Quote from: Littlemini on Today at 03:49:29 AM

Quote from: Patrol69 on January 19, 2024, 12:58:06 PM

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Of course having money reserves is important in investing but I am a new investor and I want to invest all the money I have in Bitcoin.

On the surface, that sounds dumb. It sounds as if you are gambling rather than investing. It might work out, but on the face of it, such a plan sounds dumb.

Quote from: Littlemini on Today at 03:49:29 AM

It's not that I won't have money in the future, I definitely will have money in the future and I can definitely keep some money in reserve for investments if I want to.

Ok. If you have a cashflow, and you have income versus expenses, then you would have some kind of idea how much your expenses are and how much your income is, right? If after you account for your expenses, then you invest 100% into bitcoin, then that sounds like it could be possible to do, but how does anyone know for sure what all of his expenses are going to be between the time that you get paid. You have to have some kind of a float. Otherwise if you are paid weekly every friday, then you would spend it all as soon as you are paid and you would not have any money between saturday and the next friday when you get paid again.

I think ultimately you already have some kind of a reserve or a float, and you are merely arguing about how much of a float or a reserve to keep.

Even if we go with an attempt at a more charitable and non-gambling interpretation of your cashflow situation, there could be some logic to build your BTC prior to building your reserve, even though you would still be gambling, but let's say that you have get paid $250 every week and you have $200 for your expenses, and so you decide to invest all of the remaining $50 into bitcoin (so that would be 20% of your income. so maybe to some extent you would be considering your BTC holdings as your emergency fund... and so maybe that is all fine and dandy, but after a year of investing $50 per week (20% of your income), you have invested $2,600 into bitcoin (which is like 10x of your weekly income), and if BTC is still your emergency fund, and you still have not built an emergency fun, you are just asking for trouble... and maybe you get lucky and maybe you don't but seems a bit short-sighted to handle your finances in that kind of a way.. since all of your efforts to invest could end up blowing up on you due to your own lack of prudent risk management.

Quote from: Littlemini on Today at 03:49:29 AM

I made an investment and made this sudden decision without much prior planning in holding that investment. Since now thinking about investment again, it will definitely be in my plan to have a reserve fund so that the investment is not irregular.

Good.. at least you are learning. Usually it is best to have at least between 3-6 months of an emergency fund.. but of course, the greater the size of your BTC investment, the more likely that you would want to have a larger emergency fund to off-set any temptation to dip into your BTC investment... these kinds of risk management and cash versus investment balances are soley in the discretion of each of the investors.

Quote from: naira on Today at 06:35:01 AM

Quote from: JayJuanGee on January 19, 2024, 05:29:03 PM

Quote from: Franctoshi on January 19, 2024, 04:27:10 PM

What trend? You are talking about some kind of bullshit short-term trend that may or may not exist? I doubt that there is very many questions to doubt the trend that we are already in even if we are currently experiencing a correction that is so far only slightly more than 20%.

The most major trend is that between late 2021 and late 2022 we went from $69k to $15,479, and then from late 2022 to now we have largely been going up (even though we might not have realized that we were going up until around mid-2023 or even not until late 2023 might we started to feel more comfortable that we are most likely in an uptrend that started from late 2022), and so it would be hard to believe that we are stopping from going up, even if we may well have various degrees of correction along the way, and even if we were to go back down to $25k.. seems like a BIG so what? The trend is up, and don't get me wrong, I have my doubts that $25k is likely, even though it is not impossible to happen... but if we are largely longer term BTC holders and even BTC accumulators, we should always be attempting to prepare ourselves (Financially and psychologically) for both directions at the same time, including potential extremes that could end up happening.

It always coincides with my current personal situation. Where this morning my wife kept raving Bitcoin went down right after she bought it. btw he's been doing DCA once a week, now it's been going on for about 4 or 5 months, I need to be his mentor in dealing with unexpected situations like you said with extreme potential. There are many things that can be done including cultivating a strong mentality, avoiding negative media a little, and making sure not to look at Bitcoin prices too often. He just tries to buy, withdraw it into his wallet then forgets about it until next week when he goes in to buy.

