Post
Topic
Board Speculation
Merits 1 from 1 user
Re: Buy the DIP, and HODL!
by
salad daging
on 18/01/2024, 19:36:53 UTC
⭐ Merited by JayJuanGee (1)
-skip

so in practical, if you've like $1k in your savings,  and you've the intention of having a bitcoin portfolio of $2k, you can start by investing $300 and having a backup of $700 for emergencies. You can continue using DCA to invest $50 monthly from your income, leaving the $700 as backup and growing your portfolio gradually to meet your target. You can still be saving little and adding to your backup. So you're both growing your investment and increasing your backup at the same time, thereby leaving a near zero chance of ever touching your bitcoin investments and this way, you're surely headed for a long term investment.

This method is a win win situation because your bitcoin investment is winning and your backup portfolio is winning too no matter how small and there's little or no chance that your investment will be uprooted to serve an emergency because your backup funds is both able and capable to satisfy your needs.
It wasn't like that for me to begin with:
Let's say I have a $1000 reserve fund, it will remain undisturbed until I need it again in another emergency.
When you start investing, you will start from scratch, no need to take $300 from the reserve fund.
Let's say I start again from $20/$50/$100 per week/month depending on income, well then this will be more for me practically this investment will continue to grow while I still continue to do DCA all the time so the emergency fund remains safe while the investment is still running until now.

When there is already a reserve fund, you will feel very safe when other things are needed, now it only remains for you to play how aggressive the level of DCA is every week it also depends on you managing it well if 30% of the monthly salary is invested in bitcoin I think it is more than enough while the rest you can use in your expenses even you can add 5% to the reserve fund, but for me it is enough if the emergency fund is enough to last for 6 months.