Topic: Growing both your Bitcoin and backup funds. (Read 1023 times)

Everybody who is knowledgable and has been there on the market for quite a long knows the benefits of holding BTC and in general what it stands for, why it's so important, and why it should be viewed as the coin it is today.
Thus, yeah, everybody has the ability to join the rally for BTC and have some skin put into it. And in the future, they will be rewarded.

They would put up some limits for sure and they would be able to utilize DCA if they have a stable source of income.
And after proper analysis and weighting out the risks, they would be able to get the boons of it in the future.

People out there will not thinks about that because they lack of knowledge and only follow what other people suggest to them. But when they want to learn more about Bitcoin investment, they will not directly invest their money in Bitcoin but will learning how they can start to invest in Bitcoin properly. By learning more about Bitcoin investment, they can grow their Bitcoin amount steadily and not just buy at once.

They also know how much money they should prepare for start investing in Bitcoin and how long they can do that. They will not just use too much money but they will calculate how much money they have so they will know how to allocate that money to start. Investing in Bitcoin needs patient to hold and while they learning, they will understand that Bitcoin investment is not a way to rich in one night.

I do agree. For starters, as you said, you should be able to stand on your two without crypto at all, then you can use some funds each week or month to get invested into BTC mainly.
Newbies usually think that there is a life change around the corner just by going into some memes, however, the reality is far different from that.

Anyone who understands what Bitcoin means will not even think of using his or her money for daily expenses for Bitcoin, bitcoin is an investment that you can't predict and anything that you can't predict you should understand before taking any step, many newbies find it difficult to understand because of the way some of them are introduced to bitcoin, some people only believe that bitcoin is an investment that brings profit and they are going to take the risk to make a profit at the end.

As a newbie you have to be capable of investing in Bitcoin, what I mean by capable is that you should be well-balanced so that even when you invest in Bitcoin you can still take care of yourself for many years even when you have a problem you will not think of selling your coin to solve your problem, although we don't know the type of problem we might face because sometimes a problem comes that even affect our savings but at least we should have a backup fund that no matter what happened it will not affect our investment, bitcoin is a good investment with good profit but we should not let the profit to push us to invest all our money and at the end, we will regret it.

Yeah, those should be the money you are willing to freeze to see them grow into the boons for later, otherwise, it doesn't make any sense to invest them and then put them out during the time the market does its magic with BTC as the main source of reliable investment.

when you call it investing meaning you are allowing your funds to stay longer in that sense meaning the only thing investors of bitcoin should know is that how long can they keep holding and how much they can suffer for some losses that may come along the way.
aside from those they can just easily put money on this and keep waiting for longer time at least 4 years cycle .

You have to check on these "experts" and who seem much more credibility when making predictions about the market. I have seen some people brand social media influencers as crypto experts just because they make content about crypto but that is not true at all. A lot of them did not really spend time learning and getting to know the market to make the most accurate prediction possible.

Anyway, I don't think we should depend on what the media is saying that much because there will always be a difference of opinions between two sides. Just because one expert thinks this way doesn't mean his prediction is right. People will believe what they want to believe in.
Traditional DCA has no regard for prices. Its aim is to regularly accumulate coins over a regular period of time and eliminating any impulsive move due to emotional factors. But you can also DCA when the prices are low or at least as low as you can afford it.

Yeah that’s just the facts about the Bitcoins investment anyone who really wants to invest in Bitcoins most have enough capital, and the Bitcoin investment is not about taken a loan or borrowing form friends is better to invest what you can afford to lose then go take a loan just to invest in Bitcoins; that’s is the very wrong idea before a person should start a investment better the a person to have *three three of what he wanted to start a investment with, so that it will know have any problems in futures everything will be moving forward smoothly that’s all about the Bitcoins investment.

Borrowing funds as primary capital to invest in bitcoin is never recommended, but some investors may have done so. Bitcoin price volatility could slow down their loan repayment, especially if the price falls. The recommended budget to invest is unused budget or saved money for the long term, they can buy bitcoin instead of holding fiat. But having a budget reserve is always something to consider so they can make some adjustments when the market is not what they expect.

