profit they sell immediately. They don’t know what they are doing, if only they knows that they can actually buy bitcoin and invest and hold for a long time and make more profit, that is why I see this single act of desperation of investing in shitcoin as ignorance.

Investment must start with good knowledge, deep learning , then enough practice for their risk control, capital allocation and management for their investment portfolio. Bitcoin grows with time in adoption, value and price so if they can have good management and they are able to hold bitcoin in right ways - in non custodial wallets, off centralized exchanges, they will be in their good investment adventure to profit and better wealth.

Bitcoin investment isn't other kind of investment that you must learn deep into it and have a good knowledge before you can invest. Only the basic knowledge of bitcoin is enough fo a new investor to start his bitcoin investment as long as he has his discretionary income available. This is because bitcoin is a long-term investment and you are only buying and buying without selling.

You can learn whatever aspect of bitcoin that's of importance to you as you have started investing in bitcoin, so that you don't waste more time trying to learn deep about bitcoin as the no coiner and miss out the opportunity in the market. Bitcoin is broad and needs time to learn little by little, that's why you don't need to deprive yourself from starting your bitcoin all in the name of learning. As a matter of fact, bitcoin investment knowledge must be done with practice for better experience.

Anyone that's already use to saving part of his discretionary income to buy something of important to him, will easily be able to have a good cash inflow management.

You’re absolutely correct @Ruttoshi, bitcoin investment is a learn as u grow investment, it is with time and practice experience is built. It don’t need you to seat in a class or at home to gather all the knowledge before you can invest.

My early stages in crypto, I got involved in Shitcoins I didn’t actually buy it, I joined in an airdrop and the reward I decided to leave it cos I saw the price rising and I was happy. I should have have taken my gains and left but I had this mindset that if I leave it for while it’ll get higher. I stopped looking at it only for me to check the price has plummeted below what I was initially given. Now I’ve learnt not to hold Shitcoins for long and even when getting involved proper knowledge should be acquired.

When I started my bitcoin journey, I started with storing my coins in an exchange with time I learnt it’s not safe to hodl there when I’m not trading and even though it was little I had to make sure it’s safe. Because I had some coins I became more serious and involved in matters concerning bitcoin, I wanted to know more.
My research and findings were now more direct and specific to what I wanted to improve instead of a broader study.
Experience they say it’s the best teacher.

[Sonia_123]

There are some people who use all there salary for the week to invest on Bitcoin hoping get money from somewhere maybe they have a side hustle where they are expecting money from that same week, it very is wrong to use all your salary for the week to invest in Bitcoin because you are hoping to get another money from your side hustle what if something happened and that your side hustle failed for that week and you don't receive any money

Before an investor will think of investing with his whole salary for the week it means that he has a reliable and trusted source of getting money, perhaps an investor can not possible use all his salary for the week to invest in bitcoin when he's not sure about the other source. And it will be so unwise of any investor that will engage himself into such act when he's not yet sure about the other source.

this was what made me dip hands into my Bitcoin investment and it thought me a lesson so when you get your salary for the week use only your Discretionary income from that salary to accumulate Bitcoin and then when the side hustle money comes you can decide to invest all.

The reason why you end up dipping your hand into your bitcoin investment is because you weren't sure about the other source, so anyone that choose to invest with his whole salary for the week need to ensure that the source in which the other money is coming from is very reliable, and not from side hustle because sometimes those side hustle may not work as expected, Which is why we don't need to depend on that.

It is not adviceable to hope for fund when investing, it is a wrong idea,also using all your monthly income for investment and start hoping for funds which you are not sure of  implies that you have low cash flow, but you can still investment but not using all your monthly income and that is why it is advice able to use the DCA strategy which will help you invest gradually for a long-term without any problem since you are interested in investing in Bitcoin as a no/low coiner, that is why we have being taught in this forum on how to manage our resources for a successful Bitcoin investment journey using your DCA strategy and others according to JJG

Largely in this thread, we have been talking about three kinds of back up funds.

1) emergency funds - try to build them up to 3 months of your expenses (income) and only use for actual emergencies such as loss of income and/or increased expenses

2) reserve funds - can be used for any kinds of extra expenses or saving up for items, including buying btc dips, if wanted

3) float funds - from month to month may keep extra funds (cash) in accounts when the exact expenses might not be known.  Once expenses are determined then the floats may be converted into reserve funds, which thus come available for spending if so chosen.

