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Topic: Habitual Bitcoin Buyer-Not what you think - page 3. (Read 653 times)

legendary
Activity: 3010
Merit: 1280
Get $2100 deposit bonuses & 60 FS

I want to stack as many sats as possible especially at its current price range, but it has become almost a destructive behavior or a sickness. I DCA into BTC everyweek on a schedule, but there is alot of extra being bought. You would think I was in a hurry or something like its going to go to 500,000 and never come back. (mental perception)lol. I know I need to instill some discipline and get cash plush especially with our economic outlook right now and be able to weather the storm if it comes without having to sell to cover an emergency or a bill. If I was single with no mortgage and no kids, I wouldnt care but.....


I think the problem lies in financial management and I guess you know that already.  It is quite hard to stop if you have an obsession with things.  Since you know the problem already, I bet you can manage it easily.  You had not tried to control yourself because you know and believe that one day all your DCA-ing will give you a huge profit like those who invest in the early years of Bitcoin and you don't want to miss accumulating since BTC is selling at a discount at the current market price.  If you wanted to stop your obsession, you must convince yourself that you had accumulated enough.


Thanks all for your kind words and advice. I consider myself done for the month except for the one weekly recurring automatic buy at the end of the month. I am going to work at this and also not try to watch the price so often as well, which I’m sure is a factor. If I see the price drop from 30k wick down to 25k again, I’m going to leave the house and leave my phone at home on purpose. Lol. It’s funny but not funny. But thank all of you for your input.

this sounds like a good start.

member
Activity: 66
Merit: 25
Putting all your spare money into Bitcoin and not having a fiat safety net is dangerous and irresponsible. You never know when you're going to have an emergency - an issue with health, a natural disaster, unemployment, a broken car or something that requires fixing in your house - lots of things can happen in life that require immediate spending. And if you only own Bitcoin, it means you'll have to sell it, and if you're currently at a loss because your average price buy is above the current price, you achieved the opposite of store of value.

What you just said above needs to be printed, framed, and hung on a wall. It does not pay to be "scared as shit" when something happens, then it hurts worse when you're cash broke plus have to sell at a loss. Perfectly said.
member
Activity: 66
Merit: 25
We don’t know when we are going to stay at these lower prices but it’s not like we are going to the moon next month.
Don't worry. There will be plenty more large altcoins collapsing in the future which will bring the price down and let you buy some cheap bitcoin.

You always hear about how many BTC there is left in circulation and all of these big companies and whales are buying now a days so it creates a sort of panic and sets a “get as much as you can before their all gone” mindset.
As above, there will never be a shortage of newbies and other weak hands willing to sell their bitcoin to you at a discount.

The general advice of don't invest what you cannot afford to lose holds true here. You should never go in to debt in order to buy bitcoin, and skimming money off your bill payments and risking going overdue is doing exactly that.

There is a great flowchart on how to manage your fiat income from the Personal Finance subreddit (https://www.reddit.com/r/personalfinance/) you can view here: https://i.imgur.com/lSoUQr2.png
Obviously, such a sub will never mention bitcoin and so it doesn't appear on the chart, but in my opinion you should get to step 4 or 5 before you start buying bitcoin. That means paying all your bills in full, maxing out any retirement fund matching you can get from your employer, paying down high interest debt, and having an emergency fund of at least 3 months expenses. Once you've done that, then whatever money you have left over each month you can start allocating to where you prefer it to go: Retirement accounts, fiat investments, bitcoin, etc. If at any point you find something from step 4 or 5 (bitcoin) starts encroaching on something from step 1 (paying your bills), then you have done something wrong and need to re-evaluate your priorities.

You are absolutely correct. Reality check time.
member
Activity: 66
Merit: 25
I think a lot of people have that way of thinking. Michael Saylor said before that he used
to go to bed at night worrying that he didnt have enough Bitcoin!

DCA is just that, it can happen over a long period of time with whatever finds you allocate,
There are many people who would love to put $50 per week into Bitcoin.

The priority is keeping a roof over you and your family's head and making sure bills are paid
and food on the table. Bitcoin after that is the next important thing.

