Topic: Buy the DIP, and HODL! - page 268. (Read 136406 times)

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.

This method is no difference from buying aggressive when there is more money to spare. The only reason you are able to comfortably put 100% of your income into Bitcoin is because you have various source that you make money, and you don't rely on your monthly income to cover up for everything you need. Despite the general advice of not putting all our money into one asset you still choose to neglect because you feel it is less risky for you since you have no upcoming needs. But let me give you some reasons why this idea is wrong.

1. You are not expecting any needs, but life throw curveballs, things could go wrong like health and emergency need which you will need money for that is why it is important to keep reserve funds.

2. There could be a time where you might see a delay in receiving your income, thereby you need more money to survive and invest.

This your idea might seem logic to you, it's still a risky move to make. At least try to diversify instead of putting your entire money in one basket even if there is a huge assurance in that assets and even with a paycheck coming soon. Money that is not in your hand cannot be called you money unless you receive it.

For me I don't see any difference between what you are saying and what mayor of ogba is saying. You both are saying thesame thing, if you read down to the end of his comment you will realise that he said about emergency fund and accumulate strategy which he mentioned also DCA to be presise. So both of you are saying thesame thing.

Everyone who has been in this thread for so long should have known more about emergency fund and it's important, so needless of well knowledgeable member to ague about it, rather you should be in good position to educate more newbies about it. Emergency and reserved fund is ideal for any Bitcoin investor to succeed in his accumulating process, but not advisable to over due it in a manner that wit will affect us.

Since emergency funds are necessary for bitcoin investment, it is not wrong if I talk about it even though it has been discussed before because this thread is like a classroom where we learn how to invest in bitcoin and hold it for the long term. New members keep joining this thread to gain a clear understanding of how they can start a perfect bitcoin investment without getting burned. If we stop discussing emergency funds, I think those new members who have joined this thread will not know what to put in place before they can start investing in Bitcoin. Guiding a newbie who wants to invest in bitcoin to have emergency funds before he or she can start is important.

You are very right here! Investing 100% of discretionary income into Bitcoin is generally not advisable. This is because the investor is jeopardizing everything he earns thereby putting them on high risk since Bitcoin is a highly volatile asset. Another reason is because one should not put all his eggs in one basket, diversification, emergency fund, business and small savings is really important for an investor so that they wont get to tap into their investment. If a person invest all his discretionary income into Bitcoin he leaves no room for a safety net.

No matter the price action I feel that there will be more work opportunities in the future. It is good to use for something meaningful just like investing but not all of them into one thing. IMHO People should stop (especially beginners) converting their discretionary income into Bitcoin until they have achieved the necessary mental balance they need of multiples business, emergency funds and month budget expenses. These application does not imply to the rich because they have more than enough to invest and enough to remain.

If it's taking loan to invest in bitcoin, I won't support that. Taking lone to invest in bitcoin is something that we shouldn't try, because you will be putting unnecessary pressure on yourself. What happen when your loan is ready for repayment and your bitcoin maturity date hasn't arrived and there is no money to pay back, you will definitely resort to selling your bitcoin in order to repay your creditors and all your efforts will become fruitless in the end. For me instead of someone borrowing money to invest in bitcoin, it's best the person dispose items and properties the person don't have much need for them anymore and raise substantial amount that can be used for the investment. It is better that way, a good investment is the one you make and have peace and rest of mind.

In as much as investing 100% could be risk or over investing but with this method you have explained I think it will be very difficult to get into trouble during the accumulation process because you have already eliminated any possible risk that could arise along the line, actually this method has been very helpful for so many investors today and funny enough I have make use of this method sometimes, especially when I'm very close to receiving my monthly salary and by then I have cleared all possible needs that would arise so I will then putting 100% percent of my available funds at that moment while waiting for the salary to come so that I could balance the equation and from their continues my DCA.

Actually I only use that method whenever I feel I'm free from any needs and my monthly salary is very close, however it takes a proper understanding for an investor not to make a mistake on this method because like you have explained that investing 100% is only good before the pay period so that they will not ran into trouble but funny enough most investors will still be aggressive trying to be greedy.

This is part of the reasons why some persons fail in life because they want to be in same measures with others without evaluating themselves if they can be able to endure what another person can endure. Investing in Bitcoin doesn't mean one needs to have huge amount before engaging oneself and it has been discussed severely that we should endeavour to invest what we can endure because unforeseen circumstances can happen and the reverse be the case so in such situations how can you be able to handle your emotions when you have sacrificed all your income in such an investment? that is why an alternative to your funds is necessary so that in a situation where things doesn't work the way you plan, the emergency funds can stand as a yardstick to make plan B and you continue with your investment journey because if you must grow in your investment, you must look for a way to continue and restrategize in a case where your initial plan failed.

