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The problem with the so-called investors is they want everything instantly, as you said if someone invested $100 per week for straight 3 years then he would be made around 42% profit from his $15,700 but these gen Z investors don't find it very appealing and they look for more fast returns where they end up getting ripped completely.
In reality, 42% is a very decent return with no risks in just three years compared to traditional investments where they could have made hardly 20% in my opinion.
If someone is investing 4-10 years or longer, and they are ongoingly DCAing into BTC, then they still have 4-10 years or longer from their latest investment, and maybe their earlier parts of their investment are starting to come close to 4 years of maturity. Bitcoin may or may not beat traditional investments in a short period of time, but we hypothesize that continuing to build your bitcoin investment is going to give you more options in the future... even though it is not a guarantee it remains a likely good place to put value to be able to get more options in the future.
Someone who wants to maximize their profits needs to accumulate a decent chunk of Bitcoin to play around, so once they get into the position they can dump half of their holdings like at the peak of next bull run and wait for the bear kick in, meanwhile they have to keep doing their investment as usual.
I am not talking about newbies dumping large portions of their BTC holdings during a perceived peak because how the fuck are they going to know where the peak is and dumping 50% sounds like gambling and trading that may or may not work out, but it also may well take them out of their accumulation mindset... so careful in terms of fucking around with bitcoin too much and thinking that you know when the peak will be.
IMO funding your emergency fund should come first. We should only invest once we have saved enough money for emergencies to cover future expenses for at least six months or a year. If you lose your job or the price of bitcoin goes down after you have invested, you won't have anything left with you. However, there might be adjustments to plans along the way. if you see any opportunity that you are certain will give you enough money if you invest in it, then it is worth taking the risk.
There is absolutely nothing wrong with what you say because if someone already has mature enough intentions and planning for long-term investment, of course the funding must also be mature enough. As you said, someone must have an emergency fund which must be prioritized as the main point before funds that will be used in their own investments for the long term. Because it is also very possible for an investor who invests in Bitcoin not to withdraw the funds that have been invested when market conditions become bad or when the price of Bitcoin itself experiences a correction like now.
So I think that's right, because that's what should be provided first before someone immediately takes investment steps with a simple plan, but not with sufficient consideration. I often liken it to a long journey with the preparation of two provisions that must be separated first before they are actually used in different places. So in this case the emergency fund is the main provision and investment funds are the second provision so that an investor can carry out his investment with enough discipline in something.
How much of emergency funds do you think will be first reached before then planning on beginning one's investment budget. This could be from your own perceptive but I see it as being a waste of time, where as I know how much of Bitcoin I must have loaded in my portfolio.
@teamsherry on his opinion decides to load his emergency funds for a six month space, do you know how much dips, call it a significant entry price that one should have DCA during that time.
One thing we should know, even in the process of saving that emergency funds, we still have to face certain problems which means we also have to alter the loading up of the emergency process, like still taken money from their to solve some life challenges.
You seem to be mixing up the ideas of emergency funds and float, and sure there could be times in which your emergency funds could be drawn from, but you have to be careful with the idea that you think that you will regularly be drawing from there, because if you do not continuously keep enough in your emergency fund, you could end up getting really fucked during a real emergency in which you might have depleted your emergency fund based on some extra expenses and then wham.. you have an emergency and insufficient emergency funds.
I believe money from your cost of living has covered a lot of expenses and for the emergency fund is just there to cover up little more expenses, so why not convenient doing both.
In the end, guys are going to have to figure out how much value to keep in these various kinds of ways, and if they end up fucking it up, then the damage could end up being irreversible, and it might not make as much of a difference if their BTC investment is several times in profits, but if their BTC is in the negative or barely in profits, and there is a need to draw down the principle at the wrong time, then there might never come an ability to build the BTC holdings back up to the size that it had been.
Even if someone started investing $100 per week into BTC near the top of the first 2021 peak and through the second 2021 peak, and he continued to invest consistently and persistently that $100 every week for the past 3 years, he would be profitable right now since he would have had invested right around $15,700 and he would have 0.558 BTC (which would be worth around $22,320), and personally, I think that would be a great place to be for a person with that level of a discretionary/disposable budget..
