Growing both your Bitcoin and backup funds. - page 2.

terrific

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Quote from: Onyeeze on September 25, 2024, 05:37:49 PM

is not that good to put all you have in cryptocurrency because you may have Internet failure or you have issues in your wallet you invested your bitcoin

There is no problem for me if I go 100% in Bitcoin. Internet failures are quite easy problems with multiple internet providers for all of us, that's not even an issue. And as for the wallets, I don't think that's also a problem, retrieving wallets are easy as long as you have the private keys or recover phrases.

Quote from: Onyeeze on September 25, 2024, 05:37:49 PM

bitcoin investment is something you can do gradually not to the extent of using everything you have to invest or put in, in cryptocurrency, I'm seeing that cryptocurrency is a side hustle that we don't need to use it as a first class source of income, because its a technology and it can disappoint

Those that have adapted and chose to source their income with crypto as their main source, they've survived all along. And at the same time, they've got holdings that are ready to be sold when the bull run approaches near to its peak. Once taken some profits, that's how you manage your fund that you won't have to rely solely to crypto anymore but as long as it works, why settle for less and leave it?

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Quote from: Z-tight on July 04, 2024, 01:51:51 PM

The logic behind this is wrong, because nearly all of your money shouldn't be in BTC, for the rest of it to be called a 'backup' fund. There are other investments and assets you can purchase, gold, real estate, and many more you can find; your funds should be well diversified into different assets like these, alongside BTC. However, like you said, it is important to always have liquid asset, so you can live and solve necessary problems without liquidating your long term assets.

It's with this investment logic that a lot of investors have to miss other opportunities they could have benefited from in other assets. No matter how much a particular asset may be recognizable it doesn't close doors to investing into other class of assets. If as an investor you get so confident about one asset them maybe you can leave one-third of your funds there while diversifying the rest funds to other lucrative and potential assets as doing this will help reduce the overall risk of ones total portfolio.

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Quote from: GideonGono on September 24, 2024, 07:36:17 AM

This is why I am putting all of my excess money into crypto, rather than letting it sleep in my bank account it is better to let it grow or make money for me.
Stake it or just hold it to let the price go higher.
Of course you should also have an emergency funds in fiat so that if any unforeseen event occurs, your crypto funds wouldn't be affected.

is not that good to put all you have in cryptocurrency because you may have Internet failure or you have issues in your wallet you invested your bitcoin, bitcoin investment is something you can do gradually not to the extent of using everything you have to invest or put in, in cryptocurrency, I'm seeing that cryptocurrency is a side hustle that we don't need to use it as a first class source of income, because its a technology and it can disappoint

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Quote from: $weetne$$ on July 18, 2024, 01:07:59 PM

Quote from: 348Judah on July 04, 2024, 02:48:55 PM

If you want to make an investment in bitcoin, there are things in which you need to consider first before anything, the kind of investment you're going into, its duration, the source of fund to use for the investment and so on, if you can't afford to use money from what you have earned or the fund that belongs to you, then you don't have to force yourself in making an investment, money for your daily expenses shouldn't be included as part of your investment.

If you are investing in Bitcoin you also have to plan to grow your backup funds because every other money that you have should be your backup funds that you use for other things. You should already have a source of income that should be the main source of your funding for your investment. When you invest in Bitcoin without considering if you can be capable of maintaining your standard of living without selling your Bitcoin, you are not going to be capable of holding for a very long time. Do not think that you have to put all your money into Bitcoin without thinking about other parts of your life. You can decide to get more jobs if you want to invest more money into Bitcoin or decide to learn how to trade very well then you can be trading to get money. With the addition of trading and your other sources of income, you should be capable to having enough money to use for anything that you need.

Having a source of income is the first thing one must think about before proceeding to make investment because it is a source of income that keeps an investment going. Sometimes having a source of income is not just enough to keep an investment going because an understanding of management of income is needed, when people don't understand how to manage money it Normally affects one's investment. There should be good management of money to know how much one can afford to invest and how much will be just as back up fund. Being calculative on how money should be spent sustain investment and makes it to be productive.

Having a a source of income and good understanding of how money should be spent is just the secret why every investment will bring a productive result at the end.

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This is why I am putting all of my excess money into crypto, rather than letting it sleep in my bank account it is better to let it grow or make money for me.
Stake it or just hold it to let the price go higher.
Of course you should also have an emergency funds in fiat so that if any unforeseen event occurs, your crypto funds wouldn't be affected.

