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Yes sir, now I am starting to understand why waiting to invest in Bitcoin was not the right thing to do. Because I just realized that the mistake of waiting or delaying investing in Bitcoin until the price goes down is not very good. Because it could be that the price of bitcoin continues to rise and I won't have the opportunity to buy it. Maybe from now on I will start buying bitcoin with the DCA strategy only. Because all this time I was still fixated on the decline in Bitcoin prices when I wanted to buy it. And after thinking more deeply, your opinion about learning Bitcoin while investing, is very correct. Because the knowledge gained can be directly applied to investment. In essence, my thoughts and perspective are very enlightened here.
Yes... And if you are actually thinking about bitcoin for the long term, such as 4-10 years or longer, then your average cost per BTC will not matter so much because you are not planning on selling any time soon. At the same time, maybe after 6 months, 1 year or 2 years, you might get to a point in which you have already accumulated a decent amount of BTC, and you might start to consider if you might want to attempt to be more strategic in regards to when you buy.. but even sometimes those people who are overly trying to be strategic about their BTC buys, they may well end up with way less BTC because they are spending more time waiting rather than actually buying. You have to figure out what works for you, and surely there is no turning back the clock if you might have had some opportunities to buy BTC, but if the BTC price does a step ladder kind of a move upwardly, and it does not come back down and then you might be thinking that maybe you should have had bought some rather than waiting..
and sure, you do not have to buy with everything that you have, yet even waiting with some of your value (and holding it aside for potential dips) is a choice that may or may not be a good idea.. but that also may well depend upon your own situation and sense of satisfaction with the amounts of your buys.
Even our hypothetical poor person given above, many of the times he ONLY has $100 per month to be able to buy bitcoin, and that is if his discretionary comes in consistently in the regular way, but he is also going to have months that he has extra and other months he does not have enough, so those are reasons to make sure that his reserves and his floats are in a good place (and yeah, of course, I am presuming the emergency funds is also there, but the emergency fund is not being used for the purposes of filling in the variance of income/expenses from month to month). .. so if we assume the guy has all of his finances in order in regards to the reserve and float, that still may well leave him with the $100 per month and questions about if he should use all of every month for buying BTC or maybe he might want to hold some in reserves.. but even if he had ONLY been buying bitcoin for a year or two, then he might have had only bought $1,200 to $2,400 worth of BTC during that time, so there surely still might not be enough BTC stacked up for him to really feel comfortable in waiting, and it might not even matter so much about the actual BTC price, and maybe he has to wait until he gets to around 4 years or more investing into BTC when he had invested $4,800 or more into BTC when he starts to feel that maybe he can start to become a bit more strategic regarding when to make his BTC purchases... .
and another thing is that investing $4,800 over 4 years, some of those purchases may well be more profitable than others, and maybe it is not ONLY the earliest purchases that are the most profitable, but there might be some recent purchases that are not very profitable, but having all of that in bitcoin, then at least the BTC is there, so that in the next 4 years, you have whatever you had during the first 4 years that had been able to grow completely (as long as you were not fucking around and withdrawing any of it) plus you wil end up having whatever new value that you ended up putting into bitcoin after the second 4 years, so maybe there will be various points in which you are able to increase your disposable income during that time, so maybe after 8 years, you might have more than $9,600 invested into bitcoin.. depending on your own abilities and/or luck in regards to your financial situation and your managing of your circumstances. including managing your bitcoin holdings and including perhaps having some appreciation that it could well end up being that some of your abilities to focus on accumulating BTC in your earlier years ended up giving you more options later down the road, so long as you did not end up losing whatever coins you had accumulated.
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the only way it could be possible to increase your level of discretionary is having a higher paying job to be able to increase your investment strategy just as I assumed earlier.