am not going to negate that each of us will consider the classification of our responsibilities differently, and also the urgencies that might be involved in terms of replacing our funds if they might be used, and if we deplete certain funds at some point we might have to stop buying bitcoin until such point that we replenish certain funds... so there could be priorities that are given in regards to buying $10 per week worth of BTC no matter what until maybe the reserves go down to a certain level in which the buying of BTC has to stop, but there could also be circumstances in which there is a range that maybe up to $100 worth of BTC per week get bought so long as the reserves stay above a certain amount, but then at some point the purchasing of BTC might have to stop when the cash cushion drops below a certain level.. and then the next thing is to be avoiding the selling of BTC, so maybe some of the reserves get used first, and the reserves may mostly be in cash, but there could be higher levels of reserves that are in other forums, so we might have certain priorities in terms of from where we spend first and as the different levels of reserves and/or float is depleted, then we might start to come close to using our reserves, and as the situation persists if we cut our expenses and/or try to increase our income and perhaps some of those sources of extra funds dry up too as we deplete them with the passage of time. and then we are faced with fewer and fewer extra funds with perhaps our bitcoin being the last source of funds after we have depleted our emergency funds...

so part of the point is that there tend to be priorities in terms of how funds are spent and at which point funds can still be spent or replaced, but if an emergency goes on for longer and longer the sense of urgency of the situation can increase, but there could be some point in which all the sources of funds are depleted.. maybe in a situation in which a person is injured and/or sick and cannot work or maybe can only work a small amount, and maybe recovery is hoped for and return to work is hoped for, but does not end up happening as is hoped, even if efforts are made,.. so the longer the emergency situation persists the more that extra funds are depleted and the more likely that extra funds, such as bitcoin might end up being spent too..
so we surely do not want to get to that kind of an outcome, so

sometimes we are going to have a  variety of level of funds that can be used prior to needing to dip into our bitcoin, and some of our funds might be also considered as working capital, and we still will consider priorities in terms of which to spend first and what circumstances, and each of us are not necessarily going to come to the same conclusions regarding priorities in terms of which funds are spent first or how to manage the cutting of expenses (necessities versus wants and at which points the differing levels of emergency are reached that triggers differing spending or cuts of spending.

[Tonimez]

There are some people who use all there salary for the week to invest on Bitcoin hoping get money from somewhere maybe they have a side hustle where they are expecting money from that same week, it very is wrong to use all your salary for the week to invest in Bitcoin because you are hoping to get another money from your side hustle what if something happened and that your side hustle failed for that week and you don't receive any money

Before an investor will think of investing with his whole salary for the week it means that he has a reliable and trusted source of getting money, perhaps an investor can not possible use all his salary for the week to invest in bitcoin when he's not sure about the other source. And it will be so unwise of any investor that will engage himself into such act when he's not yet sure about the other source.

this was what made me dip hands into my Bitcoin investment and it thought me a lesson so when you get your salary for the week use only your Discretionary income from that salary to accumulate Bitcoin and then when the side hustle money comes you can decide to invest all.

The reason why you end up dipping your hand into your bitcoin investment is because you weren't sure about the other source, so anyone that choose to invest with his whole salary for the week need to ensure that the source in which the other money is coming from is very reliable, and not from side hustle because sometimes those side hustle may not work as expected, Which is why we don't need to depend on that.

It is not adviceable to hope for fund when investing, it is a wrong idea,also using all your monthly income for investment and start hoping for funds which you are not sure of  implies that you have low cash flow, but you can still investment but not using all your monthly income and that is why it is advice able to use the DCA strategy which will help you invest gradually for a long-term without any problem since you are interested in investing in Bitcoin as a no/low coiner, that is why we have being taught in this forum on how to manage our resources for a successful Bitcoin investment journey using your DCA strategy and others according to JJG

Largely in this thread, we have been talking about three kinds of back up funds.

1) emergency funds - try to build them up to 3 months of your expenses (income) and only use for actual emergencies such as loss of income and/or increased expenses

2) reserve funds - can be used for any kinds of extra expenses or saving up for items, including buying btc dips, if wanted

3) float funds - from month to month may keep extra funds (cash) in accounts when the exact expenses might not be known.  Once expenses are determined then the floats may be converted into reserve funds, which thus come available for spending if so chosen.

am not going to negate that each of us will consider the classification of our responsibilities differently, and also the urgencies that might be involved in terms of replacing our funds if they might be used, and if we deplete certain funds at some point we might have to stop buying bitcoin until such point that we replenish certain funds... so there could be priorities that are given in regards to buying $10 per week worth of BTC no matter what until maybe the reserves go down to a certain level in which the buying of BTC has to stop, but there could also be circumstances in which there is a range that maybe up to $100 worth of BTC per week get bought so long as the reserves stay above a certain amount, but then at some point the purchasing of BTC might have to stop when the cash cushion drops below a certain level.. and then the next thing is to be avoiding the selling of BTC, so maybe some of the reserves get used first, and the reserves may mostly be in cash, but there could be higher levels of reserves that are in other forums, so we might have certain priorities in terms of from where we spend first and as the different levels of reserves and/or float is depleted, then we might start to come close to using our reserves, and as the situation persists if we cut our expenses and/or try to increase our income and perhaps some of those sources of extra funds dry up too as we deplete them with the passage of time. and then we are faced with fewer and fewer extra funds with perhaps our bitcoin being the last source of funds after we have depleted our emergency funds...