With that 0.558 BTC, he can make huge profits when the Bitcoin price reaches $70k or even when it reaches $100k at the next ATH. That is a great result for someone already willing to invest in Bitcoin. With the profits he achieved, he was truly able to change his life for the better. With that profit, he could buy the things he wanted.
You seem to be thinking small potatoes if you are merely thinking about getting in and out of bitcoin whether that is $70k, $100k or otherwise.. But, hey, do what you like.
The problem is that only a few can consistently invest a certain amount weekly. Many people give up before they succeed in achieving their plans. They think waiting 3 years is too long and they slowly stop investing.
You can build systems to continue to invest, so even if you might have Ups and downs and you are not able to invest $100 per week, you might be able to invest $10 per week no matter what and even hold money in reserves so that you can invest $10 per week no matter what, and then maybe some weeks you can invest up to $100 per week or even more... So it seems to be a matter of building good systems.. and of course, you also can work on building your income and cutting your expenses.. which also can be difficult to achieve, especially if maybe some one might have to incur some expenses (such as going to school or something) in order to be qualified for higher paying jobs.
If he continues his investment, he could have some Bitcoins and the opportunity to make huge profits. He doesn't think what he is doing now can provide an opportunity to change his life for the better. That is a lesson for us to remain consistent in investing in Bitcoin.
I personally think that if a guy is in vesting $100 per week for 3 years and if he had started out with a 4-10 year or more investment timeline, then he may well be cutting himself short if he thinks that his later DCA amounts can just be cashed out in less than 4-10 years so it takes a quite a bit of time for an investment to build up and if you are still building, then you likely are not ready to be cashing out significant amounts of your stash, even if 3 years have already passed since you started to invest...
Now if the guy had lump sum invested $10k into bitcoin at the beginning of 2021 and maybe he got 0.3 BTC or something like that, and then thereafter he invested $100 per week, so then his total investment is 0.858 BTC rather than 0.558 BTC ..and so his earlier investment is getting close to the his 4 year initial timeline, but still it might not be prudent to be cashing out early, so a guy has to assess what it is that he wants to do, and if he might consider that he might be transitioning into some other stage of his investment that is something other than BTC accumulation and without degenerating into trading.. so if you go straight from accumulation to liquidating then you are acting like a trader rather than investor, an the intermediate stage would be getting into some kind of a maintenance stage, which also might allow you to start to sell some of your BTC, yet probably not a good idea to think about selling large portions, even if you believe that 0.858 BTC is enough to bring you to entry level fuck you status, it still might not be enough.. which surely considering "what are your goals?" is going to be important in terms of how to treat your bitcoin holdings that you likely spent a lot of efforts to accumulate to such levels after 3 years or so investing.
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That will really depends on people if they could really wait that long but unfortunately majority of newbies now are here for short term since they think its more ideal for them to earn fast compare for waiting on long result which still questionable for them. But if they could just do that and see the past result made thru data of bitcoin price history for sure they can really agree to this statement that they can really earn good by doing this.
Also many people right now are here just because they are hype up that's why we don't see much consistency from those people since mostly they didn't meet their expectation since all they want is fast money thru bitcoin.
If they could just be smart to decide what's good for their bitcoin investment and have long patience also understanding on situations for sure they would have a chance to earn huge profit from this coin.
Even though I like to think about 4-10 years or longer as being a good long term investment timeline, maybe I should start recommending 6-12 years or longer, and then the minimum is at least a cycle and a half rather than people thinking about merely cashing out right at the end of a cycle.. and the idea of cashing out if flawed, especially when it comes to figuring out how to think about long term investments.. .. .yet at the same time, there are going to be people who will have shorter investment timelines based on age or health conditions, and those people could still invest into bitcoin, but they may well end up getting caught on the wrong side of a wave, when they are in need of liquidity. so it could be problematic for people to invest into bitcoin in shorter timelines.
In this strategy I buy stocks or assets when their prices fall (sink) and then hold the stock for a long period of time in anticipation of a rise in price which helps me to profit safely from the creep market.I do this based on the idea that market fluctuations are temporary, And over time the value of the asset will increase and help to exit the market safely.This approach requires patience and belief in the fundamentals of investing. However, it is imperative for new investors to conduct thorough research and consider the individual circumstances of each investment before implementing this strategy. DCA treading is the better strategy for this' Buy the DIP and Hold '
Yeah, but we are not talking about stocks here.
