Before now I had a standing order with my bank where I kept some extra funds that I don't need for my upkeep. Although the bank promised interest from my daily savings I decided to stop terminate this agreement and transfer the funds to Bitcoin investment. I might not know technical analysis but my plan is just simple, which is to buy Bitcoin every month no matter how small from my extra funds. I am willing to keep buying regardless of the price until I retire from my work. This is because I believe that considering the economic uncertainties in my country, Bitcoin is one of the best forms of investment currently.
You have to reconsider this and don't put money in one investment it's not good but you have to diversify into other investments so that you can balance it during your long term investment, I'm not saying bitcoin investment is bad even it's good but this is no guarantee to be stable let alone get rich quick forever, only estimates on the long term prospects of bitcoin are good if you look at history since it first appeared on the crypto market, so I think you should allocate to some stable investments that will be a reserve fund in an emergency later.
It's better to save some of the funds in the bank for funds when there is a sudden need when you need it and can keep it as long as you don't need it, whereas if you are still working and earning more money then it can be put into bitcoin with the DCA strategy weekly or monthly would be a good way in my opinion compared to bitcoin all the money.
I was the same at first, but now I have reconsidered and bitcoin is an unstable asset, so I have to invest after other needs are met. If there is more money, I will still be put into bitcoin, but don't forget my other investment assets too invest money there for long term stability.
I don't really disagree with anything that you are saying ajiz138.. at least my attempt to understand what you are saying.
It is really difficult to figure out if someone might be overallocating into bitcoin and not keeping enough of a reserve fund or maybe if there might be some need to diversify into other assets/currencies - and also there is so much country specificness too.
Surely it can be problematic to ONLY have investments into one's local fiat, USD and bitcoin, but if someone is building their investments, these might be the ONLY options that they know. Of course, another one is buying versus renting or if someone might have access to buying some stock funds, but if we are ONLY looking at the three being local currency, USD (or something pegged to USD) and bitcoin, then surely each of us had to figure out how to apportion our ongoing investment into each or how much reserves that we might keep in each of the categories.
Recently, I have been considering that it might not even be a bad thing to retain some emergency funds in bitcoin.. instead of keeping all emergency funds in fiat - yet of course, how much to allocate to each still is going to depend on some specifics, even including size of the various funds, how much money a person needs on a regular basis, how much fluctuation is within the cashflow and the expenses, and what kinds of emergencies might come about....
I know that I like to talk about reaching $2million as being a kind of entry-level fuck you status because it allows for a potential for somewhat perpetual ability to live off of the interest/appreciation which we could estimate to be around $6,666 per month.
I know that many people do not consider that they can get to those kinds of levels, and so they might have financial value accumulation goals that are way smaller because they are expecting to live off the interest and to consume the principle too.. .. so maybe if someone has a goal to get to $200k or even $500k by the time they are 50 years old or 60 years old, then maybe they consider that they can just live off of that amount until they die or that amount will supplement whatever other revenue sources that they expect to have at that time.
We still can be faced with questions regarding how much value to keep in each investment asset/currency class that is available in order that we can attempt to ensure that the value of our investment is growing at least equal to or greater than the cost of living, so in the long run we are going to be better to be holding higher amounts of value in BTC as long as we are never forced to sell our BTC at a time that is anything other than our own choosing or even that we are not tempted to dig into our BTC holdings merely because it is way more money than we have in other places, and we start to believe that we are not really damaged when we make those kinds of early dips into our BTC holdings.
It's better to save some of the funds in the bank for funds when there is a sudden need when you need it and can keep it as long as you don't need it, whereas if you are still working and earning more money then it can be put into bitcoin with the DCA strategy weekly or monthly would be a good way in my opinion compared to bitcoin all the money.
Important use free money for investing in Bitcoin and not try our saving money in the bank and move it to invest in Bitcoin to earn daily day profit, I supported with your ideas about we need have saving money in the bank and not priority always investing in Bitcoin, I know potential profit earn when investing in Bitcoin, but when bad thing happen to us and and haven't money saving in the bank drastically we have borrowing with interest need to pay later.
Not allowed to earn weekly or monthly profitable in Bitcoin investment, but when bearish coming how to earn profit and can't controlling with source income when bitcoin price going drop.
I think that you are faming this matter strangely and even somewhat wrongly Oneandpure.
It seems to me that recently so many people had considered that they need to "earn yield" on their bitcoin and their various value holdings contributing to their placing their bitcoin and other value with third parties who ended up running off with the money, losing it or engaging in some other behaviors that cause somewhat innocent people to lose money because they believe that they need to earn yield on their bitcoin.
It seems to me that historically bitcoin has shown that merely holding bitcoin ends up contributing to decently high odds that the bitcoin will go up in value sufficiently in order that the bitcoin holdings themselves are the yield and one of the main goals would be to continue to accumulate bitcoin without losing it and then 10 years to 20 years down the road, there are decent odds that your bitcoin are worth way more than what you paid for them and also worth way more than any other place that you could have put your value - including that if you have kept control over your bitcoin then you also likely have options regarding how to spend your bitcoin or otherwise use your bitcoin in order to take advantage of the increased value of the bitcoin.. so you do not need to earn yield on your bitcoin because the value has increased way more than any yield that you could have gotten (especially if you account for the various risks of giving your bitcoin to third parties).
So part of the issue with bitcoin is having a long enough timeline in order that you are able to build and keep secure your bitcoin holdings over decently long periods of time 4-10 years or more... and then likely being in a pretty good position to start to spend them later down the road.
Of course, if any of us get too greedy then we likely put our bitcoin at risk.