Market prediction is not part of Bitcoin investment, to me it is just a waste of energy and time, I think what every investor should be doing at all time is to keep hustling to acquire more asset and keep holding, the predictions that we see people do is just for trying of luck and at the end of the day once it happen the exact way the predicted it, they will see themselves as gurus in the system not knowing that that's the direction of the market at that moment, it has been said severally that Bitcoin price is been controlled by the market influx, though some events too can excalate the price to a profitable level but the truth is that this event may not really have an immediate effect on the price but gradually it will, this is why most people expect bullrun and halving to have a noticeable change in the price of Bitcoin and other cryptocurrency but it didn't happen that way but rather the market started creating a kind of panick that can lead some imvestor making a regrettable decision, lets keep holding and acquiring more assets to keep our portfolio more active.

Yes.. so one level of mistake of overinvesting is not to project out your expenses well enough, so then your BTC ends up serving as an emergency fund, which is not what you want to have, whether the BTC price is up or down, you want to mostly be keep building your BTC stack, even if you are in profits, especially if you are still in earlier times of building your stash.

So yeah having various cashfloats can help you to never have to touch your BTC, except as a very last resort.. and so the way that you structure your cash reserves can vary, and personally, I think that there should be some cash reserves that you never have to touch almost no matter what, except a true emergency.. and if you are already anticipating irregular cashflows (income), then that is not an emergency, and if you already have bad health and you expect that you might have some extra medical expenses, those are not emergencies either..... so frequently cash reserves and cash floats will be used to address cashflow irregularities or expense irregularities that you may or may not anticipate, and so you might go 20-30 years or more without ever touching your actual emergency funds, and so if you never have to touch your emergency fund, you are also never going to have to touch your bitcoin, so yeah, it can take a long ass time to build all of these kinds of reserves that may also allow you to invest more aggressively into bitcoin once you have various kinds of cash reserves in place.. ..

So the BIG tests of whether you are doing these things well and/or correctly will come during various kinds of times in which many negative things might be happening and you are still able to hold onto your bitcoin and maybe even continue to buy BTC when everyone else around you seem to be panicking.. .but none of what I am saying should necessarily stop any normie from regularly, consistently and persistently buying BTC through something like DCA and other methods, yet there surely is a lot of importance in making sure that you are keeping some cash cushions and having some decent ideas about how your income and your expenses might change from time to time, and if you decide to spend money on something that is not of your normal behaviors, you might really have to account that your purchase could end up affecting other things that you do down the road and even screw up some of your abilities to continue to buy bitcoin if you have not structured your various purchases, including bitcoin, in ways that also account for your keeping various cash cushions in place that you would use those cash cushions prior to your emergency fund and prior to your even having to come close to touching your BTC.


Surely if someone is investing 100% of his discretionary income into bitcoin that might be on the border of too aggressive because he might not be adequately accounting either his income or expenses, so there would be no room for mistakes, unless, he were to invest that amount at the end of the pay period rather than at the beginning, meaning that if he were to only make his investment of all his extra money right before his next check had arrived, so then he would be at least eliminating the possibility for mistakes, so then his next period starts again after his check for the next pay period arrived.

There could be some folks who say that they are doing 100% but they really are not because they are keeping various kinds of cash cushions, but then they could still be accurate in claiming that once they calculate their various kinds of cash cushions are in place, then they will invest 100% of their remaining cash into bitcoin, whether that is weekly or some other period of time of spreading out the buys.

It is as a result of the problems of emergency needs that every investor is advised to make room for savings aside while carrying on with the DCA  investment plan. An investor is more likely to make success in his investment having an existing savings plus a reliable income source as it is a dyke against challenges that could make investor tamper with his investment. A good investor should be able to delineate a systematically way of investing because it is out of a lack of knowledge that newbie investors do go all in while investing in bitcoin.

If I am in a position to advise a friend, I will strongly advise them not to invest with loans. Especially if they are not currently managing businesses with assets that can be replaced with the initial loan taken as per the value of the loan meant to be returned. If not for big businesses who have multiple streams of income and insurance, taking loan for another investment should be discouraged. Otherwise, I will advise my friend to invest with the profits they've realized from their existing businesses, however small. Every businessman or woman has a vision, such visions can be translated as one's business foresight for the future. But, come to think about it, the future is just an imagination which every one builds in their subconscious mind. Planning for the future is essential, but planning for the present is even more important. In a nutshell, whatever decision you intend to take for the future, should not be detrimental to the present.

From my understanding, an investor faith in Bitcoin can determine buying Bitcoin agressively or rather with a little amount. From the illustration above, we have two set of investors, investor A and B whereby both investor choose to invest separately despite their financial status being equal. Personally, when it comes to investment choice one ought to think careful and their allocation monthly or weekly should be in position, for example I don't expect anyone to buy Bitcoin using 100% monthly or weekly all in the name of being aggressive besides from my study people who invest like this end up selling before reaching their target. Note, my approach towards Bitcoin investment will determine my believe and at the same time investor still have responsibilities, needs to settle, holding an emergency fund etc so by the time an investor will consider all this factor monthly or weekly will definitely determine their accumulation approach.