Talking about trends definitely refers to longterm trends, we are still quite at the point of improvement, but if we are referring to shortterm trends then we don't have any targets in the near future, other than waiting for the halving which is around 100 days from now.

https://coinmarketcap.com/events/bitcoin-halving/

Well 4-5 months of investing is not very long, and maybe you might need to just figure out what the right balance is so that you keep buying, especially during dips, and maybe after 3-4 years of investing you might be able to trace back the power of your having had continued to invest through the earlier years, and maybe in 3-4 years we might be going through another bear market, so maybe you might need to consider a cycle and a half of ongoing investing. and then see where you are at in 6 years or so.

Yeah it can be tough in the beginning, but probably you have to find a comfortable size, whether that is $100 per week, $10 per week or some other amount that is comfortable for you, your wife and your situation.

Regarding withdrawing every week, given the various recent fee spikes and the signal that we might have future fee problems, I personally don't consider that to be necessary or prudent to withdraw to a private wallet every week, unless your withdrawal amounts are at least $500 to $1k, and so personally I think that it is better to allow your UTXOs to at least reach a certain level prior to withdrawal.. and that is not merely about current fees, but it is also about future possible fee issues that could come about..

Quote from: Popkon6 on Today at 11:15:26 AM

Quote from: Mayor of ogba on Today at 09:16:55 AM

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If you buy a dip in the Bitcoin market you can basically buy once. But investing time should not be wasted hoping to buy this dip as we have started investing here with DCA method. From JJG discussion we learn about long term investment, so we will mainly invest regularly in DCA method. So if we invest for the long term as a simple solution then our next holding portfolio will turn out.

You could set up your buy the dip structure to have a lot of legs in the buying down, and surely it could take some time to build up those legs, especially if you were new to investing.

Let's say, for example, that you have been investing into bitcoin for a year and a half, and so your investment budget is $100 per week, and you had been buying half right away $50 and the other $50 you were saving for buying on dips. So if the BTC price stays flat or it does not correct more than 8%, then you are not buying any extra BTC, but if there is an 8% or more correction, then you begin to buy additional $50 at 8%, 10%, 12%, 14%, 16%, etc etc etc... and sometimes you end up using some of your reserve funds and sometimes your reserve funds just continues to build up, so maybe between mid-October and mid-January, you had only a few occasions in which your buy on the dip funds were triggered, so you mostly had been building up your buying on the dip funds during that time. so maybe recently, our dip got between 18% and 20%, so you might have had several buy on the dip orders execute, and maybe if the BTC price stays in high dip areas, your regular DCA might end up increasing to higher amounts than $50 per week because we are already in dip territory, and so you can structure those buying on the dips however you like in terms of how large are the buys, how many buys and what amount of price increments you want to have between your buy on the dip triggered price point.

Quote from: Litzki1990 on Today at 01:11:51 PM

By the time we are discussing long-term investments, many investors may be selling their investments. For example, if I plan now that I will hold my investment for the next six years, then in 2030 it will be time to sell my investment. Similarly, those who held their investment for six years in 2018 will sell their investment in 2024.

Guys can also come to an investment such as BTC and consider that they are going to invest for 6 years, and then they will consider selling at around that time.

They may or may not end up selling merely because they reached 6 years, because they could reassess the situation and figure out a better plan. But you are correct, there could be a specific reason why they might choose to get in and out of BTC, which may or may not be a good idea if they are still planning to live for a while and have needs for investments such as bitcoin that could serve as a hedge in regards to their other investments.

The person who invested into bitcoin for 6 years might even decide to consider beginning some kind of sustainable withdrawal rather than withdrawing immediately, as I describe in my sustainable withdrawal thread.