Exactly. Also, if you are not earning enough money that will even make it comfortable to meet your needs, then I will advise such investors to slow down with bitcoin investment because there is a lot going on in the market and it will require a very long time, so you won’t be able to leave your funds in there for a very long time. Also, don’t borrow money to invest, and don’t use the only money you have in your wallet to invest. Although there are many things to consider while making an investment plan,. 

With the rate of increase in natural disasters and conflict, even real estate investments are no longer safe havens. There was a conflict in my location and people were forced to sell their houses at a giveaway rate to flee violence. However, real estate and gold have lesser risk than Bitcoin.   


Diversification is important because it spreads the risks on investments. Some people prefer diversification of their crypto holding by buying Bitcoin and altcoins. But for me, I prefer to invest in Bitcoin and other ventures outside the crypto market. This is because Bitcoin practically influences the price of altcoins.

Secret to these crypto investments is going in slow and steady, I know we all want to catch that big spike in price that can happen any time but unfortunately the first investors of Bitcoin caught that and can't use same strategy ..and also we need to consider proper risk management because market's will not always go our way.

And besides you don't have to be aggressive investing in crypto with a huge portion from your salary, that is why we have strategies like DCA to manage this FOMO feeling...slow and steady wins the race, don't be side tracked with what you see or read online..we all get there eventually

In every form of investment, no matter how safe it appears, it's important to always play your own safety too, knowing fully well that nothing is entirely certain, so the 50% savings is not actually bad since we can run back to that whenever the person needs cash, but for me, I won't save up to 50% of my funds instead I will rather invest in something I can make a profit on a regular business while I diversify the rest of the funds to other things, not just digital.

What you said is much easier to understand than what he said. Since the most important thing in investment is money management, one can build his Bitcoin portfolio and at the same time set aside money as an emergency fund. In this way, one can use the emergency fund when the situation is urgent and they will not disturb the Bitcoin investment that they have planned before. This is a wiser and more appropriate way for someone who wants to invest in Bitcoin, because they can minimize the chances of selling their Bitcoin assets at the wrong position and at the same time they can get emergency funds to cover their lives or for other needs.

Does one really need to kill himself or herself over investment? Well, to me I will say no because targeting your investment to a well know asset such as gold or real estate to have peace of mind if you think Bitcoin is extremely volatile. Besides there are people who makes investment on a target of short time like when there profits is reached they sell off there investment to have their profits this could be in bitcoin or in real estate.

Patience is the strictly the answer to growing of portfolio in the market. Ready to hits top profits? The market is open for everyone, we choose profits that are profitable for us and they have good road map in the system. We have alternatives to explore in the market but on a second thought, we ought to be extremely careful with the market, because it's filled with volatility and nobody likes to end up on the losing side.

We grow bitcoin in several ways, one can easily be mining bitcoin, or simply be buying them and keeping stored in his or her portfolio. That's also consider safer because the market we know is growing when it comes to extension and also becoming popular in the world today. Crypto have saved a lot of life's out there in the real world. We know how dangerous and cruel life have been for the common man, so it's always advisable to plan before one invest, atleast to know the seasonal bull and bear changes in the market.

What I think is that no matter what kind of investment you are going to dip your feet into, you should not always put all of your money into a single investment.

Diversification has been a concept well known among the community but people need to understand the actual importance of it. I always tend to cut my money into 50.50. 50% for investing 50% for saving.

From the 50% of the investment, I will then distribute it into different investments

I do monthly savings on that one. 60% goes in ETF's and 40&% in cash.

It's from last month.

Stop deleting my posts!

I bet it's nutcase Luke Jr.

You are right, first having an income that can meet their primary needs is of course very important for anyone who is going to invest in the long term because it will be very unlikely that someone will be able to carry out their investment in the long term when they have not been able to meet their primary needs and I agree with what you said to be able to postpone their investment first when they are not able to meet their primary needs and I think They must first focus on increasing their income by working harder so that they can realize their desire to invest and will also be able to survive in the long term according to their desired investment targets.

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.

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?

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.

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

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.

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.

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.

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.

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.

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.

Dollar Cost Averaging with costavg.com include exchange fee

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.

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.

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

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.

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.

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.

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.

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.

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



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.