We are talking about bitcoin. So maybe you want to rewrite your post and include the word bitcoin in there somewhere so that we know that you are talking about the topic of this same thread.. and your mere throwing in some buzz words does not mean that you really are thinking through the topic.. but hey, that's what bots do, right?
How much of emergency funds do you think will be first reached before then planning on beginning one's investment budget. This could be from your own perceptive but I see it as being a waste of time, where as I know how much of Bitcoin I must have loaded in my portfolio.
One thing we should know, even in the process of saving that emergency funds, we still have to face certain problems which means we also have to alter the loading up of the emergency process, like still taken money from their to solve some life challenges.
Actually in times of planning for an emergency funds we may not really no the exact amount of funds that should be on our emergency funds but however as we have different investors that's also how our individual needs could also varies so every investors should have a little knowledge on how the estimated amount of funds that will actually be okay for them in case of any emergency needs will arise, so perhaps if you have only one source of income that generate $100 on a monthly basis you could structure your accumulation pattern in such a way that after investing your budgeted amount on Bitcoin using DCA strategy you could still have other funds that will be there for your daily needs.
For example since your monthly salary will be $100 you could budget $10 or $20 depending on your financial responsibilities by using it to invest on Bitcoin through DCA strategy, however with this you will realize that the remaining funds will be enough to cover for any emergency needs that could arise
You seem to be mixing up the idea of emergency funds and float. Emergency funds is not merely the extra each month that you might need, and that is more like a float. Emergency funds would be something like 3-6 months or more worth of expenses that you would need to cover if your income dried up or even for other reasons like an accident, a medical emergency or something that was somewhat unforeseen, and surely the greater your emergency fund, then you might consider holding some of it in ways that are immediately available, such as cash, then then maybe other parts might be held in some kinds of interest bearing accounts, but usually the emergency funds are not in assets that are volatile so it would mostly be in the currency that you usually use for your expenses... or if you have a shitty fiat, then maybe you keep dollars instead of your local currency, depending on how easy it is for you to exchange the dollars if you need them.
and perhaps if there is no serious needs and you realize that after the first month your emergency funds is still intact you can now adjust your accumulation pattern by increasing a bit and however if after that month and you feel that the emergency funds is not enough you could also come back to your normal accumulation pattern, so perhaps this the reason why is very good for an investor to be able to adjust there investment pattern if the need arise.
There is nothing wrong with these ideas except the emergency funds usually should be at 3 months minimum, especially the larger that you bitcoin investment is.. so if your bitcoin investment is less than the size of 1 month's emergency fund, then maybe your emergency fund does not need to be as large, but if your BTC investment size is getting to the size of close to a year or more of your expenses, then it probably would be better to have an emergency fund that is close to 6 months of your expenses. Surely guys have to come up with their own balances, and if they make mistakes and misjudgments, then they are going to be the ones to lose, and frequently guys do not realize that they have made a mistake in regards to how they are treating their reserves, their emergency fund, their float and other kinds of ways of holding cash that could serve these purposes until it is too late.
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If you wait until you have a comfortable emergency fund that will be enough for you to take care of things when the need arises, you won't be able to invest, to me, I don't think that there is any amount that we should have before investing,
There are not exact strict rules, but you could get in trouble if you fuck around too much with these kinds of things, and probably at bare minimum you likely have to have at least something like a 2 week float in your cashflow, and probably you could build your emergency fund and your BTC investment simultaneously until each are at 3 months, and then once you get your emergency fund to 3 months you probably could build your BTC investment larger.. but if you BTC investment gets large, then 3 months might not be enough for your emergency fund because you would be taking too much risk that your BTC investment might end up getting used as part of your emergency fund, which likely is not a good idea, but guys do have more liberties the larger their wealth grows, and if you get several years worth of BTC built up, it may not be a big deal to have part of your BTC serve as an emergency fund, but you still could end up in a situation in which you have to sell some parts of your BTC at a time that is not of your own choosing, but if your BTC holdings are 3x, 5x, 10x or more in profits, you might not even be that concerned about it, even though you might see that there are high and low price points in bitcoin (including looking at spot price as compared with 200-week moving average) and you might not be wanting to sell any of your BTC during the lower of the price points.