so part of the point is that there tend to be priorities in terms of how funds are spent and at which point funds can still be spent or replaced, but if an emergency goes on for longer and longer the sense of urgency of the situation can increase, but there could be some point in which all the sources of funds are depleted.. maybe in a situation in which a person is injured and/or sick and cannot work or maybe can only work a small amount, and maybe recovery is hoped for and return to work is hoped for, but does not end up happening as is hoped, even if efforts are made,.. so the longer the emergency situation persists the more that extra funds are depleted and the more likely that extra funds, such as bitcoin might end up being spent too..
so we surely do not want to get to that kind of an outcome, so

sometimes we are going to have a  variety of level of funds that can be used prior to needing to dip into our bitcoin, and some of our funds might be also considered as working capital, and we still will consider priorities in terms of which to spend first and what circumstances, and each of us are not necessarily going to come to the same conclusions regarding priorities in terms of which funds are spent first or how to manage the cutting of expenses (necessities versus wants and at which points the differing levels of emergency are reached that triggers differing spending or cuts of spending.

You have elucidated your point obviously and I would commend you on that. But I also stand to say that the level of reserved funds you described here are almost impracticable to many investors and/or Newbies.  A salary earner knows when he would see his salary and already knows the amount. This allows home to almost rotate their circle of expenditure and also place it hierarchically.

Emergency funds are all-important and a must have. Keeping enough reserve funds could save your life anyday. Before you invest, you save your reserves and you also need to save up fiats, cash at hand also.

[JayJuanGee]

Buying bitcoin to hold for a long time is the most of all because it comes with lesser risk compared to other forms if investment and trading, all it may requires form us is to understand and have the ability of knowing the best time to buy and for how long to hold before selling, by doing this, we may eventually ended not being out of moves, because we are already standing on a right position as we hold, but some don't have the knowledge of why they must do this and avoid doing other things, because the main purpose for us to invest is with the intention of making profits, but the real fact is that not everyone investing are getting it right to making the profit.

You, Doan9269, seem to be describing a trader mindset rather than an investor mindset, since with an investment that might be a timeline that is 4-10 years or longer, and yeah, perhaps 10 years or longer is a better way of thinking about it since the lower timelines of 4-10 years might only have legitimate reasons to get out of the investment for health and/or age reasons.. Otherwise maybe 4-10 years might be considered to be bordering on trading rather than investing..  since an investor might take many years to establish a bitcoin position, maybe even 1-2 cycles just to establish a position, and then maybe if the investor takes 2 cycles to establish a position, he might spend 1 cycle waiting before transitioning into sustainable withdrawal stage...  That would add up to 3 cycles in total, which may well bring many investors to needing to plan 12 years or longer for their bitcoin investment.   

I appreciates your further enunciation on this, because we need to understand why we must invest and as well the required time frame for us to hold before we can be profitable at it, which some of us mistakenly or unknowingly got wrong when differentiating from Investment and trading.

Now i understand that we need to proof ourself an investor being able to hold and have this done for some years in other to appreciate the value of our investment in a profitable manner, an holder must be able to afford waiting for two to three market circles before making decision on sale, same applies as you have mentioned that it can also take up to a market circle for us to find a suitable entry into the market and invest to hold.

Some guys think that they need to trade in order to help to get the bitcoin to work for them, and so to attempt to get more profits out of bitcoin to be able to sell high and buy low, yet anyone who already has an income that produces decently good discretionary income may well end up screwing up his ability to build his bitcoin stash because when he sells to buy back lower, then he is engaging in gambling since the BTC price might not go lower and/or it might not even go close enough to being sure exactly when and how much to buy back, so then the guy ends up screwing up his focus and he no longer is focused on ongoing, persistent, consistent regular and perhaps even aggressive accumulation of bitcoin.. so then he may well end up with way less bitcoin based on his losing focus. .and he might think that he is trying to accumulate more bitcoin, but his actions are not actually resulting in the surety of accumulating more bitcoin that comes from ongoing and persistent buying of bitcoin.

It could be that some guys cannot resist the temptation to gamble and so maybe they would like to sell some portion of their bitcoin, such as 10% and then just keep on buying, and so I suppose that I am not really opposed to guys trying to figure out if they can be creative in regards to attempting to accumulate more bitcoin, yet whenever they sell up to 10% of their holdings, they likely are no longer accumulating and if they do accumulate, they are selling with one hand and buying with the other, which just results in more fees and some lack of certainty in regards to when and how to get back in.

Ongoing buying does help to keep the BTC stack growing and sure it may well take 2-3 cycles or more to really build up a bitcoin portfolio to a status of overaccumulation, unless the person might be able to frontload his investment and surely there are some guys who also receive pay bonuses 2-3 times a year that they may well be able to buy bitcoin right away or perhaps create some system of buying on dips to supplement their ongoing DCA practices.

