This is great advice and thanks for sharing from your personal experiences. It really shows a healthy perspective, and your ability to be pivot/be flexible. I think that’s key to any investment. When people talk about investing they even go a level deeper and ratio out the split of investments from that 10% of your income.
My deduction from income ranges between 5-25%. Sometimes have richer months and sometimes more expensive so the amount has variance. Recommend ya use excel or google sheets to work it all out for you. I also don’t do the allocation all at once and spread out the “investing” over a month. Sometimes things come up and I don’t like to be over extended, but certainly by month end they are done.
Then out of the amount I split my investments like this.
%56 BTC
%5 add to emergency fund
%17 dca stock
%12 cash savings
%10 into my business
If you see someone say they are high allocated into something this is probably what they mean.
Every year I re-asess this ratio normally near year end. I do feel like I have over allocated into btc this year but maybe that worked out, we shall see.
Keep calm, hodl and dca on
Since I last posted I have learned something about my self, some people might draw parallels or may have already learnt this about themselves. I was angry that the price went up, and it was the first time I was angry at BTC price even throughout the bear of going/dropping down. I realised too late I hadn't fully prepared for Uppity. I thought I had, I thought I would be happy with double digit value returns. I could handle other asset returns across other investments so why couldn't I project that confidence and experience to BTC. Well what caught me completely off guard was the suddenness. In most if not all other asset classes value add is gradual. You know you build wealth slowly, but like 5K$ increase in BTC price threw me into a loop. I was more angry I hadn't invested more at lower levels than the fact i had just got more returns from one asset in a day than any other asset I have ever owned. The magnitude of that was drowned out by my anger.
Well why I am writing this, what happened, what did I learn. Pretty simple I didn't fully understand, when people said be prepared for uppity, what that meant. I also put too much of my investment money looking at a bargain. I should have put it 100% into dca vs split of DCA and BTFD. I fooled myself into thinking my system was flawless because i didn't prepare for uppity properly. I went back through all my BFTD buys and then compared this to increasing DCA during the same time period. DCA would have out won with this 5k$ uppity.
Shifting my strategy I'm not going put as much emphasis on BFTD vs DCA for a while, there is more severe uppity to come but I have learnt my lesson.
Stay calm, learn shit, and dca on.
The size of your bitcoin and the time duration is what your profit depends on and that is why as time passes by, it is advisable to look for a means to increase your income so that you can also increase the amount that you are using to DCA so that you can reach your bitcoin target earlier, than if you are only accumulating with a particular amount regularly over a long period of time. Since nobody knows if your bitcoin investment will be the one to turn your life around in future. Take your bitcoin journey very precious and threat with caution so that you don't regret your decisions of relenting to buy with a particular amount when you can afford to invest and it wouldn't affect your income. Regular DCA is very effective and has very low risk for a long term hodler who has the passion to accumulate bitcoin, because he believes in bitcoin as an asset that is worth to increase in value with timeline.