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.

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

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.

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.

The only way to protect your investment through Bitcoin is to be informed on how it works. It's because you're the one that's going to be trusted by yourself in handling it. There won't be a bank that will hold it for you unlike them that has portfolio manager for their stocks and other assets.

And that's why protecting as if it's only volatility that you should be worried about buying Bitcoin, no it's not the only thing there. It is part of investing even in other investments because that's how we make money from it.

So, starting from how to protect yourself from potential cons, hackers and scammers, a newbie really needs to invest their time in learning the basic concepts of it.

I know you are not a financial expert, but some who earns like $1k monthly, how much do you think will be his emergency fund. I mean how much will it get to and he will stop and focus on investing according to you.

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.?

Maybe some of what he wrote are still new to us but the the word that he highlight there which is called patience, is indeed very common and always been mentioned here across the forum. Another word that he highlight is backup funds, and this one is also new to me but IDK about you, though I'm sure that it was rarely being mentioned here.

The only thing is that a lot of us are already doing it because it is also important. I think that the word back up, can mean two things, and that is it's okay if it is only less superior and the other would be is it must be equal to the other that we currently have, so that there will be less problems that we will experienced.

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

On the contrary, I don't consider this a great strategy. First, using bitcoin as an backup fund is a bad idea because when it comes to emergency funds, we need to keep its value stable and less volatile, not as volatile as bitcoin. A backup fund means we can use it immediately, at any time, and it has a stable value. The second thing is that leaving backup funds on exchanges is too risky because they can be frozen or lost at any time if the exchange crashes or goes bankrupt. Exchanges are not more safe and secure than banks, make no mistake about it even though they are both centralized institutions.

There is nothing new for me in this thread. For a long time I've been advocating about following some basic personal finance principles before you buy bitcoin and one of them is having a so-called emergency fund or backup fund as the OP says if you prefer. What I don't agree with is to grow it as well. Once you have your emergency fund fully funded you should stop adding to it. You don't need more, it's fiat and gets devalued, so you should only grow your investments.

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.

Your point are well utilized.  However, one does not necessarily need to have only one back plan. You can have as many as possible so that when one fails, you pick up the other continue your race. Bitcoin is not a get rich quick something. It requires time so much patient just like you said.

Well said, OP. Emergency funds is crucial while investing in Bitcoin in other to be balanced and not sell off your Bitcoin when you're not suppose to, but I believe that even before you invest in Bitcoin this is a necessary financial knowledge one should have.

Investing in Bitcoin doesn't mean you gonna risk everything, or become very aggressive where you don't pay attention to other areas of your life and finances, Jobs.. we should all understand that investment is all about calculated risk, lets not allow our expectations consume us.
Have a plan and be disciplined as you invest and not being pathetic in the name of investment.

I didn't recommend go to fully with Bitcoin investment, use all money for investment in Bitcoin. I never said this!

Investment is risky so is Bitcoin investment. You must reserve money for other things, not only spend all your money for investment. Emergency will need money and you must have it available to use. You can diversify your investment portfolio, but I don't advice to do it to altcoins that are weak, lack of solid idea and dedication of project, developer team, hence can die easily in bear market.

About altcoin deaths

Things begin to be more complicated, that is not recommended too.

But if you want to complicate the procedure, go ahead with some tools.
https://www.worldgovernmentbonds.com/

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.

We can actually say patience is one of the attributes of a true Bitcoin holder because if you are not patience especially when you have some funds saved up in Bitcoin then the final results to your savings would probably be a messy one and I relate this to what you just said about how long the bear market can actually stay and so having an emergency funds would go a long way too because it would save you the stress of tempting with your coins because believe it or not #bitcoin.is.here.to.stay.

It's easy to say that you should do one first before the other especially if you have the innate capacity of being able to do such. It's hard when you're put in a situation where you can only make a choice out of the two. For most people, especially those who are still new to the bitcoin industry and cryptocurrency world they are faced with such choices cause at the end of the day, they wanna claim a stake at having a millionaire-maker in their portfolio, but at the same time, it's not that bad to think that maybe someday bitcoin might flop and when that happens they wouldn't have such backups.