Each guy has to decide, and if you fuck up, no one is going to suffer or feel sorry for you, except yourself.. .so you are responsible for your BTC portfolio building and getting to an overaccumulation status, which also may well not be an easy thing to achieve.. .but you have complete control in regards to how you do it and if you end up sabotaging your own building of your bitcoin holdings.

You are wrong because there are times when investing aggressively becomes necessary to achieve some targets or maximize opportunities. Aggressive investing is not entirely bad if all the minor ingredients are in place and it is done within the discretionary income. Just to through more light on this, aggressive investment is like someone whose discretionary income is $2,000 and decide to invest as much as $1,000 which represents 50% of the funds. This user is aggressive because he would have condition himself to avoid leisure and some other unnecessary things to be able to build a good Bitcoin portfolio within a time he would have set for himself or take dip he would have noticed in the market. This does not mean in any way that aggressive investing ignore the need for emergency funds or others, it is more connected to the passion and determination of the investor.

Therefore, the focus should not be too much on self-imposition. It is okay to be aggressive because aggressive buying can still be justified but it must be in accordance with the financial limits we have, meaning that we can still balance our primary needs in real life and investments made without exceeding the income we get every month.

Being aggressive does not only mean buying a large amount directly but also those who make purchases without a limited time frame can also be said to be aggressive purchases, for example those who originally buy once a week are changed to a week 2 or 3 times it can also be an aggressive step taken and it is okay for them to do as long as they are aware of the risks and can minimize or manage their finances well so that what they do does not make them difficult at the end because they cannot bear the risks they have.
But even though this is okay to do, it doesn't mean we have to do it if we can't afford it because after all, a strategy like this certainly also triggers a much greater risk than ordinary purchases and when it will be done, we must indirectly be prepared with all forms of conditions which of course this is based on the economy we have.

Buying bitcoin does not mean that we go overboard at any particular time and/or with any particular purchase (or set of purchases) that we choose to make.  If we make a mistake and we invest money that we actually need for our expenses, then we are overaggressively investing into bitcoin, and so if we merely call it being aggressive, we are ending up wrong and we have to suffer the consequences for our not knowing the difference between aggressive and overaggressive.

I will agree with any assertion that it is better to error on the side of being less aggressive rather than making the mistake of employing overly aggressive practices, and probably it is even more important for beginners to error on the side of not overdoing it, especially while they are getting used to investing and perhaps even learning the boundaries of their cashflow management practices while they might also be building up their emergency funds too, while investing into bitcoin at the same time...so yeah, a balance is likely important to make sure that none of us ends up overdoing it and then recking ourselves in the early years of our bitcoin investment since it is likely important to keep building the bitcoin investment from a solid foundation without setting ourselves back due to our becoming too aggressive too soon.

We should want to survive in the short term, but also survive in the long term, and so building good habits from the start is good, yet at the same time, the more we get used to recognizing boundaries between aggressive and overaggressive then the more that we would be able to maximize our aggressiveness, while at the same time knowing that we are not overdoing it, such as also having back up  funds available in case we make relatively small mistakes along the way of learning.

[Gost ms]

You have elucidated your point obviously and I would commend you on that. But I also stand to say that the level of reserved funds you described here are almost impracticable to many investors and/or Newbies.  A salary earner knows when he would see his salary and already knows the amount. This allows home to almost rotate their circle of expenditure and also place it hierarchically.

Emergency funds are all-important and a must have. Keeping enough reserve funds could save your life anyday. Before you invest, you save your reserves and you also need to save up fiats, cash at hand also.

Your comment is very misleading. There is no need to save reserves or save cash flow before investing. You do not have to wait for anything to invest. If you delay investing to save reserves or save cash flow before investing, then you may miss out on many buying opportunities during this time. What can you do with reserve reserves or save cash flow if you do not already have any investment funds?

Yes, you can strengthen your financial management by using these in real life. But you should not delay investing in any way to save reserve funds or save cash flow. This will not only make you lose buying opportunities but also delay achieving your goals. So make sure you have sufficient basic knowledge for investing and have a prudent source of income. I think you should not delay investing for anything else.

You can create these along with investing. By building on top of your stable income, you can build an emergency fund alongside investments.

[Barikui1]

Emergency funds are all-important and a must have. Keeping enough reserve funds could save your life anyday. Before you invest, you save your reserves and you also need to save up fiats, cash at hand also.

No bro, I think that this is actually wrong in my own opinion because that move might delay you in your investment, you don't have to start saving your reserve funds before you start your Bitcoin accumulation journey, all you just have to do is to start accumulating Bitcoin through your discretionary income and along the line you can start building your emergency funds and your reserve funds gradually, but if you decide to be waiting to have a reserve fund first before you start investing, you might not even start investing after all, after you have wasted a whole lot of time you would have utilized properly, so just start now if your discretionary income is available, along the line you can start making provisions for emergency funds and reserve funds, because they are very key in preserving your Bitcoin investment from any real life emergency that may have warrant you to temper with your investment, but once you have it in place, your Bitcoin investment is safe because it's stands as a shield against any unforseen circumstances that may arise in the future.

