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There are not a right or wrong way to invest in Bitcoin. It is important to explore different strategies...and find what work best for you. Everyone different mind so what works for one person may can not work for another.
It seems to me that we are attempting to bat around what we believe to be the better of practices, so sometimes we give examples and describe what might be the better practices. One of the difficulties is not to be able to determine for another person in terms of how much to allocate and how well s/he should examine his/her cashflow in order to assure how much discretionary income is left over after expenses and making sure that the emergency fund is correct.
So it seems that there are better practices,.. otherwise, if the situation was "just do whatever you like", then we probably would not be spending so much time batting around the various ideas and the various things that should be considered..
I also understand that some people choose to put a lot of money into their investments at different times.This can give them more relax....and the chance to buy when prices are low. Combining this approach with regularly put money on time can work well for some peoples.
If we say some people, then we figure out that some people do all kinds of shit, and maybe that is why we either describe matters in terms of hypothetical or in terms of our own practices... Did you want to say what you are doing? or just vaguely talk about what some people might be doing in a kind of theoretical way?..
I like your suggestion of sticking with DCA (Dollar Cost Averaging) until you have a amount of Bitcoin that represents a year salary or expenses....this is a good approach that can make you feel more secure. May be some people may find it too strict and may prefer to change their strategy after a year of DCA ( with their own minds).
O.k.. this is better. So you are saying that once you get to a year's salaray accumulated, then you reassess how you might plan to go from there. Nothing wrong with that.
And...it is important to remember that there are no set rules when it comes to investing.The most important thing is to find a strategy that fits with your goals how much risk you can bear...and your financial situation.
ok... it is not a rule exactly, but assessing your own situation is a kind of recommendation of what to do, no?
Many say invest what you can afford to lose. So after family expenses from your income, if some amount of money is better to invest in bitcoins in DCA method. But it is best to invest in different sectors not only in Bitcoin. Which I am currently investing some amount of my income in bitcoins and also investing in different sectors. Even if my entire Bitcoin investment were to suffer a loss, I would not be financially broke.
Well I will talk on the aspect of
invest what you can afford to loose , I think this doesn't even hold only in investment but aswell as trading And that's not the purpose of this post though
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However, the best practice is to invest what you can afford to lose right?? In the case of Btc, its an apex coin so you can expect it to crash drastically over night even if there's a crash , there's always a little profit to settle with comparing to your entry and the amount invested, but it's good to just think it that way besides investment needs follow up so you can always determine the point opt out of investment.
You sound short sighted.. but still .. the idea about investment amount is to invest no more than you can afford to lose.. which largely just means make sure that you have your expenses covered, and that even if the investment dropped a lot you would not panic because you have already considered the possibility that it might drop...
Of course ultimately psychology comes partly from developing a practice in which you attempt to prepare for a variety of situations, so then you will already have a plan in place, and so hopefully you do not plan to panic... or lose money as Odohu mentioned.. but if you have already planned that they BTC price could go down from your entry point, then you could have had already established a plan to either buy more or hold through rather than sell... .. or maybe you would have some plans to sell under certain situation as you mentioned, but since we are considering longer term considerations in this thread, many of us already seemed to planned to not sell in the short-term - even though it is difficult to talk for everyone. .because some might not exactly disclose their plans and then others will change their plans when they end up panicking.
