Topic: Buy the DIP, and HODL! - page 12. (Read 138390 times)

You are right, I don't think either that any investor will be happy, allowing his funds to just go like that after his death without pass it on to his next of kin . As at this stage of your life, you are suppose to have gotten someone which you can really trust to pass your inheritance and if you don't,it means you don't trust yourself either or you are not telling yourself the truth,no matter how distance or close you can be to your family members, there most be someone which you will trust and desire to be your next of kin, if you have not gotten your own family, which I believe that even among your husband/wife and children,you still have pick someone, for me I think, it is best you chose from your family, introduce and teach the person about Bitcoin,and assist him or her to also be investing in Bitcoin, so that he will be happy and do as you wish when you need his or her help in future(mainly health related issues) or after death, there will be no problems so that your instructions on your Bitcoin investment will be carried out properly.

There is some level of caution someone should exert when dispensing information about his Assets in general. Now making reference to my Bitcoin portfolio, I don't think it's wise to let my siblings know the worth of my wallet both the one in the exchange and non-custodial wallet and this is how I did it.

For my exchange(binance) I gave my youngest sister my logins to the account, then I activated two factor authentication which means no one can gain access to it unless authorized by me and In the event of my exit before getting married, my youngest sister who has my details has been instructed in his she can can go ahead to recover my email with my SIM card and have access to the exchange.

For my non-custodial wallet, she knows where it's stored in my house, but she cannot have access to it until I'm no more because I've safeguarded it very well and no one access that environment anyhow. I also trust her not to gain undue access to the seed phrases without my consent.

It's also important that you don't tell much of your family members about your logins, but enlighten them on it's availability with your most trusted person and In the event of your demise, everybody would be involved and follow your direction on sharing formula, so the person with the details cannot achieve everything.

I believe when people know too much about something, they get unduly attached and desperate for it.

You are right that we should have a specific amount from our discretionary income to buy bitcoin weekly but that doesn't depend on our power for things to always go out as planned in the long run. This is because your expenses can vary from month to month. I might have a higher expenses this week/months which is a most for me to take care of. For instance, increase in the cost of commodities or an additional relative on visitation that is under your roof and your responsibility to take care of.

You have to take care of such expenses which will definitely make your discretionary income to be smaller than the normal amount it use to be. In this situation, you have to reduce the amount of money you will use to buy bitcoin based on the amount available after taking care of thw extra expenses in other for you to keep your bitcoin accumulation ongoing. If you want to force yourself to use that exact amount to buy bitcoin that you have been using, you will end up not using only your discretionary income.

Also is not all the time that your weekly/monthly expenses will exceed the initial amount or reach the initial amount. During when your expenses is lesser than thw initial amount, you can increase the amount you will use to DCA because you have a higher discretionary income compared to the normal amount. This is why we must invest based on our own financial case scenario playing around us at the moment so that we don't make mistakes that will jeopardize with our effort to keep our bitcoin accumulation ongoing overtime.

If your weekly income is $100 and your expenses is $65, if you do invest $25 into bitcoin weekly and the next week, your expenses increased to $78, you cannot buy bitcoin of $25 anymore, but rather at a price of $20, because you don't have $25 left anymore. Even buying bitcoin for $20 whereby you have only $2 left is aggressive buying for that week.

Leftover money can also be called discretionary income, on the other hand, because it is the money that you are left with after you have sorted out your daily expenses. It is always advisable when investing in bitcoin that we should use leftover money or the money that we will not need for 4-10 years or more so that we will always be in the position of solving our daily expenses, which will allow us to hold our bitcoin for a long time. It's not compulsory that you must have a fixed amount of money to invest in bitcoin weekly or monthly so that you will not put yourself in difficult situations to meet up with the fixed amount of money to invest in bitcoin every time. Just stick with what you discretionary income could allow you to invest with every week or month.

