Topic: Buy the DIP, and HODL! - page 267. (Read 136374 times)

It's a very big risk you are taking there by investing your 100% of your income. Even if your salary date is very close I still encourage you to go all 100% in with your income. What if something happens along the line and your salary is a bit delayed from the usual schedule. You know whatever that involves human can experience some setback at one point or the other. But to be on the safer side, you can go in with at least 70% of it and hold on to the remaining 30%, if the salary comes as you were expecting then you with the 30% you set aside. This is done as a precaution should in case there is a little delay of your salary payment for let's say few days or a week. If the salary didn't come immediately as expected, you will still have your 30% to cover your expenses. This way your daily life won't be affected.

Well even if loan, loans are of different capacity, loan to be put into BTC can't be more than you can pay because even your monthly earnings into BTC have to be at certain low % so you can carry-on daily... Taking loan within amount that pay back would not be a kind of adverse threat on your daily living can do(calculated loan+risk) .. Knowing very well that BTC is just abit glorious than football bettings...

No one invests 100% against income.Most of the money you have to spend to meeting your family expenses is in the inflation market so at most 15%-20% you can realistically think of investing. It is better to give you a factual opinion. Besides, you must keep an emergency fund of 3-6 months of cash flow for your emergency measures. By taking practical steps in investing in bitcoin you can reap the benefits. Most of the investors are forced to withdraw their investments midway because they do not invest according to their income. Because they are very indifferent about emergency fund. Long-term management is a fundamental element for you when it comes to bitcoin investing. Many discussion this a lot because of one of the fundamental elements of emergency funds for bitcoin holding. It is important to maintain the trend of continuing DCA method and long-term bitcoins for the real realization of your investment.

In this way you have to invest and you can also add some information, such as providing money in case of any emergency, it is necessary to have some emergency funds. Invest only the maximum amount you can afford to lose in Bitcoin, as it is best to invest according to your ability to lose. So it is most important to use enough steps to keep yourself calm, invest repeatedly from the accumulated money and this is the DCA method.  Investing in the DCA approach can be the most beneficial.

Investing 100% of your income is extremely risky. You may need money at any time. You must keep some amount of cash with you to face any danger. Moreover, if you do not invest in Bitcoin for a long time, the chances of earning from it are very low. So you must invest 20 to 30% of your income so that you do not have to use money from Bitcoin if you need anything in your daily life and do not withdraw money from Bitcoin to face any danger. Your goal should be not to keep and sell bitcoins, to invest using the DCA method until you get the expected amount of money and hold it for a long time, later you will see that you are able to make more money than you expected.

I believe one of the reasons to why people often fail to strike a balance between whimpy and aggressive Bitcoin accumulation is often lack of organization and experience, because these two factors are key towards where to draw the line when accumulating bitcoin.
The more one understands his current financial status, investment goals as well as risk tolerance, the easier it becomes for one to come to the realization of how aggressive one should be with his investment.

Gaining experience from previous occurrences and decisions made when managing one's investments and finances often helps one to know exactly when and how to make more informed decisions and also avoid making the reckless ones.
There are potential risks involved associated with Investing in bitcoin, such as high volatility and risk of losing money, not truly acknowledging and understanding these risks and only looking at the possibilities of making good profits off ones investment could often result to investing over aggressively as well as clouding one's judgement from more balanced and informed decisions regarding one's investments.

It's very good to be optimistic and excited about Bitcoin's potential for profitability and this excitement could often lead to being too aggressive so it's very important to be able to balance the aggressiveness, and having and always being willing to always make an adjustment in your preset or manual Bitcoin buys is key towards ensuring a very consistent accumulation strategy. Although sometimes it's really not about how consistent one is with his accumulation but also what financial state it keeps you afterwards, being consistent in your bitcoin accumulation is very good but when you start to notice that whenever you invest, you often run out of money to take care of other expenses, which often leads to selling of some portion of ones bitcoin when not intended.
At this point one should know that its time to make some adjustments and also make the necessary adjustments to avoid future occurrences of such scenarios.

The importance of finding a balance between being too whimpy with one's investments and being too aggressive can never be overemphasized, because being too cautious when investing could cause one to hold back on certain opportunities which could also result to missing out on potential gains.
While being too aggressive with one's accumulation often leads to being financially strained or being forced to sell of portions of one's Bitcoin at an unfavorable market state, such as a DIP. These are extremes that should balanced in other to ensure a healthy investment.