[Bitcoin.com97]

nothing is guaranteed in this life so I disagree with you when you only trading has no guarantee, because even bitcoin investment has no guarantee too, but it is more profitable and less risky than trading, trading is Very risky and it's not really that profitable compared to one long term holding.

Yeah nothing is guaranteed in this life but buying Bitcoin for a long term it’s more profitable imagine investing for like 10 to 15years on Bitcoin I believe your increase is a guarantee by now , that is why we urge people to indulge in investing rather than trading , their is a big risk and lose in trading, trading has no guarantee. New investor should really source for good information and direction so they won’t make mistakes and they should channel their mindset on buying instead of trading as to avoid risk and not making any profit.

[Jostern]

There are some people who use all there salary for the week to invest on Bitcoin hoping get money from somewhere maybe they have a side hustle where they are expecting money from that same week, it very is wrong to use all your salary for the week to invest in Bitcoin because you are hoping to get another money from your side hustle what if something happened and that your side hustle failed for that week and you don't receive any money

Before an investor will think of investing with his whole salary for the week it means that he has a reliable and trusted source of getting money, perhaps an investor can not possible use all his salary for the week to invest in bitcoin when he's not sure about the other source. And it will be so unwise of any investor that will engage himself into such act when he's not yet sure about the other source.

this was what made me dip hands into my Bitcoin investment and it thought me a lesson so when you get your salary for the week use only your Discretionary income from that salary to accumulate Bitcoin and then when the side hustle money comes you can decide to invest all.

The reason why you end up dipping your hand into your bitcoin investment is because you weren't sure about the other source, so anyone that choose to invest with his whole salary for the week need to ensure that the source in which the other money is coming from is very reliable, and not from side hustle because sometimes those side hustle may not work as expected, Which is why we don't need to depend on that.

It is not adviceable to hope for fund when investing, it is a wrong idea,also using all your monthly income for investment and start hoping for funds which you are not sure of  implies that you have low cash flow, but you can still investment but not using all your monthly income and that is why it is advice able to use the DCA strategy which will help you invest gradually for a long-term without any problem since you are interested in investing in Bitcoin as a no/low coiner, that is why we have being taught in this forum on how to manage our resources for a successful Bitcoin investment journey using your DCA strategy and others according to JJG

Largely in this thread, we have been talking about three kinds of back up funds.

1) emergency funds - try to build them up to 3 months of your expenses (income) and only use for actual emergencies such as loss of income and/or increased expenses

2) reserve funds - can be used for any kinds of extra expenses or saving up for items, including buying btc dips, if wanted

3) float funds - from month to month may keep extra funds (cash) in accounts when the exact expenses might not be known.  Once expenses are determined then the floats may be converted into reserve funds, which thus come available for spending if so chosen.

am not going to negate that each of us will consider the classification of our responsibilities differently, and also the urgencies that might be involved in terms of replacing our funds if they might be used, and if we deplete certain funds at some point we might have to stop buying bitcoin until such point that we replenish certain funds... so there could be priorities that are given in regards to buying $10 per week worth of BTC no matter what until maybe the reserves go down to a certain level in which the buying of BTC has to stop, but there could also be circumstances in which there is a range that maybe up to $100 worth of BTC per week get bought so long as the reserves stay above a certain amount, but then at some point the purchasing of BTC might have to stop when the cash cushion drops below a certain level.. and then the next thing is to be avoiding the selling of BTC, so maybe some of the reserves get used first, and the reserves may mostly be in cash, but there could be higher levels of reserves that are in other forums, so we might have certain priorities in terms of from where we spend first and as the different levels of reserves and/or float is depleted, then we might start to come close to using our reserves, and as the situation persists if we cut our expenses and/or try to increase our income and perhaps some of those sources of extra funds dry up too as we deplete them with the passage of time. and then we are faced with fewer and fewer extra funds with perhaps our bitcoin being the last source of funds after we have depleted our emergency funds...

so part of the point is that there tend to be priorities in terms of how funds are spent and at which point funds can still be spent or replaced, but if an emergency goes on for longer and longer the sense of urgency of the situation can increase, but there could be some point in which all the sources of funds are depleted.. maybe in a situation in which a person is injured and/or sick and cannot work or maybe can only work a small amount, and maybe recovery is hoped for and return to work is hoped for, but does not end up happening as is hoped, even if efforts are made,.. so the longer the emergency situation persists the more that extra funds are depleted and the more likely that extra funds, such as bitcoin might end up being spent too..
so we surely do not want to get to that kind of an outcome, so

sometimes we are going to have a  variety of level of funds that can be used prior to needing to dip into our bitcoin, and some of our funds might be also considered as working capital, and we still will consider priorities in terms of which to spend first and what circumstances, and each of us are not necessarily going to come to the same conclusions regarding priorities in terms of which funds are spent first or how to manage the cutting of expenses (necessities versus wants and at which points the differing levels of emergency are reached that triggers differing spending or cuts of spending.