That is very true and I should feel blessed. i already spent waaaayyyy too much this month. Instead of being proud of it, in hind sight, its kind of embarrassing.
legendary
Activity: 3024
Merit: 2148
Putting all your spare money into Bitcoin and not having a fiat safety net is dangerous and irresponsible. You never know when you're going to have an emergency - an issue with health, a natural disaster, unemployment, a broken car or something that requires fixing in your house - lots of things can happen in life that require immediate spending. And if you only own Bitcoin, it means you'll have to sell it, and if you're currently at a loss because your average price buy is above the current price, you achieved the opposite of store of value.
hero member
Activity: 1064
Merit: 843
An example is CZ, he said that you'll not be rich if you don't know how to hold. And meanwhile, he's the richest billionaire in Asia and then amassing a current loss of a total of $89B. But it's due to his portfolio is down and when the market goes up again, that will shoot him up again with billions of gains.
He's not become a billionaire by holding Bitcoin alone, he have the most popular and highest trading volume centralized exchanges. His profit mostly because of the exchanges, not the Bitcoin, look how ridiculous he charge fixed withdrawal fees while Bitcoin fees currently is pretty cheaper.

I am going to work at this and also not try to watch the price so often as well, which I’m sure is a factor. If I see the price drop from 30k wick down to 25k again, I’m going to leave the house and leave my phone at home on purpose.
I know it's frustrating to see our portfolio are decreased, but the golden rule if you want to start to invest in Bitcoin is HODLING. Bitcoin already faced many crash events, it's normal the price drop 10-20%, since it ever dropped 80%.
member
Activity: 66
Merit: 25
How have some of you stopped doing this over leveraging. Crypto rich but cash poor. Tips and advice appreciated.
With what you explained above, I have not seen you using any leverage not to talk of overleverage or what so called. Leveraging means you are borrowing and it is a term used most in crypto while trading in a way traders can borrow x amount of money with certain amount of collateral.

But your case is not the same but totally different, just that you earn and buy bitcoin with almost all or all your money while not having enough in cash and the need for cash may arise, but you think bitcoin price may not favour at the time and not able to sell.

I will advice you to just not convert all your money to bitcoin, have some for emergency in fiat if you feel good that way and you will be able to have fiat during emergency purposes. The fiat converted to bitcoin every week should be for long term and not short term, in a way you will not even think of converting to fiat for like 2, 3 or more years.

Yea, that’s one that I don’t do( borrow to get more). What I meant by over leverage is now the crypto definition. I meant over leverage as in putting more liquidity into assets that aren’t immediately available. Or to allocate too much into one thing. Yep, if I was to hoard cash savings like I did for Bitcoin in one month, I’d be doing ok, but it’s always in hind sight when looking at my budget for the previous month. I look at my investing category and go, “Jesus!!!” I needed to have this discussion because the more I talk about it, the more screwed up and ass backwards my actions seem.



Thanks all for your kind words and advice. I consider myself done for the month except for the one weekly recurring automatic buy at the end of the month. I am going to work at this and also not try to watch the price so often as well, which I’m sure is a factor. If I see the price drop from 30k wick down to 25k again, I’m going to leave the house and leave my phone at home on purpose. Lol. It’s funny but not funny. But thank all of you for your input.

[moderator's note: consecutive posts merged]
sr. member
Activity: 2436
Merit: 455
ok, I know for a fact that I am not the only one, but Im having an issue with it. I discovered several months ago, that I had a personal liquidity issue. My income is decent, but have little to no liquid savings. If I save a few hundred bucks, by the end of the month, it has gone into bitcoin. The ideal picture is to have an emergency cash savings and to have some dry powder on the sides to buy the dips or DCA into my bags, however, I end up DCA-ing anything I have left over or think that I might have left over after bills and even then, sometimes, I may sacrifice $100 of a $300 bill knowing it does not have to be paid for another week.
I want to stack as many sats as possible especially at its current price range, but it has become almost a destructive behavior or a sickness. I DCA into BTC everyweek on a schedule, but there is alot of extra being bought. You would think I was in a hurry or something like its going to go to 500,000 and never come back. (mental perception)lol. I know I need to instill some discipline and get cash plush especially with our economic outlook right now and be able to weather the storm if it comes without having to sell to cover an emergency or a bill. If I was single with no mortgage and no kids, I wouldnt care but.....

How have some of you stopped doing this over leveraging. Crypto rich but cash poor. Tips and advice appreciated.

It all boils down to discipline and self-control. Foremost, you should assess, evaluate, and establish your boundaries and limitations in investing in bitcoin and other cryptocurrency. You should allocate a certain amount only intended for investment or your relaxation doing bitcoin buying. Everytime you have money, make a list of the things you will budget your money to. List all of it form your necessities such as rent, groceries, and bills, savings, emergency fund, allowance, cash on hand, and investment purposed in crypto. Make an intelligent division of these in accordance to your lifestyle.