Again, about Automating investments, such as the DCA. I view it to be very helpful when trying to maintain a consistent Bitcoin accumulation strategy and also helps one to avoid making some emotional decisions that could've put the investment in jeopardy. By regularly investing an amount that doesn't leave you financially strained at the end of the day could really help to reduce and minimise the impact of the market's volatility.
And also frequently reviewing and making necessary adjustments when and where needed helps one stay on track with their investment goals and most important, helps one to also adapt to changing market conditions. This is often to strike a balance and to also make that one isn't being too sluggish or too aggressive with their investment.

Perfection is only but an illusion, an illusion that most people try so hard to make realistic, which could be really harmful and leads to unrealistic expectations, and like we know, Disappointments are often caused my too much expectations, especially when they're unrealistic, better to focus on progress and self development rather than perfection.

Making one's approach and investment to align with their individual circumstances as well as being flexible enough to detect and make adjustments when and where necessary could be considered to be even more healthier than striving and aiming for perfection. Realizing that there can be no perfect technique or approach but instead acknowledging the fact that in order to grow and gain experience, mistakes and failures are inevitable part of the process is very essential, and also very important, one should also learn to take full responsibility for those actions.

Having an emergency funds either in the form of fiat or dollar play a vital role in our holdings expecially as a long-term investor,  because one not having emergency funds he or she can use to take care of their expenses while they are holding , is same as taken their investment as their  emergency funds, which may lead to the act of regular taken of profits Inorder to cover some certain expenses due to not having some emergency funds to play it's role .

Such act may only lead to one tampering with the growth of his investment , and same time reducing the potential of holding in the yielding something nice as your ROI. Because emergency don't only help in covering expenses alone , but also help us not to depend on our investment whenever we have any expenses, which may lead to us holding our coins for long.

I seem to understand you on this matter, a person that already has a well built emergency funds or cash flow before going into bitcoin can easily be more aggressive in accummulating bitcoin than someone who still has to put those factors in place. Meaning that our level of aggressiveness should in some way be based on how much disposable income we can create by maybe having lesser thigns to spend on and then we can allocate more to bitcoin.

A person that is more organized finances( emergency funds, reserves and floats) in place has more of his income to himself and can easily decide to use them for and if that is to accumulate bitcoin then it's okay, but for someone with an unorganised finance that may still be trying to build his emergency funds should rather go with a low allocation to bitcoin or aggressiveness and focus on closing those spaces so he could have more of his discretionary income to himself then increasing his aggressive would be possible or okay.

Having an emergency fund is very important to be able to carry out investments well, because without an emergency fund that we have then when financial problems occur in carrying out investments of course we have to sell the assets that we have and do not have funds that we can use for our needs. have and we have not achieved the investment target we have made so there is no profit that we can get from the investment we have made.

I agree with you, of course it is important for everyone who has just started investing, they must be able to understand this in order to be able to invest well, because without understanding this of course it will be difficult to be able to hold on for a long period of time because We will never know for sure when we will need these funds and it would be better if we were prepared before deciding to invest.

Your reaction seems a bit strong to me Dailyscript.  I don't really disagree with anything that you are saying, except that you seem to be arguing too strongly in regards to matters that are discretionary and even sometimes ways that matters are described in regards to how much money is set aside for various categories of expenses, and surely there are likely going to be balances, and newbies need to be careful in regards to how aggressive that they want to be, yet if they have very organized finances that include being quite aware of their emergency funds, reserves and float, then their discretionary income is extra money that they have for whatever.. so maybe they get paid every two weeks, and if they already have money in their reserves that might be available for if they underestimate some of their expenses, or they might have some of that money that is available in case they want to go out for dinner or drinks or some other spontaneous expense, so they might already have various cushions set up, so then spending up to 100% of their remaining discretionary income on bitcoin may well be o.k... except for if they had not calculated very well in terms of the various cushions that they had already potentially set up.