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To effectively hodl Bitcoin on the long term requires strategy so that the holder can become more focused on the long term investment. Before talking about accumulating Bitcoin and having emergency funds on ground it's important to understand that your income must first cover your basic or primary needs first. If what you're earning is not enough to support your feeding, rent and basic amenities like water and electricity then you should postpone the idea of any investments unit you increase your income. When these basic needs are met then you can conveniently do your DCA method and from money that is put aside for miscellaneous expenses can cater for emergency funds.

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Quote from: icalical on September 24, 2024, 01:05:26 AM

There have been swings in the Bitcoin price of late, and it could rally later this month or in October, according to some experts.

Experts on media have opposite predictions about the market too. You have to believe one of two expert types, who are bullish and who are bearish, who make calls for break-out and who make calls for correction.

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Yet, with the Federal Reserve poised to cut the rates of interest anytime soon, it is causing even more fluctuations.

People can see it as bullish news or as bearish news if they see it is early signal of recession in the USA. and the world.

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In that aspect, while much as I would love to have both Bitcoin balanced and backup funds, let us be prepared for a drop in price. So, it makes sense to build a safety net.

If we have capital for investment and are experienced to wait for dips, with good discipline for waiting time, dips are great opportunities for purchases. Dips can help our investment with DCA strategy works better, with cheaper entry prices that will increase our profit in future.

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icalical

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There have been swings in the Bitcoin price of late, and it could rally later this month or in October, according to some experts. Yet, with the Federal Reserve poised to cut the rates of interest anytime soon, it is causing even more fluctuations. In that aspect, while much as I would love to have both Bitcoin balanced and backup funds, let us be prepared for a drop in price. So, it makes sense to build a safety net. That is how the environment of macroeconomic factors snapped in the crypto landscape. Also, if one wishes to continue investing, he can do so, but with a little more caution since bullish moves might just pop up sooner or later.

Alpha Marine

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Backup for what exactly first of all? Because I don't see a need for a backup/emergency fund if you've already done that before buying Bitcoin with your money.
For instance, if you're a salary earner and receive your salary at the end of the week or month, you'll divide that money into different ways. The money you use for your investment for groceries and so on. In this division, there should be money for emergencies already. You should have a percentage for your DCA and a percentage for your emergency fund, so you don't need another backup fund.
You can keep the backup fund in Bitcoin or fiat, it's up to you. That's why I asked what the backup fund you're talking about was for because there will be no need for two emergency/backup funds.

harapan

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Quote from: Z-tight on July 04, 2024, 01:51:51 PM

The logic behind this is wrong, because nearly all of your money shouldn't be in BTC, for the rest of it to be called a 'backup' fund. There are other investments and assets you can purchase, gold, real estate, and many more you can find; your funds should be well diversified into different assets like these, alongside BTC. However, like you said, it is important to always have liquid asset, so you can live and solve necessary problems without liquidating your long term assets.

It's just inaccurate to not consider these;some decisions like this have been made without proper considerations.
Some investments are risky but not having an investment is the greatest financial risk.You should be able to track your plans,diversify numerous,safe and relevant sources that'll generate and proffer positive results to the game.
Just In case something happens ahead and unknowingly,it'll fix you easily to calculate and position right

Tmoonz

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Quote from: Z-tight on July 04, 2024, 01:51:51 PM

The logic behind this is wrong, because nearly all of your money shouldn't be in BTC, for the rest of it to be called a 'backup' fund. There are other investments and assets you can purchase, gold, real estate, and many more you can find; your funds should be well diversified into different assets like these, alongside BTC. However, like you said, it is important to always have liquid asset, so you can live and solve necessary problems without liquidating your long term assets.

You are right at this, is more like having a different streams of income flow which has an enormous benefits generally let alone a hedge towards achieving your Bitcoin investment goal and objectives since your other living expenses can be comfortably taken care of without liquidating your long term asset in Bitcoin and similarly it will also be helpful in consistency of increasing your Bitcoin accumulation in order to have an overall good size of Bitcoin investment. At some point just as you have made it clearly priority should also be given to other asset class that are not Bitcoin related.

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Quote from: 348Judah on July 04, 2024, 02:48:55 PM

If you want to make an investment in bitcoin, there are things in which you need to consider first before anything, the kind of investment you're going into, its duration, the source of fund to use for the investment and so on, if you can't afford to use money from what you have earned or the fund that belongs to you, then you don't have to force yourself in making an investment, money for your daily expenses shouldn't be included as part of your investment.

If you are investing in Bitcoin you also have to plan to grow your backup funds because every other money that you have should be your backup funds that you use for other things. You should already have a source of income that should be the main source of your funding for your investment. When you invest in Bitcoin without considering if you can be capable of maintaining your standard of living without selling your Bitcoin, you are not going to be capable of holding for a very long time. Do not think that you have to put all your money into Bitcoin without thinking about other parts of your life. You can decide to get more jobs if you want to invest more money into Bitcoin or decide to learn how to trade very well then you can be trading to get money. With the addition of trading and your other sources of income, you should be capable to having enough money to use for anything that you need.