Everything you've said here looked fine except the bolded text. You don't have to use leftover money after taking care of your backup funds to invest in Bitcoin, else you might be wacky in your accumulation. You must have a fixed amount you map out periodically from your discretionary income to invest into Bitcoin. It would help you remain committed and  focused in your accumulation journey and not leaving it to chances and mercy of having a leftover.

Being precise about our accumulation amount helps us manage our cashflow better. It also helps the investor in the optimal utilisation of his discretionary income since he knows the specific amounts that goes into his Bitcoin accumulation and other variances of backup funds.  He is compelled to be diligent utilizing funds when they are available.

Life is filled with so many uncertainty and I believe that's why emergency funds are being set up atleast to tackle some of those situations because if you as an investor fail to have such majors and some of the unplanned issues of life hits you, you will definitely have no other options but to temper with your Bitcoin savings which is the first steps of not being consistent and stable with your Bitcoin investment.

In addition to what you said, discretionary income is not just only to invest alone in a long-term. Discretionary income is also used to set up your several back up funds like the emergency funds, reserve funds and float for more flexibility in your bitcoin long-term accommodation journey. This is why if you don't have an emergency funds before you want to start your bitcoin investment, you can start right away because you have a discretionary income.

You divide your discretionary income into two parts, use one for your weekly DCA purchase and use the other part to start building your emergency funds for at least three months because emergency funds is a back up funds to your bitcoin investment.

Backing up ones wallet and passing instructions or information to heir or next of kin is not actually a bad idea and just like you said there are things we can not be sure or certain about because we are just human but the problem is sometimes human being can be unpredictable, though there are some heir or next of kin that no matter what they saw in your wallet they can never move or tempted to eliminate or still what is inside because of the ethics they have but some too even with their ethics they will look for a way to do something funny. However, the fact still remains that if you didn't pass the necessary information or instructions to the heir or next of kin and peradventure something bad happens to the investor off course the asset will be loss but it will be better if an heir take it than for it to waste.

You missed the point which I was trying to say. What is practice till now is that one a person dies his left over money and assets are distributed according to his will, in case there is no will different countries have laws in place for that. Like where I live, if a person dies his property is distributed to his parents and family (wife/children) in case the deceased is married or to his parents and brothers/sisters in case deceased is single.
While this won't be the case with Bitcoin. One has to make sure he hands over keys and necessary details to person he trust most in his life, so that in case he dies his loved one can takeover Bitcoins and they are not lost forever on the Bitcoin blockchain. To my knowledge there is no LAW in place in my country that defines how Bitcoins will be distributed to next of kin.
Why taking a risk, why not tell your next of kin about details of your Bitcoins in your life.

In some capacity we have the opportunity to reach the maximum purchase level in bitcoin and may consider the DCA pattern much better because it will provide a much greater opportunity to collect bitcoin. In living life is not just about investment and there are still many other needs that may need to be prepared so that we must have the ability to divide. People who have a view to achieving financial freedom will definitely make adjustments and how investments must be made consistently without ignoring other needs and this is where a strategy is needed so that it can be more optimal.

To achieve all that is not about how much we can buy, but how the level of consistency can be maintained properly and many people are starting to realize the process and I am sure all of us have a way to make that adjustment. Any strategy is good as long as it is done correctly because bitcoin will provide a much better life change if invested consistently.

Thank you for your clarification and addition @rachael9385, I must said that your assertion about emergency fund is well noted. Emergency fund is not just a fund for basic needs but a fund set aside to hand some unforseen financial responsibilities.
Bitcoin is a very delicate investment that require patience and financial stability so having emergency fund is very important to every successful investor that aim to make a profitable investment in Bitcoin because it will help investors to overcome any uncertainty that may compel them to sell their Bitcoin asset for the purpose sourcing for fund to solve unforseen financial challenges.