I guess part of the point (and we don't really seem to disagree) is that the more organized you are and the more experienced you are with the balancing of your finances and psychology, then the more aggressive that you can afford to be in terms of your bitcoin accumulation, and sure some kinds of behaviors might border upon being overly aggressive, but at the same time, if we are trying to be realistic, there may be some ways that BTC buys are preset or they might be manually made, so that if paychecks are coming in each two weeks or some thing like that, then there can be ways to balance out if too much aggressiveness might have happened the previous pay period and yeah, there is a balance in regards to being either whimpy or aggressive, sometimes you might not realize that you had gone too far in one direction or another until later down the road and/or it is too late and maybe either you see that you BTC could have performed better if you had not been so whimpy or that you run out of money and you are forced to sell some bitcoin at a time that is not of your own choosing because you ended up investing into bitcoin too aggressively.


I have my doubts that any of us should be striving for perfection, yet maybe considering ways to do the best we can under the circumstances or to attempt to employ better practices.

Ideas of perfection are problematic, even though there are people in the world who have psychological problems in terms of attempting to impose perfection on themselves and onto others, and that really seems like a stressful world that I would not want to be part of that... so thinking about better practices also for each of us to be attempting to tailor our approach to our own circumstances based on the information that we have, while tweaking as we go, including that we should be expecting that we may well make several mistakes along the way, especially in regards to considering how aggressive or how whimpy we want to be.. but then at the same time, trying to learn from our mistakes and taking responsibility for our actions.. and deciding how much time do we want to be putting into learning about various aspects of bitcoin, versus sometimes carrying out other obligations that we have.

Even for example in recent times, some of the aggressive and seemingly overreaching vindictive behaviors of the US Government - whether we are talking about Samurai wallet or other bitcoin related matters that relate to self-sovereignty.. these can really cause irritations in regards to the bullish case for bitcoin and including causing some of us to question some aspects of how much we might want to allocate to bitcoin in regards to sometimes changes in the behaviors of others - that might even contribute to our decisions regarding how to hold our BTC, directly, on exchanges, through ETFs, on lighting network... do we run a node.. how much do we learn about coding or development, do we want to learn to code.. there are a lot of choices, that might not relate to exactly getting started, but could relate to how much of a position size we want to take, which each of us are not necessarily going to strike the same balances.

I disagree with you on this. Investment on bitcoin or any other form of business should not be done with a loan. There is no need to pressure yourself to the extent of taken a loan to invest and waiting to make profit before you can pay back, it is quit misleading. It is said often times that investment should not be done with loan rather get yourself a work that will help you accumulate gradually at least 5 to $10 per week through DCA for as long as 5 to10 years it is also said that the amount used for investment should be an amount that will not be needed sooner it should be an amount that would no be needed for a long period of over 5 to10 or years or more so I don't see the role a loan amount will play in btc investment, rather you are indirectly referring to trading because it is only a trader will have a short sited vision of talking about such thing. and that is not what we are talking about here. In conclusion the point is never invest with a borrowed money in bitcoin investment and secondly don hope for quick return because you might be disappointed if the return does not come quickly you might end up selling the bitcoin in your possession. And that is a dump idea.

Though your point in the Last paragraph was correct, but the ones I bold could be misleeding to some who don't get the point clearly. You shouldn't have used that phrase in the first place because is like mixing up maters.

I see were you heading towards and the point you are trying to make clear but it quite misleading and astray, we are discussing here about Bitcoin investments and not other forms of investment like that of physical businesses. It's a fact and not to be compromised by mixing words to make it appealing to our understanding, the idea of taking loan to invest in Bitcoin is a reckless and frowned upon means to raise funds for Bitcoin investment.

Elaborate more on this, do you indirectly mean it is approachable to take loan for Bitcoin trading than Bitcoin holding, the whole truth is to avoid any form of loan taking when dealing with Bitcoin investment.

This is part of the reason some concepts discussed here are often repeated to enable those who just joined the discussion understand the tone of this discussion and what is generally acceptable here. A lot of efforts have been made to discourage people from using words like "crypto"  here to avoid confusing people especially the newbies into thinking that Bitcoin, which they refer together as crypto with the shitcoin, has the same risk and the problems associated with the shitcoins. People were encourage to just use the word bitcoin which is sufficient and in line with the discussion being made here, so I don't know why people are bring crypto into the discussion as if we are having some general discussion of shitcoins.