I could still remember when I was first starting in the bitcoin industry. I didn't even have a financial plan or whatever. I took a major risk and figured that going for money makers at this early stage in my journey would work better than having to save money for when rainy days come. And while I ended up losing it all anyway a few years ago, I was able to earn it back thanks to the knowledge and the lessons I learned in the past. I'm telling this so you know that I had the privilege of still being able to commit mistakes and not lose it all. Some of us don't.

Do not persecute nor belittle people who chose bitcoin over having savings, or vice versa. To them that is the most sensible decision given their circumstances. Support them at the very least.

I myself do not agree that all the money we have is put into bitcoin investments, because for this type of investment there are strategies that can be done without having to invest all the money you have. Apart from that, to make investments we have to pay attention to other things such as reserve funds, such as funds for emergencies which are not possible to handle emergencies, we have to sacrifice the investments made, especially if the results are not satisfactory enough or make a loss.

Even borrowing money from friends will not guarantee success, we know that everyone is sensitive to money, let alone other people, even brothers and sisters, sometimes it is difficult to help each other when it comes to financial problems, so we ourselves have to do everything well, try not to involve other people in the process. us, even though there are definitely people involved, make sure that person helps us fully.

Patience in anything we do always gives a good result, in investing in Bitcoin, you don't need to rush,as a newbie you need to rush to buy your investment because you might become stocked since it is your first time,you need to study the process and have a fixed income that will keep you going ,a newbie does not understand that there need to be a backup and reserve funds if you want to successfully continue in the investment. Your backup/emergency funds help you to buy more when there is a dip in price or when you are stocked with financial challenges,so you can fall back to your emergency/ backup funds to accumulate your Bitcoin account for a long term so that it will not affect or have a break in hodlin .

At this time the market is prone to volatility, in such a time it is better to do DCA or for those who do short-term trading it is the best opportunity to buy coins and sell back to get a good profit but the market is running fast and I don't think it is better to hold now because the market may fall further so it is better to either do DCA or short-term trading.

Building a portfolio with the best coins is a good strategy but for long-term trading or long-term holding, I trust BTC the most and I am not in favour of holding altcoins for a long time. Yes, because of the way the market is going right now if the market goes down, alternative coins will go down a lot.
So if you are buying alternative coins then my suggestion is to do DCA if you are holding, if you are doing short-term trading then this is a good opportunity for you to buy and sell when it goes up a little and secure some profits.

Personally I have experience first hand how impatient can make you lose big time in this space. I had the opportunity to finally make it big but my lack of patience denied me the opportunity. The feeling sucks no doubt when you look back at what would have been.
Experience is the best teacher,  this days, I tried to hodl certain projects I see potentials in them, dump the ones with no prospect and most of all I tried to build my portfolio with potential coins.
It is also important to have a backup funds for stormy market like what we are currently experiencing. Situations like this in most cases are blessing in disguise when the market fully recovered.

Smart move on keeping that backup fund. As you are aware, "don't put all your eggs in one basket." That's the name of the game here. This isn't about rapid riches. It's about keeping strong, clinging tightly, and surviving the storm. Like anything else, Bitcoin ups and downs. The real victors, though, are those who remain calm under trying circumstances.  They stick to their strategy since they have one

That's how you should be using your backup money. You are providing yourself with a safety net so you may weather difficult times and emerge stronger on the other side. Though it will take a bit more time to see those large returns, trust me; it is well worth it. This concerns laying a strong basis and a safe future. And you win in this way as well

Yes, of course, the problem is that I invested almost all of my money in long-term holding and did not leave some reserves, so I had to sell some of it to meet some necessary financial needs. I was hoping that it would reach the desired goal before I had to sell it, but unfortunately that is what happened.

I also agree with you that we should keep a cash or a bank account for quick spending. This is very necessary because we need to spend some money on monthly expenses.

Very well said. Even if we always address Bitcoin as the highest ROI investment, still the fact remains that its future is left uncertain and unpredictable. Trusting all our funds into bitcoin will bring a lot of risks, thus losing everything if we end up our bitcoin investment unsuccessful. The only way we can grow our back up funds is to diversify our investments and not just focus on a single source of profits. That way, we won't face financial crisis in the future.