By determining the strategy of accumulation Bitcoin you can holding Bitcoin in the long term and there should be no doubt about it. For example, if you are a new investor you will have investment fear since Bitcoin is a volatile and valuable asset. You should not have the idea that the value of Bitcoin will only increase. To start Bitcoin, you should refrain from adopting the traditional strategy and plan a continuous deposit in the DCA strategy. The traditional decision is to be flexible in accumulating Bitcoin within yourself which does not give you the importance of accumulation regularly. To accumulate Bitcoin, you have to have a well-defined and important job. This is an important job because if you work for a long time in an organization at the end of the employment period, it provides you with retirement benefits so that you can be financially independent.

Accumulating Bitcoin in the continuous DCA strategy from discretionary income you will get a decent holding and financial freedom in the long term. In conclusion if you can accumulate Bitcoin with a suitable investment strategy like DCA, it may be the best strategy for you. Ultimately it is clear that your accumulation strategy determines the long-term viability of the investment.

Bitcoin is often seen as one of the simplest assets to invest on, especially when compared to traditional assets like gold, real estate, and stocks and bonds etc. Its accessibility and the ability to start with small amounts make it appealing for many investors. Additionally the digital nature of bitcoin allows for quick transactions and easy management which is a big advantage. But having a steady source of income and discretionary income is vital for investing in bitcoin, it allows you to invest without the pressure of needing immediate returns which can be especially important given bitcoin volatility. This way you can hold your investment for the long term without worrying about daily expenses.  Another thing is believing in bitcoin growth potential really does play a significant role in how consistently you accumulate it. When you commit to investing regularly, you're more likely to benefit from long-term gains. That commitment can make all the difference in your investment journey.

You are right, and you have made @bestcandy understand the purpose of emergency funds. But I add some additional hints to the points you have already made. 
First, not everything is an emergency issue (like buying a house or buying a car and other necessary things we need daily are not emergency issues). Emergency cases are unexpected things that happen when you do not expect them. 
I think emergency cases are things that may happen, and if we do not look into them and solve them immediately, we might be at a big loss or high risk. And I believe we know some of the emergency cases, i.e., medical issues, job loss, and natural disasters (which we do not wish for).
Emergency funds should not be used for basic needs (just like you have highlighted already). Basic needs are what an investor needs to take care of before purchasing his regular amount in Bitcoin (through the DCA method).
Before going into an investment, you need to make sure you have your basic needs and other expenses covered, but you only need to take from your emergency funds when there is a crisis, medical attention, or disaster. Do not forget to use spare (leftover) money to invest in Bitcoin. 

being indecisive leads to procrastination which is serious threat to anyone that hopes on investing and getting good returns from his investment because an indecisive person will always look for excuses on why he could not buy yesterday, and the reason why today is not also a good opportunity to buy. for him, the best time to buy is always tomorrow and when the tomorrow finally comes, he looks for another Tomorow and keeps doing it while never investing at all.

information is readily available for every investor to grab across the net which will help one invest the right way and do so using the strategy that works well for him. a larger percentage of the people that are not investing most especially the ones that knows about bitcoin but due to one or two reasons are just being skeptical about investing are not doing so because they are not informed or that they are misinformed, it is mainly as a result of procrastination and the fact that some are waiting for the market to come really down to a certain range before they will eventually buy and because they market keeps going up, it now seems to them that investing at this time is too late.

excuses, ignorant, procrastination and refusal to facts that have been used and proven to be accurate by experienced investor doesn't translate into any positive returns. if by the end of the year bitcoin will get to $200k, whatever view any prospective investor holds doesn't even affect the market since they don't have what it takes to influence the market, the big players and policy makers whose decision has effect on the market aren't even being indecisive and have remained bullish in their bitcoin investment, how much more someone that is just at the periphery on his bitcoin accumulation phase?

Diversification when your Bitcoin investment is fueled with quack aggressiveness is a very big mistake newbies are lured to make. Before you can even think of gambling some part of your discretionary income on altcoins or shitcoins, you should make sure your aggressiveness in Bitcoin accumulation is something you're proud of and you've accumulated a decent amount of BTC.