beside an investor should not think of being alright financially before making investment move, the only aspect one should consider is how much that is coming in daily, weekly and monthly
Of course having a good cashflow does make it easier to have a good float that you might not even be labelling as an emergency fund, but your float or even the assurance of your strong cashflow is still serving a similar purpose as an emergency fund.
after this check, the money should be divided into a segment, the one for emergency stuff, other needs and the investment itself, with this idea one can start from somewhere and never think of withdrawing his or her investment when fully involved.
Surely, I agree with the idea of getting started as soon as possible, so those are not bad ideas in terms of trying to build several parts simultaneously. Another thing that guys sometimes need to consider when investing is their use of debt and if they already have a lot of debt or various kinds of loans, so there may be cases in which the debt may need to be put into control, and surely that can be done simultaneously too in terms of making sure to pay off higher debt before lower debt and if all of the debt is at a fairly low interest rate, such as less than 6% per year and without any other penalties, then there might not be as big of a rush to pay it off, even though 6% guaranteed returns does seem good... even though in the real world (in spite of what governments tell us) the cost of living might well be going up higher than 6% per year currently.
Personally, I do not like ideas of "going all in" to investments...
To me, it sounds like gambling and or trading rather than investing.
Even though I get the idea that reserve funds can be saved up in order to have extra cash that goes beyond regular DCA buying to be able to inject into your BTC investment at various points along the way, especially at various dippening points.
You are right but investment is now the only way to be profitable for everyone, trading or gambling without experience is not very profitable, if one invests in Bitcoin now, it is almost certain that he will be in a profitable position within a few months.
Also as per your suggestion if one trades and gambles intelligently then more profit is possible, but most of the wise people can't do these things by following the right rules.
Even if someone started investing $100 per week into BTC near the top of the first 2021 peak and through the second 2021 peak, and he continued to invest consistently and persistently that $100 every week for the past 3 years, he would be profitable right now since he would have had invested right around $15,700 and he would have 0.558 BTC (which would be worth around $22,320), and personally, I think that would be a great place to be for a person with that level of a discretionary/disposable budget..
We have an exception to if we are interested in going all in at once with our investment, this could be only possible when we make the necessary research on the previous performances of the market
and the coin we are having in mind, then compare the past to the present and if you could speculate something out of it, whereby it's profitable to buy the dip and invest when the market is extremely bearish, in this situation, you can go all in at once and invest, but never make a mistake of investing on anything else aside bitcoin.
It is therefore mostly advised that when choosing a particular pattern of accumulating our bitcoin asset to hold, we should make use of a pattern that best serves our interest, using DCA or going in at once with the market when it is dip, buying and holding at the bear season is profitable enough provided that we can hold.
First, sure you corrected yourself to clarify that we are talking about bitcoin here and not talking about some "coin" that we might have identified.. fuck shitcoins.
Second, part of the reason that I do not like the idea of going all in is because even if the BTC price dips, we could end up investing $10k or whatever into it all at once, and then if the BTC price continues to dip from our entry point, then we are all out of ammuntion and we have to wait it out.
Let's say for example in 2020 and 2021 we had been watching BTC a lot and we were wanting to get in and we were saving up a lump sum, and maybe we were saving $100 per week and we really wanted to get into bitcoin, but we were afraid, so we kept saving and watching, so by the time the end of 2021 came, we had accumulated $7k and we had an additional $3k in our emergency fund, and when saw a dip from $69k to $42k, in early 2022, we decided to go "all in" and we invested $10k into bitcoin at $42k-ish, and so then when the BTC price went against us in 2022, we would have been kind of fucked for nearly 2 years, and also maybe we would not even be in a position to hold through all of that time, or to replenish our emergency fund that might take us more than 1/2 year to do to get it back up to $3k and then we miss the opportunities to buy during the low periods in 2022, and so maybe at some point we can continue to invest $100 per week in BTC once we get our cash back in order.. but maybe we might have screwed ourselves up mentally.
