Topic: Buy the DIP, and HODL! - page 3. (Read 76460 times)

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.

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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