That is a bit misleading to say it like that... but yeah, there are various ways to increase your discretionary income by increasing your income, but you can also cut your expenses.. and sure there might be some times that you increase your income, but your expenses might go up too.. as part of the increasing of the income, there could be some costs with whatever ways you figure that you are going to be increasing your income... and so discretionary income is the amount of money that is left over after accounting for expenses.. and .. surely some expenses can also be deferred, even if they might not go away or reduced.. or maybe some expenses have costs for their deferral (such as penalties and interest), and there still could be some value in deferring expenses that might create additional expenses in deferring them... Maybe if you have a job, and there might be opportunties to work extra hours, and they might not even pay more, but they still result in extra pay.. maybe some jobs off of the books, might come up too for someone who is already involved in carrying out certain kinds of work and hearing about other opportunities.
and so they are in a position in which they have to try to figure out if they are able to and/or how to increase their disposable income, even if it is merely getting up to a point that they are able to start to set aside $10 per month or some other reasonable amount - and to be able to set such an amount aside for 4-10 years or longer (if they are wanting to take it out of cash and put it into bitcoin), so they are not going to necessarily be disadvantaged because of their being so poor as long as once they decide to commit some quantity to bitcoin,
yea they might not be disadvantaged by there poor investment in bitcoin but that is a very low strategy of investment. investing $10 per month can be as less as No coiner.
They are not a no coiner if they are buying, even if it is small amounts, and from my definition they might not even be a low coiner, if they are buying $10 per month but it is as much as they can afford.. and they are being as aggressive as they are able to be.
but surely it depends on a persons ability to invest base on his discretion or floats and I can't call it a poor or wrong approach since he is surely not overdoing it.
We cannot assume that merely investing $10 per month is NOT overdoing it. Of course, if they need that $10 per month for their expenses, then they might be overdoing it, because the $10 should be coming from discretionary income and not from money that they actually need.
but people should know that as time goes on, so do bitcoin increase in value and a point will come when the fraction you buy will be some numbers of SATs which may amount to nothing and may not increase in value as though. because your level of bitcoin growth depends on the level of bitcoin in your possession which you where fortunate to have afforded in a low price. for example a person that Bought 1 bitcoin at $10k per each around 2019, and a person that Baugh same bitcoin in 2024 at 1 bitcoin $60k you will see that as of today, the earliest buyer who bought at $10k is advantaged of about $50k profit, while a new investor who baught 1 bitcoin at $60k now will have to wait for long to be able to make a profit of X5 or X10as compeard to the earlier investor. so increasing our Level of accumulation help us to be advantageous.
That is true.. and also maybe the person who bought in 2019 was able to put together $10k of cash in order to invest into bitcoin, and the person in 2024 might even be in a better position to put together more cash, but he cannot put together $60k, and he is ONLY able to put together $20k, so a similarly situated guy in 2024 ends up only able to buy 0.3 BTC rather than being able to buy a whole BTC... not that it matters very much, because we can ONLY buy what we are able to buy, and surely there are fewer and fewer folks who are ever going to be able to accumulate a whole BTC, so they have to target some amount of BTC (sats) that they are able to target within their own budget, and maybe even after 10-20 years, they still might ONLY be able to accumulate a few million satoshis... 50 million satoshis is half of a BTC.
though I know that buying earlier does not guarantee anything because you@JJG once said that even if we buy earlier, the price of bitcoin may fall and new investors maybe advantaged to buy more. but that doesn't mean we can't take advantage of buying more now. because some opportunities may never be goten after they have surely pass that stage. I know we all are investing in what we can afford to lose or Investing in a way we are surely not overdoing it. but I think there is a need to take advantage of bitcoin dip in price by increasing our level of accumulation, to be able to make more profit in the future.
