Post
Topic
Board Speculation
Merits 1 from 1 user
Re: Buy the DIP, and HODL!
by
Troytech
on 26/01/2024, 23:50:28 UTC
⭐ Merited by JayJuanGee (1)

I don't think is nice encouraging someone to invest on Bitcoin using his 30% of salary to invest on Bitcoin because there is every possibility that the investor could ran into trouble if the reserve fund is not enough to sustain him till he receives his next salary, so perhaps in as much as is advisable to take advantage of the Bitcoin price right now but shouldn't get overwhelmed by investing aggressively because is better to invest with the money we can easily afford without being tampered than investing with all the money we have and within a short while you end up selling it do to the lact of money to take care of other needs, however is only those that have structured one of there portfolio for Lump suming  I could easily advise to take advantage of the market because they have already taken all the measures before now.

There is nothing really wrong with allocating 30% of your income or even buying aggressively as long as you do have a good back up incase things go wrong or you run out of cash, DCA  doesn't have any fixed percentage to allocate and the intervals at which you buy is not fixed either, one can decide to allocate 50% of his salary to  weekly DCA  depending on how large the portion of bitcoin he aims to buy and the time interval he has chosen to achieve his goal as long as this person is comfortable doing it( by comfortable I mean a situation where by his emergency funds are in Check, his reserves are well defined and his cashflow and expenses have also been resolved). And I believe the allocation a person decides to give to his DCA would differ for so many reasons.
1. How many bitcoin he plans on buying
2. The time at which he plans on achieving them
3. The size of his salary or income
4. If he has an already built reserve or emergency funds in savings before he started buying.

Given this senerios, a person X who earns about 10,000 dollars weekly and a person Y who earns about 7,000 dollars weekly both decide to get bitcoin and want to use it as a means to save up for retirement and X would retire in 5 years time while Y would retire in 3 years time. X has been a careless spender before and has really poor savings prior to the time he made this decision and Y despite earning lesser has a good cashflow management habit and has well built reserves in savings. X decides to allocate only 20% of his earnings to buying bitcoin because he aims at getting about 3 bitcoin or more and Y decides to allocate 60% of his earnings to bitcoin because he aims at getting about 7 bitcoin or more . 

Considering this factors are we going to say that Y is more aggressive than X, to me I would say no because they are both working as hard as they should to hit their target with the time they have and other factors like lifestyle could also affect this cause X despite earning higher could not allocate much to bitcoin cause he enjoys spending more and that 20% is what he calls comfortable and same with y. So they won't be anything like over allocation with respect to how much of your income you decide to invest as long as you are ready for accepting responsibility for your investment decision and you know you are okay doing so without been affected by it.