You have elucidated your point obviously and I would commend you on that. But I also stand to say that the level of reserved funds you described here are almost impracticable to many investors and/or Newbies.  A salary earner knows when he would see his salary and already knows the amount. This allows home to almost rotate their circle of expenditure and also place it hierarchically.

Emergency funds are all-important and a must have. Keeping enough reserve funds could save your life anyday. Before you invest, you save your reserves and you also need to save up fiats, cash at hand also.

I think you’re getting it wrong for saying that you need a emergency funds before you can start investing in Bitcoin, that statement is quite misleading. As long you have an income and you’re able to take care of your needs and expenses and pay your bills, if at the end of taking care of your expenses you have a discretionary funds you can start up your bitcoin investment using the DCA method to build up your portfolio , and you can build up your emergency fund and reserve funds gradually with in the months of starting your investments, we all know that emergency funds and reserve funds are important to sustain your portfolio. You don’t have to waste time and opportunity to invest by saving up reserve funds before investing. It’s advisable you invest as soon as you have discretionary funds to invest and accumulate more.

[FortuneFollower]

nothing is guaranteed in this life so I disagree with you when you only trading has no guarantee, because even bitcoin investment has no guarantee too, but it is more profitable and less risky than trading, trading is Very risky and it's not really that profitable compared to one long term holding.

Yeah nothing is guaranteed in this life but buying Bitcoin for a long term it’s more profitable imagine investing for like 10 to 15years on Bitcoin I believe your increase is a guarantee by now , that is why we urge people to indulge in investing rather than trading , their is a big risk and lose in trading, trading has no guarantee. New investor should really source for good information and direction so they won’t make mistakes and they should channel their mindset on buying instead of trading as to avoid risk and not making any profit.

Cycles are doing most of the work, the other part is just having patience and time to see your BTC portfolio growing up.

As well as a stable income to keep the funds for the investments coming.

[Fara Chan]

...

Yeah nothing is guaranteed in this life but buying Bitcoin for a long term it’s more profitable imagine investing for like 10 to 15years on Bitcoin I believe your increase is a guarantee by now , that is why we urge people to indulge in investing rather than trading , their is a big risk and lose in trading, trading has no guarantee. New investor should really source for good information and direction so they won’t make mistakes and they should channel their mindset on buying instead of trading as to avoid risk and not making any profit.

You don't need to urge everyone excessively to invest in Bitcoin even though what you suggest is about their own good, because in the end everyone will also choose according to their own heart and if they choose the wrong path, the risk will also be borne by themselves. But I am also not telling you to stop giving the best advice to everyone and also to new investors in Bitcoin because those who are aware of your advice will follow it very happily, but for those who don't believe in what you say, they will never listen to you.

Cycles are doing most of the work, the other part is just having patience and time to see your BTC portfolio growing up.

As well as a stable income to keep the funds for the investments coming.

Being patient to see the good cycle conditions in Bitcoin usually takes up to four years and it is also very good for those who have a high level of patience for Bitcoin investment. Because while waiting for the four-year cycle, everyone can continue to buy Bitcoin to make the number of Bitcoins in their personal wallets more, which will also be good for increasing their own portfolio.

[avp2306]

nothing is guaranteed in this life so I disagree with you when you only trading has no guarantee, because even bitcoin investment has no guarantee too, but it is more profitable and less risky than trading, trading is Very risky and it's not really that profitable compared to one long term holding.

Yeah nothing is guaranteed in this life but buying Bitcoin for a long term it’s more profitable imagine investing for like 10 to 15years on Bitcoin I believe your increase is a guarantee by now , that is why we urge people to indulge in investing rather than trading , their is a big risk and lose in trading, trading has no guarantee. New investor should really source for good information and direction so they won’t make mistakes and they should channel their mindset on buying instead of trading as to avoid risk and not making any profit.

Everything posses risk even Bitcoin and there's actually nothing safe investment that we can call, but if we do the right approach like we don't let ourselves get bothered by FUD's or short term hypes then provably that we can avoid getting FOMO then lose our investment.

10 to 15 years is somehow a good time and for sure that we could see some good changes already with that on Bitcoin especially that Bitcoin shows promising movement ever since before.

What we need to do is to be consistent and continue to believe that everything will be fine and there's good things come to us by having good patience for investing on Bitcoin. We are just in early phase on Bitcoin adoption so for sure there would be more wider acceptance will happen and I always believe that holders or early adopters will gain from this especially that we all know there's limited number of Bitcoin exist.

