Post
Topic
Board Speculation
Merits 2 from 2 users
Re: Buy the DIP, and HODL!
by
JayJuanGee
on 26/01/2024, 23:14:21 UTC
⭐ Merited by ajiz138 (1) ,Doell (1)
[edited out]
If you observe closely when I recommend 30% of your income going for Bitcoin accumulation is when you must have secured an emergency fund that can sustain you for at least three month, then you can boldly increase you DCA during dips like this, and should in case it doesn't favour you too well, after the investment you can use from you emergency fund to meet up your needs while you reduce your DCA amount and refill your emergency fund.

I would think that 3 months of an emergency fund would be about the bare minimum to have if you are going to start to act boldly.. and even with ONLY 3 months of an emergency fund, you gotta be careful about ever dipping into such emergency fund except for strict emergencies.

If you have 6 months of an emergency fund and you know that you are never going to let your emergency fund dip below 3 months unless you are int he midst of a true emergency, then you can be a lot more bold because you might even float one of the months so that you are mostly between 4-6 months in your emergency fund.

I guess my point, is to be careful if you are starting to get a lot of BTC investment and if you are starting to use more adventurous times of investing, including getting  a 30% advance of your pay for 3 months or any of those kinds of things, even though it might work out, you seem to be playing with fire if you only have 3 months emergency and you also get a 3 month advance for 30% of your income... it may well end up working out, but it does not seem like a good balance especially if you might be in a position that you don't want to end up getting forced into selling any of your BTC at some inconvenient time, for example when it might be dipping extensively.