The idea is not good to be adopted BTC investment is not like fiat investment where you take loan and do some capital project or infrastructure that can generate your income to pay back if it can't within the deadline been taking as collateral. Borrowing  is bad idea reason being that the market can be at dip after investing with the borrowed money and the deadline is at hand selling off your BTC can render you loss, and this can also deprived you of Long time holding if you have not meet up to the term and conditions of the money borrowed to invest, you will be forced to sell off your BTC therefore closing your investment.

The only best option is to invest according to what you can afford and avoid over investing that will mount unwanted pressure and plan all courses of quick withdrawal that can hinder your long term holding especially the area of emergency fund that has been over emphasize because it has been one of  the courses of failure of this Long term holding.

Actually if you are able to do that and have larger funds to be ready to take the same risk as Saylor did then it can still be done but on the other hand we must remember that we are not someone who is rich like Saylor so taking out a loan just to invest clearly must be reviewed further because it can be very risky for the future we have because it is an ordinary person and is in an economic level that tends to be ordinary or even still lacking then it can be suicidal for them if they force this as an option.

It is enough in a conservative way where investing when you are able to do so because even though bitcoin will be profitable for the future but we do not need to do aggressively as a whole because in the end there is a moment where we have to think carefully and decide to be reasonable and there is a moment where we have to act aggressively in addressing something including investing in bitcoin.

I doubt you've carefully read through what @agbamoni wrote down there to have gotten the point right. From what I get from his ascertion, he seems to be talking more about the reasons why it's not advisable to invest 100% of your earnings into Bitcoin as it's certainly going to give you lots of issues in the long run and not about diversification of your investment into whatever shit coin that's out there.

And yes, I subscribe totally to the fact that it's not right to invest 100%  of your earnings into Bitcoin and to be really honest, it seems very vague and untrue if someone claims that he is able to invest at such rate and that he will be able to do that consistently for at least four years while getting his life in shape. Let's try to be realistic enough to the fact that Bitcoin investments is just an aspect of our lives and definitely don't play the biggest role in our lives. As we continue to DCA, we can't do it leaving other aspect of our lives on pause till we've reached our accumilation goal and that's the whole essence of DCAing since you can just take the range of 10% to 30% out of your income and use the remaining 70% or so to still sort out yourself. This is not just a medium to air out things that aren't real and practicable and so, as much as we try to point out some possible scenario that we've not reached the level of doing, let's try to tailor down our opinion to the fact that we've got to still invest responsibly with an amount that's within our financial strength and that will allow us take care of our emergency and daily needs.

I agree with you that taking a loan to invest in bitcoin is not an option, because if we mess up our bitcoin investment, how are we going to repay our loan when it is due for repayment? If there is no money to invest in bitcoin, we should calm down and wait until there is money to start our bitcoin investment. We shouldn't take a loan to invest in bitcoin because bitcoin is a long-term investment.

The earlier you understand that in cryptocurrency, their is no diversification the better, because their is no substitute to Bitcoin in the crypto industry, all other coins are just means in which  these developers used in  milking investors of their hard earned money, so I would advice that you take your diversification else where, somewhere away from cryptocurrency entirely.

And lastly, concerning what you said about other source of income, though I sees it as an of topic here, in this thread, but if I must respond to that, then  it's very wrong to survive on a single income, because the rate at which inflation is ravaging the fiat and making it lose value is really a cause for concern, so it's  adviceable to have more than one source to keep you afloat, in your daily lives.

I sincerely agree with you, investment shouldn't come as a constraint to any investor, investment should come as a well thought out plan that allows you meet the other needs of your life. However the Idea to invest with loan money is not always a bad decision, because it's either you actually collected the the loan to invest in a certain business with an expected return in investment, which is why most businesses loans are collected. Moreover a hodler is not supposed to collect a loan to invest in holding, because holding takes a lot of time to yield profit, the person offering the loan might have that kind of patient.

Actually, what you say is quite confusing because we are here discussing bitcoin so why diversify assets if our goal is only to buy bitcoin. To be honest, the other points are correct but need to be corrected a little, if putting 100% of the money you have into investing in Bitcoin is certainly very risky because it will disrupt your living needs. So it's better to allocate 10% or 20% of your salary to invest in bitcoin.

We tend to see that everyone always experiences failure in their planned investments. Because their investment behavior is very aggressive by investing large amounts, but when their economic situation reverses, their decisions will have quite an influence on the course of the investments they make.