I don't support a newbie to even distract himself by meddling into any other things but Bitcoin. Until you have accumulated a descent stash of BTC, entertaining that gamble might pose a threat to your investment. A newbie, especially those who are entirely new to investing have a lot to learn in Bitcoin accumulation like setting some part of their discretionary income as emergency funds and other variances of backup funds and striving to reach the maturity of being consistent and committed with your Bitcoin purchases and may lead to improper management of your cashflow.

Your accumulation strategy does not determine the longevity of your investment, instead it's your discipline, determination and dedication that sustains your portfolio. The goal is to accumulate more stashes of Bitcoin, so your accumulation strategy does not matter as long as you're continually buying Bitcoin with your discretionary income and accumulation target in mind without tampering with your portfolio.

Although I'll not advise a newbie to wait for the dip, a newbie should start accumulating Bitcoin straight up by lump summing or DCA as his financial strength permits and plan to continue increasing their portfolio. Or better if more funds are available, the newbie can choose to lump sum and follow up with DCA to further increase his portfolio.

Yes, DCA or lump sum is just a purchasing technique, so that we can adjust our financial situation when we want to invest in bitcoin. So this has nothing to do with how long someone invests in bitcoin. Because if we talk about the duration of someone's investment in bitcoin, this will definitely be determined before starting to invest or before buying bitcoin. Because bitcoin investors in general, before starting to invest, they have thought about how many years they will invest their money in bitcoin. Then after that they start looking for a purchasing method that is suitable and suits their tastes, such as DCA or Lump sum. Because basically there are also bitcoin investors who use the DCA technique but they are short-term investors and there are also those who use the lump sum technique but they are long-term investors. However, if we look at current trends, the DCA technique is widely used by investors in bitcoin to invest in the long term. Because this method gives us lots of opportunities to be able to invest in Bitcoin to be more organized, even though our finances are not very large. So that's why DCA is widely used by many long-term investors in bitcoin. And because of that, I can conclude that what makes someone a long-term investor in bitcoin is not due to their purchasing technique, but rather because of the intentions they have planted before starting to invest.

I don't see the need why you guys are arguing over nothing pahaps this statement has been addressed by JJG in the comments above but  for the benefits of doubt I will still trow more light to it, surely even though this image provided by Pi-network314159 lacks more clearity in term of his way of describing the rich and the poor investment strategy or even as it is a fable video, but I see some sense to his narration. You made you point clear in the paragraph I bolded @Bariku1 which talks about "consistency"  and of which I think the moral of that video is all about consistency. If you look closely in that video, you will notice that the Tortise was consistent more than the rabbit, even though the rabbit was more opportuned than the Tortise, although the fast move made by the rabbit at first instance look like it made a large investment and later slow down. If it was consistent as it was when it started the race he may have won. So surely sometimes you don't interpret things the way you see them, you should be able to understand things beyond and or think differently and perhaps you will surely understand the message it passes I.e "Fable" but the message is important because consistency in  this case does not only apply to human but also to animal.

What you really need at first is your discretionary income then emergency fund can come later because it is through your discretionary income you can accumulating Bitcoin with and at first your focus shouldn't be on the profit yet unless you are just trading which is not even advisable to think about rather your focus should be how much bitcoin you will be able to accumulate in a long run. Both the lump sum strategy of accumulating Bitcoin and the DCA strategy are all good you can also lump sum when probably an unexpected money comes to you or maybe you won a huge amount on lottery but the reason why the DCA strategy is more adopted is because it gives you the opportunity of accumulating Bitcoin gradually either weekly or monthly regardless of the bitcoin price and keep hodling for long probably a year range of 4-10 years and more.

I know you are still learning about bitcoin, but I want you to understand that an emergency fund is not meant to solve your basic needs. An emergency fund is basically meant to solve your unexpected problems anytime they arise. For instance, if you are accumulating bitcoin and suddenly your car broke down on your way to your workplace, since the problem is not planned for and is an unexpected problem, you will depend on your emergency fund you set aside to get your car sorted out so that it will enable you to be more productive.