When it comes to investing in Bitcoin, it is very important to maintain regular investment consistency. Investing small portions regularly over long term eventually turns into a big asset, besides increasing our investment portfolio in long-term holdings due to Bitcoin's high potential, it gives us a lot of profit.
But this requires long-term planning, and financial stability is essential because we have to maintain it regularly. A certain amount should be kept invested in DCA on a regular weekly or monthly basis. In this way, it will become a habit of ours to invest regularly, as a result, the investment pressure will be reduced and you will be able to continue investing for a long time, and continue holding.
The first and foremost way to be consistent in investing in Bitcoin is to have a specific investment plan and set reserve funds. Whenever investors have enough funds to invest, they will be able to continue their investments smoothly without any hindrance. If we are financially stable in terms of investment then we can buy Bitcoin whenever we want in any amount. If are talking about stress free investment then you need financial stability first because when we see bitcoin price going down in the market we get doubt and stress in our mind. So to get rid of this stress or uncertainty we need extra money so that when the market goes down we can use that money to buy bitcoins for stress free investment.
Yes of course, having a reserve fund is very important for investment consistency.
What are the uses of having reserve fund?
Firstly Having an emergency fund allows us to continue investing risk-free, Because we can handle any emergency situation with that cash stashed fund.
Secondly when the market goes down too much. At that moment we should buy as much as possible. so we can temporarily invest the emergency money in bitcoins so that we can buy more at low prices while buying bitcoins and then put the emergency money back again as soon as possible.
That means we can use that emergency fund both for investing when the price of Bitcoin is low and also for emergencies.
As a result we were able to buy a good amount of bitcoins when the price of bitcoins was low and Later, by re-depositing that emergency money, you can continue to DCA again on a regular basis. As a result, our profit margins will also be higher, and we can safely continue holding DCA for a longer period without risk.