If someone has a sustainable source of income, they can always allocate some percent of their income into Bitcoin investments and also allocate some for emergency funds. That's the right way of investing in Bitcoin because if an individual doesn't have a sustainable source of income, he or she might not be able to hold their Bitcoin investment for a long time, but if you have a source of income, you can as well save some money even while investing in Bitcoin. 

Some people who don't have an emergency fund can still get money from their other source of income without touching their Bitcoin investment. Unless it's a kid who is investing using the money he or she gets from parents or guidance, The kid might not spend their Bitcoin too because, any time they have any need, their parents can provide it for them. 

Having an emergency fund is important for long-term holdlers because it helps to avoid selling your Bitcoin prematurely. But keeping Bitcoin is not a do-or-die affair. Some situations will force one to sell his coins because he really needs the money. I don't think there is a need to regret selling your coins because you need the funds to solve a pressing need. People were forced to sell because of health issues or loss of jobs. My mother will always that it is better to sell an asset to solve a problem than to borrow.


When people see the volatility of Bitcoin, they just assume that they can invest everything they own and get a quick return from investment. They become disappointed since the Bitcoin price is not predictable. Out of financial pressures they end up selling the coins at a loss. Having a long-term investment mentally is important in Bitcoin Investment.

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.

With backup funds means like you should have a reserve in terms that you need to spend money for some unexpected happening. This is what mostly being called emergency funds. While the logic of what OP has said is true. I have seen people that I invest together at the same timeframe but then they're able to lose their grip through their holdings because they were in need of money and they have no other place to pull money but to sell their Bitcoin holdings even if they don't want to. So, with that, it's very important to have that emergency funds just in case that unforeseen financial challenge comes to you.

Patience is a lesson Bitcoin teaches very well to those willing to keep going. A bear market can last for 2-3 years, and things can keep getting worse until they finally start to get better. And sometimes when they get better in terms of the price, you get crazy transaction fees, which once again require you to be patient and wait.
As for backup funds, some should be in a relatively stable fiat like the USD, but I believe it's okay to use Bitcoin as backup funds and, as the op puts it, dip hands into BTC investment when there's an emergency.

I agree with you, you have a good point. In general, this is true. If you do not have spare funds, it is difficult for you to continue with the Bitcoin DCA strategy  for a long time, because you will be forced to sell some Bitcoin in the event of any financial emergency.

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.

That's true tho. but this actions mostly taking out of ignorance.
you might be favoured with the actions because you had no issues financially in that process or during those times but if there was an unforeseen circumstances that had took place while most of your assets where in BTC already you would have noticed more of the value of emergency funds before investments.

It's more like a backbone to your investment.

Investment should be done with money that is spare money and beyond that, an investor has other money reserves to use, for other things beyond investment such as for emergencies like you said.

Spending all money for investment is risky and it's no longer a story of afford to lose or not afford to lose, when it comes to emergency, you need to sell your bitcoin at any price, even -50 or lower than your accepted price. It's not a good choice if you think of other options like knocking doors of relatives, friends to borrow money for emergency.

Invest like this is not wisely in personal financial management and it's not recommended.

That's correct, but the point is simple and has been repeated over and over again. Invest only what you can afford to lose.

Now, if you invested in Bitcoin but when an emergency arises you need to convert it, that means you invested more than you can afford to lose. If you invested in Bitcoin and after a couple of years you need to liquidate it even with a loss, that also means you have invested more than you can afford to lose.

How much can you afford to lose? That amount which you can forget forever after you invested it.

When you have decided to invest in Bitcoin for your future, of course you will have a good understanding of the risks of investing and don't decide to invest without having any understanding of this, of course this will cause you to suffer losses on the investment you will carry out.

If you choose to maintain it for a long period of time it will certainly be very good and when you have experienced the benefits of the investment you have made, of course you can enjoy some of the profits you have earned and if you choose to maintain it for a longer period of time of course This is not a problem, but you must still hold other funds to be able to meet the needs you need.

Backup bitcoin is good idea. It help to future savings. So don't lose the bitcoin. If have bitcoin hold it long time . Bitcoin price is any time hit the price. It best investment and savings your Life time. Hold time hold the Bitcoin easy wasy got more profit.