The extent to which you employ DCA, buy dips and/or lump sum methods for BTC accumulation is going to vary based on your individual factors, and truly including how long you have been into bitcoin accumulation, which means how many BTC have you already accumulated and what might be your BTC accumulation targets. It is not necessarily obvious what might be the best choices, even though each of us should be trying our best to figure out what works for our own situation.
they recognize and appreciate that they are putting that amount aside (and out of reach) for 4-10 years or longer, which likely means that they have to build their emergency fund at the same time and even get to a point that they have reserves and a float.. which largely means that they might have to struggle to figure out if and how they are able to increase their disposable income and how much they are able to put away.. and none of this is easy for anyone who is living on the edge of barely having enough of an income to cover all expenses, and if they are never able to get to a poiont that they are able to have a bit extra to put into bitcoin, then they likely will not be able to invest into bitcoin.. which disposable income happens to be a requirement for being able to invest in bitcoin. and the only other way to accomplish it, would be to receive a lump sum - such as robbing a bank (not promoting the commission of crimes) (which is also like a form of disposable income - because it ends up being extra beyond the needs for expenses).
surly lump sum is the best way to invest for such person who doesn't figure out a way of investing regularly due to lack of inregular fund to be able to maintain his DCA strategy or monthly $10 as you guest. if he can invest lump sum once in a month with a tangible amount and also have a little discretion fund to support his investment, it will be better.
Why would lump sum become "the best?" Surely if someone has a lump sum in front of them, they can still choose within the three categories of DCA, lump sum and buying on dips in order to figure out how to treat that lump sum amount that they have in front of them... and if someone might have $100 per week that they are usually investing based on their discretionary income, but then all of a sudden they get a $1k bonus, so then they can completely treat that $1k as part of their DCA.. they just buy right away, and maybe that is considered lump sum or it is considered to be just extra money that automatically goes into BTC, whether it is part of the regular income or it happens to be some extra income that happens to come in... ON the other hand, the extra amount could trigger some consideration regarding whether to invest all of it right away, to hold some for buying on dips and or to spread it out in order to include it within the upcoming DCA amounts, perhaps doubling the DCA amounts for the next 10 weeks or maybe even adding 20% to the DCA amounts for the next 50 weeks, and maybe how to treat the extra amount might have to do with how much BTC the person already has, but they might want to try to predict the direction of the BTC price, and so if they are thinking that the price might be coming down or staying flat, they might feel some advantage in spreading out their DCA or strategizing to buy on dips, however, if they are feeling particularly bullish, they might error on the side of buying most if not all of it right away... . And, the guy might end up being correct or not in terms of whatever strategy or strategies he chose to employ for the extra amount of dollars that he had ended up receiving.
Taking an aggressive approach in Bitcoin investment can be risky if you are not well informed or confident in your knowledge. It's important to understand what you are doing and have a solid understanding of the market. There are times when an aggressive approach can be beneficial, especially if you have enough knowledge and confidence in the long term potential of your Bitcoin investment. It's all about finding the right balance between risk and reward. An aggressive approach in Bitcoin can be beneficial, especially if you have a higher paying job that allows you to increase your investment strategy.
Levels of aggressiveness should not be measured in absolute terms, but instead within the amount of discretionary income that you have, and so yeah a person with higher income could buy more BTC but that does not necessarily make him more aggressive than someone with lower income and who might be using all of his discretionary income to buy BTC. Maybe we can take some extreme examples.
One guy has $100 per month of discretionary income and he uses all of it to buy BTC.. This guy is quite aggressive and maybe even bordering on over aggressiveness (especially if he miscalculates his expenses or if he does not have reserves in place).
Another guy has $2k per month of discretionary income and he invests around $100 per week into bitcoin, which might be considered moderate and maybe even whimpy.
Having specialized knowledge about Bitcoin may not be necessary, having a stable source of income can provide you with the means to invest more. It's important to consider your financial situation and make your own decision. As long as you're able to manage your investments responsibly, an aggressive approach can potentially yield positive results.
This part is true. The more organized that you are, the more aggressive you can afford to be... again within the terms of your own discretionary income, and you do not even need a completely stable source of income as long as you have your various back up funds in place... .but you will need some kind of a income that is coming in, even if it might not be stable. Frequently we had described examples of guys who have varying income levels and varying expenses, so even if his income has a lot of variance, he might still be able to balance out those income/expense matters in order to still be aggressive within his own boundaries.