probably the better approach would have been divide our desired $10k into three parts, and invested $3,333 right away, and then had $3,333 for buying on dips and $3,333 for DCA... and we would not have had to deplete our emergency fund or taking other drastic measures when we went "all in," and sure maybe we are quibbling about the definition of "all in," yet I am providing some elaboration regarding why I do not like that "all in" way of framing an approach to BTC investing, even if you might take some measures to "not really be "all in" it is not a good way of describing investing into something like BTC or maybe even other investments, but can be especially important in BTC that can have very violent and long lasting price moves that go against expectations.
Personally, I do not like ideas of "going all in" to investments...
To me, it sounds like gambling and or trading rather than investing.
Even though I get the idea that reserve funds can be saved up in order to have extra cash that goes beyond regular DCA buying to be able to inject into your BTC investment at various points along the way, especially at various dippening points.
You are right but investment is now the only way to be profitable for everyone, trading or gambling without experience is not very profitable, if one invests in Bitcoin now, it is almost certain that he will be in a profitable position within a few months.
Also as per your suggestion if one trades and gambles intelligently then more profit is possible, but most of the wise people can't do these things by following the right rules.
Even if someone started investing $100 per week into BTC near the top of the first 2021 peak and through the second 2021 peak, and he continued to invest consistently and persistently that $100 every week for the past 3 years, he would be profitable right now since he would have had invested right around $15,700 and he would have 0.558 BTC
** (which would be worth around $22,320), and personally, I think that would be a great place to be for a person with that level of a discretionary/disposable budget..
**[b]Edited:[/b] Here is the link for DCA of $100 per week for last 3 years
https://dcabtc.com?sd=2021-01-24&sda=custom&f=weekly&d=3_years&ac=10000&c=true
You have definitely said a good way where people can invest very easily and plan their own way how to arrange their investment plan regularly, I hope many people will find your way useful. As per your suggestions if one makes an investment plan for 3 years and maintains consistency then it is certain that his life will change before the first term is over.
But we find that there are many people who expect leverage too quickly and trade or gamble in which case people lose against profit, ultimately losing the original investment money. It is important to make proper and the right decision.
I did not really say that a person should make an investment plan for 3 years, but instead showed what the last three years of consistent and persistent DCA would have had accomplished... so most likely if such person is still accumulating BTC after 3 years then he likely still has a decent amount of investment time from there because he is still building his investment portfolio... but sure, if he decides that 0.558 BTC is enough or that maybe he wants to slow down his investment pace or to otherwise to change his investment pattern or to transition into maintenance rather than accumulation, all of those practices would be consistent with longer term investing ideas...but I still doubt hat such a guy with ONLY 40% or so profits should be in any kind of position to be planning taking profits at that rate.. even though surely guys can do whatever they like in terms of how the consider their BTC investment and the extent to which compounding might be contemplated to be of value to them in order to have longer term plans (and options) rather than framing their BTC investment in terms of mere short term profits.
That's an illustration of how by regularly and consistently putting money into btc every week it will definitely have an average price of course from all of that it will have a profitable value for 3 years, try to imagine if we can do it for more than 5 years it will be something amazed that they can do it consistently putting money into btc for so long... I actually want something like this but I'm still in the process of DCA for more than 1 year.
For me $100 is an aggressive level even though every week the dollar value is not the same that is inputted,
$100 per week is ONLY used for illustrative purposes, and surely any amount could be used to show consistency.. and surely guys can try to shoot for some level that is sufficiently aggressive, but still guys should be attempting to be practical within their own means.. and furthermore past performance is not an indicator of future results, even though we can get some ideas regarding the power of these kinds of matters to act upon ideas and to build rather than just having ideas and not necessarily having action to go along with the ideas.
it will still be the best way with this strategy as long as it is one path with DCA that is run regardless of the money inputted it will still be good even though weekly our money is not the same $100 so on.
Starting from $30-$50 to $100 this method is still good if you do it to BTC.
Yes.. the dollar is consistently going down in value and being debased at probably a higher rate than what is being officially presented by various government agencies that report on such dollar value status.