You shouldn't let yourself be emptied out of cash because emergency situations can happen. You cannot rely on anyone but yourself in dire situations, hence, you should be prepared yourself. Having cash every time is important because there are certain businesses and establishments that don't accept card or e-money. Typically, these enterprises are the small and local ones.
hero member
Activity: 3136
Merit: 591
Leading Crypto Sports Betting & Casino Platform
An example is CZ, he said that you'll not be rich if you don't know how to hold. And meanwhile, he's the richest billionaire in Asia and then amassing a current loss of a total of $89B. But it's due to his portfolio is down and when the market goes up again, that will shoot him up again with billions of gains. It's okay OP, you just need to think that the current bitcoin you hold shouldn't be spent in nonsense things and if ever you come up to the point of selling to an important matter, that's still a win for you. Allocate your budget wisely, spend for your needs as a family man and then for bitcoin as an investor. Take one step at a time.
legendary
Activity: 1050
Merit: 1100
I think you are just a diehard Bitcoin investor that have so much confidence on the sustainability and profitability of Bitcoin. I like your destructive behavior and am open to learn from you. Its a good thing you are not addicted to drugs or alcoholism but to Bitcoin investments. It is good you are investing and not wasting. Although it seems risky since you might not have any fund to fall back to when there are emergencies but I like your courage. But you must always consider your immediate family because investing all is more riskier when you have dependents. Hence it important that you have savings to take care of uncertainties. It would also be advisable to invest in other sectors. Diversification is important in investment because it helps in risk sharing.
       
The general advice of don't invest what you cannot afford to lose holds true here. You should never go in to debt in order to buy bitcoin, and skimming money off your bill payments and risking going overdue is doing exactly that.
This is the golden rule of investing. Obey it and you would be safe.

An uncommon analysis by JayJuanGee about investing can be viewed using this link. https://bitcointalksearch.org/topic/m.60073555
legendary
Activity: 2268
Merit: 18748
We don’t know when we are going to stay at these lower prices but it’s not like we are going to the moon next month.
Don't worry. There will be plenty more large altcoins collapsing in the future which will bring the price down and let you buy some cheap bitcoin.

You always hear about how many BTC there is left in circulation and all of these big companies and whales are buying now a days so it creates a sort of panic and sets a “get as much as you can before their all gone” mindset.
As above, there will never be a shortage of newbies and other weak hands willing to sell their bitcoin to you at a discount.

The general advice of don't invest what you cannot afford to lose holds true here. You should never go in to debt in order to buy bitcoin, and skimming money off your bill payments and risking going overdue is doing exactly that.

There is a great flowchart on how to manage your fiat income from the Personal Finance subreddit (https://www.reddit.com/r/personalfinance/) you can view here: https://i.imgur.com/lSoUQr2.png
Obviously, such a sub will never mention bitcoin and so it doesn't appear on the chart, but in my opinion you should get to step 4 or 5 before you start buying bitcoin. That means paying all your bills in full, maxing out any retirement fund matching you can get from your employer, paying down high interest debt, and having an emergency fund of at least 3 months expenses. Once you've done that, then whatever money you have left over each month you can start allocating to where you prefer it to go: Retirement accounts, fiat investments, bitcoin, etc. If at any point you find something from step 4 or 5 (bitcoin) starts encroaching on something from step 1 (paying your bills), then you have done something wrong and need to re-evaluate your priorities.
legendary
Activity: 1512
Merit: 4795
Leading Crypto Sports Betting & Casino Platform
How have some of you stopped doing this over leveraging. Crypto rich but cash poor. Tips and advice appreciated.
With what you explained above, I have not seen you using any leverage not to talk of overleverage or what so called. Leveraging means you are borrowing and it is a term used most in crypto while trading in a way traders can borrow x amount of money with certain amount of collateral.

But your case is not the same but totally different, just that you earn and buy bitcoin with almost all or all your money while not having enough in cash and the need for cash may arise, but you think bitcoin price may not favour at the time and not able to sell.

I will advice you to just not convert all your money to bitcoin, have some for emergency in fiat if you feel good that way and you will be able to have fiat during emergency purposes. The fiat converted to bitcoin every week should be for long term and not short term, in a way you will not even think of converting to fiat for like 2, 3 or more years.
legendary
Activity: 2436
Merit: 1362
I think a lot of people have that way of thinking. Michael Saylor said before that he used
to go to bed at night worrying that he didnt have enough Bitcoin!