You have explained this well. I looked like the OP didn't get it well. And you have done justice to it with this sound explanation which I would have also written. I always think that DCA method is the most suitable method for people who are employees, rather than business owners. Because as an employee with a family and numerous bills more than your salary can cover, splitting your income and have a small fixed amount go to investing in bitcoin, while another goes to emergency/back up funds is simply the ideal thing to do. The others would go into the family upkeep and other things. While entrepreneurs and other big business owners or those whose income are massive can afford to invest lump amounts in bitcoin without bothering much about DCA or back up funds as their investments may be more diversified.

Your points are excellent. You have nicely discussed the importance of backup funds. Building a backup fund is a smart approach to investing in Bitcoin. I completely agree with the two important key points you mentioned are patience and backup funds. Patience is very important. Those who can be patient can do much better in the long run. If you have a backup fund then you don't need to sell your bitcoins in an emergency. You can meet your needs with your backup fund.

To succeed, there are more conditions than these.

A good strategy for your investment is start of everything. Strategy includes your capital management, for other things beyond investment and how much you allocate your capital for investment.

How you do purchase for your investment. I recommend you to apply Dollar Cost Averaging DCA strategy.
https://costavg.com/

Choose a good wallet to use: open source, non custodial.
Back up your wallet and let's see

How to back up a seed phrase.

Other people are also able to do their Bitcoin investment as emergency funds, for example some people who bought some cheap Bitcoins before and if they will see it, they have profits already but instead, they keep holding it for some reason and some people like me, I already tried it too. I am able to sell some of my Bitcoins before for some emergency cases even I have separate emergency fund.

Perhaps with your good income you can split out your investment percentage and you would still be very much okay.
Emergency funds is a very important thing that an investor should always ut in place because it's more like the ground to survive every situation, people who don't consider it always fall victim of bankruptcy.
if eventually one has put in some stash into bitcoin it's left for them to be patient with their investments especially in bitcoin because bitcoin is not a Ponzi scheme or get rich quick investment.

Yeah, I agree with this too, I don't think that it's really in our advantage to be putting all of our eggs in one basket, as much as I'd love to do it, I think that still having an access to your emergency fund without the worry that you might be getting it out at a loss is a big deal to me, I can't imagine myself selling all of my bitcoin for the sake of an emergency and that emergency matches to the time that the price of bitcoin is at a really low point in the market, better off to have a money stashed/invested in bitcoin and have some insurance rather than doing it the different way, probably also for the best too that you diversify your investments so you don't worry about money.

Our funds should not only be limited to bitcoin as there are other potential investments that could also bring potential profits and add more funds into our current emergency back up. Learn not to put all your funds into a single basket, that will only increase the chance of losing. Instead, grow your bitcoin as much as you also want to grow other sorts of investment, but leaving your back up funds untouchable unless if unforeseen events suddenly happen.

And if I may add, if you have extra funds, better course thru your funds to other tangible assets such as real-estate, jewelry and precious metals. One should not only build his back-up funds in terms of fiat or other currencies, but much better if you will have other assets to fall back into.

Savings is also necessary aside from allocating your funds to other assets. It is always best to have some emergency funds if you badly need it. At least you won't be in a tight position with lenders if you happen to require some funds.

Well, having a backup is a good strategy when it comes to Bitcoin investment. you just didn't emphasize on it the way I had expect you to. You don't necessarily have to divide your Bitcoin investment to create your backup fund. What you should be dividing is your source of investments, like your salary or earnings. Then you continue investing using the dollar cost average (dca) method. Your back up fund is just like a spare money you are saving on a separate account, to cover up any emergency. This is separate from your expense funds that you use to cover up bills and maintenance. It's just only needed when there's an urgency for funds.

I don't really know, but I think I have been thinking out of the box for sometime now, about this supposed "backup funds" that most people make attributes to when it comes to Bitcoin investment. You might be wondering what it is. Let me give an illustration:

Assuming we are not into any form of investment like Bitcoin and others, we would still be living out normal lives right?, Which means the income we get are our major means of survival, and not our backup funds.

