Quote from: Barikui1 on Today at 08:50:50 AM

Quote from: JayJuanGee on Today at 03:13:59 AM

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Thank you sir, for breaking it down to the lowest understanding, because this is the exact situation I found myself in late last year that I started buying Bitcoin true the dca accumulating method, during that period due to how excited I was as a newbie not having much knowledge of Bitcoin and how it works, I was in the opinion that the more Bitcoin in my possession, the more money I will make, not even knowing that holding is another thing all together, so that spur me to invest more than I can afford from my monthly salary, which wasn't that easy for me, because toward the end of the month when I can no longer fend for my basic needs, I will just have to fall back to my holding, and withdraw a fraction of my holding just to survive till I have been paid my monthly salary, and of a truth, that actions I took limited me so much.

So with time, I started gaining knowledge from this forum about Bitcoin and how to go about it, so the moment I stop buying aggressively, and I started buying according to what I can afford, and the money for my monthly upkeep being kept aside, I observe that I no longer struggled to consolidate to my holding as before, so that's why I believe that if an investor can invest according to money he can do away without, holding wouldn't be that difficult, as long as his source of income never runs dry.

Yes.. so one level of mistake of overinvesting is not to project out your expenses well enough, so then your BTC ends up serving as an emergency fund, which is not what you want to have, whether the BTC price is up or down, you want to mostly be keep building your BTC stack, even if you are in profits, especially if you are still in earlier times of building your stash.

So yeah having various cashfloats can help you to never have to touch your BTC, except as a very last resort.. and so the way that you structure your cash reserves can vary, and personally, I think that there should be some cash reserves that you never have to touch almost no matter what, except a true emergency.. and if you are already anticipating irregular cashflows (income), then that is not an emergency, and if you already have bad health and you expect that you might have some extra medical expenses, those are not emergencies either..... so frequently cash reserves and cash floats will be used to address cashflow irregularities or expense irregularities that you may or may not anticipate, and so you might go 20-30 years or more without ever touching your actual emergency funds, and so if you never have to touch your emergency fund, you are also never going to have to touch your bitcoin, so yeah, it can take a long ass time to build all of these kinds of reserves that may also allow you to invest more aggressively into bitcoin once you have various kinds of cash reserves in place.. ..

So the BIG tests of whether you are doing these things well and/or correctly will come during various kinds of times in which many negative things might be happening and you are still able to hold onto your bitcoin and maybe even continue to buy BTC when everyone else around you seem to be panicking.. .but none of what I am saying should necessarily stop any normie from regularly, consistently and persistently buying BTC through something like DCA and other methods, yet there surely is a lot of importance in making sure that you are keeping some cash cushions and having some decent ideas about how your income and your expenses might change from time to time, and if you decide to spend money on something that is not of your normal behaviors, you might really have to account that your purchase could end up affecting other things that you do down the road and even screw up some of your abilities to continue to buy bitcoin if you have not structured your various purchases, including bitcoin, in ways that also account for your keeping various cash cushions in place that you would use those cash cushions prior to your emergency fund and prior to your even having to come close to touching your BTC.

Quote from: Miles2006 on Today at 03:13:19 PM

From my understanding, an investor faith in Bitcoin can determine buying Bitcoin agressively or rather with a little amount. From the illustration above, we have two set of investors, investor A and B whereby both investor choose to invest separately despite their financial status being equal. Personally, when it comes to investment choice one ought to think careful and their allocation monthly or weekly should be in position, for example I don't expect anyone to buy Bitcoin using 100% monthly or weekly all in the name of being aggressive besides from my study people who invest like this end up selling before reaching their target. Note, my approach towards Bitcoin investment will determine my believe and at the same time investor still have responsibilities, needs to settle, holding an emergency fund etc so by the time an investor will consider all this factor monthly or weekly will definitely determine their accumulation approach.

Surely if someone is investing 100% of his discretionary income into bitcoin that might be on the border of too aggressive because he might not be adequately accounting either his income or expenses, so there would be no room for mistakes, unless, he were to invest that amount at the end of the pay period rather than at the beginning, meaning that if he were to only make his investment of all his extra money right before his next check had arrived, so then he would be at least eliminating the possibility for mistakes, so then his next period starts again after his check for the next pay period arrived.

There could be some folks who say that they are doing 100% but they really are not because they are keeping various kinds of cash cushions, but then they could still be accurate in claiming that once they calculate their various kinds of cash cushions are in place, then they will invest 100% of their remaining cash into bitcoin, whether that is weekly or some other period of time of spreading out the buys.