and this mistake is usually common to people that started the Bitcoin investment newly, one way to be able to accumulate more Bitcoin when there's a dip is to have a reverse fund, when using your DCA strategy try as much as possible to also have a reverse fund as to help you in a lot of things especially accumulating more when there's a dip.
I am not sure how much newbies need to concern themselves with reserve funds.. especially in their early years, yet sure of course, reserve funds are part of the package in which each of us should be building, and if a newbie is really new to investing into bitcoin or anything else, the first two categories to build would be the BTC fund and the emergency fund, and so getting each of them up to 3 months of expenses each should be the first goal, and I am not sure how long that is going to take, even though of course, the higher the discretionary income (percentage wise), then the faster those two funds can get up to 3 months each, and yeah maybe it would be better to have emergency funds greater than 3 months, yet that is where reserve funds and floats can make up for the relative newbie investor's decision to ONLY have 3 months in his emergency fund...
so yeah there should be priorities, and some ways of figuring out and framing priorities makes more sense when putting the matters into practice and going through some of the challenges of potentially having some fluctuations in income, expenses, BTC prices and perhaps other market dynamics that contribute towards understanding the extent to which the systems that the newbie investor has in place and if the systems that are in place are sufficiently reasonable, prudent and practical
You are right building those two should be the first thing to do as a newbie for and for the emergency fund you mentioned it should be built and made very strong because
60 percent or more of people taking out all there Bitcoin investment are because of emergency issues or problem,
Hm? I am not sure how you could reasonably assign any percentage to the reasons that someone might end up withdrawing from their bitcoin stash earlier than they had planned and perhaps what kind of poor cash management might have been in the mix in regards to what kinds of situations might end up taking place because it seems that frequently when folks suffer emergencies, the "emergencies" may well come from their not even being closed to prepared for various foreseeable situations that could arise, and each of us should have some sense for various foreseeable situations that could come about (and even have some extra in our funds, and preparations for situations whose specifics are less than foreseeable).. and yeah, the earlier we are in our bitcoin investment, then perhaps the less prepared that we might be for various emergency situations since we might not have had spent a sufficient amount of time thinking through possible bad scenarios that could play out and making sure that we have enough funds to that we do not need to tap into our bitcoin investment,
and surely some newbies make the mistake of treating their bitcoin investment as part (if not all) of their emergency fund, which surely is a pretty sloppy (and perhaps a kind of gambling) kind of a practice to have your bitcoin serving as part or all of your emergency funds, which is just asking for trouble since any of us are going to have various fluctuations in our cashflow and expenses that could devolve into being an emergency if we do not have various kinds of back-up funds that are extra and separate from our bitcoin investment.. and so in that sense, our bitcoin investment should be considered as something that is out of the realm of possibility to touch.. which is why a 4-10 year or more timeline is placed on it.. which in reality for someone in their 20s or even 30s, they may well have a 20 year or more investment timeline.. and yeah if they can end up investing in such a way that their investment timeline ends up playing out as less than 20 years, and they are able to start to withdraw from their bitcoin investment earlier than 20 years, then yeah, sure those kinds of things can happen with bitcoin, but there still should be needs for thinking that the investment timeline is longer rather than shorter, and when I describe 4-10 year investment timelines, those are even on the short end and might even assume that the person is front loading their investment and are not exactly a newbie to investing, since an actual newbie might really ONLY start to get a point of having a decently sized bitcoin holdings until around 10 years of investing into it.
Well the percentage I gave was not a verified one I just thought about it from the stories I hear why people withdraw all there Bitcoin and from the situations I have seen around me it has always been because of emergency issues or problems, well I may not be correct for the percentage gave just my thought.
However if we do a survey about this matter I believe majority of people that withdrawed all there Bitcoin or that dipped hands into there Bitcoin investment will be for emergency reasons.
And yeah you are right that the earlier we are in our bitcoin investment, then perhaps the less prepared that we might be, and that is why we need to plan before starting the accumulation journey, we need to set things in other, a lot of newbies joined the Bitcoin investment without thinking about all this things we are discussing now and that is why as a newbie you need to have the basic knowledge about Bitcoin investment before starting your investment, and along the line you will know more but at least have the basic knowledge because it is that basic knowledge that will help you make some important decisions that will lead you being successful in the investment.
Yeah you are very correct, for me if a keep my goal to be 4 to 10 years believe you me I won't achieve or accumulate enough especially since I'm building my Backup funds a long side me Bitcoin so I need more years to be able to accumulate enough, Bitcoin is a very nice investment and I'm so comfortable with the investment I'm not scared of anything I have peace of mind so staying in Bitcoin investment for a very long time is not an issue for me my plan is to achieve my desire.
Making one's Bitcoin investment as part of his emergency funds is a very big mistake and should not be done, but how will someone even think of that even as a newbie I don't have such mentality because I know I will end up running down my Bitcoin investment if I do such.
Bitcoin investment is a good one and should be treated with seriousness a lot of people wished they could take back the hands of time so they could take there Bitcoin accumulation seriously, of you plan yourself very well I believe you will succeed in the wonderful journey, for me I'm hodling bitcoin till we shock the world with how great Bitcoin will grow, a lot of people believe Bitcoin won't grow more than this but that's not it Bitcoin has not grown half of it's scarcity so it will keep growing.