Please check your quoting. It's difficult to see which and which is your personal thought.
 

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If people invest all their money in a bitcoin investment, it is not only a dip market that will make them make a bad decision with their bitcoin investment. Since they have invested all their money in bitcoin, when their financial needs arise, they will not wait for bitcoin to dip before they make bad decisions. From the day they can't afford something necessary in their lives, they will depend on their bitcoin investment to afford it. There was a guy who sold his bitcoin investment to get himself a computer because he had invested all of his money in bitcoin.

We don't determine who believe more in bitcoin by the size of our investments, what really determine the size of our investment is our financial capacity. Two investors can have same trust and believe in bitcoin but one with more money will have a bigger portfolio because he financial capacity is more than the other one who has less portfolio, but that doesn't mean that the  one with less portfolio in bitcoin doesn't believe in bitcoin. It's all about staying within your limit and not over doing yourself. You have to understand that at the end of the day it's about investing what you can be able to lose that will not affect your life negatively.

Thank you sir, for breaking it down to the lowest understanding, because this is the exact situation I found myself in late last year that I started buying Bitcoin true the dca accumulating method,  during that period due to how excited I was as a newbie not having much knowledge of Bitcoin and how it works, I was in the opinion that the more Bitcoin in my possession, the more money I will make, not even knowing that holding is another thing all together, so that spur me to invest more than I can afford from my monthly salary, which wasn't that easy for me, because toward the end of the month when I can no longer fend for my basic needs, I will just have to fall back to my holding, and withdraw a fraction of my holding just to survive till I have been paid my monthly salary, and of a truth, that actions I took limited me so much.

So with time, I started gaining knowledge from this forum about Bitcoin and  how to go about it, so the moment I stop buying aggressively, and I started buying according to what I can afford, and the money for my monthly upkeep being kept aside, I observe that I no longer struggled to consolidate to my holding as before, so that's why I believe that if an investor can invest according to money he can do away without, holding wouldn't be that difficult, as long as his source of income never runs dry.

investing with anything that's related to a loaned money is directing inciting bad debt on yourself and money that's loaned in itself has a specific date you're supposed to pay it back which means that your investment timeframe is totally dependent on how long the owner of the money is willing to allow you access to it and that makes it a bad source of bitcoin investment option as it won't encourage you to HODL for the long term and if you're only able to buy your Bitcoin from loaned money, it directing means you will not be able to continue buying more Bitcoin and that you have a combination of so many issues you've got to fix ranging from payment of debt, sorting out emergency funds and even being able to take care of yourself while still accumilating your Bitcoin and these will all go put you in a tight corner where you might be forced to sell off your holding at a time that's far below your target.

As much as it's necessary to think about investing into Bitcoin, it's also necessary to know that the source of our investment should primarily come from us and not from a third party of any kind. Maybe some bunch of motivational speakers like Robert kiyosaki that are of the school of thought that you can always get yourself in debt just so you can invest into real estate or those kind of shit might have sent a wrong message to some folks to believing you can take up a loan to buy Bitcoin but that's just mere shit. The idea of using the DCA methord in stacking up Bitcoin has made it possible for even the low class to get some chunk of Bitcoin without necessary getting it through loan. It's even better to DCA with as low as $50 per week than buying $2k worth of Bitcoin with a loaned money you will be required to pay back in a small time frame of say six months or so.

Investing in bitcoin is not like a physical business, that you can take loan for in order to make profit after some years and pay back the loan. That cannot work on bitcoin investment because bitcoin is volatile, and the only way you can make profit in bitcoin with rest of mind and peace, is when you invest and hodli for a long time. Taking loan to invest in bitcoin is from fry pan to fire, because when your loan is due, you must pay up or else you will be arrested or given additional years, depending on you and the loan giver understanding and agreement, but you will also service the loan or the percentage will increase. If bitcoin is in the bear market or anytime bitcoin price dips, you might have high blood pressure, and your health will be at stake. In fact, so many disadvantages that I didn't even mentioned on taking loan to invest in bitcoin.

Bitcoin investment is done for the future, because that is when bitcoin will have shown itself to the whole world that she is King of wealth, and a lot of investors that bought earlier and now, that were able to build and grow their bitcoin stash without selling will benefit a lot. This is why if you don't have your discretionary income, there is no need to invest in bitcoin. This is because it is better that you use your own money that you have assigned to buy bitcoin weekly or monthly regularly using DCA strategy, so that you can start building up your bitcoin investment portfolio gradually nonstop for a long period of time. You will be investing with ease and without tension, as long as you have your emergency funds, reserve funds and floats to take care of whatever expenses. If you don't have money, you need to get something doing to give you income, and if your income is small that you do not have any discretionary income after taking care of important needs. You should find a second means of income, so that you can have a discretionary income to invest in bitcoin using DCA method which allows you to buy bitcoin at any price level. Regular buying is very important.