Quote from: JayJuanGee on Today at 08:43:43 PM

Quote from: arjunmujay on Today at 08:05:17 PM

Let's focus here first, I don't understand your explanation a little. Sorry for asking too many questions, because this is for my future self-improvement. and maybe others can also learn from my experience and be better at investing in bitcoin.

Quote from: JayJuanGee on Today at 02:52:05 PM

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Another thing when you invest into something like bitcoin, you need to put yourself into a position in which you will not be panicking.. so you can establish both a practice of buying BTC very regularly (something like once a week), and you can also make sure that you have an emergency fund and a reserve fund to serve unevenness in your cashflow, but also to give you abilities to buy more BTC when the price dips.. and if you have been practicing not so great cashflow management, it can take time to both learn about those kinds of skills, but to put them into practice.

We talk about a lot of the ideas in this thread, and I also talk about some of the ideas in my investment ideas threads, yet probably the main points is that you tailor some techniques to your own individual circumstances, and you put them into practice, you learn from your putting them into practice and then you tweak your plan from time to time in order to improve the ways that you are implementing your plan to your own financial and psychological circumstances.

I actually don't panic when buying bitcoin, especially with DCA because I think I don't know how the market is. but you also said there must be an emergency or reserve fund that can be used to buy bitcoin when the price drops.
This decrease, when it exceeds what percentage? because if FOMO can happen every time the market is red, it could mean that emergency funds will come out continuously to increase bitcoin holdings.

I don't know if I can help you because you have to figure out some of these details yourself because I don't know your details.

One of the main ideas of buying BTC regularly by using DCA, Lump sum investing and buying the dip, you should be using your disposable/discretionary income.

So if you have an income that is between $600 and $2k per month (and maybe most of the time it is $1,200), and your monthly expenses are $1k per month, then most of the time, you only have $200 left over for investing, which is your disposable/discretionary income and you can use that for buying BTC.

However, some months you have lower income and some months you have higher income, so you have to build up your reserves and your emergency fund and to manage a good cashflow float in order to be able to continue to buy bitcoin when your income might be low or at least not have to sell any bitcoin for 10 years or more.

Emergency funds would not be used to buy bitcoin, but they are available in case your income dries up or your expenses out pace your income. The more that you have investments, the more that you need emergency funds that are in cash and 3-6 months of your expenses.. so that you are not using your investments as your emergency funds.

Reserve funds can be built up for buying on dips, and you can already set orders for buying on dips - perhaps you could have orders for every $2k drop down to the $200 WMA.. and the 200-WMA is currently just below $32k. You have to figure out how to allocate between your lump sum, DCA and buying on dips based on your budget, which is part of the reason to not be fucking around with shitcoins because it can take quite a bit of capital just to have a solid bitcoin buying approach and to protect yourself from getting reckt.

So, yeah, if you do not have good financial structure, then you could be forced to sell BTC at at time that is not of your own choosing when you should have had been ongoingly buying.. and buying in such a way that you don't end up recking yourself... whether you have to start with $10 per week rather than $100 per week in order that you have your other financial matters in order... and the better that you have an emergency fund and reserves, then the more aggressive you could probably be in terms of how much of your income you are allocating to bitcoin whether in a DCA manner or lump sum investing or buying on dips.

DCA is the better of any of the accumulation methods because it allows you to pace your buys, but if you are able to have sum lump sum come available, then you could consider the lump sum in each of the three categories. Let's say that you just found out that you got a $2,400 bonus, and so all of that money could be dedicated towards buying BTC, but if you already have an income that you are buying regularly with DCA, then you may or may not DCA with the bonus money and maybe you just divide it into lump sum buying right away and the other half is buying on dips. You have to figure out the allocations and which ones make the most sense to you... including what you think about BTC as compared with other possible investment (not referring to shitcoins) is only one of the 9 factors to consider and to get in order.

If the BTC price is continuing to move up then usually front-loading your investment helps to prepare you for up, but usually you still might have to have some money in reserves if the BTC price moves against you, including going down.

And, yeah when it goes down it might keep going down, so you don't necessarily know how much money to keep in reserves in order to keep buying as the price is going down... no one can tell you.. you have to figure out for yourself where and how you want to set and/or execute your buy orders if you are going to try to employ buying on dip techniques.

Most likely if you don't know what the fuck you are doing, then you should just start out establishing a budget for yourself regarding how much bitcoin to buy every week (or better said how many dollars that you have available for buying bitcoin every week) and then just do that, which is DCA.. and maybe it does not matter how much the BTC costs at the time that you buy it since your goal should be to just keep buying for the next 4-10 years or more while you might figure out at some point along the way if you might employ some other strategies from time to time... and ultimately you are responsible for any BTC accumulation strategy that you employ or don't employ, so don't come crying to me if you believe that you followed what I suggested and you end up feeling like you lost money because of your choices in your BTC accumulation direction.

Quote from: promise444c5 on Today at 08:29:57 PM

Quote from: arjunmujay on Today at 08:05:17 PM

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Generally Emergency funds should be reserved for what will call "emergency" or let's urgent indisputable needs but if there's any chance to use out of the emergency fund to boost your investment when there's a dip , then that's a great idea.
You shouldn't wait for a specific percentage to buy dips , let's say you are already using the DCA strategy of buying , dips might come before your DCA strategy so if there's any emergency funds available you can invest out of it so you won't miss the dip , if you were able to meet up with your DCA in a dip and you feel like taking the opportunity then you can still use out of your emergency fund .
Sometimes Dip could only be for a short period just to correct price so waiting for a percentage dip might not be necessary but let's here the thought of JJG on this

Emergency funds are not for buying BTC.. it is to use in case your income dries up or your expenses increase to higher than your income.. so that you do not have to sell any of your BTC...

You can hold money in reserves for buying BTC on dips and also for buying when your income fluctuates. There are a lot of strategies to structure these kinds of matters, yet usually the better of strategies is to ongoingly buy BTC on a regular basis using DCA, and yeah you can supplement your strategy with the other techniques, but you might not want to overly think the matter, especially if you are in your early stages of BTC accumulation, you likely should just be regularly accumulating, but you still have to figure for yourself how much of a budget you can make for regular buying and if you want to hold some of your money in reserves for buying on dips.

This is damn impacting , breaking down in a way even some one new to this space would get it once . Now those that normally mistake emergency funds for reserve would get the difference now. Where most people missed it is that whenever there's decrease in price one would take as an opportunity of using lump-sum strategy to buy the dip using their emergency funds instead of having a reserve funds for such occasion. Which may lead to one not able to meetup with his expenses and endup developing the habit of tampering with their investment, I've already Started reserving some funds already, but I always make my emergency to be more than my reserve funds, without letting it affect my DCAing .