Bitcoin is a valuable asset. I wanted to explain the importance of tangible assets and the synergy between valuable assets like Bitcoin. A new investor who neglects real assets and overemphasizes only accumulating bitcoins may end up failing long-term investments. emotional. For long-term investment management, the backup fund should be counted among tangible assets. Both permanent and temporary assets are important. Investment success depends on the combination of each asset and the amount of backup fund is should be sufficient to meet the needs of the family for 6 months or more.
If the reason to diversify into other assets is to reduce risk and help sustain our long-term plan in our Bitcoin investment then it is a good idea. Meanwhile, there is nothing wrong with focusing on accumulating Bitcoin for a while. While we go in search of other assets to maintain balance we ought to focus on accumulating enough Bitcoin that when held for a long term the profit will be reasonable. An investor who has not acquired enough Bitcoin should not think of diversifying in the initial stage.
For new investors they shouldn't be in a haste to go into diversification. Growing their portfolio at that early stage should be there ultimate criterion. At some point when they feel they are comfortable with what they have so far then they can start thinking of diversification. Those who are rich and can afford to accumulate faster can diversify when they feel like it because they have the resources to do so.
One thing about long term Bitcoin investment is that one should not see it as source of income, when you remove your mind from seeing it as a source of income then you can grow more bigger.
If you are into Long term Bitcoin investment you can do other business if you wish one must not wait to accumulate enough Bitcoin before going into a business or investment that will give you income.
Bitcoin is very volatile and one can't predict what will happen in the future and that is why I'm saying one should not look at Bitcoin as a source of income because you may plan to sell of your Bitcoin in the next 3 to 4 years and that time a dip happens it will live you frustrated so since the income you are using to invest into Bitcoin is your Discretionary Income one can still invest in a business that will be giving him or her income weekly or monthly that way it will even help your Bitcoin investment to grow since income is now coming from different angles.
That aside, Bitcoin still remains the best Cryptocurrency for investment, moreover when investing on it,
I've learnt that the investor should have an emergency fund already in place therefore a good and experienced Bitcoin investor should understand that already, maybe it's newbies that would just jump into Bitcoin to get rich quick through it without an emergency fund.
It is not compulsory for a new investor to already have his emergency funds before he venture into investing in bitcoin. The new investor can start investing in bitcoin and at and the same time build up his emergency funds.
The most important thing that a newbie needs to figure out is how much is his discretionary income and how much from his discretionary income that he will use to buy bitcoin that will make him continue buying weekly or monthly overtime. He can use the other part of his discretionary income to start building his emergency funds for 3-6 months.
If he has built his emergency funds, he can channel that funds that he was using to build his emergency funds to build his reserve funds. After that the new investor can DCA aggressively to cover up all the time that he was using to build those back up funds.
Well said Ruttoshi, no need to wait till after building your emergency funds because of can still be accumulating and building it little by little.
Some people borrow money in other to accumulate enough Bitcoin but is not necessary no need to rush in building up your Bitcoin investment there's still time to build or grow one's Bitcoin investment because Bitcoin has not reached half of it's growth so no need to rush little by little and before you know it you have accumulated enough Bitcoin for yourself.
one's Bitcoin accumulation weekly or monthly should be in confine to one's discretionary income, using money that is outside your discretion income may lead you to a fuck you stage where you will be forced to dip hands into your Bitcoin investment so to avoid that only use your Discretionary income to invest in Bitcoin.