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If in the future I'm going to have more money in Bitcoin, I will make sure I have more money too outside Bitcoin because Bitcoin might be the easiest way of making money on the internet but outside there are other physical investments that you can make money from but they are capital required and that's why I said more money. This is the mistake some people do, they put all there egg in one basket and buy Bitcoin, it's not bad but learn to diversify at any given opportunity.

The worst of it is when some people use all their money to buy Bitcoin, they bought at the top and since they don't have back funds, they are force to sell at loss making them without any profits and still take loss. Assuming they have back up funds, they would have used the money to sort out any other problems they have and leave their investment on Bitcoin until it has given them a profit to sell.

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Quote from: Reincarnated Sat on July 04, 2024, 01:30:46 PM

Without having patience to hodl for a long term you won't make it that big and sometimes you will end up losing money but if you are patient enough to hodl for long term then you will definitely reap big.
And without a Backup funds you will easily be tempted to dip hands into your Bitcoin investment when ever you have emergency or problem and you are not with cash but when you have a backup funds it will help you in times of emergency or problem.

Investment must be adjusted to needs and we don't just think about investing in living in this world. Especially for beginners who may not have stable finances so they must have a strategy in running investments in bitcoin. The long term is indeed a good choice, but you have to think about the pattern of accumulation of purchases if you want to see assets increase. This is where the ability to adjust between meeting life's needs and buying is needed because if it is not adjusted, both will not work well

The risk of loss is caused by not having money to meet life's needs so trying to sell bitcoin when you need money. This pattern is wrong in running long-term investments because we should hold until bitcoin finds the ATH moment. Reserve funds are generally prepared to take accumulations in larger amounts rather than to meet needs when money is needed.

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Quote from: Doan9269 on July 15, 2024, 09:37:53 AM

You can have your asset in bitcoin and still have your backup fund in this same bitcoin, the only difference from the two will now be on where you will hold them, you can make use of a cold storage for your bitcoin holdings for it to grow as an asset while the backup fund can be held on an exchange whereby you can easily exchange it for fiat when needed at any time, this one on the exchange will be as little as something you can afford to take risk on, since its not your major investment in bitcoin.

It can be said that the risks of investing in bitcoin have decreased significantly with the approval of the bitcoin ETF and its popularity but that does not mean it is completely risk-free. I think the advice to “only invest what you can lose” is still relevant when it comes to bitcoin or any highly volatile investment. So your long term investments, and savings are at risk since your assets are in bitcoin and I don't think even emergency savings in bitcoin is a wise idea. I find it even more risky when you leave your savings on centralized exchanges, don't forget the lesson of Mt.gox or FTX.

If you don't like fiat because of inflation then you can use another stable asset to save, gold can be an option because it is stable and highly liquid.

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Quote from: Iranus on July 18, 2024, 03:04:55 AM

Have you ever thought about the scenario where the market suddenly falls into bear season? Bitcoin suffered a serious dump, losing more than 70% of its value like the 2022 bear season and your exchange accidentally went bankrupt as FTX did. What would you do if all your assets and savings were in bitcoin? Is that strategy still great?

The market can sudden have a push or a crash or less severe, a correction but the market trend does not sudden change. It takes time to change a trend from bearish to bullish and from bullish to bearish. Sometimes the market can have corrections like 20%, 30% in middle of a bull run but it won't break the market bullish trend.

Past vs. Present — Examining Bitcoin's History of Bull Market Corrections

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Fiat has inflation, but in the short term it will not fluctuate and lose value like every time bitcoin corrects, so don't be too stubborn about the concept of inflation and ignore the importance of fiat in the short term. Always having savings in fiat currency will help you a lot in emergencies.

Fiat has inflation in many decades and this inflationary issue will continue to exist. Bitcoin is not here to fix it but it is here as a helpful investment choice for people who want to save their money in bitcoin, and see its value growth with time rather than save it in banks as savings and see money received as interests is smaller than purchasing power loss of fiat by inflation.

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Quote from: Publictalk792 on July 15, 2024, 09:36:56 PM

Quote from: Doan9269 on July 15, 2024, 09:37:53 AM

~snip

That is great strategy to have both long term investment in bitcoin and backup fund in same currency with the main difference being storage location. Using cold storage for your main asset investment allows it to grow in value over time while keeping smaller riskier amount on exchange for easy access to fiat when needed. This approach always allows us to manage risk and potential losses as exchange held funds are smaller portion of your overall investment. It is smart way to balance asset growth and liquidity.