[Derekfunds]

I think you’re getting it wrong for saying that you need a emergency funds before you can start investing in Bitcoin, that statement is quite misleading. As long you have an income and you’re able to take care of your needs and expenses and pay your bills, if at the end of taking care of your expenses you have a discretionary funds you can start up your bitcoin investment using the DCA method to build up your portfolio , and you can build up your emergency fund and reserve funds gradually with in the months of starting your investments, we all know that emergency funds and reserve funds are important to sustain your portfolio. You don’t have to waste time and opportunity to invest by saving up reserve funds before investing. It’s advisable you invest as soon as you have discretionary funds to invest and accumulate more.

Perhaps you are the one that is twisting what the Op said, the Op didn't said we have to keep or have emergency funds before we can start investing in Bitcoin rather what the Op said was that it is very important to have emergency funds while we are investing in Bitcoin because it will help save us from trials and challenges because surely there will be trials and challenges that will come up though sometimes those trials and challenges may not be finance one. However, the Op is not misleading anyone rather what the Op said it absolute true because emergency funds is our investment backbone which we can not do without.

[ejikeme24]

You have elucidated your point obviously and I would commend you on that. But I also stand to say that the level of reserved funds you described here are almost impracticable to many investors and/or Newbies.  A salary earner knows when he would see his salary and already knows the amount. This allows home to almost rotate their circle of expenditure and also place it hierarchically.

Emergency funds are all-important and a must have. Keeping enough reserve funds could save your life anyday. Before you invest, you save your reserves and you also need to save up fiats, cash at hand also.

Your comment is very misleading. There is no need to save reserves or save cash flow before investing. You do not have to wait for anything to invest. If you delay investing to save reserves or save cash flow before investing, then you may miss out on many buying opportunities during this time. What can you do with reserve reserves or save cash flow if you do not already have any investment funds?

@ gost ms I think you're the one that is misleading the whole thing here, if you really think that there is no need to have a good cash flow before investing in Bitcoin then how did you intend to Carry out your investment plans? Seems you don't understand what cash flow is all about. Now let me explain to you briefly about what cash flow is all about, cash flow is the movement of money into and out of a business over a certain period of time, and without you having a good cash flow there's no way you can be able to carry out your investment plans, mind you cash flow and reserve fund is two different things so you don't have to consider them as One.

[POPOLUV]

You have elucidated your point obviously and I would commend you on that. But I also stand to say that the level of reserved funds you described here are almost impracticable to many investors and/or Newbies.  A salary earner knows when he would see his salary and already knows the amount. This allows home to almost rotate their circle of expenditure and also place it hierarchically.

Emergency funds are all-important and a must have. Keeping enough reserve funds could save your life anyday. Before you invest, you save your reserves and you also need to save up fiats, cash at hand also.

Your comment is very misleading. There is no need to save reserves or save cash flow before investing. You do not have to wait for anything to invest. If you delay investing to save reserves or save cash flow before investing, then you may miss out on many buying opportunities during this time. What can you do with reserve reserves or save cash flow if you do not already have any investment funds?

@ gost ms I think you're the one that is misleading the whole thing here, if you really think that there is no need to have a good cash flow before investing in Bitcoin then how did you intend to Carry out your investment plans? Seems you don't understand what cash flow is all about. Now let me explain to you briefly about what cash flow is all about, cash flow is the movement of money into and out of a business over a certain period of time, and without you having a good cash flow there's no way you can be able to carry out your investment plans, mind you cash flow and reserve fund is two different things so you don't have to consider them as One.

I really agreed and appreciate you @ejikeme24 to have indicated or pointed out the difference in cashflow for not only for Gost ms but to those that has not comprehend on wat cashflow is all about.

I want to add to what you have already said earlier before now, with steady cashflow as an investors it will make you invest more either daily, weekly or monthly and it will also make you build up your Bitcoin portfolio in  a life cycle.

[Aanuoluwatofunmi]

When investing, we should be smart when doing it. Investing the amount which is suppose to be used for paying bills doesn’t make sense,

Lose of priority is what many ran into all in the name of investing in bitcoin without knowing that everything have to come in its due time, there's nothing bad in our desperation to invest, but there must be adequate provisions made for all before starting, so that we don't run into unforeseen circumstances which may not warrant us to further continue with our investment or hodl, because related issues like this has been part of why some could hastily sell at loss because they have misappropriate their investment fund right from the start.

Therefore, financial management is the most crucial part that must be applied when we invest

We need to develop a goo ethical behavior in financial management, also, we have to manage our emotions well, so that it does not lead us to taking unnecessary actions, also, having a disciplined financial asset management is important, because we are going to be more conscious of every decision and steps taken as being a deliberate action and not what we may not have planned for, before taking it.

[Tonimez]

When investing, we should be smart when doing it. Investing the amount which is suppose to be used for paying bills doesn’t make sense,

Lose of priority is what many ran into all in the name of investing in bitcoin without knowing that everything have to come in its due time, there's nothing bad in our desperation to invest, but there must be adequate provisions made for all before starting, so that we don't run into unforeseen circumstances which may not warrant us to further continue with our investment or hodl, because related issues like this has been part of why some could hastily sell at loss because they have misappropriate their investment fund right from the start.