Then why do most people postulate the idea that when investing in Bitcoin, you have to sideline a backup fund which would aid your day-to-day living?. Please correct me if am wrong, but I think such idea is not convincing enough.

If we can consider our source of income as a major way of survival when we are not into any form of investment, then why can't we consider the money we've sidelined from our DCA funds as what we can survive with?, rather than identify it as a backup funds?.  For more simplicity, what I mean is that: assuming I received my monthly salary of $100, then I deduct my Bitcoin investment funds of $50, then it won't make any sense to consider the remaining $50 as a backup funds, since it's clearly what I need to survive for the full month. We can maybe use the word backup if the salary is been split into three places, maybe $50(Bitcoin investment), $40(main survival funds), and $10(backup funds). This is just my opinion.


Of course, you've identified a key point (Patience) necessary for investing in Bitcoin, but I think you didn't mentioned something, and that is: your level of accumulation.
The unit or amount of Bitcoin you accumulate also has a huge say on how well your long term hodling can profit you. You can't buy $500 worth of BTC for hodl, and hope to get better result compared to someone who bought $5000 worth of btc.
I believe there is power in long term hodling, and also there is power in good amount of accumulations.

It depends on everyone size of income that will determine if you can invest in other investments along side with your bitcoin investment. If the investor is earning little and not much, it is better that he focus more on accumulating bitcoin with his discretionary income to a level that he feels he has enough Bitcoin and wants to invest in a different line of assets. This is when he can diversify to other assets. Real estate is not an investment for the poor or average but for the rich which will make me diversify into real estate as my last investment.

In whatever kind of investment that we are into be it real estate, gold or bitcoin emergency funds is very important be will prevent one from selling part of his investment when it is not of his will. If you just invest all your money, there is high possibility that your investment will be sold when a real emergency hits you. This is why the rich survive more than the poor when investing because they have various means where they can seek funds from without touching from their investments that is growing.

You are right but someone using the DCA strategy still needs to have emergency, reserves and float funds also known as the Backup funds reasoning being that one can have an emergency or problem that will be more than your salary it is those backups funds that will help you not to dip hands into your Bitcoin investment.
I'm using the DCA strategy but I still have my backup funds and am also building it along side with my Bitcoin, yes the DCA strategy is very nice and it gives one freedom but you still need to have a backup funds to secure your investment because you never can tell what will happen, I had a story in this forum were a man using the DCA strategy had an emergency that made him dip hands into his Bitcoin investment because he did not have a backup funds. Now that Bitcoin is in dip any one using the DCA strategy with a strong reverse funds also known as backup funds can use it to accumulate enough Bitcoin.
So even if you are using the DCA strategy like I'm doing is still very necessary to build a strong backup funds if you don't want to be in a situation that will make you dip hands into your Bitcoin investment in future.

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.

It depends on the method of Bitcoin such investor adopts because not all method will require a momentary purse in the accumulation process. If it is the investor is using buying the dips and lump sum, then it will be possible to purse until their is enough liquidity within his system before he continue. But for someone using the DCA method, he would have already made his calculations base on his income to accommodate the Bitcoin collection while there is already reservation for the emergency funds. Holding the Bitcoin depend largely on if the concept pf emergency fund is in place and using the DCA method helps because it does not create any form of pressure on the investor. I strongly recommend the DCA method for new investors like you because it eliminate most of the problems you might face.

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.

A lot of people especially my follow newbies have already started there Bitcoin accumulation journey  before having the idea of securing there Bitcoin investment by having a backup funds such as emergency, reserve and/or float funds and they are now confused on what to do and to be honest I was among this category of people, some people immediately they get this knowledge or idea they pause there Bitcoin accumulation and start building there back up funds also known as emergency, reserve and/or float funds and is okay, but one can still be building his Bitcoin investment and also his back up funds at same time, the only thing he needs to do is cut the percentage he was investing on his Bitcoin and then channel some to his back up funds.

This is what I have been doing ever since I got the idea and it has been working perfectly well for me and it those not affect me in anyway, it is very important to have a backup funds in other to secure your Bitcoin investment there are two things I believe one needs to succeed in Bitcoin investment which are.

1. Patience.

2. Backup funds.

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.