Have you ever thought about the scenario where the market suddenly falls into bear season? Bitcoin suffered a serious dump, losing more than 70% of its value like the 2022 bear season and your exchange accidentally went bankrupt as FTX did. What would you do if all your assets and savings were in bitcoin? Is that strategy still great?

Fiat has inflation, but in the short term it will not fluctuate and lose value like every time bitcoin corrects, so don't be too stubborn about the concept of inflation and ignore the importance of fiat in the short term. Always having savings in fiat currency will help you a lot in emergencies.

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Quote from: Z-tight on July 06, 2024, 09:05:38 AM

Quote from: yhiaali3 on July 05, 2024, 12:23:05 PM

I have experience with this. I was following the DCA strategy for a few months and I accumulated a good amount, but in the end I was forced to sell a large portion of this amount due to some difficult financial circumstances. It is true that I made some profits in the sale, but I sold much less than my target.

Don't you think the problem is that you invested most of your money into a long term asset, if you do it this way, you'd frequently be forced to sell when you do not want to, that's why i have said in this thread already, that i recommend keeping part of your funds in liquid assets that you can easily convert to cash.

Take note as well that BTC isn't the only thing you can invest in for the long term, there are other assets you can diversify into. Finally, even if fiat is inflationary, you should also have some money in your bank account for quick spending.

Exactly, you cannot invest all of your assets because he will undoubtedly effect you in an emergency, and you will undoubtedly sell your bitcoin since you will have no other option and your investment will no longer progress ahead. Many people prefer to invest in bitcoin for long-term profits and price increases. While there are other investments that can yield profits without investing in bitcoin, many prefer to invest in crypto due to its volatility. People who usually sell their bitcoin is because of an emergency, and they did not keep any money in their bank for spending. They all invested it, which is not advisable, which is why some are having difficulty. You should have enough money to spend without depleting your long-term investment.so that you can understand the value of your long-term asset

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Quote from: uchegod-21 on July 17, 2024, 10:15:37 AM

Quote from: HideYourKeys on July 16, 2024, 09:01:10 AM

I believe you always have to keep some backup funds for emergencies... In any case, I would still "save" in bitcoin, consider it like a savings account

Now if you have your emergency fund in bitcoin in the name of savings. What happens when you need it and it eventually the deepest time of bitcoin.?

Many people don't even differentiate between savings and investments, how can a highly volatile asset be used as savings? Just to take a simple example, those who bought bitcoin for $72k 2 months ago and now they need to use this savings. Would they be happy and satisfied with using that bitcoin when their savings lost 10% of their value and even 20% if they used it a few days ago? Bitcoin's volatility makes it suitable as an investment, it is not suitable for use as a savings, reserve, or safe haven asset.

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Quote from: Reincarnated Sat on July 04, 2024, 01:30:46 PM

Without having patience to hodl for a long term you won't make it that big and sometimes you will end up losing money but if you are patient enough to hodl for long term then you will definitely reap big.
And without a Backup funds you will easily be tempted to dip hands into your Bitcoin investment when ever you have emergency or problem and you are not with cash but when you have a backup funds it will help you in times of emergency or problem.

So it is very important to protect your investment, especially investments as volatile as Bitcoin, to avoid unnecessary losses. So it will be a very good move to build your backup funds, while contemporaneously building your Bitcoin, although it may slow down your accumulation speed and may take a bit longer to reach your financial goals, however it's all good as long as your backup funds are being built gradually and strong, because the backup funds are just as important as the investment itself. However, it's more preferable engaging in a slow but steady accumulation with a strong financial backup, than being aggressive with one's accumulation with no strong financial backup which will later lead to one's down fall.

You have a good point if I must say and I believe those who did not have plans in investment are the ones who are not patient. Also, the backup plans of a thing in commensurate with the amount invested sounds like a good plan, but don't you think that if you want to HODL, it might take many years? Can the person guarantee such backup funds to take care of his finances for that long? I doubt that. Otherwise, there will not be time for an investment at all to have had such a big money you narrated secured before being able to invest.

This is why I think you exaggerate this backup plan of a thing, a viable source of income is enough here. With that, you can meet your needs financially and even save more or invest more. Above all, my advice is that if you are investing, the money you invested should be treated as if you don't have it again, then carry on with your life as usual. If you didn't have that invested money, wouldn't you survive? That's the spirit! Nevertheless, having a few excesses that will take care of the immediate needs is still very important to avoid being stranded, but certainly can't be the kind of backup plan you explained.

Topic: Growing both your Bitcoin and backup funds. - page 2. (Read 1079 times)