Therefore, financial management is the most crucial part that must be applied when we invest

We need to develop a goo ethical behavior in financial management, also, we have to manage our emotions well, so that it does not lead us to taking unnecessary actions, also, having a disciplined financial asset management is important, because we are going to be more conscious of every decision and steps taken as being a deliberate action and not what we may not have planned for, before taking it.

Financial management is very crucial and I also believe that that has been the sermon here from a very long time. Investing above your capacity in the name of aggressive investment has a repercussion which could render you coinless within a space of time. Some people have argued that in the event of sudden unplanned huge income, that you channel the excess to bitcoin investment beyond your usual discretionary DCA approach and this is what they refer to as lump-sum. Investing in that capacity is good but before you do that, there should be a corresponding increase in your backup and emergency funds also. This would enable you to cushion the effects of whatever may lead you into selling off your coins before maturity or at least completing above one cycle.

[Miles2006]

I think you’re getting it wrong for saying that you need a emergency funds before you can start investing in Bitcoin, that statement is quite misleading. As long you have an income and you’re able to take care of your needs and expenses and pay your bills, if at the end of taking care of your expenses you have a discretionary funds you can start up your bitcoin investment using the DCA method to build up your portfolio , and you can build up your emergency fund and reserve funds gradually with in the months of starting your investments, we all know that emergency funds and reserve funds are important to sustain your portfolio. You don’t have to waste time and opportunity to invest by saving up reserve funds before investing. It’s advisable you invest as soon as you have discretionary funds to invest and accumulate more.

Perhaps you are the one that is twisting what the Op said, the Op didn't said we have to keep or have emergency funds before we can start investing in Bitcoin rather what the Op said was that it is very important to have emergency funds while we are investing in Bitcoin because it will help save us from trials and challenges because surely there will be trials and challenges that will come up though sometimes those trials and challenges may not be finance one. However, the Op is not misleading anyone rather what the Op said it absolute true because emergency funds is our investment backbone which we can not do without.

In summary we’re all stating the same fact concerning emergency funds and reserve funds, there’s a difference between both funds, creating an emergency funds first before investing or after investing is not the problem but so long as there’s an opportunity provided to save for emergency funds then it’s all good. I will always advise starting up from somewhere and these funds mentioned should never stand as a barrier, for someone who know the important of saving up an emergency fund will never joke with it. I don’t get how other investors go about investing using the discretionary income without building an emergency fund alongside, although everyone have there different decision when it comes to investing meanwhile some might choose a specific day meant to build the backup fund alone will accumulate bitcoin separately, if there’s any need diving the funds why not create a monthly budget with each percentage involving the amount going out on bitcoin accumulation, emergency funds etc, it’s all about the amount available and planning not the other way round.

[Olatundespo]

When investing, we should be smart when doing it. Investing the amount which is suppose to be used for paying bills doesn’t make sense,

Lose of priority is what many ran into all in the name of investing in bitcoin without knowing that everything have to come in its due time, there's nothing bad in our desperation to invest, but there must be adequate provisions made for all before starting, so that we don't run into unforeseen circumstances which may not warrant us to further continue with our investment or hodl, because related issues like this has been part of why some could hastily sell at loss because they have misappropriate their investment fund right from the start.

Therefore, financial management is the most crucial part that must be applied when we invest

We need to develop a goo ethical behavior in financial management, also, we have to manage our emotions well, so that it does not lead us to taking unnecessary actions, also, having a disciplined financial asset management is important, because we are going to be more conscious of every decision and steps taken as being a deliberate action and not what we may not have planned for, before taking it.

Financial management is very crucial and I also believe that that has been the sermon here from a very long time. Investing above your capacity in the name of aggressive investment has a repercussion which could render you coinless within a space of time. Some people have argued that in the event of sudden unplanned huge income, that you channel the excess to bitcoin investment beyond your usual discretionary DCA approach and this is what they refer to as lump-sum. Investing in that capacity is good but before you do that, there should be a corresponding increase in your backup and emergency funds also. This would enable you to cushion the effects of whatever may lead you into selling off your coins before maturity or at least completing above one cycle.

It is not clear what you mean by beyond your means. If you do not have enough money, then you will not have the consideration of buying and you may not even imagine investing. So you should not misguide others about investing. There will be a mixture of emotions and reality among investors and sometimes because of the high level of emotions among them they are attracted to lump sum investments and if they are through their own floating money they can be ahead in getting Bitcoin holdings.
It will not be easy for an investor to follow the financial management correctly in the beginning because they decide to buy at different prices and market conditions. In the meantime if those investors get dips events they can make aggressive buy from floating cash funds. Being afraid of investing means that you do not know how to use your money properly. Financial management in investing is to continue accumulation Bitcoin with discretionary income every week or month and increasing the amount of Bitcoin pile by aggressively buying during the expected events.