DCA is just that, it can happen over a long period of time with whatever finds you allocate,
There are many people who would love to put $50 per week into Bitcoin.

The priority is keeping a roof over you and your family's head and making sure bills are paid
and food on the table. Bitcoin after that is the next important thing.
full member
Activity: 1834
Merit: 166
Investing in bitcoin is really good practice but when we start overdoing it and start going beyond our levels that could affect our financial daily life that's a problem which you should avoid.As you said you have no funds in saving which is wrong because you should always have some fiat with you in case of emergency as bitcoin is not acceptable everywhere.You can stack bitcoin but slowly with constant money flow and have your budget allocation through DCA but disturbing the normal lifestyle for it is risky so try to limit yourself.
hero member
Activity: 3150
Merit: 937
Your problem doesn't seem like a problem at all.
If you need cash, just sell a part of your BTC for fiat money and spend the fiat for buying necessary stuff or paying the bills.
I don't expect a massive bull run to come anytime soon, so the BTC price stay around the 30K mark, or it might go down to 25K. There's no problem buying Bitcoins to replenish your Bitcoin reserve, after you have sold some.
I guess that you have a weird syndrome, where you like to gather and hoard bigger amounts of a resource, rather than wasting resources.
It's like a squirrel wanting to gather as much nuts as possible. That's why I call it the "squirrel syndrome" (there might be a more scientific term for that particular condition). Grin
member
Activity: 1218
Merit: 49
Binance #Smart World Global Token

As in anything in life, too much even of things we perceive to be good can have some dire effects we may not desire at some point. In your case, learn to control yourself and do things within the parameters that you must establish. And of course, think of the long-term and not just of what can happen in the next few months because here in cryptocurrency there will always be ups and downs. I am sure a year from now, you can start to see the many bright and colorful "fruits" of the labor that you put in. Good luck.
hero member
Activity: 2366
Merit: 838
Use your money to stack sats with time. Don't borrow money to stack sats.

Because when you have a loan, you will have a loan repayment day, then you will have pressure to make loan repayment. In bear market, you will don't know what to do. If you hold your sats, price falls and more pressure for your loan repayment. Worse you will have pressure from liquidation when your collateral falls to the liquidation price.
member
Activity: 66
Merit: 25
Absolutely great advice. The solution seems like common sense, but I guess I needed to hear it. I’ll continue my $50 week automatic buy and leave the smash buy button alone. You both are absolutely right. We don’t know when we are going to stay at these lower prices but it’s not like we are going to the moon next month. Not 100% but pretty sure we’re not. You always hear about how many BTC there is left in circulation and all of these big companies and whales are buying now a days so it creates a sort of panic and sets a “get as much as you can before their all gone” mindset. Not remembering that people are constantly buying and selling. Thanks for the reinforcing advice. I’ll keep reminding myself. Over and over and over. Lol
mk4
legendary
Activity: 2870
Merit: 3873
Paldo.io 🤖
It's like gambling addiction(though obviously far less bad), all you need to do is to stop doing it because you know it's not the responsible way of doing it. It's not like we're going to just shoot up to all-time highs next month dude, take your time. Obviously we don't know how long we're going to stay in 'lower' prices, but the last bear market, it took almost 3 years to recover.

Take. Your. Time. and manage your money responsibly. When emergencies come(hopefully not) and you're forced to sell your bitcoin, it will definitely hurt especially if you're selling at a loss. You definitely don't want that. In my first year of learning about bitcoin, I put literally everything to BTC as well; but the difference is that I was a fresh grad living in my parent's basement. I could literally lose everything and I'd be fine.
copper member
Activity: 2856
Merit: 3071
https://bit.ly/387FXHi lightning theory
You need to look at this from a differ rent perspective (and take some time to reflect while doing it).

If you put just $200 into bitcoin in 2015, you'd have $40k now. If you put $100k into bitcoin in 2015, you'd have had more than $50k last November.

It's now a case of how much money you can get into an asset, it's how much you can comfortably HOLD in it.

If you are able to, try to keep 3-6 months og an emergency fund away from anywhere you'll actually be able to touch it (such as a savings account) and then you should be a lot safer with any investments you make. Making investments that are too risky for your tolerance (or that are you can see yourself panic selling) might start to turn towards gambling and you may want to look up self help/therapy for that (attempting to fix a problem you don't have is better than ignoring one you do)
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